1

The Egyptian Agricultural Commodities

Market: An Outline

X International Conference

Black Sea Grain – 2013

Kiev, Ukraine

By

Amr Abdelkader Kassem

Imports

21

million tons

2

Wheat

3

Wheat

4

Consumption

19 million tons

Domestic production

8 million tons

Imports

11 million tons

Wheat

Origins of imported wheat

90% from

Russia – Ukraine – USA – France - Australia

5

2012 2009

Russia 48% 53%

Ukraine 22% 6%

USA 8% 8%

France 6% 17%

Australia 5% 6%

Other 11% 10%

Wheat

Why Black Sea wheat?

Price / Quality value

Proximity

6

Wheat

7

Importers

GASC

47%

Private importers/millers

53%

Wheat

GASC

The General Authority for Supply Commodities

8

Grain Purchases

Wheat Imports

≈ 5,250,000 mts

Domestic Wheat crop purchases

≈ 3,600,000 mts

Domestic Corn crop purchases

≈ 500,000 mts

Corn

9

Corn

10

Consumption

11 million tons

Domestic production

5 million tons

Imports

6 million tons

Corn

Origins

95% from

Ukraine - Brazil - Argentina - USA

11

2007 2011 2012

Ukraine 3% 28% 47%

Brazil 0% 6% 30%

Argentina 16% 17% 15%

USA 80% 41% 3%

Other 1% 8% 5%

Corn

12

Importers

100%

Private Trading Companies

Soybeans and Meal

13

Soybeans and Meal

14

Supply

2.8 million tons

Domestic crop Soybeans

30,000 mts

Imports

Meal

850,000 mts

Imports

Soybeans

1.9 million tons

Soybeans and Meal

Origins

15

Soybean Meal

2012

North America 52%

South America 39%

Black Sea 9%

Soybeans

2012

North Amercia 78%

South Amercia 14%

Ukraine 8%

Soybeans and Meal

16

Importers

100%

Private Crushers

Private Trading Companies

Importers of Grains and Oilseeds

20 million tons of imports !

80% imported by 8 companies/entities

20% imported by over 25 companies

17

Importers of Grains and Oilseeds

Main Purchasing Terms

1)Quality

- GASC

- Private buyers

2) Delivery

- FOB

- CIF

- C+F

18

Importers of Grains and Oilseeds

Main Purchasing Terms

3) Payment

- L/Cs

- CAD before breaking bulk

- CMA deferred payment

- SMA deferred payment

- Other deferred payment schemes

19

Import Regulations

Grain in Egyptian ports in inspected by the

following inspection government agency:

- The Ministry of Agriculture

- The Ministry of Health

- The Ministry of Industry and Foreign Trade

- The Egyptian Atomic Energy Authority

20

Import Regulations

REJECTION

Wheat

1) Grass seeds

- Lolium temulentum:

Darnel ryegrass or cockle.

- Convolvulus arvensis L. :

Field bindweed

- Avena fatua L. :

Wild oat

-Ambrosia artemisiifolia,:

Common Ragweed

21

Import Regulations

REJECTION

Wheat

2) Dead Insects

Some species are not allowed dead or alive

3) Live Insects

Live insects are not allowed

22

Import Regulations

REJECTION

Corn

1) Aflatoxin:

Max 20 ppb total Aflatoxin

Max 10 ppb B1 + B2 Aflatoxin

2) Broken:

Max 5%

3) Heat Damaged:

Max 0.5%

23

Import Regulations

REJECTION

Soybeans

Ambrosia:

Zero tolerance, free from.

24

Import Regulations

REJECTION

DELEGATIONS

25

Vegetable Oils

26

Vegetable Oils

27

Supply

2.1 million tons

Crush Domestic

Oilseeds

50,000 mts

Crush Imported

Soybeans

250,000 mts

Imports

Vegetable Oil

1.8 million tons

Vegetable Oils

28

Importers

GASC

(FIHC/Meditrade)

975,000 mts

Sunoil

800,000 mts

Soyoil

175,000 mts

Cornoil

0.00 mts

Palm

0.00 mts

Private Oil Refiners

835,000 mts

Sunoil

125,000 mts

Soyoil

0.00 mts

Cornoil

59,000 mts

Palm

651,000 mts

Imports of Vegetable Oils

Types of Oils

29

2012

Sunflower Oil 925,000 51.1%

Palm Oil 540,000 29.8%

Corn Oil 59,000 3.3%

Palm Stearin 47,000 2.6%

Palm Olein 42,000 2.3%

Soybean Oil 175,000 9.7%

Palm Kernel Oil 19,000 1.0%

Coconut Oil 3,000 0.2%

Total 1,810,000 mts

Imports of Vegetable Oils

Types of Oils

30

2012 2006

Sunflower Oil 925,000 307,000

Palm Oil 540,000 345,000

Corn Oil 59,000 15,000

Palm Stearin 47,000 109,000

Palm Olein 42,000 330,000

Soybean Oil 175,000 191,000

PKO + Coco 22,000 29,000

Total 1,810,000 1,326,000 mts

Ports

31

32

Ports

33

Dekheila and Alexandria ports

34

Alexandria – Mediterranean Port

35

Alexandria – Mediterranean Port Port

Grain:

- Storage capacity: 150,00 mts

- Berths draft: max. 32 feet

Vegoils:

- Storage capacity : 72,000 mts

- Berths draft: max. 34 feet

36

Alexandria – FIC Terminal

37

Dekheila – Mediterranean Port

38

Dekheila – Mediterranean Port

Grain:

- Storage capacity: 1.55 million tons

- Berth draft: max. 44 feet

Vegoils:

- Storage capacity: 17,000 mts

- Berth draft: 39 feet

39

Abu Qir – Mediterranean Port

40

Abu Qir – Mediterranean Port

Grain:

- Storage capacity: 80,000 mts

- Berths draft: max 8 meter

Vegoils:

- None

41

Damietta – Mediterranean Port

42

Damietta – Mediterranean Port

Grain:

- Storage capacity: 700,000 mts

- Berth draft: max 42 feet

Vegoils:

- Storage capacity: 80,000 mts

- Berth drafts: max. 38 feet

43

Port Said – Mediterranean Port

44

Port Said – Mediterranean Port

Grain:

- Storage capacity: 85,000 mts

- Berth draft: max. 42 feet

Vegoils:

None

45

Adabiya – Red Sea Port

46

Adabiya – Red Sea Port

Grain:

- Storage capacity: 150,000 mts

- Berths draft: max. 41 feet

Vegoils:

- Storage capacity: 110,000

- Berths draft: max 37.5 feet

47

Safaga – Red Sea Port

48

Safaga – Red Sea Port

Grain:

- Storage capacity: 150,000 mts.

- Berths draft: max. 44 feet

Vegoils:

None

49

Egypt – Key Data

Key relevant data:

Egypt land area: 997,739 sq. km

Arable land area: 3%

Population: 82 million

Urban Population: 43%

Population growth: 2 %

Population forecast in 2035: 100 million

50

Sources and Acknowledgments

LATT TRADING AND SHIPPING™

THE EGYPTIAN MINISTRY OF TRANSP0RT

Maritime Transport Sector

UNITED OIL For Processing and Packaging

10th

of Ramadan City - Egypt

The Central Agency for Public Mobilization

and Statistics (CAPMAS) Egypt