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Al-Ahram Weekly 27 July - 2 August 2000 Issue No. 492 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 27 July - 2 August 2000 Issue No. 492
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Features Travel Living Sports Profile People Time Out Chronicles Cartoons Letters Squeezing more from the citrus crop
By Eman YoussefIn spite of a significant increase in citrus products in Egypt during the last two decades exports have remained consistently sluggish and are now in decline, with last year witnessing a 4.6 per cent drop in export figures over the previous year.
Egyptian citrus production increased from an average of 920,000 tons annually in the 1980s to an average of 1.6 million tons in the 1990s, according to the Agricultural Research Centre. Currently citrus products represent a mere 1.6 per cent of total Egyptian agricultural exports, a figure that Essam Ali, an agricultural engineer at the Ministry of Agriculture's Research Institute, suggests is disproportionate with the quantity and quality of the crop.
While the former Soviet Union used to be the main foreign market for Egyptian citrus products, these days Saudi Arabia, Hong Kong and the UK are the main markets for these products. A major focus for Egypt, however, is gaining access to the markets of the European Union. It is vying for these markets along with a host of other citrus producing countries. "Most exporters feel pessimistic because there is severe competition from countries like Morocco, Israel and Jordan," according to Mahmoud Hammad, marketing manager for Nimos, a company specialised in agricultural exports. Concurring with this assessment, Essam Ali explained, "Egyptian citrus exports are facing great competition, especially from Israel."
Nonetheless, Abu Bakr El-Basel, the head of the Agricultural Committee of the People's Assembly said the "EU has agreed to levy the same customs fees on citrus products it imports from Egypt, Israel and Morocco," a move that should help to level the competition to an extent.
The Egyptian product, though, needs some adaptation before it is welcomed by European consumers. "Some Egyptian farmers still use chemical fertilisers that are not accepted in European markets," explained Essam Ali. Added to this, Egyptian oranges are smaller than those generally preferred by the European market.
Producers cited high transport costs as a factor affecting the competitiveness of their citrus fruit in EU markets. They pay LE3.25 per kilogramme of fruit by airplane and 80 piastres a kilogramme by boat.
Within the context of these challenges, the government is advocating the development of specialised marketing boards to assist exporters in making deals. A senior official at the Ministry of Agriculture characterised such marketing organisations as "essential" in helping exporters deal with their clients in a professional manner. However, businessmen have indicated their preference for direct contact and communication with their clients.
Nevertheless, the recent moves by the government to simplify the export process should help producers economise on the time spent on bureaucratic procedures. For some producers, however, these measures do not go far enough. Mahmoud Hammad cited a lengthy list of procedures which he described as "contrary to policies followed in other countries." He also advocates that the government take a more pro-active stance: "The government must motivate and encourage exporters more by reducing their tax burdens and restrictions impeding them."
Making a similar case, but more strongly, Ahmed Mansour, also a citrus producer said: "The fundamental solution to improving the country's growing trade deficit is total exemption from taxation on export operations."
It was also suggested that small farmers need government assistance to increase exports. One way of supporting producers would be for the government to facilitate visits by foreign customers to meet with small farmers who might not be able to bear the expenses of travelling and contracting deals. Small producers would also be helped by information about the quantities and types of fruit in demand by foreign markets.
According to statistics issued by the Agricultural Research Centre agricultural exports represent 17 per cent of all Egyptian exports, earning an estimated $4.4 billion for 1999/2000, a nine per cent drop compared to 1998/1999.
