Impact of Procurement Changes

Egypt’s recent changes in its wheat procurement system have made tracking a significant portion of global grain trade much more challenging. Traditionally, traders relied on public tenders held by the General Authority for Supply Commodities (GASC) to gather information about volumes, prices, and origins of wheat purchased. However, with the Mostakbal Misr Sustainable Development Agency now handling procurement, such transparency has vanished.

The newly appointed agency, established in 2020, lacks a track record in the wheat market, raising concerns among traders about its ability to meet Egypt’s grain needs effectively.

Direct Agreements Over Public Tenders

Unlike GASC’s open tenders, Mostakbal Misr has opted for direct supply agreements, including barter deals. While these agreements aim to diversify Egypt’s food imports, they have left traders uncertain about purchase details. Recent reports indicate that 28,000 tonnes of Russian wheat arrived in Egypt in December 2024, with an additional 33,000 tonnes booked privately in January 2025. However, no further details about pricing or terms of these deals have been disclosed.

Egypt’s Reliance on Russian Grain

Egypt remains one of the world’s largest importers of Russian wheat, sourcing 74.3% of its total wheat imports from the Russian Federation in 2024. Out of 14.7 million tonnes of wheat purchased globally, Russia supplied a substantial share, highlighting its dominance in Egypt’s grain trade.

In the 2023/24 marketing year, GASC procured:

• 4.1 million tonnes from Russia,
• 780,000 tonnes from Romania,
• 360,000 tonnes from Ukraine,
• 200,000 tonnes from Bulgaria,
• 180,000 tonnes from France,
• 55,000 tonnes from other sources.

Concerns Among Traders

Traders worry that Mostakbal Misr’s inexperience in managing large-scale grain purchases could affect Egypt’s ability to secure consistent supplies. For instance, an earlier attempt by the agency to finalize direct supply agreements reportedly failed due to unclear terms of sale.

Conclusion

Egypt’s shift from public tenders to direct agreements through Mostakbal Misr has complicated transparency in the global grain trade. While the agency has begun securing supplies from European exporters, its lack of experience and opacity in transactions raise questions about Egypt’s future procurement strategies. Given Egypt’s critical role as a major wheat importer, the changes could have far-reaching implications for global grain markets.





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