Egypt’s Supreme Holding is collaborating with an undisclosed British company in a joint venture, dubbed Continental Investments, to establish four animal feed factories in 10th Ramadan City within Sharqia governorate.
With a combined investment of USD 30 million (EGP 926 million), the joint venture aims to localize the production of concentrated feed for poultry, livestock, dogs, and cats. Multiple subsidiaries will be established to oversee the management of these factories.
The inaugural launch is soon, as the first factory, valued at USD 15 million (EGP 463 million), is scheduled to commence operations by March of 2024. Subsequent construction of two additional factories is planned for the year, with the final factory expected to be operational no later than 2025, with construction slated to take place on a 57,000-square-meter plot in 10th of Ramadan City.
The joint venture holds promise as a significant foreign exchange generator, with the British company securing a 90 percent majority stake and financing its contribution externally. Supreme Holding retains a 10 percent stake in the partnership.
The joint venture is anticipated to contribute to reducing the nation’s annual expenditure of USD 350 million (EGP 10 billion) on importing dog and cat food.
According to Supreme Holding Chairman Moharam Helal, the initiative will foster domestic production and address the reliance on foreign currency.
The joint venture comes against the backdrop of a pressing issue in Egypt—the shortage of animal feed, attributed to insufficient local production and a scarcity of hard currency. Engineer Mustafa El Sayed, Deputy Minister of Agriculture for Animal Wealth, highlighted the global nature of the crisis, emphasizing Egypt’s vulnerability to global events.
To address the feed shortage, the government is taking a dual approach: providing financial credits for importing yellow corn and soybeans and promoting local alternatives to ease the burden on hard currency.
Minister of Agriculture and Land Reclamation, Al-Sayed Marzouq Al-Qosayer, confirmed in October that the release of feed supplies continues in coordination with the Central Bank. The total released during the period from October 16, 2022, to October 26, 2023, amounts to 8.4 million tons, with a total value of USD 4.1 (EGP 126 billion). The release includes 121 thousand tons of corn and soybeans worth about USD 60 million (EGP 1.8 billion) during the period from October 20, 2023, to October 26, 2023.
Al-Qosayer also noted that the release comprises 88 thousand tons of corn worth about 31.6 million dollars, 33 thousand tons of soybeans valued at approximately USD 24.5 million (USD 756 million), and additional feed additives totaling around USD 3.6 million (EGP 111 million).