""

Required Report - public distribution

**Date:** 11/6/2003

**GAIN Report Number:** EG3025

EG3025

**Egypt**

**Citrus**

**Annual**

**2003**

**Approved by:**

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

US Embassy

**Prepared by:**

Ali Abdi & Sherif Ibrahim

**Report Highlights:**

Government export subsidy program for oranges and continued devaluation
of the Egyptian pound pushed orange exports to a five-year high during
2002/2003. Egyptian orange exports are expected to remain strong next
year.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

Cairo \[EG1\]

\[EG\]

Table of Contents

[Oranges 3](#oranges)

[Production 3](#production)

[Consumption 3](#consumption)

[Trade 4](#trade)

[Tangerines 6](#tangerines)

[Production 6](#production-1)

[Consumption 6](#consumption-1)

[Trade 7](#trade-1)

[Fresh Citrus, Other Stocks 7](#fresh-citrus-other-stocks)

[Production 7](#production-2)

# 

# Oranges

  ---------------------- ------------- ------------- -------- ------------- -------- -------------
  **PSD Table**                                                                      

  **Country:**           **Egypt**                                                   

  **Commodity:**         **Oranges**                                                 

                                       **2001**               **2002**               **2003**

                         Old           New           Old      New           Old      New

  **Market Year Begin**                **10/2001**            **10/2002**            **10/2003**

  Area Planted           88            88            88       88            0        89

  Area Harvested         85            84            85       85            0        86

  Bearing Trees          4505          4452          4509     4565          0        4583

  Non-Bearing Trees      3855          3810          3815     3800          0        3850

  TOTAL No. Of Trees     8360          8262          8324     8365          0        8433

  Production             1642          1696          1725     1734          0        1742

  Imports                0             0             0        0             0        0

  **TOTAL SUPPLY**       1642          **1696**      1725     **1734**      0        **1742**

  Exports                230           302           270      416           0        400

  Fresh Dom. Consumption 1382          1359          1420     1281          0        1305

  Processing             30            35            35       37            0        37

  **TOTAL DISTRIBUTION** 1642          **1696**      1725     **1734**      0        **1742**
  ---------------------- ------------- ------------- -------- ------------- -------- -------------

# Production

Egyptian climate is well-suited for orange production. Orange production
accounts for well over half the total fruit production in Egypt. Orange
cultivation is concentrated in two large geographic regions: the fertile
Delta area and the newly reclaimed lands. About 80 percent of Egypt's
total orange production is produced by large farms (10-100 feddans) and
the remaining 20 percent are produced by small farms (1-10 feddans).
(One feddan = .42 hectare). Navel oranges are the predominant variety.
Lesser 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. The harvest period
usually lasts for 4 to 5 months. Total orange area has been estimated at
88,000 hectares during the last couple of years. However, total orange
production in 2002 increased by about 2.2 percent over the 2001 level.
Average yield per hectare improved from 20.01 MT during 2000/01 to 20,04
MT/hectare in 2002/03, primarily due to the absence of strong winds
which usually cause damage to fruit sets during the growing season.

## Consumption

Oranges are the main fruit available in Egypt during the winter. Being a
relatively inexpensive fruit, Egyptians consume large amounts of
oranges, both as fresh and juice. Per capita consumption of oranges is
estimated at 22 Kg per year. The orange processing industry is expanding
due to the increased number of companies producing orange juice. At the
present time, 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, and 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 strong competition from
other suppliers such as Spain, Israel, and Morocco. European countries
import baladi and summer varieties, mainly for juicing, while Saudi
Arabia is currently the largest market for Egyptian table oranges. Total
Egyptian orange exports achieved a five- year record of 416,000 MT
during 2002/03 compared to only 302,000 MT during the previous year.
Most of this increase was due to the devaluation of the Egyptian pound,
making them competitive with Spanish oranges, which actually compete
with Egyptian oranges in the E.U market. Egyptian orange exports to
Saudi Arabia, Russia and Ukraine experienced a substantial growth in
2002. During MY 2002/03, the government provided an export subsidy of
\$75 per MT to orange exporters in order to increase the competitiveness
of Egyptian orange exports in the international market. The export
subsidy program is managed and implemented by the Ministry of Foreign
Trade. This subsidy program will be reduced to \$50 per MT for the MY
2003/2004. The anticipated decrease in the export subsidy program is not
expected to negatively impact exports because any loss in price
competitiveness will likely be made up by continued devaluation of the
pound. As a result orange exports are expected to reach 400,000 MT
during MY 2003/04. The current average export price of fresh oranges is
between \$300 and \$310/MT FOB about the same as during the same period
last year (beginning of export season). Exporters anticipate that prices
will be about \$ 250/MT FOB by the end of the 2003/2004 seasons as
market supplies increase.

The EU-Egyptian Partnership Agreements which was signed in June 24, 2001
will offer tariff concessions for Egyptian orange exporters. Following
the implementation of the agreement, Egypt will receive a duty- free
50,000 MT TRQ, for fresh or dried oranges (080510); 55,000 MT during the
second year and 60,000 MT during the third year and beyond. The current
TRQ for oranges is 8,000 MT at zero duty from December through May
provided the entry price is at least EUR 266/MT. The following provision
applies to Egypt's orange TRQ. Fresh sweet oranges which fall in
headings 08051010, 08051030 and 08051050 can only be imported into the
EU from December first to May 31 with 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 EU's MFN tariff.

Egyptian exporters prefer to sell their production for cash on FOB basis
in order to avoid the risk of being rejected due to 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
and four large orange exporters in Egypt. According to industry experts,
three major companies control about 78 percent of the export market. One
public sector company is still active in the orange export market, but
with declining share. According to official export data, the public
sector company share in orange export in MY 2002/03 is estimated at 13
percent of the export market compared to 20 percent in MY 2001/02.

  --------------------- -------------- -------------------- --------------
  **Export Trade                                            
  Matrix**                                                  

  **Country:**          **Egypt**      Units:               MT

  **Commodity:**        **Oranges**                         

  **Time period:**                                          

  **Exports for**       **2001**                            **2002**

  U.S.                                 U.S.                 

  Others                               Others               

  Saudi Arabia          148,563        Saudi Arabia         182,348

  Other Arab Countries  47,546         Other \'Arab         67,846
                                       Countries            

  Russia                39,205         Russia               75,080

  England               20,879         Ukraine              26,409

  Ukraine               14,059         England              20,597

  Hong Kong             9,268          E.U                  23,618

  Malaysia              4,296          Malaysia             5,531

  Indonesia             3,854          Hong Kong            5,219

  E.U                   8,331          Indonesia            3,783

  Singapore             1,200          Malta                3,752

  **Total for Others**  297201                              414183

  **Others not listed** 4,826                               1,889

  **Grand Total**       302027                              416072
  --------------------- -------------- -------------------- --------------

## Tangerines

  ----------------------- -------------- ------------- ------- ------------- ------- -------------
  **PSD Table**                                                                      

  **Country:**            **Egypt**                                                  

  **Commodity:**          **Fresh                                                    
                          Tangerines**                                               

                                         **2001**              **2002**              **2003**

                          Old            New           Old     New           Old     New

  **Market Year Begin**                  **10/2001**           **10/2002**           **10/2003**

  Area Planted            39             39            39      40            0       40

  Area Harvested          36             36            35      36            0       36

  Bearing Trees           2198           2198          2150    2249          0       2250

  Non-Bearing Trees       989            989           1040    1011          0       1012

  TOTAL No. Of Trees      3187           3187          3190    3260          0       3262

  Production              493            493           500     504           0       505

  Imports                 0              0             0       0             0       0

  **TOTAL SUPPLY**        493            **493**       500     **504**       0       **505**

  Exports                 5              5             5       4             0       5

  Fresh Dom. Consumption  485            485           492     495           0       498

  Processing              3              3             3       5             0       2

  **TOTAL DISTRIBUTION**  493            **493**       500     **504**       0       **505**
  ----------------------- -------------- ------------- ------- ------------- ------- -------------

# Production

The major variety of tangerine grown in Egypt is the mandarin, a local
"Baladi" variety that is not a hybrid variety. Mandarins are mainly
produced for the local market with limited quantities for the export
market. In 2002/03, total tangerine production increased to 504,000 MT,
or 2.2 percent over the 2001/2002 level. This increase is attributed
mainly to the increase in the number of bearing trees in addition to the
absence of strong winds during the year. 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
2002/03 marketing season (November-October), wholesale prices averaged
L.E. 0.80 per Kg, and retail prices were around LE 1.20 per Kg. In
2002/03, total mandarin consumption increased to 495,000 MT compared to
485,000 MT in 2001/2002.

# 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. During the 2002/2003
season, total Egyptian mandarins exports decreased to about 4,000 MT
compared to 5,000 MT in 2001/02. The average export price for mandarins
in the 2002/03 season was estimated at \$257 MT/FOB as compared to \$215
MT/FOB during the same period in 2001/02.

# Fresh Citrus, Other Stocks

  ----------------------- ---------------- ------------- ------- ------------- ------- -------------
  **PSD Table**                                                                        

  **Country:**            **Egypt**                                                    

  **Commodity:**          **Fresh                                                      
                          Citrus,Other**                                               

                                           **2001**              **2002**              **2003**

                          Old              New           Old     New           Old     New

  **Market Year Begin**                    **10/2001**           **10/2002**           **10/2003**

  Area Planted            18               18            18      18            0       19

  Area Harvested          16               16            16      17            0       17

  Bearing Trees           770              770           775     810           0       815

  Non-Bearing Trees       630              630           625     590           0       595

  TOTAL No. Of Trees      1400             1400          1400    1400          0       1410

  Production              352              352           355     370           0       372

  Imports                 0                0             0       0             0       0

  **TOTAL SUPPLY**        352              **352**       355     **370**       0       **372**

  Exports                 18               18            19      20            0       22

  Fresh Dom. Consumption  317              317           317     331           0       330

  Processing              17               17            19      19            0       20

  **TOTAL DISTRIBUTION**  352              **352**       355     **370**       0       **372**
  ----------------------- ---------------- ------------- ------- ------------- ------- -------------

# 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
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.