"Gone are the days when Egyptian oranges were undervalued and marginalized in the market. We are now in an era of valuation and fair prices," says Mohamed Khamis, export manager at Sama Agro. According to Khamis, this is due to lower production in Egypt, better logistics conditions in the Red Sea, and the emergence of orange factories in Egypt.
The exporter states: "For a long time, Egyptian oranges were marginalized on the European market due to overproduction. Despite their quality, Egyptian oranges suffered from a bad reputation as a cheap product. It must be said that there were too many Egyptian citrus fruits looking for buyers; in addition to the supply from Spain, the United States, Chile, Argentina, and many other origins."
© Mohamed
The situation has begun to change in the last two years, initially due to the climate factor. Khamis says, "There was less production in Spain and Egypt alike, which helped to increase the value of Egyptian oranges. The crisis in the Red Sea disrupted this balance, as fewer Egyptian oranges were arriving in Asia and were redirected to the European market."
"At the same time, China has been able to regain market share in several East Asian markets. On the positive side, this has contributed to a higher valuation of Egyptian oranges in these markets, and we are now making a strong comeback as the logistical situation in the Red Sea gradually improves and demand in these orange-hungry markets remains strong," the exporter continues.
The big surprise came last season, with the rapid emergence of orange concentrate factories. Khamis says, "The speed with which these factories were set up and reached high production levels surprised everyone, even Egypt. These new players managed to absorb nearly a third of last season's production, and we expect them to absorb half of next season's production. A dozen new factories will add to the landscape very soon, bringing their total consumption to over one million tonnes of oranges." Other estimates from various sources predict that industrial consumption of oranges will reach two million tons per year soon, when factories reach full capacity.
"We view this positively. Broadly speaking, I expect Egyptian exports of fresh oranges to be reduced by half starting next season. With the situation in the Red Sea almost back to normal, this means a balance in exports to different markets, both in Europe and East Asia. Even if production volumes increase next season, trade will be healthier and Egyptian produce will be better respected on the market," Khamis concludes.
For more information:
Mohamed Khamis
Sama Agro
Tel: +201212233050 / +201287458751
Email: [email protected]
www.samaagroexports.com