Pilot production of grafted vegetable seedlings

• Project location: Belbeis, Egypt
• Consortium: Grow Holding BV, Libra Biodynamic Agriculture Co. SAE
• Project budget: Euro 1.2 million
• External financing: 50% grant funding by PSOM
• Project period: July 2006 - June 2008

Abstract
Egypt has a high potential in the agricultural sector. The warm but moderate climate allows up to 3 growing seasons per year, which fit in well with the European off-seasons. The relatively low production and infrastructural costs in Egypt make the country competitive compared to other regional exporters.

These promising conditions are constrained by a lack of technical development of the agricultural sector. In particular, the intensive greenhouse and vegetable sector needs to adopt technological solutions such as grafting to overcome current constraints.

A major problem is that vegetable nurseries are not up to required standards. Most of the large exporting producers have to decide either to invest into their own nursery or to use existing external nurseries, who face problems due to low germination rates, uneven growth and sometimes infected plants, which in the end lead to relatively high production costs and lower yields.

In order to provide an alternative to these existing, unsatisfactory nurseries, the new JV El Mizan will offer a reliable plant nursery and grafting service for export oriented greenhouse and vegetable producers. The advantages of grafting extend from the control of some soil borne pathogens like root rot, viruses and fusarium to growth promotion, yield increase, low / high temperature tolerance, extension of the growth period and improvement of fruit quality. The technique is widely used in the EU and some Southern Mediterranean countries including Morocco, specifically for the production of tomatoes and peppers. The principle of grafting is to use a vigorous rootstock with high absorption and transport capacities, to provide the chosen plant variety with the required water and nutrients. This combination of a vigorous rootstock and a strong variety leads to an increase in production of up to 10% as well as improved quality and reduced infection.

Although grafting is time-consuming and requires substantial technical experience, developing countries such as Brazil, China, and Mexico are starting to give the technique more attention to keep their position in the international market. Grafting is used in Egypt for fruit tree seedlings but is not yet used commercially for vegetable seedling production.

The new JV will raise plants to provide Egypt’s vegetable producers with healthy and profitable in- and outdoor seedlings and grafted seedlings. El Mizan will graft and raise plants in modern greenhouses under the supervision of experts from Grow Group. Through following the latest phytosanitary and agricultural standards and implementing grafting technology, El Mizan will provide more profitable plants to their clients.

The total Egyptian seedling market of the six major crops (cantaloupe melon, cucumber, aubergine, pepper, tomato, watermelon) is over 3.5 billion seedlings per year. El Mizan has chosen 7 key producers, including its shareholder Libra, (a member of the Sekem Group), as customers for the first pilot year with a total seedling requirement of 6 million seedlings in 2006 and an annual growth of 15-20%. These producers are well known exporters of organic and conventional crops named above. 

El Mizan will start its business by providing plant raising and grafting services to these companies. The plan is to graft about 50% of the group’s required seedlings during the first 3 years, and at the same time regularly raise up to 50% of the required plants as well. That means that until the year 2008 El Mizan will graft up to 4 million seedlings for its seven key customers. Furthermore, El Mizan expects that the success achieved in the first 1-2 years coupled with further promotional activities, will result in more producers trying out the new technology of grafted plants and become customers of El Mizan, which in the meantime will increase the number and varieties of its grafted plants.