São Paulo – Egypt has moved to exempt frozen whole chicken from its import tax, effective through May 31 2017, in a government a decree issued this Monday (28). According to Arab Brazilian Chamber of Commerce CEO Michel Alaby, the regular tax rate is 30%.
“This broadens the market for Brazilian poultry exporters,” Alaby remarked. Brazil sold USD 121.8 million worth of chicken to Egypt through October this year, which is 26.3% more than in the year-ago period, based on figures from the Ministry of Industry, Foreign Trade and Services. The increase in amount sold was even bigger at 38%, to 84,500 tons.
Egypt is the fourth leading Arab buyer of Brazilian poultry, trailing only Saudi Arabia, the UAE and Kuwait. It is also the 9th biggest overall importer of the Brazilian product.
The exemption is retroactive to November 10. Egyptian press outlets impute the move to hiking prices of locally produced chicken following the Egyptian pound’s slide since November 3, when the Central Bank unpegged its currency, allowing it to float freely.
Local producers reacted to the news by saying much of the production inputs are imports, therefore a weaker pound means vaccines and feed, hence the need for increasing chicken prices.
*Translated by Gabriel Pomerancblum
