Egyptian Orange Exports Dominate the Growing Brazilian Import Market

Fresh Orange

Published Aug 3, 2023

In recent years, Egypt has made significant strides in dominating the Brazilian orange import market, despite Brazil's position as the world's leading exporter of orange juice. The surge in Egyptian orange exports to Brazil has been quite impressive, considering the vast difference in orange production between the two countries. In 2022, Brazil's orange harvest reached nearly 17 million tons, while Egypt's production only amounted to 3.6 million tons. However, the demand for imported oranges for the fresh Brazilian market has coupled with a decline in orange production from Florida. This has given Egypt a golden opportunity to increase its orange exports and outperform Spain as the leading orange supplier to Brazil.

The story of Egyptian oranges in the Brazilian market began in 2017 when Egypt signed a free trade agreement with MERCOSUR, a trade union of South American countries. However, it wasn't until 2020 that the first test batches of Egyptian oranges, totaling 75 tons, entered Brazil. From there, the volume of exports grew exponentially, with 3.6 thousand metric tons (mt) shipped to Brazil in 2021 and a staggering 11.8 thousand mt in 2022. Even in the first half of 2023, Egyptian orange exports to Brazil have remained steady.

The overwhelming difference in orange production between Brazil and Egypt is what makes this feat even more remarkable. In 2022, Brazil's orange harvest reached nearly 17 million mt (mmt), while Egypt's production only amounted to 3.6 mmt, almost five times smaller. Despite Brazil's vast production capacity, there is a substantial demand for imported oranges for the fresh market, as most of Brazil's oranges are used for orange juice production.

The need for imported oranges in Brazil has been driven by the continuous decline in orange production in Florida. In 2022, Florida experienced its lowest orange harvest in 56 years, forcing local processors to compensate for the shortage by increasing imports from Brazil. As a result, Brazil annually imports between 20 thousand to 30 thousand mt of oranges for its domestic market.

Egyptian oranges mainly enter the Brazilian market from January to May, where they face competition primarily from Spain. However, in 2022, Egypt outperformed Spain for the first time, becoming Brazil's leading orange supplier. During December, when Egyptian shipments are on their way to Brazil, Spain regains its top position. In June and July, orange imports in Brazil reach a low point as the market focuses on domestic produce. During this period, Brazil’s importers switch to oranges from Southern American countries like Uruguay, Argentina, and Chile.

Source: Trade Data Monitor

Stelamari Ito, Tridge's Global Buyer Development Manager in Brazil, pointed out that the shortage of Uruguayan oranges has created an opportunity for Egyptian oranges to flourish in the Brazilian market. Many importers seized this opportunity and increased their imports of Egyptian oranges. Consequently, market prices declined around 30% compared to the beginning of the season.

While Brazil is not Egypt's primary target for orange exports, the country remains an essential destination. In 2022, Saudi Arabia imported about 300 thousand mt of Egyptian oranges, and India received 100 thousand mt. Additionally, export volumes to the European Union and Southeast Asia are also significant. However, the continuous search for new markets and diversification of exports remain essential strategies for Egyptian exporters, ensuring further growth and opportunities in the future.

The Egyptian orange export industry has successfully established a dominant position in the growing Brazilian import market. Despite Brazil's status as the world's largest orange producer, the demand for imported oranges for the fresh market, coupled with a decline in orange production in Florida, has presented Egypt with a golden opportunity. With a proactive approach toward finding new markets and diversifying exports, the future looks promising for Egyptian orange exports in Brazil and beyond.