Supply/Demand Basics

  • Largest corn market in the region, 8.2 MMT imports in CY 2016.
  • Nearly 6 MMT of local corn crop, mostly white corn.
  • #1 import market for U.S. CGM importing 143 TMT in MY 2016; #12 import market for U.S. DDGS with 132 TMT in MY 2016.
  • Price-sensitive market; quality less important than price.
  • U.S. freight disadvantage to Black Sea export markets.

Country Overview

  • Population: 91.5 million
  • Population growth: 1.67%
  • Urban %: 43.1%
  • Urban growth: 2.3%
  • GDP: $943.1 billion
  • GDP growth: 2.2%
  • GDP per capita: $10,877
  • Large government debt and stagnant economy magnified by both local and regional instability.
  • Government is cutting consumer subsidies gradually since 2014. Saudi Arabia and UAE continue to support Egypt economy. Mega infrastructure projects contribute to economic stimulation.

Trade and Market Share Issues

  • U.S. corn market share stable at 4th place in 2016 behind Ukraine, Brazil and Argentina.
  • Poultry sector leads corn demand by nearly 65% consumption followed by dairy, red meat, water buffalo and corn milling/crushing.
  • The Regional Center for Food & Feed (RCFF) mirrors FGIS inspection system.
  • RCFF operates as a training center for other countries in the region.
  • Political instability, stagnant economy and higher inflation rate (24.3%) decreases demand.

Policy Issues

  • All feed grains and co products have zero duty except for a 5% import duty on sorghum.
  • Concerns about ambrosia seeds in corn shipments has disrupted trade.