Egypt, the world’s biggest wheat importer is planning to tighten and improve its storage and logistic links within its grain supply chain as a means of lowering import costs and increasing food security. To achieve these goals through improved yields is not feasible due to a lack of arable land and water. Egypt imports 10 million tons of the 15 million to 20 million tons of wheat the country consumes annually making it the world’s top importer. The bulk of the $4.6 billion that the government spends per year on food imports goes toward the purchase of grain and it is believed that Egypt losses between 1 million and 1.6 million tons of wheat worth $500 million to post-harvest losses annually. The government has previously pushed farmers to increase output but weather, market prices, input and labor costs, urbanization, and a lack of water have hindered this expansion. To combat this, nine new silos with a capacity of 45,000 tons are being constructed at the port of Alexandria and 18 more are scheduled to be completed by June of 2015. In 2013 Egypt scaled back its buying on the international market however, as a more stable political situation takes hold, the country is returning to the market in a wider sense than before. The country is considering easing its 13% moisture content restrictions which would allow for imports from France, once one of Egypt’s leading suppliers, which typically has a moisture content of 13.5%.
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