Fruttella’s sales reach EGP 170m in 2018
“Company invested EGP 40m to reclaim 1,000 feddan for citrus cultivation,” says managing director
Fruttella’s sales grew more than expected to reach EGP 170m, up from EGP 100m in 2017. The company plans to reach EGP 200m by the end of this year.
Ahmed Sarhan, Fruttella’s managing director, said that the sales growth was driven by a business volume of 22,200 tonnes last year, up from 18,000 the year before.
“The company targets sales which will exceed EGP 200m this year, through intensifying its presence in new markets, and by increasing the quantities exported despite the crises experienced by the global market,” he said.
Moreover, Sarhan stated, “The company injected investments worth EGP 40m to reclaim 1,000 feddan for citrus cultivation in the ‘Future of Egypt’ project area on the Dabaa road, bringing the total land area in its possession to 2,000 feddan.”
Furthermore, he indicated out that the total cost of the project before its first direct production, after three years, will reach about EGP 70m.
Fruttella owns a sorting and a packaging plant for agricultural crops with a production capacity of 40,000 tonnes, including 22,000 tonnes in operation,of which 16,000 tonnes are channelled toward exports. Following production from new areas, the total capacity will reach 35,000 tonnes.
Notably,the company exports its products to Europe, Singapore, Malaysia, China, Kenya, Nigeria, and the Gulf countries, yet the Netherlands and China account for 60% of the total exports, and Africa for only 4% with three targeted countries.
The company is targeting a range of non-traditional markets during the current season, including Vietnam and the Caribbean Islands, as stated by Sarhan.
He asserted that the current season is full of local and global bottlenecks, in terms of new contracts, as supply has increased in most crops, especially in citrus fruits.
In addition,Sarhan explained that the orange crop has an unusually high productivity, with world markets saturated from the markets of South Africa, Morocco, and Spain.
Pre-season exporters were hoping to increase their sales, but this will not be possible as a result of the changes which affected the markets.
The company’s managing director explained that the collapse of the Turkish lira against the foreign currency basket positioned Turkish products in an advanced competitive position at the global level, where it lost about 40% of its currency value, which encouraged it to increase exports.
“Products in Turkey are also aided by the value of government subsidies for exports, while Egyptian products cannot compete as subsidies are low and are not even granted on time,” Sarhan stressed.
Over and above, he predicted that global changes will affect the prices and quantities of the exportoriented crops during the current season. This is the case for agriculture worldwide, where climatic changes control overall production volumes.
In terms of other products, Sarhan declared that pomegranates are performing fairly good this season, compared to citrus fruits, yet, they are also decreasing and there is a lower demand than in the previous seasons.
Noteworthy, Fruttella exports the whole family of citrus fruits, alongside pomegranates, grapes, and mangoes. Most of the products which are exported are citrus fruits, especially oranges, with the first and second grades exported, while the third grade is supplied to the local market.