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Al-Ahram Weekly 4 -10 February 1999 Issue No. 415 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 4 -10 February 1999 Issue No. 415
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Book Fair Economy Opinion Culture Features Living Travel Sports People Time Out Chronicles Cartoons Letters Food exports slide
THE FOOD Industries Chamber is seeking to encourage food exportsThe Food Industries Chamber of the Federation of Egyptian Industries is taking measures to narrow the growing gap between food imports and exports.
The aim of the plan, to be carried out in collaboration with an American company, is to help Egyptian producers increase their exports to Europe through better marketing.
According to Mustafa Said, head of the International Trading Point, exports of food products to Europe have decreased dramatically over the last few years. They fell from LE236.8m in 1994 to LE232 in 1996 and dropped to LE119 last year. "Serious steps should be taken to prevent any further fall in exports in this sector," says Said.
Egypt's food imports last year totalled LE1.5 billion, the most important being those of meat, tobacco, fish, dairy products and infant formulas. "It is obvious that the gap [between imports and exports] is huge and that the situation should not continue as such," says Said.
Food products make up a large proportion of Egypt's exports to Europe and the United States, the main ones being sugar cane, beet, molasses, canned vegetables, fruit and fish in addition to fruit juice and edible oils.
According to Ismail Sabri, head of the Food Industries Chamber, an important way of improving export performance is to ascertain demand in different markets. "A continuous study of markets and the application of better marketing tools will eventually increase our ability to sell more and at better prices," he argues.
According to Said, any improvement requires a solution to the food industry's long-standing problems. "Production processes, packaging, and the final shape of the product are not as they should be. As a result, Egyptian goods can't withstand foreign competition," says Said, adding that even if an Egyptian product is of good quality it will inevitably suffer from poor market image.
Furthermore, industry costs are raised by high energy prices and outmoded and wasteful methods of production. "The price of the final product can hardly compete with products from other countries," says Said who also argues that high interest rates on loans, hefty shipment fees and costly taxation excessively burden food exporters.
The Food Industries Chamber is encouraging some 100 Egyptian companies to participate in the International Fair for Food Industries, one of the international industry's largest trade fairs soon to be held in Germany.
