EGYPT – Egypt is set to establish a company dedicated to localizing the manufacturing of grain silos as part of a comprehensive strategy to boost wheat supplies.
This initiative, announced by Sherif Farouk, the Minister of Supply and Internal Trade, is a crucial component of the government’s comprehensive plan to increase storage capacity and ensure the stability of wheat reserves.
Speaking before the parliamentary committee tasked with evaluating the new government’s action plan, Farouk outlined the project’s ambitious goals.
“Our aim is to expand the total storage capacity from the current 3.40 million tonnes to 5 million tonnes,” Farouk stated.
The plan involves constructing new silos and upgrading existing ones to accommodate the increased capacity.
A key aspect of the strategy includes integrating the silos into the national railway network and utilizing the Nile for wheat transportation in collaboration with the Ministry of Transportation.
This will streamline logistics and reduce dependency on foreign currency by minimizing the need for imported wheat storage solutions.
The minister highlighted that since the start of the harvest season on April 13, 2024, Egyptian farmers have supplied approximately 1.80 million tonnes of wheat to the government.
This significant contribution underscores the importance of having adequate storage facilities to handle and preserve the national wheat supply.
Currently, the Ministry of Supply and Internal Trade owns 83 silos, including five strategically located in seaports.
These facilities, essential for storing wheat used in the production of subsidized bread, were established through partnerships with American, Danish, and French firms. The new company will further reduce reliance on foreign expertise, as the private sector currently engages French, Turkish, and Spanish companies for silo construction.
Reflecting on the progress made over the past decade, Farouk noted,
“In 2014, the government owned just 32 silos. Given our population now exceeds 110 million, it is imperative to maintain safe levels of strategic goods like wheat by securing proper storage facilities.”
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