Egypt's Olive Oil Exports Have $6.1 Million In Untapped Potential

A report issued by the Food Export Council has identified promising, untapped export opportunities for Egyptian olive oil in global markets, noting that exports could rise by around $6.1 million if these opportunities are effectively utilised. The findings were unveiled during a seminar organised by the council examining the state of the sector globally in terms of production, trade and challenges.

United States And Italy Lead Target Markets

The report highlighted the United States as the world's largest importer of olive oil, accounting for around 20% of total global imports. It noted that Egyptian exports to the US market currently do not exceed $500,000, but could potentially rise to $2.8 million, representing an untapped opportunity worth $2.3 million.

The report also pointed to other promising markets, including:

• Italy: an additional export opportunity worth $1.6 million
• Saudi Arabia: an opportunity worth around $1 million
• Canada: an opportunity worth $1 million
• United Arab Emirates: an export opportunity worth $338,000

The total export opportunities available in these five markets amount to around $6.1 million, which could boost exports by nearly 20% if optimally utilised, particularly since the US and Italy alone account for around 40% of global olive oil imports.

Production And Quality Challenges Stand In The Way

The report explained that expanding exports requires overcoming several fundamental challenges, most notably:

• Compliance with importing countries' requirements, particularly regarding pesticide residues, which represent a major obstacle to exporting to the United States.
• Insufficient focus on oil varieties, as most olive trees in Egypt are grown to produce table olives rather than for oil extraction.
• Ageing trees and reliance on manual harvesting, which drives up costs and leads to quantity losses.
• Outdated mills and weak production technology, which affects extraction efficiency and the quality of the final product.

The report stressed the need to modernise mills and adopt modern technology to ensure efficient oil extraction, maintain acidity levels, and improve manufacturing and storage methods, alongside expanding cultivation of varieties with strong global demand.

A Call For Coordinated Efforts To Break Into Global Markets

In conclusion, the council called for coordinated efforts among all relevant public and private sector stakeholders to overcome the challenges identified and open new horizons for Egyptian olive oil exports, thereby strengthening its competitiveness in global markets and enabling Egypt to make full use of its export potential.

Source: Commodity Markets