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Al-Ahram Weekly 21 - 28 January 1999 Issue No. 413 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 21 - 28 January 1999 Issue No. 413
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Focus Economy Opinion Culture Features Living Travel Sports People Time Out Chronicles Cartoons Letters EU curbs Egyptian potatoes
By Sherine Nasr
"The European Union is taking a very radical position Egyptian potatoes exporters," said Khaled Abu Ismail, a member of the Egyptian Federation of the Chambers of Commerce and one of Egypt's biggest potato exporters.
Abu Ismail was referring to a recent decision by the EU to import only Egyptian potatoes grown in five pest-free areas (PFA).
A committee has been formed to survey all of the designated PFAs, and a full break-down of three of them has been sent to the EU for approval.
"We have already finished with Al-Nobariya, Ismailia and Al-Salhiya. Potatoes grown in these areas comprise the bulk Egypt's potato exports," said Ali Se'da, head of the agricultural services sector at the Ministry of Agriculture.
It is hoped that another 14 areas will be approved by the EU by the end of January.
But, for many exporters, the situation is bleak: "I have 1,800 tons of potatoes that have been grown in an area not approved by the EU. Egyptian exporters are in a mess. We don't know whether we will be able to sell our production," said Abu Ismail, who exports 40,000 tons of potatoes to Europe.
In a recent meeting, Egyptian potato exporters criticised the Ministry of Agriculture and the Ministry of Trade and Supply for not passing on enough information about Europe's stance and not devising a strategy for exporters whose potatoes may be rejected by the EU.
The total production of the areas approved by the EU is 60,000 tons, which is less than half the amount Egypt is seeking to export to Europe this year.
"We are hoping to export no less than 150,000 tons of potatoes this year," said Abu Ismail. It is expected that competition among the 45 exporters will become intense.
In the short term, a committee assigned by the Ministry of Trade and Supply to manage the potato crisis has decided that 25,000 tons will be exported by 15 potato growers in January, 100,000 tons will be exported in February and March and the rest of the quota will be exported in April. "This is the best that we can do for the moment" said Abu Ismail.
Potatoes, along with cotton and rice, are among the country's most important agricultural exports. Egyptian companies previously exported 750,000 tons to Europe. "The price of a ton of potatoes fell from LE830 to LE630 over the past few years. This year, the price will not exceed LE400 per ton," Hosam El-Sadani, professor of agronomy at Ain Shams University.
Many exporters believe Egyptian products are not given fair treatment in Europe. "The EU's stance is part of a bigger picture aimed at curbing Egyptian exports in general," said Osama Kheireddin, head of the agriculture committee at the Egyptian Exporters Division.
He cites as an example the 19 per cent tax imposed by the EU on Egyptian dates. "Dates from Tunisia, Morocco and Israel enjoy a 100 per cent tax exemption," he said.
He says it is a similar story with other exports, such as beans and fish. "We still remember the big fuss about European markets being dumped with Egyptian T-shirts, and the accusations turned out to be false," he said.
Kheireddin is a staunch opponent of the GATT: "Europe advocates principles of free trade but when it comes to the reality, each country imposes whatever procedures it believes will serve its own interests," he said.
Nevertheless, it is possible that Egypt may benefit from the adverse weather conditions that recently affected a number of EU countries. A report last November in a specialist Greek magazine called The Potato Market said many of the potato harvests in Europe had been destroyed by bad weather and that prices have jumped four-fold as a result. The report noted that Egypt would this year be able to sell 225,000 tons instead of 150,000 at a higher price.
