Egypt is known as one of the oldest agricultural civilizations. At the same time, crop production in Egypt is almost entirely dependent on irrigation due to the small volume and irregularity of precipitation.
Crop production demonstrates positive dynamics of production volumes and is characterized by a high degree of diversification: Egypt produces over 20 million tons of vegetables and cereals, over 10 million tons of sugar cane and sugar beet, as well as about 8 million tons of fruits. The volume of domestic grain production is not enough to meet the needs of the country, which leads to the purchase of products in foreign markets. For products such as oranges and grapes, Egypt is one of the world's leading exporters.
Milk and dairy products account for the largest share in the structure of livestock production. During 2017-2021, Egypt produced over 5 million tons of raw milk (75% is cow's milk). Large farms, the number and efficiency of which is growing as multinational companies increase investments in the country, already form the basis of Egypt's dairy industry. Domestic milk production meets about 70% of consumer demand.
The meat industry is characterized by high mechanization and automation of production processes. At the same time, the volume of domestic production (over 1.5 million tons of poultry meat and 375 thousand tons of beef) covers only 60% of domestic demand, the remaining 40% are imported products.
According to UN Comtrade, in 2021, the total volume of imports of agricultural products of Egypt increased by 20.1% compared to 2020 (+2.7 billion US dollars) to the maximum value for 2017-2021 — 16.4 billion US dollars. The cumulative average annual growth rate of imports for this period was 7.8%.
By the end of 2021, wheat (19.4%), corn (13.2%), soybeans (12.2%), palm oil (7.7%), as well as beef and edible offal of cattle (7.0%) accounted for the largest share in the value structure of imports of agricultural products of Egypt.
The increase in imports compared to the previous year was mainly due to an increase in the supply of palm oil (+536.8 million US dollars), corn (+342.4 million US dollars), beef and by-products of cattle (+307.6 million US dollars), as well as wheat (+306.4 million US dollars).
The main exporting countries of agricultural products to Egypt in 2021 were the USA (12.4%), Russia (11.2%), Ukraine (9.6%), Brazil (9.1%) and Indonesia (8.0%). The share of the top 10 countries accounted for 70.8% of the Egyptian agricultural import. Since 2017, there has been a significant increase in supplies from Romania (3.4 times), the USA (2.8 times) and India (2.1 times).
According to UN Comtrade, in 2021 the total volume of exports of agricultural products of Egypt reached 5.9 billion US dollars, an increase of 10.8% compared to 2020 (+0.6 billion US dollars). The cumulative average annual growth rate of agricultural exports for 2017-2021 was 4.4%.
The basis of exports of agricultural products of Egypt are oranges, strawberries and strawberries, fresh grapes, as well as potatoes, which in 2021 accounted for 31.1% of the country's exports in value terms.
In addition, Egypt exports fresh bulbous vegetables (3.6%), vegetables cooked or canned without vinegar (3.3%), soybean oil (3.2%). In total, the top 10 product categories accounted for about half of Egyptian agricultural exports in 2021.
In 2021, the main importing countries of agricultural products from Egypt were Saudi Arabia (13.9%), Russia (8.1%), the UAE (5.8%), Germany (5.7%) and the United Kingdom (5.5%). In total, the top 10 importing countries accounted for 61.3% of Egypt's agricultural exports in 2021.
According to the results of 2021, Russia took the second place among the leading importers of Egyptian food, and the volume in value terms reached a maximum in five years — 481.2 million US dollars.
Wheat consumption has been growing over the past 5 years, and the main factor in increasing demand is, first of all, natural population growth, this trend will continue: by 2030, the population will grow to 130 million people. Corn is the second most important grain crop in Egypt. According to experts' forecasts, corn consumption will increase in parallel with the development of the livestock sector and the growing demand for feed.
The key article of the targeted use of wheat imported by GASC is the state program of subsidizing bread. Under this mechanism, bread is sold to unprotected segments of the population at a price of 0.05 Egyptian pounds per loaf, while the actual current value is estimated at about 0.8 Egyptian pounds.
The state sells imported volumes of wheat on the market for subsequent milling into flour, and also compensates bakeries, if necessary, for the price difference between the cost of bread and the market price. In order to ensure the proper quality of flour for bread production, Egypt is forced to mix domestic wheat with imported wheat.
Vegetable oils in Egypt are included in the subsidized food products program and are provided for some segments of the population at a low price. It is worth noting that consumers with higher incomes usually buy one hundred percent corn and sunflower oil, while consumers with lower incomes prefer mixtures of soy, palm and sunflower.
Sunflower oil accounts for about half of the consumption of edible oils in Egypt. Moreover, sunflower oil is mainly consumed in refined and bottled form.
In addition to processing, sunflower is imported for direct consumption (including as a snack). The seeds are sold in small grocery stores fried both peeled and in the peel.
The most popular types of meat in Egypt are chicken and beef, they are an integral part of the national cuisine. Next in popularity is lamb. The structure of consumption of cattle meat in Egypt during 2017-2021 was dominated by locally produced beef, but the country does not fully meet the high domestic demand. By the end of 2021, the share of imported products increased to 47.1%, which was the highest figure for a five-year period.
Additional demand for meat and meat products is generated by the hotel and restaurant sector: Western-style restaurants are opening across the country, focused more on the tourist sector, which offer visitors premium beef steaks and other popular dishes.
International chains of cafes and restaurants, especially fast food format, create demand for various varieties of dairy products - cheeses, cream and ice cream.
Fermented milk products are gaining popularity among consumers seeking a healthy lifestyle. Yogurt is a popular product among the local population. In the structure of consumption of dairy products, a significant share is occupied by powdered milk used in the food industry. Egypt's milk powder needs are fully met by imports, as there is no domestic production.
