Egypt faces a decline in orange exports to Southeast Asia

From November 2023 to May 2024, Egypt exported only 42,000 tons of oranges to key Southeast Asian countries (excluding Hong Kong and Vietnam), marking one of the lowest figures in recent seasons. The most significant decline in Egypt’s presence in the region was recorded in January-February, during the start of the active orange export season.

“Unfortunately, the blockade of the Red Sea by Yemeni Houthis dealt a serious blow to Egypt’s orange supplies to Asia at the very beginning of the season. Although Egyptian exports somewhat recovered in March-April and even reached a record in May, time was lost. As a result, for the first time since the 2019/20 season, Egypt risks facing a significant drop in the volume of its orange supply to Southeast Asian countries,” commented Yevhen Kuzin, Fruit & Vegetable Market Analyst at EastFruit..

Egypt had every chance to strengthen its position in this region this season. FAS USDA analysts expected a record orange harvest in Egypt this season and, accordingly, a record export of these fruits from the country. In turn, the demand for oranges in Southeast Asian countries would have been fueled by the region’s rapid economic growth, a developing consumer market, and a thriving tourism sector.

Instead, the Red Sea blockade temporarily closed the Asian market for Egyptian exporters, and prices, which were already relatively low due to the devaluation of the Egyptian pound, fell even further. In April, for example, despite the recovery of supplies to Asia via a bypass route around Africa, oranges on the domestic market in Egypt were offered at an incredibly low price of about 15 US cents per kg.