Egypt's poultry sector reels from currency turmoil, driving up prices

Last year, Ihab Gomaa was managing 12 chicken farms in Egypt's Fayoum, an agricultural region south-west of Cairo.

Now five are shuttered, after the poultry sector, which depends heavily on imported feed, was pummelled by a foreign currency shortage and repeated devaluations of Egypt's pound.

The industry's woes are one example of how the economic turmoil over the past year has impacted both local businesses and consumers, with soaring poultry prices stretching Egyptians' budgets despite government efforts to curb inflation by importing cheap chickens from Brazil.

"There's no stability in feed prices," said Gomaa, standing in an empty 500-square-metre concrete broiler farm where bright red drinkers, used to dispense water, dangle from the ceiling unused. "This is the worst period in years for the industry."

Egypt, a major buyer of basic commodities, has been suffering from a foreign currency crunch that sent the pound tumbling by nearly 50% against the dollar, suppressed imports, and pushed official headline inflation to 31.9%, its highest for five and a half years.