Value investing methodology in the poultry industry and managing a post-crisis economy

News Date : Aug 03 2021

Through the tools available on the ground, assessing strengths and weaknesses and measuring risks Expected through official figures and statistics for the General Federation of Poultry Producers, which indicate To that about 90 billion Egyptian pounds, the value of domestic and foreign investments on the ground And the size of his labor amounts to about three and a half million workers directly in addition to employment Indirect logistics and other services, which make the poultry industry one of the most important elements The Egyptian economy. It is worth noting that about 75% to 80% of this figure represents small breeders and workers in general Individual and semi-institutional, and the rest represents large companies and huge entities that have more than It is one of the production cycles, so the chances of avoiding the loss resulting from the price differences between The actual cost and selling price is higher in addition to more than one other center of power that young people can't Breeders achieve it. Despite this, the volume of local poultry production reached 95% of sufficiency Self in the Egyptian domestic consumption needs and the requirements of tourism, hotels and other things Emphasizes the role of continuous development on the part of the Egyptian product to face the continuous changes And the renewed challenges, especially in the last stage of political and satisfactory changes And mutations in the viral strains facing the herds and last but not least the required control Its implementation in the final price of poultry, although industry inputs, especially feed ingredients From yellow corn and soybeans is not controlled as it is almost completely imported, which leads to To the difficulty of controlling the price of the largest value of the industry inputs, which amount to about 70% Of the value of the final production and all of this, of course, regardless of the misuse of brokers and parties The mediator to put pressure on the local product to carry out the sale at prices lower than the prices announced in the Egyptian Poultry Exchange. Therefore, after clarifying the value of domestic wealth, it must be protected after it has transformed from a nascent industry to one An industry that achieves almost complete self-sufficiency in the local needs of poultry and its factories Especially with the presence of fourteen facilities that can be exported and that have international certificates that allow them By exporting its poultry products and full ability to achieve the needs of poultry factories and particles In factories and companies located on Egyptian soil. Among the most important measures taken by the state to protect the poultry industry, which can be used have: 1. Imposing a 30% protection fee on imported poultry 2. Prohibition of importing hashes 3. The work of a ministerial committee, No. 222, to examine the import of poultry 4. Inclusion of licensed farms in the initiative of the Central Bank for small and medium enterprises. And through opportunities for optimal exploitation of the strengths available to this sector and through the existence of a plan Carefully designed for the advancement of the industry, one of the most important ideas was the optimal use of the fund Egyptian Poultry Protection, which was established in 2009 with a primary purpose to confront the threat of an epidemic Avian influenza and through implementation mechanisms and compliance with the data available to the General Federation of Producers Poultry and through the FAO to organize the production process at the level of geographical need For Egypt and also taking into account the seasonality of consumption requirements, for example, it is known that local consumption increases The demand for poultry during the months of Sha’ban and Ramadan, but it decreases significantly during the Eid period Accordingly, it is possible to predict a consumption plan and based on the data of previous years A production and distribution plan can be made according to the Egyptian geography and the expected consumption times This is to avoid an increase in supply over demand at any stage, which causes individual losses that do not affect Not only on the micro-economy of the product, but it also negatively affects the Egyptian macro-economy One of the most important ideas is the unification of purchase and the work of a device within the union that will be responsible for importing or purchasing and responsible for agriculture outside Egypt. The most important eligible areas for this is the sister Sudan, and therefore it is of great importance, as the value of poultry feed reaches about 70% of the final value of the poultry product with the suspension of any production licenses New factories, as the size of the feed factories currently exceeds the production capacity by at least twice. It is worth noting that the requirements of the Ministry of Supply and the sovereign authorities of poultry during the year are known and that the fluctuation in prices does not occur except in a small period in the seasonal stages of the year and even before implementing the strategies required to solve the gap between supply and demand fluctuating during the year and the lack of readiness of the logistics and marketing system, it is possible to use the compensation fund Which was already established in 2009, whose main objective was to protect the poultry industry from the danger of the bird flu epidemic, which is basically 1% of the value of the imported products for the poultry industry and can be directly exploited to bridge the gap between the cost price and the selling price required by the Ministry of Supply and the sovereign authorities, which always resort to To import to meet the required needs at the price required for the consumer In this case, the use of the fund will be a temporary partial solution and a good housing until clear logistical and marketing mechanisms are found based on clear data to ensure that there is no gap between supply and demand at a fair price throughout the year, taking into account the seasonality that directs the demand for poultry and the needs of the Ministry of Supply and sovereign authorities
Value investing methodology in the poultry industry and managing a post-crisis economy