Egypt's Bold Bread Reform: Cutting Costs with Corn and Sorghum

Egypt plans to cut wheat imports and reduce subsidies by using corn or sorghum in bread production. This move, aimed at easing fiscal pressures, faces resistance from bakers and millers concerned about quality. The strategy could save millions, especially if locally sourced corn is used.

Egypt is proactively addressing its fiscal challenges by devising plans to reduce its dependency on wheat imports for bread production. By integrating corn or sorghum as alternative ingredients, the government aims to save millions of dollars in subsidies, according to five industry insiders briefed on the new proposals.

The plan, presented by Egypt's supply ministry, intends to introduce a 1:4 corn-to-wheat flour mix starting in April 2025. This change could result in saving approximately one million metric tons of wheat annually, as revealed by baking industry sources. Resistance remains among bakers and millers due to potential impacts on product quality and financial ramifications.

Historically reliant on Russian wheat, Egypt is exploring alternatives amid rising debts and foreign currency shortages. The push for changes comes as President Abdel Fattah al-Sisi actively seeks to obtain favorable wheat pricing through large-scale tenders and strategic direct purchases.

(With inputs from agencies.)