Last year, Egypt - and many other parts of the world - experienced a shortage of onions. Prices reached unprecedented levels on the local market (up to 300% of the average price compared with the previous season). Export prices rose from USD 400 EXW per tonne at the start of the season to USD 600 just before the ban.
What happened next is predictable: many growers turned to onions this year. The increase in volumes was driven by public agricultural programs, in order to avoid the same scenario as last year. As a result, onion volumes increased dramatically, reaching over 3 million tonnes, one million tonnes more than last year, according to industry sources.
Mohamed Anwar, CEO of Mudga, an Egyptian onion exporter, comments: "Prices have fallen this season because of the large supply, and that's normal. What is surprising is that demand is simply not there."
The increase in onion volumes also occurred in other countries, reducing global demand for Egyptian onions. Anwar says: "We are in direct competition with Spain and the Netherlands. Prices for Egyptian onions have dropped by half on last season, and we're down to USD 300 EXW per tonne."
The fall in prices has, however, stimulated new markets for Egyptian onions, adds Anwar: "Most of the demand at present comes from West and Central Africa, such as Senegal, Côte d'Ivoire, and Guinea, and concerns yellow onions."
For more information:
Mohamed Anwar
Mudga
Tel: +20 106 469 2010
Email: [email protected]
www.mudga.com