Egypt, a key supplier of wheat flour to many African and Middle Eastern countries, has expanded its exports by leveraging increased milling capacity, competitive pricing, and geographic proximity to these markets, according to the latest country report from the United States Department of Agriculture (USDA).

The report highlights that between January and May 2024, Egypt increased its wheat flour exports by 250% compared to the same period in the previous year. Major export destinations included Djibouti, Sudan, Somalia, and the Palestinian Authorities (West Bank and Gaza). The surge in exports is largely attributed to regional crises which have disrupted supply chains and milling operations. 

Egypt Exports of Wheat Flour to the World (Source: Trade Data Monitor, Inc.)

“The largest increase in exports were to Djibouti, Sudan, Somalia, and the Palestinian Authorities (PA) (West Bank and Gaza). A primary reason for this increase in exporting to such destinations has been a result of the larger regional crisis—Houthi attacks on vessels in the Red Sea, the Israel-Hamas crisis, and the crisis in Sudan.” the report stated. “As many vessels began to avoid shipping through the Red Sea (starting around October 2023), many Egyptian traders chose to continue transiting through the Red Sea, as it was a shorter distance and had lower freight costs compared to other Black Sea vessels. As a result, Egypt was able to partial fill the gap for wheat flour exports to Eritrea, Djibouti, Yemen, and Somalia.” Furthermore, Egypt has increased its exports to the PA since the start of the Israel-Hamas crisis, as the PA sought to increase aid imports of staple commodities, such as wheat flour. Lastly, since April 2023, the crisis in Sudan has led to a large disruption in milling factories for wheat flour. As a result, Egyptian traders have been increasing their exports of wheat flour to Sudan to fill this gap. Egypt has more than 400 public, public/private, and private sector mills.

EGYPT TO IMPORT 12.5 MT OF WHEAT AS PRICES DECLINE

Egypt, the world's largest wheat importer, is projected to import 12.5 million tons of wheat in the 2024/25 season, according to the USDA. The recent influx of foreign currency has played a key role in the release of shipments previously held at ports, facilitating smoother imports for both the public and private sectors. Furthermore, the drop in international wheat prices has encouraged both sectors to capitalize on the reduced costs and increase their wheat purchases. The USDA also forecasts that Egypt's domestic wheat production will reach 9.2 million tons, while consumption is expected to total 20.6 million tons during the 2024/25 season.

Egypt Wheat Flour Exports to World (January 2023 – May 2023 vs. January 2024 – May 2024)
Source: Trade Data Monitor, Inc.