Egypt's Meat Market Revamp: Importing Livestock from Somalia and Djibouti to Combat Soaring Prices

An Egyptian butcher prepares slaughtered sacrificial sheep ahead of Eid Al Adha in Cairo. EPA

 

Egypt, one of the world's largest consumers of meat, is taking drastic measures to combat soaring meat prices and address a general shortage in the market. The country has announced plans to import large quantities of livestock from Somalia and Djibouti, a significant shift from its traditional reliance on Sudan. This move aims to stabilize domestic market prices, ensure a steady meat supply, and bridge the gap between local production and consumption.

The African Livestock Importers Association, led by Ahmed Hafez, has revealed that Egypt will import an estimated 15,000 to 25,000 head of goats and sheep monthly, starting this month, through the Safaga area. The imported livestock will be subject to veterinary quarantines for immediate slaughter, ensuring a swift supply to the market. The support of Egypt's agriculture and supply ministries is crucial in facilitating these imports and ensuring a seamless transition.

The decision to import livestock from Somalia and Djibouti comes as a response to the increasing demand for meat, particularly from expatriates and tourists, particularly from Gulf countries. The prices of goats and sheep have surged, ranging between EGP 200 ($4.15) and EGP 230 ($4.77) per kilogram, making it essential to find sustainable solutions to stabilize the market.

Egypt's annual meat consumption is approximately 2.5 million head, with a significant production shortfall of at least 30%. The country's reliance on Sudan for livestock imports has been disrupted due to ongoing military clashes, leading Egypt to seek alternative sources. Somalia and Djibouti have emerged as viable options, with Somalia's livestock sector accounting for over 70% of the country's exports.

The partnership between Egypt and Somalia is expected to benefit both countries. Somalia's livestock exports, which amounted to approximately $500 million in 2021, are set to increase with the new demand. The trade between Egypt and Somalia has already seen a significant increase, with the value of trade rising by 26.5% to $56.3 million during the first 11 months of 2023.

In addition to the imports from Somalia, Egypt has also agreed to import livestock from Djibouti, marking a significant expansion of its partnership with the country. The value of trade between Egypt and Djibouti is expected to increase, with Egypt's exports to Djibouti, including milling and starch products, chemical products, and pharmaceuticals, rising to $54 million.

The move to diversify livestock import sources is part of Egypt's broader strategy to stabilize the meat market. The country has also announced plans to import 154,500 cattle for various needs, including 34,500 calves for immediate slaughter from African countries and 120,000 calves for fattening from multiple origins.

Egypt's economic crisis, exacerbated by inflation and a sharp decline in the local currency, has made meat increasingly unaffordable for many Egyptians. The price of beef in Egyptian markets has soared, reaching up to EGP 450 ($9.34) per kilogram in some areas. The uptick has led to a decline in meat consumption, with many families turning to cheaper alternatives like poultry and fish.

By importing livestock from Somalia and Djibouti, Egypt hopes to curb meat prices and ensure sufficient supply to meet general consumption needs. The new import agreements are expected to stabilize mutton and red meat prices in the Egyptian market, ultimately benefiting consumers.