Sadat Agricultural Development and Export is considering merging with one of the agricultural entities under a new name, taking into consideration the requirements and standards necessary for export.
Haitham El Saadany, the chairperson of the company, said that the company’s current production is an equivalent of 1,000 tonnes citrus containers. It is currently relying on other farms to meet the needs of foreign markets.
He pointed out that large export demand is the reason why the company is considering merging with another agricultural entity and expanding the activity to provide products that take into account international standards.
He explained that the company is planning to open several offices in the target markets, as next year an office will be opened in Russia, then China and South Africa.
He revealed that there is a 20% growth in exports this year even though the company suffered this year from some difficulties, including analysis and agricultural quarantine, as well as coding farms and the lack of commitment by some foreign clients.
Saadany estimated the company’s exports to be 12,000 tonnes of citrus, in addition to 7,000 tonnes of onions and tomatoes. Products will be exported to the market of Russia, Ukraine, India, Malaysia, Hong Kong, and China.
He explained that the company exported 150 tonnes to the Russian market last year compared to 200 tonnes this year. Additionally, exporting is done not only to Moscow, but also other Russian ports.
Moreover, he revealed that the company is currently seeking to complete the procedures to establish a station with investments worth $2m self-funding and provide about 200 jobs amd that his company is suffering from the elongated period of shipping goods, especially to the markets of East Asia, such as China, India and Bangladesh, demanding shipping lines to solutions for direct shipping to these countries.
He also noted that his company is seeking to increase the products it exports, such as vegetables, due to the great demand on them in international markets, however, the high percentage of pesticides in these vegetables is one of the reasons behind the low level of exports.
Meanwhile, the high cost of local production of fuel, electricity, water, and transport has led to an increase in the final product, hence, a decline in its export ability and competitiveness in international markets, he stressed.
He stressed that the trade war between US the China is for the best of Egyptian products, and next year may see more demand on Egyptian oranges by China.
Furthermore, the importance of giving special attention to the Russian market and intensifying the work in it because it is one of the largest markets that can accommodate large amounts, especially, that Egyptian products have a good reputation in Moscow and it is the second largest importer of Egyptian citrus, he also stressed.
One of the major challenges companies face in the Russian market is the late transfer of funds and refusing to receive the products and pay its value when it arrives later than the date agreed upon, he elaborated.
He also demanded equality in exporting to Russia and other countries like India and Bangladesh. A condition to put the papers of the deal in a bank and prevent the other party from receiving them before paying their value is necessary.
He stressed that this system cannot be applied on the Russian market by only one exporter, but all exporters must agree on it because the Russian market is also suffering from complicated bank procedures.