New grain storage system to save Egypt 'LE1 bn per year'

Egypt, the world's largest wheat importer, will develop a new grain storage system which it hopes will reduce by a quarter the amount of wheat wasted annually and ultimately improve the quality of subsidised bread, supply minister Khaled Hanafy announced on Thursday.

The agreement with Blumberg Grain is to replace 93 local wheat barns with food security technology and systems at a cost of $28 million (LE200 million).

The new storage system will save Egypt an estimated LE1 billion annually, the US-based global food security company said.

"When we look at (barns) what we see is 40 percent of harvest loss. This is due to crocks, rodents, pigeons and other pests that unfortunately attack the grains," David Blumberg, West Africa CEO at Blumberg, said at the press conference.

The Army Engineering Authority, Egyptian Holding Company for Silos and Storage and the supply ministry are collaborating with Blumberg Grain to complete the project by the next harvest season in April.