Egypt is strategizing to reduce its wheat imports and lower expenditures on subsidized bread by incorporating corn or sorghum into the bread-making process. Sources indicate that these measures could save the government millions of dollars, but they face pushback from bakers and millers concerned about potential financial losses and declines in bread quality.
Key points include:
The supply ministry plans to mix corn flour with wheat flour at a 1:4 ratio starting in April 2025, aiming to save about one million metric tons of wheat.
The government previously abandoned a plan to increase the flour extraction rate for subsidized bread due to industry resistance.
Egypt relies heavily on imported wheat, primarily from Russia, and spends approximately $2.1 billion annually on imports.
The introduction of corn flour could potentially save the government around $35-41 per ton, depending on whether locally grown or imported corn is used.
The proposed changes might alter the texture and smell of the bread, which could be unpopular among consumers.
Egypt’s annual wheat requirement for subsidized bread is around 8.25 million tons, with local production supplying 3.5 million tons. In addition to corn, the government is also considering using cheaper sorghum flour, although this idea has met with resistance from the baking industry due to increased baking times and labor costs.