The Egyptian garlic season is progressing with exports of dried garlic, while demand is affected by the recent start of the Spanish season. Ralph Nakhal, from the growing and exporting company Tomna, provides an update on the market situation.
Nakhal says: "The dry garlic campaign is continuing with good demand, particularly from Brazil and Taiwan. We are seeing a decrease in global demand for Egyptian garlic compared to April and May, which is normal given the competition. Nevertheless, I would say that demand remains satisfactory."
"Spain has now entered the market, changing the market's configuration. Spanish exporters' prices are higher than ours, but they're starting their season with good quality. China is also still present with competitive prices, which is limiting sales for Egyptian exporters," Nakhal continues.
Following recent reports of low Egyptian garlic prices and very high export volumes compared to the previous season, Nakhal remains cautious: "The current market situation is such that prices average USD 1.9/kg EXW, depending on quality and size. Prices below this level should raise questions for buyers."
"As in any other sector, buyers are advised to deal with reputable companies that have experience in the garlic sector and care about their reputation. Many exporters join the sector each year in Egypt, and others leave it, and buyers must remain cautious," Nakhal continues.
The area and volumes of garlic have increased significantly in Egypt this season compared to the previous one, following the normal alternation of a low year/high year, but this does not go so far as to provoke radical change in the market, according to the exporter. He concludes, "Despite high production this season, the hard facts on the market are that prices cannot be as low as reported, and a single exporter cannot alone concentrate large volumes of exports."
For more information:
Ralph Nakhal
Tomna for Agricultural Investment
Tel: +20 100 2717 275
Email: [email protected]
www.tomna.farm