U.S. soybean exports - expanding horizons in Egypt

By Andi Anderson

Indiana Soybean Alliance (ISA) recently embarked on a mission to Egypt to explore the growing potential of U.S. soybeans in the country's poultry and aquaculture sectors. Hosted by the U.S. Soybean Export Council (USSEC), the Qualified State Soybean Board (QSSB) Learning Mission took place in Cairo, Egypt, offering invaluable insights into the opportunities and challenges faced by the soybean industry.

One of the key takeaways from the mission was the revelation that the largest market for U.S. soybean meal in Egypt is the poultry sector. Despite recent economic issues, including currency devaluation, the feed mill industry in the country remains optimistic about increased demand for U.S. soybean meal in the coming months. Additionally, the aquaculture industry, primarily focused on tilapia production, presents another significant avenue for U.S. soybean expansion, showcasing remarkable growth potential.

Egypt's aquaculture sector has experienced remarkable growth, with farm-raised fish now accounting for nearly 80% of the country's seafood market, a substantial increase from 50% in 2012. Tilapia, catfish, sea bass, mullet, and carp are among the prominent species produced through aquaculture, with per-acre fish production soaring from 400 kilograms to 2 tons since 2019.

In 2022, Egypt emerged as the third-largest market for U.S. soybean exports, importing over 4 million metric tons. The poultry and aquaculture industries have played pivotal roles in driving the demand for soybean products, particularly soybean meal, in the region.

The efforts to enhance soybean demand and knowledge in Egypt have been bolstered by the U.S. Soy Excellence Center (SEC), initiated by USSEC with support from the USDA's Foreign Agricultural Service (FAS). The SEC near Cairo has conducted more than 101 training programs, highlighting the advantages of U.S. soy compared to competitors, such as its higher protein content and digestibility. These programs also focus on improving production and fostering business growth for local stakeholders.

Indiana Soybean Alliance (ISA) board members had the opportunity to witness the SEC training program in action during their visit to Cairo University. The program covers various topics and empowers participants with valuable knowledge and skills to overcome challenges in the food and agribusiness sectors.

Challenges related to the availability of foreign currency in the Egyptian market, U.S. soybeans remain a preferred choice. Chris Riker, minister counselor for agricultural affairs at the U.S. Embassy Cairo, emphasized that while there's interest in purchasing U.S. soybeans, currency shortages pose transactional difficulties. Therefore, it is crucial for Indiana farmers and other stakeholders to demonstrate their commitment to supplying high-quality U.S. soybeans to Egypt.

U.S. soybeans are making remarkable strides in Egypt, primarily in the poultry and aquaculture sectors, by addressing economic challenges and seizing opportunities for growth. These efforts underscore the resilience and potential of U.S. soybean exports in a dynamic global market.

Photo Credit: istock-ds70