(Ecofin Agency) - • Egypt is doubling the storage capacity of its main edible oil terminal in Alexandria to 150,000 tons to improve food security.
• The move comes amid growing domestic demand and global price volatility, with soybean oil imports set to quadruple in 2024/2025.
• The project is part of a national strategy to upgrade storage and distribution infrastructure for critical food supplies.

Egypt, Africa's leading importer of edible oil, is investing in an expansion of its logistical and storage capacity to mitigate the effects of rising domestic demand and recurring global market tensions on its edible oil supply.

The Egyptian government has initiated work to double the storage capacity of the Max station, an edible oil terminal based at the port of Alexandria, according to Sherif Farouk, Minister of Supply and Internal Trade, on May 27. Local media reports suggest that the public enterprise, Holding Company for Food Industry, will manage the facility, expected to boast a storage capacity of 150,000 tons upon completion, up from the current 72,000 tons.

“This expansion falls within the government’s comprehensive plan to modernize the edible oils' storage and distribution system, ensuring increased efficiency and improved food security,” Farouk stated. He further commented that the undisclosed cost of the project would also enhance Egypt's ability to manage supplies of raw and refined oils, cushioning the impact of global market disruptions.

This proactive decision by the Egyptian authorities is set against a backdrop of anticipated increased imports of certain edible oil categories this year. According to the latest forecasts from the U.S. Department of Agriculture (USDA), Egypt’s soybean oil imports between October 2024 and September 2025 are projected to quadruple to 150,000 tons.

The soybean market, in turn, is prone to significant fluctuations that impact the soybean oil market. The USDA pointed out in its May 2 report on the global oilseeds market that soybean prices have rebounded after a brief drop in early April, following the announcement of U.S. tariffs.

As of May 27, crude soybean oil prices on the Chicago Mercantile Exchange (CME) closed at 49.57 cents a pound, showing an 11% increase from the April 8 closing price of 44.94 cents a pound.

Besides soybean oil, Egypt’s main edible oil imports also include palm oil and sunflower oil. According to USDA projections, Egypt is expected to import a total of 1.8 million tons of edible oil by the end of the 2024/2025 marketing campaign.