Egypt to import livestock from Somalia and Djibouti to combat soaring meat prices

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Monday August 5, 2024

An Egyptian butcher prepares slaughtered sacrificial sheep ahead of Eid Al Adha in Cairo. EPA

Mogadishu (HOL) — Egypt will import large quantities of livestock from Somalia and Djibouti to combat soaring meat prices and address a general shortage in the market, the head of the African Livestock Importers Association announced Sunday. The plan seeks to stabilize domestic market prices and ensure a steady meat supply throughout the year.

"The prices of goats and sheep range between EGP 200 ($4.15) and EGP 230 ($4.77) per kilogram. Local consumption of mutton and goat meat has surged due to the rise in expatriates and tourists, particularly from Gulf countries," said Ahmed Hafez, head of the African Livestock Importers Association. The increasing demand has strained the local market, driving up prices and necessitating sustainable solutions like livestock imports.

Starting this month, an estimated 15,000 to 25,000 head of goats and sheep will be imported monthly through Egypt's Safaga area, where veterinary quarantines are set up for immediate slaughter. Hafez emphasized the support of Egypt's agriculture and supply ministries in facilitating these imports and ensuring a swift supply to the market. "These imports will help provide meat at reasonable prices and bridge the gap between local production and consumption," he added.

Egypt's annual meat consumption is about 2.5 million head, with a significant production shortfall of at least 30%. Hafez called for an increase in the number of veterinary quarantines to accommodate the large quantities of imported livestock.

The reliance on Somalia and Djibouti for livestock imports marks a notable shift in Egypt's import strategy, which previously focused heavily on Sudan. However, ongoing military clashes in Sudan have disrupted traditional livestock trade routes. This has led Egypt to seek alternative sources of livestock, particularly from Somalia and Chad, to maintain food supplies. Supply Minister Ali Moselhi noted earlier this year that Egypt had secured between 3,000 and 4,000 animals at the Sudan-Egypt border, but imports from Sudan have since declined due to the conflict.

Somalia's livestock sector, which accounts for over 70% of the country's exports, stands to benefit significantly from this new demand. Despite challenges like droughts and export bans, Somalia remains a leading livestock producer with substantial export potential, particularly to the Middle East. According to the Ministry of Planning, Investment, and Economic Development (MOPIED) in Somalia, livestock exports amounted to approximately $500 million in 2021, marking the highest annual figure to date.

Adding context to the economic situation in Somalia, the recent Somalia Price Bulletin by the Famine Early Warning Systems Network (FEWS NET) highlighted fluctuations in staple food prices, indicating a volatile market that can benefit from stable livestock trade.

In May 2023, Egypt agreed to import livestock from Djibouti amid concerns over Sudanese imports. This ongoing partnership is set to expand, with new agreements ensuring a steady livestock supply to meet Egypt's rising demand.

The value of trade between Egypt and Somalia increased to $56.3 million during the first 11 months of 2023, up from $44.5 million in the same period in 2022, marking a 26.5% increase. Egyptian exports to Somalia, including milling and starch products, chemical products, and pharmaceuticals, rose to $54 million, while Somalia's exports to Egypt, primarily livestock, remained steady at $2.2 million.

This move to diversify livestock import sources is part of Egypt's broader strategy to stabilize the meat market. In January, Egypt announced plans to import 154,500 cattle for various needs, including 34,500 calves for immediate slaughter from African countries and 120,000 calves for fattening from multiple origins.

Egypt's economic crisis, exacerbated by inflation and a sharp decline in the local currency, has made meat increasingly unaffordable for many Egyptians. The price of beef in Egyptian markets has soared, reaching up to EGP 450 ($9.34) per kilogram in some areas. The uptick has led to a decline in meat consumption, with many families turning to cheaper alternatives like poultry and fish.

By importing livestock from Somalia and Djibouti, Egypt hopes to curb meat prices and ensure sufficient supply to meet general consumption needs. The new import agreements are expected to stabilize mutton and red meat prices in the Egyptian market, ultimately benefiting consumers.

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