Egyptian garlic exporters have entered the second cycle of the season, for dried garlic, after a "very successful" first cycle of fresh garlic. Demand remained high in several markets, while Egypt benefited from a weaker position of the Chinese origin this season, according to Farag Karem, CEO of Al Wadi.
Farag shares his satisfaction with the progress of the campaign: "At the national level, Egyptian production is abundant this season, and is matched with a high demand. We always had a high demand, but this season we are seeing a significant need on the market. For instance, last season our company exported 250 containers during the whole campaign, and we've already exported 300 containers halfway through the campaign."
The exporter adds, "Many importers who historically relied on Chinese growers have turned to Egypt this year. The reason may be linked to the current trade war and the fears it has aroused among importers in several countries. I've seen several American reports questioning the quality of Chinese fresh produce, surely in the context of this trade war. But at the same time, Egypt is already established on the market as a major garlic origin, with competitive prices below those of China. We were ready to take advantage of the situation and grab more market share."
According to Farag, the configuration of competition this season has prompted Chinese exporters to lower their prices, but there is another area of competition, and that's the drying process. He explains: "Chinese producers use steam drying, whereas in Egypt we use sun drying. On the one hand, this is because China is much more advanced in terms of equipment and machinery. Sun-drying takes longer and requires much more effort and labor. We expose the garlic to the sun on prepared surfaces, while taking measures to ensure a hygienic process, for 15 to 20 days, turning it over every 4 days so that the sun reaches all the cloves. This process gives us a product with higher nutritional value and better quality."
Like every season, the shift to dry garlic means a shift in markets. Farag says: "At the beginning of the season, we exported a lot of fresh garlic to Russia, Ukraine, Greece, Germany, and the Netherlands. We also saw an increase in demand for fresh garlic from Brazilian customers. The map will then change for dry garlic, with Brazil being the most important destination, followed by Taiwan, Greece, Romania, and African markets such as Senegal, Tunisia, Morocco, and South Africa. Even India, which produces huge quantities, is importing from Egypt this season. European countries have too demanding import standards, but we can meet them for limited quantities".
"We're optimistic and enthusiastic about the rest of the season, from now until December. We have good quality dry garlic, in sizes from 4 to 10 cm, in 10 kg cardboard, 10 kg plastic, or 10 and 20 kg net bags. Current prices are very competitive, around $1,550 per tonne FOB," Farag concludes.
For more information:
Farag Karem
Al Wadi for Agricultural Investments and Export
Tel: +20 15547 81270
Email: [email protected]