Cairo – The government of Egypt intends to expand the cultivation of oilseeds, such as maize and soybean, and foster the development of the local vegetable oil industry. Prime Minister Mostafa Madbouly held two days of meetings with officials from the Ministry of Agriculture and Land Reclamation (MOA) and the Ministry of Supply and Internal Trade (MSIT) on the matter. The goal is to safeguard the Egyptian market from spikes and price hikes for vegetable oils and animal feed inputs.
The Egyptian prime minister highlighted the government’s interest in formalizing harvest contracts for strategic crops, such as oilseeds, to ensure local demand is met. The Egyptian minister of Agriculture and Land Reclamation, Mohamed Sayed El-Quseir, said this system is already in place for three crops; wheat, sugarcane, and beetroot, and some production contracts have already been signed for maize and soybean.
Harvest contracts are instruments in which the government gives a price guarantee for essential crops before planting. In the event of a price drop in the local or international markets, the government will pay the gap to support and encourage farmers to expand and obtain financial returns.
El-Quseir suggested the General Authority For Supply Commodities (GASC), an entity affiliated with the MSIT, announce a price guarantee for maize, as it already did with wheat. However, there is an understanding it is necessary to create an entity to deal with harvest contract matters or imports to establish the essential balance in the markets and supply these products at reasonable prices.
The Prime Minister advised the price guarantee to be established for maize and soybean crops, provided the rates on the local commodity exchange are taken into account at the time of supply. Madbouly explained work is underway to set up an entity to supply the market with some feed at reasonable prices.
The Minister of Agriculture said the country is focused on growing cotton, soybean, and sunflower to produce vegetable oils. All three crops are oilseeds. The prime minister indicated that the government now seeks to boost the vegetable oil industry by expanding the oilseed harvest. The plan aims to increase the supply of products to citizens and make the industry’s development possible in Egypt.
Translated by Georgette Merkhan & Elúsio Brasileiro
