Required Report - public distribution

**Date:** 10/23/2006

**GAIN Report Number:** EG6029

EG6029

**Egypt**

Citrus

**Annual**

2006

**Approved by:**

![](media/image1.wmf)Peter Kurz

#### U.S. Embassy

**Prepared by:**

Chris Rittgers & Sherif Ibrahim

**Report Highlights:**

There are few distinctive trends in Egypt's citrus sector, with area,
production, trade, and consumption relatively unchanged. Nonetheless,
due to improved growing conditions, orange production and exports are
forecast to increase slightly in 2006/07.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Cairo \[EG1\]

\[EG\]

Table of Contents

[PSD Oranges 3](#psd-oranges)

[Production 3](#production)

[Consumption 3](#consumption)

[Trade 4](#trade)

[Export Trade Matrix 5](#export-trade-matrix)

[PSD Tangerines 6](#psd-tangerines)

[Production 6](#production-1)

[Consumption 6](#consumption-1)

[Trade 6](#trade-1)

[PSD Citrus, Other 7](#psd-citrus-other)

[Production 7](#production-2)

# PSD Oranges

+---------------------+-------+-------+-------+-------+-------+-------+
| **Egypt**           |       |       |       |       |       |       |
|                     |       |       |       |       |       |       |
| **Oranges**         |       |       |       |       |       |       |
|                     |       |       |       |       |       |       |
| **(Thousand         |       |       |       |       |       |       |
| Hectare)**          |       |       |       |       |       |       |
+---------------------+-------+-------+-------+-------+-------+-------+
|                     |       | **2   |       | **2   |       | **2   |
|                     |       | 005** |       | 006** |       | 007** |
+---------------------+-------+-------+-------+-------+-------+-------+
|                     | Old   | New   | Old   | New   | Old   | New   |
+---------------------+-------+-------+-------+-------+-------+-------+
| #####               |       | *     |       | *     |       | *     |
| # Market Year Begin |       | *10/2 |       | *10/2 |       | *10/2 |
|                     |       | 005** |       | 006** |       | 007** |
+---------------------+-------+-------+-------+-------+-------+-------+
| Area Planted        | 91    | 92    | 90    | 92    | 0     | 93    |
+---------------------+-------+-------+-------+-------+-------+-------+
| Area Harvested      | 88    | 89    | 87    | 90    | 0     | 91    |
+---------------------+-------+-------+-------+-------+-------+-------+
| Bearing Trees       | 4672  | 4723  | 4621  | 4800  | 0     | 4830  |
+---------------------+-------+-------+-------+-------+-------+-------+
| Non-Bearing Trees   | 3936  | 3979  | 3893  | 3980  | 0     | 3955  |
+---------------------+-------+-------+-------+-------+-------+-------+
| TOTAL No. Of Trees  | 8608  | 8702  | 8514  | 8780  | 0     | 8785  |
+---------------------+-------+-------+-------+-------+-------+-------+
| Production          | 1789  | 1800  | 1775  | 1830  | 0     | 1840  |
+---------------------+-------+-------+-------+-------+-------+-------+
| Imports             | 0     | 0     | 0     | 0     | 0     | 0     |
+---------------------+-------+-------+-------+-------+-------+-------+
| **TOTAL SUPPLY**    | 1789  | **1   | 1775  | **1   | 0     | **1   |
|                     |       | 800** |       | 830** |       | 840** |
+---------------------+-------+-------+-------+-------+-------+-------+
| Exports             | 610   | 589   | 604   | 600   | 0     | 620   |
+---------------------+-------+-------+-------+-------+-------+-------+
| Fresh Dom.          | 1139  | 1171  | 1131  | 1189  | 0     | 1178  |
| Consumption         |       |       |       |       |       |       |
+---------------------+-------+-------+-------+-------+-------+-------+
| Processing          | 40    | 40    | 40    | 41    | 0     | 42    |
+---------------------+-------+-------+-------+-------+-------+-------+
| **TOTAL             | 1789  | **1   | 1775  | **1   | 0     | **1   |
| DISTRIBUTION**      |       | 800** |       | 830** |       | 840** |
+---------------------+-------+-------+-------+-------+-------+-------+

## Production

For the 2006/2007 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. Strong winds can be a large determining factor for overall yield
and production as they usually cause damage to fruit sets. In 2005,
total planted orange area was estimated at 92,000 hectares, 1,000
hectares over the 2004 level. Production in 2005 also increased slightly
over the 2004 level. The increase in total orange production was mainly
due to the increase in average yield, 20.6 MT/hectare in 2004/2005
compared to 20.5 MT/ hectare in 2003/2004. The increase in yields in
2005 can be explained by the absence of strong winds which usually cause
damage to fruit sets.

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
= 0.42 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.

## 

# Consumption

The level of use for direct consumption and for the processing industry
is not changing significantly. 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

With expectations for increased domestic availability, orange exports
are forecast to grow moderately in 2006/07. 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. The Egyptian orange export season is relatively long,
extending from October to April, which is quite favorable for the export
of navel oranges. However, in 2005/06 Egypt's total orange exports
increased to non- tradition markets such as Croatia, Russia and Norway.
Orange exports to Saudi Arabia and other Arab countries decreased in MY
2005/06.

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, and 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. Reportedly, three major companies control about 80
percent of the export market, while one public sector company sector
controls about 20 percent of the export market.

## 

# Export Trade Matrix

+--------------------+-------------+--------------------+-------------+
| ######## Egypt     |             |                    |             |
|                    |             |                    |             |
| ####### Oranges    |             |                    |             |
|                    |             |                    |             |
| **MT**             |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Exports to**     | **2004**    | ###### Exports to  | **2005**    |
+--------------------+-------------+--------------------+-------------+
| U.S.               |             | U.S.               |             |
+--------------------+-------------+--------------------+-------------+
| Others             |             | Others             |             |
+--------------------+-------------+--------------------+-------------+
| Saudi Arabia       | 210,751     | Croatia            | 73,638      |
+--------------------+-------------+--------------------+-------------+
| Other Arab         | 99,420      | Norway             | 69,307      |
| Countries          |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| Russia             | 94,549      | Kenya              | 68,430      |
+--------------------+-------------+--------------------+-------------+
| Ukraine            | 46,684      | Singapore          | 60,650      |
+--------------------+-------------+--------------------+-------------+
| England            | 44,039      | Spain              | 53,647      |
+--------------------+-------------+--------------------+-------------+
| Holland            | 42,115      | Chic               | 52,680      |
+--------------------+-------------+--------------------+-------------+
| Spain              | 17,257      | Singale            | 50,870      |
+--------------------+-------------+--------------------+-------------+
| Italy              | 6,523       | Serbia             | 48,820      |
+--------------------+-------------+--------------------+-------------+
| Slovenia           | 4,995       | Georgia            | 46,760      |
+--------------------+-------------+--------------------+-------------+
| Belarus            | 4,089       | Canada             | 45,680      |
+--------------------+-------------+--------------------+-------------+
| **Total for        | 570,422     |                    | 570,482     |
| Others**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Others not       | 34,319      |                    | 18,518      |
| listed**           |             |                    |             |
+--------------------+-------------+--------------------+-------------+
| **Grand Total**    | 604,741     |                    | 589,000     |
+--------------------+-------------+--------------------+-------------+

## PSD Tangerines

+----------------+---------+--------+-------+-------+------+---------+
| #              |         |        |       |       |      |         |
| ######## Egypt |         |        |       |       |      |         |
|                |         |        |       |       |      |         |
| ######## Fr    |         |        |       |       |      |         |
| esh Tangerines |         |        |       |       |      |         |
|                |         |        |       |       |      |         |
| (Thousand MT)  |         |        |       |       |      |         |
+----------------+---------+--------+-------+-------+------+---------+
|                |         | **     |       | **2   |      | *       |
|                |         | 2005** |       | 006** |      | *2007** |
+----------------+---------+--------+-------+-------+------+---------+
|                | Old     | New    | Old   | New   | Old  | New     |
+----------------+---------+--------+-------+-------+------+---------+
| ###### Mar     |         | **10/  |       | *     |      | **10    |
| ket Year Begin |         | 2005** |       | *10/2 |      | /2007** |
|                |         |        |       | 006** |      |         |
+----------------+---------+--------+-------+-------+------+---------+
| Area Planted   | 39      | 39     | 0     | 40    | 0    | 40      |
+----------------+---------+--------+-------+-------+------+---------+
| Area Harvested | 35      | 35     | 0     | 36    | 0    | 37      |
+----------------+---------+--------+-------+-------+------+---------+
| Bearing Trees  | 2,140   | 2,140  | 0     | 2,196 | 0    | 2,257   |
+----------------+---------+--------+-------+-------+------+---------+
| Non-Bearing    | 1047    | 1047   | 0     | 1072  | 0    | 1011    |
| Trees          |         |        |       |       |      |         |
+----------------+---------+--------+-------+-------+------+---------+
| TOTAL No. Of   | 3,187   | 3,187  | 0     | 3,268 | 0    | 3,268   |
| Trees          |         |        |       |       |      |         |
+----------------+---------+--------+-------+-------+------+---------+
| Production     | 483     | 483    | 0     | 484   | 0    | 497     |
+----------------+---------+--------+-------+-------+------+---------+
| Imports        | 0       | 0      | 0     | 0     | 0    | 0       |
+----------------+---------+--------+-------+-------+------+---------+
| **TOTAL        | 483     | *      | 0     | **    | 0    | **497** |
| SUPPLY**       |         | *483** |       | 484** |      |         |
+----------------+---------+--------+-------+-------+------+---------+
| Exports        | 10      | 10     | 0     | 10    | 0    | 12      |
+----------------+---------+--------+-------+-------+------+---------+
| Fresh Dom.     | 473     | 473    | 0     | 474   | 0    | 485     |
| Consumption    |         |        |       |       |      |         |
+----------------+---------+--------+-------+-------+------+---------+
| Processing     | 0       | 0      | 0     | 0     | 0    | 0       |
+----------------+---------+--------+-------+-------+------+---------+
| **TOTAL        | 483     | *      | 0     | **    | 0    | **497** |
| DISTRIBUTION** |         | *483** |       | 484** |      |         |
+----------------+---------+--------+-------+-------+------+---------+

# Production

As was the case with oranges, tangerine production is forecast to
increase in 2006/07 due to expectations for better growing conditions,
particularly the absence of strong winds. Area remains relatively
constant. In 2005/06, total tangerine production increased slightly to
483,000 MT, as compared to 481,000 MT in 2004/2005. This increase is
attributed mainly to the increase in the number of bearing trees in
addition to the absence of strong winds.

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. 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

Use for human consumption is relatively flat, and no significant
processing industry exists. In 2005/2006, total mandarin consumption
increased to 473,000 MT compared to 471,000 MT in 2004/2005. Despite the
predominance of orange production, many Egyptian consumers prefer
mandarins to oranges because they are easier to eat. During the 2005/06
marketing season (November-October), wholesale prices averaged LE 1 per
kg, and retail prices were around LE 1.50 per kg.

# Trade

In 2006/07, exports are estimated at approximately 10,000 MT, the same
as the previous year. 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.
The average export price for mandarins in the 2005/2006 season was
approximately \$350 per MT, about the same price in the 2004/05 season
during the same period of time.

## PSD Citrus, Other

+------------------+--------+-------+------+------+-------+---------+
| **Egypt**        |        |       |      |      |       |         |
|                  |        |       |      |      |       |         |
| **Fresh Citrus,  |        |       |      |      |       |         |
| Other**          |        |       |      |      |       |         |
|                  |        |       |      |      |       |         |
| **(Thousand      |        |       |      |      |       |         |
| MT)**            |        |       |      |      |       |         |
+------------------+--------+-------+------+------+-------+---------+
|                  |        | **2   |      | **20 |       | *       |
|                  |        | 005** |      | 06** |       | *2007** |
+------------------+--------+-------+------+------+-------+---------+
|                  | Old    | New   | Old  | New  | Old   | New     |
+------------------+--------+-------+------+------+-------+---------+
| ###### M         |        | *     |      | **1  |       | **10    |
| arket Year Begin |        | *10/2 |      | 0/20 |       | /2007** |
|                  |        | 005** |      | 06** |       |         |
+------------------+--------+-------+------+------+-------+---------+
| Area Planted     | 19     | 19    | 0    | 20   | 0     | 20      |
+------------------+--------+-------+------+------+-------+---------+
| Area Harvested   | 17     | 17    | 0    | 18   | 0     | 19      |
+------------------+--------+-------+------+------+-------+---------+
| Bearing Trees    | 855    | 855   | 0    | 900  | 0     | 925     |
+------------------+--------+-------+------+------+-------+---------+
| Non-Bearing      | 704    | 704   | 0    | 740  | 0     | 715     |
| Trees            |        |       |      |      |       |         |
+------------------+--------+-------+------+------+-------+---------+
| TOTAL No. Of     | 1559   | 1559  | 0    | 1640 | 0     | 1640    |
| Trees            |        |       |      |      |       |         |
+------------------+--------+-------+------+------+-------+---------+
| Production       | 413    | 413   | 0    | 430  | 0     | 440     |
+------------------+--------+-------+------+------+-------+---------+
| Imports          | 0      | 0     | 0    | 0    | 0     | 0       |
+------------------+--------+-------+------+------+-------+---------+
| **TOTAL SUPPLY** | 413    | **    | 0    | **4  | 0     | **440** |
|                  |        | 413** |      | 30** |       |         |
+------------------+--------+-------+------+------+-------+---------+
| Exports          | 20     | 20    | 0    | 15   | 0     | 17      |
+------------------+--------+-------+------+------+-------+---------+
| Fresh Dom.       | 376    | 376   | 0    | 415  | 0     | 423     |
| Consumption      |        |       |      |      |       |         |
+------------------+--------+-------+------+------+-------+---------+
| Processing       | 17     | 17    | 0    | 18   | 0     | 18      |
+------------------+--------+-------+------+------+-------+---------+
| **TOTAL          | 413    | **    | 0    | **3  | 0     | **440** |
| DISTRIBUTION**   |        | 413** |      | 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.