São Paulo – The Egyptian minister of International Cooperation, Fayza Abul Naga, said last Friday (2nd), during a meeting at the Arab Brazilian Chamber of Commerce, in the city of São Paulo, that her country needs to build 25 new silos for storing grain, in order to reduce food wastage.
According to her, Egypt imports 8.5 million tonnes of wheat per year and is the leading importer of the product in the world. From 20% to 25% of that total, however, gets lost in transportation and inadequate storage. Brazil has the same problem, but average grain loss is around 10%, according to the trade director of silo manufacturing company Kepler Weber, Wilfried Toth, who attended the meeting.
In order to reduce the waste, the Egyptian government commissioned a study that showed the need for building 50 silos, 25 of which have already been built. It is up to the Ministry of International Cooperation to obtain financing to build the silos, because according to the minister, the private sector in the country has no interest in investing in the sector.
Toth said that Kepler Weber seeks to export from 30% to 35% of its output, and that 90% of said exports go to other Latin American countries, with the remaining 10% being sold to other parts of the world, particularly to Arab nations. The company has sold equipment to the United Arab Emirates, Syria and to Egypt itself.
The executive also stated that the Brazilian Development Bank (BNDES) has lines of credit to finance exports by Brazilian companies, and that the bank holds a seat on the company’s managing board. The minister requested further information on products, prices and financing conditions.
Toth also said that the company, headquartered in the state of Rio Grande do Sul, has developed a type of silo for small farmers. Agriculture in Egypt is mostly done in small-sized properties. According to the director, adequate storage enables farmers to preserve the grain and then sell when pricing is more favourable.
*Translated by Gabriel Pomerancblum
