Angered by wheat procurement prices for this year, more wheat growers are expected to withdraw from the market the coming season, reports Sherine Nasr There were times when the harvesting of wheat was not merely an annual event but rather a national feast celebrated by farmers across the country. Those old, merry times have gone and the folkloric songs that were tailored to mark the harvest have been replaced with the bitter complaints of farmers who toil hard to grow the crop but have consistently failed to secure even a marginal profit. This week, the government announced that it will allocate LE5 billion to buy local wheat from farmers at procurement prices ranging from LE240 to LE250 per ardab (approximately 150kg). Although the local rate is higher than the international prices for the crop, the government decision evoked a wave of discontent among farmers who believe that the price will barely cover the cost for growing Egypt's most strategic crop. "It has been the government's trend to set a local price that is in line with international prices, but in the case of wheat this year, nothing could be more detrimental to local farmers than this practice," said Sayed Hamad, head of the Secretariat of Farmers at the National Democratic Party, who explained that international crop prices have declined due to many factors. He added that governments in Europe and the United States continue to support their farmers through the provision of subsidies so that they can compete in the international market. "This is not the case with Egyptian farmers who, single-handed, shoulder a series of costly procedures until the cultivation process is completed," said Hamad, adding that one feddan of wheat may cost up to LE4,000 to cultivate. Costs include land rent which is among the highest in the region, fertilisers, labour and irrigation. "As a result, wheat growers this year may fail to make any substantial profits. Many have decided to keep a good portion of their harvest for their household purposes and refused to deliver it to the government at those prices," Hamad said. As a matter of fact, many experts believe that linking local wheat prices to international market is an irrational practice on the part of the government. Former President of the Agricultural Research Centre and the "father of wheat" as farmers have nicknamed him, Abdel-Salam Gomaa, argues that Egypt lately purchased Russian wheat at a much cheaper rate of LE160 per ardab. "Nevertheless, the government is still to blame because procurement prices should reflect criteria governing the local market, including exaggerated production costs, and not simply be linked to international circumstances," said Gomaa. The present situation, however, has evoked justified anxiety over the future of wheat cultivation and production in Egypt. According to Gomaa, cereal crops represent the bulk of Egypt's agricultural wealth as they stand for almost half -- 7.5 million feddans -- of the total cultivated land in Egypt estimated at 15 million feddans. Of all cereal crops wheat is believed to be the most strategic as it forms the base of food self-sufficiency for a nation where millions have fallen below the poverty line. Notably, Egypt is a major wheat importer. Local wheat production in 2008 was estimated at eight million tonnes while consumption approximately reached 14 million tonnes. Main exporters are the US, the republics of the former Soviet Union and Australia. Regrettably, the government trend this year will most probably have some adverse consequences on local wheat production for next year. "Farmers will shun wheat in favour of cultivating more profitable crops such as beans," said Gomaa, who added that if crop prices started to pick up again in the international market, which is a possibility, "Egypt will find itself in a very awkward situation." Being a strategic commodity as it may be, it is quite peculiar why the government has no vision to how many feddans of wheat should be cultivated each year. The same criterion applies to other important crops such as corn and rice. According to Gomaa, all cultivated land in Egypt is a private property and it is up to farmers to decide which crop and what area to cultivate. "The Ministry of Agriculture owns no land of itself. It provides farmers with guidelines but its decisions are not obligatory," he added. And while this is the case, attaining self- sufficiency in wheat production could not be a more far-fetched possibility. "And it should not be made a possibility at all," argued Gomaa, who explained that it is not economically viable to reach self- sufficiency because Egypt has limited water resources and limited agricultural land as a result. "If we manage to locally produce 80 per cent of our needs, that would be an achievement and this is what we are working on at the moment," he said, adding that a national project to cultivate one million new feddans under President Hosni Mubarak's five-year plan is bearing fruit.
