Back to the complete issue
Wednesday, 3 February 2021

Could France soon replace Russia as our prime wheat supplier?

French wheat could be filling the Russia-shaped hole in Egypt’s import quota: Swiss commodities giant Glencore made the lowest offer in GASC’s international wheat tender yesterday, the first since the state grain buyer canceled a tender in response to possible export restrictions on Russian wheat, Reuters reports. The firm offered to ship 60k tonnes of French wheat at USD 269.10 each. GASC is buying 240k tonnes of French wheat — half of the total amount the grain buyer ordered, Al Masry Al Youm reports, and is also said to be looking into sourcing from Canada and the United States.

So long, old friend? Russia’s new USD 60.18 per tonne tax on all wheat exports, which is set to go into effect by March, has given French suppliers a competitive edge over our long-time trade partners. Russian wheat constituted 80% of Egypt’s purchases last season, with 2.5 mn tonnes bought as of August 2020. The decision to levy higher taxes on the part of Russian officials comes as part of a protectionist bid to boost the country’s local supply and stabilize prices. GASC nonetheless ordered 120k tonnes of Russian wheat in yesterday’s tender.

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. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank 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; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.