Difficult Start for the Egyptian Fresh Strawberry Season 2022/23 despite Increased Volume and Quality

Published 2022년 12월 28일

The production of fresh strawberries in Egypt is estimated to increase by 20% due to colder weather favoring the development of berries. Lower demand from the EU caused a price decline, which in W47 fell 12.5% WoW to USD 10.5/2.5 kg carton box, according to Hesham Nayel, Tridge Trade and Engagement Manager in Egypt. Another point that made farmers' position more difficult was the fluctuation of the Egyptian pound against the US dollar, which increased input costs and destabilized prices of fresh strawberries. The seasonality of fresh strawberries in Egypt provides traders a spot on the market before Spain and Morocco for the early varieties.

Source: Tridge

The harvest season of fresh strawberries in Egypt starts in November and lasts until April. In 2022, colder weather in October and November and overall stable climatic conditions positively affected strawberry production in Egypt, with an estimated 20% increase in output and satisfactory quality. Still, according to Hesham Nayel, Tridge Trade and Engagement Manager in Egypt, farmers, and traders face decreased demand and lower prices. In W47, the price of early harvest strawberries decreased 12.5% WoW to USD 10.5/2.5 kg carton box. From January to October 2022, the export of Egyptian fresh strawberries amounted to 19,425 MT and ranked 11th overall in Egypt’s fruit and vegetable export. In comparison, 22,565 MT of fresh strawberries was exported in 2021. Given the low demand in 2022 and slow export sales, despite the increased volume, export figures will be similar to 2021.

Source: Tridge

As the EU struggles with economic problems due to the Russian-Ukraine war, demand for Egyptian strawberries has significantly decreased. A partial cause was oversupply in earlier parts of the season from Egyptian farmers hoping the demand in the EU markets would be as high as last year. This strategy backfired, leaving the producers and traders looking for alternative markets. Some traders have turned to neighboring countries such as Tunisia, Algeria, Morocco, and East Asia. The UK is expected to remain the leading destination for Egyptian fresh strawberry export. In 2021, the UK was the number one export destination, with 37.6% of the market share and a total of USD 37.58M in value. The UK also showed the most significant growth in export value from 2016-2021, with a 501.97% increase. Exports of Egyptian strawberries to Saudi Arabia recovered in 2019 after the import ban in May 2018 due to approved limits for pesticide residues and Codex standards. Russia had 6.4% of the market share and a total value of USD 6.38M in 2021. Due to war and difficulties in transportation and payment, Egyptian traders are turning away from Eastern Europe.

Besides lower demand, farmers are faced with increased input costs, climbing by as much as 40% due to US dollar liquidity and high inflation. The wholesale price of fresh strawberries in Egypt has experienced a 16.88% WoW fall in W52, from USD 0.77/kg, according to Tridge. Prices of fresh strawberries will continue to be unstable due to the fluctuation of the Egyptian pound against the US dollar and increased supply in the domestic market.

Production and export of fresh strawberries in Egypt occupy an essential part of agricultural production due to the proximity of the EU market. Egyptian strawberries come into production before Spain and Morocco, giving traders space to dominate the market at the early stage. Due to the perishable nature of fresh strawberries, logistics must flow uninterrupted. Any disruption of supply chains, like the Russia-Ukraine war, can significantly impact trade.