EGYPT – Egypt has unveiled ambitious plans to cut wheat imports and reduce spending on subsidized bread by incorporating corn or sorghum as ingredients.
This initiative could save the government millions of dollars annually, but it faces pushback from bakers and millers concerned about potential financial losses and a drop in bread quality.
Egypt is one of the world’s largest wheat importers, predominantly from Russia, spending roughly US$2.1 billion annually on wheat.
The General Authority for Supply Commodities (GASC), Egypt’s state grains buyer, continues to secure wheat supplies through tenders and direct deals.
In August 2024, the country issued its largest-ever wheat tender, although it only managed to acquire 7% of its target due to rising prices. More recently, GASC has negotiated direct purchases of Black Sea wheat for delivery between November 2024 and April 2025, amounting to over 3 million tons.
The bread subsidy program, which feeds over 70 million Egyptians, remains a significant financial burden on the country’s budget.
The government has signaled its intention to eventually phase out the program as part of broader fiscal reforms. However, in the meantime, it has sought innovative ways to reduce costs, such as altering the composition of bread.
Under a plan introduced by Egypt’s supply ministry in September 2024, corn flour will be blended with wheat flour at a ratio of 1:4, beginning in April 2025.
This move is projected to save around one million metric tons of wheat annually. While corn flour is less expensive than wheat, local sourcing will be critical for cost-effectiveness.
Currently, Russian wheat, which Egypt imports heavily, costs approximately $220 per ton, while corn is priced around $200 per ton. Experts suggest that the potential savings range from $35 to $41 per ton.
The government scrapped an earlier plan to increase the extraction rate of wheat flour used in subsidized bread after strong opposition from industry groups. Corn had been used in bread production about two decades ago but was abandoned after lobbying from industry stakeholders, who cited concerns over quality and production processes.
Industry pushback
The proposal to use corn flour, however, has met with resistance from bakers and millers. Industry players argue that the substitution could lead to changes in bread texture, smell, and overall quality, which may not sit well with consumers.
Additionally, bakers are concerned about the potential rise in labor costs due to longer baking times required for coarser flour with higher bran content. Millers, whose earnings depend on the volume of wheat processed, also stand to lose financially from a reduced demand for wheat.
In a parallel move, Egypt’s government has floated the idea of introducing sorghum flour into bread production. Sorghum is cheaper and locally grown in modest quantities.
However, bakers have expressed concerns about the longer baking times and increased labor costs associated with using coarser flour. Mills are also resistant to this change, as it would reduce the volume of wheat processed and, consequently, their income.
Despite these concerns, the government has not ruled out sorghum flour as an alternative, as it aligns with Egypt’s broader goals of boosting agricultural self-sufficiency and saving hard currency.
The country grows some sorghum and imports seeds, mostly from India, but its use in bread remains a contentious issue.
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