FAO: Egypt's agriculture sector withstands economic challenges

CAIRO - 9 September 2024: Egypt continues its efforts to promote sustainable agricultural development, focusing not only on expanding agricultural land and increasing productivity but also on supporting farmers. As the backbone of Egypt’s agricultural ambitions and key to maintaining food security, farmers benefit from strategic state support aimed at modernizing agricultural systems, enhancing food production, and solving challenges through scientific research.

In addition, legislative measures have been introduced to facilitate financial transactions for farmers, boosting local agricultural competitiveness and attracting investments for sustainable projects. These initiatives have drawn international praise for Egypt’s agricultural efforts.

A report published by the Cabinet's Media Center highlights Egypt’s ongoing strategy to support farmers in honor of the 72nd Farmers' Day. The report also features international views on these efforts. In 2024, Fitch praised the government’s push to encourage wheat and maize cultivation by providing high-quality seeds and demonstration fields. Meanwhile, Bloomberg reported in 2023 that Egypt has prioritized agricultural support and food production, particularly through land reclamation and crop diversification.

The Food and Agriculture Organization (FAO) in 2023 noted the resilience of Egypt's agriculture sector despite economic and social shifts, maintaining its share in GDP and employment, thereby fueling economic growth. The World Food Programme also emphasized in 2023 Egypt’s measures to reduce wheat imports by increasing local production through new land reclamation projects and diversifying import sources.

Additionally, the International Fund for Agricultural Development (IFAD) commended Egypt's natural resource wealth, including its fertile lands and fisheries, highlighting agriculture’s key role in poverty reduction and job creation.

Egypt's agricultural sector has experienced significant growth. The cultivated land area increased by 12.4%, reaching 10 million acres in 2024 compared to 8.9 million acres in 2014. Agricultural exports surged by 74.4%, totaling 7.5 million tons in 2023, up from 4.3 million tons in 2014. Between January and September 2024, Egypt exported 6.1 million tons of agricultural goods, valued at over $3.6 billion, spanning 398 different products to 165 markets.

The report further noted that Egypt's agricultural sector achieved a growth rate of 3.8% in 2023/2024, compared to 3% in 2013/2014. Public investments in agriculture rose eightfold, reaching EGP 31.8 billion in 2022/2023, up from EGP 4.1 billion in 2013/2014.

In terms of financial support, Egypt's government has facilitated access to loans for farmers, with strategic crop financing reaching EGP 10 billion annually at a 5% interest rate. The government covers more than EGP 500 million annually in support for around 300,000 farmers. Initiatives such as the debt postponement and relief program benefited 330,000 farmers, resolving debts amounting to EGP 8 billion.

The government also implemented contract farming, guaranteeing a minimum sale price for crops to ensure farmers' profitability. For the 2023/2024 season, the minimum price for yellow corn was set at EGP 9,500 per ton, while the market price reached EGP 11,400. Soybeans were priced at a minimum of EGP 18,000 per ton, with the market rate reaching EGP 21,400. Sunflower seeds were guaranteed at EGP 15,000 per ton, with prices depending on oil content, ranging from EGP 17,000 to EGP 20,000.