GRAIN IMPORTATIONS INTO EGYPT - Global Grain Events 2013/Grain_Importations_in… · energetic...
Transcript of GRAIN IMPORTATIONS INTO EGYPT - Global Grain Events 2013/Grain_Importations_in… · energetic...
GRAIN IMPORTATIONS INTO EGYPT OVERALL SITUATION AND A VIEW OF LOGISTICS,
QUALITY REQUIREMENTS AND RISKS
Sherif FAKHRY
SGS Egypt, Agricultural Services Manager
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EGYPT AND GRAINS
Bread was the most important part of the ancient Egyptian
diet. There was no rice, maize or potatoes at that time
those commodities were only introduced into the country
thousands of years later.
The early Egyptians depended on wheat and barley to
provide the carbohydrates they needed for a healthy,
energetic lifestyle.
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Production in Egypt is assessed under
irrigated conditions
PRODUCTION AREAS IN EGYPT CLASSIFIED
BY FAO
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PRODUCTION DATA OF WHEAT IN EGYPT
2012-2013
Ministry of Agriculture experts declared that planted area in
MY 2012/13 increased slightly compared to last year due
to the increase of procurement prices offered to the
farmers this year.
According to the government official statistics, wheat
production has increased significantly from 7.2 MMT in MY
2010/11 to about 8.4 MMT in MY 2011/12 due to favorable
climatic conditions. Production for MY 2012/13 is
estimated to be around 9 - 9.3 MMT given the again
favorable conditions for this year.
However, many experts, traders, and consumers believe
that this production figure may be overestimated.
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PRODUCTION DATA OF CORN IN EGYPT 2012-
2013
Egypt’s corn production is forecasted to reach 6.5 MMT in
MY 2013/14, lower than the MY 2012/13 level of 7MMT.
With the declining value of the Egyptian pound, corn prices
are likely to increase, making the crop more attractive to
farmers. However, yields and production will be restrained
by the expected increase in fertilizer prices, as well
potential shortages and high prices for pesticides.
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PRODUCTION DATA OF RICE IN EGYPT 2012-
2013
Rice is Egypt’s second most important export crop, after
cotton.
Total area harvested and production is to remain stable in
MY2012/2013. The 13-15 percent increase in paddy rice
prices and a similar percentage increase in retailer prices
will encourage farmers to maintain the same planted area
in the upcoming season.
Production of medium grain rice reached 6.7 MMT with 1.1
MMT for exportation.
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SUMMARY GRAINS 2012-2013
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GRAIN FORECAST OF
IMPORTS
DURING
2013/14
ORIGINS OF MAIN
IMPORTS
WHEAT 7.5 MMT Black Sea
Eastern Europe
USA
France
CORN 6.5 MMT Black Sea
Eastern Europe
USA
RICE 0.34MMT India
Pakistan
Russia
GRAIN IMPORTS DURING 2013
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MAIN IMPORTERS IN COUNTRY
Wheat:
Governmental sector
(GASC) 60%.
Private sector 40%.
Corn:
Private sector 100%.
Rest of Grains:
e.g Rice, Soybean,
Barely….
Total by private sector.
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KEY PORTS AND TERMINALS
12 commercial ports.
Among them, the most
important grain handling
ports are Alexandria which
is the biggest port in Egypt;
Dekheila Port is a natural
extention to Alexandria Port
and Abuqir east port.
Damietta Port which has the
largest container terminal
and most sophisticated
grain and container handling
equipment in the Middle
East.
PortSaid and Suez at both
ends of the Suez canal.
Safaga on the Red-Sea.
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Direct storage by
conveyors to Silos
Releases out of port
Majority of the grain handling is in Bulk
Storage in flat warehouses
TRANSPORTATION AND HANDLING OF GRAIN
IMPORTS
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Barges Trucks Railway
TRANSPORTATION AND HANDLING OF GRAIN
IMPORTS
QUALITY, PROCEDURES AND
DOCUMENTATION
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QUALITY ISSUES
Local crop issues in wheat
and corn:
Moisture can be high during
the harvest and supply.
Purity – Possible admixtures
and contamination.
Imported wheat issues:
Protein%
Moisture%
Ambrosia and
Bug damage.
Imported corn issues:
Aflatoxin
Broken%
Ambrosia
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PROCEDURE WHEN SHIPMENTS ARRIVE
Presentation of documents by vessel’s agent to the
authorities to gain approvals to berth.
Authorities (Ministry of Agriculture, ministry health and
general authority of import and export + central lab. of
feed, in case of Corn) board the vessel for sampling.
Analysis of the cargo is performed for Quality, Health and
Quarantine parameters.
In case of approval, discharge is then performed with
representative sampling by the Authorities.
In cases of Rejection: Vessel is turned away or discharged
under certain conditions depending on the issue.
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MAIN DOCUMENTS REQUESTED AT TIME OF
ARRIVAL
Original BLs or LOI.
Cargo Manifest.
Cargo Plan.
Certificate of Origin.
Invoice.
Importation approvals.
Phytosanitary certificate.
Original quality and
quantity certificates.
Fumigation certificates.
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GENERAL CHALLENGES
Farmers don’t always supply all quantities for the produced
wheat to the Government. Feeding to animals and local market
consumption can occur.
Insufficient storage facilities can result in loss and damage to the
grain.
Losses during discharges, transportations and logistics can
occur.
Decrease in the value of EGP in last 2 years makes importation
very expensive.
Instability and uncertain political conditions prevail.
Quality problems are common.
Subsidize or not …? The common question for the farmers.
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SGS ACTIVITIES IN EGYPT
Paper study to ministry to inspect local crop and issue quality
and quantity certificates.
Working on Crop Quality Map.
Closely work with farmer and NGOs to increase the awareness
and field knowledge with new high technology processes being
introduced into agriculture locally.
Quality and quantity inspection at both ends to be sure of the
specification and tonnages.
SGS management of weighbridges in 4 Egyptian ports to control
quantity with customs
Risk Management and solutions:
FOG and other guarantee services
CMA and SMA
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THANK YOU
To contact us :
www.sgs.com