2021/2022 Egyptian Orange Season Facing Some Initial Challenges

Published 2022년 2월 23일

So far this season, Egyptian oranges have been facing some challenges, including unfavorable weather, increased production costs, and decreased demand. It is predicted that production will drop by 16% to 3 million metric tons, and exports will decline by 13.2% to 1.45 million metric tons. Despite this decrease, it is expected that Egypt will maintain the top position as the largest orange exporter in terms of volume.

Predictions state that Egypt will maintain the top orange exporting position, in terms of volume, in the 2021/2022 season despite the challenges producers have been facing so far. According to the U.S. Department of Agriculture’s Foreign Agricultural Service (FAS), Egyptian orange production is expected to decrease by 16% to 3 million metric tons. The drop in supply will lead to a 13.2% decrease in the export volume, resulting in orange exports of 1.45 million metric tons.

Source: U.S. Department of Agriculture’s Foreign Agricultural Service (FAS)

The Egyptian orange planted area has remained stable, whereas the harvested area has decreased by 6.9% from the 2020/2021 season to the 2021/2022 season. Unfavorable climate conditions and fluctuating temperatures during flowering damaged orange trees and contributed to the decrease in harvest areas. The weather has affected producers depending on their location, some growers in Nubaria District have increased their production by 15 to 25%, while other growers in different areas like the Northern Coasts have lost 40% of their harvest. Egyptian orange production in the Nile Delta has been impacted by a 25-30% increase in fertilizer prices since producers have dropped or decreased its use.

As for exports, Egypt has already experienced a decrease so far this season. Producers have been facing a drop in demand as other supplying countries, like Spain, Greece, Turkey, and South Africa are still active in the market despite being off-season. These countries have been offering their leftover supply at very competitive prices, whereas the price of Egyptian oranges has increased due to a rise in production and freight costs. Fertilizers, pesticides, and raw materials have doubled in price, directly affecting production costs. Shipping costs from Egypt have also increased, making Egyptian produce less competitive.

Despite the initial decrease in demand, forecasts state that once other producing countries withdraw from the market, demand for Egyptian oranges will increase. It is expected that this season Russia, Saudi Arabia, the Netherlands, India, and Bangladesh will remain as the top five export destinations for Egyptian oranges. The Egyptian government and the private sector have been working on opening new markets like New Zealand, Brazil, and Japan. This year Egypt will open new export destinations for oranges, providing a positive outlook for exports.

Egyptian orange producers have a strong link with the international market since most producers also own packaging facilities and export. These exporters also buy from local farmers when their supply is not sufficient. According to the U.S. Department of Agriculture’s Foreign Agricultural Service (FAS), this season, Egyptian oranges will face a decrease in domestic consumption of 19.3% to 1.25 million metric tons since producers are directing their supply towards exports. According to Tridge's Engagement Manager in Egypt, Amal Abdulkader, production is recovering, supply is more abundant, and citrus packhouses are full of Valencia oranges.