Bread Crisis in Egypt

Bread is a symbol of survival

1-More developed countries set balance between salaries and commodity prices. Consequently, there are many food prices in Egypt are higher than those of more economically powerful countries.
2-The manufacturers are unwilling to invest in order to expand their production lines, meaning that current production is unable to meet growing demand. 3-The absence of the states playing a role in supervising markets and greedy retailers. 4-Cultivated land and livestock are not commensurate with the growing population. 5-Burdened customs and taxes on imported food commodities.

Reasons for bread crisis: Shortage in supply: 1- Political reason 2-Economical reason 3- Ethical 4-Subsidies and Black market average consumption per capita in Egypt = 100 KG per year while in any other country about 75 KG per year

Reasons for bread crisis: Increase in demand: 1- the result of bread shortages

2- The increasing population

3- 1 in 4 Egyptians is living below the poverty line and his income only affords the subsidized bread.

Subsidies versus black market: A black market or underground economy is the market in which goods or services are traded illegally. The key distinction of a black market trade is that the transaction itself is illegal. The goods or services may or may not themselves be illegal to own, or to trade through other, legal channels. Because the transactions are illegal, the market itself is forced to operate outside the formal economy, supported by the established state power. 1- Subsidy is essential due to political unrest. 2- Subsidies create incentives for the emergence of the black market. 3-Subsidy program does not target the poor.

Proposed solutions: 1- Government supervision.

2- Launching of a mass production initiative.

3-Increasing Production of wheat

4- Developing agricultural methods.

5- Liberalization of bread industry.

Thank you for listening