EGYPT – Cairo 3A, an integrated agri-commodity trader and manufacturer in Egypt is seeking to invest EGP 7 billion (US$448.67m) in a vertically integrated poultry project in the next three years.
According to reports by Enterprise, the project aims to encourage investment in remote desert areas to include all stages of the industry starting from poultry breeding to processing.
Through the new development, the company plans to attain production of 200 million chickens on an annual basis.
The first stage of the investment plan includes EGP 2.5 billion (US$160.2m), with an aim to produce 60 million birds per annum while creating 1,000 job opportunities. The second phase will cost EGP 4.5 billion (US$288.4m).
Cairo 3A has already signed an agreement with worldwide poultry breeder Hubaard to begin importing high-efficiency chicken breed for the project, indicated the report.
The investment plan comes days after the country attained an avian influenza free approval from the World Organisation for Animal Health (OIE).
The approval has enabled the North African country to resume poultry exports after a 14-year hiatus following the avian flu crisis in 2006.
Poultry investments in the Egyptian market are worth about 90 billion Egyptian pounds (US$5.7 billion), with over 55,000 poultry establishments, employing 2.5 million workers.
Other than the recent investment, Cairo 3A expanded into poultry farming with the purchase of a 50% stake in Pyramid Poultry in January 2020.
The company also has business in the animal feed industry, having acquired 97.5% of the Egyptian Starch and Glucose Company (ESGC) earlier this year from Americana Egypt, Cairo Poultry and Americana Group.
ESGC provides a broad portfolio of products for customers in the confectionary, dairy, meat, and beverage industries, as well as non-food markets such as paper, textile, and board manufacturing, in addition to the ruminant feed market.
They specialize in producing and marketing corn starch, glucose syrup, corn oil, gluten feed and meal.
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