According to EastFruit analysts, the exports of fruits and vegetables from Egypt may increase significantly in 2023 due to a change in the government’s approach to managing the national currency.
The US dollar doubled against the Egyptian pound over the year. Now, for an exporter to receive the same amount in Egyptian pounds for potatoes or citrus sold to another country, he can reduce the price in dollars by half compared to the same date in 2022. Undoubtedly, this gives a solid incentive to focus on exports instead of the domestic market.
The higher competitiveness of Egyptian goods in foreign markets is also a good motivation to expand production volumes. Given a rather unfavorable situation in the international fruit and vegetable markets when the demand for vegetables and fruits has decreased due to economic problems in different countries, caused by Russian military aggression against Ukraine, this advantage is a huge one.
Egypt is one of the 25 largest exporters of fruits and vegetables, and these exports allow it to receive earnings in foreign currency necessary to ensure the import of food grains and feed. The devaluation of the local currency will undoubtedly help to maintain or even increase the exports of vegetables and fruits but will lead to an increase in the cost of imported feed, wheat, and other food grains, which may affect the cost of basic food products such as bread.
Egypt receives about a third of all fruit and vegetable export earnings from the export of citrus fruits – mainly oranges. This segment brought more than $700 million in export revenue for Egypt in 2021. About $200 million is provided by the segments of fresh grapes, frozen strawberries, and fresh marketable potatoes. Egypt will also receive significant export earnings from exports of onions, frozen vegetables, fresh strawberries, and mandarins. The range of exports of fruits and vegetables from Egypt is constantly growing, and the country has a diversified portfolio of clients in most positions.
The largest importers of fruits and vegetables from Egypt are the EU countries, Saudi Arabia, Russia, and the United Arab Emirates. Exports of fruits and vegetables from Egypt to the United States have been actively growing recently. Accordingly, exports may increase in 2023, primarily in those areas where local currencies have remained stable, as well as to the EU and the US.
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