According to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture, Egypt is expected to produce more wheat in 2024-25 as the government encourages an increased planted area and higher yields.
Production is estimated at 9.2 million tonnes, up from 8.87 million a year earlier.
The FAS said that High government procurement prices have also encouraged farmers to plant more wheat.
Wheat imports are estimated at 12.5 million tonnes, up 11.4% from the previous estimate but the same as 2023-24.
“The influx of foreign currency has contributed to a release of shipments held at ports and facilitated imports of essential commodities (including wheat) for both the public and private sectors,” the FAS said. “Moreover, the drop in international wheat prices has also contributed to both the private and public sectors seeking to maximize purchases on reduced prices.”
Egypt is a key wheat flour supplier to many African and Middle Eastern countries. The FAS said it has significantly expanded its wheat flour exports to the region as it continues to increase its milling capacity.
Sudan, Eritrea, Yemen, Somalia, Djibouti, Syria, the West Bank, and Gaza have been the top destinations for Egypt’s flour.
From January to May, Egypt increased its wheat flour exports by 250% compared to last year. The most significant increase was in Djibouti, Sudan, Somalia, the West Bank, and Gaza.
A primary reason is the Houthi attacks on vessels in the Red Sea, the Israel-Hamas crisis, and the crisis in Sudan.