Strawberry growers and exporters in Egypt are under pressure this season due to oversupply and high production and export costs. Nihal Abdelghaffar, CEO of Accretive Corp for Agriculture, reports on the situation.
"There is real pressure on prices, squeezing producers and exporters. The season started with prices 50% lower than at the start of last season and subsequently stabilized at the same level as last season, but margins are still lower due to sharply rising costs," says the exporter.
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For exporters, air freight costs are dealing a severe blow to profitability for the 2025/2026 season. Nihal explains: "Air freight costs have risen by nearly 30% for all airlines and chartered cargo planes. This means that the final price of Spanish or Greek strawberries is now higher than the cost of Egyptian ones, transport costs included."
This situation has prompted many Egyptian exporters to resort to sea shipping, a very risky approach. Nihal explains: "Many exporters have started shipping to Europe by sea and are accepting the losses incurred. There are drawbacks to this approach. On the one hand, there is a loss of quality, and on the other, importers have to sort and repackage the strawberries upon arrival. It's a fifty-fifty gamble."
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According to Nihal, the delicate position of Egyptian exporters is exacerbated by production growth in other countries that share the same production window, such as Belgium.
"Exporters must now work with the right clients and consistent volume programs to make their campaigns profitable. Overall, the fresh strawberry industry in Egypt must now strike an equilibrium, starting with a reduction in production next season," she continues.
Despite these difficulties, it is unlikely that the fresh strawberry export season in Egypt will be cut short this year, given the oversupply, according to Nihal. "On the contrary, it will be longer this year due to the two-week early start."
"At Accretive Corp we have deliberately finished our season with caution due to fierce competition, and started aligning our operations towards the frozen strawberry campaign where the risk is minimal," Nihal concludes.
For more information:
Nihal Abdel Ghaffar
Accretive Corp for agriculture (Atfa)
Tel: +20 1001 914191
Email: [email protected]
www.atfaegypt.com
