Sinai

Egypt's Sinai Peninsula, where the Russian airline went down

As the country of honour at next year’s Fruit Logistica in Berlin, Egypt has much riding on the coming months, with numerous activities organised to promote the country’s produce sector, both before and during February’s exhibition.

Last month’s crash of a Russian airliner over Sinai, suspected by many officials to be the result of a bomb, could not have come at a worse time for the country, highlighting the worsening security situation in the region and jeopardising Egypt’s number one source of foreign currency, tourism.

“Occupancy rates have started going down in Sharm el-Sheikh and in the tourist areas,” said Mahmoud El Shishiny, marketing manager of producer-exporter Magrabi Agriculture. “However, regular flights, by airlines like Egypt Air, Air France and Lufthansa, are not being cancelled. It is only charter flights going direct to tourist areas that are facing cancellations, plus Russian flights to Cairo and Egypt Air flights to Moscow.”

According to El Shishiny, Russia’s temporary ban on flights to Sharm el-Sheikh has had the greatest effect on the country, since Russians make up the largest tourist group.

“However, the fruit and vegetables sector has not really been hit,” he added, “as we export by sea container,” he said. “Air shipments from Egypt also go on regular flights from Cairo, so there has been no effect there either.”

Heike Hagenguth, business development director at Pico Modern Agriculture, regrets the timing of the crash and concedes that the immediate consequences are unpredictable, but remains doubtful of any impact on the sector.

“During the revolution at the beginning of 2012, the country stood still,” she told Eurofruit, “but year by year things have improved and people have been becoming less and less anxious about receiving supplies from Egypt. Who knows how people will react to the plane crash? People may cancel holidays, but supplies of fruit and vegetables shouldn’t be affected.”

Indeed, Hagenguth drew attention to the frequent weather problems occurring in Europe during the winter period. These, she said, were likely to have a far greater impact on Egypt’s ability to supply the market with products like strawberries than any issues at home.

“We will still be able to get fruit on planes,” she said. “Which is good news, as we expect to have a very good strawberry season this year, both in terms of quality and volumes.”