Dubai: UAE-based agribusiness Al Dahra and Abu Dhabi Exports Office (ADEX) have signed a $500 million deal to supply wheat to Egypt.
The five-year agreement, worth $100 million per year, will provide Egypt with a steady supply of high-quality imported milling wheat, a statement said on Tuesday.
“This agreement solidifies our commitment in establishing long term supply deals with key producers across the world, so that the people of Egypt have access to essential food supplies and strengthening our food grain supply chain buffer to withstand any unexpected shocks in the global markets,” said HE Dr. Ali Al-Moselhy, Egypt’s Minister for Supply and Internal Trade
“The low-cost financing package from ADEX helps us procure high quality wheat at the lowest cost financing available, with comfortable payment terms.”
Al Dahra already farms 28 thousand hectares in Egypt. It is the largest private sector producer of wheat and corn in Egypt in addition to the production of onions, sugar beet, sesame, citrus, sorghum as well as forage for the livestock. Nearly 85 per cent of all produce from Al Dahra’s Egyptian farms are supplied locally.
Globally, Al Dahra’s production output of grains and oilseeds is approximately 600 thousand tonnes.
“This agreement highlights our commitment to food security in the countries we operate in and complements our efforts from our farms in Egypt,” said Arnoud van den Berg, Group CEO of Al Dahra. “Over the past 3 years, our farms in Egypt have supplied over 180 thousand tons of wheat at the prevailing local market price making us the largest local private sector supplier of Egyptian wheat to the General Authority for Supply Commodities (GASC).”
