October 15, 2024

Egyptian poultry farmers struggle amid surge in frozen chicken imports

Egyptian poultry farmers are facing significant financial difficulties due to the government's decision to allow large-scale imports of frozen chicken, resulting in heavy losses for local producers and raising concerns about the long-term viability of the domestic poultry industry, aviNews reported.

For the second season in a row, Egyptian poultry farmers are grappling with the challenge of competing against cheaper imported frozen chicken. Tharwat Al-Zaini, vice president of the Egyptian Poultry Producers Union, revealed that local farmers are incurring losses of around EGP 7 (US$0.14) per kg of chicken in live weight. This financial strain poses a serious threat to the survival of Egypt's poultry sector.

In 2023, Egypt's chicken meat production was estimated at approximately 1.59 million tonnes. The country had nearly doubled its poultry output between 2010 and 2019, but production levels have stagnated over the past five years. The situation worsened in June 2023, when the Egyptian government temporarily removed duties on frozen chicken imports, which primarily benefited Brazilian poultry producers. Last year, Brazilian suppliers delivered an estimated 200,000 tonnes of poultry to Egypt, significantly increasing the nation's import levels.

The production cost of broiler meat in Egypt stands at about EGP 74 (US$1.50) per kg, while imported frozen chicken is priced at around EGP 66 (US$1.36) per kg. Despite fluctuations in daily prices, imported poultry consistently remains the cheaper option, making it challenging for local farmers to remain competitive. This price gap has led to financial losses for local producers and could potentially result in a decline in domestic poultry production.

Al-Zaini has urged the Egyptian government to address the issue, stressing that the survival of local poultry farmers is crucial to maintaining food security. He suggested that the government should allow local farmers to slaughter and freeze poultry during periods of high demand, storing it for later release when market conditions improve. However, current regulations prevent Egyptian farmers from transitioning between chilled and frozen poultry production, limiting their operational flexibility.

In response to the ongoing crisis, many farmers have been selling their products at below-market prices to avoid further financial loss. Al-Zaini expressed optimism that if the government halted imports, local producers could quickly scale up operations to meet demand without significantly affecting consumers. He also noted that price increases are unlikely, given that Egypt's poultry market remains largely controlled by the state.

-      aviNews