Subscribe

Don't miss any update with Africazine.

― Advertisement ―

spot_img
HomeAfricaCity Farm sets sights on Kenyan market for African expansion - Dailynewsegypt

City Farm sets sights on Kenyan market for African expansion – Dailynewsegypt

City Farm, an Egyptian enterprise renowned for exporting frozen vegetables to the US, is embarking on an ambitious expansion strategy. This plan is set to broaden its market reach, starting with Kenya and extending into the European continent. The strategy includes diversifying its product range and increasing land reclamation efforts.

Mahmoud Lamei, CEO of City Farm, revealed that the company’s push into European markets will be spearheaded by establishing representative offices in key countries such as Germany, Belgium, and the Netherlands.

Lamei reflected on the company’s significant achievements within the American market across various states in recent years. Building on this success, City Farm is now aiming to diversify its revenue streams and establish a presence in additional foreign markets, with a particular focus on Europe.

The company has strategically chosen to initiate its European venture in markets with substantial Arab communities, including Germany, Belgium, and the Netherlands. Following the attainment of set sales targets, City Farm plans to consider further expansion within Europe.

Lamei is optimistic that this growth initiative could potentially boost the company’s overall sales targets by approximately 30% from the $50m forecasted at the year’s outset.

He highlighted City Farm’s journey, which commenced in 2021 with the supply of products to the American market. The company’s annual sales have shown a steady increase, from $28m in its inaugural year to $35m in 2022, and reaching an impressive $50m in the preceding year.

City Farm’s export catalogue features a variety of Egyptian agricultural produce, catering to states across the US, including New York, New Jersey, Florida, Chicago, Texas, and Michigan. The assortment includes molokhia, okra, taro, spinach, falafel, green beans, grape leaves, bottled juices, and peas.

Lamei noted that the company’s export capacity from Egypt stands at approximately 1,300 tonnes annually. In alignment with government policies aimed at augmenting foreign currency reserves, efforts are underway to enhance this figure.

The CEO also mentioned that City Farm’s total investments amount to $250m, encompassing annual sales and transportation assets. The company utilizes the ports of Alexandria and Damietta for shipping goods to the US, which are then received at the ports of New York, New Jersey, and Florida.

The US market holds significant importance for Egyptian food products, ranking as the second-largest importer of Egyptian manufactured foods in 2022, with imports valued at $4.2bn.

Lamei expressed confidence that the uptick in export volumes is attributable to the strategic exportation of surplus crops, particularly vegetables and fruits. The company is actively promoting its products in foreign markets and is exploring opportunities in the African, East and South Asian regions, as well as select Latin American countries.