Egypt launches food security network

New system will support Egyptian farmers in recovering crops lost to post harvest losses.

Blumberg Grain, in partnership with the Ministry of Supply and Internal Trade and the Army Engineering Authority, is developing one of the world's largest and most sophisticated integrated food security systems for grain storage.

The project covers 93 sites throughout Egypt, and is expected to be operational for the next wheat harvest season.  The new grain storage system will support Egyptian farmers in recovering crops lost to post harvest losses, saving Egypt an estimated LE 1 billion annually.

This first phase contract represents US$ 28 million in food security technology and systems for storage of locally grown wheat.  Expansion of the storage network is anticipated for additional dry grains as well as cold storage needs, using Blumberg Grain's integrated systems.

David Blumberg credits the Army Engineering Authority and the Ministry of Supply for expediting the project, which had sustained some delays last month.  "This begins the implementation of Minister Hanafy's vision for Egypt to become the food security center for the Middle East.  We commend the Minister and his staff for turning concept into action.”

Blumberg Grain has also announced that it intends to build a self-financed factory and export hub to produce food storage technology and systems for the Middle East/North Africa (MENA) region and has been entertaining offers from possible locations, including Egypt.

"Though the ongoing competition for our MENA Manufacturing Plant  has not concluded, the contract places Egypt in a good position to gain the Manufacturing Plant and the company's investment program of up to $250 million in processing and packaging facilities as well as high yield farming," said Blumberg.

According to Christian Rath, Blumberg Grain's Head of Applied Engineering, the Blumberg Grain Manufacturing Plant would be one of the largest of its kind, with a production capacity of 1,200 food storage buildings annually and the capability to manufacture food security equipment, both for the Egyptian market and for export of “Made in Egypt” food storage systems throughout the Middle East.

The MENA Manufacturing Plant will create 1,000 new jobs, as well as have an economic impact estimated by KPMG at US$ 1 billion in the first year, and US$ 7 billion over five years. The plant will also increase exports and utilize local content in the manufacturing process. 

The MENA Manufacturing Plant will include an Agricultural Institute to train farmers in techniques to raise crop yields and better secure and protect the quantity and quality of the harvest.  

Selection of the country-location and ground breaking is planned for early next year. 

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