In response to logistical and cost pressures from the war in the Middle East, Egyptian authorities and citrus exporters are implementing strategic measures to maintain trade
Despite Egypt maintaining its status as the world’s largest orange exporter, the ongoing conflict in the Middle East has compounded challenges during this critical export season.
The disruption of shipping routes, particularly through the Strait of Hormuz and Bab el-Mandeb, has forced many shipping lines to cease transiting the Red Sea.
Consequently, vessels are now required to navigate around the Cape of Good Hope, which adds significant travel time of 10-20 days to reach Asian markets. This has not only increased shipping costs but has also driven up insurance premiums, with an estimated additional cost of US$4,000 per container.
Moreover, the redirection of shipments to Europe, due to difficulties in reaching Asian and Gulf markets, poses a risk of market saturation, which could lead to price-cutting pressures from European buyers.
High production costs, impacted by rising global energy prices and fertiliser supply disruptions, particularly from Iran, further challenge our farmers.
Moreover, the rising global energy prices and disruptions in fertiliser supplies, notably urea, have strained local agricultural inputs, increasing production costs for farmers.
To overcome these hurdles, Egyptian exporters and authorities are implementing several strategic measures:
1. Reliance on highly resilient varieties: Valencia oranges have shown great resilience to prolonged shipping times, making them a preferred choice.
2. Improved sorting and packing processes: exporters are adopting strict sorting standards, both manual and automated, to ensure quality and freshness.
3. Use of advanced refrigerated containers: expanding the use of refrigerated containers helps maintain optimal conditions during transit.
4. Expanding food processing: with the surplus of fresh fruit, Egypt plans to increase its orange processing capabilities, including opening six new factories in 2026.
5. Government logistical facilitation: the government is granting temporary exemptions for certain shipments through Egyptian ports to expedite the export process and alleviate administrative burdens.
