EGTE cuts wheat supply by 25 percent


Ethiopian Grain Trade Enterprise (EGTE) responded to low wheat reserves by cutting the wheat they supply to four companies by 25 percent this month. The 170 flour companies who grind wheat and distribute it to bakeries and food companies are now receiving a total of 377,754 quintals per month which is a decrease of 94,754 quintals.
The Defense and Police Institutes did not have their wheat supply cut as they continued to receive 49,706 quintals of wheat per month.
The supply which also goes to 38 flour companies based in Addis could affect 1,428 bakeries.
Adam Belay, EGTE marketing officer told Capital that supply cut occurred due to the delay of wheat procurement.
“We expected 400,000 tons from abroad but that did not come and then we purchased 100,000 metric tons from food security reserves to stabilize the supply but the imports have not arrived.
The Addis Ababa Trade Bureau blasted EGTE for not notifying them of the supply cut.
A source who claimed anonymity told Capital, “EGTE cut the supply and did not inform us which is not fair, so we wrote a letter to the Ministry of Trade to get an answer.”
The source added wheat supply cut caused bakeries and wheat flour companies to underperform.
“Over 150 new bakeries need additional flour because as the city’s population increases the demand for bread and pasta and macaroni increase but the supply is not sufficient and the cut will make it worse.’’
According to Adam the supply will be resuming to previous levels shortly.
Currently 60 percent of wheat comes from foreign source. However, the recent drought has affected the local supply. Back in April the government chose three companies to supply 400,000 tons of wheat. The 2.1 billion birr award was won by: Promising International Trading Co. DMCC, ADM International, and Phoenix Commodities DMCC.