Al Dahra, ADEX partner to secure Egypt's wheat supply in $500 million agreement

Al Dahra, ADEX partner to secure Egypt's wheat supply in $500 million agreement

CAIRO/ABU DHABI, 15th August, 2023 (WAM) -- Al Dahra, a global agribusiness leader based in Abu Dhabi, and Abu Dhabi Exports Office (ADEX), have partnered to supply wheat to Egypt in a five year deal starting 2023. The five-year agreement, worth US$100 million per year, will provide Egypt with a steady supply of high-quality imported milling wheat.

“This agreement solidifies our commitment in establishing long term supply deals with key producers across the world, so that the people of Egypt have access to essential food supplies and strengthening our food grain supply chain buffer to withstand any unexpected shocks in the global markets,” said Dr. Ali Al Moselhy, Egypt's Minister for Supply and Internal Trade. “We are glad to partner with Al Dahra and ADEX, who are committed to our objectives. The low-cost financing package from ADEX helps us procure high quality wheat at the lowest cost financing available, with comfortable payment terms. This is a successful milestone in our mission to ensure food security to the Egyptian people. All three parties have been working hard over the past few months to bring this to fruition.”

Mohamed Saif Al Suwaidi, Director-General of Abu Dhabi Fund for Development and Chairman of the Exports Executive Committee of the Abu Dhabi Exports Office, said, “This agreement marks a milestone in ADEX's mission to help UAE businesses expand their global exports and diversify our economy. We are proud to partner with Al Dahra on this important initiative, which will ensure food security for the people of Egypt.”

Rania Al Mashat, Minister of International Cooperation, said that this agreement is a testament to the power of cooperation to create a ripple effect of positive change, benefiting all involved and leading to greater prosperity for all nations.

“Al Dahra works towards sustainably feeding a growing world, and this agreement aligns with our purpose in one of the key markets in the region, Egypt,” said Arnoud van den Berg, Group CEO of Al Dahra. “This agreement highlights our commitment to food security in the countries we operate in and complements our efforts from our farms in Egypt. Over the past 3 years, our farms in Egypt have supplied over 180 thousand tons of wheat at the prevailing local market price making us the largest local private sector supplier of Egyptian wheat to the General Authority for Supply Commodities (GASC)," he added.

Al Dahra already farms 28 thousand hectares in Egypt that help sustain the country's food security by producing staple crops. It is the largest private sector producer of wheat and corn in Egypt in addition to the production of onions, sugar beet, sesame, citrus, sorghum as well as forage for the livestock. Nearly 85 percent of all produce from Al Dahra's Egyptian farms are supplied locally, helping reduce the import burden for the government.

Globally, Al Dahra’s production output of grains and oilseeds is approximately 600 thousand tonnes.