Miller Magazine Issue: 148 April 2022

101 COUNTRY PROFILE MILLER / APRIL 2022 The Russia-Ukraine conflict poses big challenge for Egypt As the war between Russia and Ukraine is causing major disruptions of wheat supplies, Egypt is not iso- lated from these catastrophic events. Egypt relies on Russian and Ukrainian wheat due to competitive prices, lower freight costs, and less time reaching Egyptian ports compared to other origins. Egypt’s imports of wheat over the last five years amounted to 62.6 MMT, with 59.7 percent from Russia and 22.3 percent from Ukraine. The Russian–Ukrainian conflict has disrupted the flow of wheat from the Black Sea and caused great ambigui- ty in the global wheat trade. Ukraine has suspended port operations for commercial activities and banned wheat ex- ports. Russian wheat movement through the Black Sea was also affected by remarkably high insurance premiums for freight. In addition, current economic sanctions have made commercial transactions difficult. In response, wheat prices have surged almost 40 percent, hitting their highest levels in 14 years. As the war between Russia and Ukraine is causing ma- jor disruptions of wheat supplies, Egypt is not isolated from these catastrophic events, which is already affecting its im- ports of wheat from both countries. Wheat is a key food item for Egypt, representing be- tween 35% and 39% of caloric intake per person in the last few years. Egyptians on average consume about 145 kg of wheat per capita annually—double the global average. Egypt is the world’s largest importer of wheat. Wheat im- ports usually account for about 62% of total wheat use in the country. It imports a total of 12-13 million tons annually. With a population of 105 million growing at a rate of 1.9% a year, Egypt has become increasingly dependent on imports to meet food needs. Wheat imports have been steadily in-