Among the many obstacles to agriculture in Egypt, consider this: The nation's population occupies just 5% of the country's total land, with agricultural activities focused primarily in the strip along the Nile and in the Delta. It's little wonder, then, that a man accustomed to fighting hippopotami on extensive fishing trips in Africa has been able to survive and thrive on the Egyptian agricultural front.
"Never lose hope," says Ahmed Kamel, chairman and managing director of Misr Pioneer, the nation's leading seed producer. "One should always hope for the best. I remember there were times when I'd spend many days fishing without catching anything. That feeling created a vision in my own professional life never lose hope and the best will come."
Indeed, after working for more than ten years for Pioneer, mainly in Southern and West Africa, Kamel had an important role to play in Egypt. He returned to his native country with one objective in mind: "To reform the seed business in Egypt."
When he returned in 1993, the company was losing $4 million a year. "That was one of the biggest challenges of my life, especially because [Pioneer International] thought of closing down the business in Egypt at that time due to losses. However, we have now become Pioneer's best operating company and were ranked number one last year in the group."
Misr Pioneer, established in 1983, is a subsidiary of Pioneer Hi-Bred International, Inc. In the beginning, says Kamel, the goal was to establish a research station to produce good quality crops and close the country's nutrition gap.
The company produces hybrid corn seeds that provide high-yield crops of white and yellow corn. The company established what Kamel refers to as "the country's biggest and most technologically advanced seed-processing and -conditioning plant" in Munufeya. All of its seeds are produced locally for markets in Egypt, Pakistan, Saudi Arabia, Libya, and the United Arab Emirates.
"When I took over, our market share was between 3 and 4%, and then it moved up 'til it reached 28% last year; we expect it to reach 32% this year," says Kamel. The turnaround in the bottom line has been just as dramatic as the company moved from net losses of $4 million a year in the last decade to a net profit of $6 million in 2005.
"We sold 3,500 tons of yellow and white corn seeds last year and were ranked number one in Egypt." Kamel plans to aquire a 40% market share within the next two years. "We expect to increase our export surplus by 15%, and we have a vision to reach a $10 million net profit by 2008."
The seed industry faces more than a few obstacles: To produce good seeds, agricultural plots must be isolated and far enough away from each other that they avoid contamination.
"It is very hard to do that in Egypt based on land division. Consequently, most seed companies compete to get their own land, which means seed manufacturer pay high premiums because they need to be able to guarantee protection of their crops, which in turn has increased seed prices in the country."
Kamel says Egypt will continue to face serious problems in producing hybrid seeds if companies start moving to single crossbreed seed production, which requires more land. Single crossbreed seeds are better quality seeds, but they account for less than 40% of production in Egypt.
"There are cheaters in the market that try to forge seed bags by selling farmers low-quality. The government has to enforce stricter quality control standards," Kamel says.
"The seed industry largely depends on the genetic composition of seeds, and farmers cannot tell whether seeds are of good quality or not except after buying and planting them." He boasts that Misr Pioneer is the only company in Egypt that uses DNA fingerprint technology to identify seed purity.
In the meantime, Kamel is looking forward to the government selling off its holdings in his sector. "Instead of competing with us, the government should let the private sector take over. It produces and sells seeds, and at the same time, it evaluates crops before being sold and has the right to prevent us from selling our crops."
Kamel suggests that the Ministry of Agriculture re-assess all companies involved in the seed business. There are 52 seed producers here, but only 50% of them are good enough to stay in the market without subsidies, he claims.
He also proposes that the government educate farmers on the advantages of sowing hybrid seeds, which have much higher yields when planted.
"Agriculture is quite tight in Egypt due to limited agricultural land, and we're not yet producing our maximum yield."
Ahmed Kamel (52)
Chairman and Managing Director, Misr Pioneer Seed Company
Education: BA Agriculture MSc Plant Genetics (Ain Shams University)
Mentor: His father, a scientist known for his work in the field of animal husbandry and artificial insemination
Best advice: You, yourself are heaven and hell.
By Sherine El-Madany
© Business Today Egypt 2006
