{"id":544626,"date":"2022-03-14T03:55:12","date_gmt":"2022-03-14T03:55:12","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/03\/14\/were-getting-wheat-from-ukraine-russia-and-romania-within-days-and-local-farmers-are-pushing-the-state-to-pay-more-for-the-domestic-harvest\/"},"modified":"2022-03-14T03:55:12","modified_gmt":"2022-03-14T03:55:12","slug":"were-getting-wheat-from-ukraine-russia-and-romania-within-days-and-local-farmers-are-pushing-the-state-to-pay-more-for-the-domestic-harvest","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/03\/14\/were-getting-wheat-from-ukraine-russia-and-romania-within-days-and-local-farmers-are-pushing-the-state-to-pay-more-for-the-domestic-harvest\/","title":{"rendered":"We\u2019re getting wheat from Ukraine, Russia and Romania within days \u2014 and local farmers are pushing the state to pay more for the domestic harvest"},"content":{"rendered":"

<\/a> Shipments of Black Sea wheat are on their way to Egypt:<\/strong> Several cargoes totaling 189k tonnes of Ukrainian, Russian and Romanian wheat are on their way to Egypt even as the war in Ukraine continues to disrupt commercial shipping in the Black Sea. Egypt will receive 63k tonnes of wheat from each country in the coming days, the Supply Ministry said in a statement<\/a> yesterday, helping to shore up the country\u2019s reserves amid a supply shock caused by the conflict.<\/p>\n

That\u2019s not all:<\/strong> Egypt received 126k tonnes of French and Romanian wheat last week, the ministry said.<\/p>\n

The latest shipments have made it out of port despite Russia\u2019s invasion of Ukraine:<\/strong> The conflict is causing serious disruption to exports from the two countries, which supply around a third of the world\u2019s supply of wheat and around 80% of Egypt\u2019s grain imports. The ministry didn\u2019t disclose which ports the shipments have departed from.<\/p>\n

Signs of normalization?<\/strong> Russia seems to be easing restrictions on commercial traffic in the Black Sea and has in recent days allowed 30 ships carrying grains to depart Russian ports, Bloomberg<\/a> reported last week, citing Interfax. Moscow had closed the sea of Azov to commercial ships after it launched its invasion of Ukraine, preventing the export of grains and other commodities from its Azov port.<\/p>\n

Conflicting signals?<\/strong> Ukraine was reported last Wednesday to have banned the export of wheat<\/a>, oats and other staples. The same day, Canada\u2019s Globe and Mail<\/a> quoted the head of the country\u2019s grain association as confirming reports the country would move wheat by rail to neighboring countries<\/a> including Romania, Hungary, Slovakia and Poland. The country reportedly has 20 mn tons of wheat and corn in storage. It closed its Black Sea ports<\/a> to commercial ships after the conflict broke out and has said they will remain closed<\/a> as long as the fighting continues.<\/p>\n

The shipments are good news for Egypt: <\/strong>State grains buyer GASC had canceled two tenders<\/a> in the early days of the war amid spiraling prices and was reported by Reuters<\/a> to have agreed to an extended shipment deadline for at least one of several cargoes reportedly stuck in Ukraine at the start of March. It is also said to be offering more flexibility over documentation. Two cargoes carrying 120k tonnes of wheat had been stuck in port in the Black Sea as of 4 March.<\/p>\n

The gov\u2019t is working several angles to shore up food security as war continues in Easter <\/strong>Europe:<\/strong> It is looking to up its production of local wheat, has banned the export of staple foods<\/a> for three months, and is trying to diversify supply<\/a> away from the embattled Black Sea region. The country currently has enough wheat in reserve to sustain it for 4.5 months and the local harvest should provide another four months of supply.<\/p>\n

The fiscal impact is going to be significant:<\/strong> The Finance Ministry expects soaring wheat prices to add up to EGP 15 bn<\/a> to its import bill this fiscal year and is already rethinking its fiscal targets<\/a> as a result. Global wheat prices have surged 48% over the past two weeks, adding more than USD 100 to the price<\/a> per ton and sending local bread prices soaring<\/a>.<\/p>\n

But upping local wheat will also come with a price:<\/strong> Faced with surging fertilizer prices and rising labor costs, local farmers are calling on the government to raise local wheat prices by 22% in order for them to meet production targets, Farmers\u2019 Syndicate head Hussein Abu Saddam told Bloomberg Asharq<\/a>. The syndicate wants the government to purchase wheat for EGP 1k per ardib, up from EGP 820, to help the domestic industry cope with inflation.<\/p>\n

The gov\u2019t already hiked prices by 13% from last year: <\/strong>The supply, agriculture and finance ministries raised prices<\/a> to EGP 800-820 per ardib ahead of this year\u2019s planting season in response to decade-high wheat prices in the global market \u2014 and that was before Russia\u2019s war effectively suspended 30% of the world\u2019s wheat supply. \u201cThe price offered by the government is not appropriate. Everything has increased in price, from fertilizers to equipment to the cost of labor, so why only the price of wheat remains the same,\u201d one farmer told the newspaper.<\/p>\n

Farmers warn that if the price isn\u2019t right, they won\u2019t produce enough to meet the <\/strong>government\u2019s ambitious target: <\/strong>The Supply Ministry hiked local purchase targets<\/a> to 5.5 mn tonnes at the war\u2019s outset from an earlier 4 mn tons. The move is meant to shore up reserves, but the syndicate is warning that it will not be able to meet this unless the state offers better pricing. \u201cIf the government doesn\u2019t raise prices, it won\u2019t be able to collect even 3 mn tonnes of wheat\u201d this season, Abu Saddam told Asharq.<\/p>\n

Incentives are in the works:<\/strong> Adding details to incentives signposted last week<\/a>, the government will try to help out farmers by upping its supply of fertilizer and speeding up transactions, Deputy Agriculture Minister Mohamed El Kersh said in a phone-in with Kelma Akhira\u2019s Lamees El Hadidi (watch, runtime 4:23<\/a>). The ministry also wants to allocate another 800k acres of agricultural land to cultivating wheat, he said.<\/p>\n

But it is unclear whether it is willing to negotiate on prices:<\/strong> \u201cSo far, there are no signs that the government will increase the price of wheat,\u201d another farmer said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shipments of Black Sea wheat are on their way to Egypt: Several cargoes totaling 189k tonnes of Ukrainian, Russian and Romanian wheat are on their way to Egypt even as the war in Ukraine continues to disrupt commercial shipping in the Black Sea. Egypt will receive 63k tonnes of wheat from each country in the […]<\/p>\n","protected":false},"author":1,"featured_media":544627,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7305],"tags":[317,72,1095,563],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-544626","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commodities","tag-commodities","tag-enterpriseam","tag-russia-ukraine-war","tag-wheat","wpautop","entry"],"acf":{"mongo_id":"ee61f6b6-d6df-4fa9-b38b-2964b7f8589a","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/3\/160.jpg","photo_position":"above","related_issue":[544622],"teaser":"","voice_url":""},"yoast_head":"\nWe\u2019re getting wheat from Ukraine, Russia and Romania within days \u2014 and local farmers are pushing the state to pay more for the domestic harvest - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/03\/14\/were-getting-wheat-from-ukraine-russia-and-romania-within-days-and-local-farmers-are-pushing-the-state-to-pay-more-for-the-domestic-harvest\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"We\u2019re getting wheat from Ukraine, Russia and Romania within days \u2014 and local farmers are pushing the state to pay more for the domestic harvest\" \/>\n<meta property=\"og:description\" content=\"Shipments of Black Sea wheat are on their way to Egypt: Several cargoes totaling 189k tonnes of Ukrainian, Russian and Romanian wheat are on their way to Egypt even as the war in Ukraine continues to disrupt commercial shipping in the Black Sea. 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No details were given on the price paid in the private-sector purchase, which comes less than\u2026","rel":"","context":"In "Commodities"","block_context":{"text":"Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/4\/357.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":643132,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/08\/30\/gasc-purchases-295k-tonnes-of-russian-romanian-wheat\/","url_meta":{"origin":544626,"position":1},"title":"GASC purchases 295k tonnes of Russian, Romanian wheat","author":"enterpriseam admin","date":"30 August 2017","format":false,"excerpt":"The General Authority for Supply Commodities (GASC) purchased 295k tonnes of wheat yesterday, of which 235k tonnes came from Russia and 60k tonnes from Ukraine, Reuters reports. The lowest offer GASC received in the tender was USD 186.05 per tonne free-on-board (FOB) for 60k tonnes of Russian wheat, traders tell\u2026","rel":"","context":"In "Basic Materials + Commodities"","block_context":{"text":"Basic Materials + Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/basic-materials-commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":637802,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/11\/26\/black-sea-wheat-displacing-australian-shipments-to-egypt\/","url_meta":{"origin":544626,"position":2},"title":"Black Sea wheat displacing Australian shipments to Egypt","author":"enterpriseam admin","date":"26 November 2017","format":false,"excerpt":"Shipments of Australian wheat to Egypt in the season ending 30 September of this year recorded only 145.8k tonnes, The Weekly Times reports. \u201cEgyptian imports of Australian wheat peaked at 2.76 mn tonnes in 2003-04 and shipments ranged from 245,000 tonnes to 1.47 mn tonnes since then\u2026 CBH Group\u2019s general\u2026","rel":"","context":"In "Basic Materials + Commodities"","block_context":{"text":"Basic Materials + Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/basic-materials-commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":572323,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/06\/21\/egypts-gasc-purchases-240k-tonnes-of-wheat\/","url_meta":{"origin":544626,"position":3},"title":"Egypt\u2019s GASC purchases 240k tonnes of wheat","author":"enterpriseam admin","date":"21 June 2020","format":false,"excerpt":"The General Authority for Supply Commodities (GASC) purchased 240k tonnes of wheat on Thursday from Russia, Romania, and Ukraine, according to Reuters. By our calculations, the Thursday purchase will bring Egypt\u2019s total wheat imports to 840k tonnes, which is higher than the country\u2019s 800k tonne target. Egypt has also purchased\u2026","rel":"","context":"In "Basic Materials + Commodities"","block_context":{"text":"Basic Materials + Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/basic-materials-commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":571880,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/06\/03\/egypt-purchases-120k-tonnes-of-ukranian-wheat-in-third-intl-tender-of-local-harvest-season\/","url_meta":{"origin":544626,"position":4},"title":"Egypt purchases 120k tonnes of Ukranian wheat in third int\u2019l tender of local harvest season","author":"enterpriseam admin","date":"3 June 2020","format":false,"excerpt":"GASC purchases 120k tonnes of Ukranian wheat in third int\u2019l tender of local harvest season: State grain buyer GASC, the world\u2019s largest grain buyer, has purchased 120k tonnes of wheat from Ukraine in its third global wheat tender during the 2020-21 local harvest season, including 60k tonnes at USD 210\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/6\/26.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":544982,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/03\/30\/our-wheat-imports-could-hit-a-nine-year-low-because-of-russia-ukraine\/","url_meta":{"origin":544626,"position":5},"title":"Our wheat imports could hit a nine-year low because of Russia + Ukraine","author":"enterpriseam admin","date":"30 March 2022","format":false,"excerpt":"Egypt\u2019s wheat imports in marketing year (MY) 2022-2023 are expected to drop to their lowest in nine years as the Russia-Ukraine war cuts two of our biggest suppliers off from the export market, the US Foreign Agricultural Service (FAS) said in a report (pdf). Wheat imports are expected to drop\u2026","rel":"","context":"In "Commodities"","block_context":{"text":"Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/3\/699.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/544626","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=544626"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/544626\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/544622"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/544627"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=544626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=544626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=544626"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=544626"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=544626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}