Increased Supply of Egyptian Oranges in Major Exporting Markets Expected at the Beginning of 2023

Published 2023년 1월 10일

Increased production of Egyptian oranges in MY 2022/23 is expected to boost export. Production is estimated to increase by 20% YoY to 3.6M mt and exports by 30.77% YoY, reaching 1.7M MT, according to the USDA. Major export destinations continue to be Russia, the EU, and Middle Eastern countries, with the addition of India, in which the increased supply of Egyptian oranges caused a price drop at the end of 2022, according to Nidhi Kumari, Tridge Engagement Manager in India. During peak sales months, January and February, Egyptian traders will have to work with limited shipping lines to the Russian market.

In recent years, Egypt has become one of the world's leading producers and exporters of oranges. In 2023, the country is expected to export a record level of oranges of 1.7M MT (a 30.77% YoY increase) due to a rise in production. Overall optimal weather conditions during the flowering of orange trees increased fruit setting and production. On the other hand, heat before the harvest affected the size of fruits, leading to a majority of small and medium-sized fruit.

In MY 2022/23, orange production in Egypt is forecasted to go up by 20% YoY to reach 3.6M MT, according to the USDA’s annual citrus report for Egypt. Besides favorable weather, citrus growers and commercial farms in Egypt have implemented Integrated Pest Management (IPM) approach, using biological control and closely monitoring pests and diseases. Additionally, farmers in Egypt can take advantage of extension services from both governmental and private equities in charge of implementing good agricultural practices and advice via applications on smartphones. Egypt's two primary varieties of oranges are Washington Navel and Valencia orange, while other types include Baladi orange, Blood orange, Khalily orange, Yafawy oranges, and Sweet oranges.

Source: Tridge

Egypt's orange exports have grown steadily in recent years and are expected to reach 1.7M MT in 2023. Albeit a smaller volume than the 1.79M MT exported in 2019, it is a significant YoY increase of 30.77%. Most of Egypt's orange exports are destined for the EU and the Middle East, with Russia, Saudi Arabia, and the Netherlands as the top three destinations. India is also a significant importer of Valencia oranges from Egypt. In December 2022, Egyptian traders arranged the first Valencia oranges bookings for the 2022/23 season. Prices dropped from USD 19.34/15 kg box to USD 13.29/15kg box in the last days of 2022 due to an oversupply and continued decreasing in January 2023, according to Nidhi Kumari, Tridge Engagement Manager in India. Due to logistical obstacles, the Russian market will be challenging for Egyptian traders in February, a peak export month. Large volumes are expected to be shipped from Egypt this month, while more operating shipping companies will be needed for increased trade. Exporters will have to plan accordingly to minimize delays and soften price movements that are expected to decline due to the oversupply.

Seasonality of Fresh Orange in Egypt and South Africa

Source: Tridge

Egypt's main competitor in the EU and Saudi Arabia market, Spain, has had a difficult season, with drought hitting primary orange-producing regions. Although a significant orange exporter, South Africa has a different seasonality, with the peak harvest in August, and is not a direct competitor to Egypt. Managing logistical bottlenecks, especially in Russia, will be crucial for the export of Egyptian oranges in 2023.