Egypt is promoting the export of non-traditional crops, including medicinal and aromatic plants, with the aim of increasing income in foreign currency.
However, one study says that the rate of expansion in production is not aligned with world demand and export quantity.
“Analytical study of the competitiveness of Egyptian medicinal and aromatic plants in the world markets,” published in June 2024 in The Journal of American Science, says Egypt’s contribution in world production of such plants is 2.3 per cent. The percentage of world demand for these crops is increasing by 19,000 tons a year, with a stable growth rate of five per cent, the study said.
The quantity of exports of medicinal and aromatic plants is limited. The percentage of Egyptian exports of medicinal and aromatic plants represents 5.7 per cent of total Egyptian agricultural exports, with an average value of $184 million in 2021, the study said, adding that “this is not commensurate with the productive and export capacities of Egypt.”
Moreover, the study showed that Egyptian exports have penetrability to world markets and price competitive advantages, particularly in Germany and the US. Germany and America import 22 per cent of Egyptian exports, with an estimated value of $361 million, it showed.
The study recommends that more work be done to increase Egypt’s share in these markets: enhancing the role of commercial representation offices, catering for consumer preferences, increasing investment in manufacturing to increase export opportunities, and implementing organic farming and biological control systems to augment export volumes.
In this framework the Egyptian Ministry of Agriculture launched the third session of the Medicinal and Aromatic Plants Festival in Fayoum recently in cooperation with the German Agency for International Cooperation (GIZ) as well as many governmental institutions concerned.
Head of the agricultural extension sector and national coordinator of the agricultural innovation project at the Ministry of Agriculture Alaa Azouz told Al-Ahram Weekly that medicinal and aromatic plants were considered an important and basic source of income for a large group of farmers, manufacturers and exporters and are essential for many industries of high economic value.
The ministry is constantly working on developing the sector according to the 2030 vision that includes a national project for developing the medicinal and aromatic plants sector, Azouz said, adding that the project also deals with producing new types of seeds that are accredited, disease and drought resistant and which are governed by export standards.
The Ministry of Agriculture and Land Reclamation, in cooperation with the GIZ, is also implementing the Agricultural Innovation Project (AIP) in the Beni Sweif and Minya governorates. The AIP implements a market control component which connect farmers to the market as well as where they can acquire their farming needs, buying from reliable sources at reasonable prices and at quality standards, all registered by the ministry.
Azouz said this ensures fair revenue for the farmers and increases the quality of Egyptian products. The plan also involves upgrading the efficiency of agricultural associations, he said.
AIP also focuses on productivity and innovation, as farmers are made aware of all types of advanced technology in their field. Digital solutions are another component in which farmers are trained on how to use mobile applications and social media platforms which connects them to markets, Azouz explained, adding that they also consult with farmers when need be.
The ministry provides the necessary financing for medicinal and aromatic plant projects in cooperation with Egyptian banks at a soft interest rate in support of this important sector, Azouz said. The project succeeded in increasing the income of 10,000 smallholder farmers in Minya and Beni Sweif. It has also linked small farmers and agricultural associations to manufacturing and export companies, with a fair mechanism for contracting and planting the idea of contract farming.
It also works to implement good agricultural practices that meet international quality standards to advance the production of medicinal and aromatic plants and to develop post-harvest treatments that include cooling, drying, sterilisation, manufacturing, packing, and storage. The plants are organic and chemically free.
Azouz said the plan also aims to create an agricultural map for the distribution of medicinal and aromatic plants in Egypt as well as creating a sound and accurate database, organising and rationalising the use of fertilisers and rationalising water consumption, as well as reducing production costs, reducing the percentage of crop loss, increasing farm income, and holding training programmes for farmers and agricultural engineers to build their capabilities to increase the production of high-quality medicinal and aromatic plants. It also facilitates procedures for exporting and introducing varieties.
“Egypt is famous for planting many medicinal and aromatic plants including mint, basil, camomile, and cumin. These are the major kinds of medicinal and aromatic plants from which many aromatic and medicinal oils are extracted,” says Azouz who added that these products are exported to many European and Arab countries.
Azouz said he was optimistic that the international market will expand for Egyptian medicinal and aromatic products because of high demand. “The prospect of a larger international market for Egyptian medicinal and aromatic products is great,” he says, adding this is one of their priorities. “In Egypt we have environmental and climatic conditions that are suitable for such plants, and we have a high production rate of these products, and our prices are compatible. In addition, we export our products during times of the year when they are not produced anywhere else in the world.”
* A version of this article appears in print in the 24 October, 2024 edition of Al-Ahram Weekly
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