EGYPT – Cairo 3A for Poultry, a subsidiary of the agri-food group Cairo 3A in Egypt, is set to inject US$32.3 million into the poultry industry with two significant investment projects in 2024.
Ali El Gamil, CEO of Cairo 3A, revealed that the funds would be allocated to the construction of a poultry products processing plant and the establishment of new poultry fattening farms.
Approximately US$26 million of the investment will go towards the construction of a poultry products processing plant spanning 3 hectares in the Sharkia governorate.
The remaining amount will be utilized to set up new poultry fattening farms, aimed at increasing bird production for slaughter.
Ibrahim Wagdy, CEO of Cairo 3A for Poultry, saw the investments as crucial to consolidating the company’s position in the frozen and chilled chicken segment, where it currently holds around 25% of the market shares.
“The strategic plan also includes doubling the market share in the processed poultry products segment to 10%.”
Despite facing a challenging sales environment in 2023 with a notable decline of up to 40%, Wagdy anticipated a rebound of 20% to 25% in 2024.
Cairo 3A for Poultry, established in 2017, offers a diverse range of products, including frozen whole chicken, cooked, pre-cooked, and marinated chicken pieces such as thighs, drumsticks, wings, and breasts.
In the previous years, the Egyptian poultry industry has grappled with challenges, including inflation and the devaluation of the pound, leading to increased production costs.
A shortage of foreign currency in 2022 resulted in a decline in feedstocks, prompting farmers to cull thousands of chicks due to an inability to feed them.
Despite the challenging circumstances, some companies capitalized on the market’s potential.
To address the deficit the Egyptian government considered allowing the importation of poultry in specific quantities as Ramadan approached without adversely affecting local farmers.
Government spokesman Nader Saad acknowledged the struggles of poultry producers due to the feed crisis and announced measures such as a three-year exemption from property taxes for poultry farmers and increased feed imports, with the Ministry of Supply overseeing distribution to prevent price manipulation.
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