Libya aims to increase wheat imports to 2.5 million tonnes per year from 1.0 million tonnes once flour milling capacity has been expanded, the General National Company for Flour Mills and Fodder said on Sunday. Libya imports one million tonnes of wheat it then turns into flour at its mills, but this only covers 25 percent of its needs. The north African country also buys a large quantity of ready-made flour.
As part of Libyan leader Muammar Gaddafi's drive to open up the economy, Tripoli has invited foreign companies to invest in the agriculture sector and help build mills with local firms.
"Through the increase of investments in the mills field, the demand on wheat is expected to rise in Libya to 2.5 million tonnes annually," Mohammed Zaidan, chairman of the state-run company, told Reuters.
Because of its barren terrain, Libya must import most of its food for its 5.7 million people.
US Wheat Associates, which promotes American grain sales abroad, said recently Libya typically buys about 750,000 tonnes of wheat a year and up to 800,000 tonnes of flour and semolina.
US agriculture industry is keen to tap into Libya - expected to import $1 billion worth of agricultural products in 2004 - now that US sanctions have been lifted.
"It is in our interest to be open on all world markets...We know that all types of wheat useful for food industries are in America," Zaidan said.
Libya has created more than six private companies it wants to turn wheat into flour and is inviting foreign firms to set up joint ventures with them. They are currently getting contracts to be able to purchase necessary equipment.
The US Wheat Associates and Libya's General National Company for Flour Mills and Fodder held a rare seminar in Tripoli on Sunday on the quality of the 2004 US wheat harvest and world wheat supply and demand.
In September, US President George W. Bush formally ended the American trade embargo on Libya to reward it for abandoning weapons of mass destruction programmes.
Previously, Libya was allowed to buy American commodities, but without US government assistance. For example, in 2000/2001, Libya bought 352,000 tonnes of American wheat, according to US industry figures.
In August, Libya received a US shipment of 35,000 tonnes of wheat, the first direct shipment from the United States in two decades.
Libya imports wheat from Germany, Argentina, Canada, Hungary and France.
Early next year Libya is hosting wheat seminars with Canada and Australia to boost bilateral trade.
Comments
Comments are closed.