The Egyptian grape sector is going to be subjected to a new set of protocols and requirements for export. While there wasn’t a formally enforced protocol before, the new protocol was announced only one month before the beginning of the next grape season.According to Ahmed Hodaiby of the Egyptian export company Trade Waves Co., the strict requirements are meant to ensure the best quality for export. “Every grower, exporter and pack house must be approved for export,” says Hodaiby.
As the procedure was announced relatively late before the season, meeting all requirements is going to be a challenge. The reasons for this new procedure are two-fold: China applies a strict protocol as well, so in order to compete with Chinese grapes, Egypt needs to step up its system for quality control. The other reason has to do with how, at the end of the last season, European customs started sampling procedures. 20% of all Egyptian grapes are being tested at ports.
“I think in general the new requirements are good to ensure good quality, but it does make things harder,” says Hodaiby. “The new protocol raises our costs and could cause delays. When a container with a shipment of grapes arrives on time, it could be held at customs for over a week, waiting for analysis results. This causes discrepancies within our export programs.”
The new protocol is being issued by both the Egyptian government and the HEIA. The Egyptian export sector for grapes now has two different sets of requirements. While one is set up with the Chinese market in mind, the other is specifically geared towards Europe and Asia.
“Although the protocol has been announced quite late, we have no choice but to comply. We’ve already set up agreements with European customers, so in order to meet their demands we’re going to apply the requirements as best as we can. After this season, we’re going to plan for the year ahead.”
The main obstacle of the new protocol is the sheer scope of it. Every company in Egypt needs to fall in line in order to be audited. According to Hodaiby, the administrative process of it all is the main challenge.
However, there are more challenges other than the new protocol during this year’s grape season in Egypt. The Egyptian economy is still reeling from the effects of the demonetization process for the Egyptian pound, which has raised the costs for production. There has also been a delay in the harvest of about a week. Furthermore, this season is the very first time that Trade Waves is going to export grapes to the Chinese market.
As for the grapes themselves, the quality of this year is going to be good. There seems to be a smaller volume for red grapes, though it’s still to early to say what this year’s volumes are going to be. The season is going to start in the middle of May.
“Most of our volumes are going to be exported to Europe, specifically to British retailers. We’re also going to export a small amount of grapes to China, as a trial run. This will amount to only 20% of our total volumes. We’re going to use this trial run to gather feedback from China and get more familiar with Chinese protocols.”
There has been a delay in the Indian season for grapes, which could cause an overlapping period with the Egyptian season. However, Hodaiby isn’t worried. “The quality of grapes at the end of the season are usually not as good as grapes marketed at the start. There won’t be any issues with competition from India.”
As for varieties, Trade Waves has been working on new types of grapes. “Our Prime variety is now in full production. We’re also going to see our first harvest of Starlight, though this variety will be produced in limited quantities. During the next season, we’re planning to work with a new dark red and a new black variety.”
The varieties are aimed at extending the season and at providing better types of grapes suited for distant markets. “Starlight is a red grape that is earlier than Flame. But apart from season extension, Starlight also provides better characteristics and better sizes than Flame. Starlight is a stronger grape, which makes it better suited for the longer transit times when exporting to China,” concludes Hodaiby.
For more information:
Ahmed Hodaiby
Trade Waves Co.
Tel : +202 3304 8165
Fax: +202 3345 3872
Mobile: +20 100 1932 518
Email: ahodaiby@trade-waves.com
www.trade-waves.com