Market Trends of Agriculture in Egypt
This section covers the major market trends shaping the Egypt Agriculture Market according to our research experts:
Favorable Government Initiatives to Boost Domestic Production
Agriculture is a vital component of the Egyptian economy. The government increased its support for the development of the agricultural sector by launching several campaigns and initiatives. As part of the International Fund for Agricultural Development (IFAD's) rapid response during the pandemic, under the PRIME project, the Egyptian government developed an e-marketing platform called SHARI which allowed smallholder farmers to market and sell their products online to reduce the risks of exposure and also secure markets for them.
The government also aims to introduce new solutions, such as market linkages for smallholders that are fostered by improving their competitiveness in the value chain, facilitating roundtables, and developing out-grower schemes and public-private partnerships to boost production. For instance, in 2019, the Food and Agriculture Organization (FAO) and the Egyptian government launched a program to enhance agricultural productivity through digital technology. The implementation of digital technology helps farmers access information to better manage crops and livestock and help them make better agricultural decisions. With this initiative, the production of wheat increased in the country. For instance, according to the FAO, the production of wheat increased from 8.3 million metric ton in 2018 to 9 million metric ton in 2021.
Moreover, to build capacity in the private sector, USAID established a regional training center to increase and improve the productivity of farmers, laborers, packhouse managers, and buyers. Additionally, USAID's Feed the Future Egypt Rural Agribusiness Strengthening initiative assists farmers in Upper Egypt and the Delta in increasing their earnings by growing marketable products that meet international export requirements. This program invests 36.3 million dollars to strengthen agriculture in the period of 2018-2023. This is further likely to strengthen the importance of agriculture in Egypt.
Steadily Expanding Export Market
Egypt's major agricultural exports to the world are potatoes, cotton, and fresh fruit, primarily citrus. As per Agricultural Export Council, an increase in the total quantities exported from the agricultural sector recorded about 3.971 million metric tons from September 2020 to June 2021, compared to 3.755 million metric tons during the same period from 2019-2020, with a growth of 5.7%.
The Agricultural Export Council aims to increase the exports of the agricultural sector by 10% during the 2021-2022 export season. Higher sales of citrus fruits, beets, and potatoes were the prominent crops that aided the record year for Egyptian agricultural exports in 2021, exceeding 5.6 million metric tons. Additionally, according to the ITC trade map, in 2021 the total fresh potatoes exported was valued at USD 194,955 thousand.
The expansion of agricultural greenhouses increased the production of quality pepper and its competitiveness in the international market in 2020. This contributed to stimulating international demand for the Egyptian product, taking exports of the previous season to about 7,500 metric tons at a value of USD 5.8 million. Along with this, USAID's initiatives to increase exports are also favoring agriculture in the country.
The country's Sustainable Development Strategy toward 2030, focuses on increasing self-sufficiency concerning agricultural products to make the most of the water and land resources sustainably, thereby creating additional demand for Egyptian produce. Most of Egypt's exports are destined for the EU, Russia, North Africa, and the Middle East.
