As is well known, garlic is mostly imported in dried form from numerous places. However, next to all this dried garlic, already commonly available on the market, its fresh, green equivalent is now gaining in importance. We spoke to Edgar Günther, managing director of SuezFruit, about the upcoming Egyptian season, the complicated freight situation and the longer-term market outlook.
The first shipments have already been delivered in the Czech Republic, and the first air cargo lots will arrive in Germany at the end of week 4. “Due to the optimal weather conditions, we will start the new season two weeks earlier. Due to the high freight rates, we are starting at a high price level. Nevertheless, with quality goods and kilo prices around of around €6, we have a good starting position compared to South African goods, which are traded at €9 /kg,” Günther explains.
Green garlic is mainly grown in the al-Minya region of central Egypt.
Increased freight rates
From the current perspective, the export volume could be increased by quite a bit this year, Günther further expects. “Our target -compared to last year- is to increase our total container count. However, increased transportation costs and scarceness of stowage space present us with extreme challenges in this year’s season as well. Last year, we shipped a relatively large amount of goods by air, but this year we want to switch to ocean freight as soon as possible, because the prices for airfreight are €1 /kg higher compared to sea freight. This corresponds to a price difference of about €6 /colli.”
In addition to the more difficult fruit logistics, Günther also expects a difficult season in terms of sales. “Although our green garlic has now established itself within food retail, for example in southern Germany, Poland, France and Holland, a substantial part of the volume is reaching the catering trade via the wholesale trade. Due to restrictions in the restaurant industry and declining tourism, it will be a challenge to sell these products accordingly.”
SuezFruit is a brand of Hamburg-based ElbeFruit.
Tough competition with regard to9 garlic
Thanks to good storage capacities at the point of origin, the green goods can probably be marketed until April, after which the company will continue with dried garlic. Günther: “Competition is extreme for the dried product, especially since numerous sources are represented on the market. 2021 was rather a lousy year for Egyptian garlic, not least because the local market needed a lot of product. This year, we are hoping for better sales.”
For more information:
Edgar Günther
SuezFruit
ÄG: +20 115 718 8473
DE: +49 1575 1751475
[email protected]
www.suezfruit.com.eg
