“Egyptian garlic” defies the decrease in spaces and the decline in prices

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The new Egyptian garlic season is facing a decrease in production quantities, due to the decline in cultivation areas, and its prices have also declined significantly compared to cost factors.

Anthony Mina, CEO of the Agricultural Crops Company «E2M», said that estimates of the decline in areas and production this season reach 50% compared to the previous season, and this decline is normal in the third cycle after every two agricultural cycles.

He explained that the past two seasons witnessed a significant increase in production. This growth was not matched by an improvement in farmers’ profits. Therefore, after two years of high production, agricultural areas decreased by about the previous two years, driven by farmers’ losses.

Egypt ranks fourth among the countries that produce the most garlic in the world, with total quantities reaching 280 thousand tons annually, but exports range between 30 and 36 thousand tons annually, and China ranks first in production with more than 20 million tons annually.

He added that the company has shifted to cultivating part of its annual needs for export since it started its business in Egypt 7 years ago, to reduce its dependence on other farmers and ensure the provision of stable supplies for export contracts to various markets, including Australia, Canada, the United States and Taiwan.

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Kamel Mohamed, head of Al-Nada Company for Import and Export, said that the volume of garlic production decreased by about 50% in Minya governorate alone during the current year, which is the largest producer of garlic in Egypt, due to the high agricultural cost and farmers’ losses during the last two seasons.

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Kamel indicated that the companies began exporting limited quantities as harbingers of the new season, starting in mid-January, at about 45,000 pounds per ton, compared to about 35,000 pounds per ton during the same period last year, while the cost of the product doubled amid the high prices of pesticides, fertilizers, labor, and land rent.

He pointed out that the Netherlands and Germany are among the first to receive Egyptian garlic in the new season, and the fair price of garlic in light of the depreciation of the Egyptian pound and the high cost should not be less than 60,000 pounds per ton for export.

He pointed out that export operations during the current season face a set of challenges, foremost of which is the decrease in the size of areas and production, in addition to the low price of the product compared to its high cost, and the losses that farmers will suffer will affect the size of areas in the coming years.

He added that the volume of export demand is supposed to be good now, as the Egyptian product is the only one in the global market of fresh garlic during this period of the year, and the actual season begins in mid-February from the governorates of Minya, then Beni Suef, and then Beheira.

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