Egypt’s local production of edible oil, meal to rise following expansion of crushing capacity

EGYPT – Egypt to continue relying on oil seed imports as a result of expansion of its crushing industry and local production being far below demand levels.

The main oil seeds utilized in the country for production of both edible oils and animal feeds are soybeans and sunflower seeds.

In marketing year (MY) 2021/22, production of soybeans is expected to be 25,000 metric tons (MT), against local demand of 4.64 million metric tons (MMT), according USDA Foreign Agricultural Services in a GAIN report.

The consumption rate is 2.2 percent up from MY 2020/21 estimate of 4.54 million metric tons.

With Egypt’s domestic crushing capacity expected to reach about 8.4 MMT/day, up from 8.2 MMT/day in marketing year 2020/21, a large portion of its raw materials will be met through imports.

The increase in domestic crush capacity is attributable to the establishment of new crushing facilities.

Egypt’s domestic crushing capacity expected to reach about 8.4 MMT/day


Soybean crush operations in the country are dominated by two companies with over 80 percent of the total volume: SOYVEN and the Alex Seeds Company.


With the exception of these two companies, the majority of crush facilities usually operate at about 55 percent of their actual capacity.

Egypt’s domestic consumption of soybeans for food use in MY 2021/22 is expected to remain at roughly 17,000 metric tons, similar to 2020/21.

The country’s soybean imports are forecast at 4.6 million metric tons (MMT), up 200,000 MT from the MY 2020/21 estimate.

Its main suppliers have been the United States, Ukraine, Argentina, Uruguay, and Brazil.

Looking at sunflower seeds production, it is expected to be 19,000 metric tons during the same period, against consumption crushing of 95,000 MT.

Consumption of sunflower seeds for food use in MY 2021/22 at 10,000 MT, up 1,000 MT from the MY 2020/21 estimate of 9,000 metric tons.

Just like soybeans, the country will meet the deficit in demand by importing 95,000 MT, up by 5,000 MT from Post’s MY 2020/21 estimate.

Edible oil consumption expected to rise by 2.33%

With the expansion in crushing capacity, soybean oil production is forecasted at 837,000 MT, up by almost 2 percent from the MY 2020/21 estimate, while sunflower seed oil production to be at 40,000 metric tons.

The country’s total edible oil consumption, including palm oil which it mostly imports, is expected to be about 2.63 MMT, up 2.33 percent compared to the MY 2020/21 volume of 2.57 million metric tons.

Its demand for soybean oil is forecasted to reach about 1.03 MMT and still import 350,000 MT for blending with other oils.

However, FAS Cairo forecasts Egypt’s soybean oil exports in MY 2021/22 at 15,000 MT down by 30,000 MT from the MY 2020/21 estimate of 180,000 metric tons due to an anticipated increase in domestic consumption of soybean oil.

Total edible oil consumption is expected to be about 2.63 MMT in MY 2021/22 up 2.33 percent compared to the MY 2020/21


Sunflower seed oil production is expected at 40,000 metric tons, against consumption of at 355,000 MT forcing the country to import 350,000 MT.

Egypt’s imported palm oil will reach demand levels of 1.25 MMT, up by 2 percent from MY 2020/21 estimate.

Meal production to rise but the country to still import more

As a by-product produced during the crushing process, soybean meal production is expected at 3.63 MMT, up 2.25 percent compared to Post’s MY 2020/21 estimate of 3.55 MMT.

Its consumption is estimated at 3.9 MMT, up by 2.6 percent from MY 2020/21 estimate of 3.8 MMT.

The increase is attributed to rise in investment in poultry, aquaculture and dairy cattle industries.

The country’s poultry industry houses 25,000 licensed farms, with investment reaching EGP 90 billion (US$4.15billion).

In CY 2020, the poultry industry produced 1.4 billion chickens (broilers), and 13 billion table eggs. The union for poultry producers outlined future plans to increase investments in the sector with aim of producing 2 billion chickens in 2030 to meet local market demand as well as doubling the production of table eggs.

It should be noted that Egypt is one of the world’s largest fish farming countries – it is the first in Africa and the sixth internationally in this field, and the first in the production of mullet fish.

Egyptian fish production from aquaculture constitutes 1.7 MMT, or around 85 percent of total fish production in Egypt which stands at 2 MMT in CY 2020.

For sunflower seed meal, production is forecasted at 47,000 MT, against consumption of 150,000 MT.

The country will import both sunflower seed meal and soybean meal, purchasing 95,000 MT and 100,000 MT respectively.

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.