Rising feed prices are pushing Egyptian poultry producers to close production

The Egyptian poultry sector is facing increasing pressure as producers grapple with soaring raw material costs and falling market prices, forcing some to close production. Industry officials warn that if the current situation persists, the country could face shortages of chicken meat and eggs for months.

The main source of tension has been the sharp rise in feed prices, partly driven by geopolitical instability following the outbreak of conflict with Iran earlier this year. Prices for key ingredients have risen sharply, with corn and soybeans experiencing particularly high prices. Bran and processed feed have also increased significantly, increasing overall production costs for farmers.

At the same time, poultry producers claim that feed suppliers are profiting from the situation. Many farmers believe that producers have stocked up on raw materials at lower prices and are now aggressively raising prices to boost profits. Concerns are also being raised about supply instability: some farms are reportedly receiving far less feed than they need, creating additional difficulties in their daily operations.

While costs are rising, revenues are moving in the opposite direction. Chicken and egg prices have fallen significantly in recent weeks due to weak demand and oversupply. This imbalance has led to many producers operating at a loss. For example, egg production costs now exceed market prices, and poultry farmers are receiving less per kilogram than industry participants consider acceptable under current conditions.

These factors are already leading to an exit from the sector, with some producers opting to suspend operations rather than continue to incur losses. If this trend accelerates, industry representatives warn that it could trigger a significant supply shortage. Reduced production capacity could ultimately drive prices up sharply, reversing the current downward trend and potentially creating volatility for consumers.

Ongoing uncertainty in global markets continues to complicate the outlook. Fluctuations related to geopolitical events are impacting feed availability and prices, making it difficult for producers to plan. Without stabilization of input costs or improvement in farmgate prices, the problems facing Egypt’s poultry industry are expected to worsen in the near future.

Tags: Egypt, compound feed