Despite a strong start to the Navel orange season in Egypt, especially in its first week, Egyptian exporters are reporting a decline in demand in several markets. "Demand for Egyptian oranges has been very shy so far, and Navel orange export volumes are only around 30-40% of last season's," says Mohamed Khamis, export manager at Sama Agro.
"With the exception of a few rare markets such as Brazil, demand has been very slow in the rest of the markets, especially in Europe and East Asian countries," the exporter reports. He adds, "There are several reasons for this. On the one hand, the Chinese supply is abundant this season and covers the needs of East Asian markets. On the other hand, in Europe, orange concentrate factories built up significant stocks last season and do not yet need oranges, and many other origins, notably Spain, are covering the demand for fresh oranges."
© Youness Bensaid | FreshPlaza.com
According to Khamis, the main reason for weak demand, beyond competition, is weak end-consumer demand. "Importers are very cautious because they have not seen much enthusiasm for oranges so far, " he says.
After the slow Navel orange season, the Egyptian Valencia orange season began two weeks ago and is experiencing the same pattern. Khamis says, "The target prices of our buyers are lower than what Egyptian exporters are asking for. Valencia orange prices have risen by nearly €2 per box of large sizes, which buyers are not willing to accept."
Egyptian exporters are sticking to their guns on this price increase, which Khamis says reflects the improvement in sizes. He explains, "It is perfectly normal for prices for large sizes to be higher than those for small sizes, and we have a diverse supply this year with enough volume to meet the requirements of every market."
"We believe that the situation will change quickly and soon. Chinese and Spanish orange stocks will soon be exhausted, which will coincide with the usual increase in Indian and European demand from mid-February through May. The Egyptian season will then be revitalized," Khamis concludes.
For more information:
Mohamed Khamis
Sama Agro
Tel: +201212233050 / +201287458751
Email: [email protected]
www.samaagroexports.com
