Egypt: Prices for oranges have fallen to 15 cents per kg - new markets are urgently needed!

Published 2024년 4월 21일

Tridge summary

Egypt's orange exports to the European Union have significantly impacted local market prices due to the devaluation of the local currency and disruptions in accessing Asian markets caused by Houthi terror activities in the Red Sea. This has left small orange producers in Egypt in a challenging position, forcing them to sell their produce at low prices, around 15 US cents per kg. In response, Egypt is seeking new markets to mitigate these challenges, with a focus on Central Asia. A FAO/EBRD project is supporting this shift by organizing a trade mission to Uzbekistan and potentially Kazakhstan, taking advantage of the zero import duty on citrus fruits in Uzbekistan and the region's growing fruit market. This effort includes extensive research and upcoming online training for exporters from Egypt and Morocco to facilitate this transition.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to EastFruit analysts, Egypt’s success in exporting oranges to the European Union this season has a very unpleasant downside for the country - extremely low prices on the domestic market. What are the reasons for this situation and what can be done about it? The main reason for the sharp drop in prices on the domestic market is the sharp devaluation of the local currency, which EastFruit experts previously warned against. This, on the one hand, made Egyptian oranges more competitive in foreign markets, but, on the other hand, made prices expressed in dollars incredibly low for producers. The second reason is the Houthi terror in the Red Sea, which actually cut Egypt off from the most profitable Asian markets and forced it to sell oranges mainly to the European Union. However, the EU market for consumption is practically not growing, so Egypt, in order to sell more, had to make serious price concessions, which significantly reduced exporters’ margins and forced them to ...

Source: Eastfruit