The Egyptian Valencia orange campaign is progressing in a quite competitive market and enjoying strong demand. However, exporters are held back by the issue of sizing this season, while the interminable Red Sea crisis also continues to weigh on them. Mohamed Mzayen, export manager of Al-Omar, reports on the campaign's progress.
Mzayen says, "Egyptian oranges continue to enjoy strong global demand. Key markets such as Saudi Arabia, Russia, the UAE, and the Netherlands remain highly active, with steady import volumes. Additionally, the Canadian market has shown significant growth, with Egypt surpassing Spain and Morocco in orange exports there. However, demand in Southeast Asia has been slower than expected, mainly due to logistical disruptions caused by the Red Sea crisis, which has affected shipping routes and increased costs."
Demand for Egyptian oranges has been boosted by the competition's struggles in Spain and elsewhere. Mzayen explains, "This season, competition from Spain has been lower than usual due to adverse weather conditions, particularly drought, which has reduced their orange production. Similarly, South Africa has faced quality-related issues, giving Egypt an advantage in supplying high-quality fruit. These factors have allowed Egyptian oranges to strengthen their presence in key international markets."
The picture is not entirely rosy. Like the 2022/2023 season, Egyptian growers face a major hurdle in marketing oranges this season, namely the scarcity of large calibers. Mzayen adds, "This season, large-sized oranges make up only 20-25% of production, leading to a shift in market strategy."
Exporters must therefore decide on the destination for their large-sized oranges. Mzayen: "At Al-Omar, we have optimized our sorting and packaging to ensure larger sizes are allocated to premium markets such as the Gulf region and select European countries, such as the Netherlands, Germany , Russia and France, where demand for bigger fruit is high. Meanwhile, markets like India and Malaysia prefer smaller-sized oranges, making them an ideal destination for this season's crop."
Small size abundance has pulled the price down at the beginning of the season, according to Mzayen. He adds, "Compared to last season, prices have been around 25% lower due to the abundance of small-sized fruit, increasing competition among exporters. However, towards the end of the season, prices rebounded to around $800–$900 per ton, nearly double the mid-season rates. While the price recovery is a positive trend, payment terms remain a challenge in some markets, as certain buyers request extended payment periods, requiring careful financial management."
The success of the campaign depends largely on the exporter's ability to do better sorting, Mzayen concludes. "We use advanced sorting technology to meet the specific size and quality preferences of different markets. Additionally, we invest in digital marketing and branding to support our clients in increasing their sales. Our commitment to strict quality control and efficient supply chain management ensures that we deliver premium oranges to international markets, reinforcing our competitive edge. AL-Omar Co. Egypt is a leading citrus exporter known for its high-quality products and strong global presence."
For more information
Mohamed Mzayen
Al-Omar
Tel: +201092733545
Email: alomarexport@gmail.com