Great weather conditions will result in a promising grape harvest in Egypt. Quality is expected to be on good levels, although rising input costs are proving to be a challenge. One Egyptian grape exporter states they’re still able to supply the Russian market with grapes, but shipping routes have been affected by the current conflict.
May Salem, managing director for Egyptian fruit exporter Finbi, states that the prospects for the Egyptian grape season are looking positive: “We are lucky with the weather at the moment. The grapes are developing beautifully. All phases are on schedule, and we expect harvest to start a week earlier than last year. Our Flame shoots are currently about 10-12 cm in length, while the Superior is 5-6 cm. In 3 days, we will have flowering. If all goes well, we expect harvesting our Flame by 15 May. We are expecting good quality in the bunches, but more important is the decreased levels and number of pesticides residue. At the FinBi Farm, we are very strict with monitoring and testing of pesticides.”
This season, the weather wasn’t as challenging as last year, but significantly increasing input costs are proving to be an entirely new challenge this year, Salem explains. “The expected volumes this season look promising. We will be back to our previous production levels. Last year, the yield was low due to climate conditions. It was warm during the months of November and December of 2020, but this season the temperature was favorable. The main challenge this season though, is the cost of inputs and shipping. Some inputs like plastic sheets for covering went up by 70%, while fertilizers increased in price between 15 and 25%. The prices will definitely be higher because of the increase in inputs. We expect an increase in grapes selling price between 20-25% over last year.”
For FinBi, the Russian market is an important one. Although the company is still able to export grapes to Russia, the shipping routes and payment arrangements have been affected: “Last year, all our Superior, green grapes, went to Russia. So of course, the Russian market is important to us. Egyptian exporters provide supermarkets all over Russia with fresh Egyptian produce. Shipping routes to Russia and Ukraine have been affected by the current conflict, but exports have not stopped. Payment arrangements are also affected with the Swift bans, but alternatives are being sought. We are mainly growers and supply large Egyptian exporters that ship mainly to Europe. This season, some Dutch companies are also in contact with us for direct export.”
“As global citizens, we are following up the events in Ukraine, and hope the economic consequences would be limited. EU is the main market for Egyptian grapes and other important exports. We are closely monitoring the vulnerability of the exchange rate of the euro together with the demand in the European markets.” Salem concludes.
For more information:
May Salem
FinBi for Land Reclamation and Agriculture Development
Tel: +202 37495616
Email: may@natesngrapes.com
www.natesngrapes.com