EGYPT, the world's largest importer of wheat, is scrambling to find alternative supplies after the Ukraine war disrupted its major source of grain.
Russia and Ukraine have dominated the lion's share of sales to Egypt over the past ten years, but now Egypt is casting the net further afield.
Official data showed Russia supplied around 50 per cent and Ukraine 30pc of Egyptian needs in recent years.
The Egyptian government is watching rising global wheat prices with concern as it places strain on its popular domestic food subsidy program.
The world's largest wheat tender, run by the Egyptian government agency the General Authority for Supply Commodities (GASC) is currently in turmoil, receiving no bids at its February tender for deliveries between April 13-26.
Leading multi-national wheat exporters that normally supply much of the product out of the Black Sea declined to place a bid at the tender, meaning Egypt is looking elsewhere for its product.
Ukrainian exports cannot be executed because of the war, while there is concern about shipping routes for Russian product even for those countries not sanctioning the nation.
In recent tenders there have been successful bids from France, which is a relatively frequent supplier of wheat to North Africa, but also the US, which is unusual.
Wheat prices have surged since the last tender.
Australia is one option for Egypt to look at for alternative supplies, but while our wheat is cheap on the world stage there is little export capacity to process new business until at least the end of April.
The Egyptian government is reported to be saying there is a five million tonne stockpile of wheat, enough to last for nine months, however traditionally markets have viewed claims regarding stocks with scepticism, believing stocks may be over-inflated as a bargaining tool.
Start the day with all the big news in agriculture! Sign up below to receive our daily Farmonline newsletter.
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
