NEW PLANT TO FREEZE VEGETABLES WITH INVESTMENTS OF EGP 150M, SAYS CHAIRPERSON
EGCT for agricultural products exports reached EGP 600m last year by exporting 80,000 tonnes, with plans to reach 110,000 tonnes by the end of this year through expanding into new markets, such as China.
Mohamed El Dessouky, chairperson of the board of directors of the company, estimated that the company’s investments are at EGP 800m, and plans to establish a plant to freeze vegetables with investments of EGP 150m during the current year.
He pointed out that all the company’s production is directed toward export,especially the markets of India, China, Russia, Ukraine, the Netherlands, Malaysia, the UAE, and Jordan.
Furthermore, he stressed that the company obtains its products from its own lands, as well as contracting with other farmers, which requires obtaining international certificates ensuring lack of pesticide residues therefore allowing its products to enter global markets.
In addition,El Dessouky,revealed that EGCT is growing 200 feddan dedicated to broccoli, lettuce, cauliflower, and strawberries and freezes them in their own factory.
The company is also seeking to increase the areas it cultivates, through purchasing new lands offered by the government in new cities, the chairperson added.
Moreover, he emphasised that participation in exhibitions helps the company to meet old customers and identify new customers, which the company cannot easily access in any way other way than through participating in exhibitions.
What’s more, he indicated that 40% of the companies participating in international exhibitions are offices and non-specialised entities, which, often times, damages prices, with export offices participating in exhibitions just for participation’s sake.
He pointed out that the exports are no longer in demand as they were previously due to dependence on greenhouse cultivation and lack of focus on importing, all this, coupled with the global recession in trade transportation.
Among the challenges faced by the sector is the decline in prices owing to the decrease in global purchasing power and the increase in supply, disclosed El Dessouky, adding that each country should have a quota for exports to other countries in order to avoid oversupply.
In addition, EGCT’s chairperson noted that it is possible to know the needs of countries that are exported to through limiting the quantities they imported from Egypt during the last three years and not exporting to them more than their needs,which is what Morocco does.