Egyptian poultry breeders are facing severe financial losses and potential market exits after farm-gate prices fell to their lowest levels in two years, raising concerns about the stability of domestic supply.
Farm-gate prices have dropped to 56 Egyptian pounds (about $1.07) per kilogram, pushing retail prices down to between 65 and 75 pounds ($1.24 to $1.43) — a sharp reversal from the peak of over 100 pounds ($1.90) recorded in May.
Tharwat El-Zeiny, vice president of the Poultry Producers Union, told Al Manassa that the decline has inflicted severe financial strain on producers. He warned that prolonged deflation could force smaller breeders out of the market entirely, adding that the sector has little room to pivot to exports, which currently account for just 1% to 1.5% of total production.
Feed costs, holidays, and shifting diets
A recent reduction of 300 pounds ($5.71) per ton in the price of yellow corn and soybeans has offered mild relief to feed manufacturers. Abdel Aziz El-Sayed, head of the Poultry Division at the Cairo Chamber of Commerce, said lower fodder costs have contributed to pulling down poultry prices, but noted that feed still accounts for 70% to 75% of total production costs, leaving producers with limited margin.
Seasonal demand shifts have compounded the pressure. Following Eid Al-Adha, during which many Egyptian families stocked up on beef and mutton, poultry consumption dropped sharply. Sameh El-Sayed, head of the Poultry Division at the Giza Chamber of Commerce, told Al Manassa that a concurrent fasting period observed by a significant portion of Egypt's Christian population has further weighed on local consumption.
Some retailers also point to the growing popularity of the “Al-Tayyibat” diet, a regime that advocates eliminating poultry and eggs entirely, as a factor dampening demand. Medical experts have repeatedly denounced the diet, which was popularized by Dr. Diyaa Al-Awadhi before his death in the United Arab Emirates last April, as scientifically groundless.
An unsustainable floor
While the price drop offers temporary relief to consumers still recovering from prolonged inflation, sector representatives argue the current baseline is unsustainable. Sameh El-Sayed said producers have historically absorbed modest price reductions to cover basic costs, but predicted that market mechanics would gradually adjust toward a more viable equilibrium for both producers and consumers over the coming weeks.
El-Zeiny was less sanguine. Without intervention, he said, the sector risks losing a significant share of its smaller producers — a structural loss that would take time and investment to reverse, and that could eventually feed back into supply shortages and renewed price spikes for consumers.
