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Egypt fresh orange may have a larger living space in the Chinese market

Release Date:2022-11-30Views:34

Egypt is the sixth largest orange producing area in the world, and its output in 2017/18 is only second to Brazil, China, the United States, the European Union (except Spain) and Mexico. In the last ten years, the output of orange in the country has grown rapidly: the output in 2006/07 was 1.83 million tons, but the number rose to 3.18 million tons in 2017/18.

According to the prediction of USDA Foreign Agricultural Service Cairo, thanks to the reasonable planning of planting and harvesting periods and the production of new fruit trees, the output of fresh oranges in Egypt in 2018/19 (2018/10~2019/09) will reach 3.42 million tons, up 9.6% year on year. The planting area will reach 2.43 million mu, with a year-on-year increase of 5.1%.

The fertile soil in the Nile Valley and sufficient sunlight throughout the year ensure the high quality and high yield of Egypt's fresh oranges. The low labor cost and adjacent major export markets have given Egypt Orange a good cost performance ratio. The market demand has been rising in the past decade.

The fresh oranges in Egypt are mainly planted with navel oranges, Valencia oranges, Baladi * and Sukkari *. The first two are mainly used for export, while the latter two are mainly supplied to the local market. Most exporters of fresh oranges are also growers, they have packaging equipment and obtain official export qualification. The export season generally starts in the middle of November every year, and the application of refrigeration facilities can extend the supply period to the late August of the next year.

In 2017/18, Russia, Saudi Arabia, the Netherlands, China, the United Arab Emirates, India, the United Kingdom, Bangladesh, Ukraine, Jordan and Malaysia were the top ten overseas markets for fresh oranges in Egypt. Among them, exports to Russia and Saudi Arabia account for nearly one third of the total. Exports to India, Vietnam and Canada grew significantly, with year-on-year growth rates of 132%, 657% and 126% respectively.

Compared with Spain, Morocco and other supplier countries, the weakness of Egypt's official currency makes Egypt orange have strong price competitiveness in the international market. It is predicted that the export volume in 2018/19 will continue to increase steadily, and is expected to reach 1.65 million tons, up 7% year on year.

South Africa, the United States and Australia are the main competitors of Egypt Orange in the Chinese market. The export volume of the four countries to China in 2017/18 was 120200 tons (South Africa), 101900 tons (Egypt), 67900 tons (the United States) and 51100 tons (Australia) respectively. With the trade friction between China and the United States, some shares of American orange in the Chinese market may be replaced by other suppliers.

The supply season of Egyptian oranges is basically the same as that of Chinese oranges. In recent years, the production of fresh oranges in China has been affected by Huanglong disease, and Egyptian oranges also have a greater living space. It is reported that in the international fresh orange market, the bid of Chinese buyers is often the most competitive.

In Egypt, the wholesale price of oranges is more user-friendly than other fruits, so the popularity has been high. According to the analysis, in view of the rapid growth of Egypt's population and the continuous expansion of international market demand, the supply of Egyptian oranges may fall short of demand in the next few years.

*Baladi orange: very similar to Valencia orange, with small fruit shape, seed, thin and smooth skin, bright color and sufficient water content, mainly used for juice extraction.

*Sukkari orange, also known as Sweet Orange, is characterized by high sugar content and low acidity

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