ALBAWABA - Dairy product prices in Egypt have continued to rise despite a 50% decrease in feed prices. In some areas, farmer's butter prices have reached 200 Egyptian pounds, compared to 135 pounds last year. The price of "Quraish" cheese has increased from 30 pounds to 67 pounds per kilogram (+120%), and milk from 15 pounds to 27 pounds per kilogram.
Hossam Saeed, a dairy farmer and trader, explained the reasons behind this increase, emphasizing that regardless of the feed price decline, there has been a general rise in living costs and production expenses. This includes an increase in agricultural land rent, with one "Qirat" now costing 700 pounds, compared to 350 pounds last year.
He further stated that as a result of the rising dairy product prices, his sales have decreased by approximately 45%. Many consumers have turned to farmer's ghee (a blend of vegetable and farmer's butter) priced at 80 pounds per kilogram, while pure butter is priced at 170 pounds per kilogram.
Engineer Mohamed Abdelhamid, the owner of a feed trading company, noted that livestock feed prices have decreased by 50%. Yellow corn now costs 10,000 pounds per ton, down from 20,000 pounds six months ago, and soybean meal has dropped from 46,000 pounds to 23,000 pounds per ton. Wheat bran has also decreased from 12,000 pounds to 8,000 pounds per ton.
He explained that the lack of a decrease in dairy product prices for farmers, despite the decline in feed prices, is due to a reduced supply of these products. Many farmers have left the production cycle in recent months due to the high cost of feed and the overall increase in living expenses, directly impacting the prices of these products.
The Egyptian Dairy Products Association (AHLYA) reported a 25% decline in dairy sales during Ramadan 2023 compared to Ramadan 2022, which is considered one of the marketing seasons. Annual production is estimated at 5.8 million tons, while consumption is around 8 million tons annually.
The cost of producing a kilogram of milk reaches 21 pounds (before the feed price decline), causing producers to incur losses when it was sold for 17 pounds per kilogram. This led to a decrease in dairy farms from 300 to 250.
Annual inflation for consumer prices in Egypt reached 39.7% in August of last year, up from 38.2% in July and 15.3% in August 2022. Food and beverage prices increased by 71.9% on an annual basis.
