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2019 | OriginalPaper | Chapter

10. Governmentally Controlled Supply Chains in Areas Facing Food Security Challenges: The Case of Baladi Bread Supply Chain in Egypt and the Policy Transition After the 2011 Uprising

Author : Sarkis Nehme

Published in: Sustainable Global Value Chains

Publisher: Springer International Publishing

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Abstract

This chapter will discuss the bread supply chain in countries facing the challenges of food security and sustainable development. The focus will be on the Middle East and North Africa (known as the MENA region). In this area, wheat is a dietary staple, making it a powerful tool for governmental food security policies. Based on the International Food Policy Research Institute (IFPRI), this region includes: Algeria, Bahrain, Djibouti, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Malta, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, the United Arab Emirates, the West Bank and Gaza, and Yemen. This region is the world’s most dependent on food imports, and its countries are among the world’s largest importers of wheat (Breisinger et al. 2010). Additionally, its population almost tripled in 50 years, and its freshwater and arable lands are diminishing, becoming more vulnerable to climate change. Some countries in this region have recently witnessed a series of political changes, ranging from peaceful demonstrations to civil wars; the so-called Arab Spring, political instability, and terrorism severely affected this region’s economies (Ianchovichina et al. 2015). Some countries, like Syria, Yemen, Libya and Iraq, are still affected by conflicts, which are considered the main drivers of food insecurity (FAO 2015). Other countries, such as Egypt, the most populated country in the region, overcame these conflicts and have started to recover. Before the uprising, Egypt’s food security had been maintained since 1956 thanks to its food and energy subsidy programme. After the uprising, however, Egypt was urged out of necessity to adopt a new development model that could deal with contemporary challenges and restore security. As a result, the new regime introduced an agenda for sustainable development known as the Sustainable Development Strategy: Egypt Vision 2030 (SDS 2030). When discussing food security in Egypt, wheat is the backbone of the food system, representing 51% of the total daily caloric intake. Therefore, a secure and stable wheat/bread supply chain is essential to maintain food security, which has forced some governments to exercise control over the supply chain. With this view, this chapter has the following objectives:

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Footnotes
1
The World Bank does not consider Malta part of the MENA region.
 
2
United Nations Conference on Food and Agriculture, 1943; the term ‘United Nations’ in the title of the Conference refers to the nations working together in the effort to win the World War II. The opening sentence of the declaration the conference adopted was: “This Conference, meeting in the midst of the greatest war ever waged, and in full confidence of victory, has considered world problems of food and agriculture and declares its belief that the goal of freedom from want of food, suitable and adequate for the health and strength of all peoples, can be achieved” (Phillips 1981).
 
3
In July 2014 the High-Level Panel of Experts on Food Security and Nutrition (HLPE), established in 2010 as the science-policy interface of the United Nations Committee on World Food Security (CFS), provided this definition.
 
4
Domestic wheat production increased by 12% between 1990 and 2010.
 
5
Using $1.25 per day indicator; however, when taking the $2 per day indicator, this percentage increases to 45%.
 
6
Average per capita consumption of wheat in Egypt is around 150 kg per year (McGill et al. 2015).
 
7
An average of 10 million metric tons were imported between 2011 and 2013.
 
8
Small scale farmers prefer to sell their wheat to traders because they don’t have the means to deliver the wheat as a mandatory step of the purchasing process. In this case, traders will pick up the wheat from farms and then deliver it.
 
9
Domestic wheat is bought with 15 to 25% higher prices than imported one to encourage domestic production.
 
10
Total inland capacity: 3.01 MMT, of which 30% are Silos and 70% flat storage known as Shonas.
 
11
Total capacity of storage is 3.3 MMT, around 12% governmental and 88% for private sector.
 
12
Owned by Food Industry Holding Company (FIHC) with governmental shares of more than 51%.
 
13
GASC paid the licensed bakers $18 for every 50 kg of flour baked (Kamal 2015).
 
14
In 2013, the flour for Baladi bread cost the government $419/MT and sold exclusively for licensed bakeries for $26.5/MT.
 
15
Title of the committee is translated word by word from the Arabic language.
 
16
Unpublished report (in Arabic language): The Report of the Committee of Truth Investigation, on the Topic of Corruption and Mafia Manipulation of Wheat Imports and Public Money Wasting in the Favor of Private Wheat Importers, 2016. Available online at: https://​www.​alborsanews.​com/​app/​uploads/​2016/​08/​1472135950_​333_​22332439_​.​pdf, last accessed 31 January 2019.
 
17
The report included all documented corruption and drew accusations to individuals and entities.
 
18
Sustainable Development Strategy: Egypt Vision 2030; English summary is available at: http://​arabdevelopmentp​ortal.​com/​sites/​default/​files/​publication/​sds_​egypt_​vision_​2030.​pdf, last accessed 31 January 2019.
 
Literature
go back to reference Abdalla M, Al-Shawarby S (2018) The Tamween food subsidy system in Egypt: evolution and recent implementation reforms. In: Alderman H, Gentilini U, Yemtsov R (eds) The 1.5 Billion people question: food, vouchers, or cash transfers?, World Bank Group, Washington DC, pp 107–150 Abdalla M, Al-Shawarby S (2018) The Tamween food subsidy system in Egypt: evolution and recent implementation reforms. In: Alderman H, Gentilini U, Yemtsov R (eds) The 1.5 Billion people question: food, vouchers, or cash transfers?, World Bank Group, Washington DC, pp 107–150
go back to reference FAO – Food and Agriculture Organization of the United Nations (2015) Regional overview of food insecurity – near East and North Africa: strengthening regional collaboration to build resilience for food security and nutrition. FAO, Cairo. http://www.fao.org/3/a-i4644e.pdf. Accessed 31 Jan 2019 FAO – Food and Agriculture Organization of the United Nations (2015) Regional overview of food insecurity – near East and North Africa: strengthening regional collaboration to build resilience for food security and nutrition. FAO, Cairo. http://​www.​fao.​org/​3/​a-i4644e.​pdf. Accessed 31 Jan 2019
go back to reference Kamal O (2015) Half-baked, the other side of Egypt’s baladi bread subsidy: a study of the market intermediaries and middlemen in the system. Barcelona Centre for International Affairs (CIDOB), Barcelona Kamal O (2015) Half-baked, the other side of Egypt’s baladi bread subsidy: a study of the market intermediaries and middlemen in the system. Barcelona Centre for International Affairs (CIDOB), Barcelona
go back to reference Ramadan R, Thomas A (2011) Evaluating the impact of reforming the food subsidy program in Egypt: a mixed demand approach. Food Policy 36(5):638–646CrossRef Ramadan R, Thomas A (2011) Evaluating the impact of reforming the food subsidy program in Egypt: a mixed demand approach. Food Policy 36(5):638–646CrossRef
go back to reference Sonnino R, Moragues Faus A, Maggio A (2014) Sustainable food security: an emerging research and policy Agenda. Int J Sociol Agric Food 21(1):173–188 Sonnino R, Moragues Faus A, Maggio A (2014) Sustainable food security: an emerging research and policy Agenda. Int J Sociol Agric Food 21(1):173–188
go back to reference UN DESA – United Nations Department of Economic and Social Affairs, Population Division (2017) World Population Prospects: The 2017 Revision, Key Findings and Advance Tables. Working Paper No. ESA/P/WP/248. United Nations, New York. https://esa.un.org/unpd/wpp/publications/Files/WPP2017_KeyFindings.pdf. Accessed 31 Jan 2019 UN DESA – United Nations Department of Economic and Social Affairs, Population Division (2017) World Population Prospects: The 2017 Revision, Key Findings and Advance Tables. Working Paper No. ESA/P/WP/248. United Nations, New York. https://​esa.​un.​org/​unpd/​wpp/​publications/​Files/​WPP2017_​KeyFindings.​pdf.​ Accessed 31 Jan 2019
Metadata
Title
Governmentally Controlled Supply Chains in Areas Facing Food Security Challenges: The Case of Baladi Bread Supply Chain in Egypt and the Policy Transition After the 2011 Uprising
Author
Sarkis Nehme
Copyright Year
2019
Publisher
Springer International Publishing
DOI
https://doi.org/10.1007/978-3-319-14877-9_10