Will cheap onions from Egypt flood into Europe in the coming days?

Published 2024년 4월 1일

Tridge summary

The Egyptian government's ban on onion exports is anticipated to end on March 31, 2024, with expectations of resuming exports by the following day. This decision comes in the wake of a significant drop in domestic onion prices and a pressing need to enhance foreign exchange earnings after the national currency's devaluation. Onion production in Egypt is expected to rise in 2024, which could further reduce prices. Meanwhile, Europe is experiencing high onion prices due to decreased yields from adverse weather, quality issues, and logistical hurdles, despite importing large volumes from Central Asia and Russia. Egyptian exporters are gearing up for the export resumption, with an increase in onion offers on the EF Trade Platform.

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

Original content

Despite the lack of official statements from the Egyptian government on the issue of the ban on onion exports, which, we recall, was extended until March 31, 2024 inclusive, most market participants are confident that from April 1 they will be able to begin export shipments. EastFruit analysts note that there are currently no reasons to extend the ban on onion exports - domestic retail prices for onions have fallen almost three times and amount to about 30-33 US cents per kg at the current exchange rate. Accordingly, wholesale prices are even lower. In addition, Egypt was recently forced to once again sharply devalue the national currency due to an imbalance in foreign exchange earnings. At the same time, onions are one of the most important sources of foreign exchange earnings in the structure of the country’s agricultural exports. Also, according to EastFruit estimates, onion production volumes in Egypt in 2024 may increase sharply, which could lead to an even more significant ...

Source: Eastfruit