1. Overview of Kabuli Chickpeas in Egypt
Egypt’s market for Kabuli chickpeas is segmented primarily by usage, with varying import sources and consumption patterns. The market is characterized by different preferences based on chickpea size and the intended use, from traditional dishes to salads and plating.
2. Market Segmentation
80% B90 Size: Mainly sourced from Russia, used predominantly for Koshary (a popular Egyptian dish). Annual imports range between 30,000 and 40,000 tons.
15% OZ / Canada / Turkey: Primarily for salads with annual imports between 5,000 and 8,000 tons.
5% Large Size: Used for plating or other high-end presentations, with annual imports between 1,000 and 3,000 tons.
3. Buying Patterns
Harvest Season Purchases: Buyers typically procure 20-30% of their annual needs during the harvest season, which is a strategic move to secure lower prices and ensure supply.
Seasonal Consumption Trends:
Winter Increase: Consumption of Kabuli chickpeas increases during the winter months due to higher demand for warming, hearty dishes.
Ramadan Surge: Consumption rises by 10-15% during Ramadan, driven by increased use in traditional dishes and special meals.
4. Import Duties
Duty Rates: Import duties for Kabuli chickpeas in Egypt apply uniformly across all sizes and origins, ranging from 2% to 5%. This relatively consistent duty rate helps stabilize pricing across different types of chickpeas.
5. Strategic Insights
1. Import Strategy:
Focus on Sourcing: Given the dominant use of B90 size chickpeas from Russia for Koshary, maintaining strong supplier relationships and securing competitive pricing for this size is crucial.
Diversify Sources: For salads and plating, consider diversifying sources beyond OZ, Canada, and Turkey to optimize costs and ensure quality.
2. Seasonal Adjustments:
Plan for Winter: Anticipate higher demand during winter and adjust procurement strategies accordingly to avoid shortages.
Prepare for Ramadan: Increase stock levels ahead of Ramadan to meet the anticipated 10-15% rise in consumption.
3. Duty Management:
Cost Management: Since import duties are consistent across all sizes and origins, focus on negotiating better prices with suppliers and optimizing logistics to manage overall costs effectively.
6. Recommendations
1. Supplier Negotiations: Strengthen partnerships with Russian suppliers for B90 size chickpeas and explore opportunities with new suppliers for other sizes to improve cost efficiency and quality control.
2. Inventory Management: Implement robust inventory management practices to align with seasonal demand fluctuations, particularly during winter and Ramadan.
3. Market Analysis: Continuously monitor market trends and consumption patterns to adapt procurement strategies and maintain competitiveness in the market.
This report provides a detailed analysis of Kabuli chickpea market dynamics in Egypt, including import patterns, consumption trends, and strategic recommendations for market participants.
