December 15, 2022

 

Egypt's poultry sector affected by price hikes and supply shortage

The poultry sector in Egypt is affected by increased input prices and a supply shortage, caused by the detention of poultry feed at ports, Daily News Egypt reported.

 

Since the outbreak of the Russian-Ukrainian War, Egypt has made drastic decisions to counter the effects of the crisis, including halting letters of credit for imported goods to counter the lack of dollar liquidity. This has resulted in the seizure of livestock feed at ports and the halting of its import, making supply scarce in the market.

 

Egypt's Ministry of Agriculture and Land Reclamation said the country imports approximately 75% of its feed and raw materials for the poultry industry. Imports come from the US, Brazil, and Ukraine.

 

In response, the Egyptian government is increasing local production for all agricultural crops and protecting many local industries, particularly the poultry industry.

 

According to an official report obtained from Egypt's Agriculture Ministry's Information Centre, the value of investments in Egypt's poultry industry is approximately EGP 100 billion (~US$4 billion; EGP 10 = US$0.40). The industry also employs about 3 million people.

 

The total number of poultry establishments in Egypt is approximately 38,000, which includes farms, feed factories, slaughterhouses, and outlets selling veterinary medicines and vaccines.

 

Egypt's total commercial poultry production is estimated to be around 1.4 billion birds and 13 billion table eggs per year.

 

Abdulaziz Al-Sayed, Head of the Poultry Division at the Cairo Chambers of Commerce, said the state has already taken measures to release feed shipments, but there is a monopoly by importers, resulting in an increase in the price of a tonne of feed.

 

He demanded that these monopolists and exploiters be held accountable by the authorities, emphasising the importance of prompt action by the country's Agency for the Prevention of Monopolistic Practices.

 

Al-Sayed said approximately 900,000 tonnes of feed and raw materials were released last week, but the market now requires more than two million tonnes, implying a 50-60% deficit. This means that the industry requires approximately one million tonnes of corn and 500,000 tonnes of soybeans per month.

 

-      Daily News Egypt