Egyptian food exports are hitting new heights. However, serious regulations are needed to sustain the ambitious growth, reports Sherine Nasr Egyptians must be big food lovers. Statistics show that an average Egyptian family spends at least 50 per cent of its budget on food. The value of food bought in the Egyptian markets is estimated at LE100 billion a year. Egyptian food exports, too, are growing steadily and are gaining more markets than ever before. During the first half of 2007, for example, food exports increased by 40 per cent compared to the same period the previous year. "In 2001, food exports were estimated at LE250 million. Exports have since grown steadily to LE5 billion," said Tareq Tawfiq, chairman of the Food Export Council, during a seminar organised by the Egyptian Junior Businessmen Association (EJB) that was recently held in Cairo. Tawfiq added that this year, food exports are expected to hit LE7 billion, while the council is planning for LE11 billion of exports by 2010. However, unless there are clear-cut regulations to monitor the quality of food products, whether for local use or for export, it will be hard to sustain these ambitious figures for long. "The open markets, the fierce competition and an increasingly demanding consumer make it vital to abide by international standards," said Safwan Thabet, chairman of the Chamber of Food Industry (CFI). Unfortunately, except for a few brand names in the market, the source of the majority of food produced in Egypt is anonymous. "Although we do not have exact figures, it is estimated that at least 80 per cent of the volume of food traded in markets cannot be traced to its original source," said Thabet who added that this is the way to lose the trust of consumer, and have a negative impact on health, industry and tourism at large. No other industry has as many official bodies to monitor its different industrial stages. Nor does any other industry have as many regulations and laws. According to Mohamed Shoukri, deputy chairman of the chamber, monitoring food products is a responsibility shared by at least eight ministries in Egypt. "It's hard to believe, but the industry is governed by 20 laws, 13 presidential decrees, 84 ministerial decrees in addition to some 120 royal decrees that were issued half a century ago and are still valid," said Shoukri. These exaggerated precautions, however, have failed to allow the government to adequately regulate the industry, nor have they managed to eliminate the mushrooming of completely unregulated food industries which have almost become the norm. The situation has become critical. The lack of a certified database on food industries in Egypt has made things even worse. According to Shoukri, official bodies cannot even agree on the number of factories that exist in Egypt and while one supervising body talks of 2,451 food factories, another states there are no less than 14,000 factories. Nevertheless, unregulated does not necessarily mean unhealthy. "Because a product is homemade does not necessarily mean it is unhealthy. Home producers in Egypt have to have a platform to address their needs and solve their problems," said Rachid Mohamed Rachid, minister of foreign trade and industry. He added that time has come to upgrade, rather than try to eliminate, these random industries so that they can abide by international standards and contribute positively to one of the fastest growing industries in the country. "Cottage industries have always existed in all countries and have made an important contribution to the industry and the total economy at large." Rachid could not be more correct. The concept "from farm to fork" is widespread worldwide, while in Egypt, cottage industries play a major role in satisfying the growing demand for fresh produce, poultry, milk products and meat. Thanks to Avian Flu, for example, the government studied the poultry situation and discovered that the bulk of poultry produced in Egypt is free-range rather than farm-bred, which is healthier and safer. "It is the unregulated trading rather than the unidentified food origin that creates the problem," said Rachid who added that certain regulations are needed to govern the way food is transported and traded both here and abroad. As owners of major food factories are also members of the EJB, some practical solutions have been suggested by the association to correct the situation. "It is time to establish an Egyptian national food authority to implement proper systems for monitoring and unify regulations governing the industry," said Ashraf El-Gazayerli, EJB board member and Food and Agriculture Committee member. A steering committee has already been formed to supervise the establishment of the authority. Denmark, a major food export country, has been chosen as the best model to follow. "The authority will be the sole official body to have the right to regulate and monitor the food industry. Representatives of all concerned supervisory bodies will be represented in the authority," said Shoukri. This step should go along with other corrective measures. "These include the establishment of a bourse for basic food commodities and a unified food law to make sure we can get concrete results," said El-Gazayerli, who pointed out that these measures would help increase transparency in the market among producers and traders. It would also help stabilise the market and enable traders to find a mechanism to sign future contracts without running big risks because of price fluctuations.
