Key properties

Wheat is the world’s most important grain for human consumption. It requires a temperate climate with moderate rainfall during the growing season from autumn to spring. In the months before it is harvested, temperatures should be around 20°C to 25°C. 

 

Trade flow

Around 220 million mt of wheat was traded between countries in the 12 months to June 30, 2024. The five largest exporters – Russia, the EU, Australia, Canada and Ukraine – supplied the bulk of globally traded wheat. Trade is less concentrated on the import side, with the five buyers – Egypt, Indonesia, Algeria, the EU and China – accounting for 28%.  Russia has been the world’s largest exporter of wheat since MY 2017-18. That followed a surge in production, with yields almost doubling between 2000 and 2017, as the country’s farmers applied the latest technology, including pesticides and sensor-equipped tractors.

Russia’s share of exports has mostly continued to grow since then. Its most significant customer is Egypt, which captured 8.2 million mt in MY 2023-24, or roughly 3.7% of global trade. Over the past five years, Russia has consistently been the largest exporter of wheat to Egypt, averaging 6.72 million mt annually and accounting for more than half of Egypt's total wheat imports. Despite the ongoing Russia-Ukraine war, Egypt has increasingly relied on Russian wheat due to its competitive pricing and high quality compared to other global sources. 

When the Russian government imposed an unofficial price floor to prevent the sale of low-priced wheat, Egypt faced some challenges in its procurement strategy in tenders. During this period, the Egyptian state, which buys half of the country’s wheat imports, sought alternative, cheaper sources from Ukraine, Bulgaria, and Romania. However, even with these challenges, Russia continues to be the most significant supplier of wheat to Egypt.

 

Processing wheat

Wheat is processed into two main products: flour and bran.  The milling process begins with cleaning the wheat grains to remove impurities, followed by conditioning to ensure optimal moisture content. The grains are then ground into flour, separating the endosperm from the bran and germ. The main products derived from this process are flour for human consumption, and bran, commonly used as animal feed.  

In the European market, a significant portion of wheat is also allocated for biofuel production, in countries like Germany and France, where sustainability initiatives have increased the demand for biofuels. 

Egypt imports about 12 million mt of wheat annually for flour processing. The imports are split evenly between the state and private sectors. The state imports wheat to subsidize flour for Baladi bread, a staple for most Egyptians, while private importers cater to various sectors: about 15% for flour exports, 33% for industrial uses like pasta and biscuits, and 53% for bakeries and direct consumers. 

When milling one metric ton of wheat, a privately owned mill in Egypt produces around 720 kg of flour and 280 kg of bran. In contrast, state-owned mills, which focus on Baladi bread, achieve a higher extraction rate of 870 kg of flour. 

Alongside bran, lower protein wheat plays a crucial role in animal feed. It is an important component due to its high energy content and digestibility, making it a valuable ingredient in livestock diets like poultry and swine, as it supports growth and development during critical stages. For example, young chicks and piglets benefit from wheat's energy-dense properties, promoting healthy growth and weight gain. In some countries, such as Indonesia 2.6 million mt is utilized for this purpose. 

France is the largest wheat producer in the EU. France's wheat processing is pivotal for domestic use in flour milling, animal feed, starch and gluten manufacturing, and alcohol production, including bioethanol.

Authors: Aditya Kondalamahanty, Vivian Iroanya
Editors: Valarie Jackson, Meghan Gordon
Design: Content Design

 

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Atlas of Food

Dig deeper into each field-to-fork commodity to learn about its key price drivers, trade flows and processing.