Challenges in the Egyptian Orange Export Market: Sourcing Difficulties and New Opportunities
The Egyptian orange export campaign faces sourcing difficulties, leading to an early end, with estimated closure by April 25. Al Solimania grapples with sizing issues, high local prices, and increased competition, while still managing to expand exports to new markets, notably the Caribbean.
The Egyptian orange export campaign is facing challenges as sourcing oranges has become increasingly difficult. Zeinab Mohammed, an export sales representative at Al Solimania, indicates that the difficulties stem from the shortage of appropriately sized oranges and suggests that the campaign will likely conclude by April 25, given the current circumstances.
Al Solimania reported significant issues related to sizing, with only 20% of the orange production meeting large size requirements, and from this, approximately 40% is exportable. In addition, the emergence of new players in the industry has altered the landscape, with local factories thriving due to a shortage of oranges elsewhere, particularly in Brazil, which diverts more oranges from the export market.
Zeinab noted that the local market has experienced unprecedented price increases due to heightened demand from processing factories. Al Solimania’s reliance on external farms for supply has compounded the challenges, particularly as they approach the season’s end. Despite some in-house production, competition has intensified due to local demands.
In terms of export distribution, Al Solimania has primarily catered to Russian markets, with around 80% of their exports directed to Russian supermarkets. They have also seen an increasing volume of exports to the Caribbean, noted as a promising emerging market this season according to Zeinab Mohammed.
The Egyptian orange export campaign is encountering significant hurdles due to sourcing issues and market dynamics. With a notable reduction in the availability of large-sized oranges and rising local market prices, exporters like Al Solimania are struggling to maintain their export levels. Despite these challenges, the company has successfully expanded to new markets, demonstrating resilience amidst adversity in the citrus industry.
Original Source: www.freshplaza.com
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