Egyptian onion producers and exporters were expecting a good season after the export ban was lifted at the beginning of April. However, disappointment has set in as demand has not been there, according to Mohamad Hassan, Export Sales Manager at Al Gamal.
Hassan says: "Following last year's onion shortage, we prepared for this season with huge volumes. The quality is also very good this year, with good coloring and larger sizes for both red and yellow onions. The larger sizes are available in abundance and reach up to 100 ml."
Inflation in Egypt has increased the cost of producing onions, making them uncompetitive with Indian onions, explains Hassan. He adds: "Indian onions are much cheaper. Even taking into account the cost of transport from India to Europe, we can barely compete with them."
"It's not easy to compete with Spain either, because of the cost of transport to Europe making our respective prices similar, although Egyptian onions are of better quality than those from Spain this year," adds Hassan.
Prices are falling as a result of overproduction and lack of demand. Hassan points out that "prices are down by about 20% compared to the start of the season".
Egyptian exporters are also faced with logistical complications: "It is difficult to commit to a delivery date because of congestion in the ports", says Hassan. On the other hand, Egyptian onion exporters are seeing demand from new markets, particularly in West Africa, such as Côte d'Ivoire and Ghana, concludes the exporter.
For more information:
Mohammad Hassan
Al Gamal for Import and Export
Tel: +201157845538
Email: [email protected]
www.algamal.org