Feerum Egypt invests US$33M in grain storage silo factory

EGYPT – Feerum Egypt, a prominent player in the grain storage industry, has announced an investment of US$33 million in the establishment of a state-of-the-art factory dedicated to the production of grain storage silos in the East Port Said region of Egypt. 

The initiative, backed by an investment of EGP 1.6 billion (approximately US$33.9 million), marks a strategic move to enhance Egypt’s grain storage capabilities and bolster food security in the country.

The landmark agreement facilitating the creation of this facility was recently signed between East Port Said Development and Feerum Egypt. 

The signing ceremony, attended by Prime Minister Mostafa Madbouly, underlines the government’s commitment to supporting strategic industries within the Suez Canal Economic Zone (SCZone).

With a planned area of 51,950 square meters, the new factory aims to strengthen the region’s industrial infrastructure while aligning with President Abdel Fattah El-Sisi’s vision to localize key industries within the SCZone. 

Karim Sami Saad, representing Feerum Egypt, highlighted the strategic importance of East Port Said’s industrial zone and its potential to contribute to both local and regional objectives.

Daniel Janusz, another key figure in the partnership, emphasized Feerum Egypt’s commitment to promoting self-sufficiency in grain storage and food security in Egypt. 

He outlined the company’s ambitious goal to source 80% of the final product locally within three to five years, demonstrating a strong dedication to supporting the Egyptian economy and fostering domestic production capabilities.

Moreover, Janusz envisioned Feerum Egypt emerging as a vital supply hub for the grain silo industry across Africa and the Middle East, with aspirations to expand into the European market. 

This strategic investment not only positions Feerum Egypt as a leader in the grain storage sector but also underscores Egypt’s growing significance as a regional hub for agricultural infrastructure development.

In another recent move to enhance food security in Egypt, the government has raised the procurement price of local wheat to EGP 2000 (US$41.32) per ardeb (150 kilograms) for the 2024/25 season to incentivize farmers to sell their produce to the state and curb inflation.

The revised incentive is a 25% jump from EGP 1600 (US$33.16) previously announced in November for the 2024 season.

Egypt has one of the highest per capita consumption rates of wheat in the world. With such high demand, Egypt is forced to rely on imports as local wheat production, despite being the highest in Africa, is unable to meet the local demand.

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