The Egyptian Citrus Campaign Ends in Disillusionment
Egyptian citrus exporters are wrapping up a challenging season marked by low demand and logistical setbacks. Despite an increase in volumes and better sizes compared to the previous season, the geopolitical situation severely impacted the market, leading to significant disappointment.
Throughout the season, the security crisis in the Red Sea escalated into a logistical crisis, cutting Egypt off from major Asian markets and resulting in an overabundance of citrus fruits in Europe. This oversupply caused a sharp decline in prices, much to the dismay of producers and exporters like Kareem Al-Shorbagy.
Many stakeholders were optimistic that the crisis would resolve before the season’s end, coinciding with increased demand driven by the summer heat, religious holidays, and the Olympic Games in France. However, these hopes were dashed. “We have to admit that the season is ending in the same difficult and disillusioned fashion,” says Al-Shorbagy.
“The situation in the Red Sea persists, and neither demand nor prices have improved,” explains the exporter. He points out that there are still excessive quantities of Egyptian Valencia oranges in European cold storages, with demand failing to pick up during typically high-demand periods such as Ramadan and the Olympic Games. Consequently, a carton of oranges now sells for 10 euros, down from 14 euros during the same period last season, with few buyers in sight.
Looking ahead, the outlook for the Egyptian citrus campaign remains bleak. South African citrus has entered the market, further exacerbating the situation with the lingering surplus of Egyptian oranges. “We’re gearing up for next season, with navel calendars in November,” notes Al-Shorbagy.
Sweet Potatoes to Save the Day?
In contrast to the citrus sector, other crops like sweet potatoes are showing promise this summer. Al-Shorbagy highlights the optimism surrounding the sweet potato campaign, which is benefiting from less competition, decent volumes, and excellent quality and freshness. Egyptian sweet potatoes are in high demand across various food industries, presenting a wide range of export opportunities.
“Prices for sweet potatoes this season range from 8 to 10 euros per 6 kg box, very competitive prices. We expect to export much larger quantities of sweet potatoes this season, to offset our citrus campaign,” concludes Al-Shorbagy.
