By Grace Samuel
City Farm, a popular Egyptian enterprise that exports frozen vegetables to the US, has announced an ambitious expansion strategy aimed at broadening its market reach.
City Farm exports a variety of goods from Egypt to the US, including molokhia, okra, taro, spinach, falafel, green beans, grape leaves, bottled juices, and peas.
The plan begins with Kenya and extends to the European continent. The strategy involves diversifying its product range and increasing land reclamation efforts.
CEO of City Farm, Mahmoud Lamei, disclosed that the company’s expansion into European markets will be led by establishing representative offices in key countries, such as Germany, Belgium, and the Netherlands.
Lamei, who noted City Farm’s significant achievements in the American market across various states in recent years, said to build on this success, the company is now planning to diversify its revenue streams and establish a presence in additional foreign markets, particularly in Europe.
He said for its European venture, City Farm has strategically chosen to focus on markets with significant Arab communities, such as Germany, Belgium, and the Netherlands. Once they achieve their sales targets, the company plans to consider further expansion within Europe.
He also expressed optimism that the growth initiative can potentially increase the company’s overall sales targets by about 30%, up from the $50m forecasted at the beginning of the year.
He highlighted City Farm’s journey, which started in 2021 with the supply of products to the American market. The company’s annual sales, he said, have steadily increased, from $28m in its first year to $35m in 2022 and reached an impressive $50m in the previous year.
Reports have it that City Farm’s export catalog features a variety of Egyptian agricultural produce, catering to states across the US, including New York, New Jersey, Florida, Chicago, Texas, and Michigan.
Lamei believes that this growth initiative has the potential to increase the company’s sales targets by 30%, which will help the company to achieve greater success.
Lamei further stated that the company’s export capacity currently stands at around 1,300 tonnes per year, but they are working to increase this amount in line with government policies aimed at boosting foreign currency reserves.
City Farm has invested a total of $250m in assets, including annual sales and transportation. The company uses the ports of Alexandria and Damietta to ship goods to the US, where they are received at the ports of New York, New Jersey, and Florida.