A combination of several factors seriously affects the Egyptian citrus exports industry. The situation takes on significant proportions at the end of the season, in what Egyptian exporters now call “a crisis”, and has led to stopping citrus packaging in most of the country’s packaging centers this week. Osama Saleh, commercial director of Houdelnile, describes the situation.
The exporter says: “Everyone knows what we are experiencing this season. On the one hand, there is the current crisis in the Red Sea, which has had an impact on export activity, resulting in a 15 % drop in orange exports compared to a normal year. On the other hand, we have attended prolonged periods of high temperatures, even higher than the previous years, which had a negative impact on oranges, resulting in a drop in production volumes and smaller calibers. “
On the commercial level, things are no less complicated. Saleh declares: “Egyptian citrus fruits are confronted with competition from countries like Iran and Spain, but we manage to get out of it. However, this season, with the emergence of citrus processing factories in Egypt, many farmers now prefer to sell directly to fruit juice factories on the local market. The prices of oranges have experienced a significant increase in the past few days, approaching the 25 EGP per kilogram, About $ 490 per tonne, before any transformation or packaging! “
Exporters can no longer follow this increase, given the current prices of fresh oranges on the market. Saleh explains: “Usually prices are increasing towards the end of the season because it is more difficult to get quality oranges. But this year, prices are much higher due to the current situation and the emergence of citrus concentrates, which have radically changed the situation.”
“World markets have no other choice than to accept the rise in citrus prices and this new situation in general as a fait accompli. That’s it or stop working,” continues Mr. Saleh. It seems that work slowly resumes in the packaging centers, for lack of choice. Saleh says: “In Houdelnile, we have resumed the packaging of citrus fruits today. However, we have our own production and sufficient volumes to cover the needs of our packaging centers. The crisis still affects packaging companies which have no production or which are not yet able to pass the new prices on their customers.
“Everyone apprehends the end of the season. Indeed, many foreign customers have started to accept the situation and to anticipate what awaits them. This is a situation that will not change and which becomes a new reality, because more and more factories arrive in Egypt with a large capacity for absorbing significant volumes of fresh oranges and other fruits. They benefit from a high demand for juice and drying markets.
For more information
Osama Saleh
HoudElNile for Investment and Agricultural Development
Such. : +20 1208704237
[email protected]
