The Valencia season is important for large and smaller exporters alike, but the season has started rather slowly. Demand isn’t very strong, but it is expected to pick up next week. Prices aren’t out of the ordinary according to one Egyptian exporter, who will have his focus on the market in Dubai this season.
According to Mahmoud Elmedany, owner of Egyptian fruit exporter Elmedany, the start of the Egyptian Valencia season has been rather slow: “For our company, we’ve seen somewhat of a slow start to the season. Demand is minimal despite the quality being good and the price being competitive. We do expect things to pick up soon though, and we think we’ll export around 50 containers this season. However, I can provide larger quantities when clients ask for it. If the demand increases, I guess the market will go up in the beginning of February and the season will really kick off.”
Elmedany currently focuses on the market in Dubai, but is looking forward to entering new markets like China and Russia as well. However, there have been challenges in dealing with payments from newer clients. “We have our main market in Dubai, however we’d love to enter new markets this season. Countries like Russia, China and European countries would be a good bet, as these are very interesting markets. To succeed, it’ll be up to me to provide the best quality I can this year. There have been some challenges with new clients in terms of payment. These new clients demand credit after arrival as there is no trust yet. I personally prefer using a letter of credit to avoid any issues, but many importers refuse this solution.”
Although prices for Valencias change every day, overall the prices haven’t been extreme in either direction this season: “The prices for Valencia oranges are rather normal this season. My FOB price is $8 for each 15kg carton, but negotiable depending on payment method and the quantity that is ordered. There are several things affecting the price, such as quantity produced by farms and competing countries like Spain. This means prices change on a daily basis.” Elmedany concludes.
For more information: