International Food and Consumable Goods (IFCG) aims to realise exports worth $15m by the end of the year, up from $10m in 2016—an increase of 50%—by expanding in the East Asian and West African markets.
Export and Logistics supervisor at the company, Hamada Megahed, said the company relies mainly on exports of frozen potatoes, which it exports to more than 20 countries.
The company exports its products to the Netherlands, Belgium, France, Germany, Saudi Arabia, the United Arab of Emirates (UAE), Kuwait, Oman, Qatar, Bahrain, China, Taiwan, Turkey, Pakistan, Jordan, Syria, Iraq, Libya, Tunisia, and Mauritius.
IFCG specialises in the production and manufacturing of potato chips, French fries, and half-fried frozen potatoes, as well as in the sorting and packaging of frozen vegetables and fruits.
Megahed said the company achieved a 25% growth in exports during 2016 to reach $10m, up from $8m in 2015.
He attributed the increase to the flotation, which raised the value of exports.
He said that the company aims to enter new markets in Southeast Asia, in addition to Ghana in West Africa and Cameroon during 2017.
IFCG is currently set to take part in the Gulfood Exhibition in Dubai to meet new clients and strengthen the relationship with existing customers.
Megahed said that in the most recent period the company has moved to new markets, including France, Belgium , Iraq, and Sudan.
He added that the company aims to export 80% of its output during 2017, compared to 60% last year, and nearly 40% in 2015.
IFCG produces some 20,000 tonnes per year, distributed between the local market and exports, selling frozen potatoes abroad at $800-900 per tonne.
Megahed said that flotation had a negative impact on the company’s sales in the domestic market, pushing it to channel more production towards exports.
He explained that production costs almost doubled post flotation, which the company aims to offset by increasing exports.
He stressed that Egypt is capable of boosting the volume of its exports if the state provides further support, especially that production costs have declined in European countries over the last two years.
He noted that European countries are supporting farmers and exporters more than Egypt does. In addition, they offer less expensive electricity, fuel, and logistics, which brings down the final price of their products.
He pointed out that production costs in Egypt, including electricity, water, and storage have all increased by 100-150%, along with similar increases in raw materials and packaging equipment.
He said that boosting Egyptian production competitiveness in foreign markets will encourage local companies to export more.
Arab countries are ranked among the biggest consumer markets for frozen potatoes in the world.
Megahed noted that the company raised its production capacity by 30% recently, increasing to 1.3 tonnes per hour since January.
He added that the company has one production line but aims to buy more new machines to complete the production capacity plan.
He pointed out that, after conducting a feasibility study, the company will buy a plot of land adjacent to its headquarters in 6th of October City, which may be used to establish a new production line with a capacity of 50,000 tonnes per year.
IFCG was established in 2012. The company has over 20,000 feddans dedicated to the cultivation of potatoes and sweet potatoes (producing 16 types); to the production of fried and half-fried frozen potatoes, as well as spiced and unspiced potatoes; and to the packaging of frozen fruits and vegetables.