Back to the complete issue
Tuesday, 22 August 2017

Egypt considering rejecting 63k tonne shipment of Romanian wheat

This is not ergot-related: Egypt is considering rejecting a 63k tonne shipment of Romanian wheat in the port of Safaga, sources told Reuters. The Agriculture quarantine authority found the shipment to contain poppy seeds and has rejected it, the Agriculture Ministry spokesperson told the newswire. A final decision will be made by the prosecutor’s office, to which the case has been transferred. “Some types of poppy seeds cannot be sieved so it would have to be rejected,” a source explained. “If re-exported, the cargo would be the first GASC wheat purchase to be turned away from an Egyptian port since a French wheat cargo was rejected for containing the common grain fungus ergot in 2015.” One trader says rejecting the shipment is “going to make a big problem for GASC in the upcoming tenders, especially if it will be totally rejected.” A more cynical trader says the crackdown is an attempt by the quarantine authority to show that “inspection companies can make mistakes … A case like this could make them (the government) revise the whole idea of using inspection companies at the ports.” Egypt has been using private companies to inspect shipments abroad.

…Stakhanovite moment? The problems with the Romanian shipment come at a time when wheat is increasingly becoming a buyers’ market. Russian farmers are poised to beat the record for grain production set during the Soviet era, Bloomberg reports. The harvest will total at least 130.7 mn tonnes this year on bumper wheat and corn crops — 2.6% above 1978’s all-time high, Director General of ProZerno Vladimir Petrichenko said. ProZerno expects Russian wheat output to reach 80 mn tonnes this year, maybe even 85 mn tonnes, Petrichenko says. The international wheat market has already turned bearish “as the prospect of another season of ample supply has sent prices plunging.”

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.