City Farm, an Egyptian business known for exporting frozen vegetables to the US, is embarking on an ambitious expansion strategy. This plan is to expand its market reach, starting from Kenya and expanding to 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 the European markets will be by establishing representative offices in key countries such as Germany, Belgium and the Netherlands.
Lamei reviewed the company’s significant achievements in the US market in various states in recent years. Building on this success, City Farm now aims to diversify its revenue streams and establish its presence in additional foreign markets, with a particular focus on Europe.
The company has strategically chosen to launch its European venture in markets with significant Arab communities, such as Germany, Belgium and the Netherlands. After achieving the set sales targets, City Farm plans to consider further expansion into Europe.
Lamei is optimistic that this growth initiative could potentially boost the company’s overall sales goals by about 30% from the $50 million projected at the beginning of the year.
He highlighted the journey of City Farm, which began in 2021 with the supply of products to the American market. The company’s annual sales have seen steady growth, from $28 million in its inaugural year to $35 million in 2022, and reached an impressive $50 million last year.
City Farm’s export catalog includes a variety of Egyptian agricultural products, targeting states across the US, including New York, New Jersey, Florida, Chicago, Texas and Michigan. The variety includes mallows, okra, taro, spinach, falafel, green beans, vine leaves, bottled juices and peas.
Lamey noted that the company’s export capacity from Egypt is about 1,300 tons per year. In line with government policies aimed at increasing foreign exchange reserves, efforts are being made to improve this number.
The CEO also reported that City Farm’s total investments amount to $250 million, including annual sales and transportation assets. The company uses the ports of Alexandria and Damietta to transport goods to the US, which are then picked up at the ports of New York, New Jersey and Florida.
The US market is of significant importance for Egyptian food products, ranking as the second largest importer of Egyptian food in 2022, with imports worth $4.2 billion.
Lamey expressed confidence that the increase in export volumes is due to the strategic export of surplus crops, especially vegetables and fruits. The company is actively promoting its products in foreign markets and is exploring opportunities in the regions of Africa, East and South Asia, as well as selected countries in Latin America.