Fresh Fruit Packaging Facilitates Egyptian Exports
Unipak Nile designs corrugated fresh fruit packaging for the rigorous standards of European and UK supermarket giants.
Last year, Unipak Nile launched a product development initiative, after evaluating the country's agribusiness market. The Egypt-based corrugated plant found that exports of oranges and table grapes were being hindered by such barriers as compensation claims from crushed boxes and varied packaging requirements of international supermarket chains.
"When we met with the fruit exporters, we realized immediately that we could help increase their exports simply by supplying them with packaging that performs. Packaging that both protects their products and that meets the expectations of international supermarkets," explains Emile Boustany, Export Manager.
Unipak Nile responded by developing several new products for the fresh fruit industry. New citrus boxes have brought growers increased customer satisfaction and savings on compensation claims. Table grapes, in new packaging units and an updated palletizing mode, can now be distributed directly to retail points of sale.
The Case of Exporting Oranges
Last year, Unipak Nile approached Al Wadi, one of three companies which control 78% of Egypt's export citrus market. 1
The company's 15-kg orange boxes - bulging from overfill and tied with straps - were difficult to export. Damaged oranges at destination were costing the company not only profits but also credibility and opportunity for growth. Compensation claims were far exceeding the 30 piasters / box Al Wadi was saving.
Unipak Nile's product development staff visited Al Wadi's packing and sorting facility before redesigning optimum box sizes and structures for 15 kg and 25 kg.
These new boxes, which are slightly more expensive, have proven stronger and more reliable than Al Wadi's previous packaging. 'No complaints' is an achievement for an industry that exports up to 35 million boxes of oranges annually,2
a number which is set to grow substantially.
Grappling with Grapes
In addition to citrus exporters, Unipak Nile found
other Egyptian fruit exporters - such as table grape growers - prone
to packaging-related difficulties as well.
Egyptian exports of table grapes have increased nearly seven-fold
between 1998 and 2003, from 2200 tons to 14,000 tons 3.
To the UK, as well, growers are shipping early season (March to
May) table grapes. Egyptian producers have the potential to rival
Spanish growers, for whom the UK represented a market volume of
20,000 tons and a value of $21.7 million in 2002.4
Last year, Unipak Nile invested in two impregnator machines especially
for table grape boxes. Impregnator machines use paraffin wax to
permeate the fluting of the corrugated box, which waterproofs the
layer. Boxes last longer in the humidity of coolers and pre-coolers
during storage and shipping.
Previously, grapes were packed in 5 kg and 9 kg packages and shipped
from Egypt to packaging stations in Europe and the UK. Exporters
paid these stations to break down and mix pallets with varying packaging
sizes, as dictated by supermarket giants.
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Fresh strawberries currently in season are packed similarly
to table grapes - in different size containers in staggered
rows on pallets. |
Mixed pallets – or half pallets of one size box – were
then delivered to the supermarkets, such as Sainsbury's and Safeway
in the UK and Carrefour in France.
After meeting with growers, Unipak Nile’s strategy concentrated
on rethinking packaging sizes and exploring different palletizing
modes. This approach could allow growers to meet the specifications
of the supermarkets, while cutting out the need for “middle
men” packaging stations.
For the spring 2005 season, Unipak Nile's corrugated solution lets
Egyptian growers pack table grapes in their own packing stations.
It features four rows of five (5) kg packs and four rows of nine
(9) kg packs, all stackable and interlocking, on the same Euro pallet.
Grapes can then be shipped directly to the supermarkets.
Trends indicate that packaging for short shelf-life foods, like
fresh fruit, will continue to favor corrugated materials, which
are environmentally friendly and ideal for branding. The Egyptian
corrugated industry recently benefited from 20% to 12% customs duties
for kraft and imported paper, an initiative arising from private
sector-government cooperation.
This advantage, along with innovation of suppliers, will continue
to facilitate Egyptian exports. Europe and the UK likely remain
the target destinations, with foreign growers supplying up to 90%
of available fresh fruit. 5
Company Background
Egypt-based Unipak Nile Ltd. converts
virgin and recycled raw materials into 48,000 metric tons of corrugated
regular slotted containers (RSC), die-cut boxes, and promotional
displays each year.
From its 38,000 m2 facility, the converter supplies agricultural
and fast food industries in North Africa, the United Kingdom, and
Europe. Unipak Nile was established in 1998 and ISO 9000-2000 certified
in May 2003 by the British Standard Institute.
Address: 6th of October City, Industrial
Zone 5, Street 2, Plot 49, Giza, Egypt
Tel: +20 -2- 833 6344 to 833 6351
Fax: +20 -2- 833 6298 / 833 6352
E-mail: info@unipaknile.com
References
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(product,
variety, size class, quality grade)