Feed Costs and Falling Prices Push Egypt’s Poultry Sector Toward Shortage Risk

Poultry producers in Egypt are scaling back operations as rising feed costs and lower market prices reduce profits, raising concerns about possible supply shortages.

Industry officials say the increase in feed prices followed the outbreak of conflict involving Iran in late February. Market data shows corn prices have risen by about 26 percent to 16,000 Egyptian pounds per tonne, while soybeans have increased by 85 percent to 36,000 pounds. Bran prices are up 27 percent, and manufactured feed has climbed by around 45 percent.

Farmers allege that some feed producers are raising prices despite holding stocks purchased earlier at lower costs. Ahmed Nabil of the General Federation of Poultry Producers said suppliers are delivering less than half of required feed while adjusting to currency changes.

At the same time, prices for poultry and eggs have dropped by about 25 percent in the past month due to high supply and weak demand. This has left many farmers selling below production cost.

The cost of producing a tray of eggs is now about 116 pounds, while market prices have fallen to around 100 pounds, down from 125 pounds earlier this year.

Producers say the situation is forcing some operators to leave the sector.

Sameh El-Sayed of the Giza Chamber of Commerce said farmgate prices for chicken have dropped to about 72 pounds per kilogram, compared with 95 pounds during the last Ramadan period. He said a sustainable price would be closer to 85 pounds per kilogram.

Industry groups warn that continued exits by producers could lead to reduced supply of poultry and eggs within months, with the risk of sharp price increases.

They added that global tensions are contributing to instability in feed markets, increasing uncertainty for producers.