Agricultural Equipment

An Expert's View about Machinery and Robotics in Egypt

Posted on: 15 Oct 2011

Demand in Egypt’s agri sector is mainly of the following equipment: Irrigation equipment, harvesting and threshing Machinery, vine harvesting equipment, till tunnel vineyard sprayers, tillage equipment, spreaders for manure, grain and pressure bins, agriculture packing equipment, crop dryers, Pop-up sprinklers and landscape and golf course equipment.

Sector briefing Agriculture opportunities in Egypt Why Egypt? Egypt has the largest population in the Arab The agriculture and irrigation sector is world (approximately 80 million) and is the shouldering the responsibility of achieving food fourth-largest economy. security and providing the input for industrial activities; agribusiness sector accounts for Egypt has a strategic location in the centre of nearly 21% of Egypt?s total industrial the Middle East and North Africa (MENA) region production. (800 million people) and has links to the three continents of Asia, Africa and Europe. It is the Egypt?s agriculture production are mainly hub for the world?s maritime traffic with cotton, rice, corn, wheat, beans, fruits, commercial ports on the Mediterranean and vegetables; cattle, water buffalo, sheep, goats Red Seas. Major agricultural exports are crude oil and petroleum products, cotton, textiles, metal Egypt is signatory to many regional and products. international Free Trade agreements which reduce or wave completely the custom duties Major agricultural imports; machinery on exported / imported goods. equipment, foodstuffs, chemicals, wood products, fuels. Events in Egypt since January 2011, and the transition to democracy, have had a negative Egypt has the world?s most productive impact on the economy. Economists forecast cultivation of rice (3.8 tons per acre), cane that overall growth for FY 2011 will be around sugar (50 tons/acre) and sorghum (1.9 3% rather than the 5.7% which had been ton/acre). expected. The transition government has placed a real emphasis on the need to Egypt?s success in developing its agricultural accelerate economic reform alongside sector has been due in part to irrigation democratic developments and improve further programs, price incentives for farmers, and the climate in Egypt for international technology transfer throughout the country?s investment. Analysts are predicting a period of agricultural sector. Advances in technology economic uncertainty for the next 6-9 months mean that crops can now be grown in the with a return to higher growth depending on desert in silica "glass pebbles", which greatly stability and a return to civilian government. reduces the need for water. If you are looking to invest in Egypt, now is a Egypt imports approximately 95% of its time for assessing, performing due diligence, agricultural equipment and the balance is and looking closely at market developments in locally produced, however, the quality of local relation to your particular sector. The business production cannot compete in global markets. to business trading relationship will be less affected by recent events and will continue For more information about our market please throughout the period of political uncertainty, visit Egypt page at: www.ukti.gov.uk/egypt. though letters of credit will gain in importance. UK Trade & Investment Sector briefing: Agri Technology opportunities in Egypt Opportunities Agriculture Equipment: Egypt encourages the private sector to invest in this industry. Advances in Post Harvest Technology: Demand in Egypt?s agri sector is mainly of the Technology to help Egyptians to grow crops in following equipment: Irrigation equipment, the desert in silica "glass pebbles", which harvesting and threshing Machinery, vine greatly reduces the need for water. harvesting equipment, till tunnel vineyard sprayers, tillage equipment, spreaders for Silos: The total covered storage capacity for manure, grain and pressure bins, agriculture wheat is estimated at 1 MMT. This included packing equipment, crop dryers, Pop-up about 350,000 MT in silos at three different sprinklers and landscape and golf course ports (Alexandria/Damietta/Safaga), 250,000 equipment. MT in inland silos and 400,000 MT in open storage mostly in metropolitan areas. In order Wheat Supply: Egypt, world?s top wheat to increase the storage capacity, the importer, is heavily dependent on wheat, government is promoting a project to the Egyptians consume more than 12 Million ton of private sector. This project encourages the wheat yearly, consuming large quantities of private sector to build 50 inland silos with breads, and pasta. Given the generally low 30,000 MT capacities in different locations incomes and low per capita spending on food, throughout the country and The Ministry of cereals such as wheat, corn, sorghum and rice Supply will then commit to using 60 percent make up the bulk of the Egyptian diet, (90,000 MT) of each silos capacity at the providing over 72% of daily energy and protein prevailing storage fee for 5 years. supplies. The government subsidies the popular baladi flat bread in order to make daily Slaughterhouses: Egypt produces 2 MT of bread accessible to even the poorest in society. poultry per year and has a capacity of 500,000 Despite government plans to increase planted MT slaughterhouses. Following the recent issue areas of wheat, the growths in wheat on avian flu, the government plans to establish production in Egypt still not enough for Egypt?s slaughterhouses by building 1.5 MMT of consumption and the Egyptian wheat is slaughterhouses during the next three years. suitable only to make Baladi bread. An Slaughterhouses are mainly for a capacity of opportunity for future purchasing UK wheat 3000 birds/hour, 6000 birds/hour or 9000 exists especially that UK in within Egypt?s birds/hour. To encourage the private sector to approved list of countries suppliers. invest in this industry, the government has signed a joint agreement with a Kuwaiti fund to Meat imports: Egypt was banning imports of provide $90 million in credit facilities. meat from countries reported to have BSE, however on recent requests from the EU, the Fisheries: The government hopes to increase government agreed to open meat imports (with annual production of fish catch to meet certain conditions) from EU countries with expected demand of 1.4m tons by 2012 by controlled BSE Risks. The country produces managing natural fish stocks and encouraging annually 70 % of its red meat requirements the use of the country's inland lakes and with annual imports reaching 400,000 tons waterways for intensive aquaculture. (meaning that Egypt's annual consumption of red meat is now estimated at 1.3 million tons). Fertilisers: The fertilizer market of Egypt is booming due to the growing demand from the You can be alerted to business opportunities on agricultural sector, the country's central a regular basis by registering on the UKTI geographical position and the availability of website. Find out more on UKTI?s business cheap gas. Hence, Egypt is attracting opportunities service on the UKTI website. international players and inviting investors to build fertilizer production units and use the country as a convenient export base. UK Trade & Investment Sector briefing: Agri Technology opportunities in Egypt Major events and activities UKTI contacts Agrena 2012. Marwa Hussein An Exhibition for Poultry, Animal Production & Trade & Investment Section Fish Wealth Development. A yearly event, that British Embassy Cairo takes place during July each year at Cairo Egypt International Conferences Centre. Tel: +202 27916000 Organiser: Crose Co. E Fax: +202 27916130 Mail: crose@access.com.eg Email: Marwa.Hussein@fco.gov.uk Web: www.agrena.net www.ukti.gov.uk Gary Hunt Find full details of all events in Egypt on Deputy Director the UKTI website. Trade & Investment Section New export events are added daily to the site British Embassy Cairo and you can register to be alerted to them on a Egypt daily, weekly or monthly basis. Tel: +202 27916000 Fax: +202 27916130 UKTI?s Tradeshow Access Programme (TAP) Email: Gary.Hunt@fco.gov.uk provides grant support for eligible Small & www.ukti.gov.uk Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Agri Technology opportunities in Egypt Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Egyptian market are advised to you to meet contacts and promote your undertake as much market research and company in the Egyptian market planning as possible in the UK. UKTI?s team in Egypt, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Egyptian market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Agri Technology opportunities in Egypt
Posted: 15 October 2011

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