EZ Food Egypt aims to double its exports in 2017 to benefit from the exchange rate value and maintain the company’s capital following the negative effects of the flotation of the Egyptian pound
The company’s chairperson, Mahmoud Khairy, said that they target achieving $1m worth of exports to the markets of Italy, Bangladesh, Spain, Malta, and England.
He added that the Italian market accounts for the largest proportion of the company’s exports, which reached $500,000 in 2016.
He said that Egypt’s exports in general, and agricultural crops in particular, have a golden opportunity to double their profits, as foreign importers are enthusiastic about trade exchange.
Yet, he explained that price wars between inexperienced exporters and those who have the capital to reduce costs and bear lower profit margins are threatening the exporters base.
He added that the number of companies that entered the field of export of agricultural products after the flotation is growing as investors aim to increase their US dollar resources after the depreciation of the national currency’s value.
He pointed out that export standards to African markets are less stringent than the European market standards, which may suit inexperienced exporters. However, he noted that exporting to Africa requires large capital to sign more than one deal or larger quantities to reduce the cost of shipping.
He said that currency gains are not as big as production inputs, including seeds, packaging, and fertilisers, which also consume hard cash.
The company pumped investments worth EGP 3m to establish a station for packaging citrus fruits and exporting them next to grapes and artichokes.
Khairy said that reducing the Egyptian presence by 50% at the exhibition is unfortunate because it limits the financial resources of the state.
He added that the company’s export activity is based on taking part in international exhibitions in order to sign more deals and promote its brand.
EZ Food Egypt was founded in late 2014.