November 21, 2006

Egypt's trade ministry buys 120,000 tonnes Kazakhstan wheat

Egypt's Ministry of Trade and Industry Monday (Nov 20) said it had signed a deal to import 120,000 tonnes of Kazakhstan wheat worth US$29 million in a barter deal.

The wheat will be delivered to Egypt in January and February 2007 in exchange for Egyptian pharmaceutical goods and carpets, a statement released by the ministry said.

Egypt could potentially import US$170 million worth of wheat annually in barter deals, Minister Rachid Mohamed Rachid said in the statement.

Egypt's need for wheat could be met through Kazakhstan's appetite for Egyptian goods such as pharmaceuticals, medical equipment, vegetables, fruits, furniture, textiles and ready-made garments, Rachid said.

Kazakhstan wheat is one of the best kinds of wheat when it comes to a high protein content, the minister added.

The deal comes after a presidential visit to Kazakhstan by Egyptian President Hosni Mubarak, as part of his Eurasian tour.

During that visit, Rachid said Nov 9 that Egypt would open the doors to wheat imports from landlocked Kazakhstan, pending discussions on suitable transportation methods.

Egypt consumes between 12 million and 13 million tonnes of wheat a year and imports about half of its needs. It is projected to be the world's largest importer of wheat in 2006/07.