Egypt faces onion overproduction, low demand and low prices

The Egyptian onion season kicked off in April after a three-month export ban. As a reminder, last season’s onion stocks were insufficient in Egypt, driving prices on the local market to unprecedented levels and prompting the government to intervene and ban exports.

According to Mohamad Hassan, Export Manager of Al Gamal, There seems to be an excess of production this year. Many producers have grown onions this year, because of the shortage and high prices last season, FreshPlaza explains. The volume is estimated at over three million tons nationally, one million tons more than last season.”

To make matters worse, this year’s excessive volumes are accompanied by low demand. “Demand is almost non-existent for Egyptian onions,” says Mohamad, “and we’ve ended up with a lot of onions on our hands. If we take Saudi Arabia as an example, it’s a safe market that pulls large volumes of onions from Egypt, but this year demand is not there.”

As a result, prices have fallen compared to the previous season. The adds: “The season started with lower prices than the previous season. This wasn’t a cause for concern and was quite normal, as the previous season was exceptional. But after that, prices only went down.”

“Producers and exporters are not at all satisfied with this season. And it’s going to end with unsold volumes far exceeding local market needs,” concludes Mohamad.