Egypt’s poultry industry suffers several crises

A series of crises are affecting poultry production in Egypt. The most recent is the detention of poultry feed in […]

A series of crises are affecting poultry production in Egypt. The most recent is the detention of poultry feed in ports due to the foreign currency problem and the complications of banks' letters of credit amid a government move to contain these situations that threaten the entire industry.

Crises have been cascading since the outbreak of the Russian-Ukrainian War, which affected most emerging market economies, especially Egypt, which made drastic decisions to counter the effects resulting from the crisis, including:

• Halting letters of credit for imported goods to counter the lack of dollar liquidity, which in turn caused the seizure of fodder in ports and halting its import, making it scarce in the market.

The Central Bank of Egypt (CBE) also stopped dealing with collection documents in import operations, instead using letters of credit with everything except for 15 essential commodities. This created a crisis for importers due to their inability to provide foreign currency.

>> The decision caused the accumulation of goods in Egyptian ports, and its effects began to be reflected in the local market, especially concerning the scarcity of some commodities and the tendency of merchants to raise their prices at record rates in all commercial sectors.