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Egypt showcases its export capacity at Fruit Logistica 2016

Egypt’s agriculture catapulted to international success at FRUIT LOGISTICA 2016

More than 90 Egyptian companies supported the Egyptian Agriculture Export Council by exhibiting under its banner at Fruit Logistica 2016, covering a total exhibition area of more than 1,700 m2.

The official Partner Country for Fruit Logistica 2016, Egypt held more than 700 business meetings during the trade show as the country gears up to expand its agricultural exports beyond its current loyal partners. “We have put our trust in this show since 1999 and this year we’ve broken all participation records,” said Egyptian Agriculture Export Council chairman Ali Eissa.

Egypt boasts vast swathes of new land untouched by pollution or disease. These new areas are ideal for the cultivation of high quality produce and Egypt is now maximising this potential by expanding its agricultural area through major reclamation projects. Furthermore, its unique geographic location is conducive to high quality production, which employs more than 32% of the country’s workforce.

In 2014/2015 the country exported over two billion dollars’ worth of agricultural products, not including rice. Egypt is the world’s largest exporter of oranges, second largest producer of artichokes, fifth biggest producer of tomatoes (specialising in sun-dried and sun-blush tomatoes) and the world’s sixth largest producer of strawberries. Its product portfolio also includes pomegranates, dates, herbs and spices.

Read more about Egypt here: www.eurofresh-distribution.com/news/egypt-fruit-logistica-2016-partner-country-set-export-growth

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Rush of investment in Egypt’s retail sector

There’s a significant surge of investment in Egypt’s retail sector as the shopping habits of the country’s consumers’ increasingly move towards modern retail.

The shopping habits of Egyptian consumers are increasingly shifting towards the modern retail sector, resulting in a significant surge of investment in this sector, reports the USDA.

In its report ‘Nile Nuggets for January 2016’, it says the Al-Bustan Real Estate Development Company will invest LE (Egyptian pounds) 3 billion to build four new “HyperOne” branches in New Cairo, Shorouk City, Badr City and Assiut.

Also, the Fathalla Gomla Market Group will invest LE 70 million to establish a 10,000 m2 supermarket in Borg El Arab.

Furthermoe, UAE- based Spinneys is said to be “aggressively expanding” with plans to open 23 new branches in the Delta and Upper Egypt governorates in the next two years with a total investment of LE 5 billion. [$1 = 7.83 LE]

According to the report, the company currently owns six branches in Cairo, the Red Sea, and Qena and retail manager Mahmoud Meawad has stated that Spinney’s has the goal of achieving 35% market share in Egypt’s retail market.

Source: USDA, Nile Nuggets for January 2016
Image by: Alma E. Guinness [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons 

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Egypt develops GM tomato varieties resistant to leaf curl

Despite a moratorium on the commercialisation of genetically engineered (GE) crops in Egypt, biotechnology research and development continues there and tomatoes and potatoes are among the crops being focused on.

Despite a moratorium on the commercialisation of genetically engineered (GE) crops in Egypt, biotechnology R&D continues there and tomatoes and potatoes are among the crops being focused on.

According to the USDA GAIN report ‘Egypt: Agricultural Biotechnology Annual’, tomato varieties have been engineered that are resistant to tomato yellow leaf curl virus (TYLCV). The disease has spread to all of the main vegetable-producing regions of Egypt where it has become the limiting factor for tomato production, causing up to 100% yield loss, the report says.

But TYLCV-resistant tomato varieties have been engineered through collaboration between Cairo University, the Agricultural Genetic Engineering Research Institute (AGERI) – which is Egypt’s premier biotechnology research organisation – and the Donald Danforth Plant Science Center. They used the “siRNA strategy to block the viral life cycle in the plant and prevent it from spreading, thus acquiring virus resistance.”

“If successful, the plants will enable the economic production of high quality tomatoes while reducing the need for chemical protection methods,” the report says. Approval to conduct field trials on the tomato varieties is needed from Egypt’s National Biosafety Committee (NBC). On September 7, 2014, the former Minister of Agriculture Dr. Adel El Beltagy issued a decree to re-establish the committee, but it has yet to convene a meeting. Also, a biosafety bill has been drafted in Egypt and awaits submission to Parliament for ratification.

On potatoes, the report said there has been work on the following:

  • Genetic transformation of potato cultivars for resistance to bacterial pathogens Ralstonia solanacearum,
  • Overexpression of potato β-1, 3 glucanase gene to enhance resistance to late blight disease,
  • Insertion of chitinase gene to attenuate early blight disease in some potato virus resistant lines.

Image: “Vallee fertile du Nil a Louxor”. Licensed under Public Domain via Wikimedia Commons

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Egypt, Fruit Logistica 2016 partner country, set for export growth

the future looks bright for Egypt’s agricultural exports. In the last decade, it has increased the volume of this trade by 226% and now exports to 145 countries. New investments in the sector and its commitment to the establishment of international specifications in packaging will support further growth.

The Egyptian export sector will be out in force at Fruit Logistica 2016 with 89 exporters exhibiting, up from 76 this year.

Egypt is the partner country for the event, a leading international trade fair for fresh produce marketing, which takes place February 3-5 in Berlin. The country’s pavilion in hall 2.1 will host the official Fruit Logistica opening on February 3.

According to a Fruit Logistica press release, the future looks bright for Egypt’s agricultural exports. In the last decade, it has increased the volume of this trade by 226% and now exports to 145 countries. New investments in the sector and its commitment to the establishment of international specifications in packaging will support further growth.

In 2014/2015 the country exported over $2 billion worth of agricultural products, excluding rice.

“The farming industry and its related sectors are vital to the Egyptian economy, with cultivated areas reaching around 9 million acres. They employ 32% of the country’s workforce and account for 14.7% of GDP,” the release says.

New African free trade area

It also says that an important step for Egypt was the agreement of 26 African countries in June this year to create a free trade area. The new free trade agreement Tripartite is integrating the existing agreements COMESA, EAC and SADC. In 2017, when Tripartite is supposed to become effective, it will facilitate the movement of goods between member states.

The safety and quality of food products and water supplies are of great concern to Egypt’s health authorities. They ensure safe, high-quality fresh produce while complying with numerous global standards and international certification bodies and institutions. They carefully monitor farms and exporters to ensure the quality of exported products, it says.

Egypt’s agricultural exports

According to a report by the USDA Foreign Agricultural Service, Egypt was the world’s largest exporter of oranges in 2014/2015, but it also exports a wide variety of other kinds of fruit, and vegetables.

Top farm exports in 2014/2015

  • oranges 1.22 million tons
  • potatoes 650,000 tons
  • onions 492,000 tons
  • dry beans 182,000 tons
  • grapes 111,000 tons
  • tomatoes 109,000 tons
  • pomegranates 55,000 tons
  • green beans 44,000 tons
  • mandarins 36,000 tons
  • strawberries 34,000 tons
  • lemons 33,000 tons
  • peanuts 26,000 tons

Egypt’s agricultural export partners

  • Exports to 145 countries
  • In 2014/2015, 727 Egyptian companies exported 743,000 tons to the EU. During the same period overall exports reached 3.53 million tons.
  • 21% of Egypt’s farming products are exported to the EU where the main markets are the UK, Netherlands, Italy, Belgium, Greece, Germany, Romania, Lithuania, Spain and France.

Egypt’s main non-EU trading partners for its produce include:

  • Saudi Arabia (18% of Egypt’s overall output),
  • Russia (18%)
  • The UAE, Kuwait, Iraq, Libya, Syria, Lebanon, Jordan and India.

Logistics and transport

  • Egypt’s unique geographic location in the Middle East combined with an expanding infrastructure base enhances the country’s position as a key global logistics hub for companies looking to do business in, or trade with, Europe, Asia and Africa.
  • About 90% of Egypt’s foreign trade is shipped through ports.
  • The expansion of the Suez Canal is expected to double its capacity to 97 ships a day.
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Turkey is Russia’s largest partner

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About 1.13 billion tons of vegetables and 676 million tons of fresh fruit are produced per annum in the world. According to data from BAIB (West Mediterranean Exporters Union of Turkey), world fresh exports in 2014 reached US $110 billion with the largest share from bananas (9.1%), tomatoes (8%), table grapes (7.3 %) and apples (6.8%).

Turkey benefits from extensive lands and a favourable climate and is a traditionally agricultural country. The country cultivates 28.5 million tons of vegetables and 18.2 million tons of fruit. It is a world leading grower of various fresh products:

  • No. 1. world producer of figs (26%), cherries (21%), quinces (18%) and apricots (19%);
  • No. 2. producer of melons and gherkins;
  • No. 3. producer of apples, tomatoes, watermelons and mandarins;
  • No. 4. pepper producer;
  • No. 5. aubergine producer.

One of the leading world producers and exporters

In 2014, Turkey exported 3.5 million tons of fresh fruit and vegetables valued at $US 2.3 billion. Citrus fruit exports came to $ 942 million (1.5 million tons), and other fruit exports to $720 million (775,000 tons). Vegetable exports were valued at $710 million (1.1 million tons). The country is the leading worldwide exporter in:

  • No. 1. exporter of figs;
  • No. 3. exporter of lemons, mandarins and cherries;
  • No. 4 tomato and apricot exporter;
  • No. 5 orange and grapefruit exporter.

The main destination for Turkey is Russia ($938 million, 39% of total exports). The country’s other large sales markets are Iraq, Germany, Ukraine and Bulgaria.

Turkey is also the largest source for Russian imports of fresh fruit and vegetables, accounting for 17.9% of the total. Other Russian import sources are Ecuador (11.9%), Egypt (5.6%) and Spain (5.5%).

Throughout Turkey, there are 60 exporter unions. West Mediterranean Union, established in 1968, groups together exporters from 25 different sectors from the region around the cities of Antalya, Burdur and Isparta. The fresh fruit and vegetable industry is the leading sector for regional export activity.

The Mediterranean Exporter Union based in Mersin is the Turkish coordinator for the sector. It has 990 members exporting fresh products.

Egypt guarantees high quality products

“Egyptian Agriculture Service & Trade Co. (EGAST) was established 30 years ago,” said Dr. Hatem El Shalma, the company’s CEO. “We trade in onions, potatoes, oranges, and are going to do pomegranates soon. All of these are grown by our farmers, and we control all the processes and guarantee the quality for our customers.”

Last year, potato production amounted to 70,000 tons. It was traded locally, sold to processing industries (Lay’s, etc.) and exported to Russia, Europe and the Far East. Production of onions came to 15,000 tons, exported to Russia and Asia. Production of oranges was 10,000 tons, but this will double next year. They were shipped to Russia and also to Asia: China, Bangladesh, Malaysia and India. “They are a fast growing market and we are pleased with our sales there,” El Shalma said.

EGAST participates in the World Food exhibition because Russia is the largest market for sales. “It is vital to choose a reliable partner,” he said.

El Wadi, the oldest exporter from Egypt

“Our company is a pioneer in Egypt,” says Mohamed Elbialy, Export Manager for El Wadi Export Co. “It was established in 1964 and at that time had exclusive rights to export agricultural products. Russia was our main partner and remains the largest market for us.”

The basic fresh products traded by El Wadi are citrus and other fruit, onions, garlic and other vegetables. Last season, the company exported 80,000 t of oranges, 10,000-15,000 t of onions, 5,000 t of lemons, 3,000 t of potatoes, etc. “We shipped 30,000 t of fruit and vegetables to Russia,” says Elbialy. “After the introduction of the embargo, demand has grown. We also supplied 10,000 t of goods to Europe and 30,000 t to the Middle and Far East and to Asia.” Indeed, the Far East is a growing market. Pomegranates, grapefruit, strawberries, semi-dried dates and other fruit are exported on a large scale. Last year the protocol with China was signed and the company has shipped 100 containers of Egyptian goods there.

El Wadi owns 4,250 acres of orchards where Naval, Baladi and Valencia oranges are grown. Several specialized production stations have been set up in various regions of the country and equipped with modern machinery.

Thanks to its great experience, the company has become distinctive in choosing the best products, preparing and packing them so as to comply with the best international standards: ISO 9001:2000, ISO 22000, HACCP, BRC, GlobalGAP, etc.

Uzbekistan also grows and exports

The volume of Uzbek fruit and vegetables exported to Kazakhstan grew by 10% in 2014, but their exports to Russia have decreased by the same volume. “The reason is the lack of tariff preferences for our products,” states the Vice President of Uzbekistan, Rustam Azimov.  As a result, “grey” schemes are used, and re-export from Kazakhstan keeps growing. “The application of the preferences will help to reduce prices for our products.”

In the 1st quarter of 2015, Uzbekistan produced 1.3 million t of potatoes, 2.6 million t of vegetables, 163,000 t of cucurbitaceae, 840,000 t of fruit and berries and 24,000 t of grapes. There were 21,800 ha of orchards and 16,600 ha of grapes planted and reconstructed, while 264 ha of hothouses in 500 farms and 400 ha in 9,300 of subsidiary smallholdings were built.

Second wave of ruble devaluation, 27% drop in consumer spending

The official rate of the dollar in Russia grew by 10% last August. Inflation has been at 15.6 % since the beginning of 2015 while the population’s real income has fallen by 2.9%. More than 60% of the population have reduced their travel and food expenses. In fact, 65% of Russians cut down on food spending, while 27% spent less on clothes and shoes, and 17% less on entertainment.

Mexican berries in Russia, too

Berries Paradise, one of the largest Mexican berry producers, has also begun to supply the Russian market, besides Japan and other Asian countries. While expanding its destinations, the company is going to enter the markets of China and Dubai. “Russia is an important target market for us,” said international sales manager Ana Blanca Solis. “That is why we are participating in the World Food exhibition. We have observed Russian interest in our berries and hope to find new customers.”

Berries Paradise is a group of companies producing and exporting blueberries, raspberries and blackberries. “Last season, we delivered over 4 million boxes,” she said. The crop is available from mid-September till June. The berries are exported mainly to the US, Asia and Europe, including the Netherlands, Germany, Spain and the UK.

Organics also in more demand in the East

“We aim to show people a different way of life; a life in harmony with nature,” said Milena Tsvetanova, from the purchasing department of Balev Bio Ltd, one of the leading Bulgarian companies specialised in importing organic food and non-food products. The company cooperates with more than 400 suppliers, mainly from Europe, and its range of products includes more than 4,000 items.

The company owns and runs three organic shops under the Balev Bio Market brand in the biggest cities in Bulgaria: Sofia, Varna and Plovdiv. An online store was also launched recently. “Our clients are the biggest supermarket chains, specialist organic food shops and health food stores, restaurants, etc.,” Tsvetanova said.
A fifth of its turnover comes from fruit and vegetables, its assortment of which covers 300 items. The most popular products are bananas, citrus, apples, avocadoes, tomatoes, cucumbers, carrots, etc. At the beginning of summer, Balev Bio offered its customers exotic fruits like mango, papaya, mangosteen, passion fruit, rambutan, red banana, longkong, etc. In the summer season, watermelons, melons, figs, peaches, apricots, tomatoes, cucumbers, peppers, courgettes, lettuces etc. were sold.

To promote their products, Balev Bio uses social networks, signboards and tastings in shops to provide as much information as possible about the benefits of its products.

The Bulgarian organic market for fruit and vegetables is not big, however interest in organic consumption has been growing slowly but steadily.

NB

WorldFood Moscow

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Egypt the Fruit Logistica 2016 partner country

Egypt first exhibited at FRUIT LOGISTICA in 1999. The Egyptian exhibition presence is organised by the Egypt Expo & Convention Authority (EECA).

Egypt has been named as the official partner country for Fruit Logistica 2016, taking place February 3-5 in Berlin.

Event organisers said in a press release that the North African country will focus on demonstrating its potential and presenting its high-quality products to win over trade visitors.

Messe Berlin CEO Dr. Christian Göke: “The history of agriculture in Egypt dates back more than 5,000 years – no other country in the world can look back on such a wealth of experience. Today, Egypt plays a significant role in the global fresh produce industry with substantial fruit and vegetable exports to 145 countries.”

Egypt exported USD 2 billion worth of fresh produce in the 2013/2014 season, primarily to Russia, Saudi Arabia and Great Britain. Iraq, the UAE, Libya, Italy, the Netherlands and Kuwait are also important customers. Export volumes rose from 1.7 million tons in 2005/2006 to 2.9 million tons in  2013/2014, a 69% increase.

In the 2013/2014 season, Egypt’s main exports included citrus fruits (1,142,000 tons), potatoes (688,000 tons), onions (359,000 tons), grapes (99,000 tons), pomegranates (85,000 tons), strawberries (34,000 tons) and green beans (31,000 tonn).

Egypt first exhibited at Fruit Logistica in 1999. The Egyptian exhibition presence is organised by the Egypt Expo & Convention Authority (EECA)

Source: Fruit Logistica