A difficult season for Egyptian citrus exporters, according to Muhammad Shaker, Export Manager at Almansi, confirming the concerns expressed by several Egyptian exporters at the start of the season.
The exporter says: "We are currently seeing a drop in demand compared with the same period last season, particularly in Europe. The reason for this is that we're short of large sizes. What makes the situation even more complicated is that prices for oranges in Egypt have risen, even exceeding the price range of many destination markets."
To recall, the Egyptian government decided to cut subsidies for agricultural exports last November, reducing them from 8-10% (depending on the product) to 2.5%. According to several citrus industry sources, this was expected to translate into higher prices and reduced export volumes. This coincided with a drop in the volume of oranges produced this season, a shortage of large calibers, and the ongoing crisis in the Red Sea.
Shaker continues, "In the East Asian market, too, demand is disappointing. Demand has, however, been strong at the start of the season in certain markets such as Bangladesh and Brazil in oranges, Russia in mandarins, or Brazil and Argentina in lemons."
"We expect the campaign to be re-energized with strong Indian demand in the period ahead, provided our prices are acceptable in comparison with the price range in India," the exporter hopes. According to Shaker, rising prices in Egypt particularly affect exporters, and less so growers and larger companies who can afford competitive prices.
For more information:
Muhammad Shaker
AlMansi
Tel: +20 102 562 2070
Email: sales@almansifruit.com
www.almansifresh.com