Required Report - public distribution

**Date:** 10/25/2005

**GAIN Report Number:** EG5024

EG5024

**Egypt**

Citrus

**Annual**

2005

**Approved by:**

![](media/image1.wmf)Asif J. Chaudhry

#### U.S. Embassy

**Prepared by:**

Fred Giles & Sherif Ibrahim

**Report Highlights:**

In MY 2004/2005, Egypt\'s total exports of oranges increased by 43
percent, despite an end to a government subsidy that paid \$50 per
metric ton.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Cairo \[EG1\]

\[EG\]

Table of Contents

[Production 3](#production)

[Consumption 3](#consumption)

[Trade 4](#trade)

[Production 6](#production-1)

[Consumption 6](#consumption-1)

[Trade 6](#trade-1)

[Production 7](#production-2)

###  

+---------------------+-------+-------+-------+-------+-------+-------+
| **Egypt**           |       |       |       |       |       |       |
|                     |       |       |       |       |       |       |
| **Oranges**         |       |       |       |       |       |       |
|                     |       |       |       |       |       |       |
| **(Thousand         |       |       |       |       |       |       |
| Hectare)**          |       |       |       |       |       |       |
+---------------------+-------+-------+-------+-------+-------+-------+
|                     |       | **2   |       | **2   |       | **2   |
|                     |       | 003** |       | 004** |       | 005** |
+---------------------+-------+-------+-------+-------+-------+-------+
|                     | Old   | New   | Old   | New   | Old   | New   |
+---------------------+-------+-------+-------+-------+-------+-------+
| #####               |       | *     |       | *     |       | *     |
| # Market Year Begin |       | *10/2 |       | *10/2 |       | *10/2 |
|                     |       | 003** |       | 004** |       | 005** |
+---------------------+-------+-------+-------+-------+-------+-------+
| Area Planted        | 89    | 89    | 89    | 90    | 0     | 91    |
+---------------------+-------+-------+-------+-------+-------+-------+
| Area Harvested      | 85    | 85    | 86    | 87    | 0     | 88    |
+---------------------+-------+-------+-------+-------+-------+-------+
| Bearing Trees       | 4567  | 4567  | 4570  | 4621  | 0     | 4672  |
+---------------------+-------+-------+-------+-------+-------+-------+
| Non-Bearing Trees   | 3805  | 3805  | 3850  | 3893  | 0     | 3936  |
+---------------------+-------+-------+-------+-------+-------+-------+
| TOTAL No. Of Trees  | 8372  | 8372  | 8420  | 8514  | 0     | 8608  |
+---------------------+-------+-------+-------+-------+-------+-------+
| Production          | 1740  | 1740  | 1750  | 1775  | 0     | 1789  |
+---------------------+-------+-------+-------+-------+-------+-------+
| Imports             | 0     | 0     | 0     | 0     | 0     | 0     |
+---------------------+-------+-------+-------+-------+-------+-------+
| **TOTAL SUPPLY**    | 1740  | **1   | 1750  | **1   | 0     | **1   |
|                     |       | 740** |       | 775** |       | 789** |
+---------------------+-------+-------+-------+-------+-------+-------+
| Exports             | 420   | 420   | 450   | 604   | 0     | 610   |
+---------------------+-------+-------+-------+-------+-------+-------+
| Fresh Dom.          | 1283  | 1283  | 1263  | 1131  | 0     | 1139  |
| Consumption         |       |       |       |       |       |       |
+---------------------+-------+-------+-------+-------+-------+-------+
| Processing          | 37    | 37    | 37    | 40    | 0     | 40    |
+---------------------+-------+-------+-------+-------+-------+-------+
| **TOTAL             | 1740  | **1   | 1750  | **1   | 0     | **1   |
| DISTRIBUTION**      |       | 740** |       | 775** |       | 789** |
+---------------------+-------+-------+-------+-------+-------+-------+

# Production

Oranges are a winter fruit well-suited to the Egyptian climate. Orange
production accounts for half the total fruit production in Egypt.
Cultivation is centered in two large geographic regions: the fertile
Delta area and the newly reclaimed lands. About 80 percent of Egypt's
total orange production is on large farms of 10-100 feddans (one feddan
= .42 hectare); 20 percent of production is on small farms (1-10
feddans). Navel oranges are the predominant variety. Smaller amounts of
local (baladi), sweet, valencia, and other varieties are also produced.
The harvest of navel oranges begins in October and is followed by other
varieties in November and December. Harvest usually lasts from 4 to 5
months.

In 2004, total planted orange area was estimated at 90,000 hectares,
1,000 hectares over the 2003 level. Total orange production in 2004 also
increased slightly over the 2003 level. The increase in total orange
production was mainly due to the increase in average yield, 20.5
MT/hectare in 2003/2004 compared to 20.4 MT/ hectare in 2002/2003. The
increase in yield was due to the absence of strong winds which usually
cause damage to fruit sets. For the 2005/2006 season, both orange area
and production are expected to increase slightly. This expected increase
in production is due to the increased number of bearing trees and the
continued absence of strong winds.

## Consumption

## 

Oranges are the main fruit available in Egypt during the winter. Due to
the fact that oranges are relatively inexpensive, Egyptians consume
large amounts of oranges, both fresh and as juice. Per capita
consumption of oranges is estimated at about 17 kg per year. The orange
processing industry is expanding due to the increased number of
companies producing orange juice. Currently, there are six major orange
juice processors in Egypt. Most companies depend on the baladi and
summer varieties for processing.

Domestic production is primarily destined for fresh consumption.
Imported orange juice is also available in the market. Egyptian citrus
grown in arid areas (reclaimed desert land) is characterized by low
juice content, while fruit produced in the more humid regions, mainly
along the Red Sea and Mediterranean coast, has much higher juice
content.

# Trade

The Egyptian orange export season is relatively long, extending from
December to April. This is quite favorable for the export of navel
oranges. Although Egypt has excellent opportunities for expanding its
orange exports due to its favorable climate and strategic geographic
location, exports to the European market continue to be limited by the
uneven quality of Egyptian oranges, as well as by competition from other
suppliers such as Spain, Israel, and Morocco. However, in 2004 Egypt's
total orange exports increased by 43 percent. Orange exports to Saudi
Arabia and other Arab countries are the primary reason for the increase.
Saudi Arabia is currently the largest market for Egyptian table oranges.

Exports for 2005/2006 are expected to increase slightly. In 2004/2005,
the government canceled the export subsidy of \$50 per MT paid to orange
exporters. This program was designed to increase the competitiveness of
Egyptian oranges in the export market. Currently, orange exporters
receive LE 56 per MT as a support for export expenses. The current
average C&F export price for fresh oranges to Russia is \$410 per/MT.

The EU-Egyptian Partnership Agreement offers several tariff concessions
for Egyptian orange exporters. European countries import baladi and
summer varieties, mainly for juicing. Egypt receives a duty-free TRQ of
50,000 MT for fresh or dried oranges (080510). The TRQ will increase by
ten percent of the new base (50,000 MT) over three years with a cap at
60,000 MT in the final year and beyond. The current TRQ for oranges is
8,000 MT at zero duty from December through May, provided that the entry
price is at least EUR 266/MT.

Egypt's orange TRQ consists of fresh sweet oranges which fall in H S
headings 08051010, 08051030 and 08051050, can only be imported into the
EU from December 1 to May 31 with a limit of no more than 34,000 MT at
an agreed entry price of EUR 264/MT. If the price for a consignment is
lower than 92 percent of the agreed entry price, the specific duty bound
within the WTO will apply. Export quantities above the TRQ amount will
be assessed at 60 percent of the EU's MFN tariff.

Egyptian exporters prefer to sell their production for cash on an FOB
basis in order to avoid the risk of being rejected due to sanitary-
phytosanitary (SPS) reasons or being in a position to face adjusted
prices due to quality factors. At the present time, there are about 20
private sector, small to medium size exporters and four large orange
exporters in Egypt. According to industry experts, three major companies
control about 80 percent of the export market. One public sector company
still active in the orange sector controls about 20 percent of the
export market.

## 

+--------------------+-------------+--------------------+-------------+
| ######## Egypt     |             |                    |             |
|                    |             |                    |             |
| ####### Oranges    |             |                    |             |
|                    |             |                    |             |
| **MT**             |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Exports to**     | **2003**    | ###### Exports to  | **2004**    |
+--------------------+-------------+--------------------+-------------+
| U.S.               |             | U.S.               |             |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| Saudi Arabia       | 130,978     | Saudi Arabia       | 210,751     |
+--------------------+-------------+--------------------+-------------+
| Other Arab         | 65,763      | Other Arab         | 99,420      |
| Countries          |             | Countries          |             |
+--------------------+-------------+--------------------+-------------+
| Russia             | 97,666      | Russia             | 94,549      |
+--------------------+-------------+--------------------+-------------+
| Ukraine            | 44,179      | Ukraine            | 46,684      |
+--------------------+-------------+--------------------+-------------+
| England            | 24,183      | England            | 44,039      |
+--------------------+-------------+--------------------+-------------+
| EU                 | 35,122      | Holland            | 42,115      |
+--------------------+-------------+--------------------+-------------+
| Malaysia           | 6,383       | Spain              | 17,257      |
+--------------------+-------------+--------------------+-------------+
| Lithuania          | 5,689       | Italy              | 6,523       |
+--------------------+-------------+--------------------+-------------+
| Italy              | 4,405       | Slovenia           | 4,995       |
+--------------------+-------------+--------------------+-------------+
| Indonesia          | 3,707       | Belarus            | 4,089       |
+--------------------+-------------+--------------------+-------------+
| **Total for        | 418075      |                    | 570422      |
| Others**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Others not       | 1,925       |                    | 34,319      |
| listed**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Grand Total**    | 420,000     |                    | 604,741     |
+--------------------+-------------+--------------------+-------------+

## 

# 

+----------------+---------+--------+-------+-------+------+---------+
| #              |         |        |       |       |      |         |
| ######## Egypt |         |        |       |       |      |         |
|                |         |        |       |       |      |         |
| ######## Fr    |         |        |       |       |      |         |
| esh Tangerines |         |        |       |       |      |         |
|                |         |        |       |       |      |         |
| (Thousand MT)  |         |        |       |       |      |         |
+----------------+---------+--------+-------+-------+------+---------+
|                |         | **     |       | **2   |      | *       |
|                |         | 2003** |       | 004** |      | *2005** |
+----------------+---------+--------+-------+-------+------+---------+
|                | Old     | New    | Old   | New   | Old  | New     |
+----------------+---------+--------+-------+-------+------+---------+
| ###### Mar     |         | **10/  |       | *     |      | **10    |
| ket Year Begin |         | 2003** |       | *10/2 |      | /2005** |
|                |         |        |       | 004** |      |         |
+----------------+---------+--------+-------+-------+------+---------+
| Area Planted   | 40      | 38     | 40    | 39    | 0    | 39      |
+----------------+---------+--------+-------+-------+------+---------+
| Area Harvested | 36      | 34     | 36    | 35    | 0    | 35      |
+----------------+---------+--------+-------+-------+------+---------+
| Bearing Trees  | 2,252   | 2,080  | 2,253 | 2,135 | 0    | 2,140   |
+----------------+---------+--------+-------+-------+------+---------+
| Non-Bearing    | 1013    | 1022   | 1012  | 1052  | 0    | 1047    |
| Trees          |         |        |       |       |      |         |
+----------------+---------+--------+-------+-------+------+---------+
| TOTAL No. Of   | 3,265   | 3,102  | 3,265 | 3,187 | 0    | 3,187   |
| Trees          |         |        |       |       |      |         |
+----------------+---------+--------+-------+-------+------+---------+
| Production     | 506     | 478    | 506   | 481   | 0    | 483     |
+----------------+---------+--------+-------+-------+------+---------+
| Imports        | 0       | 0      | 0     | 0     | 0    | 0       |
+----------------+---------+--------+-------+-------+------+---------+
| **TOTAL        | 506     | *      | 506   | **    | 0    | **483** |
| SUPPLY**       |         | *478** |       | 481** |      |         |
+----------------+---------+--------+-------+-------+------+---------+
| Exports        | 3       | 10     | 2     | 8     | 0    | 10      |
+----------------+---------+--------+-------+-------+------+---------+
| Fresh Dom.     | 498     | 463    | 498   | 471   | 0    | 473     |
| Consumption    |         |        |       |       |      |         |
+----------------+---------+--------+-------+-------+------+---------+
| Processing     | 5       | 5      | 6     | 2     | 0    | 0       |
+----------------+---------+--------+-------+-------+------+---------+
| **TOTAL        | 506     | *      | 506   | **    | 0    | **483** |
| DISTRIBUTION** |         | *478** |       | 481** |      |         |
+----------------+---------+--------+-------+-------+------+---------+

## Production

The major variety of tangerines grown in Egypt is the mandarin, a local
"baladi" variety which is not a hybrid. Mandarins are mainly produced
for the local market with limited quantities for export. In 2004/05,
total tangerine production increased slightly to 481,000 MT, as compared
to 478,000 MT in 2003/2004. This increase is attributed mainly to the
increase in the number of bearing trees in addition to the absence of
strong winds. The mandarin production season is shorter than the orange
season. The marketing season begins in November/December but ends in
February/March, about two months earlier than the orange season.

# Consumption

Despite the predominance of orange production, many Egyptian consumers
prefer mandarins to oranges because they are easier to eat. During the
2004/05 marketing season (November-October), wholesale prices averaged
LE 1 per kg, and retail prices were around LE 1.40 per kg. In 2004/2005,
total mandarin consumption increased to 473,000 MT compared to 468,000
MT in 2003/2004.

## Trade

All mandarin exports are handled by the private sector. Mandarins do not
require a special cleaning or waxing process. The major export market
for Egyptian mandarins is the Gulf countries. In the 2004/2005 season,
total Egyptian mandarin exports are estimated at approximately 3,000 MT,
the same as in 2003/2004. The average export price for mandarins in the
2004/2005 season was approximately \$350 per MT as compared to \$257 per
MT in the 2003/04 season during the same period of time.

# 

+------------------+--------+-------+------+------+-------+---------+
| **Egypt**        |        |       |      |      |       |         |
|                  |        |       |      |      |       |         |
| **Fresh Citrus,  |        |       |      |      |       |         |
| Other**          |        |       |      |      |       |         |
|                  |        |       |      |      |       |         |
| **(Thousand      |        |       |      |      |       |         |
| MT)**            |        |       |      |      |       |         |
+------------------+--------+-------+------+------+-------+---------+
|                  |        | **2   |      | **20 |       | *       |
|                  |        | 003** |      | 04** |       | *2005** |
+------------------+--------+-------+------+------+-------+---------+
|                  | Old    | New   | Old  | New  | Old   | New     |
+------------------+--------+-------+------+------+-------+---------+
| ###### M         |        | *     |      | **1  |       | **10    |
| arket Year Begin |        | *10/2 |      | 0/20 |       | /2005** |
|                  |        | 003** |      | 04** |       |         |
+------------------+--------+-------+------+------+-------+---------+
| Area Planted     | 19     | 18    | 19   | 17   | 0     | 19      |
+------------------+--------+-------+------+------+-------+---------+
| Area Harvested   | 17     | 16    | 17   | 16   | 0     | 17      |
+------------------+--------+-------+------+------+-------+---------+
| Bearing Trees    | 812    | 770   | 800  | 765  | 0     | 855     |
+------------------+--------+-------+------+------+-------+---------+
| Non-Bearing      | 590    | 660   | 700  | 630  | 0     | 704     |
| Trees            |        |       |      |      |       |         |
+------------------+--------+-------+------+------+-------+---------+
| TOTAL No. Of     | 1402   | 1430  | 1500 | 1395 | 0     | 1559    |
| Trees            |        |       |      |      |       |         |
+------------------+--------+-------+------+------+-------+---------+
| Production       | 372    | 355   | 370  | 370  | 0     | 413     |
+------------------+--------+-------+------+------+-------+---------+
| Imports          | 0      | 0     | 0    | 0    | 0     | 0       |
+------------------+--------+-------+------+------+-------+---------+
| **TOTAL SUPPLY** | 372    | **    | 370  | **3  | 0     | **413** |
|                  |        | 355** |      | 70** |       |         |
+------------------+--------+-------+------+------+-------+---------+
| Exports          | 21     | 17    | 18   | 18   | 0     | 20      |
+------------------+--------+-------+------+------+-------+---------+
| Fresh Dom.       | 331    | 325   | 337  | 337  | 0     | 376     |
| Consumption      |        |       |      |      |       |         |
+------------------+--------+-------+------+------+-------+---------+
| Processing       | 20     | 13    | 15   | 15   | 0     | 17      |
+------------------+--------+-------+------+------+-------+---------+
| **TOTAL          | 372    | **    | 370  | **3  | 0     | **413** |
| DISTRIBUTION**   |        | 355** |      | 70** |       |         |
+------------------+--------+-------+------+------+-------+---------+

## Production

Sweet and sour limes and bitter oranges are the major types of other
citrus produced in Egypt. Limes, known as "lamuun" in Arabic, account
for most of this category. Lime trees produce throughout the year, with
the greatest output occurring in the late summer months of September and
October. Egyptian consumers have a strong preference for limes. Fresh
sliced limes often are served with meals. A heavily sweetened, fresh
lime juice is also very popular, as are pickled limes which accompany
many dishes.

Most of the production of bitter orange is processed into jelly and
marmalade. Reliable statistical data on the production and marketing of
bitter oranges is not available.

Grapefruit is another citrus fruit that is not very popular in Egypt.
Most of the grapefruit grown are seedless varieties. The area currently
under cultivation is estimated at approximately 220 hectares mainly
grown to service hotels, restaurants and other facilities that cater to
the tourist industry. Unless export demand increases, grapefruits are
not expected to become a significant citrus crop.