Egypt: Some Cattle Growers to Drive Up Sunseed Meal Imports
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Egypt’s Soybean Meal production is forecast at 3.16 MMT in MY 2022/23, up by approximately 6.7 percent compared to Post’s MY 2021/22 estimate of 2.96 MMT, which remains unchanged from the USDA official estimate. The increase in Soybean Meal production is due to expanded local crush capacity, meeting feed industry demand, and the refining sector’s production of Oil for human consumption.
Soybean Meal consumption is projected at 3.5 MMT in MY 2022/23, up 1.4 percent from MY 2021/22 estimate of 3.45 MMT. We attribute the increase to a slightly increased demand for poultry and aquaculture feed. Additional feed lines are coming online, adding to existing aquaculture and poultry feed milling capacities. Post’s MY 2021/22 estimate of 3.45 MMT remains unchanged from the USDA official estimate.
Poultry industry of Egypt houses 25,000 licensed farms, with investment reaching EGP 90 billion ($4.15 billion). In CY 2021, the poultry industry produced 1.5 billion chickens (i.e., broilers) and 13 billion table eggs. The union for poultry producers outlined plans to increase investments in the sector to produce 2 billion chickens in 2030 to meet local market demand and double the production of table eggs.
Egypt’s total fish production in CY 2021 is estimated at 2.2 MMT, with aquaculture’s share at 1.7 MMT of the total output. Egypt plans to raise fish production to 3 MMT by 2025. Related to that production growth, there will be an increase in fish feed demand of around 650,000 MT.
Dairy production has increased to 7 million tons annually, compared to 6 million tons during the past two years, due to the replacement by high-productivity breeds as alternatives to the local breed types. The mixture breeds cow between the two breeds produces 14 liters per day instead of the 6 to 8 liters produced by the local species. Egypt’s feed mills produce poultry feed mix consisting of 70 percent yellow Corn, 19.4 percent Soybean Meal, 3.4 percent Wheat bran, and 1.9 percent broiler concentrates (fish or meat Meals) in addition to minerals and vitamins.
Aquaculture’s primary dietary energy sources include 20-25 percent yellow corn, 20-30 percent wheat bran, 10-25 percent rice bran, and 1-5 percent vegetable Oils. This feed mix formulation depends on the protein and energy contents of the feed, as well as the availability and price of the ingredients, including fish species and their sizes.
FAS Cairo forecasts Egypt’s Soybean Meal imports in MY 2022/23 at 250,000 MT, down by 50,000 MT from Post’s MY 2020/21 estimate of 300,000 metric tons. Imports of Sunflower seed Meal in MY 2022/23 are projected at 100,000 MT, up by 10,000 MT from the post’s estimate in MY 2021/22. The USDA attributes the increase in MY 2022/23 forecast to the preference of some cattle growers to include Sunflower seed Meal in their feed rations to reduce costs.
Vegetable Oil Industry in Egypt
According to industry stakeholders, the Oil industry in Egypt is still insignificant, with only 40 factories in the sector. In addition, the industry relies heavily on imports for raw materials, as only 4% is supplied locally. The General Authority for Supply Commodities (GASC) is the sole government entity responsible for purchases of crude and edible Oils. Crude vegetable Oil purchases occur through local private crushers or multinationals in tenders. These are refined in government-affiliated refineries or on a contract basis with other private-sector companies.
According to AgFlow data, Egypt imported 0.3 million tons of Soybeans in May-June 2023. The country purchased 135,172 tons of Soybeans from the United States, followed by Ukraine (113,734 tons), Romania (31,357 tons), and Brazil (30,626 tons).
Other sources: USDA
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