Prices for Egyptian garlic, whose season has just begun, continue to soar, due to lower volumes, high demand, and the appreciation of the local currency.
Mina Anthony, CEO of E2M, says: "Garlic prices are much higher than last season and continue to rise, mainly because the acreage has decreased dramatically. A lot of garlic growers preferred to grow onions this season. The huge global and local demand for onions has multiplied their price by at least three."
Lower supply is met with a strong demand. Anthony adds, "Demand is very strong this season, mainly from countries such as Canada, the USA, Australia, and Brazil. Taiwan is a little slower this season as they were expecting low prices from Egypt."
"Another factor contributing to higher prices is the appreciation of the Egyptian pound against the dollar", says Anthony. After a long and sharp depreciation, the EGP is gaining in value. From 70 EGP for 1 USD at the beginning of the year (parallel rate of the black market, which is more representative of the market than the official rate) 1 USD is exchanged at 48 EGP today.
"The average price has risen from 1.1 USD/kg for fresh garlic at the start of last season to 1.6 USD today, an increase of 45%. Prices will be higher for dry garlic later in the season, as garlic loses half its weight. For all these reasons, prices are only expected to increase rather than going down for the rest of the season," concludes Anthony.
For more information:
Mina Anthony
E2M
Tel: +201271227787
Email: m.anthony@e2m-eg.com
www.e2m-eg.com