Egyptian traders respond to trade agreement with China

With regards to the current developments concerning the access for Egyptian grapes to the Chinese markets, We asked some Egyptian growers and exporters for their opinions on this matter.

Ahmed Hodaiby of Trade Waves Co. is positive about these developments. “The agreement enables exporters to explore a new, potentially huge market. It helps to diversify the Egyptian export as a whole. As the production of Egyptian grapes is increasing, it is essential to find new markets that can absorb our produce. In the medium-term future, the agreement could be very beneficial, but only if the entrance to the market is managed properly.”

As it is still a crucial phase, there are some aspects that an Egyptian producer or exporter would need to keep in mind before embarking on an adventure in the Chinese market. “China is a new market for Egyptian grapes. Therefore, this market needs gradual exploration. The nature of the market and its requirements are still for the most part unknown. We should take care of strict quality assurance procedures, especially when our fruit makes its appearance in China for the very first time. Building a good reputation is essential, and it’s much harder to build a reputation than it is to spoil it.”

“Competition will be hard, especially when the Egyptian grapes season overlaps with the domestic Chinese season. The exact requirements for shipping, treatment and documentation are also still rather vague. Penetrating a new market is an investment for the future. We should do this carefully and gradually,” concludes Hodaiby.

Amr El Beltagy of the Egyptian company, Belco, agrees with the importance of new markets. “It is very important for the Egyptian fresh produce sector in general to open new markets. Over the past years, most Egyptian companies have been concentrating solely on the EU market. While it’s still our most important market for fresh produce, diversification is crucial. We are glad that new markets are becoming accessible, especially when it’s such an important market like China. However, China is not a simple market. The Chinese have their own specifications and trends which producers need to follow. For instance, we need to plant the right varieties. The Chinese market loves big berries.”

El Beltagy sees the new market as a potential boost for the Egyptian economy. “The Egyptian economy isn’t at its best, right now. There is however still a huge potential for growth. If the government and the central bank make the right moves in the coming months, there could be a real boost to the economy in the years to come,” says El Beltagy.