The impact of the war in Ukraine on the feed market in Egypt
The war – Ukrainian »has cast a shadow over the feed industry in Egypt, as a number of companies announced the cessation of production and sales operations last Thursday, affected by the recent increases in the prices of raw materials, the most prominent of which is Ukrainian corn.
Al-Mal learned from informed sources that a number of small companies working in the field of feed industry decided to stop production for an indefinite period until prices stabilize, which are witnessing almost daily increases between 150 and 250 pounds per ton.
Li Kaji, general manager of production in the field of feed industry, said in a local context against the backdrop of the ongoing war between the two countries.
Relationships led to a number of transactions and importers, and the emergence of events in increasing the prices of raw materials in an almost daily manner, in addition to the list of issues offered for the purchase of raw materials in cash, after the transactions were on credit, which prompted a number of small factories to start production until prices stabilized.
Importing corn and soybean raw materials to produce fodder locally confuses the plans of the makers, with the approaching month of Ramadan, in which companies working in the field of poultry seek to increase their demand for fodder, to produce their poultry production in conjunction with the increase in demand.
Li Kaji expected that the current price increases would cause small traders and factories to exit the feed market, especially with the direction of distributing quantities of raw materials, and would give the market an even higher possible profit rate.
Sixth production lines of Janbang company.
An official source at one of the fodder productions said, because it is difficult to produce it, because it is difficult to produce it in the local market, describing, at the present time, confusing and ambiguous, that Egypt’s production of fodder due to a political problem and the conflict between Russia and Ukraine increased by up to 30% by the end of this year.
During the agricultural season, Egypt is the first to import maize, 2020-2021, according to what was published on the BBC Arabic website.
Statista stated that Egypt ranked fifth in the list of countries that import the most corn in the world by the end of 2020, with a value of $1.88 billion.
