A crisis in food products in Egypt... record prices for poultry, a shortage of oil, and boycott campaigns

Cairo, Egypt - The food products market in Egypt witnessed a significant rise in poultry prices, with the price of a kilo exceeding 60 pounds ($2.02) per consumer, for the first time in history, as a result of the significant increase in feed prices, according to breeders, and the volume of oil supply in commercial chains and stores decreased significantly. In response to the rise in prices, campaigns were launched on social media calling for a boycott of poultry due to excessive prices. The Citizens Against High Prices Association announced its solidarity with the campaign and called for a boycott for a week to address the large increase in prices.

Dr. Abdel Aziz Al-Sayed, head of the Poultry Wealth Division at the General Federation of Chambers of Commerce, said that the price of poultry rose to range between 53-54 pounds ($1.79-1.8) per kilo on the farm, with it being sold to the consumer at a price of 60-62 pounds ($2.02-2.09) as a result of the large increase in feed prices, which rose to record 22 thousand pounds per ton due to the rise in the prices of the dollar and feed, adding that despite the increase in poultry prices However, breeders achieve losses ranging between 1-2 pounds per kilo of poultry due to the increase in production requirements. According to official data, the volume of investments in the poultry production sector amounts to 100 billion pounds ($3.4 billion), providing 1.4 billion birds and 13 billion eggs sufficient for local production.

Al-Sayyed, in special statements to Ufaq News in Arabic, linked the decline in poultry prices in the local market to the decline in feed prices, which are still sold at an unprecedented increase, noting that the increase in feed also affected the increase in the price of table eggs, bringing the price of white eggs to 82 pounds ($2.77) per carton, and red eggs to 83 pounds ($2.8) per carton on the farm, with them being sold to the consumer for up to 90 pounds ($3.04). dollars), while the product cost 100 pounds ($3.37) per carton, causing losses. According to an official statement, the government released 1.427 million tons of feed supplies, with a total amount of $713 million, during the period from October 16 to December 22, 2022.

Abdul Aziz Al-Sayed believes that it is necessary for the government to intervene to announce the quantities of feed released daily in the local market to stop the exaggeration in feed prices, which is the main input into poultry production. He continued that the continuation of feed at current prices will negatively affect the quantities of the product in light of the losses that producers achieve as a result of the increased cost. Egyptian Prime Minister Dr. Mostafa Madbouly previously met with companies that supply and manufacture feed to discuss the complaints of poultry farm owners about the significant increase in feed prices. He sent a message during the meeting that the state will not allow instability in the poultry sector, and will intervene with its mechanisms to stop the increases.

Abdul Aziz Al-Sayed explained that the weak purchasing power of citizens after the large increase in poultry prices negatively affected poultry sales, which led some shop owners to stop selling, stressing the need for government intervention to continue the release of fodder, and to follow up on the exaggeration in selling fodder locally to reduce poultry prices before the Ramadan season. Hisham Al-Dajwi, head of the Foodstuffs Division at the General Federation of Chambers of Commerce, said that the local market witnessed a significant shortage in the supply of oil during the past days, and its prices also rose, with a bottle of frying oil reaching 45 pounds ($1.52) per liter, compared to the price of 25 pounds ($0.84) at the outlets of the Ministry of Supply, citing the reasons for the shortage in supply as a result of major factories stopping production during the past days, citing the increase in the price of the dollar and the lack of release of imports.

Al-Dajwi added, in exclusive statements to Ofek News in Arabic, that some oil production companies began to resume production again, and the availability of oil bottles began to appear gradually, but the matter was not completely resolved. He continued that food merchants are affected by the increase in prices as a result of its impact on sales and the lack of availability of goods in the markets. Mahmoud Al-Asqalani, head of the “Citizens Against High Prices” association, said that the association supports poultry boycott campaigns on social media to stop the unjustified increase in poultry prices in the local market. However, he warned against continuing these campaigns for more than a week so as not to cause huge losses to producers as a result of the death of poultry, which will negatively affect the consumer.

Al-Asqalani believes, in exclusive statements to Ofek News in Arabic, that the increase in the price of poultry is due to the exaggerated rise in feed prices despite the government’s release of huge quantities of feed at the ports during the recent period, which requires tightening control over feed importers, as well as intermediary rings and poultry brokers, to control prices and confront monopolists. In an official statement, the “Citizens Against High Prices” association announced its intention to submit a report to the Competition Protection and Monopoly Practices Authority regarding the existence of the crime of prior agreement on feed prices.