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Dairy industry shapes up
Published in Al-Ahram Weekly on 03 - 09 - 2014

The Ministry of Trade and Industry has formed a special committee to ensure the quality and safety of local dairy products and increase exports to new markets that apply strict requirements for dairy product imports.
“We want to develop and modernise the dairy industry in Egypt and to bring it up to the quality that would be consistent with international standards,” said Minister of Industry Mounir Fakhry Abdel-Nour, speaking at a press conference.
Mohamed Shoukry, head of the Chamber of Food Industries at the Egyptian Federation of Industries (FEI) and a member of the committee, told the Weekly that the committee aims to boost exports of dairy products by 25 per cent.
He added that the committee plans to do everything possible to ensure that the manufacturing of dairy products meets EU requirements. Achieving this will also clear the way for Egyptian diary exports to enter the Russian market, which has the same requirements as the EU.
This would allow Egyptian exporters to capitalise on Russia's recent ban on food imports from the EU, including dairy products. Local exporters are hoping to replace the EU as suppliers of dairy products to the Russian market.
The EU has strict import criteria that involve inspections by the European Commission's Food and Veterinary Office and animal and public health standards.
It only allows the importation of raw milk and milk-based products from developing countries that have a high health status. A health certificate showing the traceability of the animal and released by an official veterinarian is also required.
“All of these requirements are not currently met by the Egyptian dairy industry as a result of the absence of a food safety body in the industry,” said Shoukry. “It will not be easy to remove domestic barriers against meeting these requirements.”
Mohamed Al-Damaty, head of the dairy products division at the Chamber of Food Industries, said that the only barrier that could hinder the committee's efforts was the need to ensure the traceability of the animals used in producing milk and milk products.
“The majority of Egyptian exports of dairy products go to Arab countries, but an opportunity to find other markets like Russia and the European Union should not be wasted,” Al-Damaty told the Weekly.
He said that Egyptian factories are ready for any increase in demand without needing more investment to expand. Investment in the Egyptian dairy industry is currently estimated at LE15 billion while its exports are estimated at LE3 billion.
However, Shoukry said that Egypt is currently suffering from a shortage of livestock because breeding costs are high and local demand does not encourage breeders to invest.
“This will immediately change once Egyptian dairy manufacturers expand into new markets and local breeders realise the benefits,” he said.
He also said that the committee plans to take whatever measures are necessary to ensure the entrance of Egyptian dairy products into the Russian market, while at the same time working with EU representatives to meet the bloc's requirements.


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