Egypt Poultry Faces Crisis Risks
Egypt is experiencing a crisis in the poultry market due to the continued sale of chickens below production costs, prompting breeders to reduce their output or withdraw from the market. This could lead to higher prices for poultry and eggs in the future. Currently, the cost of producing one kilogram of chicken is around 68 Egyptian pounds, while it is sold at prices ranging between 59 and 60 pounds, causing direct losses for producers. With demand declining and supply increasing, prices have temporarily fallen. However, the exit of producers from the market may reduce supply and cause prices to rise again, especially since feed costs mainly depend on importing 80% of corn and 95% of soybean meal, increasing pressures on the sector. To protect the market, the government has proposed providing affordable financing and establishing a poultry exchange to ensure fair pricing and to achieve a balance between production costs and sale prices. It is expected that the exit of producers will lead to higher prices in the coming months if supportive measures are not taken.
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