Why Egypt’s date production industry is held back from being globally competitive: Egypt is the largest date producing country in the world, but we export only 3%of total annual production. This gap between our production capacity and output, and the volume of exports we are able to ship to export markets is a result of structural problems within the industry, our sources tell us. These challenges include the absence of standardization of varieties, the absence of a trademark for New Valley dates, the multiplicity of intermediaries in date production, and a dearth of high quality packaging facilities.

By the numbers: Egypt annually produces 1.7 mn tons of dates, accounting for around 18% of global production volumes, according to data from the Food Export Council. Saudi Arabia comes in second, followed by Iran, according to UN FAOfigures (pdf). Egypt exported around USD 50 mn-worth of dates in 2021, the Food Export Council said.

We want to export a whole lot more: Egypt is looking to push our date exports to reach USD 100 mn in the next few years, the export council’s Deputy Director Tameem El Dawy told Enterprise. This would still be a relatively small piece of the global date trade, which is worth some USD 2 bn per year, according to El Dawy.

The government has been pushing to develop the date industry: Presidential directivesto double the number of palm trees in El Wadi El Gedid to 5 mn and introduce new date varieties will support the industry, Emad Bahr, former director of the Dates Complex in El Wadi El Gedid and Undersecretary of the Agriculture Directorate, told Enterprise. The directives were particularly helpful for the production of semidry (Upper Egyptian) dates produced in Dakhla and Kharga oases. Semi-dry dates account for the lion’s share of our exports, with some 60k tons produced annually, Bahr said. The government has also been pushing to support the development of scientific research to grow industries connected to date production, such as palm waste, Bahr said.

There’s lots more that can be done to grow the industry, starting with standardization: The industry currently lacks uniform standards and specifications, which undermines overall production quality and could lead to Egyptian dates being rejected from export markets, Bahr told us. One such issue is the lack of a trademark or branding for semi dry dates, which opens up space for some traders to mix varieties, Bahr said

We could see a breakthrough there: The Academy of Scientific Research, New Valley University, and the FAO reached an agreement to register a geographical indication — a tag that identifies products as having originated from a specific location and have the characteristics of products from said location — and unified label for New Valley dates. This move is designed to improve date varieties in the Kharga Oasis to maximize the potential of the palm date industry, palm waste, and supporting the opening of new export markets for palm products and palm-based industries in the governorate. Any producer or investor who meets standards of the New Valley geographical indication will be allowed to put the label on their products, which will help create a visual identity for the dates in the governorate.

Health standards are also a critical requirement: Although date producers in Egypt generally adhere to all health and environmental requirements in the packaging and drying process, exporting to Europe requires factories with a high degree of development and sophistication, said Mahmoud El Shazly, a major producer of dates.

There’s also a lack of standardization with market pricing: Each ton of dates is priced at USD 1k, with no pricing mechanism in place, Bahr said. Most companies transport dates to packing and packaging factories in northern Egypt, which are some 1k km away from where they’re cultivated and harvested. High transport costs then drive up the final price at which the dates are sold to export markets, he noted.

Industry players are also facing the challenge of high packaging costs, which Bahar and El Shazly see as one of the most important issues facing producers.

A logistical area for the date industry: The Trade and Industry Ministry moved forward last year on establishing a logistical areafor the date industry in El Wadi El Gedid, which includes collection and packaging facilities for dates earmarked for local consumption. The logistical area will also be geared towards exported dates, Minister Ali El Moseley said, and will meet international standards and specifications.

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