The Egyptian produce sector has been having a relatively good vegetable season. Meanwhile, Spain and Italy have been hit hard by cold weather, leading to a severe lack of produce on the European market.
The scarcity of especially leafy vegetables (salads) should have been a great opportunity for Egyptian exporters, producers and traders. Though Egyptian iceberg lettuce exports increased significantly to Europe from the gap created by the Spanish shortage, the opportunity was not fully utilised. According to Amr El Beltagy of the grower/export company Belco, this has to do with the strategies that European importers have come to rely upon.
"European importers depend mainly on Spain and partly Morocco, for iceberg lettuce and other salads But there is hardly any trade with Egypt when it comes to iceberg lettuce and other leafy vegetables though Egypt is a main and reliable supplier to Europe and the UK in other fresh produce crops like green beans, onions, grapes, oranges and other crops, but not leafy vegetables. This dependency is the sole reason why the current European situation got so out of hand.
"The problem created by Spain's shortage due to the weather conditions would have been less damaging if Europe had part of its lettuce or salads programs agreed with Egyptian exporters as a backup source to similar situations, but Egyptian growers especially export based growers/companies like Belco work mainly through pre-agreed programs and hence fully filling the shortage on the spot is not easy, because usually there is only little extra production above their current programs (and sometimes none) to use in such situations, that is why it would be mutually beneficial for all parties if European importers provide Egypt part of their salads programs, even if small as a start.
"As for the price competition, maybe Egypt will have a better chance now to provide competitive iceberg lettuce prices after the devaluation of its currency but even if not, I guess a small raise in price for a secured volume with excellent quality, is much cheaper than what importers are paying now to source iceberg lettuce, the spot market prices have never been higher."
While it could be frustrating for Egyptian companies to see such a marketing opportunity go to waste, Amr El Beltagy remains optimistic. "The situation really isn’t that bleak. The little extra produce we do have does give us some satisfaction."
"Belco has been growing/exporting large volumes of iceberg lettuce to big lettuce market players in Germany, France, Russia and other countries for 3 years now with superb quality and shelf life, every year our programs increase a bit. We are aiming to do more volumes with Europe and the United Kingdom in the near future."
For more information:
Amr EL Beltagy
Belco (Egypt)
Tel: +20 (0)2 2735 7213 / 4
Mob: +2 01001933066
Fax: +20 (0)2 2737 0037
Email: amr.elbeltagy@belco.com
www.belco.com
The scarcity of especially leafy vegetables (salads) should have been a great opportunity for Egyptian exporters, producers and traders. Though Egyptian iceberg lettuce exports increased significantly to Europe from the gap created by the Spanish shortage, the opportunity was not fully utilised. According to Amr El Beltagy of the grower/export company Belco, this has to do with the strategies that European importers have come to rely upon.
"European importers depend mainly on Spain and partly Morocco, for iceberg lettuce and other salads But there is hardly any trade with Egypt when it comes to iceberg lettuce and other leafy vegetables though Egypt is a main and reliable supplier to Europe and the UK in other fresh produce crops like green beans, onions, grapes, oranges and other crops, but not leafy vegetables. This dependency is the sole reason why the current European situation got so out of hand.
"The problem created by Spain's shortage due to the weather conditions would have been less damaging if Europe had part of its lettuce or salads programs agreed with Egyptian exporters as a backup source to similar situations, but Egyptian growers especially export based growers/companies like Belco work mainly through pre-agreed programs and hence fully filling the shortage on the spot is not easy, because usually there is only little extra production above their current programs (and sometimes none) to use in such situations, that is why it would be mutually beneficial for all parties if European importers provide Egypt part of their salads programs, even if small as a start.
"As for the price competition, maybe Egypt will have a better chance now to provide competitive iceberg lettuce prices after the devaluation of its currency but even if not, I guess a small raise in price for a secured volume with excellent quality, is much cheaper than what importers are paying now to source iceberg lettuce, the spot market prices have never been higher."
While it could be frustrating for Egyptian companies to see such a marketing opportunity go to waste, Amr El Beltagy remains optimistic. "The situation really isn’t that bleak. The little extra produce we do have does give us some satisfaction."
"Belco has been growing/exporting large volumes of iceberg lettuce to big lettuce market players in Germany, France, Russia and other countries for 3 years now with superb quality and shelf life, every year our programs increase a bit. We are aiming to do more volumes with Europe and the United Kingdom in the near future."
For more information:
Amr EL Beltagy
Belco (Egypt)
Tel: +20 (0)2 2735 7213 / 4
Mob: +2 01001933066
Fax: +20 (0)2 2737 0037
Email: amr.elbeltagy@belco.com
www.belco.com