São Paulo – Brazilian ginger exporters could have great opportunities in Egypt. The Arab country opened its ginger market to Brazil in 2021; still, sales of the Brazilian product have been close to null, despite the Mercosur-Egypt free trade agreement bringing a reduction in import tariffs, which benefits the country against its competitors.
In April this year, the Brazilian Export and Investment Promotion Agency (ApexBrasil) published a study on ginger in Egypt, with data on the market and opportunities for Brazilian companies.
The study was a partnership with the Brazilian Ministry of Agriculture and Livestock, the Ministry of Foreign Affairs, and the Embassy of Brazil in Cairo. The agricultural attaché of the Embassy of Brazil in Cairo, Rafael Mohana, spoke with ANBA about the topic.
Global ginger production has been increasing over the last ten years. In 2021, the leading producers were India, Nigeria, and China. Among the world’s largest exporters of the product, China had the lead in 2022, with export revenue of around USD 350 million, followed by the Netherlands (USD 102 million) and India (USD 67 million).
“In the same year, Brazil exported around USD 33 million worth of ginger to the world, mostly whole, without being crushed or powdered,” said Mohana.
The Egyptian market was opened to ginger from Brazil in September 2021 and presented new opportunities for product exporters. Still, since then, the attaché reported only one export from Brazil to Egypt that same year, worth USD 25,000.
“In 2022, Egypt imported USD 4.6 million worth of ginger, and the main suppliers were China, Nigeria, and India. There was a significant decrease in Egypt’s ginger imports compared to 2021 when the African country imported USD 8.3 million worth of ginger and its byproducts from the world,” said Mohana.
Read the full study on ginger in Egypt.
Regarding tariff issues, Brazilian exporters have a competitive edge due to the Mercosur-Egypt free trade agreement. Currently, the tariff applied to Brazilian products is 0.5%, while the main competitors pay 2%.
The root was not included in the decree signed by Egyptian Prime Minister Mostafa Madbouly, who announced last week the waiver of import tariffs on several products such as poultry, dairy, teas, and oils.
Therefore, Brazilian ginger follows the tariff reduction schedule of the Mercosur-Egypt free trade agreement and is expected to drop to zero by September 2024.
Read more: Egypt waives tariffs on imports of poultry, other foods
The study reports that Brazilian exporters have a good reputation for selling black pepper to Egypt, and ginger producers could benefit from this image. “However, commercial promotion actions will be necessary to increase sales of Brazilian ginger in Egypt. Participation in trade shows, B2Bs, and meetings with Egyptian businesspeople would be fundamental actions for Brazilian ginger exporters to access this market more assertively,” declared Mohana.
Translated by Elúsio Brasileiro
