EastFruit analysts report a rapid rise in export prices for Egyptian oranges on FOB terms. In mid-April 2025, prices were at $0.43-0.45 per kg, now reaching $0.66 per kg. This increase is attributed to seasonality, reduced harvest, logistical challenges, and heightened demand for citrus fruits.
The citrus export season from Egypt is nearing its conclusion, traditionally leading to price hikes as stocks dwindle. However, the current season's price escalation is more pronounced than usual. Abnormal heat during the flowering period has reduced the harvest by nearly a third, with 90% of fruits being medium-sized, limiting supply to premium markets in the Gulf states and Eastern Europe.
Additionally, Egypt reduced subsidies for exporters from 8-10% to 2.5% in November 2024, increasing the financial burden on exporters and contributing to price increases. The development of the orange processing industry and the production of frozen orange juice concentrate also influence prices. The growth in concentrate production facilities is driven by high global prices following a decline in Brazil's production.
High prices for other citrus fruits, such as lemons, exert a psychological influence on orange prices. Drought and increased production costs in Spain and Italy have reduced citrus harvests, creating favorable conditions for Egyptian exporters to raise prices.
Source: EastFruit