Potatoes were introduced to Egypt by British Colonials to feed their troops during the 19th century. Today, Egypt is one of the largest producers and exporters of potatoes in Africa and potatoes are a major vegetable crop in terms of value and tonnage produced. Potatoes were the first exported agricultural product to the EU and last season 235,000 tonnes were sent.
Counsellor Abdel Raouf from the Egyptian embassy in London believes Egyptian potatoes are recognised for their quality but it remains necessary to improve market awareness regarding Egypt’s production and quality abilities. “The UK is seen as an important trading partner,” says Raouf. “But Egyptian exporters have limited UK market penetration because of low level consumer awareness. Egypt’s agricultural sector has radically improved in the last few years, from physical infrastructure to post-harvest handling techniques with the aim of boost the export profile. The cold-storage facility at Cairo International airport has stirred fresh produce exports, reduced losses and is now a benchmark facility in the fresh produce sector.”
However, Egypt must comply with the EU rules and requirements laid out in the EU food safety policy, to grow exports. However, Egyptian potato growers are faced with the threat of brown rot disease. At a recent British Egyptian Business Association event, this topic was discussed by its members. The EU is supporting the Egyptian government in controlling the disease, but exported potatoes need to come from pest-free areas. Exporters are allowed only five food safety interceptions, but monitoring systems in place are not properly working - last season, 14 interceptions occurred in the EU. One member, Ali Eissa suggested a safety net be introduced in Egypt but, in reality, are in the entry points in the EU.
It was also noted that the agricultural sector would be facing problems in the very near future as certificates of origin will soon be enforced but the majority of Egyptian exporters are not yet prepared. One member suggested the possibility of receiving technical aid from the UK, such as training to help exporters adopt the origination certificates.
Egyptian Producers Consortium Limited has traded with the UK for more than 20 years, exporting potatoes grown in two main areas - the reclaimed desert-land in the Somalia area and Noubaria on the Cairo/Alexandria road. In addition, as a major potato grower/exporter to the UK, the company has already experienced the benefits of certification, gaining UK market share without boosting production.
Chairman Dr Ihab Tadros explains: “In the last few years, our facilities have been upgraded substantially to satisfy the retail market and meet EurepGAP standards. We now provide retailers with pre-harvest pesticide lists of what we propose to give the seedlings as well as post-harvest lists with what actually was applied. We realise that product traceablity and testing are important to customers.”
Last season, 20,000t of EPC potatoes arrived in the UK. “It was a good quality season, because there has been a major push to meet EU requirements. Market prices for potatoes however, did not meet expectations. A supply shortage was anticipated though was never realised, and price levels were comparable to the previous season,” says Tadros.
He adds that the Egyptian fresh produce export sector has been warned by the EU about the importance of meeting quality standards and the impact it will have on export opportunities, so the push to become complaint continues in the fields and packhouses. EPC sends three main varieties to the UK, with the majority being Nicola, (90 percent) and 10 per cent of production made up of trial varieties. The grower/exporter has trialed Maris Peer this year that has grown well - 200t were sent to the UK. “The UK market wanted a change in supply and the Maris Peer was well received,” says Tadros. “It will not take away from Nicola’s market share but will accumulate its own portion of the market, increasing our overall potato share. Our supply is distributed to the multiples (70 per cent) and wholesalers (30 per cent).”
A recent change for Egyptian potato exporters was the export quotas imposed by the EU and enforced by UK customs. From March this year until 2005, 190,000t of potatoes can be sent to the UK without duty. Between January 1 and March 31, no duty needs to be paid up until the cap, but once this level is reached, a nine per cent tax must be paid on the invoice value of the potatoes exported. However, the Egyptian government has applied for this amount to be increased to 250,000t from 2005.
Tadros says he manages his situations by receiving daily quota figures. “We are always trying to get a larger share with the multiples but the competition barriers are difficult to break through. Furthermore, the multiples may view Egyptian potato supply as uncertain because the EU suddenly disallow imports because of historic threats of brown rot - this makes it more difficult for certified producers to gain market share. Despite this threat, EPC will always fulfil its supply agreement, even if it means sourcing potatoes form other producing nations such as Spain or Israel, if the Egyptian supply is stopped. This may be costly but to date it hasn’t been necessary. Hopefully the situation will improve as more and more producers complying with EurepGAP disease control programmes.”
Egypt’s total potato production averages 2mt, and exports are in excess of 300,000t a year, 15 per cent of total production. Raouf can see the opportunities available to Egyptian growers: “According to the latest statistics, the volume of Egyptian potatoes exported to the UK from January to March 2004 was only 15,000t, less than the target. Additionally, UK production has weakened to 5.9mt and in order to cover a UK consumption gap, a further 1.7mt needs to be imported. This is why Egyptian exporters have a major opportunity to expand their export volumes and meet local demand.”
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