The resumption of Egyptian onion exports, after a six-month ban, puts an end to a long wait on the part of Egyptian exporters and their markets. Doubts persist, however, as to how the season will progress, says Mina Eissa, an Egyptian onion exporter.
Mina says: "Egyptian onions are eagerly awaited in several countries, such as Saudi Arabia, the Netherlands, Pakistan, and Russia, which have been among our top five export markets for the past few years. We expect strong demand from these countries and estimate that at least 300,000 tons of onions will be exported this season as well."
According to statements by Egyptian Ministry of Agriculture officials, reported by Asharq Business, the onion acreage and volumes increased this season, meaning the end of the shortage and inflation in the local market.
However, other factors to watch out for in the coming period could disrupt the season. Mina explains: "It remains to be seen whether these forecasts will materialize at harvest time. Climate change and yield reductions may have an impact on volumes. The same applies to the quantities and standards of fertilizers and pesticides, which will also determine exportable volumes." The next onion cycle's harvest is expected in April for further clarity.
The local market will also continue to be the determining factor in export flows and prices, says Mina: "Strong international demand for Egyptian onions was behind last season's price hike and subsequent export ban. There's a price threshold that onions can't cross in Egypt, and if that happens, the government won't hesitate to impose another ban. When the ban was lifted at the beginning of April, the government targeted to keep the price at the levels of 25 pounds per kg."
"There is a two-fold concern: that prices will rise to the point of leading to a banning of exports, or that they will collapse to the point of reducing acreage next year, meaning that the crisis scenario will repeat itself," says the exporter.
"It is certain that demand will be high this year. But we still don't yet know what the prices will be like. It will all depend on actual harvest volumes," concludes Mina.
For more information:
Mina Eissa
Rejoice Pro
Tel: +20 128 844 4469
Email: mina@rejoicepro.com
www.rejoicepro.com