Arab Finance: As Egypt navigates structural shifts across its agricultural supply chains, the local milling sector is under intense pressure to modernize, optimize capacity, and ensure food security for a growing population of over 112 million. Caught between global market volatility, a rapid 76% surge in private-sector wheat imports, and a 6.5% rise in domestic wheat production, local millers are increasingly looking toward industrial automation and technical upskilling to preserve margins and unlock export markets. At the forefront of this industrial transition is the Egyptian Milling Technology Center (EMTC), a regional hub delivering critical training, laboratory analytics, and strategic governance to the sector.

Arab Finance sat down with Ahmed Mekawy, Executive Director at EMTC, to explore the current technical hurdles facing Egyptian mills, the center’s expanding role in supply-chain resilience, and its strategic roadmap to position Egypt as the premier food-processing and milling knowledge anchor for Africa and the Middle East by 2030.

1-Could you introduce the Egyptian Milling Technology Center (EMTC) and explain its core role in Egypt’s milling and grain-processing ecosystem?

EMTC is a pioneering institution established in 1994 through a joint effort between Egypt's Ministry of Supply and Internal Trade and the US Wheat Foundation. It is the first of its kind in Africa and the Middle East, modeled after world-class milling schools at Kansas State University, North Dakota State University, and the Swiss St. Gallen School.

Our core role is to serve as a specialized knowledge hub dedicated to advancing the milling and grain-processing industry through training, research, and technical support. We bridge the gap between global technological advancements and local industry needs, providing hands-on training for millers and related professionals from Egypt, the Arab world, and Africa. Our goal is to develop this critical industry and raise its operational efficiency, directly contributing to Egypt's food security and industrial competitiveness.

2-What services does EMTC provide to mills, millers, and related professionals across Egypt and the wider region?

EMTC offers a comprehensive and integrated suite of services spanning six core areas. The center delivers structured training and capacity-building programs, ranging from basic to advanced leadership levels, covering milling technology, quality control, baking technology, mechanical and electrical maintenance, smart milling solutions, and specialized diplomas in milling governance and food safety. This is complemented by robust laboratory and analytical services, which include grain chemistry analysis, flour quality testing, and baking trials conducted through a grain laboratory operating under the American system, a quality control lab, and specialized facilities for mechanics, electricity, and air quality.

Beyond operational testing, EMTC provides technical consultancy and arbitration, offering expert advisory services and field-based problem-solving for milling companies, while simultaneously driving applied research and innovation through specialized scientific studies executed in collaboration with universities and research centers to advance grain science.

The organization actively fosters strategic partnerships with local, regional, and international academic institutions, vocational training institutes, and specialized bodies to exchange expertise, all while prioritizing long-term professional development to train and upskill human cadres, thereby ensuring a pipeline of competent professionals capable of managing modern, automated milling operations.

3-What are the most common technical or operational challenges that milling companies in Egypt are facing today?

Egyptian milling companies face several interconnected challenges, beginning with intense market competition in a fragmented landscape of approximately 157 operating mills, which often leads to profit-squeezing price wars. This environment is further complicated by severe capacity underutilization, compelling many facilities to operate below full capacity and forcing them to explore export markets just to maintain financial viability.

Operationally, mills must constantly adapt to changing wheat origins, requiring complex adjustments to milling processes and the strategic use of quality improvers to handle the heavy shift toward Black Sea and other import origins—especially as local wheat production has risen by over 6.5%. These operational hurdles are exacerbated by broader economic pressures, including intense volatility in global wheat prices and fluctuations in the Egyptian pound that directly affect operational costs and long-term financial planning.

The necessary drive toward technological upgradation requires companies to transition from traditional methods to automated and digitally monitored operations, which presents steep challenges regarding capital investment costs and the immediate availability of a highly skilled workforce.

Also, efficient by-product management remains an active operational concern, as companies continually struggle to maximize the true economic value of by-products like bran.

4-What role does EMTC play in supporting food security and supply-chain stability in Egypt?

EMTC is strategically positioned to strengthen Egypt's food security and supply-chain stability through multiple interconnected channels.

First, the organization directly enhances milling efficiency by training millers on optimized processing techniques, which helps maximize flour extraction rates from both imported and locally sourced wheat, thereby reducing industrial waste and ensuring more food successfully reaches the market. This operational support is reinforced by localizing knowledge and technology, as EMTC actively transfers global best practices and technological know-how to local professionals, reducing the sector's long-term dependence on foreign expertise while building indigenous technical capacity.

Concurrently, the center supports local wheat utilization. As Egypt's domestic wheat production continues to expand, EMTC helps millers adapt their equipment and parameters to effectively process local wheat varieties, ultimately mitigating import dependency.

Moreover, its dedicated analytical and baking laboratories provide rigorous quality assurance to ensure that flour consistently meets national and international standards, contributing directly to a stable and reliable food supply for a population of over 112 million.

Finally, the institution focuses heavily on building a resilient workforce, ensuring deep continuity and operational resilience in the sector's human capital by systematically training the next generation of millers to protect supply-chain stability.

5-How ready is the local market for deeper automation and digital monitoring in milling operations?

The local milling market shows growing readiness for automation and digitalization, though the pace varies across the sector. On one hand, several strengths and opportunities are driving this shift, including an increasing recognition among mill owners of the operational and quality benefits of automation, combined with supportive government policies that encourage industrial modernization and digital transformation.

To capitalize on this momentum, EMTC is actively developing and offering specialized training programs in smart milling technologies, electrical systems, and digital monitoring.

On the other hand, significant challenges persist, as high initial investment costs remain a major barrier for many smaller mills, and there is a shortage of qualified technicians capable of operating and maintaining advanced automated systems. Furthermore, some facilities still require significant infrastructure upgrades before they can successfully implement sophisticated digital solutions.

EMTC is actively addressing these barriers by offering targeted training programs, including specialized diplomas and advanced courses in electrical systems and intelligent milling technologies. The organization is also digitizing its training content and updating its platform to support blended and e-learning models, thereby making critical automation knowledge far more accessible across the industry.

6-How can Egypt strengthen its position as a regional hub for milling expertise and food-processing know-how?

Egypt can solidify its position as a regional milling hub by leveraging its unique assets and pursuing a comprehensive strategy. This begins with leveraging EMTC as a knowledge anchor, expanding the organization's regional leadership offerings, pursuing international accreditation, and hosting regional conferences to enhance its overall reputation and reach.

To reinforce this foundation, the country is focused on strengthening strategic partnerships, with EMTC actively building broader collaborations with specialized local, regional, and international universities, vocational institutes, and specialized bodies while targeting further expansion.

Furthermore, hosting high-level international events, such as the planned European-Arab Milling Summit in the fourth quarter (Q4) of 2026, will position Egypt as a global gathering point for industrial expertise.

On the commercial front, the strategy seeks to promote flour exports, utilizing Egypt's large milling capacity to increase shipments to African and Middle Eastern markets, thereby reinforcing the country's role as a regional production and processing hub.

Egypt must systematically pursue international accreditation for its training and laboratory services to build trust and attract more regional professionals, while actively participating in leading regional and global specialized milling networks to keep the domestic sector deeply connected to global developments.

7-How do you expect demand in the milling sector to evolve in the second half (H2) of 2026, and what does that mean for EMTC’s services?

Demand in the milling sector is expected to remain robust, driven by Egypt's large and growing population, with several key trends shaping H2 2026. This begins with sustained domestic demand, as Egypt's population exceeds 112 million, with approximately 35% under the age of 19, ensuring that demand for bread and flour-based products will remain consistently high.

At the same time, the market is expected to experience increased local wheat processing, as a domestic wheat production of over 10 million tons forces millers to adapt their operational parameters, in turn accelerating the need for EMTC's training and technical support on handling local wheat varieties.

On the commercial front, export growth remains a strategic priority, pushing local mills to optimize their operations to meet international markets and strict quality standards. Meanwhile, the adoption of automation will continue to accelerate as more facilities seek guidance and training on implementing digital monitoring solutions.

For EMTC, these market dynamics directly translate into increased demand for advanced and specialized training programs, particularly those focused on smart milling technologies, alongside expanded consultancy services for mills seeking to penetrate export markets. This outlook will fuel a higher reliance on EMTC's laboratory and quality assurance services to help mills meet global benchmarks, while boosting the necessity for customized in-plant training and field-based problem-solving support.

8-Are you seeing stronger production activity or investment appetite among clients compared with 2025?

We are seeing clear indicators of stronger production activity and investment appetite among our clients compared with 2025. This momentum is heavily driven by private-sector growth, as private-sector participation in wheat imports has dramatically increased to nearly 76%, the highest level in two decades, demonstrating a more dynamic and commercially driven market.

A strong export orientation also underpins this trend, with Egyptian flour exports remaining a key strategic focus that actively encourages local mills to invest in optimizing their production for international markets. Furthermore, there is a visible rise in the market's interest in automation, reflected in a growing demand for advanced training programs, particularly in electrical systems, quality control, and smart milling technologies, signaling that mills are systematically preparing for technological upgrades.

However, overall corporate investment remains cautious due to ongoing economic pressures and the high costs of technology implementation, which EMTC is actively addressing by offering tailored consultancy and step-by-step implementation guidance.

9-Which indicators: production, imports, exports, or demand, matter most when assessing the sector’s momentum today?

While all indicators provide valuable insights, imports and exports currently offer the clearest picture of the sector's momentum.

The import composition reveals a market-driven structural change, as the significant shift in wheat imports—with the private sector becoming the dominant importer—directly signals increased private-sector confidence and active investment. This is paired with export performance, where flour exports serve as the primary outlet for surplus milling capacity and a key driver of growth, making export data a critical indicator of overall sector health and international competitiveness.

Meanwhile, domestic demand acts as a constant and reliable driver due to Egypt's population growth rate of 1.5%. However, it is ultimately the shifting market dynamics of imports and exports that reflect the sector's strategic evolution. Local production trends, highlighted by a 6.5% increase in domestic wheat production, serve as a significant indicator of changing supply dynamics and showcase the sector's ability to adapt to more locally sourced grain.

10-Egypt’s wheat imports declined to about 12.5 million tons in FY 2025/26, while local wheat production rose by more than 6.5%. How do these shifts affect the outlook for the milling sector?

These shifts represent a significant and positive structural change for the milling sector, with several profound implications. They lead to a reduced import dependency, as lower import volumes actively help stabilize the supply chain and shield the sector from global price volatility, thereby enhancing national food security.

However, this trend triggers specific adaptation requirements, as millers must swiftly adapt their processes to handle a greater volume of local wheat, which often differs in quality and milling characteristics from imported varieties. Subsequently, this increases the need for technical support and training, a core EMTC service area.

This shift is paired with an intense quality focus, as greater overall reliance on local wheat makes maintaining consistent flour quality paramount, thereby driving demand for advanced quality control and laboratory services.

Commercially, this transition bolsters export competitiveness, as efficiently processing local wheat at competitive costs can enhance the competitiveness of Egyptian flour in regional export markets. These supply dynamics incentivize an investment in technology, pushing mills to invest in modern, flexible equipment capable of smoothly handling diverse wheat origins.

In light of this, EMTC’s strategic response includes enhancing specialized training programs to cover local wheat processing, strengthening laboratory and quality assurance services, and actively supporting mills in optimizing their operations for this new supply reality.

11-What does a more resilient and competitive milling industry in Egypt look like over the next few years?

A more resilient and competitive Egyptian milling industry by 2030 will be defined by several key strategic characteristics. The sector will transition toward a consolidated and efficient market structure, moving away from its current market fragmentation to minimize price wars while placing a greater, high-margin focus on quality and value-added products. This shift will be underpinned by advanced technology adoption, where mills become technologically sophisticated by leveraging automation, digital monitoring, and smart technologies to enhance overall productivity, extraction efficiency, and strict quality control.

Commercially, the future of the sector relies on export-oriented growth, transforming the industry into a significant exporter of high-quality flour and related products to diverse markets across Africa and the Middle East, which effectively utilizes surplus capacity while generating vital foreign currency.

This operational evolution will be supported by a highly skilled workforce, ensuring a continuous pipeline of qualified professionals—developed through specialized institutions like EMTC—who are fully capable of operating modern equipment and navigating the deep complexities of the global grain trade.

Finally, the industry will achieve resilient supply chains through the greater utilization of local wheat, which, when backed by efficient processing technologies, will systematically reduce import dependency and enhance long-term national supply-chain stability.