The dollar threatens the chicken.. What happens to the poultry industry in Egypt?

– Marina Milad:

– Infographic / Michael Adel

The bags coming to greet Youssef from the chicken shop are no longer what they used to be. its table around which five people gather; It now relies on one chicken instead of two and sometimes without. It also dispensed with the “chicken pane” and “liver” items.

The reason Tahia knows is that it is as surprised by the price increase of these products as so many other things. But the main reason behind the high price is the lack of feed needed for poultry since last October.

A new page from the file of the repercussions of the war and the economic crisis. It is matched by continuous promises from officials of a solution, but the situation on the ground has not witnessed anything new. One MP recently emerged to warn of the collapse of the entire industry in 40 days at most. This expectation was also confirmed by those in charge of the industry, whose investments amount to about 100 billion pounds, employing 3 million people, and its products occupy the most important place on our tables.

Last October..a video clip spread on social media of a poultry breeder executing chicks by strangulation by placing them inside large plastic bags. This is due to his inability to feed her.

It was enough of a scene to announce something catastrophic was going on.

This clip passed in front of Tahia Youssef (a housewife) while she was flipping through her phone, but like the strange videos spread on communication platforms, it did not stop her. On the other hand, Haitham Al-Rifai (a poultry farmer in one of the companies) was fully aware of what was going on and began to feel its impact on them. He considered this behavior “a way to convey their voices and message.”

The uproar caused by this video and intended by its owners; In the same month, the government pushed for meetings with stakeholders and industry officials. One of them was attended by Tharwat Al-Zaini (Vice President of the Poultry Producers Union).

Everyone talked about Egypt’s needs for fodder, which amounts to 950,000 tons per month, divided between corn and soy, and that there are huge quantities withheld in the ports because poultry farmers are unable to find dollars to pay for them, says “Al-Zaini,” who came out of the meeting with categorical promises. solve it all.

Egypt imports more than 80% of fodder from America, Brazil and Ukraine. Importers are suffering during the last period from a shortage of production requirements and imported goods as a result of the effects of the Russian-Ukrainian war. In addition, the Central Bank issued a decision, last February, to stop dealing with collection documents in all import operations and to use letters of credit instead, with the exception of some commodities.

Canceled collection documents, which allowed importers to transfer the value of their goods to suppliers after submitting documents specifying specific amounts and the date of collection, which could be paid in installments. In the case of documentary credits, the bank is an intermediary between the importer and the supplier, guaranteeing the first to obtain commodities that conform to the specifications, and assisting the supplier in obtaining all his rights, as the importer pays the entire value of the commercial transaction to the bank before completing the process.

About two months after that meeting, according to Tharwat al-Zaini, the matter worsened despite the release of part of the withheld fodder, according to the Minister of Agriculture. However, Al-Zaini says that it is “a completely insufficient amount for the needs of the market.”

by the time; The crisis allowed the accumulation of about 3 million tons in the ports, and created a black market that sells importers a ton at times its price, according to the hadith of “Al-Zaini”; As a ton of soy reached 30 thousand pounds instead of 16 thousand, and a ton of corn reached 13.5 thousand pounds instead of 9 thousand.

Now, Tahia Youssef remembered the video of the execution of chicks, which she had seen before, and it was not like that. She felt the impact during the past month and a half, and that the chicken she relied on after being let down by meat prices did not remain stable on her table. This forced her to reduce her weekly purchase list from two chickens weighing 4 kilos to one, and she removed “chicken pane”, “shish” and “liver” from it.

Tahia has three children, and she does not have a fixed salary, as her husband works as a taxi driver. So she says, “Chicken is the only thing I could buy besides vegetables…but 3 weeks ago I didn’t.”

As for the Haitham Al-Rifai company, which owns poultry farms and a feed factory, its atmosphere and work were completely disturbed. They intensified their contacts with the companies supplying the feed, so that they would receive a reply, “The goods are in the port!” And at best, others can provide it, but with an exaggerated increase.

Haitham, who has been working in the field for more than 20 years, says: “We believed that our crisis in 2006 was the worst, but we did not see a disaster as much as this time.”

2006 was a black year in the life of this industry, as the poultry market was paralyzed due to the spread of influenza. The World Health Organization for Animal Health also stopped importing poultry and poultry products from Egypt. Exports that used to go to more than 11 African and Asian countries, estimated at about 6.8 million US dollars per year.

However, the situation quickly stabilized in the local market, at least, according to Haitham, and then a breakthrough occurred in 2020, when the government announced that it could export poultry again after a 14-year hiatus, as 14 Egyptian facilities were able to obtain accreditation from the World Organization for Animal Health proving Free from avian influenza.

As soon as the industry caught its breath and came back strong, it collided with a monster called “Corona virus”, and its exceptional measures affected it, and the market witnessed a decline in demand as a result of the closure of restaurants and hotels, which constitute about 25% of the total production of poultry farms – according to Muhammad Al Shafei (Vice President of the Producers Union). poultry at the time).

And when things are back stable. Successive jumps in prices exhausted the market once again, so Tahia Youssef changed her lifestyle and her purchases completely. Therefore, her family is one of 74% of the total Egyptian families that have reduced their consumption of food commodities, according to the Central Agency for Public Mobilization and Statistics.

That change was evident to Izzat Sadiq (owner of a poultry store). His customers became confused when making a purchase decision, either to reduce the quantity or to abandon the chicken, especially when the price of white chicken increased by 6 pounds in consecutive days recently. “This happens for the first time in the history of poultry,” says Ezzat, who inherited the profession from his father and grandfather. He and his brothers own shops in Cairo, Alexandria, and the governorates of Upper Egypt, for which they buy 3 to 4 tons of birds per week.

A man like Ezzat can say that sales have fallen by about 25%.

Despite this, the prices that have increased in the market do not keep pace with the increase in the price of feed, which has amounted to about 110% since last January, according to Tharwat Al-Zaini (Vice President of the Poultry Producers Union), who explains, “If the price of a carton of eggs was 72 pounds, its cost would be more than 80 pounds.” .

The difference between the cost and the selling price determined by the poultry stock exchange caused the company that Haitham works to lose nearly 2 million pounds in one month.

And the loss did not come alone, as their factory, after it used to bring about 300 tons of fodder, is no longer producing less than 40 tons. The company was also forced to stop the fattening sector and lay off about 60 workers (managers, engineers and workers), and closed a farm containing 40,000 chickens (mothers) and sold them.

Many, like Haitham Company, get rid of their chickens before the production cycle is complete, which will cause a huge food gap, according to what “Al-Zaini” believes, and he says: “If the situation continues as it is, we will quickly move towards losing the industry in which we have achieved self-sufficiency.” We will lose cheaper animal protein.”

Mostafa Madbouly (Prime Minister) appeared in a meeting a few days ago to say that “the state will not allow this.” And he talked about “coordination and follow-up” of what is happening in this sector by meeting with companies supplying feed to review complaints received from farm owners.

Tharwat Al-Zeini sat in front of the TV watching this meeting, wondering: “Why has the state remained silent for so long?”

since thousands of years; Poultry appeared in Egypt. It is said that it was one of the most important sources of food for the ancient Egyptians. With the passage of time, it has become the most important popular food. For the first time in its history, warnings appear that the end of this year could witness its end.

If the worst scenario occurs, Haitham Al-Rifai (poultry breeder) has no choice but to travel to countries such as Iraq or Jordan, who says, “There are opportunities for them already and in the same field.” As for Yusuf’s greeting; She did not know an alternative that could replace chicken on her table, so she says: “If we search for a protein that provides healthy and cheap nutrition… we will only find chicken!” Then she laughs sarcastically and completes: “This situation will force us to start fasting; neither meat nor chicken.”