The Egyptian markets need additional 350,000 fowls a day
Due to the dwindling dollar crisis, tourism revenue drop and relying on imports to secure half of its nutrition needs, Egypt has seen lately a significant surge in food prices. This increase amounted to 30 per cent, especially of commodities, as poultry which use to be a more affordable protein source than livestock.
The Egyptian pound devaluation pushed poultry prices higher, particularly since 75 per cent of their feeding is imported, like soy beans and maize. Within a month and a half, feed prices increased by EGP 1000 (nearly $90), which caused a 25 per cent rise in poultry prices within a week, reaching 28 Egyptian pounds.
Nabil Darwish, Head of the General Union of Poultry Producers, said: “The poultry business is currently going through its worst states, due to the severe heat which resulted into the death of 30-50% of poultry in farms. Add to this, the undiscovered diseases. This has resulted into a decline in poultry supply and a rise in its prices. “Poultry industry is one of Egypt’s major and labour-intensive ones with its investments estimated at EGP 30bn and workers at 5.2 million,” Darwish added.
Yehia Al-Sayed, one of the investors working in the field, said that the industry lost millions of Egyptian pounds within a very short time, besides many breeders lost their capitals, because of the recent poultry industry crisis. Some of the investors were driven away after becoming heavily indebted, while others did quit the industry on the back of fears of risks in a time when all production inputs are soaring.
Head of the Poultry Wealth Branch at Cairo Chamber of Commerce, Abdel Aziz El Sayyed, ascribed the recent hike in poultry prices to the shortage in supply resulting from production decrease, death of many poultry due to the previously mentioned reasons.
Poultry production has unexpectedly dropped by 1.65 million fowls a day, before Ramadan during which the demand reaches 2 million birds a day, according to Poultry Wealth Branch at Cairo Chamber of Commerce. Moreover, El Sayyed projects a further increase in poultry prices during the few days preceding Ramadan, since the demand grows by 25 per cent compared to other days of the year.
