FEC defied global crises and maintained exports volumes in 2022

Food Export Council Chairperson to Commodity Market:

The Russian-Ukrainian war prevented the sector from achieving the targeted growth

Sector eyes $5bn in exports in 2023, up by 25%

The global situation is unstable and it is difficult to predict market trends during the current year

Last year export ban covered 15% of products

Edita

Exports account for 9% of Edita's total sales

Palestine, Iraq and Libya are the most important export markets for the company's products... Molto and Cake are the most important export products

38.7% growth in the company's turnover in the first 9 months of 2022

Egypt's food exports achieved a slight growth over the past year, at a rate of 0.5%, bringing the sector's total exports to $4.124bn, compared to $4.102bn in 2021.

The Food Export Council expected to achieve a growth of 20 to 25 percent over the past year, but the aftermath of the Russian-Ukrainian war prevented the sector from achieving the target.

Hani Berzi, Chairperson of the Food Export Council, told Commodity Market, in an interview, that the Russian-Ukrainian war, the consequent supply chain crisis, and the lack of raw materials in the global market prevented the sector from achieving the targeted growth rates last year.

He added that achieving growth in the exports of the food sector is a very positive indicator that shows the real capabilities of this strategic sector in light of the challenges that the sector went through in 2022, including the imposition of an export ban on a number of strategic commodities that represent 15% of the sector’s exports, including flour, pasta, and edible oils.

He also said that the sector succeeded in providing food security to Egypt without any shortage of food commodities, in addition to the large growth rates in exports to the European Union, which amounted to 31% and to the United States of America, which amounted to 24%, which is evidence of the world's growing confidence in the Egyptian product and its ability to achieve the highest levels of safety and food security.

Saudi Arabia ranked first among countries importing Egyptian food industries with a value of $370m, followed by the United States of America with a value of $277m, Libya in third place with a value of $218m, then Palestine in fourth place with a value of $207m, and Sudan in fifth place, with exports worth $182m.

Regarding the council’s work strategy during the current year, Berzi said that the situation in the global market is unstable, and it is not possible to predict when the Russian-Ukrainian war will end and the global inflation rate will drop, expressing his hope to achieve a growth rate in the sector’s exports to reach $5bn, which is the same target as 2022 but was not achieved due to global and local conditions.

Berzi stressed that Egyptian food products have gained the confidence of the global market and reach almost all countries of the world, from the Arab countries to the United States of America, the European Union, China, Latin America and others. Therefore there are great opportunities for export growth if conditions in the global market stabilize.

Regarding the establishment of the Arab food market, he said that the council is always looking for opportunities that can increase the exports of member companies. "Undoubtedly, the Arab market is vital for Egyptian companies and accounts for almost half of the sector's exports, especially since Egypt is the largest food producer in the Arab world," he said.

Edita

Hani Berzi, Chairperson of Edita Food Industries, estimated the export share of the company's annual sales volume at about 9%, and the company seeks to increase it by an average of 10% annually.

Export sales increased at an annual growth rate of 40.3%, to record EGP 129.0m during the third quarter of 2022, representing 6.5% of the company's total revenues during the same period.

Berzi praised the company's exceptional performance, which confirms that it is on the right path towards achieving strong results by the end of 2022 that exceed expectations, as the company's revenues during the first 9 months of last year amounted to approximately EGP 5.1bn, with an annual growth rate of 38.7%.

On the regional level, Berzi expressed his pride in the strong performance of Edita Morocco and the remarkable growth in export sales, which is in line with regional expansion goals.

The revenues of Edita Morocco amounted to about EGP 89m during the first nine months of 2022, and the quantities sold amounted to 47 million packages during the same period. The company launched a new cake production line for the first time in Morocco in October 2022, thus introducing the company's Twinkies cakes for the first time there.