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Egypt studies wheat options

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Published: February 25, 2010

SHARM EL-SHEIKH, Egypt (Reuters) – Egypt is evaluating three options for growing wheat in Uganda in a bid to safeguard its water supply and boost supply of staple crops.

“Egypt wants to ensure there are several sources that guarantee its supply of crops,” said Saad Nasser, adviser to Egypt’s agriculture minister.

The options include Egyptian investors owning and cultivating farmland, owning land in partnership with Egypt and Uganda, or owning land as a concession right.

He did not give a timeframe for when a deal would be reached.

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Egypt, the most populous Arab country and the world’s top wheat importer, consumes 14 million tonnes of wheat a year and imports half of that amount.

It runs three farms in Africa now: one in Zambia to grow corn, one in Niger mostly for rice and a third in Tanzania for vegetables.

The Uganda farm to grow wheat is one of 14 planned farms to supply Egypt.

The African Union has in the past criticized what Africans call land grabs as investors, particularly from the Persian Gulf and Asia, buy farmland.

The African Union argues these investments do not provide benefits to poor nations.

However, the African Union’s rural economy and agriculture commissioner said earlier this month that the union would present guidelines on how to invest in farmland that protect investors as well as locals.

“These countries will benefit from Egypt’s expertise, particularly in increasing productivity and in technological skills,” Tumsiime Rhoda Peace said.

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