01:12 PM
Thursday, April 4, 2024
Report – Marina Milad:
Rawhiya Ali prepares to buy basic goods before Eid al-Fitr. The sixty-year-old woman sits next to a poultry seller in a market in Giza Governorate, and they talk about the varying prices. She found them lower this week, but not “as much as I heard on the news after learning about the price reduction initiative,” she says.
Two days after the launch of the initiative to reduce the prices of poultry and eggs, the markets witnessed conflicting prices, as the price of a kilogram of (local) chicken ranged between 110 and 135 pounds, while the average kilogram of white chicken reached 100 pounds, according to what “Masrawy” monitored in three regions. Different.
While this initiative aims to provide the consumer with a kilo of poultry at a maximum price of 95 pounds, and a carton of eggs at a maximum price of 140 pounds.
“A few days ago, I was buying them for 170 and 180 pounds, and I had to reduce the quantity. Now it has become relatively reasonable, especially before Eid,” Rawhiya said after purchasing the poultry she needed for her family of five.
The General Union of Poultry Producers in Egypt had launched an initiative to reduce the prices of poultry and eggs by 10 to 15%, bringing the price of a kilo of live poultry to 85 pounds, reaching the consumer at a maximum price of 95 pounds, and the price of a carton of table eggs reaching 135 pounds on farms to be sold to the consumer at a maximum price of 140. pounds, and the initiative will be implemented starting last Tuesday.
This comes a week after Mostafa Madbouly (Prime Minister) met with major manufacturers, producers, and suppliers of food commodities, during which he gave them 48 hours to reduce prices to range between 15% to 20%, and for the decline levels to increase gradually over the coming days, reaching 30% after Eid. Al-Fitr, according to an official statement.
Ahmed Al-Wakil (President of the Federation of Chambers of Commerce) confirmed the matter, saying: “I will personally monitor the decline in prices periodically.”
This happened during the month of Ramadan, which witnesses the highest rate of poultry consumption at approximately 35% of the average monthly consumption, according to Tharwat Al-Zeini (Vice President of the General Union of Poultry Producers), in television statements.
“Rawhiyya” follows this news closely, as chicken has become “the last commodity that she relies on and supports her table,” according to what she says, in light of the rise in the prices of meat and fish to the point that her budget can no longer bear it.
The Council of Ministers monitors price disparities
According to the data contained on the price portal of the Council of Ministers, the average price of live poultry in the markets during Thursday’s trading reached 117.18 pounds, an increase of 2.43 pounds. These prices differ from some price levels in the markets, according to Masrawy’s monitoring in areas with different social classes.
One of the poultry store owners says, “The prices are determined by the daily poultry prices, but we also work according to the region and the prices of the stores around us.”
Eggs challenge the initiative
As for “eggs”, the situation was completely different, as their prices increased from 160 pounds to 170 and 173 pounds, as the sellers mentioned. One of them talks about “its price increasing to increase demand due to the approaching Eid al-Fitr.” When we asked him about the initiative, which requires reducing his prices, he smiled and said: “We have not received any news.”
But the reason for the rise in table egg prices is attributed by Abdel Aziz Al-Sayyed (head of the poultry division at the Giza Chamber of Commerce) – during press statements – to the decrease in production volume by almost half, from 14 billion eggs annually to 7-7.5 billion eggs as a result of the decline in the number of mothers from 600 thousand to 290. A thousand mother hens.
It is also expected that the crisis of high egg prices will continue until the end of the year with the start of a new cycle of brood production.
At the same time last year, the poultry industry witnessed an unprecedented crisis in its history due to the inability to provide feed, as Egypt imports more than 80% of it from America, Brazil, and Ukraine. Importers at that time suffered from a shortage of production requirements and imported goods due to the effects of the Russian-Ukrainian war.
Egypt consumes 24 million tons of concentrated feed to feed poultry, livestock, and fish, imported at an average of $100 million weekly, according to the Minister of Agriculture. Huge quantities remained detained in ports for a long time because importers were unable to obtain dollars to pay for them.
But Abdel Aziz Al-Sayed (head of the poultry division at the Giza Chamber of Commerce) believes that the recent release of huge quantities of feed, in addition to the stability of the pound’s exchange rates against foreign currencies and the availability of foreign exchange needed to import, are all factors that led to a decline in poultry prices in Egypt.
Rouhia did not expect this decline. She said: “We are accustomed to nothing being less expensive again.” But at the same time, she recalculates and prioritizes purchasing goods all the time. For example, she stopped buying “pane”, the price of which is still high for her. Banana prices were relatively affected, as its price dropped from about 250 pounds to between 210 and 220 pounds in most regions.
“Rawhiya” does the same as 74% of all Egyptian families, who have reduced their consumption of food commodities, according to the Central Agency for Public Mobilization and Statistics, as a result of the increase in commodity prices over the past years more than once after the devaluation of the pound against foreign currencies.
The Central Bank of Egypt recently allowed the exchange rate of the pound to be determined again according to market mechanisms, justifying this by protecting the requirements of permanent development, eliminating the accumulation of demand for foreign exchange, and closing the gap between the official market exchange rate and the parallel market. The decision was followed by the government announcing that it had concluded an agreement with the International Monetary Fund to obtain a loan worth $8 billion instead of $3 billion.
Meanwhile, the costs of living in Egypt have increased by rates ranging between 15% and 35% since the beginning of 2024.
“Rawhiyah” tried to arrange for her table needs during the month of Ramadan according to her poor pension, and now she is thinking about the arrival of Eid al-Fitr in a few days.
She sarcastically wonders, “What will I do without this year?” Every Eid she has had during the last three years has been forced to do without some food goods or sweets due to their high prices.
“I can barely afford the basic necessities, including poultry and eggs,” Rawhiyah ends her speech.
Read also:
Between dispensing and installments… How do Egyptians spend the days of Ramadan?
The dollar threatens the chicken.. What happens to the poultry industry in Egypt?
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