Egypt's poultry market is experiencing a period of uncertainty due to losses and pressures faced by breeders and investors. Samih Sid, head of the Giza Chamber of Commerce's poultry division, stated that the sector has faced significant challenges, leading some investors to cease production. However, this doesn't imply a complete exit from the poultry industry. The situation has raised questions about the sector's ability to meet domestic demand.
Sid explained that some investors have distanced themselves from poultry production following losses but have not entirely exited the industry. The decline in production among some breeders resulted from the challenges faced by the sector, particularly losses that made continued production more difficult for some. He emphasized that the exit of some investors doesn't signify the collapse of the poultry system but reflects the impact of economic and market conditions.
Some breeders had quantities of chicks but were forced to dispose of them due to losses. Sid noted that stable poultry prices, combined with high or persistent production costs, put pressure on breeders. This made it burdensome for some producers to continue breeding. When breeders find that production costs don't align with market selling prices, they may incur successive losses, affecting their decisions to engage in new production cycles.
Sid stated that Egypt has a 25% surplus in poultry production, reflecting the sector's capacity to cover domestic market needs and achieve self-sufficiency. This is significant amid ongoing discussions about local production volume and its ability to meet citizen needs. Stable poultry markets depend on domestic production that can provide required quantities.
Sid addressed complaints about varying live poultry prices across regions, noting that prices differ between areas and sales points. He highlighted issues related to unlicensed poultry sales outlets, which have not been licensed since 2009. This opens a discussion on the state of poultry sales outlets and market regulation.
The challenges faced by breeders, particularly losses, impact their decisions to continue or reduce production. Continued production is crucial for maintaining poultry availability in markets, making the balance between production costs and selling prices a key concern for breeders and consumers. The volume of poultry available affects price movements, along with breeding and production costs and market demand.
Sid's statements suggest that while some investors are exiting production, this doesn't imply a complete exit from the poultry sector. The industry has achieved a production surplus, and organizing sales outlets and monitoring market movements are directly related to consumer interests. Poultry prices remain a significant concern for citizens, especially given regional price variations.
Key points
- Egypt's poultry sector has a 25% surplus in production.
- Some investors have exited poultry production due to losses.
- Poultry prices vary across regions due to unregulated sales outlets.
