July 14, 2006

Egypt opens for poultry imports

The government of Egypt has decided to suspend a six-month ban on imports of frozen chicken, and other poultry products, according to reports in its local newspapers.

The Egyptian minister of Industry and Trade, Rachid Mohamed Rachid, announced also the exemption of taxes on frozen beef, industrialised poultry and fish. However, products must be bought from countries free from bird flu, such as Brazil.

The government hoped the measure would "improve life for the Egyptians, especially the low-income citizens," through increased food supplies.

By suspending the ban, the government aims to staunch the sharp rise in poultry prices resulting from the recent prohibition on breeding the birds locally.

The period of suspension would extend to the holy month of Ramadan which falls in September this year, said the local newspaper Al-Ahram. Arab importers normally stock food products in the months before Ramadan, when the Muslims fast during the day, but eat at night.

Egypt only imports small quantities of poultry from Brazil. Duties as high as 44 percent charged by Egypt's government on poultry shipments resulted in only US$1.5 million shipped before the ban.

For the president of the Arab Chamber, Antonio Sarkis Jr, opening the Egyptian market represents a great opportunity for Brazilian exporters. Egypt is a new market and should give good leverage to Brazilian exports, he said.

Sarkis added that Egypt is already the main importer of beef from Brazil. By suspending the tariffs on beef imports, new trading possibilities are opened.