Sudan Crisis Sparks Food Supply Deficit in Egypt, Leading to Soaring Food Prices
The recent outbreak of violence in Khartoum, Sudan, between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) has had far-reaching consequences, including a devastating impact on the humanitarian situation and a ripple effect on neighboring countries.
Sudan Crisis Sparks Food Supply Deficit in Egypt, Leading to Soaring Food Prices
The recent outbreak of violence in Khartoum, Sudan, between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) has had far-reaching consequences, including a devastating impact on the humanitarian situation and a ripple effect on neighboring countries. The clashes, which occurred on Saturday, April 15, have resulted in over 750 fatalities, with more than 5,100 individuals injured and almost one million people displaced.
Tragically, the violence extended beyond Khartoum, as a deadly attack in Darfur claimed the lives of five humanitarian workers, with two others sustaining serious injuries. Even the International Rescue Committee (IRC) was not spared, as bullets penetrated their office in Khartoum, forcing the organization to suspend many of its operations in the country. Nonetheless, they continue to provide life-saving services to vulnerable communities in the Tunaydbah camp, located in Blue Nile and Gederaf state.
The repercussions of the Sudan crisis have now spilled over to Egypt, resulting in a significant supply deficit and a surge in food prices. Egypt heavily relied on Sudan for imports, including 110,000 head of live animals and 10,000 metric tons of beef in 2022 alone. To mitigate the impact, Egypt is now seeking alternative sources from Somalia and Chad. In 2022, trade between Egypt and Sudan reached $1.4 billion, accounting for 13% of Egypt's overall African commerce. Egypt exported $929 million worth of goods to Sudan, while Sudanese trade with Egypt totaled $505 million.
Consequently, the disruption caused by the conflict is expected to hamper the flow of third-country trade between Egypt and the rest of Africa, as Sudan serves as a vital trans-shipment point. The crisis has also intensified Egypt's struggle to control inflation, as rising food and energy prices further burden the government. Beef prices have skyrocketed, with one kilogram now costing between EGP 350 ($12) and EGP 400 ($13), compared to EGP 150 ($5) and EGP 200 ($7) a year ago.
While the crisis may not create opportunities for US beef suppliers, Egypt's government and military are increasingly turning to more affordable sources of protein, such as US chicken leg quarters, to alleviate the economic hardships faced by its citizens. As the currency depreciates, the demand for affordable food options rises.
As the Sudan crisis continues to unfold, urgent efforts are required to restore stability in the region, address the humanitarian crisis, and mitigate the far-reaching consequences on neighboring countries like Egypt.
Sources:
https://www.rescue.org/article/fighting-sudan-what-you-need-know-about-crisis