Egypt faces overproduction and declining domestic poultry demand

Egypt is actively seeking to expand its poultry exports to address a significant domestic surplus. The country is currently grappling with an oversupply crisis, producing approximately 2.4 million tonnes of chicken meat and 16.6 billion eggs annually. This has resulted in an excess of up to 120,000 tonnes of chicken and billions of eggs.

Background on Surplus

The surplus is primarily due to increased local production combined with a drop in domestic demand. Economic challenges have reduced the purchasing power of the local population, causing per capita poultry consumption to fall from 13.7 kg to 9 kg. Consequently, market prices have dipped below production costs, with poultry trading at EGP/KG 65.00 (EUR 1.16), while production costs range between EGP/KG 67.00 and EGP/KG 68.00 (EUR 1.20 to EUR 1.22).

Need for Export Markets

In response to the crisis, the General Federation of Poultry Producers has urged the Egyptian government to facilitate exports to African and Arab nations. Mahmoud El-Anani, the Federation's director, highlighted the potential of African markets, which face poultry shortages in countries like Libya, Djibouti, Ivory Coast, Kenya, Ghana, Tanzania, and Mauritania. He estimates that successful market penetration could generate over USD 600 million (EUR 503.4) annually for Egypt.

Challenges and Opportunities

Despite exporting hatching eggs, day-old chicks, and processed poultry products, Egypt faces challenges in exporting whole poultry carcasses. Bird flu has historically hindered Egypt's poultry export capabilities, with the industry suffering since the outbreak in 2006. However, there is optimism that improved veterinary practices and strategic marketing could open new opportunities.

The Federation has called for Egyptian veterinary officials to engage with counterparts in potential export markets to showcase the country's poultry industry capabilities. This initiative is seen as crucial to overcoming historical constraints and establishing Egypt as a key player in the regional poultry trade.

Source