Mina Eissa, founder and agribusiness export consultant at RejoicePro, analyses Egypt’s latest grape campaign, one marked by good quality and demand, if not prices
The start of the Egyptian table grape season was marked by a considerable increase in demand versus a drop in volumes. This has enabled growers and exporters to get good prices. The campaign for Egyptian table grapes presented a challenging landscape both in terms of production and marketing, yielding a mixed bag of results. While overall volumes decreased, the season itself was extended. Demand grew; however, prices did not follow suit. Overall, the Egyptian grape industry managed to perform reasonably well, but it remained in a precarious position.
The experience of the season varied greatly between growers and exporters. One big exporter noted, “For exporters, this year was on a par with the previous one due to increased demand and stable programmes. In contrast, growers saw a decline in volumes for nearly all grape varieties compared to last year. The unusually warm winter negatively impacted tree fertility and bunch weight, leading to a drop in volumes by as much as 25 per cent.”
This year’s early harvest in May allowed white and red seedless grape growers to prolong the season, despite the reduced volumes. Consequently, growers enjoyed better returns compared to last year, although they also faced costs that were 30-40 per cent higher. Unfortunately, the timing of the Egyptian pound’s devaluation coincided with the high prices for packaging materials they had already bought, which affected their profits.
Quality and price
Severe and uncertain weather changes have resulted in lower production than last year. However, there were no significant quality issues reported this year, as evidenced by the minimal complaints from customers. Notably, the yield and quality of early white grapes surpassed those of red grapes. Production increased in most regions during the mid-to-late season, and demand was stronger than the previous year.
Egyptian grapes hit the market during a period of scarcity. While prices were nearly identical to those of the previous year, exporters took advantage of the currency devaluation. Additionally, they faced limited competition, as the Red Sea crisis obstructed Indian grapes from being delivered to Europe.
At the start of the season, Egyptian grape prices were higher than at the start of the previous season. The EU market seemed to be responding very well with prices ranging from €11-€13 per 5kg carton for White Seedless, and €12-€14 for Red Seedless. Farm gate prices, before sorting and packing, have risen from an average of EGP30-40 per kilo last year to EGP60-70 this year. Prices have also risen in the local market. Overall, many European importers increased their programmes by 20-30 per cent at the start of this season.
Logistics and shipping
The Red Sea crisis is adding to exporters’ concerns. Exporters were reluctant to ship grapes to the Far East because of the extra transit times, which can be as long as 30 or 40 days for some destinations. On the other hand, the Red Sea crisis also affects India, one of Egypt’s main competitors in the European table grape market.
While Egypt aims to boost its exports, we are encountering unstable logistics routes and increased costs. For instance, at the onset of the table grape campaign, we faced substantial trucking issues to the ports. Egyptian exporters need more logistical options, including faster vessels to ensure timely market access and mitigate the risk of oversupply in Europe—typically, it takes 12-15 days for a container to travel from Egypt to Rotterdam.
