End Market Analysis of Ethiopian Livestock and ... - USAID Microlinks

and the country is now the fifth largest importer of boneless beef worldwide. Growth from 150,800 MT of boneless
beef imports in 2005 to 253,358 MT in 2007 represents a 68
percent increase in two years. It appears that despite consumer
preferences for fresh beef, concerns about transboundary diseases,
particularly FMD, are driving a shift from live cattle to beef
imports. Indeed, following an FMD outbreak in January 2006,
imports not only of live animals but also of carcasses were banned,
and only boneless imports were allowed. This is in accordance with
OIE recommendations, which state that for countries where FMD
is present, the exportation of boneless beef, chilled or frozen, is
safe (as long as the meat originates from deboned carcasses from
which the major lymph nodes have been removed). 61 Boneless beef
is imported either chilled or frozen, with frozen meats supplied
mainly by Argentina and Brazil and catering primarily to lowerincome
groups within Egypt.
The 2007 price paid for boneless beef was $1,931 per MT, one of the lowest prices amongst the top importers. This is
likely due to large volumes of the cheaper frozen (rather than chilled) beef, as Egyptian importers report a monthly
market for approximately 50,000 MT of frozen meat.
Egypt is also the world’s fourth largest importer of beef offal, with 82,005 MT imported in 2007. Prices paid per MT
($858) are low relative to other importers. The US, a relative newcomer to the Middle East market, is a major supplier
of beef offal to Egypt. 62
Buffalo meat is widely consumed in Egypt and, as an alternative bovine meat, may displace some of the potential
market for beef. Egypt imports large quantities of frozen buffalo meat from India.
MARKET OVERVIEW: SHOATS AND SHOAT MEAT
Egyptian live sheep and sheep meat imports are low (an annual average of 5,012 head and 1,656 MT respectively from
2005 to 2007). Egypt does not import any goat meat.
TRENDS
The Egyptian authorities are reportedly planning to construct abattoirs near the ports of entry in order to slaughter
live animals upon arrival. If this project is completed, this may shift some of the import market back to live animals
and away from meat.
ETHIOPIAN MARKET SHARE
From July 2005 to April 2006, Ethiopia exported 864 MT of meat (valued at $1.49 million) to Egypt. This represents
12 percent of Ethiopia’s meat exports, but less than 1 percent of Egypt’s meat imports. In early 2006, an FMD
outbreak in Egypt was attributed by Egyptian authorities to Ethiopia, as the disease strains found in Egypt were
reportedly Kenyan types exported through Ethiopia. The resulting limitation on imports to only boneless beef has
limited Ethiopia’s ability to participate in the market, since the country lacks the appropriate beef dressing facilities for
deboning and vacuum packaging. In a recent positive development, Egypt has reportedly agreed to re-open its market
to Ethiopian cattle.
61 Rich et al 2008: p. 19
62 http://www.usmef.org/TradeLibrary/MiddleEast.asp
MEAT RETAIL PRICES IN EGYPT
Meat retail prices in Egypt vary from $4.28 to
$8.23 per kg depending on the type, cut and
quality of meat. A sample of prices collected
during a market study in 2006 is listed below:
• Beef escalope $5.65/kg
• Beef Knuckle $5.65/kg
• Beef brisket $4.28/kg
• Beef cubes $6.34/kg
• Beef shank $6.34/kg
• Veal briskets $5.31/kg
• Veal ribs $8.23/kg
Ethiopian beef is selling at the low end of the
market.
END MARKET ANALYSIS OF ETHIOPIAN LIVESTOCK AND MEAT 23