Agro Star Group is seeking to increase its sales this year by 10% through opening new markets by increasing its exports, especially, in East Asia. Namely, Agro Star operates in the field of importing and exporting grains.
Agro Star is also working on marketing Egyptian companies abroad to help open new markets.
The company deals with about 40 clients domestically and imports from 25 clients from foreign markets.
Agro Star General Manager Mohamed Samir said that the company is looking to grow its total sales up to $12.2m compared to $11.6m last year.
He pointed out the change in annual rates, which are based on the global market conditions and product prices, which are fluctuating continuously based on supply and demand. Last year, the company targeted a 20% increase in sales, however, the decline in prices of some products prevented the company from reaching that goal.
The company’s exports are estimated at 10,000 tonnes annually, while the imports are at 5,000 tonnes. Its annual rates are equally divided between local exports and sales.
White beans, dried Egyptian beans and rice, in addition to other medicinal and aromatic products—such as coriander, fennel, and anise—are considered some of the most prominent products exported by the company.
Agro Star exports about 6,000 tonnes of white beans, and 2,000 tonnes of herbs and aromatic plants. The remaining quantities include various other products.
Samir added that the company gives substantial attention to the European market in terms of its grain and herb exports, as it accounts for 70% of the company’s total exports, followed by India in second place, and Arab countries in third place.
The company allocates 70% of its grain imports to the local market, then it re-exports the remaining amounts to markets that need them, based on the best prices offered.
Agro Star also imports several products from other countries, in order to re-export them again to markets that have problems with importing, such as the United States and Argentina.
The company also imports several products such as lentils, cowpea, popcorn, pulp, zucchini, and some aromatic herbs obtained from Syria.
The products imported by Agro Star are not produced in Egypt in large amounts, he noted. The current variety does not suit overseas consumer tastes.
Samir further elaborated that the company aims to significantly compete this year after the depreciation of the pound against the dollar following the liberalisation of the exchange rate, which took place in November 2016.
Noteworthy, the Egyptian agricultural products have a good international reputation and there is a lot of demand on them by consumers abroad, he pointed out. Additionally, Egypt is renowned for its geographic location in the midst of world markets, which makes its competition strong price-wise.
Samir also added that it is important to work in order to produce non-traditional crops demanded by foreign markets, as this will allow the Egyptian market to be seen in a new perspective.
Meanwhile, international research plays a major role in this, as developing the ability of agricultural lands to produce better quality products, and developing new seeds with increased productivity, is something the country must pay more attention to over the upcoming period, he said.