The strong entry of Egypt into the international sweet potato market in recent years has caused a radical shift in the competitive landscape, pushing several other origins out of the European market. Over the past two seasons, Egyptian sweet potatoes have flooded the market, leading to long periods of price drops. However, for Abdelkader Habony, an Egyptian exporter, "Egyptian overproduction of sweet potatoes is beneficial and necessary."
© Habony Group
The exporter adds, "Production volumes in Egypt now exceed six million tonnes annually, spread over three cycles. The summer cycle sees an abundance of production and higher yields, reaching 15 tonnes per feddan (0.41 hectare), and this period also experiences the lowest prices of the season. The majority of growers in Egypt are now shifting towards internationally demanded varieties, such as Bellevue and Beauregard, at the expense of the Baladi variety intended for the local market. They are also increasingly approaching a season that spans the entire year."
The drop in sweet potato prices sometimes reaches a point where growers refrain from harvesting, as was the case in the past two seasons. However, Habony believes that this abundance is part of a typically Egyptian strategy, also seen in other products. He explains, "The abundance of volumes is necessary because it gives us great flexibility in pricing and a significant competitive edge. It is also necessary to meet the needs of the local market, which consumes a huge amount of sweet potatoes, while maintaining low prices for the local market. The difference now is that varieties intended for export are replacing those meant for the local market. We must also not forget that this is beneficial to consumers in a context of unbearable global food price inflation."
© Habony Group
"It's also important to remember that sweet potato production is among the least expensive, which allows growers to withstand the price drops," Habony continues.
The current summer period is seeing low prices for Egyptian sweet potatoes in Europe, but also strong demand, according to the Habony Group. He concludes, "Prices are around 700 USD FOB per tonne, or even lower, and only 150 USD per tonne for the categories sold on the local market. There is currently strong demand in several markets, such as Europe, West Africa, and Gulf countries. However, we expect prices to rise within a month, after the end of the summer cycle."
For more information:
Abdelkader Habony
Habony Group
Tel: +201090999229
Email: [email protected]
