Development Stages in the Domestic Egyptian Dairy Industry

Dr Sherif Anis 0122-314-7090CFI & MPOC Seminar 25 July 20171
Dairy Science Department
Faculty of Agriculture
Cairo University
25 July 2017
Dr. Sherif Anis
Professor , Dairy Science
Food & Dairy Consultant
Development Stages in the
Domestic Egyptian Dairy Industry

Let us Brief Up the Story
Of Development Stages
in Few Slides …….
Domestic Dairy
in
Egypt

Dairying in Egypt
is a Very Old Experience ….
Cheese
Grain-Stone
Fossils
Dairy Industry in Egypt is a Mankind-Old (B.C.)

Up to Early
Selling Milk Directly from Cows,
was Normal in the Streets
Boiling

Still; Some Unhygienic Ways
of Raw milk Transportation are adopted

Still; Street Raw milk is Sold !!!
Unhygienic ways of Raw milk Handling !

Still …. Using Humble Village dairy (Obsolete) Practices
Butter churning
Containers of
Natural Souring
Butter

Same Traditional Kareish Cheese Still Ongoing !
Mesh Cheese

Still ……We Suffer from Low Quality Cheese
Made in Unlicensed Locations !!!!
 Low quality Powder milk mixed with Low quality raw
milk (Containing illegal preservatives such as :
(Formalin, H2O2, Meta-bisulphites,Ammonia ….etc.)
 Taking Cream out !!!!!
 Adding Starch, Gelatin !!!
 Camouflaging Flavors
 Carbonates
 Cheap Stabilizers
 Cheap Emulsifiers
Laundry
Cheese !!
Reduced
COGS
Inferior Quality Product

However, Raw milk Cycle In Egypt
is Still Quite Random !!!!!
Producer (Farms)
Collection Dealers Small
Centers Factories
FACTORY
Consumer

YET…
There is HUGE and
Remarkable Development
In The Domestic
Dairy Industry In Egypt

Misr Milk & Food Company (Manpower Institute)
- 9 Factories
- Many small and big milk
Collection Centers
- Good Fleet supply chain
- Almost : All dairy products
- Hundreds of Outlets
As a matter of fact, Actual industry started in the 60’s

Pioneering Companies
 Milky Land
 Juhayna
 Domty
 Elmisrieen
 Enjoy (Dolci)
 Dalla (Nubariah)
 Green Land
 Faragalla
 Sadafco
 Sakr
 Arab Dairy (Panda)
 Katilo
 Dina Farms
 Labanita
Then Modern industry started in the 80’s
Milky Land

Some International Brands are NOW in Egypt :
 Nestle
 Arla
 Al Marai
 Danone
 Campina
 LaVache quirit
 Kraft
 ….. etc

1- More Focus on Milk Collection Centers (Hubs)
SmallBig
Some Features of Development Progress
Quickly ……

2- Better Raw Milk Transportation

3- Many Good Medium-Size Factories
Mainly :
2 Cheese Types

Domiati Cheese (FETA)
The Main Soft Cheese in Egypt
Famous

Ras: The Main Hard
Cheese Type in Egypt
Ras Cheese (We Call it Roomi )
(Similar to Kefalotere Cheese)
Dr Sherif Anis 0122-314-709019 CFI & MPOC Seminar 25 July 2017
Famous

4- Many Modern & Multi - Products Factories

5- UF Introduction to Feta Cheese Making

6- Many Cheese Varieties are now Available

7- Also, Introduction of New Cheese Categories
Low Salt cheese (Light)
Vegetable Oils Involvement
Low Fat and Fat-Free cheese
Flavored cheese
Spreadable cheese types

8 - UHT Expansion (Tetra Pak & Combibloc)

Tetra Pak
Combibloc
Elopak

9 – Using Almost all Types of Caps / Closures

10 – Production of Economic UHT milk Pouches

11 - Also, Packaging in Plastic Bottles
HDPE and PET

12 - Many Healthy Fermented Products

13 - R & D : New Products Innovations
 Many Functional Food products
 Probiotics and Prebiotics Introduction
 Wide range of Flavored dairy products
 Research on Encapsulation and Nanotecnology
 Realizing some Omega products
 ……. etc

and ….. Lots of Ice cream Products

Dairy Business Figures
and Statistics
in Egypt
Now….Egypt Dairy Industry in Numbers

1) Investment in dairy is more than 4 - 5 EGP Billion
2) Dairy Market Size is Almost 400 - 500 EGP Billion
3) More than 200 Medium to Big Factories
4) Small dairy Labs are more than 4000 !!!!!!!!
5) Dairy-Self Sufficiency in Egypt is around 70-75 %
We mainly Eat Milk rather than Drinking
15-20 % 80-85%

Per capita Consumption
is Very low In Egypt !!

Raw Milk Production in Egypt
Total Around 5.5 Million Ton
Cows
Buffaloes
Thanks to Dr Reda Abdel Galil

- About 50% of the produced milk is used for cheese making,
- 80% of cheese is still produced in the Traditional Way.
- 80% of cheese is made out of RAW milk !!!!!
- Drinking Milk Sales increased by 19% in 2016.
- In 2015, Juhayna dominated Drinking Milk Market (46% MS)
- Same year, Arabian Food Industry (Domty) led cheese,
Recording a MS of 10%.
- In 2016, Yoghurt and Sour milk Products Grew by 18%.
Present Status of Dairy in Egypt

Average Production in Egypt 2015 - 2016
Soft cheese
50%
Hard
cheese
8%
Processed
cheese
12%
UHT milk
30%
Sales
80,000Tons
500,000Tons
120,000Tons
300,000Tons
9% Growth in 2016
(Seems to be )
50
30
8
12

Generally : Raw milk is Comparatively Expensive in Egypt

Cheese production in Egypt
Growth of 9 % in 2016

Channel Split
Dr Sherif Anis 0122-314-709040 CFI & MPOC Seminar 25 July 2017
Dairy Regional Split
Dairy Market Overview in Egypt
Mainly
Small
Shops &
Groceries
Mainly
Cairo &
Alex.

Egypt is the Biggest White Cheese Market
for Tetra Pak (World wide)

Egypt is a Main Cheese Exporter

Number of Dairy Farms

Quick SWOT ANALYSIS Of
Dairy Industry in Egypt
&
Recommendations

Strengths
Cheap Manpower
Availability of Technical Skills
Comparatively Cheaper Energy
Growing Local Demands
Raising Cattle is an Old Practice
Traditional Products are well known
Good Chances for Exporting
New Investment Law Advantages
Bank Loans are more easy : STL, MTL, LTL

Weaknesses
Low EGP Purchasing Power
Low Currency Value of EGP
High Cost of RM & PM
Fragmentation (Scattered) of Animal Wealth
Animal Feeding problems (Cost & Quality)
Milking Automation is not well-practiced
The need to Upgrade Animal Breeds
Loose milk (Street milk)
Lack of Consumer Health Awareness
Below-Average Logistics
The Cooperative Systems are Absent
No Governmental Support
Some Legislation Weaknesses

Opportunities
Increased Raw milk Production
Modern Technology is available
Infra Structure is going Better
Marketing Channels have been Improved
Improved Hygiene Standards
Establishing Cooperative Societies
Good Training Programs
Privatization is Generally Encouraged
Improved Consumer Awareness

Threats
High Cost of inputs and Custom Duties
Cost of good Breeds is very high
Rapid changes in worldwide Technology
Licensing Measures are Not that Tight
No Government Strong Subsidy
Quality and Safety Controls are Weak !
Some markets Banning (i.e. Europe)
Most of RM and PM are Imported
Market Dumping from some Countries

Consumption & Market trends
Status & Recommendations
 Better Control on the Manufacture of cheese from Raw Milk
 A ‘ Code Of Practice ’ needs to be developed to ensure the Safe Manufacturing
 An Education Campaign needs to be delivered to the Consumer
 The Marketing , Branding and Promotion of Egyptian’s traditional cheese to
improve its Competitiveness in both Domestic and International Marketplace .
 Research on New and traditional Packaging Options for our Artisanal Products
will also have a better effect on the way of cheese Distribution.
1 / 3

Consumption & Market trends
Status & Recommendations
 Encouraging the investment in medium and big milk Farms
 Creating good link between Industry and Academic Research centers
 Activation the Supreme Committee of Food Safety (Newly Established)
 Solutions to Minimize industryWastes
 More focus on Buffaloes improvement (Qualitatively and Quantitatively)
 Utilizing the Idle Capacities in existing Factories
 Upgrading and improving raw milk Collection and Cooling Dynamics
 More Investments in RM and PM local manufacturing
2 / 3

Some Legislation weaknesses in soft Cheese SPECS
 Egyptian Standards 1008-12/2005
Must be amended :
- Precise Minimum Protein Content
(Not as an Advice : to be around 10 %)
- Precise Maximum Lactose Content
(Not as an Advice : to be around 4.5 %)
- Specifying the allowed Preservatives
( Not the non allowed !! )
Status & Recommendations 3 / 3

This is My point of view,
I might have Not Considered someValid issues
I am sure that most of you have
More Fruitful Points to Enrich
the Industry Portfolio………
(((( This why people always MEET … ))))
My Last Slide

Best Regards : Sherif Anis
sherifanis@hotmail.com
Mobile +20-122-314-7090

Development Stages in the Domestic Egyptian Dairy Industry

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