For the season 2023/24, Egypt will export one of the lowest quantities of oranges to Southeast Asian countries, yet it is expected to remain a significant participant in the market, as per EastFruit.
From November 2023 until June 2024 Egypt exports only 42,000 tons of oranges in key Southeast Asian countries (excluding Hong Kong and Vietnam) This is among of the lowest numbers during the recent season. The biggest decrease in the presence of Egypt in Southeast Asia was observed in the months of January through February, which coincided with the peak of the production of oranges.
“Unfortunately the blocking in the Red Sea by Yemeni Houthis caused a major hit to the supply of Egyptian oranges to Asia in the beginning the time of season. Even though Egyptian exports did recover between March and April, even reaching the record level in May, all time was wasted. This means that it is the first time in season of 2019/20, Egypt risks facing a major drop in the quantity of its supply of oranges towards Southeast Asian countries,” stated Yevhen Kuzin. He is a Fruit and Vegetable Market Analyst for EastFruit.
Egypt could have every opportunity to improve its standing in the region this time. FAS USDA analysts expected a record-breaking harvest of oranges in Egypt this year and, as a result, record export of the fruits to Egypt. The demand of oranges from Southeast Asian countries would have been fueled by the area’s booming economic growth and a growing consumer market and an exploding tourism industry.
However it was instead, the Red Sea blockade temporarily closed the Asian market for Egyptian exporters. The prices are already minimal due to the decline of the Egyptian dollar, plunged more. For instance, in April, in spite of the return of supply towards Asia by an alternative route through Africa in the region, oranges sold for sale on the local market in Egypt were available for sale at a price that was around 15 US cents per kilogram.
“Excluding Hong Kong, Southeast Asia has set records for exports of oranges during the initial seven months of the season However, Egypt did not have a significant impact on the events. The increase in supply was largely caused by increased exports coming from China that has exported more oranges into Southeast Asia than Egypt, even though it had previously been at the fifth spot among sources,” continues Yevhen Kuzin.
China as well as China and the USA are the main competitors to Egypt in the area in the same way that the two major suppliers (South Africa as well as Australia) have a presence within the Southeast Asian market from June through November. The imports from Australia each year fluctuate between 29,000 and 36,000 tonnes and South Africa supplies the region (excluding Vietnam and Hong Kong) with 45,000-74,000 tons of oranges. The two countries compete with Egypt to be the best in the list of suppliers. In the 2022/23 season that was just finished, Egypt was the leader (62,000 tons) followed by South Africa took second place with 58,000 tonnes.
“China has, during the initial seven months of the season has exported more oranges into the region than during the whole previous season and managed to fill the gap that was left by Egyptian goods. However, US exports have almost decreased by half over the last five seasons, to around 20,000 tonnes that is something which Egyptian producers should pay close at. It is becoming ever more challenging for Egyptian producers to compete in the lower-cost segment Chinese oranges. Furthermore, they won’t be able reduce the cost of their goods for a long time. The gradually removing from America from the market. USA out of this Southeast Asian market creates excellent prospects for exporters of premium oranges as well. In this sector increasing logistic costs are no longer a major issue,” concludes Yevhen Kuzin.
Source: east-fruit.com