Egyptian exporters optimistic in a crowded market

Egypt had a good potato harvest in the 2024/25 season. Part of it finds its way as table potatoes to Europe. The export of fries also shows good numbers from the country. There is a positive mood in the Egyptian potato sector that is focused on growth. Due to a crowded market, the question remains whether ambitions will be fulfilled. At the beginning of this year, it was already clear that the calendar year 2024 would yield an above-average potato harvest. New figures for the entire 2024/25 season show that approximately 9 million tonnes of potatoes have been harvested in Egypt. If this is true, it means a new production record. Normally, the harvest volume fluctuates between 6 and 7 million tonnes, but potato cultivation in the country has been growing over the last decade. Export disappoints Year-round, potatoes are grown in Egypt, to a greater or lesser extent. This makes the country an attractive exporter, as it can deliver fresh products for a large part of the year. This is a significant advantage for the table potato market. Due to sufficient supply, exports last season remained at 1.3 million tonnes. This is more than average, but given the large harvest, exports should increase further. As a result, growers and exporters are left with a relatively large stock of unsold potatoes, putting strong pressure on prices. The autumn/winter crop is currently being planted. Planting lasts until December, with an overlap with the harvest, which starts at the end of this year. 40 percent of the winter crop is destined for potato processing into fries and chips. The processing industry is taking an increasingly prominent place within the country. Last year, there were problems with the supply of sufficient seed potatoes due to payment issues. According to insiders, that situation has now improved. Egyptian growers are optimistic about the prospects for the next season. Moreover, buyers do not need to dig too deep into their pockets, for example for the favoured Egyptian-variety Spunta. Competition Approximately two-thirds of Egyptian table potato exports find their way to European destinations and Russia. The remaining part stays in North Africa, in countries like the United Arab Emirates, Tunisia, and Iraq. It remains to be seen to what extent countries on the European continent are active in the market next season. After all, significantly more domestic harvest is available at very low prices. Russia also has improved availability of potatoes. This is now reflected in Russian import figures for fries. For the coming season, not only is there sufficient seed available in Egypt, but the growing conditions are also improving. For example, by the installation of more pivot irrigation. This increases the average yield. For the final product fries, the market is structured differently. 2024 was a very good year for Egyptian fries companies, which together are estimated to produce 315,000 tonnes of frozen fries. Exports reached 191,400 tonnes in 2024, which is almost a third more than was exported in 2023. In the first seven months of this year, 107,200 tonnes were exported, which is 21,224 tonnes (+25%) more than in the same period last year. If the country can maintain this pace, another export record will follow. US purchases significantly more The largest buyer is Saudi Arabia, where export levels this year are almost equal to those of last season. Until July, 18,386 tonnes were exported. The number two, Brazil, purchased 12,206 tonnes during this period, which is about 1,000 tonnes more than a year earlier. The United States follows closely with almost 12,000 tonnes. After a disappointing export year in 2024, Americans have purchased 35% more Egyptian fries this year. Proportionally, Russia has bought significantly more fries this year. Until July, exports were 87% higher than a year ago in this period. This is a small volume, so far 276 tonnes. It is primarily a major buyer of Egyptian table and seed potatoes, the imported volume of which increased by 400% last year due to a potato shortage in the country. A significant advantage for Egyptian exporters is the cost price of their fries, which is significantly lower than that of European competitors. This is one of the reasons why the country has been able to make such progress in a short time. There are also opportunities for table potatoes, especially to Russia, which since the war in Ukraine is seeing different trading flows, but also to the United Kingdom. That is traditionally a large buyer of Cypriot potatoes in the early market segment, but faced delivery problems last season. Egyptian companies are cleverly capitalizing on that. Chip potatoes Another growing segment is that of chips. As early as 2001, PepsiCo acquired the local player Chipsy Food Industries, where a brand new factory was built in 2023 with an annual production capacity of 25,000 tonnes. Not only is the country itself seeing an increase, but exports to African and Asian countries are also steadily increasing. The cultivation of potatoes is taking on an increasingly prominent place within Egyptian agriculture. Between 2010 and 2020, the area doubled and is now about 270,000 hectares. A third of total Egyptian vegetable cultivation is accounted for by potatoes in terms of area. Processing into fries and chips continues to professionalize and grow. The country relies on competitive sales prices and is strategically located to trade in both Europe and Asia and North Africa.