Egypt Explores Local Alternative Soil Production to Boost Modern Agriculture and Cut Import Costs

Egypt is currently exploring the establishment of a local factory dedicated to producing alternative soil, a strategic move aimed at cutting imports, lowering agricultural production costs, and supporting the expansion of modern, high-value farming and agri-exports.

Industry Minister Khaled Hashem recently held discussions with Pekka Tennilä, CEO of Kekkilä-BVB, concerning the company's plan to establish a new facility in Egypt in partnership with the Egyptian agritech company Agriventure. The proposed facility is slated for the Suez Canal Economic Zone, where it will produce alternative growing soil designed for precision farming.

Minister Hashem emphasized that localizing the production of alternative growing-soil is a key strategic priority. The initiative is designed to support modern and protected agriculture while increasing the value added in agro-industrial manufacturing. He further noted that agricultural manufacturing technologies remain among the ministry's top priorities for linking scientific research with industrial outputs, meeting strict export requirements, reducing production costs, and narrowing the import gap.

The minister also underscored the importance of deploying advanced technologies and innovative solutions across various productive activities, specifically those that help conserve water and enhance resource efficiency in agriculture. According to Hashem, these solutions will bolster the growth and competitiveness of agro-industrial projects while strengthening their overall export potential.

Officials from Kekkilä-BVB pointed out that alternative growing media account for roughly 30% of the total cost of precision farming, which highlights the critical role of local production in driving down agricultural expenses. The planned factory will cater to the domestic market while simultaneously expanding exports to European, African, and Arab markets.

Additionally, Minister Hashem suggested that Agriventure could participate in the ministry's "Productive Village" initiative, particularly in rural areas known for possessing a competitive edge in medicinal and aromatic plants as well as export-oriented crops. This initiative aims to foster balanced industrial development, curb illegal migration, and manage population movement by leveraging the unique comparative advantages of each governorate and village.

The program includes the provision of small industrial workshops and complexes, concessional financing for small-scale investors, and technical support to seamlessly connect small businesses with medium- and large-scale factories, thereby strengthening supply-chain integration. Hashem concluded that Egypt’s comprehensive industrial map will assist in identifying the comparative advantages of individual villages and potentially allocate optimal sites for future precision-farming projects.