development stages in the domestic egyptian dairy industry

Dr Sherif Anis 0122-314-7090CFI & MPOC Seminar 25 July 2017 1

Dairy Science Department

Faculty of Agriculture

Cairo University

25 July 2017

Dr. Sherif AnisProfessor , Dairy ScienceFood & Dairy Consultant

Development Stages in the Domestic Egyptian Dairy Industry

Let us Brief Up the StoryOf 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 churningContainers 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

LabanitaDr Sherif Anis 0122-314-7090CFI & MPOC Seminar 25 July 2017 13

Then Modern industry started in the 80’s

Milky Land

Some International Brands are NOW in Egypt :

Nestle

Arla

Al Marai

Danone

Campina

La Vache 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 cheese50%

Hard cheese

8%

Processed cheese

12%

UHT milk30%

Sales


80,000Tons

500,000Tons

120,000Tons

300,000Tons

9% Growth in 2016

(Seems to be )

5030

812



Generally : Raw milk is Comparatively Expensive in Egypt

Cheese production in Egypt


Thanks to Dr Reda Abdel GalilGrowth 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 industry Wastes

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

[email protected] +20-122-314-7090

mailto:[email protected]