Source: APKinform (Ukraine)
Traders are not confident in the effectiveness of the Egyptian government’s plan to reduce wheat imports by using corn or sorghum flour to produce subsidized bread, which is proposed to be implemented by April, according to S&P Global Platts.
As specified, the doubts are due to the fact that discussions have been going on for one or two years and each time after the announcement of the start date of the plan – it is canceled. In addition, even three months after the first relevant reports in the local media in October, there was still no official comment.
As a reminder, it was previously reported that the Egyptian government is considering a proposal under which corn flour would be blended with wheat flour at a 1:4 ratio, potentially saving about 1 million tons of wheat. If successfully implemented, the initiative could result in significant foreign exchange savings through the use of local corn. However, traders and representatives of the bakery industry have tentatively opposed the plan, expressing concern over the negative impact on bread quality due to the use of feed grade maize.
In addition, doubts exist because wheat and corn prices are often similar, with corn sometimes being more expensive than wheat. The Russian Federation is the main source of wheat imports to Egypt, while for corn it is South American countries and Ukraine.