Despite a stumbling start to the season for Egyptian oranges, with some exporters reporting lower-than-expected demand, others believe that reports of a sharp decline in exports are exaggerated, arguing that the Navel campaign is not decisive for the fate of the season as a whole and assuring that demand is already on the rise. This view is shared by Osama Saleh, export manager at HoudelNile.
© Osama Saleh
The exporter acknowledges the existence of challenges in the orange industry on a global scale. He states: "The current season for Egyptian oranges is unfolding under exceptional conditions on the global market, creating real opportunities despite the volatility at the start of the season. While demand fluctuated somewhat at the beginning of the season, market indicators now point to a more positive outlook, especially as Valencia oranges are entering their peak export period. Several major orange-producing countries, notably Spain and parts of southern Europe, have been severely affected by climate-related challenges, including drought, erratic weather conditions, and lower yields. These conditions have led to a decline in export availability and an increase in production costs, paving the way for Egyptian oranges to strengthen their position in traditional and emerging markets."
One of the defining features of the current season is the shorter export period compared to previous years. While this creates logistical pressure, it also helps to avoid prolonged oversupply, thereby promoting a better balance between supply and demand and limiting pressure on prices in the middle of the season," Saleh continues.
© Houdelnile
According to Saleh, Egyptian exporters are banking on a "much stronger" second half of the season. He explains: "On the one hand, there is the demand generated by Ramadan in Arab and Islamic countries. This year, Ramadan coincides with the peak of the Valencia orange season, a factor that has significantly increased demand. Oranges, especially juice varieties, are a staple food during Ramadan in Islamic and Arab countries, leading to strong purchasing activity and better market absorption during this critical period."
Beyond destinations in the Middle East and Arab countries, Egyptian oranges are also experiencing increased demand from European Union countries. The decline in local European production, rising prices for Spanish oranges, and competitive prices for Egyptian fruit, combined with improved quality standards, have made Egypt an increasingly attractive source for European importers," Saleh adds.
In addition to export-driven demand, the entry of several new orange juice processing plants into full production during the current season and previous seasons has boosted the local market for fresh oranges. This growing industrial demand will help absorb significant volumes that would otherwise have been destined for export channels," he continues.
© Osama Saleh
The exporter says he is confident that the market balance expected for this season will improve price dynamics. He adds: "With supply from competing origins contracting and seasonal demand remaining strong, market expectations point to improved prices in the second half of the Valencia juice orange season, particularly for commercially preferred sizes and higher quality fruit. Importers are already showing increased interest in securing volumes ahead of a possible market tightening."
"With tighter global supply, strong seasonal demand, and growing local processing capacity, the second half of the Valencia season is expected to perform well, both in terms of demand and pricing. In the meantime, the Egyptian citrus export sector continues to demonstrate its resilience and adaptability in the face of global market shifts. Through market diversification, flexible logistics, and improved coordination between fresh and processing channels, the current season is shaping up to be a season of opportunity rather than challenge for Egyptian oranges," Saleh concludes.
For more information
Osama Saleh
HoudElNile for Investment and Agricultural Development
Tel : +20 1208704237
Email: [email protected]
