EGCT for Agricultural Products aims to open a new factory for freezing fruits and vegetables with investments worth EGP 80m in September, aiming to export its products to foreign markets to enter into new investments besides packaging and exporting agricultural products.
Mohamed El Desouky, the chairperson of the company, said that exporting the products of the new factory will begin in September, as well to the German market then to the Russian market by the end of this year.
He added that production capacity of the factory is about 80 tonnes per day to be allocated to exportation in the markets of Russia, South Europe, and Japan. The production will begin with frozen strawberry, peas, and carrots as the company started trial production of the factory this month.
The company exported about 52,000 tonnes of the agricultural products this year for the products of citrus, grapes, and pomegranate, including 90% for citrus products.
He explained that Russia accounts for 40% of the company’s exports, followed by East Asian countries with 35%, with the majority for India as it exported 18,000 tonnes, then China, Malaysia, and Bangladesh then Gulf countries with about 15%, and 10% for the countries of Africa and Europe.
The company recorded the same rates of exports last year and aims to double its exports next year to 100,000 tonnes, noting that the packaging station affiliated to the company is working with half its production capacity this year. The company aims to operate its full energy and increase its exports to the current 30 markets, in addition to entering new markets in South Korea, Thailand, and Vietnam.
Notably, East Asian countries are promising markets, which the company can double its exports to next year, as well as to the African market, noting that the company’s exports to African countries are rather limited and have not exceeded 500 tonnes, as a result of the elongated transport period and the difficulty of the company’s obtainment of its dues, he added.
In terms of the Russian market, Desouky said that exporting companies did not obtain 50% of their dues of this year up until now, which caused major losses for companies because of the payment being delayed to the end of the season. Companies are trying to decrease their exportation to Russia and open new markets in East Asia.
He noted that the company does not target new markets in Europe as a result of the delay of collecting dues and its work will be limited to its current clients in these countries only.
He added that the largest obstacles facing exportation to the markets of East Asia is the lack of order in terms of the work of export offices, demanding more controls. Additionally, fairs are limited to only companies as a result of these offices’ speculative prices for the products in the markets.
He noted that the company exported the same amounts last year, however, the revenue is much less given the speculative prices by smaller exporter and the export offices that double the price of the product with the decline of the rouble against the dollar.
Meanwhile, the large number of exporting companies and Egyptian export offices in the international market has led to reduced prices of Egyptian products, demanding only the presence of a few export companies in the European market to maintain the prices in the market and benefit from its advantages, He noted that 20 companies exported 80% of the agricultural products and 20% only were exported by the rest of the companies and export offices, he said.