Bunge begins legal proceedings to export rejected wheat cargo to Egypt

Global agribusiness and food company Bunge has begun legal proceedings against the Egyptian government after a cargo of French wheat was rejected by the latter.

The New York-listed company is determined to complete its delivery of the rejected grain through legal action against the grain importing body of Egypt, the General Authority for Supply Commodities (GASC).

GASC rejected the delivery in December after it claimed the grain was contaminated with a large amount of fungus called ergot.

Egypt’s grain authority allows ergot levels of up to 0.05% in its imported wheat.

Bunge CEO Soren Schroder told the Financial Times the import met the country’s specifications for ergot.

Egyptian inspectors also cleared the cargo before it was loaded for shipment.

Schroder was quoted by Reuters saying: "Their rejection of the cargo does not make any contractual sense.

"We just want to execute the contract."

The company filed the legal suit against GASC in an administrative court of Egypt.

Schroder added that legal proceedings was intended to protect ‘our legal rights under a contract, which we have executed on according to the conditions.’

Egypt purchases approximately 11 million tonnes of wheat annually.

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Image: Egypt’s grain authority allows ergot levels of up to 0.05% in imported wheat. Photo: courtesy of Dan / Freedigitalphotos.