Supply/Demand Basics

  • Largest corn market in the region, 9.4 MMT imports in 2018.
  • Nearly 6.4 MMT of local corn crop produced in 2018, mostly white corn.
  • #1 import market for U.S. CGM importing 165 TMT in MY 2017/2018; U.S. DDGS imports of 245 TMT in MY 2017/2018.
  • Price-sensitive market; quality less important than price.
  • U.S. freight disadvantage to Black Sea export markets.

Country Overview

  • Population / growth: 101.12 million / 1.8%
  • Urban % / growth: 38.7% / 1.76%
  • GDP / growth (PPP): $1.1 trillion / 5.4%
  • GDP per capita (PPP): $13,000
  • Real GDP grew at 5.4% in 2018, compared to 4.2% in previous year. This growth is driven by large public and private investments and consumer consumption.
  • Economic activity is primarily driven by state-led projects.
  • Exports of goods and services have contributed positively to economic activity. and non-oil merchandise exports, the Suez Canal and tourism continue to rebound.

Trade and Market Share Issues

  • U.S. corn market share is 14 percent with 1.33 MMT, at 4th place in 2018 behind Argentina, Ukraine and Brazil.
  • Poultry sector leads corn demand by nearly 60-70% consumption followed by dairy, red meat, water buffalo, corn milling/crushing and aquaculture.
  • Egyptian aquaculture production has increased sharply to 1.5 MMT, and accounts for 80 percent of Egypt’s total fish production.
  • Egypt is today the tenth largest producer or farmed fish, as well as the world’s second largest producer of tilapia.
  • Central bank sets new lower inflation rate target to safeguard macroeconomic stability, set at 12% down from 21.9% in previous year.

Policy Issues

  • All feed grains and co products have zero duty except for a 5% import duty on sorghum.
  • The average total annual consumption of corn in Egypt, with all its types, reached around 16 MMT. 40% of the consumed amount is locally produced and the other 60% is provided through importation.