Egyptian Poultry Sector Holds Potential For U.S. DDGS Exports

To reengage with the poultry sector in Egypt, U.S. Grains Council (USGC) staff in the Middle East, Africa and Europe region traveled to the country last week to conduct a general trade servicing mission.

While the Council already conducts programs in Egypt dealing with starch and storage, the organization sees the poultry sector as a place for immense growth, which could prove to be a new outlet for U.S. DDGS exporters.

Egypt has been a growing market for distiller’s dried grains with solubles (DDGS) in the past, but sales have since leveled off. The Council sees the broiler industry in Egypt as a space to introduce the commodity, as the country’s broiler sector does not currently use DDGS in its feed.

“The broiler sector is the largest feed sector in Egypt, representing roughly three million metric tons (MMT) of feed in 2021,” said Reece Cannady, USGC assistant regional director for the Middle East and Europe. “At a 10 percent inclusion rate, this is a potential market size of 300,000 MT of DDGS, which, at today’s prices, equates to roughly $100 million.”

While in Egypt, Cannady and Jad Wakileh, USGC consultant in the region, met with many stakeholders across the marketplace, including poultry production companies, grain importers and traders, in addition to visiting wet markets and grocery stores for further education on local supply chains.

“Our engagement in Egypt has been very intense and long-standing,” Cannady said. “The Council has been actively engaged in helping fix the misperception of U.S. corn quality in Egypt, and that hard work is paying off; now it’s time to move the needle for DDGS exports to the country.”