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Egypt eyes Sudan for wheat needs
Published in The Egyptian Gazette on 24 - 11 - 2010

CAIRO - Egypt has turned to its impoverished southern neighbor, Sudan, for use of agricultural land as the world's largest wheat importer looks to meet domestic food supply needs and quell a rapidly growing population increasingly irate about chronic price increases.
With a summer drought in Russia that propelled world grain prices higher still fresh in the government's mind, Egyptian officials in September revived a 30-year-old agreement with Sudan that encourages private companies to plant wheat in northern Sudan.
The deal brings Egypt into a growing list of Arab nations that have turned to Africa as a new breadbasket.
"We are facing a shortage of agricultural commodities internationally," said Ayman Abou Hadid, chairman of the state-run Agricultural Research Center. Under the deal, the Egyptian government provides investors with incentives for irrigation and infrastructure, but production is left up to the private companies, he said.
"The government is not going to participate," said Abou Hadid.
The deal marks the latest attempt by the government to meet future needs in the Arab world's most populous nation. But the push has clear political overtones.
An unusually hot summer in Egypt led to a sharp increase in vegetable prices ��" though those gains were linked in part to a decision by the government to export tomatoes, leaving the local market short.
Fears about increases in food prices had already taken root even before Russia decided to halt grain exports for the rest of the year after a summer drought killed off a third of its annual harvest. Over the course of the year, meat prices seesawed, more than doubling before retreating slightly.
The deal also provides a potential boon for Egypt, which remains at odds with several other nations that share the Nile River, over water quotas. Abu Hadid said water used to irrigate wheat crops in Sudan would come from that nation's allotment, not Egypt's.
The new production would likely be just enough to meet Egypt's rate of population growth, said Abdolreza Abbassian, a senior economist at the United Nations' Food and Agriculture Organization.
It could also provide a sorely needed cash infusion for Sudan's struggling economy, which has been ravaged by the country's a 21-year civil war between Sudan's mostly Muslim north and predominantly animist and Christian south.
"Sudan has a huge potential," he said. "There are so many positive aspects as long as some code of conduct is respected."
Egypt is not alone in tapping Sudan's vast land base for crops. Saudi Arabia, the United Arab Emirates and Qatar have also turned to the country for food.
Some experts argue, however, that the deal will do little for Sudan, which has its own food worries, along with political problems.
Nader Noureddin, a soil and water expert at Cairo University's College of Agriculture, said wheat production in Sudan's northern desert would require tremendous amounts of water and would do little to supplement the country's own domestic need for the grain.
"They need it (wheat) much more than Egypt," he said. "This is their own land."
Additionally, any private Egyptian investment will not help Sudanese farmers because the companies that venture in will be looking at profit, not whether the war-ravaged nation can feed itself, said Noureddin.


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