Tuesday, October 27, 2026

Egypt’s Sugar Byproduct Exports Surge 54% as China Becomes Top Buyer.

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CAIRO — Egypt’s exports of sugar-processing byproducts jumped 54% to $176 million in 2025, according to the Food Export Council (FEC), as China overtook Spain to become the country’s largest buyer, highlighting a growing source of export earnings for the agricultural processing industry.

The council said Egypt exported approximately 889,000 metric tons of beet pulp, sugarcane bagasse and related residues, retaining its position as the world’s second-largest exporter in the category with an estimated 20% share of global trade.

China accounted for $46 million, or 26% of Egypt’s exports, followed by Spain at approximately $24 million, Ireland at $21 million, South Korea at $16 million and Italy at $13 million.

The shift in export destinations follows an earlier period in which Egyptian suppliers redirected some shipments away from China towards markets offering more attractive prices, according to previous FEC reporting. China’s return as the largest buyer illustrates the changing geography of demand, although the available figures do not establish whether prices, purchasing volumes or new contracts drove the reversal.

The five largest markets accounted for about $120 million, or 68% of the sector’s exports, leaving suppliers exposed to changes in demand among a relatively small group of overseas buyers.

Export Growth Meets a Profitability Test

Egypt’s export volumes rose from approximately 642,000 tons in 2024 to 889,000 tons in 2025, an increase of about 38.5%, based on the council’s figures.

With export earnings rising faster, average revenue per ton increased from approximately $178 to $198, or about 11%. The improvement indicates higher average export realisation, but does not establish whether it resulted from changes in selling prices, product mix or other factors.

Financial results from Delta Sugar, one of Egypt’s major sugar producers, illustrate the distinction between rising sales and profitability.

The Egyptian Exchange-listed company reported revenue of approximately EGP 8.58 billion in 2025, up from EGP 4.72 billion a year earlier, according to its audited results. Yet it recorded a net loss of EGP 526.1 million, reversing a profit of EGP 1.26 billion in 2024.

The company cited pressure from lower domestic sugar prices, higher beet procurement costs, financing expenses and inventory valuation adjustments. Its losses relate to the wider sugar business and do not establish whether exports of sugar-processing residues were profitable.

Separately, local financial reporting said Delta Sugar’s sales of beet-processing byproducts reached approximately EGP 1.5 billion during its latest reported production season, up 20% from the preceding season. The reported sales covered beet pulp and molasses, which should not be treated as identical to the customs category used for Egypt’s national export statistics.

Where Investors May Find Value

The distinction matters for investors assessing the sector. Beet pulp is used in livestock feed, while bagasse can provide feedstock for paper, packaging and other industrial applications.

Capturing more value from these materials can require investment in drying, pelletising, storage and transport infrastructure. Such costs affect margins even when overseas demand is rising.

Energy efficiency is particularly relevant to beet-pulp processing because drying wet residues requires substantial heat. Storage also helps exporters manage the gap between seasonal production and year-round international demand.

For processors, the opportunity lies not simply in selling more byproducts but in improving the value retained after production, handling and logistics costs.

The Outlook for Exporters

Egypt had already ranked second globally in the category in 2024, according to the FEC. Its reported global share rose from 18% to 20% in 2025, making the increase in export earnings and market penetration more significant than the ranking itself.

The council’s figures differ from those published through World Bank WITS using UN Comtrade data for customs category HS 230320. The available records do not establish the precise reason for the discrepancy, so the $176 million total and global ranking remain attributed to the FEC.

For investors, the sector’s performance presents both an opportunity and a test: growing international demand is increasing the commercial value of sugar-processing residues, but sustainable returns will depend on cost efficiency, reliable supply and the ability to serve a broader range of export markets.

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