The National Cooling & Freezing Company (Cafco Food) aims to export 2,500 tonnes of frozen vegetables and fruits during 2017, up from 1,800 tonnes last year—registering a growth of 40%.
Chairperson of the company, Ahmed Abdel Samad, said the company is working to export its products to eight countries, including five in the Gulf and three in Europe.
He added that the company is targeting to open new markets in Europe after the devaluation of the local currencyas a result ofthe pound’s flotation.
He explained that the company plans to expand in exporting to the Gulf countries through participating in the Gulfood Exhibition in Dubaiand meeting new clients from sister countries.
He stated that the company exports to the Gulf already, with clients in Kuwait, Qatar, Oman, and Saudi Arabia.
Abdel Samad said that the flotation in November 2016 boosted the company’s competitiveness in foreign markets, making their prices more attractive.
He added that,as part of its expansion plan,the company plans to establish a new factory with an investment of EGP 25-30m.
He noted that the company looked for a suitable plot of land in2016; yet, the high prices of industrial lands forced the company to postpone establishment to 2018 in order to unlock financing.
Moreover, he said that the company has a plan to increase production by 10-15% annually in the coming years through purchasing new machineries that raise the productivity of current production lines.
He added that Cafco Food has a plant in Damietta on a land of 10,000sqm, with four production lines.
He pointed out that the company has refrigerators with a total capacity of 3,000 tonnes used for freezing products before shipment to clients across the world.
Abdel Samad said the company is exporting 80% of its production,chanelling the remaining 20%to the domestic market, which has been negatively impacted following the flotation.Thispushed the company to seek further exports in the coming period.
He added that the prices of raw materials have doubled after the flotation.Thiscut offprofit margins of domestic sales, which the company aims to offset through exporting, Abdel Samad said.
Cafco Food relies on exporting frozen strawberries, pomegranates, guavas, mangoes, and apricots, as well as concentrate juices.
It also exports frozen vegetables, including peas, okra, beans, mallow, spinach, taro, and broccoli, as well as potatoes, carrots, onions, eggplant, and pepper.
The company was founded in 1981 and began exporting in 1985.