The animal production sector is growing rapidly in Egypt. Livestock and poultry production reached 16.4 and 161.5 million head, respectively, in 1996. As a result, mixed-feed manufacturing has gained great momentum in recent years. The local availability of feed ingredients at low prices in addition to governmental subsidies made animal feed industry highly feasible. Currently, there are 28 governmental feed mills -belonging to 9 major companies- producing livestock and poultry feeds. The total production of feed amounted 1.25 million mt in 1996, valuing about 250 million US dollars. Mixed-animal feed manufacturing and marketing are controlled by the government, represented by the Agricultural Development and Credit Bank and Agricultural Cooperatives. The contribution of the private sector to the animal feed industry is still limited. The public sector accounts for 88 per cent of animal feed output.