World Grain - June 2005 - 16

countryfocus

Focus on Egypt
Reform and reclamation help
expand agricultural output

Key Facts

by Mario Sequeira

Agriculture in Egypt is confined to the northern Nile Delta
and a narrow strip along the Nile from Cairo to Aswan in the
south, because on either side of the Nile lie deserts. Arable
land thus comprises just 3% of the country's total land area
but ambitious plans are being implemented
to increase this to 25%. In 1997, a massive
multi-billion-dollar, 20-year project began to
reclaim desert land for agriculture and other
industries west of Lake Nasser in the south.
Called the New Valley project, it involves
building a massive pumping station to
pump water to a 300-km-long canal that
will stretch to the western border and
irrigate the land around it.
The pumping station, believed to
be the biggest of its kind in the world,
has been completed as has part of the
canal. Already, thousands of hectares are being cultivated to
grains, fruits and vegetables.
A similar land reclamation project is being undertaken in
the Sinai Peninsula in the northeast. According to the government, these massive projects will make an estimated 1.25
million hectares of desert land cultivatable.
This huge investment reveals agriculture's importance in
Egypt's economy. The sector accounts for 17% of Gross Domestic Product and 32% of the labor force.
Most Egyptian farms are small, irrigated and familyowned. The average farm size is 1.7 ha, but 50% cultivate
less than 1 ha. About 10% are bigger than 4 ha.
The most important crops are wheat, rice, maize, berseem
(or Egyptian clover), cotton, fruits and vegetables. Wheat
Data (1,000 tonnes)
Production
Wheat
6,630
Maize
5,780
Rice
6,046

Consumption
13,800
9,950
3,325

Exports
10
0
0

Imports
7500
4300
750

Wheat marketing year: July-June; Maize marketing year: Oct-Sept;
Rice marketing year: Jan-Dec
2004-05 marketing year* (estimates); Source: U.S. Department of Agriculture and reports

Capital: Cairo
Demography: Population 77.5 million, 1.78% growth rate
(2005); Languages include Arabic (official), English and French;
Predominantly Muslim religion, some Coptic Christians.
Geography: Northern Africa, bordering the Mediterranean
Sea, between Libya and the Gaza Strip, and the Red Sea
north of Sudan. Desert plateau surrounds Nile Valley and
delta; climate hot, dry summers with moderate winters.
Government: Republic. Chief of state is President Hosni
Mubarak; head of government is Prime Minister Ahmed
Mohammed Nazif.
Official agricultural agencies: Ministry of Agriculture
and Land Reclamation led by Ahmed el Laithy.
Economy: Significant economic reforms since 1991 have
helped expand the economy, but progress stalled somewhat
in the late 90s. Annual GDP growth has been restricted to
2-3% in the past few years. However, in 2004 Egypt implemented several measures to boost foreign direct investment,
including custom reforms, proposed income and corporate
tax reforms, reduction in energy subsidies and privatization
of enterprises. Agriculture is a vital part of the economy, accounting for 17% of GDP and employing 32% of the workforce. Reforms since 1987 and land reclamation have helped
increase agricultural production and improve farm incomes.
GDP per capita: U.S.$4,200; 4.5% growth rate; 9.5%
inflation; (2004).
Currency: Egypt pound. May 15, 2005 exchange rate:
5.81130 EGP = 1 U.S. dollar.
Exports: U.S.$11 billion (2004), crude oil and petroleum
products, cotton and textiles.
Imports: U.S.$19.2 billion (2004), machinery and equipment, foodstuffs and chemicals.
Major crops/agricultural products: Wheat, maize, rice,
sugarcane and cotton.
Wheat: Wheat per capita consumption level is one of the
highest in the world at 186 kilograms in 2004-05. Average
consumption for the past five years has averaged 13 million
tonnes annually. Production for the same period averaged
6.3 million tonnes.
Maize: Production for the past five years averaged 5.8 million
tonnes annually. Nearly all of this is used as livestock feed, with
additional tonnages required to be imported as feed. Imports
for the past five years averaged 4.5 million tonnes annually.
Rice: The five-year average production was 5.8 million
tonnes annually, ranging from 6 million tonnes estimated
for 2004-05 to 5.5 million tonnes in 2001-02.
Transportation: Highways, 64,000 km, 49,984 km
paved; railroads, 5,063 km, all 1.435-m gauge (1999);
Alexandria, Al Ghardaqah, Aswan, Asyut, Bur Safajah and
Port Said are major ports.
Internet: Country code, *eg; internet service providers 6;
2.7 million users (2003).
June 2005 / World Grain / www.World-Grain.com

http://www.World-Grain.com

World Grain - June 2005

Table of Contents for the Digital Edition of World Grain - June 2005