Makro Egypt, a unit of Metro Group, one of the largest international retailing companies, has announced plans to export EGP 42.8 million ($7.2 million) worth of Egyptian produce under a special program.

The export program, aimed at supporting local farmers and suppliers in exporting to international markets, is part of a global initiative undertaken by Makro Egypt’s mother company, Metro Cash & Carry, a sales division of the Metro Group.

To help launch the project in Egypt, Metro Cash & Carry has designated a representative reporting to the group’s trading office in Turkey to ensure that local suppliers are able to export to Metro Group countries, said a senior officer.

“In the program’s first year, we will start with the exportation of around 500 tonnes of grapes, before expanding our focus to other fresh produce. In total we expect that these exports will generate revenues of EGP42.8 million,” said Francois Oliver, managing director of Makro Egypt.

“Despite recent political changes we still believe that our expectations are realistic. Egypt’s agriculture sector has developed substantially in past years and now with the implementation of our Farmers Project, we are supporting small-scale farmers to compete on the international level," Oliver noted.

"To be able to give these individuals this opportunity to compete at this level is not only important in developing the agriculture industry, but also crucial to providing new stimulus to the Egyptian economy," he added.

The program, with initial focus on the export of grapes, started at the beginning of the fruit’s season in spring and an agreement with Metro Cash & Carry Germany has been finalized under which the country will receive 6 containers of grapes, each averaging approximately 20 tons in weight.

Additionally, negotiations with Metro Cash & Carry Russia and Ukraine are underway and once deals are concluded, it will bring the number of export containers up to 15, generating revenue of EGP 13 million.

The first Metro Trading Office was established in Valencia, Spain two years ago, and since then the sourcing program has experienced vast success across all the markets in which it has been implemented.

In the near future, Makro Egypt will be expanding the export program to include pomegranates and citrus fruits, with the long term aim of supporting all qualified participants in the Farmers Project with tools to export and compete internationally.

Since the Farmers Project started in early 2010, Makro has worked diligently to support Egypt in developing its supply chain.

The project which is co-financed by Makro Egypt, the Dutch Embassy and the International Centre for Modernization has trained over 440 farmers in agricultural best practices.

"This year it will be certifying 10 farmers in international GlobalGap farm standards. All certified small scale farmers will then have the opportunity to compete on even footing on the international level," said Oliver.

"Once Egypt reaches its export target by year end, a full fledged Metro trading office will be setup. Makro expects revenues from Egypt’s exported produce will increase substantially in the coming years," he added.

Metro/Makro Cash & Carry is represented in 30 countries with around 700 self-service wholesale stores. With more than 100,000 employees worldwide, the company achieved sales of about 31 billion euros in 2010.-TradeArabia News Service