Egypt’s Egg & Poultry Price Crisis: Why Falling Costs Are Sparking Market Turmoil
- Egypt's egg and poultry price drop sparks market crisis as traders tighten grip, supply glut deepens
- Egypt’s poultry and egg markets are facing a sharp crisis as plummeting prices—despite record production—threaten farmers’ livelihoods, with a 45-tareh (about 25%) price gap between wholesale and retail...
- Egypt produces over 16 billion table eggs annually, yet prices have fallen by 7 Egyptian pounds per kilogram for poultry and risen slightly for eggs at the start...
Egypt’s egg and poultry price drop sparks market crisis as traders tighten grip, supply glut deepens
Egypt’s poultry and egg markets are facing a sharp crisis as plummeting prices—despite record production—threaten farmers’ livelihoods, with a 45-tareh (about 25%) price gap between wholesale and retail levels exposing systemic market control. Authorities and industry experts say the collapse stems from oversupply, cartel-like behavior by 45 dominant traders, and weak government intervention, leaving small producers struggling to break even.
Egypt produces over 16 billion table eggs annually, yet prices have fallen by 7 Egyptian pounds per kilogram for poultry and risen slightly for eggs at the start of this week’s trading, according to the Ministry of Agriculture’s Poultry Department. The discrepancy between farm-gate prices and retail shelves—reaching 25 pounds per kilogram—highlights how a small group of traders manipulate supply chains, said Dr. Ahmed Abdel Fattah, head of the Agricultural Research Department at Egypt’s Ministry of Agriculture.
“This is not just a price fluctuation; it’s a structural crisis,” Abdel Fattah told Al Sharq Al Awsat. “The market is controlled by 45 traders who dictate terms to both farmers and retailers. When supply outstrips demand, they absorb the losses at the producer’s end while maintaining inflated retail prices.”
Why are prices crashing despite record production?
Egypt’s poultry sector has expanded rapidly, with annual egg production exceeding 16 billion units—enough to supply every Egyptian citizen with nearly 1.7 eggs daily, per official data. Yet the glut has triggered a price war, with live chicken prices dropping by 7 pounds/kg and egg prices edging up only marginally due to seasonal demand.
The paradox stems from two factors: oversupply and market concentration. A report by Masrawy revealed that while farmers receive as little as 15 pounds/kg for eggs, retailers sell them for up to 40 pounds/kg—a 167% markup. For poultry, the gap is equally stark: farmers earn 20 pounds/kg, while consumers pay 45 pounds/kg at butcher shops.
“This is a classic case of oligopoly,” said economist Hossam El-Din Mostafa, citing data from the Central Agency for Public Mobilization and Statistics (CAPMAS). “The top 45 traders—who control 60% of the wholesale market—can afford to absorb losses at the farm level because they know retailers and supermarkets have no alternative suppliers.”
How traders are exploiting the system
Investigations by Youm7 and Al Masry Al Youm show that the 45 traders—many linked to large agribusiness conglomerates—use three tactics to maintain profits:
- Price floor manipulation: Traders buy eggs and poultry at artificially low rates from farmers, then hoard stock until retail demand recovers.
- Retail price collusion: Supermarket chains and butcher shops adhere to unofficial price floors set by the traders’ syndicate, ensuring margins remain high.
- Export restrictions: While Egypt is Africa’s largest poultry exporter, traders have reportedly slowed shipments to artificial shortages, propping up domestic prices.
“This isn’t free-market competition; it’s a cartel,” said a source at the Poultry Department, who requested anonymity. “The government has tried to intervene with price caps, but enforcement is weak, and traders simply find loopholes.”
What happens next? Farmers face bankruptcy, consumers pay more
With farmers already operating on thin margins—egg production costs hover around 20 pounds/kg—continued price drops could force smallholders out of business. The Ministry of Agriculture has pledged to monitor market behavior and explore legal action against collusive traders, but experts warn delays could worsen the crisis.
“If this trend continues, we’ll see a wave of farm closures within six months,” predicted Mostafa. “The irony is that while consumers see ‘cheaper’ poultry, they’re actually paying more in the long run—higher prices will return once supply contracts.”
For now, the crisis has triggered a scramble for solutions:
- Subsidized feed programs: The government is negotiating with grain producers to lower poultry feed costs, which account for 60% of farming expenses.
- Direct sales channels: Some farmers are bypassing traders by selling directly to hotels and restaurants, though this risks quality control issues.
- Public procurement: Officials are considering emergency purchases of surplus stock to stabilize prices, though funding remains uncertain.
How this compares to past crises
Egypt’s poultry sector has faced similar disruptions before, but the current collapse is deeper due to three factors:
- Post-pandemic rebound: COVID-19 disruptions to global supply chains led to a 30% surge in local production since 2021, outpacing demand recovery.
- Currency devaluation: The Egyptian pound’s depreciation against the dollar (now at 30.9 EGP/USD) has increased import costs for feed ingredients like soy and corn, squeezing farmer profits.
- Weaker regulation: Previous crackdowns on trader cartels (e.g., 2018–2019) relied on ad-hoc price caps; today’s enforcement is fragmented across multiple agencies.
“In 2019, the government imposed a 20-pound/kg price cap on eggs, but traders simply shifted losses to poultry,” recalled Mostafa. “This time, the scale of oversupply means even price caps may not work without breaking the traders’ grip on distribution.”
Key figures at a glance
| Metric | Farm-Gate Price | Retail Price | Gap |
|---|---|---|---|
| Table eggs (kg) | 15 EGP | 40 EGP | 25 EGP (167%) |
| Live chicken (kg) | 20 EGP | 45 EGP | 25 EGP (125%) |
| Annual egg production | 16 billion units | — | — |
| Traders controlling market | — | 45 (60% share) | — |
What consumers should know
While retail prices for eggs and poultry have seen minor fluctuations, the real impact is being felt by farmers. Experts advise consumers to:
- Check labels: Some traders mislabel imported or lower-quality poultry as “local” to justify higher prices.
- Buy in bulk: Wholesale purchases from licensed farms (bypassing middlemen) can save up to 30%.
- Report abuses: The Ministry of Agriculture’s hotline (16000) accepts complaints about price gouging or quality violations.
For farmers, the outlook is grim unless intervention accelerates. “We’re at a breaking point,” said a poultry farmer in Giza, who asked not to be named. “If the government doesn’t act in the next 30 days, half of us will be out of business by year’s end.”