Egypt, Kekkilä-BVB review plans for alternative soil factory in SCZone

Egypt is considering the construction of a local factory to produce alternative soil, with the aim of reducing imports, cutting agricultural costs, and promoting modern, high-value farming and exports. Minister Khaled Hashem discussed the company's plans with Pekka Tennilä, CEO of Kekkilä-BVB, who is partnering with Egyptian agritech firm Agriventure.

The facility is intended for the Suez Canal Economic Zone and will manufacture alternative growing soil for precision farming. Hashem emphasized that localizing the production of alternative growing soil is a strategic priority to support modern and protected agriculture, enhance value addition in agro-industrial manufacturing, and reduce production costs.

He further highlighted the importance of deploying advanced technologies and innovative solutions in agriculture to conserve water, improve resource efficiency, and boost the growth and competitiveness of agro-industrial projects. Kekkilä-BVB officials stated that alternative growing media constitute about 30% of precision farming costs, underscoring the significance of local production in reducing agricultural expenses.

The factory will cater to the domestic market while expanding exports to European, African, and Arab regions. Hashem also suggested that Agriventure could join Egypt's "Productive Village" initiative, aimed at supporting balanced industrial development and reducing illegal migration by leveraging each governorate and village's unique strengths.

The initiative provides small industrial workshops, concessional financing for small investors, and technical support to integrate small businesses into supply chains. The initiative also includes identifying each village's comparative advantages and potentially allocating sites for precision-farming projects, particularly in regions known for producing medicinal and aromatic plants and export-oriented crops.