Egyptian Grape Guide

Supply Chain: Farmers -> Transportation -> Wholesale, Processing, Packing -> Retail or Exporters.

Big exporters usually own their farms and buy from local farms to meet demand. Also, exporting companies conduct their farm inspection before shipping the product out, and the inspection process is proceeded depending on the destination country.

Two types of farming grapes: 

• Open (Farm trees), Closed (Covered top of threes). In the case of closed farms, it withholds the heat. Therefore, grapes ripen earlier than on open farms.
  
• Farms/exporters know to which markets they are selling. For example, grapes with shorter shelf life usually go to the domestic market.
  

Contract: Before the season starts, 70% of grapes are reserved by international buyers, and only 30% are left in the market. Also, buyers never sign long-term contracts as production volume and price level varies depending on the season. Some varieties are limited, so arrangements are needed to obtain the quantity and agreed price.

Source. Emad fathy Tridge OM Egypt

Most suppliers usually buy from local farms if they don’t own them. Usually, exporters(suppliers) work independently, but in many cases, different suppliers use the same packing house to pack their grapes.

Europe is the most significant and primary market for Egyptian Grapes, especially the UK, Germany, The Netherlands, Russia, and Asian destinations like Malaysia and Singapore. Although India is the top supplier in the global market, there is no direct competition against the Indian market as European countries are the leading destination for Egyptian grapes. Suppliers mainly ship to Europe, but they have been eager to open more markets in Asia to diversify their sales. For MY 2022, for the first time competition from Chile emerged due to diminished demand from the US.

For the pre-export process, farmers harvest by cutting the grapes from the tree based on the destination and variety ordered. They don't store grapes before the order, but if there are specific requests, they can cut them beforehand and go to the packaging house to do special packing. Usually, cold storage trucks are used for transport to maintain the cold chain, except in cases where farms are near the packing houses. 

Source: Emad fathy OM Tridge Egypt

Different rules and packaging styles depend on the destination, and it is highly advised that packaging be done immediately. When the orders are confirmed, the grapes are taken to the packing house, around 40-50 km from the farm. Most common types of packaging: 5kg carton with 10 clamshell, each 0,5 kg, or 4.5 kg cartons with either plastic bags or paper bags. Also, there are variants with 9 kg cartons, with plastic or paper bags inside.

Before loading, they inspect the product and how the packaging has been done. The grapes have to be shipped in temperature-controlled containers. The temperature differs based on the destination country. 1-1.5 degrees for China. Before sending to China, the loading port is closely inspected, including the necessary documents. For payments, FOB and CIF are mainly used. Main ports for export via sea are: Damietta & Port Said.

There are no special regulations required for grapes, only export requirements imposed by the Egyptian government which lasts 2-3 years. In the case of some varieties(ex. Sugarone), they change the name to superior variety to avoid paying the royalty cost.

Quality-related issues: Suppliers are keen to meet each buyer's quality requirements, which can be broken down into two main factors: Size and Sugar level.

1. Coloring: Color represents the main challenge for Egyptian farmers due to high temperatures and low dew in the morning, especially in the second part of the season, and does not reach 100%. Quality control, selection, and special care must be made in packaging and processing. Grapes are usually never picked up from farms until they reach the right color. On the other hand, some markets require class 2, which has 70% coloring. 
   
2. Sugar: Sugar levels are also tested carefully before picking up the grapes to ensure they meet the buyers' requirements. In most cases, suppliers take good care of controlling the sugar level, so the buyer's reclamation is minimal.
3. Size : Most buyers require size for the grape to be a minimum of 17 or 18 mm, except for the Red globe, which is a wider variety, and the minimum required size is 21 mm.

Brix level: White, Red, Black grapes - all different in sizes and Brix level. Generally, the lowest Brix level found in Egyptian grapes is a minimum of 14 mm for all the varieties. Still, the Brix level usually is not a significant issue in the quality of Egyptian grapes. 

Other quality issues include loose berries, which are handled in the packhouse through a selection process. Size remains the main problem, specifically for buyers requesting big sizes, which in dry seasons represent a significant obstacle.

Documentation

Depending on the market, buyers require specific documentation. Global Gap is required in the EU, as are other retail standards like BRC, SEDEX, and GRASP. MRL test is not required, but suppliers provide it with every shipment. A phytosanitary certificate is obligatory.

Source: Emad fathy OM Tridge Egypt

1. The quality check process begins at the farm, with a quality inspection of the bunch at the field (Brix level, size, damages from pests and diseases). It is not a very common practice to use a third-party inspection service for grapes, as most suppliers have the experience and expertise to test the farms themselves. 

Source: Emad fathy OM Tridge Egypt

2. The next step includes a grape quality check at the pre-cooling entrance hall. Like before, grapes are checked for sugar level, size, and damages from handling and pest and diseases. In the cases of quality issues, it is usually the poor cold treatment of the product, or sometimes if it has not been moved from the farm to the packing house properly.

Source: Emad fathy OM Tridge Egypt

3. Sorting and weight are done before putting grapes on pallets, labeling crates, and stacking them in pre-cooling storage prepared for loading. Before the loading process, hygiene and cleaning conditions are checked. Afterward, data loggers are put in the middle and final pallet rack.

The main competitors for Egyptian grapes are Italy and Spain. However, as seasons are not very long in Europe, Egypt has a comparative advantage over the European grape supply. 

The European market has the highest demand for Egyptian grapes, and there is a rising demand in Asia, Africa, and Brazil.

• Brazil: However, Egyptian grapes need to go through a specific treatment process that can possibly shorten the shelflife of grapes -> bottleneck 
  

Strengths: Diverse variety, seasonal advantage

Weaknesses: Documentation error, middlemen

Opportunities: Rising demand, investment opportunities

Threats: Logistics