Ethiopia Finishes Awarding Contracts for 1 Million Ton Wheat Tender Nov. 12, 2015
The Government of Ethiopia (GOE) has reportedly completed the process of awarding contracts for the previously-announced 1.0 million metric ton wheat tender. The range of accepted prices was $233-243 per metric ton. Deliveries are expected within the next four months. Most, if not all, the wheat will likely be sourced from the Black Sea region.
The Government of Ethiopia (GOE) has finished awarding contracts for the 1.0 million metric ton wheat tender which had been released in late October 2015. About half a dozen international grain traders will supply the purchased amount. The range of accepted prices was $233-243 per metric ton. Deliveries are expected within the next four months. This news comes a couple days after the weekend press (November 7-8) reported that the tendered amount was almost filled.
The wheat tender was a restricted offering made in late October with a closing bid date of November 5. The procurement was done in a restricted format because of the urgent need to quickly purchase wheat to address humanitarian needs due to the El Nino-caused drought conditions in parts of the country. Of the purchased amount, 400,000 metric tons is expected to go to the Ministry of Agriculture to address immediate food assistance needs in drought-affected regions, while the remainder will be used by the Ethiopian Grain Trade Enterprise (EGTE). Post believes that some of the EGTE-held wheat will likely be used for subsidized bread and could also be used for food assistance purposes.