Back to the complete issue
Wednesday, 13 May 2020

The wheat season in the northern hemisphere will be a godsend for food security in Egypt

The wheat season in the northern hemisphere will be a godsend for food security in Egypt: Egypt’s wheat imports could pick up in a couple of months once the harvest season begins in the northern hemisphere and helps to boost global supply, Bloomberg says. The harvest season comes at a critical time for Egypt, potentially enabling it to meet its 800k-ton import target during the local harvest season despite Russia and other major wheat producers restricting exports to bolster their own domestic supply during the pandemic.

Signs of stress in the international market: The reticence of other producers to export has meant that state grain buyer GASC has only imported 240k tons of wheat since the local harvest began in mid-April. Its last tender attracted just five offers — the fewest in more than a year.

Egypt has been relying on local wheat to build up its stockpile. The Supply Ministry has purchased 2.1 mn tonnes of wheat from local farmers since the beginning of the harvest season, 30% more than it snapped up in April last year at a slightly higher price of EGP 770 per ardib, Bloomberg notes.

Local farmers appear to be happy to play ball as they see higher prices and better policies from the government, including paying the farmers within 48-72 hours, which one farmer speaking to the business information service says is “way better than last year.”

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; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.