February 14, 2006

Egypt's poultry consumption falls by 40 percent

Egypt's poultry industry is in a severe crisis due to bird flu concerns, according to USDA's Feb 5 report on Egypt's poultry and products. A dramatic drop in consumption of poultry and eggs were caused by consumer fears about the bird flu virus in neighbouring countries.

Consumption of poultry meat, eggs, and grains has declined by 40 percent, 30 percent and 25 percent respectively as of Feb 5. Larger companies in the affected sectors are expected to withstand the current crisis because they have large capital reserves gained from considerable profits in the last two years. Small producers such as family producers are not expected to fare as well.

The government has responded to the crisis by imposing bans on imports of poultry and poultry by-products from all sources. In late January 2006, a three-month-old ban was extended for another 30 days, subject to another review at the end of this period.

However, USDA said industry players believe that the worst is over. This is because of the government has taken concrete steps to increase surveillance activities by dispatching teams to visit farms regularly.

For the full USDA report, click here.