Source: Ukragroconsult (Ukraine)
Egypt’s private companies dominate the import market following changes in the state procurement agency responsible for wheat purchases.
As one of the largest wheat importers in the world, Egypt is projected to purchase 12.5 million tons in MY 2024-25, according to the USDA.
Traditionally, the public and private sectors have played a crucial role in imports. In the 2023-24 season, imports under the government’s General Authority for Supply of Commodities (GASC) accounted for about 52% of total wheat imports of 12.3 million tons, while 3.17 million tons were purchased through tenders and private deals in the current marketing year.
However, on December 6, the Ministry of Supply appointed Mostakbal Misr, Egypt’s Future Agency for Sustainable Development, as the new exclusive importer of food products, taking over the procurement responsibilities previously handled by GASC.
The change led to a higher share of imports from the private sector in January compared to last year, as the state focused on buying wheat from local Egyptian companies with wheat stocks in international markets rather than participating in tenders.
Traders said the state has bought about 1 million tons of wheat from private Egyptian companies with Russian wheat stocks and local farmers since December. One Cairo-based trader said Egyptian farmers are restricted from selling to the state and sales to private companies are not encouraged.
Traders also noted that private companies in Egypt are offering imported wheat at prices $10 to $15 per ton below current import prices, making their products more attractive.
In January, total wheat imports reached 650,812 tons, with private importers accounting for 90% of this volume. The state’s share fell sharply to just 63,000 tons, in stark contrast to January 2024, when Egypt imported 688,394 tons, with the state responsible for 84% of the total, according to the traders’ ship compositions.
One buyer said: “Private companies in Egypt have already established relationships with international sellers, which makes it easier for Mostakbal Misr to buy Russian wheat locally rather than importing it themselves.”
However, another buyer warned that “this could create a gap in supply.” If the government does not import enough wheat to meet overall demand and private importers increase their purchases, it could lead to potential shortages and price fluctuations.
Recent CIF spot offers for wheat with 12.5% protein to the port of Alexandria were published at $255/t, with a freight spread of $15/t from Russia to Egypt. Platts, part of S&P Global Commodity Insights, estimated the FOB 12.5% Russian wheat price for March loading at $242/t on Feb. 6.
The dominance of Russian wheat in the Egyptian market remains significant. Egypt remains a major buyer of Russian wheat, having purchased 5.3 million tons during the marketing year from July to December 2024.
In January, the share of Russian wheat increased slightly by 1.1 percentage points year-on-year to 85.5%. In the coming weeks, another 291,200 tons of Russian wheat to be shipped from Russia’s Black Sea port of Novorossiysk to Egypt are currently being loaded or are en route to the Russian port, according to ship trader trains.
On the export side, Egypt plays an important role in regional food security, supplying at least 1 million tons of flour per year to neighboring countries such as Palestine and Sudan amid ongoing conflicts.
Established by presidential decree in 2022, Mostakbal Misr acts as the development arm of the Egyptian Armed Forces.