Officials from the Principal Bank for Development and Agriculture Credit (PBDAC) and the Egyptian Holding Company for Silos and Storage (EHCSS) have signed an agreement, in which the EHCSS will make use of the bank’s land as an agricultural stock to store wheat and grains.
According to a report by the cabinet, Sunday afternoon, in the presence of Prime Minister Ibrahim Mehleb, a joint stock company will be established between PBDAC, including its two branches in Upper Egypt and the Nile Delta, and EHCSS.
The agreement aims to exploit several lands owned by PBDAC, for agricultural storage of wheat and grains all over the country. The agreement also aims to make use of technical experience and complete familiarity with this field in order to develop this store and establish modern storage units to prevent the store from damage or being directly exposed to adverse weather conditions, insects or rodents.
According to the statement, the agreement contributes to achieving the government’s goal in converting Egypt into a logistics centre for grain storing and trading, as well as practicing logistics and value-added activities, like manufacturing grains and strategic food products. This is in order to achieve food security for countries of the region and supporting small farmers through enhancing the competitive capabilities.
Egypt imports more than 10m tonnes of wheat annually. The government imports most of them, as the biggest wheat importer worldwide.
The plan of the logistic centre, one of several major projects the government has announced, aims to convert Egypt into a centre for treating and re-exporting millions of tonnes of wheat, soy bean, sugar and other products, through building a new port. The plan also includes launching the first commodities exchange in the region.