Blumberg Grain has struck agreements to contract with Egypt and Algeria for monumental projects in developing one of the world’s largest food security systems to help the governments improve citizens’ food access. The company’s sophisticated digital platform would create control centers to oversee every facet of grain storage that now takes place in open-air sites that are often built of sand and dirt.
These projects would help not only provide food but also reduce waste and post-harvest losses of grain, especially wheat, where globally nearly 60% is lost due to outdated storage that exposes food to rot. The Blumberg Grain technology that would be brought to Egypt consists of the highest levels of grain conditioning, inventory management, grating, access management, security management and a slew of other enhanced features to create ideal conditions for grain handling and storage.
This is especially important to Egypt, which is the world’s largest importer of wheat; Algeria is a close second within Africa. At this point, Egypt stores wheat in open-air storage facilities called shounas, which the CEO of Blumberg Grain, David Blumberg, said consist of sand and dirt. Agriculture and processing centers are in implementation stages where over 300 centers would be installed under the contract to provide full coverage across 22 of the 27 governorates of Egypt for wheat harvest procurement. KPMG, which provides audit, tax and advisory services, estimates the project would save the Egyptian government $550 million annually in waste.
The project in Algeria is on the same size and scale as Egypt. Algeria also has inefficiencies in wheat storage, according to David Blumberg. In development is a network of 200 facilities all across Algeria to store wheat in bulk. The configuration is different from in Egypt, because Blumberg Grain designed the program to be specific to the environment and context of Algeria. Algeria has more than 400 sites for locally harvested crops, but these open-air pits and sheds provide poor quality storage. The government today has about 2 million tons of local wheat storage capacity.
Within Africa, Blumberg Grain is looking to expand its presence in Senegal, the Democratic Republic of the Congo and Nigeria, places where contacts have already been made. Apart from creating better food access, the projects would help combat famine and stabilize the food supply chain, which can incidentally lead to fewer protests or riots, according to David Blumberg.