Egypt to save millions of dollars with new grain control center

Egypt is expected to save hundreds of millions of dollars annually thanks to a US-based food security company which has opened its state-of-the-art Grain Command and Control Center.

Blumberg Grain’s Command and Control Center will begin monitoring the country’s wheat inflows.

The US firm will process and monitor approximately a quarter of the country’s local crop for the first time as well as its imports.

This new system of storage will replace the dilapidated facilities, known as the Shounas, which are used to store the country’s locally grown wheat.

“From this facility, we’re able to monitor the 93 shouna that are being developed across the 20 governorates all throughout Egypt for the first phase of the shouna development project,” David Blumberg, CEO of Blumberg Grain said.

As part of efforts to ensure food security, the project is part of the government’s initiative and is categorized as a national priority.

Dubbed Egypt’s Shouna Development Project, the North African country is expected to save about 2 billion US dollars within the next five years.

“Right now, we’re in the process of negotiating a contract for the phase 2 expansion. We are at the stage whereby, as long as we’re able to come to an agreement with the government by May 1st of this year, we should be able to reach our objectives, and the shared objectives of the government, to have all of the shouna completed with the Blumberg Grain aggregation processing centers by the harvest season in 2018,” Blumberg added.

Egypt is the world’s largest importer of wheat as the government spends billions of dollars on grain each year for a subsidized bread program.

The Blumberg Grain systems will reduce post-harvest loss in locally grown wheat from about 40 percent to less than 5 percent. The government buys about half of the country’s wheat production annually. Egypt begins its wheat harvest this month.

The project will also bring significant benefits to Egyptian farmers who will now be paid fairly. Farmers products will now be assessed correctly and accurate payment will be provided.

According to Blumberg, the Shouna Development Project will bring the highest levels of food security technology to Egypt and will make it the food security hub of the Middle East and Africa.