Egyptian poultry farmers are facing substantial financial losses for the second season in a row due to a government policy that allows an overwhelming influx of frozen chicken imports. According to Tharwat Al-Zaini, Vice President of the Egyptian Poultry Producers Union, these imports have caused an average loss of around 7 Egyptian pounds (US$0.14) per kilogram of chicken in live weight. This situation threatens the survival of Egypt’s poultry industry, he emphasized. Official data indicates that chicken meat production in Egypt is estimated at 1.59 million tonnes in 2023. The country had almost doubled its poultry output between 2010 and 2019, yet production has stagnated over the last five years.
In June 2023, the Egyptian government temporarily lifted duties on frozen chicken imports, primarily benefiting Brazilian poultry producers who supply the bulk of these imports. Local traders report that Brazil alone delivered approximately 200,000 tonnes of poultry to Egypt last year, significantly boosting overall import levels. Other poultry suppliers to Egypt include Thailand, Ukraine, and the United States. Currently, the production cost of broiler meat in Egypt is about 74 Egyptian pounds (US$1.5) per kilogram, while the price of imported frozen chicken is around 66 Egyptian pounds (US$1.36) per kilogram. Though prices fluctuate daily, Al-Zaini admitted that imported poultry is consistently cheaper than locally produced options.
Al-Zaini urged Egyptian authorities to address this issue, stressing that maintaining food security requires the survival of local poultry breeders. Despite the sector’s challenges, Egypt’s poultry industry has demonstrated resilience. It is a labour-intensive sector that contributes significantly to the state budget, and Al-Zaini believes these factors justify government support. He pointed out that currency fluctuations over the past two years have further strained local farmers, making them less competitive than importers. In response to this crisis, many farmers sell their products at below-market prices, fearing further declines.
Al-Zaini suggested that the government should allow local farmers to slaughter and freeze poultry during peak demand periods, storing it for release when market conditions improve. Current regulations largely prevent Egyptian poultry farmers from switching between chilled and frozen poultry production, restricting their flexibility. Furthermore, Al-Zaini expressed confidence that if the Egyptian government decided to halt imports, local producers could quickly scale up operations to fill the void without significant consumer impact. He added that price hikes are unlikely since the Egyptian poultry market remains largely state-controlled.
