Market Trends of Egypt Compound Feed Industry
This section covers the major market trends shaping the Egypt Compound Feed Market according to our research experts:
Growing Regulated Poultry Industry in Egypt
Poultry is one of the main agricultural industries in Egypt. It contributes 10% of agricultural value-added, with the country producing over 1 million ton of poultry meat. According to studies, the per capita consumption of poultry is approximately 15 kg per year. The sector is highly heterogeneous, comprising large integrated, specialized producers and at least 11 million households keeping chickens and other poultry. Stakeholders have identified two main poultry production systems in Egypt, intensive/commercial and extensive/household.
As per the spotlight report on the livestock production system published by FAO and USAID, there are approximately 30,000 registered intensive poultry farms and the same number of unregistered farms. The majority, almost 80%, are located in Lower Egypt. The intensive poultry system is pivotal for the supply of affordably-priced animal protein to the Egyptian population. However, it is highly dependent on importing feed, mainly maize and soya bean, and other inputs and equipment, which makes consumer prices highly volatile.
Increased Beef Consumption
Egyptian beef consumption is driven by the availability of affordably priced beef. According to the USDA report, most Egyptian consumers are of the lower-income group. Egypt's meat-centric food culture remains unchanged, and any variation in the consumption rate is due to beef affordability. Beef consumption is fairly tied to cost rather than recommended daily protein intake.
The Egyptian military and the Ministry of Supply and Internal Trade (MOSIT) are expanding their beef distribution channels, thus increasing the availability of affordably priced beef. Egyptians consume red meat from locally produced fresh beef, imported ready-for-slaughter cattle, imports of frozen buffalo meat from India, and frozen beef mainly from Brazil. More affluent consumers view frozen imported beef as being an inferior product. Their opinion is premised on the fact that the bulk of frozen imported beef is low-quality cuts sold at government outlets at discounted prices. Thus, the rising scale of urbanization due to changing consumer preferences in beef meat products and growing awareness of nutrient management are projected to boost the demand in the compound feed market in the coming years.
