Italy: An outlook on Egyptian fruit growing

Just as it happened for Spain, Turkey and Chile, this initiative enabled the assessment of the technical and organisational development of other countries as well as the identification of possible partners at an international level.



Faenza's producers had the chance to visit some Egyptian companies in the Northern part of the country between Cairo and Alexandria, the most suitable area for agriculture because of the availability of water from the Nile or other underground wells. Some of them already have business relations with Italy.

FreshPlaza interviewed Ugo Palara (in the photo), the manager of Agrintesa's Technical office who took part in the trip, to assess the technical, political and social aspects concerning the country.

"The main Egyptian fruit crops are those that adapt to semi-dry climates i.e. dates, bananas and citrus. However, ten years ago, the most important companies started making technological investments and applying European agronomic innovations, and they are now cultivating peaches and nectarines, strawberries, table grapes and apricots. In the future, figs and pomegranates should also find a place because of their low water need. There are also some relevant vegetable crops such as potatoes and onions, green beans and other pulses, tomatoes, asparagus and melons which, in some cases, are harvested twice a year."

The tour
During the visit, the members could visit those companies with a business model similar to the Chilean one, i.e., big companies (from 200 to 1,3000 hectares), with considerable investments, availability of low cost labour (less that $1 per hour on average) and programmes for new out-of-season productions for international markets. For logistical reasons, Egypt is mainly interested in European and Middle Eastern markets.

"These companies combine crops with one or more processing, stocking, packing and shipping plants, according to the international criteria and certifications such as GlobalGap, BRC and Tesco. Organic crops are also on the rise."

Some of the companies most active in Egypt from a production and export point of view, include Maba Agriculture, Nivex Farm, Pico Modern Agriculture and Blu Nile Company. In some of them, Faenza's producers were able to take a look at the production process, the quality and quantity standards of the plants, the organisational level and the innovation status.

"The great use of labour, because of its low costs, was impressive both on field and during processing. The good quality of supplies seems to derive from the use of employees for selection, packing and quality checks." 




The social-economical framework
"If we talk about Egypt today, we cannot avoid an assessment of its social and economical status. The revolution in January 2011 arrested the economic development of the country, which today doesn't seem to be able to build new and more efficient infrastructures, is not receiving foreign investments and is producing and working with high levels of inflation. Tourism has decreased by 70%, and it represented the main source of income for the government."

In a situation like this, even the most structured companies find it difficult to keep up, as international technological and commercial exchanges have decreased. Only those better organised, which can reach European production standards, seem able to relate to the rest of the world, though with great difficulty and worry about the future.

Temperate fruit cultivation
Around twenty years ago, Egypt started exploring the possibility of widening the range its cultivations by investing in temperate crops in addition to the usual sub-tropical species. Thanks to international genetic improvements, peaches, nectarines, apricots, plums, strawberries and table grapes have increased both in terms of hectares as well as in terms of quality.

"Part of the produce reaches the European markers with recognised quality and presentation levels, favoured by the fact that they are at least 60 days earlier than our own crops and also improving from a logistics point of view."



"The types of planting are the same of those in our country, however some aspects are still difficult. As it's not cold enough, grapevines and stone-fruit alternate production, blossoming is extended, harvesting is gradual - up to 15 steps before plants are exhausted! - and it is difficult to control parasites. The use of growth regulators such as Dormex is essential to regularise germination, and its effect is by no means guaranteed."

"The quality of irrigation water, which is often salty, doesn't ensure sufficient benefits if we consider the cost of its management. Despite relations with Spanish, South African and Italian companies, the lack of constant technical updates complicates agronomic management, thus reducing the amount of first quality produce that can be exported."



What can be gathered by this visit to Egypt?

"Egypt is more of a possible partner at the moment, rather than a competitor, with which we can establish exchange and trade relations in the fruit and vegetable sector. Sub-tropical and temperate fruit during spring, as well as some types of vegetables, are ideal for exchanges with late products such as pome-fruits and kiwis, of which our companies are leading producers."

"Egypt is also interesting in terms of introducing know-how, technological innovations and production means that could improve quantity and quality standards. In this case, Italy could also play a leading role."

"Unfortunately, the Egyptian situation cannot be framed in the medium term, because of the social and economical-political crisis which make it difficult to foresee the future, just as it's happening for other North African countries," concludes Ugo Palara.