05 January 2023
Supply volume increases to country at war.
RUSSIA, currently at war with Ukraine, has seen its share of the Egyptian potato export market share reach record levels.
As the main market for the country's potatoes, as well as other vegetables and fruit, the share of the Russian market from Egypt in January-September 2022 exceeded a third of all exports and reached 34% for the first time, EastFruit analysts have revealed.
Proceeds from the exports of vegetables, fruits, and potatoes from Egypt to Russia during this period amounted to $405 million, an increase of 28% compared to the previous season. All of these were record-breaking for Egypt.
Russian purchasing power continues to decline owing to the rapid decrease in the number of residents of the country, the devaluation of the national currency, the general economic and political instability, and international sanctions imposed against the country. The growing dependence on the exports of Egyptian fruits and vegetables to Russia dramatically increases the risks for the Egyptian horticulture business in the short to medium term.
Egyptian suppliers’ revenue from the exports of potatoes in 2022 increased by 60%, or by almost $52 million, and amounted to $138 million. Revenues from exports of frozen fruits and berries grew by 7% to $24 million, frozen vegetables – by 73% to $20 million and onions – by 18% to $14 million. In addition, among the large export commodities were mango, carrot, fresh strawberry, cauliflower and broccoli, lemons, and peaches.
Noteworthy, Saudi Arabia remained the second most important sales market for Egyptian fruits and vegetables in the first 9 months of 2022. The volume of exports to Saudi Arabia increased by 35%, and its share in the supply of vegetables, fruits, and potatoes from Egypt was 11%, which corresponds to the average for recent years. Meanwhile, exports of fruits and vegetables from Egypt to the Netherlands and the UK, the next largest markets, fell by 8% and 12%, respectively.
It is obvious that Egypt will have to diversify the exports of vegetables and fruits in 2023 to avoid potential problems with the demand from Russia.
Source: East Fruit