World Grain - September 2021 - 22

COUNTRY FOCUS
KEY FACTS
FOCUS ON
EGYPT
Large-scale importer looking to
increase agricultural production
by Chris Lyddon
Egypt has a large and growing population, and its production
of grains and oilseeds falls well short of its food needs, making
large-scale imports necessary. It continues to run a bread subsidy
scheme, with loaves provided to much of the population at prices
well below the cost of production. At the same time, the Egyptian
authorities are working to increase agricultural output, notably by
focusing on increasing the uptake of new, higher yielding varieties,
while providing information on best practices to the country's
farmers.
According to the International Grains Council (IGC), Egypt's
total grains production in 2021-22 will be 16.9 million tonnes,
unchanged from 2020-21. Production of wheat is put at 8.9 million
tonnes, also unchanged. The country's maize crop is estimated
at 7.1 million tonnes, again the same as the previous year.
Egypt also is estimated to have produced 700,000 tonnes of sorghum,
the same as in 2020-21.
Egypt's total grains imports in 2021-22 are forecast at 23.8
million tonnes, up from 22.9 million the year before.
Imports
of wheat are put at 13.2 million tonnes, up from 12.8 million
the previous year. The country also is expected to
import 10.4 million tonnes of maize, up from
10.2 million in 2020-21. The IGC's projection
for rice production in 202122
is 3.5 million tonnes, revised
down in July from the previous
forecast of 4 million. Rice imports
in 2020-21 were 4 million
tonnes.
Egypt is forecast to import
4.6 million tonnes of soybeans
in 2021-22, revised
down from 4.7 million.
Soybean imports in 2020-21
were 4.5 million tonnes.
The USDA attaché
explained
in an annual report on
the grains sector dated March 17,
2021, that " wheat production in
Egypt has improved through the de22
Capital:
Cairo
Population: 106,437,241 (July 2021 est.)
Religions: Muslim (predominantly Sunni) 90%,
Christian (majority Coptic Orthodox, other Christians
include Armenian Apostolic, Catholic, Maronite,
Orthodox, and Anglican) 10% (2015 est.).
Location: Northern Africa, bordering the Mediterranean
Sea, between Libya and the Gaza
Strip, and the Red Sea north of Sudan, and includes
the Asian Sinai Peninsula.
Government: Presidential republic. Chief of
state: President Abdelfattah Elsisi (since June 8,
2014); head of government: Prime Minister Mostafa
Madbouly (since June 7, 2018).
Economy: Occupying the northeast corner of
the African continent, Egypt is bisected by the
highly fertile Nile Valley where most economic
activity takes place. Egypt's economy was highly
centralized during the rule of former President
Gamal Abdel Nasser but opened up considerably
under former Presidents Anwar El-Sadat
and Mohamed Hosni Mubarak. Agriculture, hydrocarbons,
manufacturing, tourism, and other
service sectors drove the country's relatively diverse
economic activity. Despite Egypt's mixed
record for attracting foreign investment over the
past two decades, poor living conditions and
limited job opportunities have contributed to
public discontent. These socioeconomic pressures
were a major factor leading to the January
2011 revolution that ousted Mubarak. The
uncertain political, security, and policy environment
since 2011 has restricted economic growth
and failed to alleviate persistent unemployment,
especially among the young. In late 2016, persistent
dollar shortages and waning aid from
its Gulf allies led Cairo to turn to the IMF for a
three-year, $12 billion loan program. To secure
the deal, Cairo floated its currency, introduced
new taxes, and cut energy subsidies - all of
which pushed inflation above 30% for most of
2017, a high that had not been seen in a generation.
Since the currency float, foreign investment
in Egypt's high interest treasury bills has risen exponentially,
boosting both dollar availability and
central bank reserves. Cairo will be challenged
to obtain foreign and local investment in manufacturing
and other sectors without a sustained
effort to implement a range of business reforms.
GDP per capita: $11,763 (2019 est.); inflation:
9.3% (2019 est.); unemployment: 7.86% (2019
est.).
Currency: Egyptian pounds (EGP): 15.69 pounds
equal 1 US dollar (Aug. 23, 2021).
Exports: $87.891 billion (2018 est.): crude petroleum,
refined petroleum, gold, natural gas, fertilizers
(2019).
Imports: $115.345 billion (2018 est.): refined
petroleum, wheat, crude petroleum, cars, packaged
medicines (2019).
Agriculture: 11.7% (2017 est.) of GDP and 25.8%
of the labor force.
Internet: Code: .eg; 46,644,728 users.
Source: CIA World Factbook
September 2021 / World Grain / World-Grain.com
http://www.World-Grain.com
World Grain - September 2021

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