GRAIN IMPORTATIONS INTO EGYPT OVERALL SITUATION AND A VIEW OF LOGISTICS,

QUALITY REQUIREMENTS AND RISKS

Sherif FAKHRY

SGS Egypt, Agricultural Services Manager

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EGYPT AND GRAINS

Bread was the most important part of the ancient Egyptian

diet. There was no rice, maize or potatoes at that time

those commodities were only introduced into the country

thousands of years later.

The early Egyptians depended on wheat and barley to

provide the carbohydrates they needed for a healthy,

energetic lifestyle.

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Production in Egypt is assessed under

irrigated conditions

PRODUCTION AREAS IN EGYPT CLASSIFIED

BY FAO

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PRODUCTION DATA OF WHEAT IN EGYPT

2012-2013

Ministry of Agriculture experts declared that planted area in

MY 2012/13 increased slightly compared to last year due

to the increase of procurement prices offered to the

farmers this year.

According to the government official statistics, wheat

production has increased significantly from 7.2 MMT in MY

2010/11 to about 8.4 MMT in MY 2011/12 due to favorable

climatic conditions. Production for MY 2012/13 is

estimated to be around 9 - 9.3 MMT given the again

favorable conditions for this year.

However, many experts, traders, and consumers believe

that this production figure may be overestimated.

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PRODUCTION DATA OF CORN IN EGYPT 2012-

2013

Egypt’s corn production is forecasted to reach 6.5 MMT in

MY 2013/14, lower than the MY 2012/13 level of 7MMT.

With the declining value of the Egyptian pound, corn prices

are likely to increase, making the crop more attractive to

farmers. However, yields and production will be restrained

by the expected increase in fertilizer prices, as well

potential shortages and high prices for pesticides.

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PRODUCTION DATA OF RICE IN EGYPT 2012-

2013

Rice is Egypt’s second most important export crop, after

cotton.

Total area harvested and production is to remain stable in

MY2012/2013. The 13-15 percent increase in paddy rice

prices and a similar percentage increase in retailer prices

will encourage farmers to maintain the same planted area

in the upcoming season.

Production of medium grain rice reached 6.7 MMT with 1.1

MMT for exportation.

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SUMMARY GRAINS 2012-2013

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GRAIN FORECAST OF

IMPORTS

DURING

2013/14

ORIGINS OF MAIN

IMPORTS

WHEAT 7.5 MMT Black Sea

Eastern Europe

USA

France

CORN 6.5 MMT Black Sea

Eastern Europe

USA

RICE 0.34MMT India

Pakistan

Russia

GRAIN IMPORTS DURING 2013

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MAIN IMPORTERS IN COUNTRY

Wheat:

Governmental sector

(GASC) 60%.

Private sector 40%.

Corn:

Private sector 100%.

Rest of Grains:

e.g Rice, Soybean,

Barely….

Total by private sector.

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KEY PORTS AND TERMINALS

12 commercial ports.

Among them, the most

important grain handling

ports are Alexandria which

is the biggest port in Egypt;

Dekheila Port is a natural

extention to Alexandria Port

and Abuqir east port.

Damietta Port which has the

largest container terminal

and most sophisticated

grain and container handling

equipment in the Middle

East.

PortSaid and Suez at both

ends of the Suez canal.

Safaga on the Red-Sea.

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Direct storage by

conveyors to Silos

Releases out of port

Majority of the grain handling is in Bulk

Storage in flat warehouses

TRANSPORTATION AND HANDLING OF GRAIN

IMPORTS

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Barges Trucks Railway

TRANSPORTATION AND HANDLING OF GRAIN

IMPORTS

QUALITY, PROCEDURES AND

DOCUMENTATION

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QUALITY ISSUES

Local crop issues in wheat

and corn:

Moisture can be high during

the harvest and supply.

Purity – Possible admixtures

and contamination.

Imported wheat issues:

Protein%

Moisture%

Ambrosia and

Bug damage.

Imported corn issues:

Aflatoxin

Broken%

Ambrosia

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PROCEDURE WHEN SHIPMENTS ARRIVE

Presentation of documents by vessel’s agent to the

authorities to gain approvals to berth.

Authorities (Ministry of Agriculture, ministry health and

general authority of import and export + central lab. of

feed, in case of Corn) board the vessel for sampling.

Analysis of the cargo is performed for Quality, Health and

Quarantine parameters.

In case of approval, discharge is then performed with

representative sampling by the Authorities.

In cases of Rejection: Vessel is turned away or discharged

under certain conditions depending on the issue.

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MAIN DOCUMENTS REQUESTED AT TIME OF

ARRIVAL

Original BLs or LOI.

Cargo Manifest.

Cargo Plan.

Certificate of Origin.

Invoice.

Importation approvals.

Phytosanitary certificate.

Original quality and

quantity certificates.

Fumigation certificates.

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GENERAL CHALLENGES

Farmers don’t always supply all quantities for the produced

wheat to the Government. Feeding to animals and local market

consumption can occur.

Insufficient storage facilities can result in loss and damage to the

grain.

Losses during discharges, transportations and logistics can

occur.

Decrease in the value of EGP in last 2 years makes importation

very expensive.

Instability and uncertain political conditions prevail.

Quality problems are common.

Subsidize or not …? The common question for the farmers.

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SGS ACTIVITIES IN EGYPT

Paper study to ministry to inspect local crop and issue quality

and quantity certificates.

Working on Crop Quality Map.

Closely work with farmer and NGOs to increase the awareness

and field knowledge with new high technology processes being

introduced into agriculture locally.

Quality and quantity inspection at both ends to be sure of the

specification and tonnages.

SGS management of weighbridges in 4 Egyptian ports to control

quantity with customs

Risk Management and solutions:

FOG and other guarantee services

CMA and SMA

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THANK YOU

To contact us :

agriculture@sgs.com

www.sgs.com