Almamlka Foods is planning to establish a factory for feed and oil extraction in partnership with two Algerian and Moroccan companies with initial investments estimated at EGP 250m.
Mahmoud Arafa, CEO of the company, said that the company is negotiating with the Ministry of Agriculture and Land Reclamation to buy crops from 2,000 acres of soybeans and maize at the international price, and to sign a letter of guarantee, instituting crop purchases through the Contractual Plantations Agency affiliated with the ministry.
He added that the company is studying the domestic market’s direction after the flotation of the pound and its low value against the dollar, which increased import costs—affecting profits of the company that depends entirely on imports for its production input.
Arafa said that the company’s future plan includes buying crops from 1m acres if the negotiations with the Ministry of Agriculture succeed.
The company plans to inject new investments in partnership with entities from Algeria and Morocco to set up a factory for feed and oil extraction on an area of 25,000sqm at an initial investment of EGP 250m.
The company will allocate a piece of land for the implementation of projects in Upper Egypt, according to the Egyptian president’s decision regarding granting lands there.
President Abdel Fattah Al-Sisi issued a decree determining that lands will be allocated to the industrial investors free of charge.
According to the decision, lands will be granted free of charge to investors who meet the technical and financial conditions in specified areas, including Minya, Assiut, Sohag, Qena, Aswan, and the New Valley governorates.
Arafa explained that the flotation of the pound has a significant impact on the company because it is operating with imported raw supplies and extracted oils.
The flotation of the pound is the main reason for the price hikes of feed, poultry, oils, and table eggs.
He pointed out that the success of the state to shift to corn and soybean planting will reflect positively on their prices, and the company will sign guarantees to buy the crops according to specified international prices.
He said that the company is importing 10,000 tonnes of feed, but imports declined by more than 50% after the liberation of the dollar exchange rate.
He added that the best solution to control price hikes of feed, oils, and poultry is expansion of the cultivation of soybeans and maize which will provide the dollar reserves required for their imports.
Almamlka Foods was founded in 2008. It is an Egyptian shareholding company operating in the supply of raw materials to feed mills, as well as oil extraction.