Egypt's citrus sector has been expanding for the past several years. While Russia and its neighbouring countries remain important destinations, the volume exported annually to the Netherlands is also on the rise. "Overall, Egypt's citrus production reaches between 3 and 3.5 million tonnes," says Mohamed Ghallab, of the Egyptian company Agro Egypt. "Average volumes are increasing by 10% per year."
"Our season usually begins in mid-November," explains Mohamed, "starting with the early navels. In December, we continue with most other citrus fruits, such as lemons, Baladi oranges, mandarins and grapefruit. In January, Valencia oranges hit the market." Agro Egypt is a family company founded in 1976 by Roshdy Ghallab. Initially, the company exported green beans to the Netherlands and grew over the years into an Egyptian exporter of fruits and vegetables. In 2003, the sons of Roshdy Ghallab joined the company.
Same acreage, higher yield
Agro Egypt exports various products, including pomegranates, grapes, sweet potatoes, strawberries and citrus fruits. The company has three labels: Agro Egypt, Sun Fruit and Okay. There is also a separate label for the pomegranates: Power of Love.
Egypt's citrus acreage remains stable at 133,236 hectares, according to the latest estimates, although the harvested acreage will increase by 2,000 hectares, to 117,000 hectares. The main reason for this increase is the good weather conditions registered early in the season. The Nile is the country's lifeblood and it is therefore not surprising that almost all activities concentrate on the banks of the river. The main cultivation areas for citrus are found in the Nile Delta and more specifically in Qalyoubia, Beheira, Sharqiya, Ismailia and Menufia.
Citrus cultivation, a lucrative business
For many Egyptian growers, citrus cultivation is a lucrative business. Growers prefer oranges above other fruits due to their high export value. Even small growers, who are not able to export, aim to take their share of the market by selling their produce to exporters or large growers. Oranges account for 30% of Egypt's fruit exports and about 65% of all citrus exports.
"On average, the orange yield is of 4.2 tonnes per hectare," affirms Mohamed. "This varies depending on where the plantation is located. More advanced growers have a yield of 7.5 to 8.5 tonnes per hectare." The Egyptian Government is investing in citrus cultivation. According to the strategy formalised in 2009, the yield per hectare should be increased to 6.3 tonnes per hectare by 2030.
"In recent times, the knowledge, technology, standards and expertise of packers and exporters have helped us take a foothold on the international market. Egyptian oranges are currently known for their quality and flavour."
Rising exports
Also when it comes to exports is the Egyptian Government helping boost the citrus industry. "The Minister of Agriculture, Adel EL Beltagy, the Minister of Foreign Affairs, Mounir Fakhry Abd El Nour, and the Agricultural Export Bureau, headed by Ali Eissa, are working day and night to ensure the citrus sector continues to grow every year."
In the 2014/2015 season, orange exports should grow by 4.5%. This is mostly due to an expected increase in demand by Russia because of the boycott. According to statistics, Russia is the main destination for Egyptian citrus, with 30 to 35% of all orange shipments. In 2013, exports to Russia reached 179,931 tonnes.
Devaluation of the Rouble
In early 2014, Russia lifted the boycott that affected ten Egyptian citrus exporters. Their citrus had been banned because of the presence of fruit flies, but after some negotiations, Russia reopened its borders. The U.S. market also opened last year to Egyptian citrus, although the enforcement of the required cold treatment for oranges and mandarins still needs to be planned.
"This season the market is under pressure, partly because the calibres of Valencia oranges are quite small. This has implications for marketing, especially to markets that prefer larger sizes," states Mohamed. "The economic situation in Russia and Ukraine and the devaluation of both their currencies is also taking a toll on exports compared to previous years."
Middle East and Far East major markets
Behind Russia, Saudi Arabia is the largest importer of Egyptian citrus. According to statistics, the Saudis consumed 244,907 tonnes of Egyptian citrus in the 2013/2014 season. Of these, oranges are by far the most important product, with an export volume of 163,462 tonnes in 2014. In the Gulf region, South Africa is the largest competitor. While the volume exported by Egypt to Saudi Arabia is more than three times larger, South Africa exports more to the United Arab Emirates. On the European market, Egypt hopes to take over South Africa's market share, after last September exports from South Africa to Europe were significantly reduced as a result of the Black Spot threat.
"The Far East is also promising for export," says Mohamed. "Bangladesh imported 40,572 tonnes in the 2013/2014 season, while a year earlier this figure reached just 26,563 tons; this is an increase of 65%." India shows similar figures. Muhammad: "In 2012/2013, India accounted for 28,111 tonnes; in 2013/2014, this figure increased to 43,858 tonnes; that's 64% more. China and Korea are also promising markets for Egyptian exports. We expect a large increase in exports to China this season."