14/10/2020
In April 2018, a cargo ship carrying 63,000 tonnes of Ergot-infected wheat sailed from the Russian port of Novorossiysk, across the Black Sea, to the Egyptian port of Safaga.
This wheat shipment, imported by the Egyptian General Authority for Commodities and Supplies, the biggest purchaser of Russian wheat in the world, wasn’t the first found to be contaminated with the toxic fungus, in 2009 another Ergot-infested shipment of Russian wheat was unloaded in the same port. This was a turning point that threw away consumer protection guidelines that used to apply stringent controls over compliant wheat imports.
Initially, the government of the then-prime minister Ahmed Nazif banned the entry of shipments infested with Ergot, under the pretext that they were unfit for human consumption. Yet the following year its decision was revoked, as the government changed its wheat import criteria in contravention of the 2001 Plant Quarantine Rules & Regulations.
Egypt largely relies on importing low-quality types of Russian wheat, especially since the suspension of the Wheat Farmers Support program at the beginning of 2017, which led to local wheat crop decline. This resulted in a 12% decline in domestic production in three years; from 9.3 million tonnes in 2016 to 8.1 million tonnes in 2019.
This investigation reveals how the Egyptian government allowed the entry of ergot-infested wheat to end up as bread on Egyptians dinner tables, in proportions exceeding Egypt’s standards, and those internationally permissible limits and in contravention of the Egyptian Plant Quarantine legislation. From 2010 to 2016, 27 million tonnes of wheat reached Egypt.
The consumption of ergot infested wheat can cause serious medical side effects including miscarriage, narrowed blood vessels, dysfunction of the central nervous system, uterine contraction and gangrene, which can cause death.
The shipment of Russian wheat that arrived in 2018 did not fit the Egyptian Specification Standards, according to a sample analysis conducted by ARIJ reporter.
The reporter also found that the Commodities and Supplies Authority - revoking a previous ban – allowed the entry of ergot-infested wheat.
After Egypt modified its main specification standards for importing wheat in 2010, consignments of Russian wheat arriving to the country gradually increased, according to the annual report issued by the Egyptian Ministry of Supply.
Solaris, a Swiss company specialized in agricultural inspections, warned in 2017 that the Egyptian Commodities and Supplies Authority has been purchasing low quality Russian wheat.
Russian wheat is graded on a scale of one to five, with the first three categories being of the best quality, and the fourth and fifth grades were considered to be failing the lowest set standards. The Solaris report found that Egypt has been importing the fourth category.
On March 29, 2018, the Commodities and Supplies Authority launched a bid to import an unspecified amount of wheat to be shipped on board a cargo vessel called “DIAS”. Ten companies - eight Russian, one French and one Romanian – presented their bids. Although Russian wheat was not of the best for quality, it won the bid due to the fact that the distance between Russia’s two main ports on the Black Sea and Egypt’s Safaga port was the shortest. Russian wheat also became the preferred choice of the Commodities and Supplies authority since it was possible to order wheat and ship it to Egypt within six weeks.
Russian wheat eventually became the preferred option for Egypt, since its prices in the Commodities Authority’s bids were in line with those prices set for Russian wheat, according to a 2018 report issued by the German Leibniz Institute.
“These conditions led to the closure of the U.S. Wheat Associates office in Cairo in October 2017, 40 years after its foundation,” according to Steve Mercer, vice president of the association’s contact unit.
Mercer, in an email to ARIJ, describes the authority’s condition reducing the order-shipment arrival time limit to six weeks a "consistent disadvantage", despite the fact that "the shipping costs from the East American ports are close to the shipping costs from the Black Sea ports.”
A Food and Agriculture Organisation FAO study published in 2018 claims that Egypt’s reliance on short term bids and the reduced shipping period, "has lost the Egyptian government between 25 and 30 million dollars annually." The UN organisation attributes the loss to the fact that wheat suppliers usually raise the price of express orders of wheat by $6 or $7 compared to the regular market price without an express delivery clause.
The FAO concluded that the authority resorted to short-term express orders due to the lack of adequate well maintained storage silos. Egypt had launched a project in 2015 to construct 50 wheat and grain silos to be spread across 17 governorates, with a total storage capacity of 1.5 million tonnes. But problems related to the lack of storage controls and quality assurance led to a permanent cancellation of the project as discovered by an ARIJ investigation published in 2014.
The Commodities and Supplies Authority has declined to comment on the issue on multiple occasions.
About a thousand kilometres from Moscow, a yellow colour taints the wheat of Krasnodar. There, amid the cold breeze and fading sun of May, farmers struggle in difficult conditions to collect the crop, before it is transported by river barges to grain silos storage facilities ahead of the start of the next wheat marketing season in January, February and March.
“The purchase of large quantities of wheat during the first three months of the year at a reduced price is due to its low-quality, consisting of dust and impurities," Dr. Mohamed Yousry Hashem told ARIJ.
Dr Hashem is the head of the first governmental committee to examine the quality of Russian wheat, formed in 2008 after a decision by the Egyptian Public Prosecutor following the appearance of what was known at the time as “rotten Russian wheat”.
About a thousand kilometres from Moscow, a yellow colour taints the wheat of Krasnodar. There, amid the cold breeze and fading sun of May, farmers struggle in difficult conditions to collect the crop, before it is transported by river barges to grain silos storage facilities ahead of the start of the next wheat marketing season in January, February and March.
“The purchase of large quantities of wheat during the first three months of the year at a reduced price is due to its low-quality, consisting of dust and impurities," Dr. Mohamed Yousry Hashem told ARIJ.
Dr Hashem is the head of the first governmental committee to examine the quality of Russian wheat, formed in 2008 after a decision by the Egyptian Public Prosecutor following the appearance of what was known at the time as “rotten Russian wheat”.
Up until November 2016, Egyptian government officials used to participate in the examination and analysis process of goods in the country of origin. But after the 2016 ergot ban crisis, the Egyptian Cabinet issued a decision to dismiss government committees and limit the government committee’s role to monitoring the unloading of cargoes at Egyptian ports.
The General Authority for Commodities and Supplies has contracts with five international companies to examine wheat consignments at the port of origin: "Intertek, Cotecna, SGS, Control Union, Inspectorate, and Comibassalthe local Egyptian company," according to Ali Hassan, an agricultural division official at Control Union.
Up until November 2016, Egyptian government officials used to participate in the examination and analysis process of goods in the country of origin. But after the 2016 ergot ban crisis, the Egyptian Cabinet issued a decision to dismiss government committees and limit the government committee’s role to monitoring the unloading of cargoes at Egyptian ports.
The General Authority for Commodities and Supplies has contracts with five international companies to examine wheat consignments at the port of origin: "Intertek, Cotecna, SGS, Control Union, Inspectorate, and Comibassalthe local Egyptian company," according to Ali Hassan, an agricultural division official at Control Union.
Dr. Ali Suleiman, the former head of the Department of Agricultural Quarantine, told ARIJ that "they cannot implement agricultural quarantine due to lack of experience, as most of those companies are specialised in quality control only, and their opinion on quarantining is insignificant.”
Control Union, one of the companies contracted by the Commodities and Supplies Authority to examine wheat consignments, explains that inspection companies adhere to the rules of Grain and Food Association.
"The role of inspection companies is limited to measuring the proportions of protein, gluten and dead insects in wheat shipments," Ali Hassan added.
Eventually, the DIAS cargo ship sets off on a four-week trip from the Novorossiysk port towards the port of Safaga, with 63,000 tons of wheat inside seven hangars after being given the ok by the inspection commission of the International Inspection Company.
Dr. Ali Suleiman, the former head of the Department of Agricultural Quarantine, told ARIJ that "they cannot implement agricultural quarantine due to lack of experience, as most of those companies are specialised in quality control only, and their opinion on quarantining is insignificant.”
Control Union, one of the companies contracted by the Commodities and Supplies Authority to examine wheat consignments, explains that inspection companies adhere to the rules of Grain and Food Association.
"The role of inspection companies is limited to measuring the proportions of protein, gluten and dead insects in wheat shipments," Ali Hassan added.
Eventually, the DIAS cargo ship sets off on a four-week trip from the Novorossiysk port towards the port of Safaga, with 63,000 tons of wheat inside seven hangars after being given the ok by the inspection commission of the International Inspection Company.
On the evening of May 24, 2018, DIAS arrived at dock No. 1 at the port of Safaga. The shipment was received for examination by a governmental committee under the authority of the General Authority for Export and Import Control, in accordance with both the Egyptian specification for wheat imports issued in 2010 and the Agricultural Quarantine Law.
The reviewed wheat import standard specification contradicts those of the Agricultural Quarantine Law, as the former authorises the entry of wheat infested with ergot fungus by a percentage set at no more than 0.05%, whereas the Agricultural Quarantine Law bars any of import wheat infested with ergot entirely.
Egyptian specifications approved in 2010, was the main reason the doors were opened to ergot-infested Russian wheat, as specifications from 2005 invoked agricultural quarantine laws in terms of measuring and proportions of toxic fungus in the wheat.
In 2010, a committee was charged with setting new standards and , Dr. Ali Suleiman a member of the committee at the time had opposed the amended standards.
"Our position was clear," he told the reporter, "we should adhere to the original quarantine legislation." However, contrary to his desire, the committee insisted on empowering other stakeholders to amend the standards in violation of the Agricultural Quarantine Law.
On the evening of May 24, 2018, DIAS arrived at dock No. 1 at the port of Safaga. The shipment was received for examination by a governmental committee under the authority of the General Authority for Export and Import Control, in accordance with both the Egyptian specification for wheat imports issued in 2010 and the Agricultural Quarantine Law.
The reviewed wheat import standard specification contradicts those of the Agricultural Quarantine Law, as the former authorises the entry of wheat infested with ergot fungus by a percentage set at no more than 0.05%, whereas the Agricultural Quarantine Law bars any of import wheat infested with ergot entirely.
Egyptian specifications approved in 2010, was the main reason the doors were opened to ergot-infested Russian wheat, as specifications from 2005 invoked agricultural quarantine laws in terms of measuring and proportions of toxic fungus in the wheat.
In 2010, a committee was charged with setting new standards and , Dr. Ali Suleiman a member of the committee at the time had opposed the amended standards.
"Our position was clear," he told the reporter, "we should adhere to the original quarantine legislation." However, contrary to his desire, the committee insisted on empowering other stakeholders to amend the standards in violation of the Agricultural Quarantine Law.
On Dock No. 1 inside the port of Safaga, the government committee took samples from the wheat loaded on DIAS. After examining it, agricultural quarantine employees refused its entry into Egypt due to the recorded presence of ergot at 0.06%; exceeding the standard specification issued in 2010, which allows the entry of fungus, but by a rate not exceeding 0.05%.
However, the Egyptian Cabinet headed by Sherif Ismail (Egypt’s prime minister between 2015 and 2018) allowed the wheat loaded on the "DIAS" ship to enter after ordering analysis of different samples. The new samples recorded the presence of ergot at 0.01%.
On Dock No. 1 inside the port of Safaga, the government committee took samples from the wheat shipment on DIAS. After examining it, agricultural quarantine employees refused its entry into Egypt due to the recorded presence of ergot at 0.06%; exceeding the standard specification issued in 2010, which allows the entry of fungus, but this should not exceed 0.05% limit.
However, the Egyptian Cabinet headed by Sherif Ismail (Egypt’s prime minister between 2015 and 2018) authorised the unloading of "DIAS" after the analysis of an alternative sample that showed infestation level of Ergot not exceeding 0.01%.
But this was not the first shipment rejected by employees of the State Committee for Export Control. In 2016, another shipment was refused due to high rate of ergot.
Filia Arriagada told ARIJ’s reporter via email that the Egyptian government did not entrust her with conducting a specific study on the dangers of ergot fungus in wheat, stressing that the request came via FAO based on a special contract signed with the international organization.
However, the scientific committee charged by the Egyptian Ministry of Agriculture refutes Arriagada’s report, calling it "non-binding, not real and a hypothetical study." In its August 2016 report, the committee revealed that a practical experiment refutes the hypothesis. It found that "the average temperatures in the governorates of El Beheira, Minya, Sohag, and Qena were appropriate for ergot to reside and flourish.”
The Scientific Committee estimates a loss for Egypt - if ergot fungus contaminate its soil - oil – of about 5% to 40% of the acre's productivity. The fungus also leads to a decrease in wheat’s quality and price.
This is consistent also with a report issued in mid-2016 by the technical committee charged by the Public Prosecution to disclose the risks of ergot. That committee demanded the implementation of Resolution No. 906 of 2012, which requires the implementation of the Agricultural Quarantine Law to ban imported wheat contaminated with Ergot. However, the government did not abide by this despite its awareness of the judicial order.
In August 2018, ARIJ’s reporter waited at the port of Alexandria for the arrival of a new shipment of wheat from the Novonorsk port, less than a month after its import contract was signed. The 175,000 tons of wheat arrived on three cargo ships.
With the help of a contact inside an oversight body who requested anonymity, the investigator obtained a sample for analysis. The sample was then tested with the assistance of a specialist at the Agriculture Ministry’s Regional Center for Food & Feed.
The result of the analysis issued in October 2018 revealed that the percentage of impurities and ergot in that sample exceeded 5.6% - significantly above the permitted levels as per Egypt’ standard specification of 0.05%.
A document issued in 2009 by the European Food Safety Authority had questioned the effectiveness of "mechanical separation" in removing ergot from wheat, especially that the fruiting bodies of the fungus usually disintegrate during transport. The document recommended the use of physical separation methods, most notably "electronic separators" or "color sorters" which are not used in Egypt. But even with the use of such technologies, it is unlikely to totally remove the fungus, according to the European Authority, which also warns against the risk of human poisoning as a result of consuming ergot contaminated bread.
Both the FAO at the UN’s 40th session in July 2017, and the World Health Organization at its 11th session in Brazil in April 2017, have recommended using Color Sorters to separate ergot and remove its fruiting bodies. Neither mentioned sieving as a method for ergot fungus separation.
Professor of Biological Agriculture at the University of Menoufia’s Institute of Genetic Engineering Research, Dr. Fathi Salem, explains that a 0.05% intake of ergot will cause cumulative health problems.
Dr. Salem added that he found that a loaf of local bread, whose weight ranges between 110 to 125 grams, will contain 48 to 52 milligrams of ergot.
He also confirms that ergot is the most harmful fungus to the human body and plants, because the fruiting bodies in the fungus contain active substances the most common is called Ergotamine.
Dr. Salem concludes that the International Food Codex allows 0.05% of ergot based on the average consumption of 60 to 63kg of wheat annually per person, at a monthly rate of around 5kg. This equation applies to the European individual, but the Egyptian citizen consumes three times this rate -– from 180 to 210kg annually.
The Egyptian government, represented by the Ministry of Supply, entered into an agreement with WHO to improve the quality of imported wheat. This project though, became obsolete in 2012, four years after its launch, due to its discontinued funding according to Adel Tolba, the agent of the Egyptian company which supervised the project that worked to remove the ergot by chemical treatment during the grinding process.
