Egyptian exporters positive in crowded market

At the beginning of this year, it was already clear that the 2024 calendar year had yielded an above-average potato harvest. New figures for the entire 2024/25 season show that an estimated 9 million tons of potatoes were harvested in Egypt. If this is true, it would represent a new production record. Normally, the harvest volume fluctuates between 6 and 7 million tons, but potato cultivation in the country has been growing over the past decade.

Export is disappointing
Potatoes are grown year-round in Egypt, to varying degrees. This makes the country an attractive exporter, as it can supply fresh produce for a large part of the year. This is a major advantage for the table potato market. Due to sufficient supply, exports last season remained at 1,3 million tons. This is above average, but given the large harvest, exports should increase further. As a result, growers and exporters were left with a relatively large stock of unsold potatoes, putting significant pressure on prices.

The autumn/winter crop is currently being planted. Planting will continue until December, overlapping with the harvest, which begins at the end of this year. Forty percent of the winter crop is destined for potato processing into French fries and chips. The processing industry is becoming increasingly prominent in the country. Last year, there were problems with the supply of sufficient seed potatoes due to payment issues. According to insiders, the situation has now improved. Egyptian growers are positive about the prospects for next season. Moreover, buyers will have to pay less, for example, for Egypt's signature potato variety, Spunta.

Competition
Roughly two-thirds of Egyptian table potato exports find their way to European destinations and Russia. The remainder remains in North Africa, in countries such as the United Arab Emirates, Tunisia, and Iraq. It remains to be seen to what extent countries on the European continent will be able to market the coming season. After all, there is significantly more domestic production available, at very low prices. Russia is also experiencing improved potato availability. This is already reflected in Russian import figures for French fries. For the coming season, not only is there sufficient seed potatoes available in Egypt, but growing conditions are also improving. For example, due to the installation of more pivot irrigation systems. This increases the average yield.

The market for the final product, French fries, is structured differently. 2024 was a very good year for Egyptian chip companies, which collectively produced an estimated 315.000 tons of frozen fries. Exports in 2024 amounted to 191.400 tons, almost a third more than in 2023. In the first seven months of this year, 107.200 tons were exported, 21.224 tons (+25%) more than in the same period last year. If the country can maintain this pace, another export record will be reached.

Cost price
A key advantage for Egyptian exporters is the cost of their fries, which is significantly lower than that of their European competitors. This is one of the reasons the country has risen so rapidly. There are also opportunities for table potatoes, particularly with Russia, which has seen different trade flows since the war in Ukraine, but also with the United Kingdom, for example. Traditionally, the United Kingdom is a major buyer of Cypriot potatoes in the early segment, but it faced supply problems last season. Egyptian companies are capitalizing on this.

Growth in cultivation
Potato cultivation is becoming increasingly prominent in Egyptian agriculture. Between 2010 and 2020, the area under potato cultivation doubled, now reaching nearly 270.000 hectares. Potatoes account for a third of Egypt's total vegetable production, in terms of area. Processing into French fries and chips continues to professionalize and grow. The country relies on competitive sales prices and is strategically located for trade in Europe, Asia, and North Africa.