Outlook on Egypt’s 2020 Citrus Season: Export, Quality, and Price

Egyptian Government Reports Successful 2018/2019 Season

With the Egyptian grapefruit season starting in several weeks, the Egyptian citrus season is kicking off. Egyptian citrus' exports are doing very well. The demand for citrus fruits from Egypt, especially for oranges, has increased massively, mainly due to increased imports from China. According to the Egyptian government, Egypt became the second-largest exporter of citrus fruits in the 2018/2019 season, exporting around 1.7 million tons of citrus.

Although China is certainly a driver behind the increased exports, the Egyptian government also names another reason for the increase: improved quality regulations. The Agricultural Export Council has set strict regulations to ensure that all Egyptian fresh produce exports conform to international standards. Under the new regulations, all products destined for export have to undergo strict analysis to ensure that no harmful pesticides were used. The Egyptian government sees these regulations as a reason for increased demand and is very optimistic about the upcoming season.

Export Expectations for the 2019/2020 Season

Exporters, however, are more cautious. McCoy International Trading, an exporter of citrus, thinks that the demand for citrus is indeed rising, but that this year will prove to be a difficult year for exporters. He attributes these difficulties to two main reasons. Firstly, the stricter quality regulations set by the government make exporting more difficult. Although the regulations ensure high quality, it takes a while for the exporters to receive the necessary documents and stamps. This means that the trade deals cannot be closed as quickly as in the previous years.

Secondly, US dollar rates have declined against the Egyptian Pound. Last year, 1 USD equaled 17.8 EGP, but this year that has gone down to 16.1 EGP. The high price of the Egyptian pound makes Egyptian citrus less attractive and importers and exporters will have to find middle ground on who will cover those costs. Nevertheless, the Egyptian citrus is still competitively priced compared to European citrus, despite the currency appreciation.

High Quality in the 2019/2020 Season

Nevertheless, McCoy International Trading expects that the quality of Egyptian citrus fruits is better than ever during the upcoming season. Due to 2 months of heavy rain, the citrus fruits have become juicier and their outward appearance has significantly improved as well. This is especially beneficial for the Chinese market, as Chinese consumers prefer “plastic oranges,” meaning shiny and blemish-free oranges, states McCoy International Trading.

The expected high quality, as well as the competitive price, make the Egyptian citrus fruits still highly demanded, despite increased paperwork and currency appreciation. Whether this upcoming season’s exports will surpass last year’s results remains to be seen.