Egyptian Corn Imports Projected to Rise Amidst Feed Industry Recovery, USDA Reports

Egypt's corn imports are expected to increase in the 2024/25 marketing year as the country's feed industry recovers from recent challenges, according to a report by the United States Department of Agriculture (USDA) released on Tuesday.

The report attributes the projected rise in corn imports to several factors, including increased demand from the poultry, aquaculture, and dairy sectors, as well as improved access to foreign currency. The Egyptian government's recent efforts to stabilize the economy and secure foreign currency deals have eased the import constraints that previously hindered the feed industry.

"Post forecasts Egypt’s corn imports in MY 2024/25 at 7.7 MMT, up by 200,000 MT from Post’s estimate in the previous marketing year," the USDA report states. "Post is revising MY 2023/24 corn import estimates up by 15.3 percent from its previous estimate, as more imports will be facilitated by the availability of foreign currency in Egyptian banks."

Despite the optimistic outlook, the report cautions that a full recovery of the market may take time, with some industry insiders predicting it could extend into 2025 or even 2026.

Egypt's domestic corn production, while experiencing growth, remains insufficient to meet the demands of the feed industry. The USDA report forecasts Egypt's corn production to reach 7.6 million metric tons in the 2024/25 marketing year, a 5.5% increase from the previous year. This increase is attributed to a rise in harvested area and improved yields due to better management of fall armyworm, a major pest affecting corn crops.

Brazil, Argentina, and Ukraine have been the primary suppliers of corn to Egypt in recent years. As the Egyptian feed industry continues to recover and demand for corn rises, imports are expected to play a crucial role in meeting the country's needs.