Egypt's Chairman of the Agricultural Export Council Ali Issa, has reported that over the past ten years, agricultural exports have quadrupled to a total $2.1bn compared to $500m in 2005. According to Issa, the agricultural products sector is the most powerful engine for Egypt’s economic development at the moment, and it is among the most stable sectors in the country.
Issa explained that the agricultural sector contributes to Egypt’s GDP by between 12% and 13% annually, despite the challenges faced by the sector recently. These problems most prominently include a 20%-25% increase in production costs over recent years, especially after the state adopted a plan to eliminate subsidies for energy products and several other items.
He said the government’s interest in agriculture has declined significantly, and government investment in the sector represents no more than 2% of total investment despite the fact that the sector is 28% more labour-intensive than others.
The agricultural sector’s share of annual bank loans is no greater than 2%-3%, which he attributed to the fact that investments in the sector tend to be long-term. Investors working in the field renewed their hopes that the sector will grow once again, following the announcement of the state’s large-scale project to reclaim 1.5m acres for agriculture. A total of 10,000 acres were inaugurated in Farafra in the New Valley governorate.
The Egyptian market was ranked first globally for citrus exports in 2015 and exported approximately 1.2m tonnes of citrus fruits, followed by Spain, which exports 1m tonnes annually.
The council is working to expand the base of foreign markets it works with, in particular the Chinese market. However, it will take time for Egypt to establish itself in these markets due to the presence of several strong competitors and new markets that have emerged, such as Mongolia and Morocco.
The Export Council is preparing to participate in the Fruit Logistica exhibition. According to Issa this is the first time Egypt has been named a guest of honour at the exhibition since it began participating 10 years ago. He believes the achievement will draw the attention of many world markets to Egyptian exporters, helping them enter new markets in the future.
The council aims to increase exports of agricultural crops this season by 7%-10% by entering several African and Asian markets, especially China. The Chinese market was opened to citrus fruit exports in 2015 and work is underway to export grapes and sugar beet. Issa noted that procedures for China’s Agricultural Quarantine require less time than other countries.
