Bird Die-Off and Pound Devaluation Reduce Corn Demand in Egypt

This is reported by AgroReview

The corn market in Egypt is showing a noticeable slowdown due to a significant reduction in demand from feed manufacturers. The main reason for this trend is the mass die-off of birds, which has led to a decreased need for poultry feed. Additionally, the sharp depreciation of the Egyptian pound (by 15–20% in recent days) has complicated the situation in the domestic grain market.

Bird Mortality and Seasonal Challenges for Poultry Farmers

According to market participants, the wave of chicken die-offs, linked to a sudden drop in temperature and potential disease outbreaks, has resulted in a significant decrease in demand for feed. Estimates from some importers indicate that the mortality rate of birds may have reached around 40%, with some small farms reporting figures as high as 60–70%. As a result, feed mills are forced to purchase corn only in limited quantities from the domestic market.

“According to estimates from some importers, bird mortality may have reached around 40%, with some small farms experiencing rates as high as 60–70%.”

Currency Devaluation and Oversupply Affect Prices

Traders add that the situation is exacerbated by seasonal factors and high poultry meat prices at the end of Ramadan. The devaluation of the Egyptian pound has led to a sharp increase in domestic corn prices—from 11,700 to 15,000 pounds per ton. Additional pressure on the market is caused by the expected arrival of large shipments of corn from South America, particularly from Brazil, which may temporarily create an oversupply in the Egyptian market.

Despite the challenging situation, some market participants believe that corn imports to Egypt may gradually recover. The devaluation of the national currency has changed the price structure of the market, and grain purchases for Egyptian importers remain profitable even at high global prices. It is worth noting that following the onset of the conflict in the Middle East, corn supplies from Ukraine have nearly disappeared, while Argentine corn is currently offered at $206 per ton on FOB terms.