RESEARCH EGYPT & SAUDI ARABIA...This study focuses on two key Middle Eastern markets, Egypt and...

EGYPT amp SAUDI ARABIA

Copyright copy2012 USDEC All rights reserved

MARKETRESEARCH

April 2012

Foodservice amp Food Processing Sectors for Cheese and Dairy Ingredients

This report was commissioned by the US Dairy Export Council with contributions from various consultants and market research experts It is part of an extensive series of reports available to USDEC members and exclusively to US dairy industry members Reports are conducted to help the industry understand growth drivers evaluate market opportunities and challenges and become a consistent global supplier

USDEC staff members are available at any time to answer further questions and one-on-one consultations on additional topics and markets are offered throughout the year at membersrsquo requests

Please contact Veronique Lagrange vlagrangeusdecorg for more details

Our full report collection can be found at wwwusdecorglibrary Reports can be ordered online or by contacting Rebecca at rvidalusdecorg

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Sourcebooks

copy 2012 US Dairy Export Council 3

Egypt amp Saudi Arabia Foodservice and Food Processing

Sectors for Cheese and Dairy Ingredients

Prepared for The US Dairy Export Council (USDEC)

Prepared by Orrani Consulting LTD

This study focuses on two key Middle Eastern markets Egypt and Saudi Arabia where US dairy supply has an emerging but so far very limited presence Each country report considers the foodservice market for cheese as well as the local food industry demand for SMP cheese as an ingredient whey products and lactose

copy 2012 US Dairy Export Council

Egypt amp Saudi Arabia Cheese amp Dairy Ingredients Table of Contents


Contents

1 Executive Synopsis 10 11 Introduction 10 12 Egypt ndash Import Trends 10 13 Foodservice Cheese 11

131 Key Points 11 132 ConclusionsRecommendations 11

14 Egypt ndash Dairy Ingredients 12 141 Key Points 12 142 ConclusionsRecommendations 13

15 Saudi Arabia ndash Import Trends 14 16 Saudi Arabia ndash Foodservice Cheese 14


17 Saudi Arabia ndash Dairy Ingredients 16 171 Key Points 16 172 ConclusionsRecommendations 16

2 Egypt 18 21 Foreign Trade 18

211 Cheese 18 2111 Import Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip18 2112 Supply Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip18 2113 Cheese Usage and Projectionhelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip21

212 SMP 24 2121 Import Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip23 2122 Supply Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip23 2123 SMP Usage and Projections 25

213 Whey 27 2131 Import Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip27 2132 Supply Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip27 2133 Whey Usage and Projectionshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip29

214 Lactose 30 2141 Import Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip31 2142 Supply Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip32 2143 Lactose Usage and Projectionshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip32

22 Foodservice ndash Cheese Demand 32 221 Foodservice Market Trends 32 222 Foodservice Categories 33 223 Key Supply Chain Partners ndash Cheese for Foodservice 40 224 Foodservice Customer Profiles 42

23 Food Industry ndash Ingredients Demand 48 231 Overview ndash Local Food Processing Sector 48

2311 Innovationhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip51 2312 Linkages with Other MENA Marketshelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphellip52

232 Key Customer Issues 51 2321 General Commentshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip54 2322 SMPhelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip56



2323 Whey Powderhelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip57 2324 Cheesehelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip57

233 Key Ingredient User Sectors 54 2331 Liquid Milkhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip58 2332 Yogurthelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip59 2333 Cheesehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip61 2334 Ice Cream ndash Sector Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip65 2335 Chocolatehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip66 2336 Gumhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip68 2337 Candyhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip69 2338 Biscuitshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphellip70 2339 Cakeshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip hellip71 23310 Infants Nutritionhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip73

234 Barriers to Trade 69 2341 Tariffshelliphelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip73 2342 Free Trade Agreementhelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip74

235 Key Supply Chain Partners ndash Ingredients 70

3 Saudi Arabia 74 31 Foreign Trade 74

311 Cheese 74 3111 Import Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip80 3112 Supply Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip80 3113 Cheese Usage and Projectionshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip84

312 SMP 78 3121 Trade Trends 84 3122 Supply Trends 86 3123 SMP Usage and Projections 86

313 Whey 80 3131 Trade Trends 88 3132 Supply Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip88 3133 Whey Usage and Projectionshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip90

314 Lactose 84 3141 Supply Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip92 3142 Lactose Usage and Projectionshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip92

32 Foodservice ndash Cheese Demand 86 321 Foodservice Market Trends 86 322 Key Supply Chain Partners ndash Cheese for Foodservice 88 323 Foodservice Customer Profiles 92

33 Food processing ndash Ingredients Demand 102 331 Overview ndash Local Food Processing Sector 102

3311 Innovationhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip112 3312 Linkages with other MENA marketshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip112

332 Key Customer Issues 106 3321 General Commentshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip116 3322 SMPhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip116 3323 Whey Powder Lactosehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip117 3324 Cheesehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip117

34 Key Ingredient User Sectors 109 341 Liquid Milk 109

3411 Sector Trendshelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip118 3412 Dairy Ingredients Usagehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip119



342 Laban 110 3421 Sector Trendshelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip120 3422 Dairy Ingredients Usagehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip120

343 Yogurt 110 3431 Sector Trendshelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip121

344 Dairy Ingredients Usage 111 345 Concentrated milks 111

3451 Sector Trendshelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip122 3452 Dairy Ingredients Usagehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip122

346 Cheese 112 3461 Sector Trendshelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip123 3462 Dairy Ingredients Usagehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip123

347 Infant Nutrition 114 3471 Sector Trendshelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip125 3472 Dairy Ingredients Usagehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip125

348 Chocolate 115 3481 Sector Trendshelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip126 3482 Dairy Ingredients Usagehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip127

349 Ice Cream 117 3491 Sector Trendshelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip129 3492 Dairy Ingredients Usagehelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip129

3410 Biscuits and Cakes 118 34101 Sector Trendshelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip130 34102 Dairy Ingredients Usagehelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip130

3411 Processed MeatSeafoodConvenience Foods 121 34111 Sector Trendshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip133 34112 Dairy Ingredients Usagehelliphelliphelliphelliphelliphelliphellip helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip133

3412 Key Supply Chain Partners ndash Ingredients 122 3413 Barriers to Trade 125

4 Appendix ndash Procurement Contacts Egypt 126

5 Appendix ndash Procurement Contacts KSA 130

6 Appendix ndash Confectionery Formulations Egypt 136

7 Appendix ndash Egyptian Cheese Exports 143

8 Appendix ndash Documentation Requirements KSA 146

9 Appendixndash Cheese Imports by Country of Origin KSA 150



Tables

Table 2111a Cheese Foreign Trade Trends Egypt 2008-2010 18 Table 2111b Cheese Imports by Type Egypt 2008-2010 19 Table 2112a Cheese Exports to Egypt by Key Suppliers 2006-2011 20 Table 2112b EU-27 Cheese Exports to Egypt 2006-2011 20 Table 2112c EU-27 Cheese Exports to Egypt by TypeCountry 2010 21 Table 2112d US Cheese Exports to Egypt 2006-2011 22 Table 2112e New Zealand Cheese Exports to Egypt 2006-2011 22 Table 2112f Australia Cheese Exports to Egypt 2006-2011 23 Table 2113 Projected Egyptian Cheese Imports by Type 2005-2010 23 Table 2121 Egyptian SMP Imports 2008-2011 24 Table 2122a SMP Exports to Egypt by Top 4 Key Suppliers 2006-2011 25 Table 2122b SMP Exports to Egypt by Ukraine 2007-2010 25 Table 2122c EU-27 SMP Exports to Egypt by Country 2009 amp 2010 26 Table 2123 SMP Usage and Projections 2010-2015 27 Table 2131 Whey Imports by Type Egypt 2008-2010 27 Table 2132a Whey Exports to Egypt by Top 4 Key Suppliers 2006-2011 28 Table 2132b Whey Exports to Egypt by Key ProductsSuppliers 2006-2011 28 Table 2132c ldquoTop 4rdquo Market Shares in Whey Exports to Egypt 2006-2011 29 Table 2132d Whey Powder Exports to Egypt by Ukraine 2007-2010 30 Table 2133 Projected Whey Exports to Egypt Top 4 Key Suppliers 2010-2015 30 Table2141 Egyptrsquos Lactose Imports by Source 2008-2011 30 Table 2142 Lactose Exports to Egypt by Key Suppliers 2006-2011 31 Table 2143 Projected Egyptian Lactose Imports 2010-2015 32 Table 221 Obesity Levels by Country Middle East 33 Table 222a Pizza Market Segmentation Egypt 33 Table 222b Key International Pizza Chains Egypt 34 Table 222c Key Local Pizza Chains Egypt 35 Table 222d Key BurgerSandwich Chains Egypt 36 Table 222e Key Casual Dining Chains Egypt 37 Table 222f BakeryPatisserie Market Segmentation Egypt 37 Table 222g Cafeacute Chains Key Players Egypt 38 Table 2312 Food Processors in Egypt ndash Wider MENA Connections 49 Table 2331 Market Trends Liquid Milk Egypt 2002-2010 54 Figure 2332a Trends Industrial Spoonable Yogurt 2007-2010 56 Table 2332b Market Shares Yogurt Egypt 2010 56 Figure 2333a Market Shares White Cheese Egypt 2009 58 Figure 2333b Trends Egyptian Processed Cheese Market 2006-2010 59 Figure 2333c Market Shares Processed Cheese Egypt 2009 59 Table 2335a Market Trends Chocolate Egypt 2002-2010 62 Figure 2335b Market Volume Trends Chocolate Egypt 2002-2010 62 Table 2336a Market Trends Chewing Gum Egypt 2002-2010 63 Figure 2336b Market Volume Trends Chewing Gum Egypt 2002-2010 64 Table 2337a Market Trends Candy Egypt 2002-2010 64 Figure 2337b Market Volume Trends Candy Egypt 2002-2010 65 Table 2338a Market Trends Biscuits Egypt 2002-2010 65 Figure 2338b Market Volume Trends Biscuits Egypt 2002-2010 66 Figure 2338c Market Shares Biscuits Egypt 2009 66 Table 2339a Market Trends Cakes Egypt 2002-2010 67



Figure 2339b Market Volume Trends Cakes Egypt 2002-2010 68 Figure 2339c Market Shares Cakes Egypt 2009 68 Table 3111 KSA Cheese Imports by Type 2005-2010 74 Table 3112a Cheese Exports to KSA by Key Suppliers 2006-2011 75 Table 3112b Cheese Exports to KSA by Egypt amp Bahrain 2005-2010 76 Table 3112c EU-27 Cheese Exports to KSA by Type 2006-2011 76 Table 3112d US Cheese Exports to KSA by Type 2006-2011 77 Table 3113 Projected KSA Cheese Imports by Type 2005-2010 78 Table 3121 KSA Imports SMP 2005-2010 78 Table 3122 SMP Exports to KSA by Key Suppliers 2006-2011 79 Table 3123 SMP Usage and Projections 2010-2015 80 Table 3131 Whey Imports by Type KSA 2007-2010 80 Table 3132a Whey Exports to KSA by Top 4 Key Suppliers 2006-2011 82 Table 3132b Whey Exports to KSA by Key ProductsSuppliers 2006-2011 82 Table 3132c ldquoTop 4rdquo Market Shares in Whey Exports to KSA 2006-2011 83 Table 3133 Projected Whey Exports to KSA by Top 4 Key Suppliers 2015 84 Table 3141a Lactose Exports to KSA by Key Suppliers 2006-2011 84 Table 3141b ldquoTop 4rdquo Market Shares in Lactose Exports to KSA 2006-2011 85 Table 3142 Projected Lactose Exports to KSA by Top 4 Key Suppliers 2015 85 Table 321 Key Restaurant Chains Using Cheese 88 Table 3312 Food Processors in KSA ndash Wider MENA Connections 104 Table 3411 Sales Trends Liquid Milk 2006-2010 109 Table 3421 Sales Trends Laban 2006-2010 110 Table 3431 Sales Trends Yogurt 2006-2010 111 Table 3451 Sales Trends Concentrated Milks 2006-2010 111 Table 3461 Sales Trends Cheese 2006-2010 112 Table 3471 Expected Trends in KSA Infant Formula Market 2009-2016 114 Table 3472 Scheduled Future IPNC Dairy Requirements 2012-2016 114 Figure 3491 Market Shares Ice Cream Saudi Arabia 2011 118 Table 6a Use of Dairy Ingredients Mars ndash StixFlutes 136 Table 6b Use of Dairy Ingredients Cadbury Dairy Milk 137 Table 6c Use of Dairy Ingredients Cadbury Countlines 140 Table 6d Use of Dairy Ingredients Cadbury Chixo Liquid Chocolate 141 Table 6e Use of Dairy Ingredients Cadbury Eclairs 142 Table 7 Egyptian Cheese Exports by Country 2008 - Jan-Jul 2011 143



ABBREVIATIONS Through the text of this report Saudi Arabia is referred to as KSA With the exception of company names other abbreviations used are B2B ndash business to business bn ndash billion CAGR ndash compound annual growth rate CAPMAS ndash Central Agency for Public Mobilization and Statistics CME ndash Chicago Mercantile Exchange CWT ndash Cooperatives Working Together DWP ndash demineralized whey powder EFTA ndash European free Trade Association EGP ndash Egyptian Pound (1 US$ = 604150 EGP) EU ndash European Union FMCG ndash fast moving consumer goods FTA ndash free trade agreement GAFTA ndash Greater Arab Free Trade Area GCC ndash Gulf Cooperation Council GRP ndash Gross Rating Points IPO ndash Initial public offering JV ndash joint venture KSA ndash Kingdom of Saudi Arabia LVQR ndash La Vache Qui Rit (Laughing Cow) MFN ndash most favored nation mn ndash million MPC ndash milk protein concentrate mtyr ndash metric tonnes per year NTB ndash non-tariff barrier SAR ndash Saudi Riyal (1 US$ = 375025 SAR) SCM ndash sweetened condensed milk SFDA ndash Saudi Food and Drug Authority SMP ndash skim milk powder SWP ndash sweet whey powder TRQ ndash tariff rate quota UHT ndash ultra-high temperature WMP ndash whole milk powder (=FCMP) WPC ndash whey protein concentrate MEFTA ndash US-Middle east free Trade Area

Egypt amp Saudi Arabia Cheese amp Dairy Ingredients Executive Synopsis


1 Executive Synopsis

11 Introduction

This study focuses on two key Middle Eastern markets where US dairy supply has an emerging but so far very limited presence

1 Egypt

bull Population 826 mn the 15-24 age bracket grew by 33 1995-2010 with 8 further growth expected 2010-2025 currently 31 aged lt15 gt60 lt30

bull Recent GDP growth dipping from around 5 in recent years to 1 in 2011 due to the revolution but expected to recover to 6-7 by 2016

bull GDP per capita estimated at $3100 in 2012 but 19 living on lt$2 per day

2 Kingdom of Saudi Arabia (KSA)

bull Population 279 mn the 15-24 age bracket grew by 66 1995-2010 with 15 further growth expected 2010-2025 currently 31 aged lt15

bull GDP growth of gt6 in 2011 and expected to remain around 4 through to 2016

bull GDP per capita estimated at $20200 in 2012

Each country report considers the foodservice market for cheese as well as the local food industry demand for SMP cheese as an ingredient whey products and lactose

12 Egypt Import Trends

bull Cheese imports were 27458 mt in 2010 however Egypt is a net exporter of cheese mainly importing for processed cheese manufacture ndash a key export earner

bull Volumes from the ldquoTop 4rdquo suppliers (EU US New Zealand Australia) rose to 28922 mt in 2009 reducing slightly to 28922 mt in 2010 and likely similar in 2011 from these the EU made up 39 of supply in 2010 (2009 41) New Zealand 22 (46) US product holds 2nd place with increased penetration in supply of cheddar for processing based on price

bull Imports of SMP (~45300 mt in 2010 with diverse usage) and cheese (27000-29000 mt ndash mainly for further processing) are led by the EU (52 of supplies from the ldquotop 4rdquo international sources in 2010) with the US close behind at 43 ndash up in volume but down in share as EU supplies have risen in recent years

bull Imports of whey products were 16000 mt from the ldquoTop 4rdquo (Egyptian data runs higher than this but it is unclear that this is at all accurate) SWP and permeate are used whilst WPC usage remains very low supplies of lactose appear to be ~4000 mt depending on data sources ndash very few users could be identified



bull The EU dominates whey supply but US volumes have risen significantly in the 040490 category in 2010 and 2011 The exact content of this trade is unclear the EU also supplies most of the lactose used

13 Foodservice Cheese

131 Key Points

bull The Egyptian foodservice sector is extremely diverse and despite the countryrsquos large low-income sector had expanded strongly prior to 2011 due to economic growth rising tourism levels and a very youth-oriented demographic

bull The supply chain is highly fragmented Chains with significant cheese usage include

International (via local partners)

- Burgerssandwiches Burger King (11 restaurants) McDonalds (65) Subway (4)

- Pizza Pizza Hut (60) Dominorsquos (15) Papa Johnrsquos (14) Little Caesarrsquos (6)

- Casual Dining Hardees (35) Chilirsquos (15) TGIF (5)

Local

- Pizza Cook Door (28) Pizza King (Morsquomen) (25) Panda (15) Roma Pizza 2 Go (120)

- Burgerssandwiches Bon Appetit (21)

- Casual Dining Spectra (19)

- Bakerypatisserie La Poire (50+) Monginirsquos (21)

bull The key local foodservice businesses managing a mix of international franchises and their own chains are Americana (Pizza Hut KFC Hardees) Amer (five chains including the Chilirsquos and Carinorsquos franchises) Mansour Group (McDonalds) Olayan HANA International (Burger King) Morsquomen (Morsquomen Pizza King and Planet Africa) United Beverage amp Food (Cinnabon Carvel RubyTuesday) and Divine Worx (various locally developed chains)

bull Cheese supply to foodservice accounts is mainly from

1 Local manufacturers for mozzarella led by Green Land (which is part of Americana) also Domty for cheddar and Best Cheese (Lactalis)

2 Kingdom of Saudi Arabia (KSA) suppliers specifically from PrideLactalis and Forsan but also from United Food in KSA which imports from New Zealand (mainly) and Australia slices and ships to Egypt

3 Fonterra plus some European (Ireland France)

4 US Dominorsquos (purchasing via KSA franchisee)

bull Purchasing is very price-driven and being price competitive once freight is taken into account will be challenging most chains are small and will mainly buy from local importers

132 ConclusionsRecommendations

Conclusions



bull The local foodservice market is currently experiencing difficulties Sales declined during 2011 because of the political unrest in Egypt which has had a negative impact on incomes and tourism numbers

bull US cheese has become a strong feature in the market but mainly in industrial channels Foodservice products will face strong competition from local supply both from within Egypt and the KSA and from New Zealand and European product Skepticism exists on whether US product can be price competitive in such an environment

bull Costs will be even more of an issue Egypt than in KSA

bull International chains offer the best prospects where leverage can potentially be exercised via a US head office or by a regional headquarters such as McDonalds office in Dubai

Recommendations

bull Focus on gaining incremental volumes in accounts with US-driven menu compositionprocurement where supply accreditation is in place

bull Examine opportunities to provide solutions based on value add for example providing technical support on cheese useapplications offer superior quality and packaging

bull Examine opportunities for cost-engineering with blends or analogs

bull Consider potential to open up new customers with supply of specialty products

bull Work with importers (where viable) to target the much larger retail cheese sector alongside foodservice in order to build volume especially (for retail) on specialty products where higher pricing is prevalent key distributor options are Mido Khaled Khoshala (more traditional less FMCG oriented with own production) Soudanco

bull Developing a regular sustained and committed approach to working on the ground locally with potential supply chain partners and end-users to convince them of serious intent and understand how to address their needs

14 Egypt Dairy Ingredients

141 Key Points

bull Egyptrsquos food industry faces challenges ranging from an inefficient operating environment and under-developed retail sector to catering to consumers with low disposable incomes Levels of innovation are very low

bull Few local companies have significant manufacturing operations outside Egypt The major exception is Savola the regionrsquos largest retail food chain with stakes in Almarai and Herfy in KSA plus its own activities in oils and fats and in Panda

bull Key food sector multinationals with manufacturing presences include Bongrain Chipita Danone Heinz Fromageries Bel Kraft Lactalis Masterfoods Nestleacute PepsiCo and Unilever regional presences include Americana Gandour Patchi and Galadari Brothers Group

bull Key importersdistributors to be considered include



1 Cheese for processing Al Fayrouz

2 SMP El Hool (Sphinx) El Amrity Mazex Said Trading

3 Dairy powders in general AGI Al Garas (Bell Foods) Khaled Khoshala Light Foods 142 ConclusionsRecommendations

Conclusions

bull Most food processors rely on imported product Exceptions include

ndash SMP is produced locally by Dina Farms but in low volume and reportedly with very inconsistent quality and availability

ndash Green Land dries whey powder for its own use and local sale

bull The US presence is seen as low key Overall US products are well regarded by local companies (with Juhayna Labanita Seclam as notable exceptions)

bull Areas of concern amongst the local trade and their customers in regard to US products include

- Logistics US delivery terms of 45-50 days vs 14 days from Europe (Note transit time of ~6 weeks was cited by one trader as Fonterrarsquos only weakness in the market)

- Prices seen as fluctuating and sometimes ldquounrealisticrdquo compounded by US suppliersrsquo less flexible financing expectations (vs EU and Fonterra)

- Varying availability the US is seen as a seasonal supplier Some companies see US suppliers as uncommitted and use the Middle East as a surplus disposalstock clearance market

- Poor packaging packaging fails to include clear instructions on labels and product usage and application Information is not country-specific or translated into the local language

- Public relations Lack of marketing activities and understanding of customer needs

bull To build on its now substantial share in parts of the Egyptian market the US industry needs to build on its presence and compete more effectively with Fonterra and Europe

Recommendations

bull Position the US industry as a credible high quality and reliable supply source Trade fairs and marketing events (AnugaSialGulfood) are the key means through which the local buyers source information on prospective suppliers However the US industry needs to go beyond this by developing a consistent presence allowing closer contacts with clients to understand their requirements and work on addressing technical problems and solving market issues

bull Go beyond company visits by suppliers to an ongoing local presence with (although many respondents do speak English) local language capability

bull Raise the industry profile and build contacts through technical seminars on use of dairy ingredients for the local industry

- Key areas of focus should include reformulation for cost reduction and the use of whey products for such purposes



- Possible regional venues would be in Dubai or Jeddah in KSA (see comments in 152) or in Egypt itself in the latter case Cairo is currently difficult and more attractive locations are likely to be Hurghada or Sharm el-Sheikh

- A key marketing challenge to focus on will be how to ensure substantive attendance at the actual event (rather than simply using it as a vehicle for shopping and vacation)

bull Ensure that commissions are minimal (1-15 rather than 2-25) and that end customer contact is possible

bull Target new processors to build up relationships based on RampD support eg the new cheese producer Brego which started up in 2010 or Talaat Mostafa Group currently building its own dairy factory

15 Saudi Arabia Import Trends

bull Cheese imports to the KSA have risen gradually in recent years to 114199 mt in 2010 according to local data key categories are processed cheese (declining a little but still 49771 mt) and HSH cheeses (33688 mt) most goes into further processing or retail but some is supplied to key foodservice accounts such as Dominorsquos and Hardees

bull Key cheese suppliers are the EU US New Zealand Australia ~ 42000 mt Egypt ~ 25000 mt and Bahrain ~ 14000 mt (new Kraft factory from 2008) US supply rose strongly in 2010 to 6987 mt from 2238 mt in 2009 this gives it 17 of the ldquotop 4rdquo supply volume (vs EU with 45 and New Zealand with 22) 2011 partial data shows further growth in US volumes

bull There are significant imports of SMP (~37000 mt in 2010 with diverse usage) and cheese (114199 mt ndash with use for further processing a significant component)

bull Imports of whey products are low at just 6143 mt SWP and permeate are used whilst WPC usage remains very low supplies of lactose from the EU US and Australia (none from New Zealand) came to only 1664 mt

bull US supply is minor in each category apart from cheese

16 Saudi Arabia Foodservice Cheese

161 Key Points

bull The foodservice sector in KSA is growing aided by the countryrsquos economic growth its high per capita incomes by regional standards its youthful population and the wide range of international operators present through local franchisees

bull Key chains with significant cheese use and widespread presences include


- Burgers Burger King (65 restaurants) McDonalds (102)

- Pizza Pizza Hut (161) Dominorsquos (80) Little Caesarrsquos (80) Pizza Inn (41)

- Casual Dining Hardees (42)

- Sandwich Subway (43)



Local

- Burgers Herfy (186)

- Casual Dining Kudu (147)

bull The key local foodservice businesses managing a mix of international franchises and their own chains are Herfy and Kudu (own chains) Olayan (Burger King) Reza Food Services and Riyadh International Catering (each running McDonalds in different regions) Mawarid Food and Bashar amp Awni Shaker (each running Pizza Hut in different regions) Alamar foods (Dominorsquos) Bazbaza International (Little Caesarrsquos) United Food (Pizza Inn) Americana (Hardees TGIF) Shamel Food (Subway)

bull Supply of cheese to foodservice accounts is dominated by two local manufacturers Forsan Foods and Pride (the local Lactalis subsidiary)

bull There has also been an increasing presence of product from Egypt in the overall cheese market specifically with processed cheese and white cheese

bull Purchasing is very price-driven and being price competitive once freight is taken into account will be challenging for instance one source suggests US$2300 CampF Jeddah as being the level of price needed to succeed in white cheese


Conclusions

bull The local foodservice market is strong and expected to keep growing

bull International chains offer the best prospects but nevertheless differ in their approach for example Burger King is all locally supplied whereas Dominorsquos mainly imports its cheese

bull Local independent cheese importersdistributors are skeptical of the ability of US cheeses to compete on price and often frustrated by the lack of US presence or focus on the market

Recommendations


bull Examine opportunities to take value add or cost-engineered approaches

- Work with importers (where viable) to target the much larger retail cheese sector alongside foodservice in order to build volume especially on specialty products where higher pricing is prevalent

- Key distributor options include

Abdullah Mahmud Abbar (potential interest US cheddar specialty cheeses double cream white cheese low end mozzarella and butter in 25 kg blocks)

Arrow Distribution Gulf Central Triple Quality (experience of US supply potential interest US mozzarella)

bull Develop a regular sustained and committed approach to working on the ground locally with potential supply chain partners and end-users to convince them of serious intent and understand how to address their needs



17 Saudi Arabia Dairy Ingredients

171 Key Points

bull The country plays an important role in supplying processed foods around the region and has a relatively diverse local food industry though few locally-owned businesses manufacture process foods outside the Kingdom

bull The increasing consolidation and international involvement in the market is highlighted by deals in December 2011 by Coca-Cola ($980 mn for ~50 of Aujan Group an established regional drinks manufacturer) and Carlyle Group (47 stake in Alamari Foods)

bull Key food sector multinationals with manufacturing presences include Nestleacute Danone PepsiCo Kraft Lactalis KSA is also an attractive manufacturing location for a regional groups such as the confectioners Patchi and Candour and the bakery group Switz

bull There are relatively few importers with local offices dealing in dairy ingredients Ingredients are often imported directly or via a 3rd party in the UAE key exceptions are Dubai-based Food Specialties Ltd (FSL) and the local firm Ahmad A Abed


Conclusions

bull Milk supply in KSA has grown quite strongly and should now be around 2 bn Lyr however water supply is a major and growing issue affecting the production of both milk and potentially feed This problem was highlighted by Almarairsquos December 2011 acquisition of Argentine fodder producer Fondomonte a move that suggests dairy ingredient imports will increase

bull Supply security is a major issue for import-dependent businesses Several contacts noted that the fluctuations of the Euro has been creating problems and trading in US$ is an advantage for US suppliers ndash both factors suggest strong potential for the US to raise its presence in the market

bull The local operating environment presents some significant challenges which require a matching level of determination and resources to overcome

ndash there is a hierarchy of privileges for firms with Saudi interests which mean that these are all run with local partners

ndash the market is more complicated to access than countries such as Dubai or Egypt

bull Despite KSArsquos relative affluence by regional standards the food industry is generally cost-driven with limited awarenessuse of products such as whey ingredients or lactose

bull Low level of innovation is one constraint to increased ingredient usage There is limited interest in health and nutrition despite significant and growing health-related issues and the growing role of the Saudi Food and Drug Authority (SFDA appears to be making new product development a lengthy and risky process

bull US supply is seen as marginal by most buyers of powdered dairy ingredients many commented on the apparent lack of interest shown by US suppliers who are seen as absent or if visiting likely to be ldquohere today gone tomorrowrdquo



bull Fonterra has a strong place in the market built up longstanding supply and presence (even before its investment in leading local recombiner Sadafco) However Fonterra is sometimes viewed as arrogant supporting interest to consider wider options (Almarai is a good example of this)

bull No other supplier comes close to Fonterrarsquos position although others cited include Arla FrieslandCampina Glanbia and Valio (the first two have local manufacturing operations Danya Foods and Jamjoom Foremost respectively) and also Murray Goulburn Australiarsquos Tatura Milk Industries also made a visit to the market last year ndash this focused on retail but ingredients business will no doubt be sought

bull Some processors are disinclined to work through traders (eg NFIC Sunbulah) and some are building up direct US supply lines (eg Almarai) ndash but have had to work very hard to do so some have been very happy with US product (eg Nadec) there exist some such as Alrabie which consider that they have had their ldquofingers burnedrdquo in the past and are seriously doubtfulnegative towards potential US supply but most companies remain open

bull Aside from the absence from the market key concerns raised over US supply include product quality a weak technical approach a lack of attention to detail and a lack of strategic market-specific pricing sometimes issues are specific ndash too much moisture in cheese for processing for instance ndash at other times a damaging impression that ldquoUS product is not as goodrdquo

Recommendations

bull Establish a presence as a credible high quality and reliable supply source must be the key objective for US industry individually and where appropriate collectively

bull Companies need visits from suppliers effective ongoing liaison requires a local presence with local language capability (although many respondents do speak English)

bull Highlight satisfied local usersapplications where possible in discussions with buyers


bull Conduct trade seminars with the target audience prioritized Possible venues are Dubai or Egypt (see comments in 13) both potentially attractive destinations for Saudis but maximum traction will be gained by making such meetings as accessible as possible by holding them in KSA itself many of the target management in businesses around the region are Muslim for whom a visit to Mecca is important this would make Jeddah a good choice and signal serious intent to make progress in the local market (it is often chosen for international conferences for this reason and is seen locally as attractive ndash being coastal and a more relaxed location than Riyadh)

bull Put in attention to detail and getting specifics right

Egypt amp Saudi Arabia Cheese amp Dairy Ingredients Chapter 2 Egypt


2 Egypt

21 Foreign Trade

211 Cheese

2111 Import Trends

Egypt is a net exporter of cheese imports go mainly to its processed cheese manufacturing sector the output of which is a key export earner (see Appendix 7) The local trade data for 2008-2010 appears representative of the trade situation the data for 2011 appears erroneous and is replicated here only for completeness ndash full year 2011 figures will need to be revised and verified locally Table 2111a Cheese Foreign Trade Trends Egypt 2008-2010 mt

Year Imports Exports Net Export

2008 20134 93010 72876

2009 20203 140372 120169

2010 27460 169391 141931

2011 57748 79418 21670 Source Ministry of Agriculture Note Appears erroneous ndash based on partial and preliminary data for January-September Cheese exports can be divided as follows (2010)

bull 40630001090 ndash Processed cheese ndash 72345 mt

bull 406901020 ndash Processed cheese (edam cheddar) ndash 48455 mt

bull 040610 ndash Fresh cheese ndash 38724 mt

bull 406909090 ndash Other cheese ndash 3866 mt Most of this export trade is within the MENA region with Iraq KSA and Libya as the key destinations As a result most of the cheese import volume is destined for the production of processed cheese as covered in section 225 Only limited quantities are destined for the Egyptian foodservice sector



Table 2111b Cheese Imports by Type Egypt 2008-2010

HS Code Product 2008 2009 2010

0406100010 Fresh cheese in packs le 20 kg 135 56 298

0406100090 Fresh cheese in packs gt 20 kg 84 1 -

0406200010 Cheese grated or powdered in packs le 20 kg 91 357 2543

406200090 Cheese grated or powdered in packs gt 20 kg 302 180 11

0406300010 Processed cheese in packs le 20 kg 1934 1955 5410

0406300090 Processed cheese in packs gt 20 kg 70 64 98

0406400010 Blue vein cheese in packs le 20 kg 272 665 17

406400090 Blue vein cheese in packs gt 20 kg 2 83 1

0406901010 Cheese other in packs ge10 kg and le 20 kg 8101 10162 16398

0406901090 Cheese other in packs gt 20 kg 3722 2936 63

0406909010 Turkey cheese 27 13 34

0406909090 Cheese other 3631 3658 2585

Total 18371 20130 27458

Source Ministry of Agriculture Note Rounded figures 2112 Supply Trends

The limited foodservice use of imports means that whilst local foodservice buyers often cite KSA as a supply source (mainly the companies Forsan and Pride a subsidiary of French group Lactalis) volumes from KSA are limited in the overall scheme of things ndash around 420 mt in 2010 Europe remains the leading cheese supplier to the Egyptian market Fonterra has increasingly placed emphasis on the growing Asian marketplace and the lower volume Australian suppliers have done the same the result has been that US product has gained considerable share going from 2 to 37



Table 2112a Cheese Exports to Egypt by Key Suppliers 2006-2011

2006 2007 2008 2009 2010

Jan-Aug 2011

ldquoTop 4rdquo Volume ndash Mt

EU27 7002 6708 8968 11999 10044 6741

US 381 1463 4026 1268 8251 6119

New Zealand 10956 9720 6094 13227 5725 811

Australia 2860 1999 1738 2428 1611 1298

ldquoTop 4rdquo Total 21199 19890 20826 28922 25631 14969

ldquoTop 4rdquo Market Share ndash

EU27 33 34 43 41 39 45

US 2 7 19 4 32 41

New Zealand 52 49 29 46 22 5

Australia 13 10 8 8 6 9

ldquoTop 4rdquo Total 100 100 100 100 100 100 Source Eurostat USDA Statistics New Zealand ABS Note Ranked by 2010 volume for US and New Zealand 2011 data is Jan-Sept rounded figures The bulk of the EU product falls into the ldquoother cheeserdquo 040690 category mainly comprising HSH cheeses edam cheddar and gouda Table 2112b EU-27 Cheese Exports to Egypt 2006-2011

Description HS code 2006 2007 2008 2009 2010 Jan-Aug 2011

Cheese -

Fresh cheese 040610xxxx 204 44 83 108 162 104

Gratedpowdered 040620xxxx 202 188 329 157 219 199

Processed cheese 040630xxxx 560 248 1086 1132 1646 1054

Blue vein 040640xxxx 253 580 421 680 628 470


Other cheese 040690xxxx 5783 5648 7049 9922 7389 4914

Of which

Cheddar cheese 04069021 1060 364 2973 4741 1819 1434

Edam cheese 04069023 3258 3871 2643 3384 3846 2503




Gouda cheese 04069078 1115 1099 1063 1369 1214 729

Total 7002 6708 8968 11999 10044 6741

Source Eurostat The Netherlands is by far the lead player accounting for over half the EU export volume to Egypt with a supply of around 5200 mt in 2010 It is followed by Ireland (mainly HSH cheeses) and Poland (strong in processed cheeses) Denmark has a strong position in powdered cheese (Lactosan) and also blue vein cheeses Table 2112c EU-27 Cheese Exports to Egypt by TypeCountry 2010

Fresh GratedPowdered Blue Vein Processed Other

Netherlands 38 5161

Ireland 1 1623

United Kingdom 1 1 216

Italy 15 2 7 103

France 2 5 90

Germany 131 114 4 74

Poland 1579 50

Denmark 13 211 507 23

Austria 23 22

Greece 1 11

Greece 1 11


Cyprus

Bulgaria 2

Belgium 8

Total 162 218 629 1646 7383



Source Eurostat A breakdown of the US figures highlights that the growth in trade has been mainly in cheddar ndash going into the local processed cheese manufacturers Table 2112d US Cheese Exports to Egypt 2006-2011

Description HS code 2006 2007 2008 2009 2010 Jan-Sep 2011

Fresh cheese 0406100000 96 21 555 118 621 994

Cheddar 195 1048 2388 815 5651 3763

Processed cheese 0406300000 31 1 390 290 1745 930

Cheese all kinds 0406200000 2 19 253 19 212 61

Cheese inc mixed 0406909550 57 374 440 26 15 365

Colby 0406906500 0 0 1 0 6 5

Total 381 1463 4026 1268 8251 6119 Source USDA The US growth in cheddar has been paralleled by the declining volumes of cheddar from New Zealand during 2010 and 2011 Table 2112e New Zealand Cheese Exports to Egypt 2006-2011





Cheddar 0406900011 10956 9720 6094 12504 4476 399


Total 10956 9720 6094 13227 5725 811

Source USDA



Table 2112f Australia Cheese Exports to Egypt 2006-2011





Cheddar 04069010 2576 1531 1606 2094 1180 1039


Total 2860 1999 1738 2428 1611 1298 Source USDA 2113 Cheese Usage and Projections

Egyptian imports of cheese are expected to gradually increase over the forthcoming years after the slight downturn seen in 2011 Table 2113 Projected Egyptian Cheese Imports by Type 2005-2010

HS Code Product 2010 2015

0406100010 Fresh cheese in packs le 20 kg 298 331

0406200010 Cheese grated or powdered in packs le 20 kg 2543 2826

406200090 Cheese grated or powdered in packs gt 20 kg 11 12

0406300010 Processed cheese in packs le 20 kg 5410 6012

0406300090 Processed cheese in packs gt 20 kg 98 109

0406400010 Blue vein cheese in packs le 20 kg 17 19

406400090 Blue vein cheese in packs gt 20 kg 1 1

0406901010 Cheese other in packs ge10 kg and le 20 kg 16398 18224

0406901090 Cheese other in packs gt 20 kg 63 70

0406909010 Turkey cheese 34 38

0406909090 Cheese other 2585 2873

Total 27458 30516

Source Orrani Consulting based on Ministry of Agriculture and trade sources



212 SMP

2121 Import Trends

Demand for imported SMP has been strong in Egypt in the most recent three years Egyptian import data suggests SMP imports grew considerably in 2010 to 45302 mt and should prove strong in the full 2011 figures Table 2121 Egyptian SMP Imports 2008-201 mt

2008 2009 2010 2011 (Jan-Jul)

USA 13350 5348 15033 7604

Germany 2760 3388 7225 5418

France 297 1218 3444 2482

Sweden 993 3233 3223 2381

Switzerland 2042 1570 3074 582

Finland 530 1539 1841 862

Belgium 206 848 1680 488

New Zealand 1143 1858 1296 415

Poland 707 385 1267 652

Netherlands - 188 936 100

Ireland - 102 804 71

Canada 2219 1959 791 279

Ukraine 4378 1346 686 1372

India 5153 76 543 -

Singapore - 200 512 534

Australia 644 524 475 101

Denmark 39 377 368 591

ECC 479 429 240 -

Total 36636 25733 45302 24362 Source CAPMAS Note Official import data also shows a total of ~38000 mt of WMP imported in 2010 led by Denmark at

12134 and New Zealand at 11268 mt EU27 export data to Egypt under HS 040221 shows a total of 13966 mt in the same year



2122 Supply Trends

The US is the second leading supplier to the market after the EU Together these two sources account for 95 of the ldquotop 4rdquo supplies into the market Estimated total import demand is 40000-45000 mt which supports the Egyptian data US supply grew in particular in 2010 whilst volumes from the EU and New Zealand declined This reflected US pricing at US$100-200 less per mt within this period and the EU has been better placed vs the higher US prices in 2011 and has proven strong as a result Table 2122a SMP Exports to Egypt by Top 4 Key Suppliers 2006-2011

2006 2007 2008 2009 2010 Jan-Aug 2011


EU27 6768 4720 6157 27688 20622 20453

US 15409 8460 15775 8019 17278 9955

New Zealand 1254 860 1405 4337 1465 1498

Australia 408 311 895 1227 438 126



EU27 28 33 25 67 52 64

US 65 59 65 19 43 31

New Zealand 5 6 6 11 4 5

Australia 2 2 4 3 1 0

ldquoTop 4rdquo Total 100 100 100 100 100 100 Source Eurostat USDA Statistics New Zealand ABS Note Ranked by 2010 volume for US and New Zealand 2011 data is Jan-Sept rounded figures Additional volumes from other sources are generally relatively negligible with the exception of the Ukraine At its peak 10 of the Ukrainersquos SMP exports were going to Egypt in 2008 but since then export availability has fallen away considerably Table 2122b SMP Exports to Egypt by Ukraine 2007-2010

2007 2008 2009 2010

Mt 1836 4249 1956 1050

Ukraine total SMP exports 3 10 7 8

Source Ukrainian Statistics Office



A data split shows that Germany has been the key supplier during the last two full yearsrsquo trading and was one of the few suppliers to increase its volume in 2010 when overall supply fell Table 2122c EU-27 SMP Exports to Egypt by Country 2009 amp 2010

Mt 2009 2010

Germany 6891 7385

Belgium 5355 4062

Sweden 6831 3751

Finland 3700 1650

France 2257 1048

Ireland 416 917

Poland 935 650

Denmark 640 430

UK - 300

Lithuania - 224

Netherlands 664 121

Spain - 59

Total 27689 20597

Source Eurostat 2123 SMP Usage and Projections

The cheese sector is estimated to use the majority of SMP although there is higher growth in other applications such as yogurt Overall demand growth is estimated at 27 over the 5-year period to 2015 taking volumes to 57160 mt



Table 2123 SMP Usage and Projections 2010-2015

Application Sector 2010 Mt 2015 Mt Projected CAGR

1 White cheese 60 27000 32850 2

2 Processed cheese 15 6750 8615 3

3 Yogurt 7 3150 5073 4

4 UHT milk 7 3150 4020 2

5 ChocolateConfectioneryBakery 6 2700 3446 2

6 Other ice cream infant formula creamers 5 2250 3156 2

Total 100 45000 50726 2 Source Orrani Consulting based on trade sources 213 Whey

2131 Import Trends

Egyptian import data for whey products appears questionable suggesting a trend as follows Table 2131 Whey Imports by Type Egypt 2008-2010


0404100000 Whey and modified whey 6855 3140 8513

0404901000 Natural milk constituents in packs lt10kg 8231 5951 16455

0404909000 Natural milk constituents other 3 - 211

3502200000 Milk albumens 46 474 266

Total 15135 9565 25445


Key exporter data indicates that supplies of whey products from the ldquotop 4rdquo supply sources into Egypt have gradually increased over recent years to 15808 mt in 2010 but look likely to fall short of that in 2011



Additional volumes from other sources are generally relatively negligible Perhaps the main other supplier is the Ukraine but this amounts to lt1000 mt of product annually This number is unlikely to increase much although Ukrainersquos cheesewhey exports have held up much better than its powderbutter volumes Table 2132a Whey Exports to Egypt by Top 4 Key Suppliers 2006-2011

Description HS code 2006 2007 2008 2009 2010

Jan-Aug 2011

Total whey products Chapter 4 plus Chapter 35 WPCWPI 11311 14754 12252 13876 15808 4941

Source Eurostat USDA Statistics New Zealand ABS The following table provides a breakdown of the data by the main HS codes and suppliers The dominance of the EU in this trade is clear and highlighted in the subsequent market share table Table 2132b Whey Exports to Egypt by Key ProductsSuppliers 2006-2011

Description HS code 2006 2007 2008 2009 2010 Jan-Aug

2011

EU27 Whey powder 040410xxxx 5512 6083 6033 8733 9950 6723

Natural milk constituents 040490xxxx 797 2509 882 579 623 296

Albumensprotein concentrates amp isolates

350220xxxx 20 11 101 - 104 17

6329 8603 7016 9312 10677 1178

USA Whey powder 0404104000 1377 935 663 - 741 100

Modified whey nesoi 0404100850 895 1188 180 80 195 140

WPC34 0404100500 7 175 50 19 - 292



350220xxxx - - - - 5 5

2439 2351 1017 424 2520 2023

New Zealand

Whey powder 040410xxxx - - 14 - - -




2011

Natural milk constituents 0404901900 2527 3660 4039 3898 2517 1740


350220xxxx - - - - - -

2527 3660 4053 3898 2517 1740

Australia Whey powder 040410xxxx 16 140 64 136 94 -

Natural milk constituents 040490xxxx - - - - - -


350220xxxx - - 102 106 - -

16 140 166 242 94 -

Total ldquoTop 4rdquo 11311 14754 12252 13876 15808 4941

Source Eurostat USDA Statistics New Zealand ABS Note For US and New Zealand 2011 data is Jan-Sept Table 2132c ldquoTop 4rdquo Market Shares in Whey Exports to Egypt 2006-2011

2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 6329 8603 7016 9312 10677 1178

US 2439 2351 1017 424 2520 2023

New Zealand 2527 3660 4053 3898 2517 1740

Australia 16 140 166 242 94 -



EU27 56 58 57 67 68 24

US 22 16 8 3 16 41

New Zealand 22 25 33 28 16 35

Australia 0 1 1 2 1 -




Source Eurostat USDA Statistics New Zealand ABS Note for US and New Zealand 2011 data is Jan-Sept Table 2132d Whey Powder Exports to Egypt by Ukraine 2007-2010

2007 2008 2009 2010

Mt 800 150 150 691

Ukraine total whey powder exports 5 2 2 4

Source Ukrainian Statistics Office 2133 Whey Usage and Projections

Based on ldquotop 4rdquo exports data (rather than the possibly suspect local import data) sales of aggregate whey products are expected to reach 18254 mt in 2015 with a CAGR of 3 allowing growth after a fall in 2011 Increased take up of WPCs is expected but demand remains modest Table 2133 Projected Whey Exports to Egypt Top 4 Key Suppliers 2010-2015

Description HS Code 2010 2015 Projected

CAGR

Total whey products Chapter 4 plus Chapter 35 WPCWPI 15808 18254 3

Source Orrani Consulting based on Ministry of Agriculture and trade sources 214 Lactose

2141 Import Trends

Egypt is a minor but growing user of lactose Europe ndash and the Netherlands and Germany in particular ndash dominate this trade US product has grown its market share considerably over the last two years The Egyptian import data correlates reasonably well with key exportersrsquo data and rather unusually shows product from China as ranking third in the supply rankings for 2010 Table2141 Egyptrsquos Lactose Imports by Source 2008-2011 mt

Supply Country 2008 2009 2010 Jan-Jul 2011

Germany 863 772 1159 264

Netherlands 191 567 1117 733

China 316 222 624 300

USA 49 110 447 294

New Zealand 514 71 256 79

Italy 59 167 204 120




UK 9 320 124 EEC 20 123 Canada 19 28 71 101

France 145 45 42 43

Syria 37 178 Spain 114 2

Brazil 89 2576 2584 4169 1937 Source CAPMAS 2142 Supply Trends

Table 2142 Lactose Exports to Egypt by Key Suppliers 2006-2011


EU27 Lactose gt= 99 170211xxxx 697 757 863 987 1511 1122

Lactose lt99 170219xxxx 39 56 29 322 98 39

736 813 892 1309 1609 1161

USA Lactose gt= 99 170211xxxx - 680 2340 262 609 211

Lactose lt99 170219xxxx 246 16300 8250 - 60 60

246 170 106 262 669 271

New Zealand Lactose gt= 99 170211xxxx 201 412 168 355 213 76

Lactose lt99 170219xxxx - 200 - 3 - -

201 612 168 358 213 76

Total ldquoTop 3rdquo 1183 1595 1166 1929 2491 1508 Source Eurostat USDA Statistics New Zealand Note Australia has no trade with Egypt in lactose For US and New Zealand 2011 data is Jan-Sept



2143 Lactose Usage and Projections

Imports of lactose are expected to reach 4633 mt in 2015 with a CAGR of 2 Table 2143 Projected Egyptian Lactose Imports 2010-2015

Description HS Code 2010 2015 Projected CAGR

Lactose 1702xx 4169 4633 2

Source Orrani Consulting based on CAPMAS and trade sources

22 Foodservice Cheese Demand

221 Foodservice Market Trends

The local foodservice sector was expanding strongly until the problems of 2011 An optimistic take on the situation would expect a continuation of sector expansion once the countryrsquos political problems have been resolved The growth has been the result of several factors

bull Economic growth has played a part The country lacks the large middle class which the GCC countries tend to have but nevertheless between 2000 and 2007 average per capita annual disposable income expanded by 155 to reach EGP7162 (US$1262)

However the growth has benefited mainly the wealthiest 10 whose increased spending power has fuelled demand for foodservice in affluent areas of major cities in particular Cairo and Alexandria Meanwhile at least 19 of Egyptians live on less than US $2 a day

bull Demographics have been encouraging One third of the population is aged le14 years and gt60 of the population is under 30 The younger consumers are much more likely to seek out new foreign brands and spend more on them over a prolonged period making them attractive to marketers

bull Tourism had been growing fast in the region prior to 2011 The Middle East saw tourist arrivals up by 148 in 2010 faster than any other region however final data for 2011 is expected to show a drop of between -5 to -10 In Egypt tourist arrivals plunged 40 in H1 2011 a period marred by months of political unrest According to figures from the Ministry of Tourism 41 million holiday-makers visited in H1 compared with 69 million in the same period last year This has been a serious problem as the tourism sector accounts for 11 of national GDP However insofar as this has resulted from the local political unrest this should prove to be a temporary dip

This background has meant that affordability is absolutely key in the local foodservice market Health issues have only a limited effect on the foodservice market Obesity rates in Egypt continue to rise as over a third of the population is regarded as obese Increasing levels of obesity mean that due to a rapidly increasing population (and one which ndash relative to its high proportion of youth ndash is ageing quickly) Egypt will have the largest number of people with diabetes in the region by 2025 However the obesity issue is moderate by the standards of the region



Table 221 Obesity Levels by Country Middle East

Overweightobesity ()

Males Females

KSA 640 700

Lebanon 600 530

Iran 570 677

Bahrain 564 790

Jordan 460 437

Egypt 438 410

Libya 425 749

Oman 405 435

UAE 255 399

Source Arabian Gulf University Economic reality has meant that health and wellness issues have played only a limited role in changing menus in the countryrsquos foodservice outlets The main driver of cheese usage has been the increasing number of pizza and burger restaurants However the principal constraint has been economic rather than cultural such outlets are invariably more expensive to visit than those offering the local Egyptian style cuisine 222 Foodservice Categories

The market can effectively be segmented as follows

bull Pizza

bull Fast Food Casual Dining Chains

bull Bakery Cafeacute

bull Restaurant management companies Pizza The local pizza segment is diverse and can be further divided as follows Table 222a Pizza Market Segmentation Egypt

Offer Type

International Pizza Chains

Local Pizza Chains

Local Italian Restaurant Chains Individual Restaurants

Local Pizza Chains Fast Food Avg Class

Local Pizza Oriental Pizza (Feteer) +

Target demographic AB A+B A+B B B+C



Offer Type


Local Pizza Chains




Pizza Y Y Y Y

Italian Food Y Y Y Y

Oriental Pizza - - - - Y

Fast Food - - Y Y

Others Y Y

Example

Pizza Hut Papa Johnrsquos Sbarro Pepes Pizza Little Caesars

Thomas Tabasco

Lacasetta Cortigiano Pizza PomodoroCondetti

Pizza King Pizza Plus Cook Door

Majesty Dawwar

Source Orrani Consulting based on trade sources Note Many class A prefer local Italian chains over the international ones for pizza and there would be a

higher than average check in the former Table 222b Key International Pizza Chains Egypt

Name Logo No Outlets Comment

Pizza Hut wwwamericana-groupnetOur-BrandsRestaurantsPizza-Hutaspx wwwpizzahutcom

60

- Operating locally through Americana Group - Perceived as typical pizza outlet - Lately launched new pizzas joined with TV

commercials - Grabbing considerable market share - Within last 2 year a significant make over for outlets

ndash large volumes across Classes B+B- and C+C-

Dominos wwwdominoscom

15 - More Trendy than Pizza hut - Higher quality

Papa Johns wwwpapajohnsegyptcom

14

- Premium Quality Pizza - Prime location outlets - Slogan ldquoBetter Ingredients Better Pizzardquo

Little Caesars

wwwlittlecaesarscomeg

6

- Similar to Pizza hut

- Operating outlets in prime location

- Low profile minimal marketing investment

- Franchised by Al Dhabi for Tourism amp Restaurants

(Egypt amp Middle East)

- No Presence outside Cairo




Sbarro wwwsbarrocom

5 - Good Quality Pizza and Italian Food - Mainly Delivery rather than ldquoEat inrdquo

Peppes Pizza wwwpeppescom

1

- ldquo a unique blend of the American Norwegian and the Scandinavian international restaurants conceptrdquo Premium Pizza menu amp Italian Food

- Operating through a chain ldquoPeppes Pizza Ruby Tuesday

Source Orrani Consulting based on trade sources Table 222c Key Local Pizza Chains Egypt


Cook Door wwwcookdoorcomeg

28

- Part of International Company for Food Industries (ICFI)

- Part-owned part franchised - Strong on sandwiches also

Pizza King httppizza-kingco

25

- Acquired by Momen Group in 2007

Panda

15

Roma Pizza 2 Go wwwroma2gocom

12

Super Queen

9

Le Tabasco La Plage

7

Pizza Plus na 7 - Low Profile Business ndash less premium pizza offer ndash mainly offers ( eg BOGOF)




Majesty wwwmajestygrouporg

4

‒ Average Standard ‒ Less premium pizza offers ‒ Oriental pizza

Pizza Master

4

Source Orrani Consulting based on trade sources Note Others include Cortigiano La Casetta Majesty Mercato Italiano Bocelli La Mamma La Rosa

Pasta La Vista Pizza House Pizza Lazio Portobello Italiano Sidi Mansour Sky Lounge Tartino etc

Burgers amp Sandwiches Table 222d Key BurgerSandwich Chains Egypt

Name Logo No

Outlets Comment

Egyptian

Morsquomen momencoegypthtml

27 - chicken beef seafood sandwiches amp meals

Bon Appetit bonappetitcomeg

21 -

International -

McDonalds wwwmcdonaldsegyptcom

65 - Local franchise operator Man Foods

Burger King wwwburgerking-mecom

11 - Run by regional franchisee

Olayan subsidiary HANA International

Subway wwwsubwayarabiacom

4 -



Source Orrani Consulting based on trade sources Casual Dining Table 222e Key Casual Dining Chains Egypt

Name Logo No

Outlets Comment

Egyptian

Spectra Restaurant amp Cafeacute http spectrarestaurantcom

19 - Mix of food marketed on health eating platform

International

Casper amp Gambinirsquos wwwcasperandgambiniscom

3 -

Hardees wwwamericana-groupnetOur-BrandsRestaurantsHardee-saspx

35 - Run by Americana

Chilirsquos wwwamer-groupcomRestaurantsaspx

15 - Run locally by Amer Group

TGIF wwwamericana-groupnetOUR-BRANDSRestaurantsTGI-Friday-saspx


Fuddruckers

4 - Run by Arabian Food Supplies

(Naghi Group)

Ruby Tuesday httprubytuesday-egyptcom

3 - Franchised to United

Beverage amp Food Company (UBF)

Source Orrani Consulting based on trade sources Bakery Cafeacute Table 222f BakeryPatisserie Market Segmentation Egypt



Premium Chains Standard Chains Hotel Bakeries (individual) Other

La Poire - 50+ Shahd El Malika - 9

Baron Pastry Shop Boulangerie - Meacuteridien Heliopolis Cafeacute Corniche- Inter-Continental Delices Gourmet Shop - Hyatt Dusit Gourmet - Duset Al-Thani Garden Court Cafeacute - Ramses Hilton La Baguette - by Hilton Hurghada La Patisserie- JW Marriott Le Bec Sucreacute - President Hotel Le Four (Pyramisa) Le Gourmet (Movenpick Pyramids) Le Gourmet Shop (Ibrotel) Le Marcheacute (Fairmont) Le Marquis -Concorde El Salam Hotel Postres Patisserie amp Delicatessen Window On The Nile - Sofitel Gezira Zanzibar Cafeacute - Pyramids Park Hotel

Hotel Chains La Gourmandise Four Seasons Bakery by Marriott - 13

Monginis - 21 Classique - 9

Alain Le Notre - 8 La Pomme - 8

Koueider Abdel Rahim - 7 El Zahraa Bakery amp Pastry - 7

Saleacute Sucreacute - 7 Tseppas - 7

Madera - 6 Delight Sweet House - 6

Brioche Doreacutee Others (1-5 outlets)

Cakes House Cinnzeo Delight El Bohsali Fauchon Fino Bakery Gianola Goutheacute House of Donuts L Amandine Le Carnaval Le Papillon Maestro Patisserie Mandarine Koueider Marselia Patisserie Munchies Nuntees Pumpkin Rigoletto Sedra TBS - The Bakery Shop The Baker The Bread Basket Tortina

Kasr El Elysee - 6

El Domiaty - 6

Les Dames - 6

Tres Bien Patisserie - 6

Cakes House Others (1-5 outlets)

El Abd El Mousa Pastry Groppi La Reine Marselia Patisserie Palirma Rigoletto Royal Bakery Saber Samn Ala Asal Simonds Sweet House Twinky Venizia Zanobia Cookie Man La Farine Manna Tartino

Retailer Instore Bakeries

Carrefour Spinneys Hyper One Metro Market Gourmet Egypt Makro

Source Orrani Consulting based on trade sources Note Approximate number of outlets Table 222g Cafeacute Chains Key Players Egypt

Name No Outlets Comment

Egyptian

Cilantro

38 - Strong brand Trendy - Large No of outlets




Beanorsquos

20 - Similar to Cilantro - Trendy

Trianon

13 - Good heritage ndash no marketing activities

Makani

10 - Good consumer image

Coffee Bean and Tea Leaf

9 - Trendy youth oriented - Strong progress - Selective outlet locations ndash premium outlets

Grand Cafe

9 - Trendy youth oriented - Selective outlet locations ndash premium outlets

International

Costa Coffee

31 - Less Premium than other international brands

On the Run (Exxon-Mobil)

25 - Considerable volume - Trend youth oriented - Strong marketing activities -

Starbucks

21 - Selective premium locations

Source Orrani Consulting based on trade sources Restaurant Management Companies There are several key groups which manage foodservice chains in the market Two with a reasonably significant level of cheese usage are

bull Americana (see profile in section 224 below)

bull Amer (see profile in section 224 below)



Two others with lesser levels of cheese use are as follows Divine Worx SAE 159 26th July StFloor 2 Office 10 Zamalek Cairo Egypt W3 wwwdivine-worxcom Tel +20 2 27364894 Email infodivine-worxcom Divine Worx operates a home-grown portfolio of branded restaurants

bull Makani Makani Del Mar amp Makani Live freshly-baked breads healthy sandwiches and salads refined pastries sushi (positioned as healthy high quality affordable)

bull El Sit Hosneya Egyptian and Middle Eastern cuisine

bull Burger Joint burgers hot dogs

bull Zo East and South East Asian menu United Beverage amp Food Company 8 Sebaweh El Masry St Nasr City Cairo Egypt Tel +20 2 2263 8970 2402 3712 W3 wwwubf-egyptcom UBF is the local franchise for the US foodservice groups Cinnabon (cinnamon roll bakery) Carvel (ice cream) and RubyTuesday (casual dining with 3 restaurants)

223 Key Supply Chain Partners ndash Cheese for Foodservice

Cheese importers generally target industrial rather than foodservice customers as a result of limited trade The main companies handling cheese for foodservice (excluding those such as Fonterra) include Khaled Khoshala Import amp Export and Trade Agencies 8 El Ganzoury St PO Box 11381 Abassia Cairo Egypt W3 wwwkhoshalanet Tel +20 2 26831940 24842882 26858901 Contact Mr Khaled Khoshala Chairman Cell +20 12 210 6082 E-mail khoshalatedataneteg Khoshala produces cheese and imports dairy and other foods In the cheese sector it produces Avanti processed cheese white cheese and smoked cheese as well as engaging in cutrepack of cheddar Note see also profile section 225 Mido International Trading 8 Fathi Talarsquot Street



Sheraton Buildings Heliopolis Cairo Egypt W3 wwwmidocomeg Tel +20 2 226684128416 Contact Mohamed Fakhry Business Development amp Marketing Director Cell +20 12 22106143 Email mfakhrymidocomeg Mido is a leading importerdistributor of premium foods established in 1977 It also has an involvement in processing fresh salmon in Egypt for supply into retail under its own brand and also to foodservice customers such as Marriott Hotels around the region Activities are divided into divisions

bull Foodbeverage importing

bull Smoked salmon

bull Storagedistribution

bull Kitchen and bar equipment

bull Innovationrdquouniversity of coffeerdquo The company has a strong focus on foodservice and retail key accounts for example in 2008 it began distributing Corman butter to 5 star hotels around the country Food and beverage customers include Coca-Cola Illy Evian Haumlagen-Dazs Unilever Recent expansion includes

bull 2010 New Haumlagen-Dazs frozen stores

bull 2012 Extension of dry stores

bull 2013 New state-of art-frozen stores This will take its cold store capacity from 100 mt in 2009 to 3000 mt by 2016 In 2009 it represented 42 brands and imported 500+ containers by 2016 it expects these figures to have reached 52 and 750 respectively The company has imported cheese alongside other food products such as US beef veal smoked salmon salmon jam chocolate amp covertures pastry ingredients frozen fruits amp purees bakery mixes amp frozen bakery etc Soudanco Port Said Office 37 El Gomhoria st Port Said Egypt W3 wwwsoudancocom Tel +20 66 333 67 30 Contact Mr Ibrahim Soudan Chairman amp Owner



This firm supplies imported dairy products to the local retail and foodservice sectors It lists its facilities as

bull Warehouses six Dry Stores with an area 3800 m2 + one store in Port Said customs area

bull Cold Stores

- Four Cold stores (2-5 oC) with total capacity of 500 mt + 1 Cold store in Port Said custom Area Capacity 400 mt

- Three Reefer Stores (16oC humidity 50-60)

bull Transportation fleet

- 12 Vans for Key Account amp Catering Refrigerated Vans

- 14 Vans for Retailers

- Three Vans for Wholesalers It handles product on behalf of FrieslandCampina Fromalp and Kraft among others Target General Importers amp Distributors (TGID) 28 Abu El-fotoh Buildings Off Al Haram Road Giza Cairo Egypt Contact Mr Ibrahim Mohamed Ragy Import Manager Tel +20 12 777841 Cell +20 10 01420655 This company specializes in high end Italian cheeses such as Grana Padano ndash it indicates that it is not interested in US supply Note Another potential distributor may be Red Sea World (wwwredseaworldnet) however this firm proved uncontactable throughout the entire duration of this project and is therefore presumed to have ceased operating 224 Foodservice Customer Profiles

Most of the local foodservices businesses for which cheese forms a significant menu component are using local supplies This applies to locally owned operators and others for example

bull Papa Johns 99 local supplies virtually nothing imported product mainly from Khoshala and local trade

bull Roma Pizza 2 Go using 4-5 mt Mozzarella monthly all locally purchased There are a few instance of regional purchasing where decisions are made outside Egypt

bull Dominorsquos operates regional sourcing through its regional master franchiser which is based outside Egypt (Specialized Catering Services Establishment part of the Al-Jammaz Group see KSA report)

The following profiles highlight some targets which do use imported cheese 1 Amer Group 93 El Merghany St



Heliopolis Cairo Egypt W3 wwwamer-groupcomRestaurantsaspx Tel +20 2 26904081 26907940 26907941 26904082 Contact Ashraf Desouky Purchasing Supervisor Cell +20 111 0124066 Background Amer Group is active across a number of diverse areas such as construction hotels real estate and foodservice The latter activities comprise of five chains

bull Chilirsquos ndash franchised casual dining American and Mexican dishes by the end of Q2 2011 operating 17 restaurants with a total 4242 seats

bull Carinorsquos ndash franchised southern Italian launched 2001 by the end of Q2 2011 operating six restaurants with a total 1432 seats

bull Studi Masr ndash own chain Middle Eastern and Mediterranean cuisine launched 1996 by the end of Q2 2011 operating 11 restaurants with a total 2821 seats (nine owned two owned by 3rd party)

bull Alain LeNotre ndash Parisian bakerypatisserie chain launched in 2002 by the end of Q2 2011 operating 10 outlets with a total 1306 seats

bull Halket El Samak ndash seafood launched 2001 by the end of Q2 2011 operating three outlets with a total 478 seats

The group expanded its restaurantrsquos portfolio from 25 restaurants in 2005 to reach 49 restaurants by the end of Q2 2011 Their sales rose to EGP201 mn (USD333 mn) in 2010 from EGP123 mn (USD2038 mn) in 2007 However in Q1 2011 revenues from its restaurants portfolio declined by 25 compared to the same period in 2010 In H1 its sales were EGP74 mn (USD1226 mn) compared with EGP88 mn (USD1458 mn) in HI 2010 Currently Studio Masr is operating in Syria and KSA The company is scheduled to open its first restaurant in the UAE in 2012 with franchisee Balhasa Cheese Purchasing This contact is very secretive and confirms as follows only

bull Mozzarella from New Zealand

bull Cheddar from US and New Zealand Both are purchased through local contacts in Egypt Cheese usage is mainly at Chilirsquos where menu changes are dictated by the franchise owner rather than by Amer 2 Americana

35B Saray El Maadi Tower Corporate

Cornich El Maadi Cairo Egypt Tel +20 2 25284416789



The Egyptian Company for International Touristic Projects Restaurants Division

47 El Batal Ahmed Abdel Aziz St Mohandessein Giza Egypt Tel + 20 2 3300 7535 33051143 3346 1679 Contact Mr I Fayez Purchasing manager Background The group originated in Kuwait but is now publicly traded on the Kuwait Stock Exchange and one of the Middle Eastrsquos largest food businesses In Egypt it also has significant operations in feed poultry frozen potato products starch and glucose Its key statistics for 2010

bull Sales ndash US$ 24 bn

bull Profits ndash US$162 mn

bull Employees ndash 45000

bull Restaurants ndash 1200+

bull Factories ndash 17 Its growth in foodservice is apparent

bull Chains 1989 - 8 1994 - 9 1999 - 12 2004- 16 2009 ndash 19 2010 ndash 20

bull Restaurants 1989 - 170 1994 - 282 1999 - 463 2004- 669 2009 ndash 1157 2010 ndash 1233 Of the foodservice chains

bull The main examples are international franchises most notably from Yum (KFC and Pizza Hut the latter now in UAE Bahrain Egypt and Jordan) Hardeersquos TGI Fridays Baskin Robbins (Kuwait Egypt and Lebanon) Krispy Kreme Signor Sassi Costa Coffee Darden (Red Lobster Olive Garden Longhorn Steakhouse)

bull Others were locally developed by Americana such as Fish Market Chicken Tikka Grand Cafeacute Fusion Maestro (traditional French bakeryviennoiseriepatisserie) and Helw Al-Samadi (oriental bakerypastry shops)

Cheese Purchasing The foodservice operations buy mozzarella and cheddar for pizza and burger topping Usage of cheese is mainly for Pizza Hut KFC and some for Hardees The cheese is mainly imported through Fonterra but the grouprsquos own cheese business Green Land is approved as a local supplier Any US supplier with such approval would be able to compete for the business In terms of volumes requirements are given as follows

bull Mozzarella 20-25 mt monthly



bull American cheddar and Swiss cheddar 1-2 mt monthly (mainly white cheddar ) 3 Burger King Cairo Egypt W3 wwwburgerking-mecom Contacts Karim Yehia Email KYehiaBKEgyptcom Cell +20 100 2196256 Background There are around 11 local Burger King outlets managed by regional franchisee Olayanrsquos subsidiary HANA International Cheese Purchasing Purchasing is done by the country head office although Burger King uses only imported cheese from suppliers approved internationally by the group The principal requirement is for American amp Swiss cheese with six month shelf-life and in 10 kg packs Suppliers are chosen firstly on the basis of cost and secondly in terms of perceptions of flavorquality The main two suppliers used are Forsan and UFICLactalis (Pride) both in KSA Menu composition changes are in line with the evolution of grouprsquos international menu ndash there is no local intervention in this respect 4 Cook Door W3 wwwcookdoorcomeg Contact Ashraf Mahmoud Tel +20 10 5325810) Email Ash_Mahmoudhotmailcom Ahmed Mohamed Purchasing Manager Tel +20 10 7155100 Background Cook Door started as a family business but later became part of International Company for Food Industries (ICFI) This is a locally-owned holding company with various activities in foodservice delivery baker and also call centers Cook Door is a pizza chain with around 20 outlets which are part-owned part-franchised The menu offer is pizza but with a strong component of sandwiches also Cheese Purchasing Cook Door purchases cheese for use in pizza sandwiches and as burger toppings Its purchases are as follows

bull Cheddar sliced ~100 cartonsmonth 1800 slices per carton mainly sourced from PrideLactalis but also from Forsan in KSA

bull Mozzarella ~15 mtmonth sourced from Domty and Green Land it switched to these after experiencing problems with suppliers from Argentine



Product is standard six-month shelf-life The company describes its key purchase criteria as quality pricingflavor value for money An aspect of possible interest where new suppliers could help would be in technical support on mozzarella 5 La Poire 2 El Masanea St -in Front Of El Bassateen El Bassateen Cairo Egypt Tel +20 2 27024131 Contact Alaa Ibrahim Purchasing Manager E-mail alaaibrahim86yahoocom Background La Poire is one of Egyptrsquos leading bakery chains premium-positioned in the local market and with in excess of 50 outlets spread around Cairo and on the road to Alexandria selling products such as bread sandwiches and pastries Cheese Purchasing The company purchases 30-36 mt of cheddar annually sourcing from either New Zealand or Ireland It is quite open to sourcing from the US and is solely interested in the pricing and quality being offered 6 McDonaldrsquos 10 El Kamel Mohamed St Zamalek Cairo Egypt W3 wwwmcdonaldsegyptcom Tel +20 2 27361318 27361335 27369514 Contact Ismail Deaedar Purchasing Manager Cell +20 100 5666670 Background There are 65 McDonaldrsquos restaurants in Egypt run by the local franchisee Man Foods This company was established in 1994 as part of the Mansour Group specifically solely to operate the McDonalds business Mansour Group is a leading local distributor of FMCG and B2B brands Cheese Purchasing The chain in Egypt takes about one container of cheese monthly so ~18-20 mt comprising approximately 50 cheddar and 50 emmental This is sourced through United Food International in KSA which imports from New Zealand (mainly) and Australia The product is sliced in KSA then shipped to Egypt New suppliers need to be centrally approved by the group 7 Morsquomen Management Industial Zone



Obour City (Next to Amoun Factory) Cairo Egypt Tel +20 2 4610089234 W3 momencoegypthtml httppizza-kingco Contacts Mohamed Morsquomen Chairman and Co-Founder Mohamed Roza Technical Director Email Mrozamoemen-Groupcom Cell +2 012 2185607 Background Morsquomen is the leading Egyptian fast-foodQSR chain claiming to be 3rd in the local market with a 15 share It went from a single store set up in 1988 to currently serving more than 95 mn customers annually To support its expansion in 2008 it sold a 28 share in its business for USD485 mn to UK-based private equity investor Actis a specialist in emerging markets investments In late 2010 the company was indicating budgeted sales of about EGP1 bn (USD176 million) in 2011 from a targeted EGP750 mn (USD124 mn) in 2010 with an IPO of at least EGP400 mn (USD66 mn) salted for 20122013 The Morsquomen restaurants sell chicken beef seafood sandwiches amp meals a concept designed to take a different direction to the burger and hotdog outlets which had proliferated in Egypt in the 1980s The company claims a total of 55 stores its website details 19 in the Cairo area eight in Alexandria and six others spread across other cities such as Marina Port Said Mansoura It also has around eight in Bahrain three in Libya two in Sudan one each in Qatar UAE and Malaysia In addition to the main chain the group operates

bull Planet Africa a themed premium casual dining restaurant concept established in 2004 three in Egypt one in UAE

bull Pizza King a pizza chain acquired in 2007 and with around 25 stores in Cairo and Alexandria the group claims to have tripled its sales since the acquisition

The restaurants are supplied through the grouprsquos own factory Al Motaheda for Foods established in 1999 to produce bakery beef poultry and seafood products The company also produces and markets the Three Chefs foods brand which is found in Egypt Kuwait and Qatar Cheese Purchasing Morsquomen imports cheese for pizza and sandwiches The product is sourced from the Netherlands and France and there is no experience or knowledge of US dairy products Key requirements are as follows

bull Mozzarella 40 mtmonth for toppings at Pizza King local product mainly Domty plus small quantities from Green Land (however quality is not stable year round from these sources)

bull Cheddar

- 7-8 mtmonth used for toppings on sandwiches in the Morsquo men chain product has a standard shelf-life of 6 months and can be plain or a cheddarEdam blend



- used to import from US which was preferred because IWS to reduce kitchen preparation time has also sourced from PrideLactalis in KSA but switched lately to Best CheeseLactalis in Egypt however it is experiencing issues in packing (slicing wrapping not good causing food losses)

- ldquoWould be ideal if contacted for a period of 6 months that would stabilize food costrdquo

- ldquoWould like to operate directly with various suppliers to avoid monopoly situationvendor pressurerdquo

bull Parmesan minimal volumes used for Planet Africa currently French sourced In general Morsquomenrsquos purchasing criteria are first quality then pricing Having the right melting characteristics is also important espeically for cheddar where its appearance on the sandwich needs to be right As this is a local company with no international regulations menu changes depend entirely on the marketing department Morsquomenrsquos and the companyrsquos RampD department are the keys to product approval Any technical support provided by a vendor would be appreciated The company would also be interested in cheese sauce (Alfredo) in small volumes The brand Classico is highly appreciated (combining parmigianino provolone ricotta and romano) Another area of interest could be blue cheese sauce for pizza topping ndash the estimated volume would be two small containers (mixed) monthly

23 Food Industry Ingredients Demand

231 Overview ndash Local Food Processing Sector

2311 Innovation

There remains very little innovation in the market as the implied higher costs render innovation an non-economically viable option Afforability is key Processors have limited options as the population lacks a significant middle class who are able to purchase new products There is a middle class which has enthusiastically embraced Western lifestyles and represents a dynamic consumer market however this market is rather small Consumers have negligible knowledge of protein and product differentiation tends to focus on other product features such as specific types of grain for example and products are typically marketed including dates for energy rather than a protein source Overall efforts to encourage more value-added activities and innovation in Egyptrsquos industry have made little headway In the form of the Industrial Modernization Centre or IMC (wwwimc-egyptorg) a large fund from Europe was used to upgrade manufacturing capabilities across various industries particularly with improved export performance in mind The organization produced many studies and strategies and the local food industry was one area of focus However artisanalcottage industry still prevails in the local food processing sectors Other problems have included chronic bureaucratic inefficiency which acts as a brake on businesses the inability of the majority of companies to invest in research and the under-developed distribution channels The IMC is regarded as having had little impact and is currently inactive after the revolution allegedly as a result of corruption issues



2312 Linkages with Other MENA Markets

Most of the companies with operations around the MENA region tend to be multinationals retailers or businesses involved in primary processing (fruit and vegetable freezingcanning sugar refining edible oils etc) Relatively few are focused on secondary food processing of those that are most are internationally-owned with some significant regional players very few are Egyptian-owned Thus even Juhayna the leading locally-owned processed food business in Egypt generates over 90 of its revenues in Egypt with the rest from exports mostly to Libya as well as to Jordan and Mauritania its exports have been hit in 2011 due to the conflict in Libya The key exception to this situation is Savola group which operates in several key divisions

bull Savola Foods including edible oils foods and sugar

bull Savola Retail including Panda and Hyper Panda

bull Real Estate Sector (Kinan International)

bull Savola Plastics

bull Savola Franchising (fashion)

In addition it has key stakes in two major regional food processors

bull Almarai in KSA (30)

bull Herfy Foods Company (47) Table 2312 Food Processors in Egypt ndash Wider MENA Connections

Type of Company Processed Food Manufacturing Foodservice Operations in Egypt amp MENA Region

EuropeanUS-based Multinationals

Chipita (Greece) wwwchipitacom

Bakerypatisserie production including Egypt Edita KSA Modern Food Industries

Danone (France) Egypt yogurt production establishing dairy farm KSA dairy JV with Al-Safi Israel partner with Strauss Dairy Algeria Danone Djurdjura Algeacuterie Morocco dairy JV with Centrale Laitiegravere Tunisia dairy JV with Stial SOCOGES Iran Danone Sahar (dairy infant formula)

Fromageries Bel (France) Egypt processed cheese (1 plant) Morocco processed cheese (1 plant) Algeria processed cheese (1 plant) Syria processed cheese (1 plant) Iran processed cheese (1 plant)

HJ Heinz (USA) Egypt Cairo Food Industries (ketchup condiments and sauces) Oman Omani Euro Food (baby foods)




Kraft Foods (USA) Egypt (Cadbury confectionery Family Nutrition biscuitscakes ndash including former Danone Mashreq) Bahrain cream cheese canned cheese Tang powdered beverages KSA Nabisco cookies (JV with Olayan)

Lactalis (France) Egypt processed cheese (3 plants) KSA United Food Industries CorpUFIC (processed cheese) Algeria processed cheese (1 plant) Syria processed cheese (1 plant)

Masterfoods (USA) Egypt chocolate Israel Wrigley gum UAE Mars chocolate confectionery

Nestleacute (Switzerland) Dairy Egypt Israel Syria Tunisia Morocco UAE Chocolate confectionery Israel UAE Baby food (Cerelac) KSA

PepsiCo (USA) Egypt Beyti (yogurt) ndash part of International Dairy amp JuiceIDJ (JV with Almarai) Jordan Teeba ndash part of International Dairy amp JuiceIDJ (JV with Almarai) KSA International Dairy amp JuiceIDJ (JV with Almarai)

Unilever (UKNetherlands) Egypt foodservice products inc cheese sauces

Regional Companies operating in Egypt

Arabian Food Supplies (Naghi Group) wwwnaghi-groupcomhospitality

Foodservice franchisee for Fuddruckers (Egypt KSA UAE) Chilirsquos (KSA) On The Border (Egypt KSA UAE)

Americana (Kuwaiti group with strong regional presence) wwwamericana-groupcom

Egypt Greenland (cheese) Senyorita (savory snacks) Food processing

KSA National Food Company (cakes processed meat products) Kuwait Kuwait Food Company (processed meat products)

Egypt numerous including KFC Hardees Taco Bell TGI Fridayrsquos Pizza Hut Costa Coffee Krispy Kreme etc

Foodservice

Bahrain Pizza Hut Jordan Pizza Hut KSA Pizza Hut Hardees Kuwait Krispy Kreme Signor Sassi UAE Pizza Hut TGIF + franchise agreement with Darden group for adding 3 new chain restaurants (Red Lobster Olive Garden and Longhorn Steakhouse) exclusively across 7 countries Kuwait Saudi Arabia United Arab E i Q B h i E L b ( i 2011)

Gandour (Lebanon) wwwgandourcom

Chocolate confectionery Lebanon Egypt (Advanced Food Industries) KSA (MAJ Food Distribution Systems)




GICC Galadari Brothers Group (UAE) wwwgaladarigroupcom

Manufactures ice cream in UAE and runs Baskin Robbins chain across UAE KSA Oman Qatar Bahrain and Kuwait

Patchi (Lebanon) wwwpatchicom

Chocolate confectionery Lebanon Egypt KSA UAE Syria

Egyptian Companies operating Regionally

Amer Group wwwamer-groupcom

Studio Masr operating in Syria and KSA To open 5 new Studio Masr restaurants in UAE with franchise Balhasa over the coming 5 years 1st site 2012

Bon Appetit bonappetitcomeg bonappetitcomeg

KSA- 2 restaurants

Cook Door (International Company for Food IndustriesICFI)

Egypt 28 restaurants Libya 2 restaurants (now defunct) Qatar 28 restaurants Syria 2 restaurants

Savola Group wwwsavolacom

KSA stakes in Almarai and Herfy Foods

Source Orrani Consulting based on trade sources Note excluding agriculturalprimary processingpacking 232 Key Customer Issues

2321 General Comments

General Comment The Egyptian market has been in a state of some turmoil since the revolution in February 2011 Economic collapse has led to a significant decrease in demand resulting in the closure of smaller companies Most food processors rely on imported product SMP is produced locally by Dina Farms but in low volume and reportedly with very inconsistent quality and availability Green Land dries whey powder for its own use and local sale However these lines of supply are the exceptions to the general rule



The recently increased Egyptian milk prices suggest that Dina is likely to prioritize liquid sales especially given the strength of its main customers Juhayna and Danone (though the latter is currently building its first dairy farm in Egypt a departure from its normal practice) In 2010 one analysis of milk prices noted that at a level of EGP21kg (USD03kg) the producers were losing LE040kg (USD007kg) as their costs meant the price should be EGP25 (USD041kg) Prices have been rising significantly in 2011 however During Q1 the leading processor Juhayna was buying farm milk at EGP27kg (USD045kg) compared with EGP26kg (USD043kg) in December 2010 and in Q2 the price rose to EGP3kg (USD050kg) In summer 2011 a new raw milk pricing formula was agreed by most dairy farms and dairy processors based on allowing adjustments in the prices based on changes in feed costs and taking into consideration the impact of seasonality As a result the price of raw milk formally increased to EGP325kg (USD054kg) effective 1 July 2011 The difficult political and economic situation has underlined the key criterion on which purchasing decisions are made that of price Most trade sources indicate openness to source from any suppliers which provide the requisite product at the right prices US included As one put it a simple commodity product without any value-add is preferable ndash competitive pricing and logistics are the real drivers for both market growth and vendor success US Specific Comments Generally US ingredient products appear well regarded Areas of concern in respect to US cheese and ingredient supply are as follows

bull Logistics issues delivery terms reaching 45-50 days compared with two weeks from Europe One source noted that a leading US supplier had supplied product which took four months to reach them Note A transit time of around six weeks was cited by one trader as Fonterrarsquos only weakness in supplying the market

bull Fluctuating prices prices can be ldquounrealisticrdquo and not competitive with other suppliers notably Europe and New Zealand One contact the leading SMP trader Amrity noted that Fonterra makes a strong point of being committed to contracted pricing regardless of fluctuations in international pricing Comparisons with Fonterra are key Price issues are compounded by US suppliersrsquo less flexible financing expectations traders complain that US suppliers expect cash advances or LOCs whereas EU suppliers give credit and use Coface to guarantee their exports

bull Varying availability a belief that US suppliers are uncommitted and see the Middle East as a surplus disposal stock clearance market meaning that it does not deliver product sustainability year round US perceived as a seasonal supplier

bull Poor packaging (no clear instructions on labels to highlight product usage application) poor documentation which is often not country-specific or dual language or simply poor product format Note One aspect to the latter is the US practice of exporting cheese in random weight units which causes difficulties when compacting curd after draining Compared to Fonterra blocks which are exactly 20 kg US shipments are +- 20 kg (say 18-21 kg) The accompanying Bills of Lading and payment are calculated on overall tonnage shipped Individual cartons often lack the weight printed on the outside package This causes problems with customers who work with very specific volume formulas as well as with customs authorities who tend to be suspicious of undefined carton net weights

bull Sparse marketing Lack of marketing activities and understanding customer needs ndash there is an ongoing lack of customer orientation recognized by local traders and end users ldquoBetter payment terms ndash Better communication with clients ndash Participation in key marketing eventsrdquo



ldquoCloser contacts and more care from supplier and frequent meeting to understand customer needsrdquo

This suggests a requirement for more involvement in trade fairs and marketing events (AnugaSialGulfood) which are the key means through which the local buyers source information on prospective suppliers It also implies that a more consistent presence will be important allowing closer contacts with clients to understand their requirements and work on solving market issues

This is the approach taken by other leading suppliers into the market

Key players mentioned in discussions include

bull Fonterra (full range)

bull Bega Cheese (Australia)

bull BBA (ie Lactalis France)

bull Arla (sourcing from Denmark and Sweden now also Hansamilch in Germany)

bull Lactosan (cheese powder from Denmark)

bull BMI (Bayerische Milchindustrie) Rucker (strong on low heat SMP) ndash both from Germany

bull Hoogwegt (Netherlands)

bull Emmi and Hochdorf (SMP from Switzerland)

bull FrieslandCampina (Netherlands now with a direct presence via its partnership with formulacreamers producer LactoMisr)

bull Agropur and Parmalat (Canada)

bull Bartex (Poland)

bull Gay Lea (Canada - MPCs) 2322 SMP

Interviews with customers show US product is generally regarded well and sometimes very highly in terms of quality ldquoNo significant difference between US and NZ SMP so farrdquo This is confirmed by discussions with the key importers Hool and Amrity these generally regard logistics issues as the only serious problem area Some sources commented that providing sufficient attention to end specifications is key in the market especially in the yogurt sector where leading players put a lot of effort into maintaining long shelf life Purchasers are therefore looking for a high level of product stability The US needs to assure its product will perform well in lab testing in order to be considered The leading importer and processed cheese producer Sakr noted that many local milk powder users prefer low heat SMP or WMP They tend to take the view (to some extent correctly) that these products are

bull Rarely obtainable from the US (pricing not competitive with international pricingrdquo)



bull Widely available from Europe New Zealand Australia and Canada and also at very competitive prices from the Ukraine and India

Another cheese producer Green Land indicated that it tries to source SMP from Germany when possible because of its requirement for low heat variant 2323 Whey Powder

The main specific issue here is color ndash the US product is typically dark yellow whereas local users prefer the whiter whey powder which is often available from European mozzarella production There is also feedback that the US whey powder is saltier in taste than the (preferable) EU product 2324 Cheese

US cheddar has done well in the market over the last two years but was the source of a number of comments suggesting that it is not so well regarded Sources indicate that Fonterras product is better across most criteria ndash taste color (less redorange in color) smell texture and dry matter content as well as pricing 233 Key Ingredient User Sectors

2331 Liquid milk

Sector Trends Consumption of drinking milk remains skewed to product bought loose consumers tend to regard this as lower cost healthier and better-tasting so it still makes up around 85 of the market UHT product makes up an estimated 98 of the packaged milk market There are only three players which include Dina Farms Labanita and Lactalis Sales of packaged milk are estimated at 90000-100000 with 10000-11000 mt of flavored milk Figures from retail audits are a little lower as would be expected Table 2331 Market Trends Liquid Milk Egypt 2002-2010

Mt 2008 2009 Jan-Jun 2010

Plain milk 78433 72547 55041

Flavored milk 10549 10244 8841

Source AC Nielsen Sales are strongest in urban centers and locations remote from local dairying (which is concentrated in the Delta) At EGP75-8 (USD125-135) per liter it is still a relatively expensive product for many locals (Juhayna reportedly achieves a 35 margin on its UHT milk products) It should be noted that UHT milk has proven an important export product for the Egyptian dairy industry The main destinations for this product have been firstly Libya and then a range of other countries around the region and as far afield as West Africa and Mauritius However this trade has been severely hit in 2011 due to the unrest in Libya and to a less extent also in the Yemen



Juhayna introduced packaged milk in 1987 and was also the first to launch flavored and other value‐added milk products It has maintained a leading market position in both plain (68-69) and flavored packaged milk (72) Its key competitors are Enjoy Beyti and Labanita in plain milk and Enjoy Faragello and Beyti in flavored milk Juhaynarsquos plain milk is marketed as a premium product in four varieties full cream half cream skimmed milk and foam milk It is targeted at consumers who are concerned about the health aspects of milk products and are willing to pay a premium for quality It operates with three plain milk brands

bull Juhayna milk ndash its original product popular amongst the less cost conscious consumers

bull Bekheiro milk ndash launched in 1999 as a quality product but more affordable due to its less costly package targeted at female consumers aged between 23 to 45

bull Halibo ndash launched in 2010 as a ldquovaluerdquo brand in plastic pouches even lower prices than Bekheiro

Juhayna markets two flavored milk brands

bull Mix in 200 ml cartons

bull Jino in 125ml targeted at children aged 3-7 years to build loyalty for future purchases Dairy Ingredients Usage UHT milk is a key application area for imported SMP Juhayna dominates this sector and since Juhayna has been disappointed with US product (as a result of poor lab testing) one would assume that there are low levels US penetration in this market Juhayna reportedly uses around 10000 mt of milk powder annually divided roughly into 6500 mt SMP and 3500 mt WMP Much of this product is used in its UHT milk production The company is making a major effort to become a more vertically integrated operator and its subsidiary Al Enma for Agricultural Development is currently establishing its own dairy and feed farm so this may limit its future requirements to some extent Other UHT producers using SMP include Enjoy (around 900 mtyr rates US product highly) Beyti Green Land (Americana) Faragallo (using 1200 mtyr ndash but across a range of end applications) 2332 Yogurt

Sector Trends At around 3kg yogurt consumption is low on a per capita basis both compared with other countries nearby (eg Saudi Arabia 5kg Oman 7kg) and more developed markets Recently it has been the fastest growing category in the local dairy market and divides into two broad sectors

bull Cup yogurts sales of packaged product are estimated at 95000-115000 mt with artisanal products (sold loose including in retail stores and only slightly cheaper) coming close to doubling this volume Consumers have been increasingly opting for packaged product as it is available in many more varieties such as plain fruit flavored skimmed sweetened and digestive



bull Drinking yogurts this is a smaller sector of perhaps 4000-6000 mt the products are known generically as Rayeb This was pioneered by Juhayna in 1990 and is popular with adults seeking relief from stomach and digestive problems Since 2002 Juhayna has been selling a healthy fruit-flavored variant in this area called Zabado designed to appeal to young adults in the 15-35 age bracket seeking a healthy lifestyle

Consumption is particularly seasonal compared with other dairy products locally with usage peaking in Ramadan the market leader Juhayna typically makes 36 of its yogurt sales in Q3 with which Ramadan mainly coincides Sales tend to be lowest in Q1Q2 Retail audit data shows accelerated growth in both volume and value in 2010 (increased GRPs contributed to this growth) Figure 2332a Trends Industrial Spoonable Yogurt 2007-2010

Source AC Nielsen Table 2332b Market Shares Yogurt Egypt 2010

Volume CupSpoonable Drinking (rayeb)

Juhayna 36 57

Danone 34

NestleacuteLactel 12 41

Lactalis 9

Beyti 5

Enjoy 2

Labanita 2 2

0

10

20

30

40

50

60

70

80

90

0

1000

2000

3000

4000

5000

6000

7000

8000

Valu

e

Volu

me

GRPs Sales Volume 1000 KGSLTR Sales Value 1000000 LE



Other neg

TOTAL 100 100 Source Orrani Consulting based on trade sourcesMEMRBAC Nielsen Note Juhayna took 89 in 2009 but lost share dramatically in 2010 after a fire damaged its main yogurt

plant Egyfood It revived its sales as the yogurt market rose by around 20 in 2010 and by using support production lines as well as bringing in new ones The company is planning to build a major new yogurt plant which should come on-stream in 2013

Dairy Ingredients Usage Yogurt is an important and fast growing application area for imported SMP However once again the domination of the sector by Juhayna ndash which expresses significant disappointment at results of quality tests on US product ndash suggests that the level of US penetration here is very low This is particularly the case when one considers that the no2 player Danone uses little SMP preferring to use local milk and adjusting where required with custom MPC blends In 2010 it used 600 mt SMP but this has dramatically declined after introducing Grade A Milk Other usage by Danone in 2010 included 50 mt whey permeate and 50 mt of IDIrsquos Promilk YB800 (MPC) (Danonersquos usage will change in line with the grouprsquos Project Platinum this year which entails a new approach aimed at achieving effective utilization of proteins as one of ldquo6 levers to build a competitive advantageldquo) 2333 Cheese

Sector Trends The Egyptian cheese sector divides into 2 key segments and 2 smaller ones

bull White cheese

- The largest segment by far and a staple in local daily dairy consumption eaten by all segments of the local population significant exports around the region

- Comprising products such as Istamboli (a white table cheese) Feta Thalaga and Domiati

- With sales of industrial product estimated at around 120000-130000 mt and artisanal sales of 300000 + mt in addition

- In commercially produced white cheese Americana is the key player with its Green Land operation a business which it acquired in 2003 Its key competitors are Arab Dairy (the local partner for Fonterra) and Juhayna (Domty formerly known as El Masreya until its acquisition in 2004)



Figure 2333a Market Shares White Cheese Egypt 2009

Source AC Nielsen

bull Processed cheese

- Retail audits indicate that the Egyptian retail market for processed cheese expanded in 2009 to just over 35000 mt before declining to some 32000 mt in 2010 These volumes are believed to be somewhat conservative as coverage is variable and there are foodservice sales in addition to this However the real driver of the sector is exports ndash in 2010 around 120000 mt with key markets being Saudi Arabia Iraq and Libya

- Most production is of portions and blocks (estimated 75) but this has been quite steady and in recent years there has been very strong growth in production of spreads (25) Whilst available slices are minor reflecting the lack of a local sandwich culture

Others 39

Americana 27

Arab Dairy Co 12

Domty 10

Misr October 7

Juhayna 5



Figure 2333b Trends Egyptian Processed Cheese Market 2006-2010

Source Orrani Consulting based on AC Nielsen and trade sources

- In terms of local sales of processed cheese the key producers by far (mainly for export) are the 2 French-owned operations of Best Cheese (Lactalis) and Bel Egypt (Fromageries Bel) followed at some distance by Arab Dairy and Mashreq (the local subsidiary of French group Bongrain) There are many others with small operations including a new entrant in 2010 Brego (triangles)

Figure 2333c Market Shares Processed Cheese Egypt 2009

Source AC Nielsen

Best Cheese - 48

Bel - 16

Arab Dairy - 10

Mashreq - 4

Other - 22



bull Mature natural cheese

- A sector estimated at 15000 mt

- The key variety is Roomi a hard salty yellow cheese that is aged over 120 days and is ideal for grating over cooked dishes limited exports only

- Key players are Americana (Green Land) Faragalla Riyada Brego ICFI

bull Fresh cheese

- Recent years have seen increasing production of mozzarella for the local foodservice sector

- Key players are Americana (Green Land) Arab Dairy (Panda brand) a new entrant in 2010 was Brego (mozzarella capacity 6000 mtyr)

Dairy Ingredients Usage Processed cheese is a key area of cheese usage In processed cheese production cheese is usually categorized into three distinct groups functionality flavor and filler

bull Functionality cheese is usually a product that is considered a young curd and will help with a productrsquos melt shred and stretch

bull Flavor tends to come from product that is older and has developed a cheese flavor or from a specific type of cheese (eg Swiss)

bull Filler Tends to come from product that has fallen out of specification and is used as cheap solids

Around the region in general typical formulations contentsrsquo of cheese and powdered dairy might include

bull For SOS including functional cheese (1 to 3 months) 475 filler cheese 24 MPC70 3

bull For Triangles (LVQR) including functional cheese (1 to 3 months) 13 Flavor cheese (10 months) 9 Edam 12 lactose (for sweetening) 35 MPC70 3

bull For IWS including functional cheese (1 to 3 months) 35 flavor cheese 15 filler cheese 10 MPC70 3

bull For cream cheese (White Puck style) cream cheese base 70 filler cheese 15 Dairy ingredient usage in local cheese production broadly comprises

bull For processed cheese various formula of natural cheese of some variety along with SMP caseins (acid or rennet) and MPCs

bull For white cheese SMP and whey powder Internationally processors are trending more to the use of varying MPCs providing protein but also a percentage of fat Many such as Bel have been slow to use MPCs but have been moving to replace SMP with WPC35 and expect to use an increasing amount of MPCs MPC is attractive over SMP for suppliers as it avoids having to find a home for extra fat and historically SMP prices are volatile



The leading manufacturer is Best Cheese Company (BCC) a subsidiary of Lactalis It is a major user of SMP at 12000 mtyr ndash it uses some in yogurt but most goes into its processed cheese production which also absorbs significant quantities of cheese an estimated 1200 mtyr SWP and also MPC70 The scale of its requirements have made it open to all sources both dealing directly and with local importers US penetration is generally judged to be high in SMP and cheddar for processing but low in whey (mainly from the EU) caseins (Europe New Zealand) and MPCs (New Zealand Europe Canada) 2334 Ice Cream ndash Sector Trends

The retail market for industrially produced ice cream is estimated at 45000 L with Nestleacute accounting for an estimated 80-85 share There are only two other players of any significance

bull Hawaii Company ndash wwwhawaiiegyptcom

bull Iceman (The Egyptian Co For Food industries or EDC group) The Swiss grouprsquos dominant position has been built up over many years through the acquisitions of Industrial Du Froid in 1988 the Dolce ice cream business from Nile Co for Food Industries in 1996 and the license for the Moumlvenpick super premium ice cream brand in 2004 As a result the ice cream sector accounts for around ⅓ of the grouprsquos Egyptian business At the start of 2011 Nestleacute announced a 3-year plan to invest CHF 160 million in its existing factories and distribution centers in Egypt creating 500 new jobs in addition to its 3000-strong workforce The focus was to increase production in Egypt home to Nestleacutersquos only facility outside Europe for the production of the Moumlvenpick range This was then set back by the political disturbances in 2011 during which the grouprsquos three local factories were closed Dairy Ingredients Usage Estimated usage by Nestleacute in its ice cream production of the target dairy ingredients in this study (so excluding milk fats) is approximately as follows

bull Whey-based milk replacer ndash 1600 mtyr (from Bel Industries (France)

bull SWP ndash 100 mtyr

bull SMP ndash 55 mtyr It appears that very little if any US product is used in ice cream production in Egypt 2335 Chocolate

Sector Trends Chocolate production in Egypt is mainly for the local market ndash exports certainly occur but are a limited feature The local chocolate market was assessed at 56365 mt in 2009 worth EGP12 bn (USD209 mn) Value growth over 2007-2009 was around 17 compared to only 7 in volume terms



Molded chocolate products feature the highest penetration by premium brands (~75 of sales) followed by countlines (~55 of sales) and wafers (~25 of sales) Table 2335a Market Trends Chocolate Egypt 2002-2010

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mt 41184 48730 51630 59386 42326 49380 46179 56365 39702

US$ mn 1168 1022 1136 1567 1224 1521 1615 2145 1598

Source AC Nielsen Figure 2335b Market Volume Trends Chocolate Egypt 2002-2010 (mt)

Source AC Nielsen There are four main manufacturers

bull Kraft Foods (with the acquired Cadbury Adams business)

- 29 share in 2009 (but -61 vs 2007 the decline driven by price increases implemented in early 2008 to improve profitability)

- based on 45 in molded products and 53 in countlines

bull Shamadan ndash 15 + market share

bull Masterfoods ~ 10 market share competing strongly with heavy media support with 23 in molded products and 31 in countlines

bull Ocean Foods ~ 9 market share

41184

48730 51630

59386

42326

49380 46179

56365

39702

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10



Dairy Ingredient Usage The key player Cadbury (Kraft) has traditionally sourced WMP from approved sites with key suppliers being Arla BelgoMilk plus traders Hoogwegt and Interfood Its usage is around 3000 mtyear ndash compared to only 200-300 mt SMP The SMP along with other minor inputs (whey AMF) is sourced locally on an ad-hoc basis from local traders such as Abou El Hool El Amrity The company has had a policy of switching from using WMP to SMP+AMF for Cadbury Dairy Milk Molded Chocolate amp Countline Chocolates when this combination is more cost-competitive and using whey powder for all compound chocolate instead of WMP and SMP where possible Mars uses no WMP but does import SMPWheyAMF through Fonterra Lactalis and IDI Its SMP usage is 700-800 mt for 2011 Examples of local ingredient formulations for Cadbury and Mars are shown in Appendix 6 US share is believed to be low in supplying ingredients for chocolate manufacture 2336 Gum

Sector Trends

The gum market is estimated at 74 bn packs in 2009 worth EGP3395 mn (USD61 mn) Value growth over 2007-2009 was around 6 whilst volume actually contracted by around 1 Around 56 of the category value is in mass market low value lines of around EGP005 putting pressure on profitability Table 2336a Market Trends Chewing Gum Egypt 2002-2010

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mn packs 4554 5576 6556 7017 6849 7788 6971 7614 3731

US$ mn 408 349 372 358 444 552 537 623 392

Source AC Nielsen



Figure 2336b Market Volume Trends Chewing Gum Egypt 2002-2010

Source AC Nielsen Note Volume in mn packs The leading player is Kraft Foods (with the acquired Cadbury Adams business) taking a market share of around 40 and no strong competitors Dairy Ingredient Usage There is no dairy ingredient usage known in this sector ndash certainly not in the production activities of the market leader Kraft (Chiclets brand) 2337 Candy

The candy market has been growing steadily over recent years as audit data demonstrates Table 2337a Market Trends Candy Egypt 2002-2010

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mn packs 4467 4672 5107 5749 5528 5984 5480 6757 4013

US$ mn 506 396 410 510 490 593 684 796 509

Source AC Nielsen

4554

5576

6556 7017 6849

7788 6971

7614

3731

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10



Figure 2337b Market Volume Trends Candy Egypt 2002-2010 (mn packs)

Source AC Nielsen Dairy Ingredient Usage This is an area of usage for SMP and sweet whey powder An example of the local ingredient formulations for Cadburyrsquos caramelchocolate brand Eclairs is shown in Appendix 5 US share of supply is 2nd to Europe for SMP but very low in whey powder 2338 Biscuits

Sector Trends The biscuit market is estimated at 75594 mt in 2009 worth EGP11 bn (USD196 mn) Value growth over 2007-2009 was around 25 compared to only 5 in volume terms Salty products feature the highest penetration by premium brands (~80 of sales) followed by plain (~50 of sales) coated (~40 of sales) and filled (~10 of sales) Table 2338a Market Trends Biscuits Egypt 2002-2010

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mt 48409 59750 58587 55548 45454 67522 71372 74683 54134

US$ mn 899 846 808 875 738 1177 1697 1922 1360

Source AC Nielsen

4467 4672 5107

5749 5528 5984

5480

6757

4013

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10



Figure 2338b Market Volume Trends Biscuits Egypt 2002-2010

Source AC Nielsen There are 5 main manufacturers with Bisco Misr and Kraft Foods the leading players

Figure 2338c Market Shares Biscuits Egypt 2009

Source Orrani Consulting based on trade sources

48409

59750 58587 55548

45454

67522 71372 74683

54134

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10

Bisco Misr 169

Kraft Foods 151

Biscato 79

Shamedan 7

Ocean Foods 45

Others 486

Value Bisco Misr 177

Kraft Foods 149

Biscato 52

Shamedan 78 Ocean

Foods 37

Others 507

Volume



Dairy Ingredient Usage The buscuit sector involves usage of SMP and whey powder US supply is estimated as 2nd to that from the EU for SMP in this category but very low in whey powder 2339 Cakes

Sector Trends The cake market is estimated at 46500 mt in 2009 worth EGP06 bn (USD115 mn) Value growth over 2007-2009 was around 17 compared to 12 in volume terms Plain cakes feature the highest penetration by premium brands (~40) followed by layered cakes (~25) rolled cakes (~10) and filled (negligible premium segment) Table 2339a Market Trends Cakes Egypt 2002-2010

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mt 13063 16814 17222 14673 25507 38046 44080 46362 33272

US$

348 337 325 326 543 865 1099 1166 868

Source AC Nielsen



Figure 2339b Market Volume Trends Cakes Egypt 2002-2010

Source AC Nielsen The market is dominated by Edita with a 62 market share the company has been making efforts in the last 2 years to market products at higher price points (the EGP1 barrier) There has been trend towards to cupcakes with Edita developing a increasingly diversified portfolio including products like Hostess and Twinkies Figure 2339c Market Shares Cakes Egypt 2009


Others 7

KraftCadbury 2

Monginis 6

Shamedan 10

River Foods 13

Edita 62

13063 16814 17222

14673

25507

38046

44080 46362

33272

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10



Cakes ndash dairy ingredient usage This sector involves usage of SMP and whey powder US supply is estimated as 2nd to that from the EU for SMP in this category but very low in whey powder 23310 Infant Nutrition

The only producer of infant formula in Egypt is Lacto-Misr which competes with imported lines This business is unlikely to represent an opportunity however in 2010 Lacto-Misr signed a collaborative agreement with FrieslandCampina Kievit to produce beverage creamers for the Dutch group The two companies work together closely with ingredients mainly supplied from the Netherlands as a result Milkcereal blended baby foods are produced locally by Nestleacute and the minor local producer RiRi In recent years the Nestleacute production of Cerelac has required around 500-600 mt SMP 234 Barriers to Trade

2341 Tariffs

At some stages such as in early 2008 high inflation has prompted the government to announce waivers on products including dairy However most ingredients enter the market tariff free or incur relatively low rates in doing so Applied tariffs are as follows

bull 04021021 SMPWMP ndash 0

bull 040410 Whey powder ndash 0

bull 04049010 Natural milk constituents packs lt10kg ndash 2

bull 04049090 Natural milk constituents packs ge10kg ndash 5

bull 040610040620040630040640 Cheese ndash 10

bull 04069010 Other cheese packs ge20kg ndash 2

bull 04069090 Other cheese packs lt20kg ndash 10

bull 3502 Milk albumins ndash 5

bull Lactose

- Pharma grades 17021110 1702191 ndash 2

- Other grades 17021190 1702199 ndash 10 Portwarehousing costs are generally insignificant and absorbed by the trader In what is a very price sensitive market the role of various European traders can provide a barrier to market development on occasion mainly in the commercial terms involved They typically require 2-25 commission (Interfoods (Holland) Hoogwegt (Holland) Rumi DK (Denmark) Ecoval Eximo (Germany) Going via a local trader is likely to mean a commission of only 1-15 This problem can go beyond just price Erie (France) has been requesting $100 commission per tonne for supplies from one US dairy supplier and wonrsquot allow any direct communication between the end customer and the producer



Package size has been one NTB which has affected entry of US cheese supply to the market US equipment constraints at the plant level often means US cheese has not been measured in metric sizes This has presented a barrier as the import tariff incurred by any cartons lt20 kg net weight is much higher than that for cartons ge20 kg Most USproduct has tended to be packed in 40lb (18 kg) cartons 2342 Free Trade Agreements

Egypt is a major trading partner for the EU in the Southern Mediterranean region and is part of the Euromed process for creating a free trade area in the Mediterranean Significant progress in this direction was made with an Association Agreement signed in June 2001 and in force since 2004 It establishes a free-trade area between the two partners with the elimination of tariffs on industrial products and significant concessions on agricultural products Under the agreement the EU-Egypt bilateral trade has nearly doubled Subsequent negotiations to further increase market access in bilateral farm trade were concluded in 2009 and an agreement on agricultural processed agricultural and fisheries products entered into force on 1 June 2010 This provides EU suppliers with preferential terms on 0406 10 ndash Fresh (unripened or uncured) cheese including whey cheese and curd (less than 20 kg) The preference gives a 50 reduction of the MFN customs duty and a TRQ of 1000 mt However the impact seems likely to be limited given the low level of imports in this category Other preferential trade arrangements entered into by Egypt include

bull An FTA with the European Free Trade Association (EFTA) - Iceland Liechtenstein Norway and Switzerland ndash this became operational in 2007

bull An FTA with Mercosur signed in 2010 this immediately eliminated tariffs on butter

bull The Agadir Agreement and FTA with Jordan Morocco and Tunisia which was enacted in 2007 and is open to participation by all Arab countries in the Arab League and the Greater Arab Free Trade Area (GAFTA) This agreementrsquos terms are supportive of closer links to the EU FTA and so potentially controversial in respect of the proposed US-Middle East Free Trade Area (MEFTA)

235 Key Supply Chain Partners ndash Ingredients

1 Abou El Hool (Sphinx) Mansoura Egypt Tel +20 50 6907056 6901167 Contacts Alaa Bassiouny Chairman Cell +20 12 210 4734 Email abouelhool70hotmailcom El Hool is a major dairy importer as follows

bull SMP 16000 - 20000 mtyr (US ndash 5000 mt)

bull Whey powder 3600-4000 mt (Canada ndash 2500 EU ndash 1500 US None) Abou El Hool believes US product is held in high regard and would be interested in approaches from suppliers of MPC70 (possible demand 2000 mt) and butter (3000 mt mainly requiring yellow product)



2 AGI ndash Advanced Global Industries 6th October City 1st Industrial Zone Plot 43 Giza Cairo Egypt Tel +2 02 8340775 Contacts Khaled Azzam Chairman Cell +20 012 3108482 Email khaledazzamagiegyptcom This business has capital of EGP5 mn (USD850000) and is owned 90 by the Azzam family 5 by the Tawfik family and 5 by other shareholders With a background in general products trading it was set up in May 2004 to focus on supplying the local food industry with dairy blends using whey to serve as milk replacers The demand for blends in the local market proved insufficient so the company has increasingly become involved in exporting into the surrounding market and into Africa down as far as Angola (with an export department opened in 2009) and in straight trading of dry dairy ingredients ndash low heat SMP WMP whey It also does some re-packing ndash for instance instant WMP into sachets and cans The export activity is designed to take advantage of Egyptrsquos membership of Comesa and Euromed and is mainly in filled milk powder SMP replacers and SMP It has proven successful and the company has achieved growth of around 30 in 2011 despite the difficult market It would very much welcome creative partnerships and technical support in achieving progress in these areas and is very receptive to the idea of a JV with a foreign dairy supplier to this end 3 Al Fayrouz Co for Trade 11 Dr Osman Amin Mohammad Refaat St Cairo Egypt Tel +20 2 2630648567 Contact Ehab El Said Chairman Cell +20 12 22105121 Al Fayrouz imports dairy ingredients as follows

bull Cheese mainly cheddar for processing with white product preferred 1000-1200 mtyr from Ireland (700-900 mt) and the US (300 mt)

bull Whey powder 100 mt

bull SMP 250 mt The company has a good impression of US dairy products and would be interested in contacts with more US cheese suppliers 4 Al Garas Food Ingredients (Bell Foods) 3 Ali Amin Maher St Attarin Alexandria Attarin



Egypt 21411 Tel +20 3 4853131 algarasbellfoodscoeg david_edwardbellfoodscoeg

Bell Foods dairy imports are approximately as follows

bull SMP 3500 mtyr

bull Lactose 50-70 mtyr

bull Sweet whey powder 800 mtyr

bull Whey permeate 1500 mtyr

The company imports mainly from the EU but is very open to US suppliers in areas such as butter permeate and (white) cheddar Its experience of US supply has suggested that quality is Ok ndash only pricing and logistics are the issues 5 El Amrity Mansoura Egypt Tel +20 50 226 0510 (office) Cell +20 12 222 0192

This company is a major dairy importer as follows

bull SMP 10000 mtyr (with significant US volume via Dairy America)

bull Whey permeate 3000 mtyr 5 protein

bull Whey powder 1000 mtyr 13 protein These are variously sourced from Fonterra (~7 Items) Europe the US and Canada The company has a good impression of US dairy products and would be interested in approaches from US suppliers of SMP MPC70 cheddar (white) and butter (yellow) 6 Khaled Khoshala Import amp Export 8 El Ganzoury St Abassia Cairo Egypt Tel +20 2 682 7135 6831940 Contact Mr Khaled Khoshala Chairman Tel +20 2 487 0530 Cell +20 12 210 6082 It imports SMP - 600-700 mtyrs It also imports MPC70 taking around six containers annually however this is used for its own production not sold into the market 7 Light Food Company 3E2 Takseem El Lasalky behind Caltex station New Maadi Cairo Egypt Tel +20 2 25170096



Contact Mahmoud El Meery General Manager E-mail mahmoudmlinknet Light Food trades in a variety of food ingredients with dairy alongside emulsifiers texturizers vitamins pectin etc Dairy ingredients include milk powders sweet whey powder and DWP It notes the local requirement for low- and medium-heat SMP ndash not the high-heat varieties sometimes pushed from US suppliers Light Foods is well acquainted with US and European product and is essentially positioned as a supplier of well targeted application-oriented smaller volumes achieving slightly higher prices than the market norms One area of activity is whey-based blends for luncheon meat (whey soy stabilizers emulsifiers sodium phosphate) The company is also involved in butter repacking with a new free trade zone recently approved in Alexandria 8 MAZEX Export ndash Import El Wataneya Complex Buildings Suite 213 2nd Floor Extent of 14th of May Road Smouha Alexandria 21519 Egypt Tel +20 3 3823024 Mazex is a family-owned trading business importing a wide range of dairy and other food ingredients It is not looking for new supply lines The company claims a 32 market share in SMP ndash suggesting 10000 mt + It also deals in whey and lactose It stresses that Fonterra provides very strong competition and that the transit time is a big issue for US supply 9 STI Said Trading amp Industrial 3 Ahmed Pacha St Garden City Cairo Egypt Tel +20 2 796 2574 Contact Mr Hassan S Said Vice President Tel +20 2 795 8476 Mr Mohamed M Said Chairman Said Trading imports 5000 mtyr SMP and also deals with whey and lactose Its key suppliers are Ecoval and the Irish Dairy Board Potential areas of interest could be cheddar butter around 82 fat content or AMF

Egypt amp Saudi Arabia Cheese amp Dairy Ingredients Chapter 3 Saudi Arabia


3 Saudi Arabia

31 Foreign Trade

311 Cheese

3111 Import Trends

KSA imports of cheese have risen from 102726 mt in 2005 to 114119 mt in 2010 ndash representing a CAGR of 2 The main increases have been in ldquoOtherrdquo (+15) gratedpowdered (+13) and HSH (+8) whilst the key decline has been in imports of processed cheese Table 3111 KSA Cheese Imports by Type 2005-2010

2005 2006 2007 2008 2009 2010 CAGR

Fresh cheese and curd 4061000 5942 - 4073 3532 3683 3725 -9

Grated or powdered cheese 4062000 1507 - 1831 2089 2316 2745 13

Processed cheese not gratedpowdered 4063000 54721 - 55169 48353 55335 49771 -2

Fresh fermented cream cheese 4069010 10267 - 9692 9034 8886 8834 -3

HSH 40690200 22756 - 28394 33842 28756 33688 8

Other cheese 4069090 7533 - 6821 7742 11164 15436 15

TOTAL 102726 - 105980 104592 110140 114199 2

Source Ministry of Agriculture 3112 Supply Trends

Key supply sources for the market based on 2010 volumes are on a broad basis as follows

bull The top four world suppliers EU US New Zealand Australia ~ 42000 mt

bull Egypt ~ 25000 mt

bull Bahrain ~ 14000 mt In considering supply into the market from the main four international sources there is a clear trend in which growth in US volumes has occurred at the expense of declining volumes from the EU New Zealand and Australia Much of this shift is price-driven however it also reflects the fact that Australia is no longer the marketrsquos no 2 supplier as Kraftrsquos supply into the local market (where it has a strong leading position in canned cheese) has shifted mainly from Australia to the grouprsquos new plant in Bahrain



That plant manufactures jars squeeze bottles and cans with a capacity of ~ 50000 mt (manufacture of IWS and SOS products remained in Australia) It produces ~11500 mt processed cheddar cheese (in steel cans) and ~14500 mt cream cheese spread (in glass jars) Much of this is supplied to KSA so Australian supplies of canned cheese in particular (04063011) have trended down from around 5500 annually to just 910 mt in 2010 (since the plant opened in 2008) Table 3112a Cheese Exports to KSA by Key Suppliers 2006-2011

2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 25952 23614 16855 18773 18936 12809

New Zealand 11417 13062 10018 12913 9155 5734

US 1472 2096 6075 2288 6987 8539

Australia 21021 18880 9750 4706 7182 4318



EU27 43 41 39 49 45 41

New Zealand 19 23 23 33 22 18

US 2 4 14 6 17 27

Australia 35 33 23 12 17 14


Source Eurostat USDA Statistics New Zealand ABS Note Ranked by 2010 volume rounded figures For US 2011 data is Jan-Oct For New Zealand 2011 data is Jan-Sept As indicated above Bahrain as become a significant cheese supplier into KSA and Egypt also holds a similar position (based mainly on processed cheeses) (Note a full breakdown of KSA cheese imports by country of origin is shown in Appendix 9)



Table 3112b Cheese Exports to KSA by Egypt amp Bahrain 2005-2010 (mt)

2005 2006 2007 2008 2009 2010

Egypt

Fresh Cheese And Curd 4061000 0 0 0 0 591 410

Processed Cheese Not Grated Or Powdered 4063000 9298 0 15119 20132 18939 13850

Fresh Fermented Cream Cheese 4069010 369 0 1001 799 532 1382

HSH Cheese 04069020 5628 0 5104 5010 5880 7495

Other Cheese 4069090 0 0 834 488 1117 1817

Total 15295 0 22058 26429 27059 24954

Bahrain



HSH Cheese 04069020 0 0 0 58 87 0

Other Cheese 4069090 0 0 0 0 0 279

Total 0 0 0 6222 13310 13700

Source KSA Ministry of Agriculture Note No data available for 2006 EU cheese exports to the market mainly comprise of processed cheeses or other cheeses often used locally for producing processed cheese Table 3112c EU-27 Cheese Exports to KSA by Type 2006-2011


Cheese -

Fresh cheesec 040610xxxx 4140 1997 2347 4289 3503 1639



Blue vein 040640xxxx 11 18 5 62 35 26


Of which

Cheddar cheese 04069021 1167 359 617 1318 1435 1235

Edam cheese 04069023 665 249 266 452 644 498

Gouda cheese 04069078 274 217 201 178 244 243




Kashkaval 04069029 32 10 46 4 196 857

Sheepbuffalo 04069050 13 65 253 380 442 320

cheese fat content lt40 water content 52-62 04069087 1963 1886 1489 1330 1123 269


Total 25952 23614 16855 18773 18936 12809

Source Eurostat The supply from New Zealand is mainly cheese for processing ndash of 5734 mt supplied in Q1-Q3 2011 3640 mt (635) has been bulk cheddar Likewise for Australian supply with the reduction of the canned cheese requirement bulk cheddar now predominates at 3003 mt (695) of the 4318 mt supplied in January-August 2011 US supply is also geared mainly to the local processed cheese sector as shown below Table 3112d US Cheese Exports to KSA by Type 2006-2011

2006 2007 2008 2009 2010 Jan - Oct 2011

0406901000 - Cheese Cheddar 904 1134 7482 1837 27172 37230

0406200000 - Cheese All Kinds 5965 10199 5970 11151 11596 21765

0406909550 - Cheese Inc Mixt 5555 8036 35498 6602 12810 8426

0406300000 - Cheese Processed 2290 740 7539 754 8439 9507

0406100000 - Fresh Cheese 00 854 3541 2522 9852 8029

0406400000 - Cheese Blue-Vein 00 00 723 16 00 00

0406906500 - Cheese Colby 00 00 00 00 00 433

Total 14715 20964 60753 22882 69868 85388

Source USDA 3113 Cheese Usage and Projections

KSA imports of cheese have risen from 102726 mt in 2005 to 114119 mt in 2010 Good growth is anticipated in the categories connected with the expanding foodservice demand (particularly mozzarella and to some extent cheddar) and the processed cheese production sector with a further increase to 136506 mt as a result



Table 3113 Projected KSA Cheese Imports by Type 2005-2010

2010 2015 Projected CAGR

Fresh cheese and curd 4061000 3725 4113 2

Grated or powdered cheese 4062000 2745 4421 10

Processed cheese not gratedpowdered 4063000 49771 53618 15

Fresh fermented cream cheese 4069010 8834 8615 -05

HSH 40690200 33688 45082 6

Other cheese 4069090 15436 20657 6

TOTAL 114199 136506 36

Source Orrani Consulting based on Ministry of Agriculture and trade sources 312 SMP

3121 Trade Trends

The following breakdown of SMP imports is provided through official statistics This appears unreliable so a better guide is provided by export data to the market On this basis import demand is around 37000 mt for 2010 Table 3121 KSA Imports SMP 2005-2010 (mt)

2005 2006 2007 2008 2009 2010

New Zealand 31897 0 34709 38854 36113 18470

Australia 4892 0 11465 9443 14063 10682

Belgium 0 0 1036 1064 0 1175

Holland 2958 0 1494 3635 2010 811

France 347 0 423 170 839 760

Germany 1024 0 420 498 165 640

India 603 0 215 1846 0 464

Ireland 566 0 155 192 0 446

Poland 536 0 297 0 237 399

Latvia 0 0 0 0 170 150

Argentina 267 0 199 0 106 127



2005 2006 2007 2008 2009 2010

Switzerland 121 0 0 0 0 123

Finland 875 0 0 0 125 115

Uruguay 0 0 125 76 0 100

Singapore 0 0 0 0 0 100

Malaysia 436 0 0 0 0 0

US 899 0 654 533 0 0

Canada 22 0 0 0 0 0

Denmark 440 0 258 96 0 0

UK 200 0 167 0 0 0

Czech Republic 637 0 0 725 0 0

Brazil 0 0 81 0 0 0

Ukraine 0 0 1448 0 0 0

Oman 0 0 0 53 0 0

Other 383 0 329 0 214 174

Total 47103 0 53475 57185 54042 34736

Source KSA Ministry of Agriculture Note Official import data also shows a total of 24040 mt of WMP imported in 2010 led by New Zealand

at 17890 mt however New Zealand export data to KSA under HS 0402210019 shows a total of 28900 mt in the same year

3122 Supply Trends

New Zealand dominates SMP supply although the EU share has increased significantly in 2010-2011 Australian product makes up a decreasing part of the growing supply whilst US product is negligible Table 3122 SMP Exports to KSA by Key Suppliers 2006-2011

2006 2007 2008 2009 2010

Jan-Aug 2011


New Zealand 19240 23169 22137 17472 19406 21578

EU27 2344 3699 3869 5234 10117 10326

Australia 6291 7025 6740 6351 6617 4904

US 1753 788 809 - 271 68





New Zealand 65 67 66 60 53 59amp

EU27 8 11 12 18 28 28

US 6 2 2 - 1 0

Australia 21 20 20 22 18 13


Source Eurostat USDA Statistics New Zealand ABS Note Ranked by 2010 volume rounded figures For US 2011 data is Jan-Oct For New Zealand 2011 data is Jan-Sept 3123 SMP Usage and Projections

Overall usage is broadly estimated to split approximately as follows Table 3123 SMP Usage and Projections 2010-2015


1 White Cheese 51 19000 24249 5


3 Yogurtlaban 11 3975 5073 3

4 Drinking amp concentrated milks 11 3975 5575 5

5 Ice cream 4 1500 1914 5


6 Other 4 1500 2007 6

Total 100 37000 48501 Source Orrani Consulting based on trade sources 313 Whey

3131 Trade Trends

KSA is a minor user of whey powder with usage of WPCs negligible at present The EU supplies most of the whey powder whilst New Zealand is the main supplier under code 040490 This includes some MPCs however Table 3131 Whey Imports by Type KSA 2007-2010



2010 2009 2008 2007 Country

501 582 294 439 France

Whey Powder 04041000

400 0 322 414 Germany

375 506 656 696 Poland

362 0 0 445 Turkey

343 456 152 0 Australia

341 0 0 0 Ukraine

0 0 113 113 India

0 0 221 290 Holland

0 0 0 250 Czech Republic

0 0 250 0 Finland

0 227 0 0 New Zealand

582 831 543 418 Other Countries

2904 2602 2551 3065 Total

2894 1488 1346 1241 Kuwait

Other Whey 04049000

836 2118 2146 1697 New Zealand

531 257 0 112 France

0 300 200 200 Australia

0 0 502 626 Finland

0 0 0 183 UK

0 0 0 200 Poland

0 0 461 0 Republic Of Yemen

0 163 0 0 Canada

0 59 0 0 Denmark


7017 7252 6489 5066 Total Source Ministry of Agriculture 3132 106BSupply Trends

Different and probably more reliable data ndash albeit excluding the apparent supply from Kuwait suggested above ndash is available from the key world supply sources



Table 3132a Whey Exports to KSA by Top 4 Key Suppliers 2006-2011

Description HS Code 2006 2007 2008 2009 2010 Jan-Aug 2011

Total whey products

Chapter 4 plus Chapter 35 WPCWPI

6193 6552 6102 5874 6143 5182

Source Eurostat USDA Statistics New Zealand ABS Note Ranked by 2010 volume rounded figures For US 2011 data is Jan-Oct For New Zealand 2011 data is Jan-Sept The following table provides a breakdown of the data by the main HS codes and suppliers The dominance of the EU in this trade is clear and highlighted in the subsequent market share table Table 3132b Whey Exports to KSA by Key ProductsSuppliers 2006-2011

Description HS Code 2006 2007 2008 2009 2010 Jan-Aug

2011

EU27

Whey powder 040410xxxx 2857 3315 2666 2302 2715 2211


Albumensprotein concentrates amp isolates 350220xxxx - - - - 1 -

3445 3841 2925 2653 2965 2890

USA

Whey powder 0404104000 406 172 372 128 140 73

Modified whey nesoi 0404100850 40 18

WPC34 0404100500 - - 47 - 20 -

Natural milk constituents 040490xxxx - 6 16 9 - -

Albumensprotein concentrates amp isolates 350220xxxx - - 18 20 - 16

406 178 453 157 200 107

New Zealand

Whey powder 040410xxxx - 201 - - - -


Albumensprotein concentrates amp isolates 350220xxxx - - - - - -

2043 2383 2383 2421 2827 2180

Australia




2011

Whey powder 040410xxxx 299 150 341 643 151 5



299 150 341 643 151 5

Total ldquoTop 4rdquo 6193 6552 6102 5874 6143 5182 Source Eurostat USDA Statistics New Zealand ABS Note Ranked by 2010 volume rounded figures For US 2011 data is Jan-Oct For New Zealand 2011 data is Jan-Sept Table 3132c ldquoTop 4rdquo Market Shares in Whey Exports to KSA 2006-2011

2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 3445 3841 2925 2653 2965 2890

New Zealand 2043 2383 2383 2421 2827 2180

US 406 178 453 157 200 107

Australia 299 150 341 643 151 5



EU27 56 59 48 45 48 56

New Zealand 33 36 39 41 46 42

US 7 3 7 3 3 2


ldquoTop 4rdquo Total 100 100 100 100 100 100 Source Eurostat USDA Statistics New Zealand ABS Note Ranked by 2010 volume rounded figures For US 2011 data is Jan-Oct For New Zealand 2011 data is Jan-Sept 3133 Whey Usage and Projections

There is limited use of whey products locally mainly whey powder and permeate WPCs are minor but demand for WPC35 should grow with the INPC business over time



Given the low base and moderate growth the market is projected to reach total whey imports from the top 4 key suppliers of 7840 mt in 2015 Note MPCs supplied from Fonterra especially to Sadafco are likely included in these figures Table 3133 Projected Whey Exports to KSA by Top 4 Key Suppliers 2015

Description HS Code Mt 2010 2015 Projected CAGR


Source Orrani Consulting based Eurostat USDA Statistics New Zealand ABS trade sources 314 Lactose

3141 Supply Trends

Similarly to Egypt KSA is a minor but growing user of lactose The US has come from taking one third of the market to well over two thirds with strong growth in 2010 being largely sustained in 2011 Table 3141a Lactose Exports to KSA by Key Suppliers 2006-2011



Lactose lt99 170219xxxx 1 6 4 - 17 85

219 175 77 374 423 351

USA Lactose gt= 99 170211xxxx 61 - - 2 - -

Lactose lt99 170219xxxx 52 46 9 91 1241 859

113 46 9 93 1241 859

Australia Lactose gt= 99 170211xxxx - 34 - - - -

Lactose lt99 170219xxxx - - - - - -

- 34 - - - -

Total ldquoTop 3rdquo 332 255 86 467 1664 1210 Source Eurostat USDA ABS Note Ranked by 2010 volume rounded figures For US 2011 data is Jan-Oct New Zealand has no trade with Egypt in lactose



Table 3141b ldquoTop 4rdquo Market Shares in Lactose Exports to KSA 2006-2011

2006 2007 2008 2009 2010

Jan-Aug 2011


US 113 46 9 93 1241 859

EU27 219 175 77 374 423 351

Australia - 34 - - - -



US 34 18 10 20 75 71

EU27 66 69 90 80 25 29


ldquoTop 3rdquo Total 100 100 100 100 100 100 Source Eurostat USDA ABS Note Ranked by 2010 volume rounded figures For US 2011 data is Jan-Oct New Zealand has no trade with Egypt in lactose 3142 Lactose Usage and Projections

Lactose usage in KSA is very low trade sources suggest that the main application is in chocolate production although the leading producers indicate limited usage Certainly there could be a good opportunity to lessen the requirement for sugarfructose in some products such as cakes if prices were to allow Growth of the INPC formula business would certainly increase requirements which seem to be constrained by a lack of knowledge of the product Given the low base and moderate growth but assuming INPC expansion the market is projected to reach 2124 mt from the top 4 key suppliers by 2015 Table 3142 Projected Lactose Exports to KSA by Top 4 Key Suppliers 2015

Description HS code Mt 2010 2015 Projected CAGR

Total lactose 1702 1664 2372 7

Source Orrani Consulting based Eurostat USDA Statistics New Zealand ABS trade sources



32 Foodservice ndash Cheese Demand


The KSA foodservice market is expanding reflecting the countryrsquos economic and demographic growth About 70 of Saudis are in their teens and exhibit a preference for Western style foods over their parents generation Another demand driver for foodservice is the increasing number of foreign pilgrims (5 mn + annually) visiting the two holy cities of Mecca and Madina on the Haj There has also been a significant increase in the number of resorts many built on the Red Sea and the Arabian Gulf catering mainly to Saudis and expatriate residents As a result international and local fast food chains continue to expand and are found in major urban areas both the former and some of the latter import a significant share of their required ingredients There is also a good selection of Turkish Iranian Lebanese and Jordanian restaurants evident in the market Recent developments have included

bull Papa Johnrsquos closed all of its 25 units in connection with a franchisee restructuring A 75-unit development agreement was signed as part of the restructuring with new unit development beginning in 2011

bull Subway via its master franchisee Shamel Food Company opened 11 outlets in 2011 bringing its total to 43 sites in KSA The brand also has four mobile-cart outlets deployed throughout Riyadh Dammam Al Khobar Jubail Jeddah Al Madinah Rabigh Taif Abha Khamis Mushayt Qasim Jizan and Tabuk

bull Dairy Queen (Berkshire Hathaway) has opened its first three DQ Grill amp Chill locations in Riyadh These are managed by franchisee Al Safwa Food Group a retail holding group previously involved in the local casual dining segment the plan is for 32 DQ Grill amp Chill sites in KSA by 2015

bull El Chico opened its first restaurant in Riyadh with initial plans for a total of five in KSA This is in partnership with Safari Group is a Saudi group which recently formed a new company Unique Hospitality Company (UHC) to create a chain of boutique restaurants representing selected and exclusive global brands

bull The New Zealand gourmet burger chain Burger Fuel has opened its 3rd outlet in the east of the country

bull IHOP announced plans in mid-2011 to open 40 new restaurants in the Middle East region including in KSA in a deal with Kuwaiti franchise operator MH Alshaya Company

bull Egyptian real estate operator Dar Al Mimar Group has been awarded the franchise for Cook Door pizza restaurants in KSA and the Gulf (except Qatar) due to open 20112012

bull Beef lsquoOrsquo Bradyrsquos the Buffalo-style chicken wings casual dining restaurant signed a deal with master licensee Thimar Investment to open the first restaurant location in Al-Khobar KSA by July 2012 with plans to open units in all of the main provinces of KSA by 2013

There are a number of established restaurant chains operating in the market which are not likely to use significant cheese volume due to their menu orientation or their scale



Locally Owned

bull Al Tazaj ndash mainly chicken-based menu 73 restaurants

bull Albaik ndash fried chicken 31 restaurants

bull Al-Nafoura ndash Lebanese and seafood 6 restaurants

bull Dajen ndash chicken dishes varied sandwiches 14 restaurants

bull Shawermatac ndash the Middle Eastern staple of shwarma (doner kebab) International

bull Burger Fuel

bull Costa Coffee

bull DQ Grill amp Chill

bull El Chico

bull Fuddruckers

bull KFCndash 86 stores

bull On The Border (Tex-Mex)

bull Popeyes Louisiana Kitchen

bull Paul

bull Port City Java

bull Ruby Tuesday ndash 3 stores

bull Schlotzskyrsquos

bull Starbucks

bull Taco bell

bull Tony Romarsquos

bull Outback Steakhouse The following table summarizes the key chains where cheese is used



Table 321 Key Restaurant Chains Using Cheese

Type of Food Key Player Number of Stores Local Franchisee(s)

Burgers

Burger King 65 Olayan

Herfy 186

McDonalds 102 Reza Food Services ndash 46 Western region Riyadh International Catering ndash 56 other regions

PizzaItalian

Pizza Hut (YUM) 161 Bashar amp Awni Shaker ndash 32 Jeddah Mawarid Food ndash 106 other regions

Dominos 80 Alamar foodsAl-Jammaz

Little Caesars 60 Bazbaza International

Pizza Inn 41 United Food Co

Perkyrsquos Pizza 8 Fawaz Alhoakir

Baak 7

Papa Johns Closed 25 outlets 2011reopening

Casual dining

Kudu 147

Hardees 42 Americana

TGIF Americana

Steak House 11 Alfa FoodsAl Faisaliah

Sandwichbakery Subway 43 Shamel Food Source Orrani Consulting based on trade sources 322 Key Supply Chain Partners ndash Cheese for Foodservice

Most foodservice cheese is supplied by the local Lactalis subsidiary Pride or by Forsan Food The latter imports from France and the Netherlands and shredspacks locally and claims to be an accredited supplier to most of the main fast foodQSR chains operating locally including Pizza Hut McDonalds Papa Johns and Herfy Almarai imports around 2000 mtyr of mozzarella in blocks (mainly from Europe) for use as ingredients or for shredding and sale (having taken over this latter role from its former co-packer Forsan)



There then exists a range of importersdistributors dealing in cheeses mainly for retail but also for foodservice 1 Abdullah Mahmud Abbar amp Sons Group Po Box 2495 Jeddah KSA Tel +966 2 6369368 Contact Omar Mahmoud Cell +966 533533571 Email omarmahmoudabbarcoldstorescom This company formerly operated as Abbar amp Zainy Cold Stores until the Zainy family was bought out by the Abbar family in 2011 The group has existed for over 50 years and has diverse operations in areas ranging from import distribution through to supermarkets travel agencies and electronics The grouprsquos division Abbar Foods handles a range of chilled and frozen products and supplies nationwide with a fleet of 450+ trucks working from a network of 16 cold store depots around the country It deals in finished product only with about 90 of sales to retail (key accounts ldquoself-servicerdquo ndash meaning large independent supermarkets Bagallas ndash the small stores) and 10 to wholesale and foodservice The company is strong in the cheese sector with customers that include among others

bull FrieslandCampina handling the Frico HSH brand which is strong locally

bull Bongrain handling the Milkana brand from the French grouprsquos subsidiary in Egypt Mashreq Des Produits Laitiers (MDPL)

It could have a potential interest in US suppliers of products such as

bull Cheddar (for retailfoodservice not further processing)

bull Specialty cheeses

bull Double cream white cheese (if price competitive)

bull Mozzarella (but only if the product is positioned at the low end and is cheaper than current supply from Germany)

bull Butter 25 kg blocks 2 Al Faris Al Arabi Trading Company Po Box 16864 Riyadh KSA Tel +966 1 2653443 W3 wwwalfarisfoodscom wwwnesmacom Contact Samal Kahry Al Faris Al Arabi is part of the diverse local business group Nesma It has operated since 1989 and handles a wide food range including cheese alongside other items such as condiments and sauces olives mushrooms frozen vegetables and pickles



3 Arrow Food Distribution Industrial Area Phase 4 PO Box 5981 Jeddah KSA Tel +966 2 6080608 Arrow is part of a Lebanese group It is one of the leading FMCG distributors in KSA handling distribution of Bel and Fonterra products amongst others The company is unusual in having a very strong focus on foodservice as well as retail 4 Ba Samah Trading Co Ltd 427 Al-Samh Company Properties Arsquolaam Al Islam Al Andalus Jeddah 21411 KSA Tel +966 2 6606668 W3 wwwbasamhcom This company is believed to have imported cheese in the past but no longer does so It does handle a range of chilled and frozen non-dairy products however alongside dry groceries 5 Gulf Central Trading Co Al Sulay Dis Riyadh KSA PO Box 53649 Postal Code 11593 W3 wwwgulfcentralcomsa Tel +966 1 2444040 Contact Zeeshan Chohan Sales Manager Abdul Raoof Purchasing Manager Email infogulfcentralcomsa Gulf Central handles cheeses alongside a range of other foods It has dealt with European cheeses for around 20 years and has begun importing US cheeses in recent years These products are sold into retail catering and fine dining mainly around KSA but with a little trade into Bahrain also In the cheese category its main area of activity is mozzarella where it deals with a wide range of products Other varieties it deals in are mascarpone and HSH cheeses such as blue cheese and emmental 6 Saudeast Quality Food Co Ltd Idriss Moukhtar Building Hind Bint Al Waleed Street Hay Al Musfah PO Box 6372 Jeddah 2144 KSA Tel +966 2 636528463707276378104 Contact Khaled Idriss Moukhtar Email saudeastestzajilnet



Saudeast handles imports of cheese from the US Germany and Denmark The company is particularly interested in suppliers of mozzarella from the US (frozen 2 kg or 23 kg blocks) It main focus is on supplying foodservicecatering customers 7 Thamer Est for Vending Machines and Foodstuff AL Umam Commercial Center Office No 111 Al Siteen Street Al Malaz Po Box 88859 Riyadh 11672 KSA W3 wwwthamervendcomsa Tel +966 1 4728870 Contact Mr Jalal O Thamer General Manager Cell +966 50 5515141 Email jalalthamerthamervendcomsa Thamer deals with the vending channel but also in a wider range of foodstuffs including cheese meat and prepared meals It handles cheese from Europe (Italy France Spain) for supply into mainly retail but also some foodservice customers The company is open to approaches but has been extremely disappointed with US suppliers in the past In general the view is that US suppliers lack understanding of how to operate in the market they visit trade shows and then provide no support activity in terms of marketing budget training samplingpromotions etc US product is acceptable and the price is good but these problems have meant no progress with US supply over the last five years 8 Triple Quality Food Company PO Box 12867 Jeddah 21483 KSA Tel +966 2 69800246918240 Contact Laine Tareke Operation Manager Cell +966-505593383 Email laine33tyahoocom Triple Quality operated as International Food Company through the 1990s selling US beef and dairy products In 2003 it had to move when a Panda supermarket took over its site and also changed name to the present Nowadays the company focuses on simply importing and selling cheese and (frozen) butter to the catering sector notably to its key customer Saudi Airlines but also to pastry producers and 5-star hotels It formerly dealt with mozzarella but lost this business to larger repackers and so now it handles only Oldenburger gouda from Nordmilch in Germany (15kg blocks 1 year shelf-life ndash 2 to 3 containers per month) The company also supplies butter in 10g portions and 25kg blocks Customers use butter in bulk for pastries The company operates cold stores in Jeddah and in Dammam A sales-team of three work from Jeddah with an additional two covering the Dammam and Riyadh regions There could be an interest in US suppliers of mozzarella for catering pizza and also production of cheese pies



9 Yousuf Ahmed Al-Gosaibi Company (YAG) PO Box 5540 Dammam 31432 KSA Tel +966 3 8457222 8457111 W3 wwwgosaibicomsa Contact George Johnson Commercial Manager Email georgejohnsongosaibicomsa YAG is a diverse local trading group which has operated a food division for around 30 years Key supply relationships are with European confectionery manufacturers such as Bahlsen and Guylian The company used to have a strong business importing various European cheeses however this business has been halted and replaced with importing processed cheese from Egypt The company also handles sterilized canned cream from Nestleacute YAG remains skeptical that US cheeses can compete on price but is open to offers 323 Foodservice Customer Profiles

The following are profiles of key foodservice operators known to use cheese 1 Baak W3 wwwbaakcomsa This chain is locally owned and specializes in chicken lasagna sandwiches and pizza It has seven outlets according to its website 2 Bazbaza International Trading Co Ltd (Little Caesars) P O Box 898 Riyadh 11313 KSA Tel +966 1 2771271 2771558 W3 wwwlittlecaesarsksacom Contact Mohammad Yunus Purchasing Manager

Cell +966 50 3465618 Email yunuslittlesaesarsksacom

Background This is the local franchisee for Little Caesars with 60 take-out pizza outlets The company caters for a wide range of customers ldquoThe young generation has developed a taste for the western type of food People are opting for western type of restaurants rather than those restaurants offering traditional Saudi foodrdquo Cheese Purchasing The company buys ~36 mtyr mainly grated mozzarella (70 of the total) and cheddar cheese for pizza Other sliced cheese is used with sandwiches The company has never used US cheese nor is it likely to switch sources in the respondentrsquos view Purchase decisions are made in the countryrsquos head office but under the guidelines set by the international franchiser Key criteria are confirmed as nutritional quality melt flavor and color



3 Burger King (Olayan Food Services) Po Box 8772 Riyadh KSA Tel +966 1 4772920 W3 wwwolayancom wwwburgerking-mecomsaudieng Contact Mohsin Sharief Purcase and Supply Manager Cell +966 54 8833990 Email Mshariefofcbkcom Background Olayan Group has partnered with Burger King in the Middle East for many years Olayan Food Services Co (OFS) opened the first outlet in KSA in 1992 and now runs approximately 60 stores locally including 23 in Riyadh Most of Burger Kingrsquos consumers are in the 17-40 age group and from low and middle income groups About 90 of the customers are Saudi nationals Cheese Purchasing OFS buys two types of cheese white cheese and yellow cheese (processed) The combined volume bought is 200 cartons of (18 kg) per month which is roughly 432 mtyr Processed cheese accounts for 67 of purchase while white cheese makes up the remaining 33 This product is all sourced from Forsan Food Purchasing has strict supplier specifications and standards set by the mother company in the US Any ingredient supplier must first be approved by the head company in the US Given the hote climent shelf-life is an important factor Often product will be used three months prior to its expiry date 4 Dominos and Wendyrsquos (Alamar foods) PO Box 4310 Riyadh 11491 KSA W3 wwwalamarfoodscom wwwaljammazcom Tel +966 1 4776700 Contact Waleed Taky Purchasing Manager Dominorsquos Pizza Tel ext 237

Cell +966 54 6623045 Email waleedhassaanalamarfoodscom

Background Alamar is a master franchise operator of Dominorsquos pizza and Wendyrsquos hamburgers for the MENA region with 185 restaurants across 11 countries in 2009 its parent group signed a deal with WendyrsquosArbyrsquos Group Inc to build 135 dual-branded Wendyrsquos and Arbyrsquos restaurants in nine countries in the Middle East and North Africa over the next decade However the Wendyrsquos franchise excludes KSA Alamar is also a food processor supplying QSR and casual dining businesses under the ldquoPremierrdquo brand Alamar now operates 112 Dominos Pizza outlets throughout the MENA region including around 80 in KSA where the chain first opened in 1992



Until a 42 stake in the company was acquired by investment fund Carlyle in December 2011 Alamar operated as a wholly-owned new division in the Al-Jammaz group The latter began as a small agricultural firm and grew into a highly diversified conglomerate similar to the other two main Saudi-based foodservice players Savola (Herfy) and Olayan (Burger King) Cheese Purchasing In terms of cheese sourcing

bull Dominorsquos buys mainly diced mozzarella all 1-year shelf-life product supplied from the US through the grouprsquos central purchasing contracts US product is well-regarded in quality terms and is preferred in the sense that it avoids currency fluctuations which are a problem for European supply

bull It can potentially source from non-US suppliers recently it was visited by French supplier IDIEurial ndash this company is centrally approved by Dominorsquos but does not supply the MENA region In the past Dominorsquos used an approved local KSA supplier but that proved unreliable after initial trading and was therefore discontinued

bull In addition to mozzarella very small quantities of American cheese are also used Dominorsquos believes its outlets are used by all strata in Saudi society it indicates that healthnutrition issues play no part in its menu composition and that any changes have simply involved addingswitching varietiesflavors 5 Hardees (Al Ahlia Restaurants Company Americana Group) PO Box 8030 Jeddah 21482 KSA Tel +966 2 65200733 W3 wwwamericana-groupnet Contact Ali Ghanim Operations Manager (deals with purchasing) Cell +966 50 5489005 Email alighanimamericanacomsa

Riyad Shatat Quality Control Manager (deals with menu composition) Cell +966 50 4633177

Background Americana group originated in Kuwait but is now publicly traded on the Kuwait Stock Exchange and is one of the Middle Eastrsquos largest food businesses Its key statistics for 2010





bull Factories ndash 17



Its growth in foodservice is apparent

bull Chains 1989 - 8 1994 - 9 1999 - 12 2004- 16 2009 - 19

bull Restaurants 1989 - 170 1994 - 282 1999 - 463 2004- 669 2009 ndash 1157 Of the 19 restaurant chains

bull 10 are International Franchises most important of which are KFC Hardeersquos TGI Fridays Baskin Robins (Kuwait Egypt and Lebanon) Pizza Hut (UAE Bahrain Egypt and Jordan) Krispy Kreme Signor Sassi

bull 9 were locally developed by Americana notably Fish Market Chicken Tikka Grand Cafeacute Fusion and Helw Al-Samadi

The group has two divisions in KSA ndash National Foods with activities in cakesbiscuits and meat and Al Ahlia Restaurants Each handles its purchasing requirements separately and without coordinationcentralization with the wider group Al Ahlia Restaurants operates Hardees and TGIF in KSA ndash but not Pizza Hut which has other franchisees in this market There are 65 Hardees branches in KSA for which the typical consumers are individuals under 40 with incomes above SAR4000 (US$1067) a month Cheese Purchasing Hardees buys sliced cheese for rolls and block cheddar for use in sauces ndash the latter is the main item Most of the cheese is imported from the US to specifications agreed by the marketing division with the international parent company Key requirements are 6 months shelf-life as per Saudi authoritiesrsquo specifications and plasticnylon wrappers US cheese is regarded as good for fast food ldquoIt is used in fast food restaurants French and Swiss cheeses are used in 5 star restaurantsrdquo 6 Herfy Restaurants PO Box 86958 Riyadh 11632 KSA W3 wwwherfycom wwwletseatat wwwsavolacom Tel +966 1 4509767 Contact Mohammad Taha Abu Al Qasim Purchasing Manager Tel +966 1 4509767 Email Tahaherfycom Background The Herfy restaurant chain is part of a wider group with significant production of bakery sweets and processed meat products It is 47 owned by Egyptrsquos conglomerate the Savola Group It operates 186 Herfy branches in KSA out of which 90 branches are in Riyadh The customer base ranges across all age groups ldquoBefore we used to target well off areas but now our branches are in all areas of the cityhelliprdquo



ldquoFast food is consumed more nowadays irrespective of whether it is healthy or unhealthy Generalyl speaking we see many people opting for fast foodhellipmaybe because life has become faster pacedrdquo Cheese Purchasing The company buys 250 mtyr of yellow (processed) cheese and white feta cheese mainly in slices and grated cheese Both are used in burgers All the cheese is bought from Pride (Lactalis) and Forsan Food ndash there is no experience with US cheese nor has the company received any offers from US suppliers The business is a Saudi one so all decisions on purchasing and menu composition are made locally Key criteria are described as nutritional quality flavor color a moderate degree of melt and cost In general the expiry period is six months but usually the chain uses its consignment within only one month from the date of production 7 Kudu 4th Floor Office No 401 1st Akaria building Musa bin Nusir Street Riyadh KSA W3 wwwekuducom Tel +966 1 4191440 Contact Ziad H Hamadeh Purchasing manager Tel +966 1 4191440 Email ziadkuducomsa Background Kudu is a Saudi owned and operated chain of fast food restaurants that caters to the Saudi palate It has some American style food but delivered Saudi style The chain operates about 200 restaurants with 70 in Riyadh 25 in Jeddah and the remaining sites spread across the Kingdom (including Dhahran Madinah Jubail Makkah Khobar etc) In all it claims

bull Restaurants in 35+ cities

bull 25 mn+ customers per year The companyrsquos customer base consists of young people between 15 and 30 years of age from all income levels Around 80 of its customers are Saudi nationals and 20 from expatriates Cheese Purchasing Kudu buys cheddar cheese (60) and white cheese (40) both types in slices for use with burgers and rolls Imported US cheddar cheese was used in the past the product was good but currently all the cheese is bought from a local supplier ndash Pride (Lactalis) ndash ldquoit is good for us to buy from local sources to avoid the delays related to shippingrdquo The companyrsquos operations department decides on the specifications required and the purchasing department ensures that these requirements are met A minimum four months shelf-life on products is required



8 McDonalds (Reza Food Services) Alireza Tower Madina Road Jeddah 21425 KSA W3 wwwrezagroupcom Tel +966 2 6572877 Contact Mohammad Ali Riza Marketing Manager Cell +966 55 0599125 Email Maamcdrezagroupcom Background There are around 102 McDonalds restaurants operating in KSA Reza operates in the western region namely Jeddah Makkah Madinah Taif Jazan Yanbua and Tabouk Across these cities it runs 46 restaurants (Another franchisee Riyadh International Catering Ltd operates the stores in Riyadh and other cities) Typical consumers are described as young people like students C class B class and A class ndash all income categories ldquoMore customers like to have grilled chicken burger sandwiches instead of fried ones I donrsquot know if this is a trend towards healthier menus or notrdquo ldquoThe population of Saudi Arabia is growing rapidly and 70 of this population is below 30 years of age This for sure is a positive driver for our business We are growing in terms of new branches being opened Another trend is that many young people are now eating outside their homes or ordering food from restaurants This also adds to our businessrdquo Cheese Purchasing The company buys slices of cheddar cheese and Swiss Emmental cheese adding both to chicken and beef burgersrolls Product is received in packs of 180 slices Decisions on menu composition and purchasing are made by the McDonalds group but Reza has developed its own products like McArabia which is now sold in the US and India this is a sandwich of grilled chicken or grilled kofta wrapped in an Arabic style pita bread It is popular in KSA and other Arab and GCC countries US product has been purchased in the past but now local supply is preferred Potential suppliers are suggested to contact McDonalds head office for the GCC countries which is located in Dubai 9 Perkys Pizza (Al Hokair Group) POBox 57750 Riyadh 11584 KSA Tel +966 1 4134444 W3 wwwalhokairgroupcom This group operates the following chains

bull Perkys Pizza chain 8 restaurants



bull Haagen Dazs 7 ice cream stores

bull Angus Wings 4 fast food restaurants a rebranding of the former AampW Restaurants

bull La Boucherie a French steak restaurant

bull Brioche Doreacutee a French bakerypatisserie chain

bull The Coffee Shop Company Viennese coffee houses 10 Pizza Hut ndash national except Jeddah (Al Mawarid Food Company) Al Mawarid Food Company Al Muqrazat Dist Riyadh POBox 17320 Postal Code 11484 KSA Tel +966 1 4778144 Contact Ayed Raqshad Ashour Purchasing Manager

Tel +966 1 2414285 Ext 111 Email ayedmawarid-dtcomsa

Background Al Mawarid Food Company operates about 106 branches all over the Kingdom (apart from in Jeddah) It is part of a wider group with other members such as MEED convenience stores the Saudi Agricultural Development Company SADCO and Mawarid Marocaine the franchisee of Pizza Hut in Morocco Cheese Purchasing Cheeses used include cheddar parmesan feta cheese mozzarella and others (blocks and grated) These are used on top of the pizza and for filling the rims of some types plus also in side items like salad and garlic bread These are a mix of local and imported cheese but the latter predominate All suppliers must be approved by the parent group which makes decisions on menu composition Local suppliersused include Pride (Lactalis) Al Fares Al Arabi Company and Al Gosaibi Company Shelf-life must be at least three months Key criteria

bull Nutrition enhancement ldquoYes nutrition is important to usrdquo

bull Melt ldquoThis very important for the type of cheese cooked with the pizzardquo

bull Cost reduction ldquoYes reasonable cost against good qualityrdquo 11 Pizza Hut ndash Jeddah only (Bashar amp Awni Shaker Company) Shaker Center Building 1 1st Floor Prince Abdullah Street PO Box 1674 Jeddah 21441 KSA Tel +966 2-667-4078 Contact Marwan Muzaffar Marketing Manager



Cell +966 591615609 Email Mrwan1998yahoocom Background Bashar amp Awni Shaker is the franchisee for Pizza Hut in Jeddah only distinct from the Americana franchise which covers the rest of the country Currently it operates 32 branches in Jeddah city Its clientele covers all age groups but is geared towards young age brackets and middle income households The respondent notes high demand for pizza containing more than one type of cheese Recently it launched a 4 cheese pizza which has been very successful However it sees no trend towards healthier or low fat food amongst its customers ldquoPeople here in Saudi Arabia like cheese very much They eat cheese with snacks sandwiches and many other things I have not noticed any trends towards healthier menus with regards to cheese consumptionrdquo Cheese Purchasing Decisions on menu composition and purchasing are made by the parent group in the US It uses cheeses supplied directly from the suppliers specified by the group The main local distributors it has worked with are Ba Samah and Abbar amp Zainy The company buys approximately 60 parmesan and 40 cheddar blue cheese and mozzarella types mainly using imported product (blocks slices and grated) The parmesan is used on the top of the pizza The cheddar and blue cheese are mainly used inside and in the stuffed crust pizza (filling the rims of the pizza with cheese) Key functional characteristics required are described as follows

bull Melt important especially in the mozzarella and cheddar types

bull Flavor also important ldquoWe usually check the flavor while adding the cheese to the pizza and unless we find it as per specification we will not use itrdquo

bull Color ldquoColor of the cheese is important When the pizza is cooked the cheese color should not show any dark or brown spots The yellowish color should be maintainedrdquo

bull Mouth feeltexture It should be tender

bull Cost reduction ldquoCost is also important but we will not compromise on qualityrdquo Key purchase criteria are matching specifications and being price competitive Other criteria are given as follows

bull Shelf-life The expiry period should not be less than six months

bull Packaging ldquoWe prefer nylon wrappersrdquo

US cheese is seen as satisfactory but ldquonot the same quality as cheese from Denmark and New Zealandhellip As you know US is further away than Europe and shipment takes longer ndash this might affect the quality Also the taste of the cheese from Denmark and New Zealand is betterhellip Cheese from Denmark is very well known for its good quality New Zealand came to the market



after the famous issue of Denmark productsrsquo social boycott but their cheeses are not of the same good quality as Denmarkrsquosrdquo 12 Pizza Inn (United Food Company) PO 55447 Riyadh 11534 KSA Tel +966 1 2178383 W3 wwwpizzainncomsa wwwpizzainncom Pizza Inn opened its first restaurant in Saudi Arabia in 1991 owned and operated by its master licensee across MENA United Food Co which is a part of Abdullah Abunayyan Group The group now operates 9 restaurants in KSA and 33 take-out sites Note the Texan group has seen long term decline The company was started in 1958 and as of June 26 2011 there were a total of 297 Pizza Inn restaurants worldwide including 213 franchised Pizza Inn restaurants in the US 5 company-owned Pizza Inn restaurants in the US and 79 international franchised restaurants In the US most of the restaurants are located in Texas and North Carolina (51 of sales) Internationally the majority (65) of the Pizza Inn restaurants are located in the United Arab Emirates and Saudi Arabia 13 Steak House (Al Faisaliah Group) PO Box 301741 Riyadh 11373 KSA Tel +966 1 2492222 W3 wwwalfaisaliahcom wwwsteakhousecomsa Contact Ahmad Nassar Supplies Manager

Tel + 966 1 2119789 Email anassaralfaisaliahcom

Background Steak House is operated by Al Faisaliah which is involved in the local food sector through a number of businesses

bull Al Safi Dairy

bull Al Safi Danone

bull ALFA Foods Ltd - The Steak House and DUO (AmericanCasual Dining steak seafood pizza)

There are 14 Steak House restaurants in operation The majority of customers are 30 years and above As a meal costs about SAR40 (about US $11) this is affordable to the middle income group and above Healthnutrition issues are not seen as important ldquoTo be frank with you our customers never ask about low fat cheese in their meals The trend of our business we can see from our sales which are constantly increasingrdquo Cheese Purchasing All purchase decisions are made at this head office The company buys about 2 mtmonth of Dutch Parmesan blocks through Halwani amp Gulf Central



No US product has been considered as it is seen as ldquoExpensive and not always available in the marketrdquo Key criteria

bull Nutrition enhancement ldquoI prefer to call it quality of the productrdquo

bull Melt ldquoSometimes if the product melts too quickly it is not good Moderate texture is preferredrdquo

bull Color Color is important It is said that ldquothe eye eats before the mouthrdquo

bull Flavor and texture are both important

bull Cost reduction ldquoI donrsquot consider the cost of the product is important What matters is the qualityrdquo Shelf-life must be at least 6 months

14 Subway (Shamel Food Company) Olaya Main Street (behind Samba) Hweshal Center Northern Entrance 4th Floor Suite 433 Riyadh KSA Tel +966 1 4646993 Contact Tareq H Audeh Purchasing Manager Tel +966 1 4646993 Email enfoshamelfoodcom Mohsen Mousa Managing Director Background Shamel Food the local master franchisee operates around 43 Subway stores in KSA including 14 branches in Riyadh The brand also has four mobile-cart outlets deployed throughout Riyadh Dammam Al Khobar Jubail Jeddah Al Madinah Rabigh Taif Abha Khamis Mushayt Qasim Jizan and Tabuk These cater for a wider range of local consumers but the majority fall in the 15 to 40 age bracket The products are affordable to all incomes locally Subway received the Healthy Food Ambassador Award 2009 from the Ministry of Health in Saudi Arabia and the Health Awareness Ambassador Award from the Riyadh chapter of the World Health Organization (WHO) However the respondent noted ldquoMajority of our customers likes to add cheese to the sandwich Those who donrsquot like cheese to be added are very few I am not sure whether they donrsquot like cheese in their sandwiches for health reasons or otherwise I havenrsquot noticed any trend towards healthier menusrdquo Cheese Purchasing The chain uses cheddar slicesblocks and parmesan in its rolls about 90 of which include cheese Usage is around 16 mtmonth on the cheddar roughly 60 imported and 40 local production The requirement for Parmesan is around 400 kgmonth One key criterion is the level of melt which should be ldquoreasonable The cheese should not turn into oily stuff when heatedrdquo



The decisions on menu composition are made within the international parent group The purchasing is made by the country head office after the approval of the international company Product is bought directly from local importers and local producers approved by the mother company ndash mainly Forsan and Pride (Lactalis) US cheese has been used in the past but country of origin is not seen as important ldquoAmerican French Dutch and Danish cheeses are of similar qualityrdquo

33 Food processing ndash Ingredients Demand


3311 Innovation

Innovation is very difficult locally If companies may be classified (in innovation terms) as Active Innovators (with a regular focus on an innovation roadmap) Fast Followers Followers and Late Adopters the consensus appears to be that there are no food businesses in the first category There are reports that Saudi consumers are becoming more educated and aware of health and nutrition issues There is some replacement of milkfats by vegetable fats but it is very limited So far at least such considerations have not fed through to make many value-added products viable in the market and when they have succeeded this may not be for health and nutrition reasons NFIC indicates that it has tried a range of calcium-enriched and vitaminmineral-fortified milk formulas but has been forced to withdraw them because of insufficient demand Al Safi Danone has done well with its Activia probiotic laban but this is believed to be on grounds of taste rather than its claimed digestive benefits its success led to a copycat launch from Almarai with the Vital brand which has taken a considerable share Probiotics have done much better in laban than in yogurt Skimmed milk has seen declining demand of late whilst low fat products have gained share Interestingly the dairy category where low fat products account for the largest share (perhaps as much as 50) is in cheese slices ndash products which often get consumed with burgers and carbonated drinks (The sector is very segmented ndash burger emmental mozzarella etc) In the evaporatedcontended milk sector low fat products make up around 4 of sales The recombiner Al Rabie is an example of how local companies can be driven by health and nutrition concerns it is strong on detailed nutritional labels clean label etc and has experimented in a range of areas such as protein sports beverages but admits health-based products such as its milk-juice blend have struggled in the market albeit surviving on the shelf One source noted how Al Safi put a lot of advertising support behind its health-oriented smoothies and achieved early success but was unable to sustain demand for the range One local confectionery producer points out that certain sectors such as sugar-free gum remain in their early stages only This is a major contrast to Lebanon where the market is almost all sugar free and GMO-free and prebiotics are successful in the wider food market One reason cited as a possible factor behind the low awareness ofinterest in health and nutrition products is the tight regulatory environment the Saudi Food and Drug Authority (SFDA) was created in 20072008 and it has exerted increasingly tight control on products This means that



few health or nutritional supplements make it through to the market apart from those in the officially sanctioned GNC chain Almarai spent some time working with a German supplier to look at how to make a juice that diabetics could consume without their sugar spiking However since being presented to the SFDA the product has received no approval for 16 months (October 2011) ndash clearly this makes any innovation hard to achieve or justify This high level of conservatism extends to packaging

bull Canned cheese normally has to be in blue cans ndash Pride has bucked the trend by launching in yellow cans as has Almarai with a relaunch with pictures on the cans

bull Processed cheddar cheese products must have gold in their packaging livery

bull Certain sizes of cans are seen as essential

bull The apparently successful Kraft introduction of its cheese in a squeezy tube is very much the exception which underlines the general rule The product was in Pandarsquos top 10 products over the first eight weeks in the market

3312 Linkages with other MENA markets

KSA produces a wider range of foods than the other smaller GCC countries Its output includes cereals (mainly wheat) vegetables fruits meat (poultry) and dairy products The Government has worked to achieve self-sufficiency in food By contrast other GCC countriesrsquo outputs are relatively restricted the UAE and Qatar produce mainly fruit vegetables and fish Kuwait largely produces vegetables and fruit while Oman is the major fish producer in the region Bahrain produces fish and red meat Saudi Arabiarsquos production history and size explain why local food manufacturers commonly export to other GCC countries and in particular to Yemen because of the cultural ties between the two countries Some of the larger players will also supply to Africa For instance NFIC sells its Luna evaporated and condensed milk into West Africa where there is strong demand The leading local food processor is arguably Almarai which makes about 70 of its revenues in KSA and the remainder by exporting into the GCC countries The exception to this is its presence in Egypt and Jordan through 48 owned International Dairy and Juice (IDJ) its JV with PepsiCo Almarai has on its own account been an early and aggressive practitioner of MampA in the region acquiring several companies in the past especially during 2007-2009 Over this period it spent over US$500 million acquiring multiple target companies in the food sector including HADCO for around US$D253 million in 2009 However this has been mainly in its home market Savola the other large player in the regionrsquos food sector has likewise adopted an aggressive MampA strategy making a string of acquisitions in Saudi Arabia and abroad Major acquisitions of Savola include Turkish oil Company Yudum in 2008 Saudi Arabia based retail Geant and Giant stores in 2009 It also holds a strategic non-controlling stake in several GCC food companies including Almarai and Herfy However Savola is much less involved in processed foods the Almarai link excluded The Saudi food industry comprises of a few businesses with manufacturing outside the Kingdom the exceptions being multinationals and a few regional groups The market has proved attractive for some of the regionrsquos food processors to use as an export production base due to the lower operating on costs which it can offer Good examples are the local presences of the leading regional chocolate manufacturers Gandour and Patchi



Table 3312 Food Processors in KSA ndash Wider MENA Connections

Type of Company Processed Food Manufacturing Foodservice Operations in KSA amp MENA Region





Mead Johnson (USA) KSA infant formula manufacturing JV with Almarai


PepsiCo (USA) Egypt Beyti (yogurt) ndash part of International Dairy amp JuiceIDJ (JV with Almarai) Fritolay KSA International Dairy amp JuiceIDJ (JV with Almarai) Fritolay Jordan Teeba ndash part of International Dairy amp JuiceIDJ (JV with Almarai)

Regional Companies operating in KSA





Foodservice

Bahrain Pizza Hut Jordan Pizza Hut KSA Pizza Hut Hardees Kuwait Krispy Kreme Signor Sassi UAE Pizza Hut TGIF + franchise agreement with Darden group for adding 3 new chain restaurants (Red Lobster Olive Garden and Longhorn Steakhouse) exclusively across 7 countries Kuwait Saudi Arabia United Arab Emirates Q t B h i E t L b ( t ti 2011)












Switz Group (UAE) wwwswitzgroupcom

KSA Industrial bakery (MasterBaker) Oman Industrial bakery Retail bakery (MisterBaker) UAE Retail bakery (MisterBaker) Note operates in KSA Oman India Sri Lanka and the Philippines and has partnerships with Dawn Foods of the US (producing frozen donuts in Oman) and Bauli of Italy

Saudi Companies operating Regionally

National Food Industries (NFIC) wwwnficcomsa

Yemen National Dairy amp Food Co (NADFOOD) in Yemen

Olayan Group wwwolayancom

Burger King franchise Egypt KSA Kuwait Lebanon Jordan Qatar Bahrain Applebees and Texas Chicken franchises added 2009



Source Orrani Consulting based on trade sources Note excluding agriculturalprimary processingpacking



332 Key Customer Issues


US dairy ingredient supply is seen as new and largely untested relative to most of the established key players operating in the KSA market However many of the leading suppliers are not necessarily perceived well

bull New Zealand represents ldquoquality reliability supportrdquo and Fonterra has a ldquostrong grip on the marketrdquo but ldquothe company is viewed as arrogantrdquo leading in some cases (notably Almarai) to a drive to diversify sourcing

bull Arla and Valio ndash both seen as high quality suppliers but lacking in volume availability

bull Murray Goulburn ndash has suffered reduced credibility as a result of a poor quality agent in Dubai

bull FrieslandCampina ndash a limited presence outside Jamjoom Foremost (its local subsidiary) Alternative sources have often disappointed for instance NFIC and Saudi Ice Cream reported that after quality problems with Ukrainian milk powder spore counts this source was not used again Some customers see US product in a positive light (see more specific comments in following production sections) once they make the effort to use US product For instance Almarai expects to use increasing volumes of US dairy ingredients It began considering US supply seriously in late 2007 and made initial visits to US suppliers in 2009 So far it has been purchasing sweet creamery butter for use in its processed cheese production and is happy with the product Nevertheless whilst some customers are positive on US product (see more specific comments in following production sections) there are some serious negatives to address

bull ldquoUS product is seen as inferior across all products and surplus only so there is only a reason to buy it when Oceania is sold out as occurred in 2008rdquo ndash Pride (Lactalis)

bull ldquoIt took a long while to get the documentation to an acceptable levelrdquo ndash Almarai

bull ldquoProspective US suppliers are slow to achieve the narrower microbiological tolerances which Oceania and EU suppliers work to as a matter of courserdquo ndash Almarai

bull ldquoWe have suffered as a business since importing some shipments of US-produced WMP in 1994 for repack many of these proved to be rancid and caused the company a serious public image problem which had a long-lasting impacthellipwe view US dairy quality as low and its availability as simply surplus disposal without any marketing consistency or commitment to the market There are virtually no visits by US dairy suppliers and there is no customer or market knowledge on their behalf or effort (for example expecting to communicate solely in English)rdquo ndash Al Rabie

bull ldquoPricing is a key problem CME-based pricing is fine for corn and animal feed but this local approach is so limited that it needs to be scrapped as a basis for dairy pricing where Fonterra sets the benchmark It might be set on the basis of 5 truckloads whereas we might need 500 truckloadsrdquo ndash Almarai



bull ldquoThe initial feeling was that US suppliers may be ldquohere today gone tomorrowrdquo ndash this has been overcome to a great extent but there is still virtually no local involvement by them in the KSA marketrdquo ndash Almarai

bull ldquoWe have never had any visits from US suppliers whereas those from Europe and Latin America visit almost dailyrdquo ndash Gandour

bull ldquoUS product is well-perceived in terms of quality however communicating with US suppliers is extremely difficult compared to dealing with those from Europerdquo ndash Halwani

These problems are far from insuperable For instance on the question of meeting the tighter microbiological standards the view (from one customer which has had the patience to work on this issue) is that the technology is generally in place to achieve this so it is more a question of adopting the mindset to upgrade to meet international requirements In other cases as might be expected there are simply familiarity issues where accepting US product requires a break with established practice

bull ldquoUS cheese has been tried with the company importing 2 containers of frozen two-week-old cheddar for processed cheese production The white color was as required but the flavor profile proved unacceptable given habituation to the different flavor achieved using Fonterrarsquos product in the pastrdquo ndash Almarai

3322 SMP

SMP is perceived in a postivie light

bull Nadec sees US product as ldquoperfectrdquo however it has sourced mainly from Europe (1000 mtyr) It indicates that this was on price grounds although this decision is likely backed up by greater familiarity and the presence of product and visiting European suppliers

bull ldquoThe SMP is mainly low heat some medium heat US product is well regarded especially for the chocolate productionrdquo ndash National Food Company (cake division)

NFIC (Luna brand) and Sadafco (Saudia) are the largest SMP importers in KSA Whilst the latter is now part of Fonterra the former has a different perspective ldquoFonterra has a strong grip on the market We buy from Fonterra through Gdt directly and also directly from Murray Goulburn We do not like the auction at all it forces the same terms on us as on a company with vastly lower requirements and it offers only one specification on SMPrdquo ndash NFIC bull ldquoThere is a perception that US product is not as good This is partly due to Fonterrarsquos strong

presence in the market but also to the weak technical approach from US suppliers for example if trying to buy UHT milk powder the Gdt site specifies a maximum spore count of 100 but US product is often presented without any specification on this pointrdquo ndash NFIC

bull ldquoUS suppliers are not good at responding on points of technical detail such as this and

appear baffled by the use of standard trading paperwork such as letters of credit They also work mainly through traders whereas NFIC prefers direct links with suppliersrdquo ndash NFIC

bull ldquoDemand for SMP is 700-800 mtyr but none of this has been sourced from the US as the

pricing has not allowed this being 10-15 over competing supply sourcesrdquo ndash Saudi ldquoKwalityrdquo Ice Cream

A continual problem is the unwillingness of suppliers in general to consider contracting forward ndash say in October for FebruaryMarch supplies This is an area where European suppliers are weak



ndash and there are recent signs according to some buyers that some US suppliers are growing more flexible Security of supply is a major issue for import-dependent businesses ndash this gives a strong potential role for the US to raise its presence in the market 3323 Whey PowderLactose

For most buyers the whey powder is largely bought on price More US product has been sourced over the last two years because of price competativeness although there are good options at various times through Argentina and India ldquoUS whey powder is competitive in price terms and has a year shelf-life but the mainly cheddar origin creates a problem as the product darkens after about 5-6 monthsrdquo ndash Babatin Factory for Sweets amp Chocolates (which sells some US whey powder to local buyers under the brand Batinco Dairy Farm) No other particular issues emerged here nor on lactose which is a very minor product locally 3324 Cheese

There are definite positives here

bull US product received is viewed as ldquoperfectrdquo ndash Nadec

bull ldquoThe US cheese is competitive in light of the CWT subsidies and demand is likely to grow in line with the growth of the marketrdquo ndash NFIC

bull Almarai buys a considerable quantity of cheddar ndash with 4000-5000 mt expected in 2012 compared to perhaps 4000 mt in 2011 ndash this has traditionally been purchased from Oceania but the company is starting to buy from US suppliers growth in the processed cheese market makes it likely that demand here will grow

bull ldquoUS product quality is fine with no problems experiencedrdquo ndash Forsan

But again there are issues to address

bull ldquoOceania suppliers can supply consistently lower levels of moisture in their end product ndash ldquomoisture costs moneyrdquo ndash and often at a slightly lower price (-$30) If there is no price advantage why should I take a lower quality productrdquo ndash Pride (Lactalis) It admits this perception may draw less on real quality issues than on the sheer lack of US market effort there is a view that US suppliers have ldquono passionrdquo and if the product is being offered through (for example) a Dutch trader it is much more likely that the supply source will be chosen

bull ldquoWe arenrsquot keen on sourcing through the traders which US suppliers use but which add little value we buys in blocks and do all our own shredding using product on our retail pizza and also selling our own branded shredded cheeserdquo ndash Sunbulah

bull ldquoPricing off the CME creates too much price variability and makes it hard to establish a strategic relationship with US suppliersrdquo ndash Sunbulah



34 Key Ingredient User Sectors

341 Liquid Milk

3411 Sector Trends

The drinking milk sector has grown well and has taken volume from a declining retail milk powder sector with expansion estimated at almost 9 annually in recent years Table 3411 Sales Trends Liquid Milk 2006-2010

2006 2007 2008 2009 2010 CAGR ()

Mt 496000 576800 595400 652200 692760 87

Source IMES The volume splits into an estimated 55 pasteurizedfresh milk and 45 UHT with growth in the former segment driving the category in particular In the UHT category sales divided approximately 55 recombined plain 7 recombined flavored 22 fresh plain and 16 fresh flavored Key players with estimated market shares in each sector are as follows

bull Pasteurizedfresh milk

‒ Almarai 60

‒ Al Safi Danone 20

‒ Nadec 9

‒ Nada 7

‒ Najdyah 3

‒ Al Matrood (UNDC) 2

bull UHT milk

‒ Saudia (SadafcoFonterra) 44 (with a strong lead in plain UHT)

‒ Almarai 17 (leading in flavored UHT)

‒ Jamjoom (FrieslandCampina) 14

‒ Al Safi 14

‒ Nadec 3

‒ Nada 3

‒ Luna (NFIC) 2

In recombined plain UHT market shares are approximately as follows



‒ Saudia (SadafcoFonterra) 73

‒ Jamjoom Rainbow (FrieslandCampina) 15

‒ Jamjoom UHT (FrieslandCampina) 5

‒ Luna (NFIC) 3

‒ Al Rabie 2

3412 Dairy Ingredients Usage

There is significant use of SMP as well as WMP in recombining and standardizing local milk Sadafco is the main user by far of both in this category 342 Laban

3421 Sector Trends

The local fermented milk laban constitutes a large sector but this is a traditional product with lower growth than has been seen in liquid milk The majority of laban sales are of fresh rather than recombined product Table 3421 Sales Trends Laban 2006-2010

2006 2007 2008 2009 2010 CAGR ()

Mt 397200 403000 413200 423000 431700 21

Source IMES Key players with estimated market shares are as follows

bull Almarai 46

bull Nadec 13

bull Najdyah 4

bull Nada 4

bull Al Aziziah 2 3422 Dairy Ingredients Usage

There is some limited use of SMP in this category only given the prevalence of fresh product 343 Yogurt

3431 Sector Trends

Yogurt sector growth has been strong at close to 5



Table 3431 Sales Trends Yogurt 2006-2010

2006 2007 2008 2009 2010 CAGR ()

Mt 116350 122570 127150 133100 139410 46

Source IMES Key players in yogurt are

bull Almarai

bull Al Safi Danone

bull Nadec

bull Nada 344 Dairy Ingredients Usage

There is some limited use of SMP in this category During Ramadan consumption rises and SMP is used to achieve the right solids balance for popular products Low heat product is required for yogurt The market leader Almarai uses 2000-3000 mtyr from Fonterra this is partly for use in yogurt but includes medium heat for recombined milk and cheese) Nadec uses 1000 mtyr in its yogurt range sourcing from EU There is also some WPC use Almarai uses 2800 mtyr of WPC3435 principally in fruit and stirred yogurts and in desserts the product is sourced ex-EU and has proven problematic in quality terms The company expects to use WPC80 here in the future also 345 Concentrated milks

3451 Sector Trends

There is strong local production of evaporated milk This is a sector which has revived in the last few years to the surprise of some in the industry There are also exports into GCC and West Africa in particular Condensed milk has always been a much smaller sector but this has seen good growth over the last few years Table 3451 Sales Trends Concentrated Milks 2006-2010

Mt 2006 2007 2008 2009 2010 CAGR ()

Evaporated 75500 71950 71100 74650 75400 00

Condensed 4500 5050 5400 5850 6300 88

Source IMES Key players with estimated market shares in each sector are as follows



bull Evaporated milk

‒ Luna (NFIC) 31

‒ Bonny (imported from Hochwald in Germany) 22

‒ Gloria (Wadi Fatma) 16

‒ Rainbow (FrieslandCampina) 13

‒ Almarai 6

bull Condensed milk

‒ Luna (NFIC)

‒ Bonny (imported from Hochwald in Germany)

‒ Saudia (SadafcoFonterra)


Ingredients used here include SMP whey permeate and lactose in the SCM For instance

bull The leader NFIC (Luna) uses around 500 mtyr of whey permeate in its SCM production

bull Wadi Fatma uses SMP in its Gloria evaporated milk importing from Europe (Netherlands France Denmark)

346 Cheese

3461 Sector Trends

Sales of cheese are estimated at around 145600 mt in 2010 From this total around 65000 mt is processed cheese for retail and foodservice with white cheese making up most of the remainder Table 3461 Sales Trends Cheese 2006-2010

2006 2007 2008 2009 2010 CAGR ()

Mt 121960 133520 133700 140100 145600 45

Source IMES The white cheese sector is relatively fragmented across a range of local producers The retail processed cheese sector divides approximately into glass jars 42 portions 35 cans 13 and slices 7 Small quantities are also sold in blocks and tubs as well as in squeeze bottles introduced recently with some success by Kraft Bahrain Market shares in key segments are approximately as follows

bull Glass jars ndash Almarai 37 Kraft (ex-Bahrain) 32 Puck (Arla) 17

bull Portions ndash Kiri (Bel) 34 LVQR 27 (Bel) Almarai 20 Regal Picon 9 (Bel)

bull Cans ndash Kraft (ex-Bahrain) 70 Almarai 27



bull Slices ndash Almarai 52 Kraft (ex-Australia) 12 Chesdale (SadafcoFonterra) 10 Pride (Lactalis) 8


Whilst imports play an important role there is also substantial local production in KSA notably by Almarai and PrideUFIC (Lactalis) SMP and WMP are key ingredients in white cheese production Typical usage is exemplified by usage at several processors

bull Medium heat SMP

Almarai (mainly for processed cheese)

bull Lactic butter

bull Customized blends of MPC70 and caseinates for use in processed cheese production

bull Cheddar 4000-5000 mt expected in 2012 compared to perhaps 4000 mt in 2011 this has traditionally been purchased from Oceania but the company is starting to buy from the US growth in the processed cheese market makes it likely that demand here will grow

bull Cheddar 5000-7000 mtyr

PrideUFIC (Lactalis) (mainly for processed cheese)

bull Edam 350 mtyr

bull Gouda

bull Mozzarella (LMPS) 1500 mtyr

bull SMP 60-70 mtmonth

bull Whey powder 35 mtmonth

bull Sweet cream butter

bull Rennet casein 50-60 mtmonth

bull SMP

NFIC (Luna) (for processed cheese)

‒ Cheddar cheese ndash 2000 mtyr

‒ SWP minus 500 mt

‒ WPC34 ndash very minor formulation step only

bull Cheddar 200-300 mtyr sourced from the US and Europe for processed cheese production US product viewed as ldquoperfectrdquo

Nadec (for processed cheese)



Halwani (mainly for white and cream cheeses)

bull SMP ndash 300 mtyear low and medium heat

bull Lactic butter ndash the whiteness is critical US supplies are used as product from Denmark France and Germany is too expensive

bull Sodium caseinate 347 Infant Nutrition

3471 Sector Trends

Traditionally there has been no manufacture of infant formula in KSA with very little in the wider region still However two major changes have been Danonersquos construction of a major plant in Iran and more recently the building of a plant in KSA Currently more than 90 of infant formula sales in KSA are met by imports Table 3471 Expected Trends in KSA Infant Formula Market 2009-2016

2009 2010 2011 2012 2013 2014 2015 2016

Sales (SAR mn) 2100 2310 2541 2795 3075 3382 3720 4092

Expected INPC share - - 1 5 10 15 20 25

Source INPC EFG Hermes estimates 3472 Dairy Ingredients Usage

Future ingredient requirements are estimated as follows Table 3472 Scheduled Future IPNC Dairy Requirements 2012-2016

Mt 2012 2013 2014 2015 2016

WPC35 15 112 197 301 413

Lactose 62 476 840 1284 1764

SMP 69 528 932 1424 1957 Source IPNC Procurement will be done through approved suppliers only Currently product is sourced mainly sources through Fonterra in Asia and Arla in Europe



348 Chocolate

3481 Sector Trends

KSA is a significant chocolate producer with 20+ producers including some of the biggest plants in the Gulf region The two Lebanese companies Patchi and Gandour in particular are significant players in the wider region along with Israelrsquos Strauss-Elite and Iranrsquos Dadash Baradar and a significant part of their production is exported) Locally owned manufacturers of significance include United Food Industries (Deemah) Etihad Salehia (a strong producer of high quality chocolate-enrobed dates and mamoul ndash date-paste filled biscuits ndash with established international distribution) and Babatin The major international players are exporting into the market ndash notably KraftCadbury (Egypt) and Nestleacute which opened a major new US$136 mn factory in Dubai at the end of 2010 from which it supplies Kit-Kat into Saudi Arabia (amongst other linesmarkets) The producers operating in KSA often compete with lookalikes of the international brands in a lower price bracket ndash although Patchi in particular is positioned at the premium end positioning itself in the BelgianSwiss fine chocolate bracket As a rough estimation locally produced chocolates make up about 65-80 of the KSA market volume with imported chocolates accounting for the remaining 20-35 It is estimated that the chocolate market is growing by 7-10 annually Consumption is strong and peaks during occasions like Eid celebrations Chocolate is also considered a good gift among families for happy occasions such as new births for hospitality when receiving friends etc One approximate segmentation is that

bull Chocolates with biscuits whether filled or coated constitute about 50 of the market

bull Other types such as chocolates with nuts fruits cheesecake and plain chocolate account for the remaining 50

Another industry source estimates slightly differently as follows

bull Filled chocolates (with nuts caramel biscuits etc) ndash 50

bull Chocolates with fruit flavor ndash 30

bull Plain chocolates ndash 20 Key players in the KSA market are Local production

bull Patchi ndash 45

bull Juhaina Chocolates ndash 15

bull Deemah ndash 10

bull Saadeddin ndash 10

bull Ghandour ndash 10



bull Other ndash 10 Imported Chocolates

bull Mars ndash 47

bull Nestle ndash 23

bull Cadbury (Kraft) ndash 10

bull Other ndash 20 As the market is highly competitive producers have introduced a wide range of chocolate flavors during the past two years An example of this is the recent introduction of chocolates with strawberry flavor and chocolates with cheesecake filling Health and nutrition issues are generally low on the consumer agenda The very few consumers who are concerned with their diet usually opt for dark chocolates The increasing popularity of highly advertised brands such as Lindt Excellence (Lindt amp Spruumlngli AG) or new launches such as Galaxy Smooth Dark (Master Foods) have contributed to a higher demand for plain dark chocolate Nevertheless diet chocolates dark chocolates and cholesterol-free and sugar-free products account for only around 2 of the total market volume 3482 Dairy Ingredients Usage

The following is a snapshot of the leading players

bull Patchi uses no SMP whey products or lactose WMP is used along with a customized product supplied by French group IDI (possibly from its PROCHOC range) Dairy commodities are bought in through the regional purchasing function in Lebanon which also covers the companyrsquos Egyptian production

bull Deemah has dairy ingredients requirements as follow

‒ WMP 25 mtmonth (30 mtmonth in run-up to Ramadan 6 approved suppliers) for various confectionery products

‒ SMP 15 mtmonth mainly in biscuits

‒ The firm does not use whey or lactose although is currently considering the potential to substitute some of its WMP with sweet whey powder and possibly whey cream

bull Gandour ndash essentially a chocolate producer with related bakery activities

‒ WMP is the basis of its production in the past it switched from WMP to SMP but has subsequently shifted back on grounds of economics and also practicality of easier mixing It buys either directly or via local agents and uses around 100kg WMP annually keeping stocks to the absolute minimum

‒ Lactose small quantities of (lt100kg) are also used in its creams and cakes

‒ DWP40 minor use

‒ In the future there is possible demand for cream cheese but this is at the project stage only



‒ The firm indicates that it has never had any visits from US suppliers whereas those from Europe and Latin America visit almost daily

bull Babatin ndash produces primarily chocolates toffees hard candies along with some cakes and jam The companyrsquos annual dairy ingredients purchases involve

‒ WMP 240 mt (15 x 16mt containers) ndash used in toffee and hard candies

‒ SMP 48 mt ndash used in chocolate

‒ SWP 128 mt ndash used in chocolate

‒ No permeate or lactose are used The sourcing is variable depending on price including Australia and France (for instance WMP from UCLAB)

‒ US whey powder is competitive in price terms and has a year shelf-life but its mainly cheddar origin creates a problem as the product darkens after about 5-6 months

‒ US SMP is also good quality However the product has a very low profile as there is no presence of US suppliers here

349 Ice Cream

3491 Sector Trends

The Saudi market volume is estimated at 376 mn L for retail in 2011 worth about SAR490 mn (US$131 mn) The volume fell from 383 mn in 2010 but grew in value from SAR470 mn On top of this there are sales through ice cream boutiques and foodservice The locally produced ice cream constitutes about 90 of the market with imports accounting for the remaining 10 Annual growth is around 3 in volume terms Ice cream can be broken down into two broad segments

bull 84 ndash family packs of 25 2 15 and 1 L

bull 16 ndash Individual items such as cones cornets bars sandwiches etc The two main producers are Sadafco (Fonterra) and Saudi Ice Cream Factory which trades as Kwality There are four other players of significance as well as a group with a minor share of the market (Baskin Robins Con Zone Al Amal Al Matrood and KDD)



Figure 3491 Market Shares Ice Cream Saudi Arabia 2011

Source Orrani Consulting based on trade sources Note volume There have been no major changes in the market during the past three years except for the recent entry of the brand Golf from the Turkish group Ulker during September 2011 Some suppliers have recently introduced light ice cream in their family packs 3492 Dairy Ingredients Usage

This sector sees main usage at the locally produced Kwality Saudia Fadeco and Batterjjee Saudia is believed to uses New Zealand product whilst IFFCO and Masterfoods lines are imported The main item used is SMP with some whey powder also

bull Kwality Despite the rising costs the company has not reformulated and still uses SMP and AMF but no whey products with no apparent intention to change Demand for SMP is around 700-800 mtyr but none of this has been sourced from the US because of higher prices (claimed as 10-15 over competing supply sources) The requirement is for medium heat ordering 2-3 times a year

bull Batterjee buying 6 containers of medium heat SMP and 5 containers of whey powder annually Product has been sourced from Europe (Poland Germany) Belarus Argentina and Turkey Protein content for the SMP is not so critical as long as it is above 30

3410 Biscuits and Cakes

34101 Sector Trends

The baked goods market in the KSA is fragmented with few major producers of packaged products and a high level of imports Whilst not reliably documented there are a number of key players in this category

bull Almarai the market leader in baked goods (now 12 of its sales) operating as

‒ Western Bakeries with the LrsquoUsine brand acquired 2007 70 retail market penetration

22

20

16 9

7

6

30

Kwality (Saudi Ice Cream Factory) Saudia

IFFCO (brands Igloo and London Dairy Master Foods (Mars Snickers etc) Fadeco

Batterjee (Jumbo)

Other



‒ Modern Food Industries (MFI) ndash this JV was set up in 2007 between Western Bakeries (60) and the largest Greek food group Vivartia (40) marketing under the brand ldquo7 Daysrdquo across the GCC

In the last 2-3 years Almarai has doubled its bakery capacity to 170000 mtyr At the end of 2010 it added a modern plant in Riyadh to serve the capital as Western Bakeries is based in Jeddah and lost out on freshness due to the dayrsquos transport between the two sites The new site is expected to diversify its product range (Arabic bread launched in 2011) and expand the footprint across the whole GCC (initial exports began to Bahrain in 2011)

bull National Foods (part of Kuwaiti group Americana) this is the largest cake producer serving the local market and exporting around the GCC and various African markets Its output includes

‒ Sponge rolls (production rose x12 over 1992-2006 to a 60 share)

‒ Family cakes (production rose x5 over 1992-2006 to a 45 share)

‒ Individual cakes

‒ Cookies (production rose x120 over 1992-2006 to a 76 market share)

‒ Biscuits wafers and crackers

‒ Rusks (production rose x3 over 1992-2006)

‒ Mamoul (date-paste filled biscuits)

‒ Chocolate for the enrobed lines Other manufacturers in the sector include

bull Saudi Master Baker ndash part of the Switz Group (UAE)

bull Deemah ndash the chocolate producer part of by United Food Industries Corp

bull KraftNabisco ndash operating with local partner Olayan

bull Gandour ndash the Lebanese chocolate producer

bull Ulker ndash the Turkish brand produced locally by Food Manufacturing Co Riyadh

bull Aryaf Bakeries ndash part of the Almajdouie Group strong in Eastern Province

bull Delta Modern Food ndash strong in Eastern Province

bull Rana Confectionery ndash produces biscuits wafers chocolates toffees and candy-bars 34102 Dairy Ingredients Usage

Usage of dairy ingredients in this sector is varies considerably between the players

bull National Foodsrsquo annual use is approximately as follows

‒ SMP ndash 180 mt (mainly low heat some medium heat US product is well regarded especially for the chocolate production



‒ WMP ndash 120 mt

‒ DWP35 ndash 84 mt

‒ Lactose ndash 60 mt

‒ Butter ndash 1200 mt

Sourcing was lead by specifications up until the price spikes of 2007-2008 however since then it has been dominated by price The market offers very little scope to raise consumer prices without affecting sales so the company has been under enormous pressure Hence although butter is a key item volumes are being reduced Fructose is being used to replace sugar and there is potential to use more lactose to lessen the requirement for sugarfructose in cakes ndash the lactose volume could be 10 times higher if pricing allowed

The company is considering the potential for using WPC34 in formulations to reduce its SMP costs and would like to get technical support from suppliers in this respect It has not trialed this yet as it lacks ready facilities to do small-scale pilot projects There could also be an opportunity for permeate which it has not used to date

bull Aryaf Bakeries operates a large-scale plant in Dammam and a small production facility in Medina plus 13 retail bakeries as well as the Cafeacute Liwan coffeesandwich chain (6 outlets) It describes its dairy purchasing as follows

‒ From traders WMP butter ghee

‒ Direct Mozzarella (from Europe) Feta and Akkawi cheese (both local source) and cheddar (minor)

bull Delta Modern Food Factory its main plant produces bread rolls buns etc whilst pastries and cakes are produced in a handful of its own retail stores with the bulk of product selling into retail (under the Delta brand) or foodservice around Eastern Province Exports are minor to Bahrain and Kuwait The company buys dairy ingredients for use in around 30 of its ~60 product lines as follows

‒ SMP 5 mtmonth

‒ WMP 10 mtmonth

‒ Butter 15 mtmonth

‒ Skim milk

‒ Whey powder starting to use in December 201

For the last 20 yars the majority of products have been purchased from New Zealand with European supplies also used on occasion when availability is limited

bull Saudi Master Baker this firm operates industrial bakery plants in Dammam (4) and Jeddah (2) with significant exports and is one of the leading producers of cakes (cup-cakes mini-cakes sliced cakes) rusks croissants and pastries The company is also the largest producer in the world of samosa leaves Dairy requirements are given approximately as follows

‒ Dammam

bull SMP medium heat 3-5 mtmonth mainly for cakes



bull WMP

bull SWP 2 mtmonth mainly for rusks

bull Cheddar lt1 mtmonth for use in puff pastries

bull Feta

bull Lactic butter (US product well-regarded)

‒ Jeddah

bull SMP 120 mt (mainly in cakes a little in rusks)

bull SWP 48 mt more in rusks less in cakes)

bull WMP 12 mt

No permeate or lactose is used by the firm All dairy ingredients are sourced from Europe ndash there appears to be no experience with US product

bull Nabisco Arabia Company Ltd (NAARCO) a relatively minor user taking around 1 containeryr of both SMP and whey powder Purchasing is handled through Kraftrsquos regional office in Zurich

bull Rana Confectionery key dairy ingredients used comprise

‒ WMP 40 mtmonth

‒ SMP 20-30 mtmonth

‒ Prochoc from IDIIngredia (France)

‒ No whey powder or lactose is used The company has used US dairy products before without problem though most supplies are from Europe and New Zealand

3411 Processed MeatSeafoodConvenience Foods

34111 Sector Trends

Whilst no reliable data was found to confirm trends in these complementary and overlapping sectors there are a number of key players to consider

bull National Food Industries part of Kuwaitrsquos Americana this is the largest volume manufacturer in this category with a production capacity estimated at between 50000-60000 mt

bull Herfy producing for its own restaurants and also for the retail market

bull Sunbulah this company produces convenience foods which range across vegetables burgers pies pastries and cakes to pizza and shredded cheeses These range across frozen and ambient products and are either sold under its own brands or on private labels with some product also simply traded All production is in KSA but the brand is well developed in export markets around GCC and Africa

bull Pan Gulf Foods it produces processed meat products under the brand name Vita of the business Vita Foods which it acquired in 2011 the range is produced for the home market and for export




Trade sources indicate that there is negligible use of dairy ingredients in the processed meat sector There is little drive to change this consumers prefer product with higher levels of fat and a better tastemdashhealthnutrition is a minor decision driver One company which has worked to consider dairyrsquos potential is Pan Gulf which produces a range including burgers (beefchickenmutton) kofta kebabs chicken nuggets mutton mince and shish kebabs The meat division has been considering replacing its soy proteins with WPC34 but the result of its evaluation is that this seems unlikely to prove successful It highlights the reasons for this as follows

bull Pricing vs soy alternatives

bull Functionality WPCs do not provide the same texture as soy TVP (the products are based on a coarse ground mincemeat known as ldquohashanrdquo) nor do they offer the same degree of water absorption

There are niche opportunities in cheese supply to some such businesses which make packaged pizza For example Sunbulah buys US Mozzarella but generally takes the view that Canadian European and Oceania cheeses are better than those from the US

bull It admits this perception may draw less on real quality issues than on the sheer lack of US market effort there is a view that US suppliers have ldquono passionrdquo and if the product is being offered through a foreign trader it is much more likely that another supply source will be chosen

bull Sunbulah is also not keen on sourcing through traders which US suppliers use but which add little value it buys in blocks and does all shredding itself then using product on its pizza and also selling Sunbulah branded shredded cheese

bull Pricing off the CME creates too much price variability and makes it hard to establish a strategic relationship with US suppliers

The company indicates potential interest in suppliers of

bull Lower cost alternatives to Mozzarella ie pizza cheese and analogues ndash this would only be applicable for private labels however A realistic starting volume could be 1-2 containers monthly

bull Processed cheese blocks 3412 Key Supply Chain Partners ndash Ingredients

There are relatively few independent local importerdistributors of ingredients with some of the largest users importing directly (eg SadafcoFonterra JamjoomFrieslandCampina Danya FoodsArla etc) and with many buyers dealing with importers in the UAE The following are 2 which do operate with offices in KSA itself Ahmad A Abed Trading Establishment Al-Ziab Commercial Center (Office No 3132 4th Floor) Salah Al Dein Street (Sitteen St) Malaz Area Riyadh



PO Box 9440 Riyadh 11413 KSA W3 wwwaaabedcom Tel +966 1 4785292

Ahmad A Abed Owner Email aaabedaaabedcom Cell +966 50 5477270

This company is a bakery supplies business with very strong distribution around the Kingdom Its product range is diverse and specialized in bakery applications but includes sweet whey powder DWP40 (for chocolate producers) and SMP Food Specialties Ltd (FSL) Riyadh Office Al Joury Building Office No 6 amp 7 Rafi Bin Al Ali Street MALAZ Riyadh KSA Tel +966 1 2912766 Jeddah Office Flat No 306 amp 307 Markaz Abraj (Tower Centre) Building Hamza Shahata Street (Between Madinah Road amp Hail Street) Jeddah KSA Tel +966 2 6455059 W3 wwwfoodspecialitiescom wwwtamergroupcom (KSA partner) Contact Mr Tanvir Ahmed GM Ingredients amp Dairy Commodities Cell +966 555299018 Email tanvirfoodspecialitiescom Note returning to Dubai office March 2012 Ms Bongeh Rosaline Dubai

Email rosalinefoodspecialitiescom FSL is an Indian business based in Dubairsquos Jebel Ali FTZ and in 2011 it celebrated its 25th year in operation In KSA it operates in partnership with the local group Tamer In Dubai it has around 100 staff in KSA it operates offices in Riyadh (4 sales staff) and Jeddah (8 staff of which 5 in sales) plus a salesman working from a home office in Dammam Elsewhere in the region it has offices in Jordan (3 staff) and Iraq (1 in Irbil) and also supplies into Yemen Lebanon Jordan and Syria The company has recently also set up an import office in the Indian market to handle dairy trade into India FSLrsquos business in Food Ingredients is divided into 4 areas Ingredients amp Dairy Commodities Fruit Pulps amp Concentrates Food Additives amp Confectionery and Meat Snack amp Culinary Ingredients The dairy activities involve sales of around 10000 mt annually across the region of which perhaps 2000 mt is in KSA There is concern that some products enter KSA at prices so low they are indicative of ldquoproduct dumpingrdquo which restrics market development



Sales are made on indent ( commission of supplierrsquos invoices to end customer) invoiced direct to the end customer or on the basis of distribution through FSLrsquos warehouses in Riyadh Jeddah or Dubai SMP is the key item making up perhaps 6000 mt from this figure and is also the predominant item in KSA Most enquiries are for medium heat product for use in processed cheese yogurt and recombined milks Other dairy ingredients sold in KSA include

bull Lactose ndash mainly to chocolate manufacturers

bull DWP40-50 ndash mainly to chocolate manufacturers

bull SWP ndash from Canada

bull Whey permeate ndash for evaporated milk and SCM

bull Cheese powder

bull Cheddar and cream cheese ndash for processed cheese production (not for foodservice although FSL does cover this channel in Dubai)

Supply partners include Valio (high quality but limited availability) FrieslandCampina Lactosan Glanbia Nutritionals (not on dairy but on vitaminsminerals) Danisco (now DuPont) They see little market for WPCs there is very little use in local yogurt production where hydrocolloids such as pectin are widely used They have theoretical potential but require significant marketing There are few perceptions of US product as its role on the market is very limited FSL has definite interest in approaches from potential suppliers in the US for

bull SMP medium heat

bull Lactose (fine 160-200 mesh)

bull SWP

bull DWP40-50

bull Whey permeate

bull Butter (sweet cream of main interest US white butter is seen as a plus cheese manufacturer ndash Kraftrsquos processed cheese here is very white and effectively sets the benchmark)

Another possibility could be Hi-Pro Food Hi-Pro Food Jeddah KSA wwwhi-profoodcom Contact Mazen Al-Attar Commercial manager Cell +966 50 4637132

Hossam Kouieder Logistics Manager Email saleshi-profoodcom



Hi-Pro formerly imported milk powder from Brazil It no longer does so but could be interested in other opportunities to handle dairy products Currently the company specializes in importing food items from countries including from Brazil Paraguay Uruguay Australia Belgium Holland China The range includes Frozen Beef Chicken Lamb Vegetables French Fries for sale in KSA and the GCC 3413 Barriers to Trade

The duties for all the dairy products covered in this report are 5 Other than difficulties which can arise in dealing with documentation there are few barriers to supplying dairy commodities into KSA Details of documentation requirements for the market are provided in Appendix 8 Two useful sites for monitoring import regulationsprocedures are as follows

bull wwwcustomsgovsaCustomsNewtarifftrfmain_Easpx

bull wwwthe-saudinetbusiness-centerregulation-importhtm Companies have the opportunity to get duty exemptions if they can prove that the imported item will add value to the final product Duty exemption on new commodities and extensions must be applied for every year with the Saudi Customs If refused a supplier can refile its request one more time during the year According to some sources there appears to be a trend for fewer exemptions granted than in the past

Egypt amp Saudi Arabia Cheese amp Dairy Ingredients Chapter 4 AppendixmdashProcurement Contacts Egypt


4 Appendix ndash Procurement Contacts Egypt

The following are selected key contacts in Egypt dealing with the procurement and selection of dairy ingredients in the local food industry Advanced Food Industries SAE (Gandour Group) ndash Chocolate Land 4 Block 13018 First Industrial Zone El- Obour City ndash Cairo Egypt W3 wwwgandourcom Tel 00202 610124456 Fax 00202 6101243 E-mail infogandourcom Best Cheese Co (Lactalis) ndash Dairy 1 El-Obour Buldings Salah Salem Road Cairo Egypt wwwteamamilkcom Tel +20 2 22623888999 Contact Noha Sayed El Ahl Purchasing Manager Block 13036 Obour Industrial City Tel +20 2 46103875 Cell +20 10 8559937 Email nohaahlbccegyptcom Cadbury (Kraft) ndash ConfectioneryBakery 10th of Ramadan City-B2 POBox 100 Egypt Tel +20 15 36156123 E-mail HishamFaridcsplccom Contact Hisham Mohamed Farid Elsayed Hussein Laboratory Manager Covertina ndash Bakery 8 6th October Street Suez Bridge Cairo ndash Egypt Tel +20 2 22989827 22989826 22989823 W3 wwwcovertinacom Contact Mr Mamdouh Abdel Gayed Operation Manager

Cell +20 10 5676307 20 11 8965534 Mohamed Abdel Aziz Cell +20 12 22115579 Editandash Biscuits cakes amp confectionery Berzi Group Building 6 Mohammed Salem St Warraq Al Haddar Area Cairo Egypt W3 wwweditacomeg Tel +20 2 35400888 3833-4123



Contact Moataz Haggag Email MoatazHaggageditacomeg Enjoy (Gozour) ndash Dairy Kombera Imbaba Giza Cairo Egypt W3 wwwenjoy-egcom Tel +20 2 38900401-6 Contact Mahmoud Hashish Purchasing Manager Cell +20 100 9800909 Email MahmoudHashishgozourcom Faragalla Group ndash Dairygrocery products 1st Industrial Zone Borg El Arab Alexandria Egypt W3 wwwfaragallacom Tel +20 3 4592043 4593210 Contact Mohamed Fayek Purchasing Manager Cell +20 12 2221241 GSF Egypt (Golden State Food) ndash Bakerymayonnaise (McDonalds supply) 1st Industrial Zone 6th of October City Cairo Egypt Tel +20 2 38334315 Contact Mohamed Zakaria Export ndash Purchasing Manager

Cell +20 12 2126530 E-mail m_zakgsfegyptcom Rarsquofat Ibrahim Factory Manager Eng Ahmed Ghazy Production Manager

Honey Well Egyptian Modern Food ndash Biscuits cakes amp confectionery Ind Zone A2 Beside National Panasonic 10th Of Ramadan Cairo Egypt Tel +20 15 41266102 Contact Eng Mahmoud Bendary Chief of Laboratories amp Packing amp Wrapping Nabil El Yamani Purchasing Email NabilelyamaniHoneywell-egyptcom Juhayna Dairies and Juices 6th October City 1st Industrial Zone Plot 39 and 40 Giza Egypt Tel +20 2 833 3655 ndash 3644 Fax +20 2 833 0363 W3 wwwjuhaynacom Contacts Amr Fathy Madany Procurement Manager



Email amrmjuhaynacom Ahmed Alaa El Din Ahmed Procurement Specialist Email purchasejuhaynacom Lactomisr ndash Infant nutrition 3rd Industrial Zone 10th of Ramadan El Sharkeya Cairo Egypt W3 wwwlactomisrcom Tel +20 15 411777 Contact Dr Mervat Mostafa Email DrMervatMostafaLactomisrcom Amgad Abdel Moemen Purchasing Nestleacute Egypt 3 Abou El Feda St Zamalek Cairo Egypt Tel +20 2 27356887 27357293 27381754 Contact Mrs Irini Awad Procurement Manager Cell +20 10 1055008 Riyada Port Said For Food Industry Km 5 Beside Kapci Coatings Ind Zone Port Said Egypt Tel +20 66 3772070123 Contact Ms Noha Gado Purchasing Manager Email purchasingreyadanet Sakr For Food Industries Company Head Office 23 Ibn Maged street Sidi Gaber Alexandria Egypt W3 wwwsakrgroupnet Telfax +20 3 5432802 2852 +20 3 5462890 +20 3 5234632 3 Factory 3rd Industrial Area New Borg Al-Arab City PO Box 439 Sidi Gaber Alexandria Contact Mr Ahmed Mohammed Sakr Chairman Cell +20 10 6388226 E-mail ahmedsakr1sakrgroupnet sakralexyahoocom SECLAM Dairy Processing Al Mansour Manufacturing and Distribution Company Mostafa Kamel St El-Ras El-Soda



Alexandria W3 wwwseclamfoodcom Tel +20 3 534 5771 Contact Mr Khaled Fouad El-Samny Commercial Manager

E-mail khaledelsamnymansourgroupcom Mob +20 12 338 8675

Egypt amp Saudi Arabia Cheese amp Dairy Ingredients Chapter 5 AppendixmdashProcurement Contacts SA


5 Appendix ndash Procurement Contacts Saudi Arabia

The following are selected key contacts in KSA dealing with the procurement and selection of dairy ingredients in the local food industry Almarai ndash fresh dairy PO Box 8524 Riyadh 11492 KSA Tel +966 1 4700005 Contacts Purchasing for Dairy amp Bakery Operations

Majed Nofal Purchasing Tel ext 1822 Email MajedNofalalmaraicom

Ramesh Nair Senior Purchasing Manager ndash Direct Materials Cell +966 50 3254890 Email rameshnairalmaraicom Product Development Dairy

Victor O Aigbogun Head ndash Product Development amp Innovation RampD ndash QPD Tel ext 1366 Cell +966 50 4499868 Email victoraigbogunalmaraicom

Al Safi Danone Ltd ndash fresh dairy PO Box 10525 Olaya Road Riyadh 11443 Tel +966 1 2119999 Contact Dominique Floch Sourcing amp Supplier Development Director Fahad Al Salem Sourcing amp Supplier Development Milk amp Project Buyer Al Rabie Saudi Foods Co Ltd ndash recombined dairy PO Box 42787 Riyadh 11551 KSA W3 wwwalrabiecom Tel +966 1 4981234 Contacts Omar Ali Elnawasrah Technical Development Consultant ext 103104 cell +966 50 4447118 email omar2alrabiecom Syed Zafar Hussaini Product Development Manager ext 104 cell +966 50 0792524 email zafaralrabiecom David Reilly Technical Director Al Tarsquoif National Dairy Products Factory ndash fresh dairy Po Box 123 Hawiyah Tarsquoif KSA Tel +966 2 7254436 Contact Osama Fouad Purchasing Manager Cell +966 50 3790051 Email taifdairy6yahoocom



Aryaf Bakeries ndash bakery Al Faisalyah Area Dammam Tel +966 3 8876333 W3 wwwalmajdouiecom Contact Abdul Mohi Supply Chain Manager ext 102 Khalid Al-Anzi Procurements Team Leader Tel +966 3 8198686 Cell +966 55 1153600 Email khalidmaalmajdouiecom Babatin Factory for Sweets amp Chocolates ndash chocolateconfectionery Industrial City ndash Phase 3 PO Box 5622 Jeddah 21432 KSA Tel +966 2 6380870 W3 wwwbabatincom Contact Omar Abu Baker Babatin General Manager Tel +966 50 5605451 Batook Chewing Gum Ind Ltd ndash chewing gum (no dairy use) PO Box 25 Al-Khobar 31952 KSA Tel +966 3 8121245 W3 wwwbatookcom Contact Mr Ansari Purchasing Manager Cell +966 593049913 Batterjee Ice Cream ndash ice cream Jeddah KSA Tel +966 2 6365164 Contact Jamal Purchasing Manager Cell +966 50 4378150 Delta Modern Food Factory ndash bakery PO Box 7712 2nd Industrial Area Dammam KSA W3 wwwdeltabakecom Tel +966 3 8123030 Contact Ibrahim Abbas Purchasing Manager Email abbasdeltahotmailcom Mohammed Ali Abbas General Manager Email gmdeltabakecom Cell +966 50 5811620 Mr Rolex Assistant to General Manager Cell +966 54 8854528 Etihad Salehia King Fahad Road POBox 9435 Riyadh 11413 KSA Tel +966 1 4625151 W3 wwwsalehiacomsa Contact Cher Badr Dairy Purchasing Manager Cell +966 55 5112298



Forsan Foods amp Consumer Products Co Ltd ndash cheese PO Box 8103 Riyadh 11482 KSA Tel +966-4659144 W3 wwwforsancomsa Contact Mr Talal GM Rabieh G Outa AGM Marketing amp Sales Cell +966-504424537 Email roforsancomsa Gandour ndash chocolate MAJ Food Distribution Systems Road 414 Street 412 Industrial Area Phase IV Jeddah 21493 PO Box 13416 Jeddah 21493 KSA Tel +966 2 6366608 W3 wwwgandourcom Contact KPrasanth Asst Materials Manager

Email prasanthangandourcom Omar Halabi Buying Specialist Tel ext 1909 Cell +966 53 2408979 Email ohalabigandourcom

Halwani Brothers ndash recombined dairy Jeddah KSA Tel +966 2 6366667 W3 wwwhalwanicomsa Contacts Ayman Fahmy Purchasing Director Email aymanfahmyHalwanicomsa Deepak Datta Purchasing Manager Tel ext 651

Email ddattahalwanicomsa Farouq S Akilah External Purchasing Specialist

Tel ext 653 Email faroukakilahhalwanicomsa

International Pediatric Nutrition Company (IPNC) ndash infant nutrition (AlmaraiMead Johnson) POBox 8524 Riyadh 11492 KSA W3 wwwatfalenfacom Tel +966 1 4903600 Contact Chuck Davin GM

Tel +966 1 4903604 direct dial Email chuckdavinipnsacom Rizki Raksanugraha Head of Supply Chain Direct tel +966 1 4903603 cell +966 50 634 5344 Email rizkiraksanugrahaipnsacom Ben Wagenaar Mead Johnson Europe Email BenWagenaarmjncom

Nabisco Arabia Company Ltd (NAARCO) ndash biscuits



PO Box 4113 Dammam 31442 KSA Tel +966 3 8473502 Contact Iqbal Sami Supply Chain Manager

ext 228 email ssamikrafteuropecom National Food Company (Americana group) ndash cakesbakery PO Box 51047 Jeddah 21543 KSA W3 wwwamericana-groupnet Tel +966 2 608122012291237 Contacts Mohammed Y Said Production Manager Cell +966 50 5665035 Email yehiaamericanacakecom Shahid Mahmoud Purchasing Manager Email shahidamericanacakecom National Food Industries Company ndash recombined dairy Industrial City Phase V P O Box 32-040 Jeddah 21428 Saudi Arabia Tel +966 2 6081515 Fax +966 2 6367938 W3 wwwnficcomsa Contact Tom Cooney Operations Director Tel +966 2 6081515 ext 139 Cell +966 50 5695111 E-mail tomnficcomsa Mr MJ Selvanesan Purchasing Manager

Tel +966 2 6081515 ext 125 Cell +966-506368743 E-mail selvannficcomsa

The National Agricultural Development Co (Nadec) ndash fresh dairy PO Box 2557 Riyadh 11461 KSA W3 wwwnadeccomsa Contact Ahmed Hassan Al-Shaib Purchasing Manager Production Material Pan Gulf Foods ndash meat PO Box 2473 Alkhobar 31952 Tel +966 3 8670333 W3 wwwpangulffoodcom

wwwpangulfholdingcom Contact Faisal Khan Meat Technologist Email faisalkhansbgfoodcom vitaspgfoodcom Cell +966 55 880106 Patchi Chocolate Co Office Khaleej Dist Riyadh KSA Tel +966 1 2770704 Plant



Saudi Lebanese Food Company Jeddah KSA Tel +966 2 6657000 W3 wwwpatchicom Contact KSA

Loay Farhat Supply Chain Manager Cell +966 05 35912199 email loay_farhatslfcho-sacom

Lebanon Rana Darazi Manager Procurement Division Email ranadarazipatchi-industrialcom Patchi Industrial Co sal PO Box 38 Saida Lebanon Tel +961 7 970037 38 39 40

Rana Confectionery Production Co (RCP) ndash biscuits chocolate confectionery 2nd Industrial Area Al Kharj Road PO Box 25356 Riyadh 11466 Tel +966 1 4980800 Contact Mohamed Bashir Purchasing Manager Email bashir2424gmailcom Saudi Master Baker ndash bakery PO Box 7091 Dammam 31462 Saudi Arabia Tel +966 3 8125200 W3 wwwsaudimasterbakercom wwwsaudiswitzgroupcom Contacts Mr Varghese Devassy Purchasing Manager Tel ext 124 Cell +966 50 8831167

Email varghesesaudiswitzgroupcom Mr Mujeeba Production Manager Jeddah

Tel +966 2 6364295 ext 222 Email mujeebaswitzgroupcom Saudi Ice Cream Factory Co (Kwality) ndash ice cream PO Box 2512 Nazlah Jeddah 21461 KSA Tel +966 2 6360807 W3 wwwkwalitycomsa Contact Abdalrahman M Abdallah

Tel +966 2 60822226367414 Email amakwalitycomsa

Sunbulah Group ndash convenience foods amp cheese (Food and Fine Pastries Manufacturing Company Ltd) POBox 8960 Jeddah 21492 KSA Tel +966 2 636 8485



W3 wwwsunbulahgroupcom Contact Hassan Saleh Commercial Manager Taha H Bamarouf Commercial Planner Tel +966 2 6143938 ext 205 Cell +966 50 7655675

Email thb sunbulahgroupcom United Food Industries Corp Ltd Co (Deemah) ndash chocolate PO Box 3654 Riyadh 11481 KSA W3 wwwdeemahcom Tel +966 1 2652000 Contact Mr Thaer Obeidat Asst Purchasing Manager Raw Materials

Tel ext 539 Email thaerdeemahcom Cell +966 54 4625247

United Food Industries Corporation (UFIC)Lactalis (Pride) ndash processed cheese United Group Logistics Centre Opp Alyoum News Paper Printing Press Khaledyah P O Box 64 Alkhobar 31952 KSA Tel +966 3 8147440 W3 wwwunitedgroupcomsa Contact Ataul S Haque Supply Chain Manager - Global Sourcing ext 177 email ahaqueunitedgroupcomsa United National Dairy Company (Al Rayan Plant) ndash fresh dairy United National Dairy Building Qatar Salwa Street Al Hofuf Eastern Province Tel +966 3 5816700 Mohamed Siddiq Purchasing Manager Email Mohamedsiddiqund-ksacom Wadi Fatma Factory For Foods amp Milk ndash recombined dairy Head Office POBox 112 Jeddah KSA W3 httpmbamujallycom Tel +966 2 6474236 6473269 6470708 Plant PO Box 39930 Southern Circle ndash In Front of Saptco Transport Riyadh KSA Tel +966 1 2953434 2953232 Contact Tarek El Gohary Finance amp Purchasing Manager Email tarek_elgohary4yahoocom

Egypt amp Saudi Arabia Cheese amp Dairy Ingredients Chapter 6 AppendixmdashConfectionery Formulations Egypt


6 Appendix ndash Confectionery Formulations Egypt

Table 6a Use of Dairy Ingredients Mars ndash StixFlutes

Galaxy Stix new recipe D03 Galaxy Flutes Galaxy Flutes Vanilla

Wafer Filling Total Chocolate Wafer Filling Total Chocolate Wafer Filling Total

4330 567 10000 2916 3063 4021 10000 2916 3063 4021 10000

Sugar 3972 171982 3980 121909 3980 121907

Icing sugar 3980 225666 2679 107728 2768 111305

Deodorised Cocoa Butter

SMP 374 896 67009 375 2876 127109 375 2155 98129

Whey Powder 00000

Lactose 623 25053 1460 58703

Lecithin 067 050 05730 067 048 03972 067 050 04037

Water 380 16454 380 11640 380 11639

Methyl Vanillin 005 00193 005 00201

Wheatflour 4696 203353 4706 144137 4706 144136

G P Fat ( soft ) 397 17198 398 12191 398 12191

Cocoapowder alk 062 995 59095 062 454 20173 062 01905

Salt 033 01426 033 00999 033 00999

Stacream 2886 163636

Lauric Fat Hard

Lauric Fat (Soft) 3315 133272 3563 143248

Chocolate 896 50803 10000 291623 10000 291600

Cocoa mass natural (bulk) 148 08392

AMF (Bulk) 149 08448

Wafer

Hazelnut Fines

Brown Colour (Euroblend) 019 00808





10000 10000 1000000 10000 10000 10000 1000000 10000 10000 10000 1000000

Source Mars Table 6b Use of Dairy Ingredients Cadbury Dairy Milk

Current Egypt Recipes Potential Alternatives

CDM Cadcoat CDM 1425 Tortworth type CBE Compound UK CDM 1425

(from RSA) (from rSA)

Ingredient age age age age age age

Sugar 4393 4722 485 504 524 480

AS Butter 973 000 00 94 00 990

A Butter 152 000 75 28 00 140

CBE 454 000 50 53 00 00

CBR 000 2692 00 00 00 00

CBE (palm + 12-15 exotics as used in UK CDM)

000 000 32 30 00 00

Pure palm CBE (independent of CCB)

000 000 00 00 00 450

Coberine-type CBE (35 exotics-linked to CCB price)

000 000 00 00 00 00

Toffee Fat 000 000 00 00 278




Cocoa mass (ex Barry) 1099 000 113 96 00 113

Cocoa powder 000 698 00 00 50 00

FCMP - spray 2861 1829 98 139 00 95

FCMP - roller 000 000 00 00 00 00

Milk Fat (AMFButter Oil) 000 000 30 00 00 30

SMP 000 000 00 00 00 00

Whey powder 000 000 110 50 140 106

Lactose 000 000 00 00 00 00

Lecithin 054 040 05 06 00 07

PGPR 013 000 02 00 07 01

C Essence C101 001 000 00 00 00 00

C Essence C201 001 000 00 00 00 00

CDM Oils 000 00 00 00 00

White Sugar flavour 000 000 00 00 00 00

D Essence (blend) 000 000 00 00 00 00

Vanilin 000 011 00 00 00 00

Famodan 007 00 00

Water 000 00 00 00 10




1000 1000 1000 1000 00 1000 1001

Source Cadbury



Table 6c Use of Dairy Ingredients Cadbury Countlines

Gersy Gersy Jumbo Moro

Moro Coffee

Moro Peanut

Raw Material Unit Local Local Local Local Local

CDM Flavor Oil Kg 000 00002 000

Cocoa Butter CBA Kg 610 610 553

CBESS c101 Kg 003 003 003

CBESS c201 Kg 003 003 003

Cocoa Mass Kg 5923 5960 4002

Fructose Syrup 71 Kg 2992 3 3233 2665 2665 2780

CBR Kg 10371 10 8997

PGPR Kg 114 104 101

Instant Coffee Kg 465

Milk Flavor Kg 028 028

Coconut Kg 15766 15 17039

Skimmed Milk Powder Kg 955

Gelatin 220 Bloom Kg 055 0 060 029 030 029

FCMP Kg 7493 7 6500 17549 17675 15678

Cetodan Kg

Fomodan Kg 029 0 025

Glucose Syrup 77 Kg 27354 27 29560 32038 32356 29154

Cocoa Powder Nat Kg 2715 3 2355 1402

Sugar Kg 35702 35 34716 30965 31298 24881

Whipping Agent Kg 376 0 406 195 201 067

Vegetable Fat Kg 5104 4970 5100

Malt Extract Kg 2116 2170

Lecithin Kg 147 0 128 324 324 302

Vanillin Kg 044 0 038 028 028

Peanut Kg

Salt Kg 296 334 245

Sod Meta Bisulphite Kg 043 0 047

Quarter Peanut Kg 10512




Moro Coffee

Moro Peanut

Peanut Powder Kg 4771

Cocoa Butter Deodorised Kg 3904 3903 3482

Cocoa Butter Equivalant CBE Kg 1823 1823 1652

Capitchino QL 25414 Kg 107

Total Raw Material Ton 103087 103104 105119 105057 104268

Source Cadbury

Table 6d Use of Dairy Ingredients Cadbury Chixo Liquid Chocolate

Material Cod No Req Stand Wastage Total

Sugar 1000196 443671 4437 448107

XP1168 ( Super Palm Olein ) 202262 8023 210284

FCMP 1000180 272727 2727 275454

SF11HT cocoa powder 1000190 40452 0405 40857

CLU (Untreated Cocoa Mass) 1000020 40452 0405 40857

SN100 ( Lecithin ) 1000258 6525 0065 6590

PGPR 1000045 3915 0039 3954

vanillin crystals 1000259 0098 0001 0099

TOTAL 1010101 16101 1026202

Source Cadbury Note Requirement for 1 mt end product



Table 6e Use of Dairy Ingredients Cadbury Eclairs

FAC per 100 CS - 2008

10002651 Eclairs 5gmX100 pcs X 12 bgs FAC

Description Total Value Quantity Un

Direct Labor 63056 0600 HR

85000750 Chocolate Coating 115319 108000 KG

30004295 Poly Eacuteclair TW CPP Plus 83 113393 20806 KG

30004931 Bags Eacuteclair 15 pcs X 5gm 15712 6090 KG

30004936 Cases Eacuteclair 5gm X 15 X 36 11311 100100 EA

23300120 Adhesive tape printed cadbury group 5 cm 855 3075 EA

23300883 Separator Eclairs 29 19 cm 1100 100000 EA


23300264 Butter Flavour 5616 1181 KG

23300029 Sugar 33647 128915 KG

23300352 Glucose Syrpe ( 84 ) 70161 262777 KG

23300026 Sweet Whey Powder 16984 12219 KG

23300031 Vegetable Fat 39862 67563 KG

23300044 Sodium Cholride ( Salt ) 098 1466 KG

23300021 Toffan 1430 0695 KG

23300007 GMS 1954 1927 KG

23300016 Skimmed Milk Powder 108141 36658 KG

FOH 26324 0600 HR

11385 0600 HR

101172 0600 HR

000 0600 HR

79196 0600 HR

66989 0600 HR

000 0600 HR

Total cost 8853050

Egypt amp Saudi Arabia Cheese amp Dairy Ingredients Chapter 7 Egyptian Cheese Exports


7 Appendix ndash Egyptian Cheese Exports

Table 7 Egyptian Cheese Exports by Country 2008 - Jan-Jul 2011

Country 2008 2009 2010 2011

Saudi Arabia 23975 31275 37083 22172

Iraq 21945 25125 30401 16444

Libya 13288 16889 24117 5919

Yemen Republic 5561 9264 13280 7319

Kuwait 4281 4105 13240 3012

Jordan 6906 8032 9419 5125

Lebanon 6227 6171 7086 3757

Oman 4040 9902 6493 3080

Syria Arab Republic 2065 3173 4910 2127

United Arab Emirates 3108 3104 4425 2732

Palestine 2730 3000 2851 1103

Israel 223 556 2452 718

Morocco 531 1181 2131 554

Haiti 937 1040 1758 1246

Qatar 850 1018 1712 861

USA 323 469 1068 624

Eritrea 575 808 813 631

Mauritius 249 512 461 348

Vietnam 106 1048 340 316

Bahrain 348 331 336 251

Sudan Republic 208 299 317 4

Albania 52 75 166 38

Anoglia 293 267 158 131

Djibouti 92 964 102 81

Senegal 372 481 90 51

Cote D`Ivoire 28 70 87 8

Tunisia 120 - 81 115

Seychelles 4 9 79 24

Canada 17 36 67 19



Country 2008 2009 2010 2011

Malaysia 0 69 63 32

Netherlands 0 2 62 -

Russian Federation - - 48 -

Pakistan 37 61 37 34

Mozambique 17 26 26 33

South Africa 5 31 26 31

Surinam 5 26 26 13

Liberia 16 24 24 16

Sierra Leone 8 8 24 -

Greece 17 - 21 -

Sri Lanka 34 26 21 15

Sweden - - 19 -

Gabon - - 17 38

Mali 37 26 16 -

India 100 - 15 9

Australia - 18 14 17

Congo - 51 9 16

Guinea 23 39 9 18

Gambia 17 11 9 -

Namibia - - 9 -

Comoros Islands - - 8 -

Republic Of Tajikistan - - 7 -

Republic Of Turkmenistan - - 7 -

Uganda - 1 7 -

Foreign Ships Supply - - 6 7

Republic Of Uzbekistan - - 6 -

Kenya - 7 2 1

Italy - 16 1 0

France - 0 1 -

Samoa - - 1 -

United Kingdom 20 69 1 -

Cameron 70 35 1 10

Austria - - - -



Country 2008 2009 2010 2011

Bengladish - - - -

Benin 14 8 - -

Burundy - - - 8

Central Africa Republic - 0 - -

Cyprus 1 - - -

Ethiopia 64 - - 38

Algeria - 127 - 167

French Guiana 9 - - -

Germany - 41 - -

Ghana 8 22 - 32

Hong Kong - 3 - -

Ireland - 2 - -

Japan - - - -

Madgascar 18 - - -

Maldives - - - -

Nigeria - - - -

PeopleS Republic Of

- - - -

RepOf Montenegro 200 17 - -

Republic Of Azerbaijan - 8 - -

Republic Of Georgia - - - 8

Republic Of Ukraine - 12 - -

Singapore 14 - - -

Spain - 11 - -

Togo 0 - - -

Turkey 488 - - -

Venzuela - 50 - -

Zambia 1 0 - -

Zembabwi 2 5 - -

Unknown - 91 232 308

TOTAL 100996 130322 166459 79759

Source Ministry of Agriculture

Egypt amp Saudi Arabia Cheese amp Dairy Ingredients Chapter 8 AppendixmdashDocumentation Requirments SA


8 Appendix ndash Documentation Requirements Saudi Arabia

Note the following summary of documentation requirements for dairy exporters to KSA is provided by Almarai As a result there may be some points of difference vs other importerscustomers

bull Invoice

bull Delivery Document (where applicable) ndash this applies to items originating from within GCC countries

bull Health Certificate

bull Certificate Of Origin (CoO)

bull Bill Of Lading (BOL)

bull Certificate Of Analysis (CoA)

bull Transfer of Title (where applicable)

bull Certificates - BSE Dioxin GMO

bull Packing list

bull Phytosanitary Certificate

bull Weigh slip (where applicable) ndash this applies to items originating from within GCC countries

bull Material Safety Data Sheet (MSDS)

bull Free Sale Certificate (applicable for animal feeds)

bull Insurance certificate

bull Tariff Code

bull Packaging conformity certificate ndash applicable only to packaging materials used for food applications where the material would come into direct contact with the food product for which the material is used for packing

bull Product Label Invoice

bull Original Invoice certified by Chamber of Commerce of the country of origin

bull Invoices must include-

‒ Consignee details as per the Purchase Order

‒ Product description as per the Purchase Order



‒ Quantity

‒ Price as per Purchase Order INCO terms

‒ Correct weight references GrossNet

‒ Purchase Order (PO) Number along with the lsquoLine itemrsquo number Certificate of Origin

bull Applicable for all materials supplied from outside the Kingdom of Saudi Arabia (KSA)

bull Certificate of Origin must -

‒ Include Consignee and product description as per Purchase Order

‒ Be certified by Chamber of Commerce in the country of origin

‒ Include correct weight (GrossNet weight) references as per the invoice BOL andor Air Way Bill (AWB)

bull Country of Origin must be declared without ambiguity eg EU or any short form of description is not acceptable

Bill of Lading (BOL)Airway bill

bull Applicable for all imported materials transported by SeaAir

bull Three Master Originals of BOL ndash This is applicable only for sea shipments (Issued by shipping line)

bull The BOL or AWB must include -

‒ Consignee and product description as per Almarai Purchase Order (PO)

‒ Correct weight references as per the invoice and certificate of origin

bull In cases of CFR CIP or CIF the BOLs must be marked `Freight Prepaidrsquo

bull In case of air shipment Airway bill copy or Air Way bill Number must be faxed or emailed to the designated Buyer

Certificates - Health BSE Dioxin GMO Phytosanitary

FoodFood ingredients FeedSeed

Health Required Not required

BSC Required Not Required

Dioxin Required Required

GMO Required Required

Phytosanitary Not Required Required



bull Above certificates are applicable for all dairy-based products and feeds imported into the Kingdom of Saudi Arabia

bull BSE amp Dioxin certificates are only applicable for all dairy-based products and feed products imported from European countries

bull All documentations shall be formatted as per local laws and regulations as applicable in the country of origin

bull All animal and poultry feed products are to be duly attested by the Saudi or other Arab Embassies or Consulates in the country of origin

Certificate Of Analysis (CoA)

bull Applicable for all items for food application food products veterinary drugs and feeds imported into KSA

bull Must include Consignee name Product descriptor as per Purchase Order

bull To be duly attested by local Chamber of Commerce (for foods only) For drugs and feeds needs to be legalized by Saudi Embassy or Consulate

bull CoA must be printed on the Supplierrsquos letter head or on an authorized 3rd party Laboratory letter head

Packing List

bull Applicable for all imported materials into the Kingdom of Saudi Arabia

bull To be printed on Supplierrsquos letter head

bull Must contain references to container number and number of packs and product descriptor as per the Purchase Order

Product Labels

bull Applicable as follows-

‒ Foods English amp Arabic label as per the template approved by Almarai prior to shipment

‒ Feeds (Animal amp Poultry chemicals and Veterinary drugs) In English only No prior approval from Almarai is needed

‒ Machinery amp Spares Except for shipping marks no special labels are required However prior to shipment Supplier must seek Almarairsquos feedback in this regard

bull Labels must contains the following minimum information


‒ Ingredient list where applicable

‒ Inclusion of terms lsquoFree From Alcohols and amp Swine productsrsquo where applicable

‒ Reference to the Purchase Order numbers (optional)

‒ Inclusion of Date of Manufacture and Date of Expiry

‒ Inclusion of Batch number lot number details



‒ ConsignersConsignees names (Address optional)

‒ Country of Origin

‒ Include the terms for lsquoIndustrial use or veterinary usersquo as applicable Country of Origin

bull As per the Kingdom of Saudi Arabia regulations all imported materials plants and machinery must have country of origin information either engraved or printed or stenciled in a manner that it is indelible

bull This is applicable for all units of materials contained in the packing list Import License amp Permits As per the Kingdom of Saudi Arabia regulations Almarai or its subsidiaries are required to apply for certain permits and licenses for importing certain materials It is expected that the Supplier would support this requirement by providing Almarai informationdocuments such as

bull Tariff Code

bull MSDS

bull Free sale certificate in Country of Origin

bull All other relevant documents as specified by Almarai for relevant registration with local regulatory bodies such as SASO SFDA

Transfer of Title

bull Where applicable the Suppliers shall provide transfer of title documents as specified in the Purchase Order or Contracts

bull It shall be provided on Supplierrsquos letter head duly attested and sealed by CEOCFOMD or any other higher authority

Insurance Certificate

bull Where applicable the Suppliers shall provide Insurance Certificate in original and as specified in Almarai PO or Contracts

bull Note Almarai Marine policy for insurance is ldquofrom Supplierrsquos warehouse door to delivery at Almarai siterdquo

Egypt amp Saudi Arabia Cheese amp Dairy Ingredients Chapter 9 AppendixmdashCheese Imports by Country SA


9 AppendixndashCheese Imports by Country of Origin Saudi Arabia

2005 2006 2007 2008 2009 2010

Fresh Cheese and Curd 4061000

USA 0 0 0 150 120 0

TOTAL 5942 0 4073 3532 3683 3725

Grated or Powdered Cheese 4062000

USA



2005 2006 2007 2008 2009 2010

TOTAL 1507 0 1831 2089 2316 2745

Processed Cheese Not Grated or Powdered 4063000

USA



2005 2006 2007 2008 2009 2010

TOTAL 54721 0 55169 48353 55335 49771

Fresh Fermented Cream Cheese 4069010

USA

Other Countries 166 279 108 364 272

TOTAL 10267 0 9692 9034 8886 8834

Solid or Semi-Solid Cheese04069020



2005 2006 2007 2008 2009 2010

USA

TOTAL 22756 0 28394 33842 28756 33688



2005 2006 2007 2008 2009 2010

Other Cheese 4069090

USA

0

TOTAL 7533 0 6821 7742 11164 15436


Egypyt SA Report Cover

MiddleEast_CheeseDairy_Finalpdf

Contents

Tables


11 Introduction



131 Key Points



141 Key Points




161 Key Points



171 Key Points


2 Egypt

21 Foreign Trade

211 Cheese

2111 Import Trends

Table 2111a Cheese Foreign Trade Trends Egypt 2008-2010 mt


2112 Supply Trends


Table 2112b EU-27 Cheese Exports to Egypt 2006-2011

Table 2112c EU-27 Cheese Exports to Egypt by TypeCountry 2010

Table 2112d US Cheese Exports to Egypt 2006-2011

Table 2112e New Zealand Cheese Exports to Egypt 2006-2011


2113 Cheese Usage and Projections

Table 2113 Projected Egyptian Cheese Imports by Type 2005-2010

212 SMP

2121 Import Trends

Table 2121 Egyptian SMP Imports 2008-201 mt

2122 Supply Trends

Table 2122a SMP Exports to Egypt by Top 4 Key Suppliers 2006-2011

Table 2122b SMP Exports to Egypt by Ukraine 2007-2010

Table 2122c EU-27 SMP Exports to Egypt by Country 2009 amp 2010

2123 SMP Usage and Projections


213 Whey

2131 Import Trends

Table 2131 Whey Imports by Type Egypt 2008-2010

2132 Supply Trends

Table 2132a Whey Exports to Egypt by Top 4 Key Suppliers 2006-2011

Table 2132b Whey Exports to Egypt by Key ProductsSuppliers 2006-2011

Table 2132c ldquoTop 4rdquo Market Shares in Whey Exports to Egypt 2006-2011

Table 2132d Whey Powder Exports to Egypt by Ukraine 2007-2010

2133 Whey Usage and Projections

Table 2133 Projected Whey Exports to Egypt Top 4 Key Suppliers 2010-2015

214 Lactose

2141 Import Trends

Table2141 Egyptrsquos Lactose Imports by Source 2008-2011 mt

2142 Supply Trends



Table 2143 Projected Egyptian Lactose Imports 2010-2015




222 Foodservice Categories

Pizza

Table 222a Pizza Market Segmentation Egypt

Table 222b Key International Pizza Chains Egypt

Table 222c Key Local Pizza Chains Egypt

Table 222d Key BurgerSandwich Chains Egypt

Table 222e Key Casual Dining Chains Egypt

Bakery Cafeacute

Table 222f BakeryPatisserie Market Segmentation Egypt

Table 222g Cafeacute Chains Key Players Egypt

Restaurant Management Companies


224 Foodservice Customer Profiles



2311 Innovation


Table 2312 Food Processors in Egypt ndash Wider MENA Connections



2322 SMP

2323 Whey Powder

2324 Cheese


2331 Liquid milk

Table 2331 Market Trends Liquid Milk Egypt 2002-2010

2332 Yogurt

Figure 2332a Trends Industrial Spoonable Yogurt 2007-2010

Table 2332b Market Shares Yogurt Egypt 2010

2333 Cheese




2334 Ice Cream ndash Sector Trends

2335 Chocolate

Table 2335a Market Trends Chocolate Egypt 2002-2010

Figure 2335b Market Volume Trends Chocolate Egypt 2002-2010 (mt)

2336 Gum

Sector Trends

Table 2336a Market Trends Chewing Gum Egypt 2002-2010


2337 Candy

Table 2337a Market Trends Candy Egypt 2002-2010


2338 Biscuits

Table 2338a Market Trends Biscuits Egypt 2002-2010



2339 Cakes

Table 2339a Market Trends Cakes Egypt 2002-2010


Figure 2339c Market Shares Cakes Egypt 2009

23310 Infant Nutrition

234 Barriers to Trade

2341 Tariffs

2342 Free Trade Agreements


3 Saudi Arabia

31 Foreign Trade

311 Cheese

3111 Import Trends

Table 3111 KSA Cheese Imports by Type 2005-2010

3112 Supply Trends

Table 3112a Cheese Exports to KSA by Key Suppliers 2006-2011


Table 3112c EU-27 Cheese Exports to KSA by Type 2006-2011

Table 3112d US Cheese Exports to KSA by Type 2006-2011



312 SMP

3121 Trade Trends

Table 3121 KSA Imports SMP 2005-2010 (mt)

3122 Supply Trends

Table 3122 SMP Exports to KSA by Key Suppliers 2006-2011



313 Whey

3131 Trade Trends

Table 3131 Whey Imports by Type KSA 2007-2010

3132 Supply Trends


Table 3132b Whey Exports to KSA by Key ProductsSuppliers 2006-2011

Table 3132c ldquoTop 4rdquo Market Shares in Whey Exports to KSA 2006-2011


Table 3133 Projected Whey Exports to KSA by Top 4 Key Suppliers 2015

314 Lactose

3141 Supply Trends

Table 3141a Lactose Exports to KSA by Key Suppliers 2006-2011



Table 3142 Projected Lactose Exports to KSA by Top 4 Key Suppliers 2015








3311 Innovation





3322 SMP

3323 Whey PowderLactose

3324 Cheese


341 Liquid Milk

3411 Sector Trends

Table 3411 Sales Trends Liquid Milk 2006-2010


342 Laban

3421 Sector Trends

Table 3421 Sales Trends Laban 2006-2010


343 Yogurt

3431 Sector Trends



345 Concentrated milks

3451 Sector Trends

Table 3451 Sales Trends Concentrated Milks 2006-2010


346 Cheese

3461 Sector Trends

Table 3461 Sales Trends Cheese 2006-2010



3471 Sector Trends

Table 3471 Expected Trends in KSA Infant Formula Market 2009-2016


Table 3472 Scheduled Future IPNC Dairy Requirements 2012-2016

348 Chocolate

3481 Sector Trends


349 Ice Cream

3491 Sector Trends




34101 Sector Trends



34111 Sector Trends



Ahmad A Abed Trading Establishment

Food Specialties Ltd (FSL)

Hi-Pro Food






Table 6b Use of Dairy Ingredients Cadbury Dairy Milk








This report was commissioned by the US Dairy Export Council with contributions from various consultants and market research experts It is part of an extensive series of reports available to USDEC members and exclusively to US dairy industry members Reports are conducted to help the industry understand growth drivers evaluate market opportunities and challenges and become a consistent global supplier

USDEC staff members are available at any time to answer further questions and one-on-one consultations on additional topics and markets are offered throughout the year at membersrsquo requests

Please contact Veronique Lagrange vlagrangeusdecorg for more details

Our full report collection can be found at wwwusdecorglibrary Reports can be ordered online or by contacting Rebecca at rvidalusdecorg

Market Research Reports

Business Development

Sourcebooks










Contents






















































Tables











11 Introduction


1 Egypt


















131 Key Points







Local













Conclusions







Recommendations








141 Key Points










Conclusions












Recommendations


















161 Key Points










Local








Conclusions




Recommendations











171 Key Points






Conclusions















Recommendations









2 Egypt

21 Foreign Trade

211 Cheese

2111 Import Trends



2008 20134 93010 72876

2009 20203 140372 120169

2010 27460 169391 141931




















0406909010 Turkey cheese 27 13 34

0406909090 Cheese other 3631 3658 2585

Total 18371 20130 27458






2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 7002 6708 8968 11999 10044 6741

US 381 1463 4026 1268 8251 6119

New Zealand 10956 9720 6094 13227 5725 811

Australia 2860 1999 1738 2428 1611 1298



EU27 33 34 43 41 39 45

US 2 7 19 4 32 41

New Zealand 52 49 29 46 22 5

Australia 13 10 8 8 6 9



Cheese -




Blue vein 040640xxxx 253 580 421 680 628 470



Of which

Cheddar cheese 04069021 1060 364 2973 4741 1819 1434

Edam cheese 04069023 3258 3871 2643 3384 3846 2503




Gouda cheese 04069078 1115 1099 1063 1369 1214 729

Total 7002 6708 8968 11999 10044 6741



Netherlands 38 5161

Ireland 1 1623


Italy 15 2 7 103

France 2 5 90

Germany 131 114 4 74

Poland 1579 50

Denmark 13 211 507 23

Austria 23 22

Greece 1 11

Greece 1 11


Cyprus

Bulgaria 2

Belgium 8

Total 162 218 629 1646 7383





Fresh cheese 0406100000 96 21 555 118 621 994

Cheddar 195 1048 2388 815 5651 3763


Cheese all kinds 0406200000 2 19 253 19 212 61

Cheese inc mixed 0406909550 57 374 440 26 15 365

Colby 0406906500 0 0 1 0 6 5






Cheddar 0406900011 10956 9720 6094 12504 4476 399


Total 10956 9720 6094 13227 5725 811

Source USDA








Cheddar 04069010 2576 1531 1606 2094 1180 1039















0406909090 Cheese other 2585 2873

Total 27458 30516




212 SMP

2121 Import Trends


2008 2009 2010 2011 (Jan-Jul)

USA 13350 5348 15033 7604

Germany 2760 3388 7225 5418

France 297 1218 3444 2482

Sweden 993 3233 3223 2381

Switzerland 2042 1570 3074 582

Finland 530 1539 1841 862

Belgium 206 848 1680 488

New Zealand 1143 1858 1296 415

Poland 707 385 1267 652


Ireland - 102 804 71

Canada 2219 1959 791 279

Ukraine 4378 1346 686 1372

India 5153 76 543 -

Singapore - 200 512 534

Australia 644 524 475 101

Denmark 39 377 368 591

ECC 479 429 240 -





2122 Supply Trends


2006 2007 2008 2009 2010 Jan-Aug 2011


EU27 6768 4720 6157 27688 20622 20453

US 15409 8460 15775 8019 17278 9955

New Zealand 1254 860 1405 4337 1465 1498

Australia 408 311 895 1227 438 126



EU27 28 33 25 67 52 64

US 65 59 65 19 43 31




2007 2008 2009 2010

Mt 1836 4249 1956 1050






Mt 2009 2010

Germany 6891 7385

Belgium 5355 4062

Sweden 6831 3751

Finland 3700 1650

France 2257 1048

Ireland 416 917

Poland 935 650

Denmark 640 430

UK - 300

Lithuania - 224

Netherlands 664 121

Spain - 59

Total 27689 20597







1 White cheese 60 27000 32850 2


3 Yogurt 7 3150 5073 4

4 UHT milk 7 3150 4020 2




2131 Import Trends






3502200000 Milk albumens 46 474 266

Total 15135 9565 25445







Jan-Aug 2011




2011




350220xxxx 20 11 101 - 104 17

6329 8603 7016 9312 10677 1178

USA Whey powder 0404104000 1377 935 663 - 741 100


WPC34 0404100500 7 175 50 19 - 292



350220xxxx - - - - 5 5

2439 2351 1017 424 2520 2023

New Zealand





2011



350220xxxx - - - - - -

2527 3660 4053 3898 2517 1740




350220xxxx - - 102 106 - -

16 140 166 242 94 -



2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 6329 8603 7016 9312 10677 1178

US 2439 2351 1017 424 2520 2023

New Zealand 2527 3660 4053 3898 2517 1740

Australia 16 140 166 242 94 -



EU27 56 58 57 67 68 24

US 22 16 8 3 16 41

New Zealand 22 25 33 28 16 35






2007 2008 2009 2010

Mt 800 150 150 691





CAGR



2141 Import Trends



Germany 863 772 1159 264

Netherlands 191 567 1117 733

China 316 222 624 300

USA 49 110 447 294


Italy 59 167 204 120




UK 9 320 124 EEC 20 123 Canada 19 28 71 101

France 145 45 42 43






Lactose lt99 170219xxxx 39 56 29 322 98 39

736 813 892 1309 1609 1161


Lactose lt99 170219xxxx 246 16300 8250 - 60 60

246 170 106 262 669 271


Lactose lt99 170219xxxx - 200 - 3 - -

201 612 168 358 213 76







Lactose 1702xx 4169 4633 2














Males Females

KSA 640 700

Lebanon 600 530

Iran 570 677

Bahrain 564 790

Jordan 460 437

Egypt 438 410

Libya 425 749

Oman 405 435

UAE 255 399



bull Pizza




Offer Type


Local Pizza Chains







Offer Type


Local Pizza Chains




Pizza Y Y Y Y



Fast Food - - Y Y

Others Y Y

Example


Thomas Tabasco



Majesty Dawwar





60







14


Little Caesars


6










Sbarro wwwsbarrocom



1






28




25


Panda

15


12

Super Queen

9

Le Tabasco La Plage

7






4


Pizza Master

4




Name Logo No

Outlets Comment

Egyptian




21 -

International -







4 -




Name Logo No

Outlets Comment

Egyptian



International


3 -







Fuddruckers


(Naghi Group)


















Kasr El Elysee - 6

El Domiaty - 6

Les Dames - 6








Egyptian

Cilantro





Beanorsquos


Trianon


Makani




Grand Cafe


International

Costa Coffee




Starbucks


















bull Smoked salmon











bull Cold Stores























































bull Cheddar










2311 Innovation





































Foodservice















KSA- 2 restaurants










































2331 Liquid milk


Mt 2008 2009 Jan-Jun 2010

Plain milk 78433 72547 55041




















Juhayna 36 57

Danone 34


Lactalis 9

Beyti 5

Enjoy 2

Labanita 2 2

0

10

20

30

40

50

60

70

80

90

0

1000

2000

3000

4000

5000

6000

7000

8000

Valu

e

Volu

me




Other neg





bull White cheese








Source AC Nielsen




Others 39

Americana 27

Arab Dairy Co 12

Domty 10

Misr October 7

Juhayna 5







Source AC Nielsen

Best Cheese - 48

Bel - 16

Arab Dairy - 10

Mashreq - 4

Other - 22







bull Fresh cheese



























2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mt 41184 48730 51630 59386 42326 49380 46179 56365 39702

US$ mn 1168 1022 1136 1567 1224 1521 1615 2145 1598









41184

48730 51630

59386

42326

49380 46179

56365

39702

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10




Sector Trends


2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mn packs 4554 5576 6556 7017 6849 7788 6971 7614 3731

US$ mn 408 349 372 358 444 552 537 623 392

Source AC Nielsen






2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mn packs 4467 4672 5107 5749 5528 5984 5480 6757 4013

US$ mn 506 396 410 510 490 593 684 796 509

Source AC Nielsen

4554

5576

6556 7017 6849

7788 6971

7614

3731

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10






2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mt 48409 59750 58587 55548 45454 67522 71372 74683 54134

US$ mn 899 846 808 875 738 1177 1697 1922 1360

Source AC Nielsen

4467 4672 5107

5749 5528 5984

5480

6757

4013

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10







48409

59750 58587 55548

45454

67522 71372 74683

54134

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10

Bisco Misr 169

Kraft Foods 151

Biscato 79

Shamedan 7

Ocean Foods 45

Others 486


Kraft Foods 149

Biscato 52

Shamedan 78 Ocean

Foods 37

Others 507

Volume





2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mt 13063 16814 17222 14673 25507 38046 44080 46362 33272

US$

348 337 325 326 543 865 1099 1166 868

Source AC Nielsen






Others 7

KraftCadbury 2

Monginis 6

Shamedan 10

River Foods 13

Edita 62

13063 16814 17222

14673

25507

38046

44080 46362

33272

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10





2341 Tariffs










bull Lactose
























bull SMP 3500 mtyr














3 Saudi Arabia

31 Foreign Trade

311 Cheese

3111 Import Trends


2005 2006 2007 2008 2009 2010 CAGR





HSH 40690200 22756 - 28394 33842 28756 33688 8

Other cheese 4069090 7533 - 6821 7742 11164 15436 15

TOTAL 102726 - 105980 104592 110140 114199 2









2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 25952 23614 16855 18773 18936 12809

New Zealand 11417 13062 10018 12913 9155 5734

US 1472 2096 6075 2288 6987 8539

Australia 21021 18880 9750 4706 7182 4318



EU27 43 41 39 49 45 41

New Zealand 19 23 23 33 22 18

US 2 4 14 6 17 27

Australia 35 33 23 12 17 14






2005 2006 2007 2008 2009 2010

Egypt




HSH Cheese 04069020 5628 0 5104 5010 5880 7495

Other Cheese 4069090 0 0 834 488 1117 1817

Total 15295 0 22058 26429 27059 24954

Bahrain



HSH Cheese 04069020 0 0 0 58 87 0

Other Cheese 4069090 0 0 0 0 0 279

Total 0 0 0 6222 13310 13700



Cheese -




Blue vein 040640xxxx 11 18 5 62 35 26


Of which

Cheddar cheese 04069021 1167 359 617 1318 1435 1235

Edam cheese 04069023 665 249 266 452 644 498

Gouda cheese 04069078 274 217 201 178 244 243




Kashkaval 04069029 32 10 46 4 196 857

Sheepbuffalo 04069050 13 65 253 380 442 320



Total 25952 23614 16855 18773 18936 12809


2006 2007 2008 2009 2010 Jan - Oct 2011

0406901000 - Cheese Cheddar 904 1134 7482 1837 27172 37230

0406200000 - Cheese All Kinds 5965 10199 5970 11151 11596 21765

0406909550 - Cheese Inc Mixt 5555 8036 35498 6602 12810 8426


0406100000 - Fresh Cheese 00 854 3541 2522 9852 8029

0406400000 - Cheese Blue-Vein 00 00 723 16 00 00

0406906500 - Cheese Colby 00 00 00 00 00 433

Total 14715 20964 60753 22882 69868 85388











HSH 40690200 33688 45082 6

Other cheese 4069090 15436 20657 6

TOTAL 114199 136506 36


3121 Trade Trends


2005 2006 2007 2008 2009 2010

New Zealand 31897 0 34709 38854 36113 18470

Australia 4892 0 11465 9443 14063 10682

Belgium 0 0 1036 1064 0 1175

Holland 2958 0 1494 3635 2010 811

France 347 0 423 170 839 760

Germany 1024 0 420 498 165 640

India 603 0 215 1846 0 464

Ireland 566 0 155 192 0 446

Poland 536 0 297 0 237 399

Latvia 0 0 0 0 170 150

Argentina 267 0 199 0 106 127



2005 2006 2007 2008 2009 2010


Finland 875 0 0 0 125 115

Uruguay 0 0 125 76 0 100

Singapore 0 0 0 0 0 100

Malaysia 436 0 0 0 0 0

US 899 0 654 533 0 0

Canada 22 0 0 0 0 0

Denmark 440 0 258 96 0 0

UK 200 0 167 0 0 0


Brazil 0 0 81 0 0 0

Ukraine 0 0 1448 0 0 0

Oman 0 0 0 53 0 0

Other 383 0 329 0 214 174

Total 47103 0 53475 57185 54042 34736



3122 Supply Trends


2006 2007 2008 2009 2010

Jan-Aug 2011


New Zealand 19240 23169 22137 17472 19406 21578

EU27 2344 3699 3869 5234 10117 10326

Australia 6291 7025 6740 6351 6617 4904

US 1753 788 809 - 271 68






EU27 8 11 12 18 28 28

US 6 2 2 - 1 0

Australia 21 20 20 22 18 13





1 White Cheese 51 19000 24249 5


3 Yogurtlaban 11 3975 5073 3


5 Ice cream 4 1500 1914 5


6 Other 4 1500 2007 6


3131 Trade Trends




2010 2009 2008 2007 Country

501 582 294 439 France


400 0 322 414 Germany

375 506 656 696 Poland

362 0 0 445 Turkey

343 456 152 0 Australia

341 0 0 0 Ukraine

0 0 113 113 India

0 0 221 290 Holland


0 0 250 0 Finland



2904 2602 2551 3065 Total

2894 1488 1346 1241 Kuwait

Other Whey 04049000

836 2118 2146 1697 New Zealand

531 257 0 112 France

0 300 200 200 Australia

0 0 502 626 Finland

0 0 0 183 UK

0 0 0 200 Poland


0 163 0 0 Canada

0 59 0 0 Denmark








Total whey products


6193 6552 6102 5874 6143 5182



2011

EU27

Whey powder 040410xxxx 2857 3315 2666 2302 2715 2211



3445 3841 2925 2653 2965 2890

USA

Whey powder 0404104000 406 172 372 128 140 73


WPC34 0404100500 - - 47 - 20 -



406 178 453 157 200 107

New Zealand

Whey powder 040410xxxx - 201 - - - -



2043 2383 2383 2421 2827 2180

Australia




2011

Whey powder 040410xxxx 299 150 341 643 151 5



299 150 341 643 151 5


2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 3445 3841 2925 2653 2965 2890

New Zealand 2043 2383 2383 2421 2827 2180

US 406 178 453 157 200 107

Australia 299 150 341 643 151 5



EU27 56 59 48 45 48 56

New Zealand 33 36 39 41 46 42

US 7 3 7 3 3 2










3141 Supply Trends




Lactose lt99 170219xxxx 1 6 4 - 17 85

219 175 77 374 423 351


Lactose lt99 170219xxxx 52 46 9 91 1241 859

113 46 9 93 1241 859


Lactose lt99 170219xxxx - - - - - -

- 34 - - - -





2006 2007 2008 2009 2010

Jan-Aug 2011


US 113 46 9 93 1241 859

EU27 219 175 77 374 423 351




US 34 18 10 20 75 71

EU27 66 69 90 80 25 29























Locally Owned






bull Burger Fuel

bull Costa Coffee


bull El Chico

bull Fuddruckers




bull Paul

bull Port City Java



bull Starbucks

bull Taco bell







Burgers


Herfy 186


PizzaItalian






Baak 7


Casual dining

Kudu 147


TGIF Americana
















































bull Chains 1989 - 8 1994 - 9 1999 - 12 2004- 16 2009 - 19










































bull Al Safi Dairy

bull Al Safi Danone

















3311 Innovation



























Foodservice












































3322 SMP



























341 Liquid Milk

3411 Sector Trends


2006 2007 2008 2009 2010 CAGR ()

Mt 496000 576800 595400 652200 692760 87



‒ Almarai 60


‒ Nadec 9

‒ Nada 7

‒ Najdyah 3


bull UHT milk




‒ Al Safi 14

‒ Nadec 3

‒ Nada 3

‒ Luna (NFIC) 2







‒ Luna (NFIC) 3

‒ Al Rabie 2



3421 Sector Trends


2006 2007 2008 2009 2010 CAGR ()

Mt 397200 403000 413200 423000 431700 21


bull Almarai 46

bull Nadec 13

bull Najdyah 4

bull Nada 4



3431 Sector Trends





2006 2007 2008 2009 2010 CAGR ()

Mt 116350 122570 127150 133100 139410 46


bull Almarai

bull Al Safi Danone

bull Nadec



3451 Sector Trends


Mt 2006 2007 2008 2009 2010 CAGR ()

Evaporated 75500 71950 71100 74650 75400 00

Condensed 4500 5050 5400 5850 6300 88





‒ Luna (NFIC) 31




‒ Almarai 6

bull Condensed milk

‒ Luna (NFIC)







346 Cheese

3461 Sector Trends


2006 2007 2008 2009 2010 CAGR ()

Mt 121960 133520 133700 140100 145600 45












bull Lactic butter





bull Edam 350 mtyr

bull Gouda






bull SMP













3471 Sector Trends


2009 2010 2011 2012 2013 2014 2015 2016

Sales (SAR mn) 2100 2310 2541 2795 3075 3382 3720 4092




Mt 2012 2013 2014 2015 2016

WPC35 15 112 197 301 413

Lactose 62 476 840 1284 1764




348 Chocolate

3481 Sector Trends
















bull Mars ndash 47













‒ DWP40 minor use












349 Ice Cream

3491 Sector Trends












34101 Sector Trends




22

20

16 9

7

6

30



Batterjee (Jumbo)

Other





































‒ SMP 5 mtmonth

‒ WMP 10 mtmonth


‒ Skim milk




‒ Dammam




bull WMP



bull Feta


‒ Jeddah



bull WMP 12 mt




‒ WMP 40 mtmonth





34111 Sector Trends

































bull Cheese powder





bull SWP

bull DWP40-50

bull Whey permeate













































































4330 567 10000 2916 3063 4021 10000 2916 3063 4021 10000

Sugar 3972 171982 3980 121909 3980 121907

Icing sugar 3980 225666 2679 107728 2768 111305


SMP 374 896 67009 375 2876 127109 375 2155 98129

Whey Powder 00000

Lactose 623 25053 1460 58703

Lecithin 067 050 05730 067 048 03972 067 050 04037

Water 380 16454 380 11640 380 11639


Wheatflour 4696 203353 4706 144137 4706 144136

G P Fat ( soft ) 397 17198 398 12191 398 12191

Cocoapowder alk 062 995 59095 062 454 20173 062 01905

Salt 033 01426 033 00999 033 00999


Lauric Fat Hard

Lauric Fat (Soft) 3315 133272 3563 143248

Chocolate 896 50803 10000 291623 10000 291600


AMF (Bulk) 149 08448

Wafer

Hazelnut Fines






10000 10000 1000000 10000 10000 10000 1000000 10000 10000 10000 1000000






Sugar 4393 4722 485 504 524 480

AS Butter 973 000 00 94 00 990

A Butter 152 000 75 28 00 140

CBE 454 000 50 53 00 00

CBR 000 2692 00 00 00 00


000 000 32 30 00 00


000 000 00 00 00 450


000 000 00 00 00 00

Toffee Fat 000 000 00 00 278





Cocoa powder 000 698 00 00 50 00

FCMP - spray 2861 1829 98 139 00 95

FCMP - roller 000 000 00 00 00 00


SMP 000 000 00 00 00 00

Whey powder 000 000 110 50 140 106

Lactose 000 000 00 00 00 00

Lecithin 054 040 05 06 00 07

PGPR 013 000 02 00 07 01

C Essence C101 001 000 00 00 00 00

C Essence C201 001 000 00 00 00 00

CDM Oils 000 00 00 00 00


D Essence (blend) 000 000 00 00 00 00

Vanilin 000 011 00 00 00 00

Famodan 007 00 00

Water 000 00 00 00 10




1000 1000 1000 1000 00 1000 1001

Source Cadbury





Moro Coffee

Moro Peanut




CBESS c101 Kg 003 003 003

CBESS c201 Kg 003 003 003

Cocoa Mass Kg 5923 5960 4002


CBR Kg 10371 10 8997

PGPR Kg 114 104 101



Coconut Kg 15766 15 17039


Gelatin 220 Bloom Kg 055 0 060 029 030 029

FCMP Kg 7493 7 6500 17549 17675 15678

Cetodan Kg


Glucose Syrup 77 Kg 27354 27 29560 32038 32356 29154


Sugar Kg 35702 35 34716 30965 31298 24881




Lecithin Kg 147 0 128 324 324 302

Vanillin Kg 044 0 038 028 028

Peanut Kg

Salt Kg 296 334 245






Moro Coffee

Moro Peanut






Source Cadbury



Sugar 1000196 443671 4437 448107


FCMP 1000180 272727 2727 275454



SN100 ( Lecithin ) 1000258 6525 0065 6590

PGPR 1000045 3915 0039 3954


TOTAL 1010101 16101 1026202





FAC per 100 CS - 2008












23300029 Sugar 33647 128915 KG

23300352 Glucose Syrpe ( 84 ) 70161 262777 KG


23300031 Vegetable Fat 39862 67563 KG


23300021 Toffan 1430 0695 KG

23300007 GMS 1954 1927 KG


FOH 26324 0600 HR

11385 0600 HR

101172 0600 HR

000 0600 HR

79196 0600 HR

66989 0600 HR

000 0600 HR

Total cost 8853050





Country 2008 2009 2010 2011

Saudi Arabia 23975 31275 37083 22172

Iraq 21945 25125 30401 16444

Libya 13288 16889 24117 5919

Yemen Republic 5561 9264 13280 7319

Kuwait 4281 4105 13240 3012

Jordan 6906 8032 9419 5125

Lebanon 6227 6171 7086 3757

Oman 4040 9902 6493 3080



Palestine 2730 3000 2851 1103

Israel 223 556 2452 718

Morocco 531 1181 2131 554

Haiti 937 1040 1758 1246

Qatar 850 1018 1712 861

USA 323 469 1068 624

Eritrea 575 808 813 631

Mauritius 249 512 461 348

Vietnam 106 1048 340 316

Bahrain 348 331 336 251


Albania 52 75 166 38

Anoglia 293 267 158 131

Djibouti 92 964 102 81

Senegal 372 481 90 51


Tunisia 120 - 81 115


Canada 17 36 67 19



Country 2008 2009 2010 2011

Malaysia 0 69 63 32






Surinam 5 26 26 13

Liberia 16 24 24 16


Greece 17 - 21 -

Sri Lanka 34 26 21 15

Sweden - - 19 -

Gabon - - 17 38

Mali 37 26 16 -

India 100 - 15 9


Congo - 51 9 16

Guinea 23 39 9 18

Gambia 17 11 9 -

Namibia - - 9 -




Uganda - 1 7 -



Kenya - 7 2 1

Italy - 16 1 0

France - 0 1 -

Samoa - - 1 -


Cameron 70 35 1 10

Austria - - - -



Country 2008 2009 2010 2011

Bengladish - - - -

Benin 14 8 - -

Burundy - - - 8


Cyprus 1 - - -

Ethiopia 64 - - 38

Algeria - 127 - 167


Germany - 41 - -

Ghana 8 22 - 32

Hong Kong - 3 - -

Ireland - 2 - -

Japan - - - -

Madgascar 18 - - -

Maldives - - - -

Nigeria - - - -

PeopleS Republic Of

- - - -





Singapore 14 - - -

Spain - 11 - -

Togo 0 - - -

Turkey 488 - - -

Venzuela - 50 - -

Zambia 1 0 - -

Zembabwi 2 5 - -

Unknown - 91 232 308

TOTAL 100996 130322 166459 79759






bull Invoice








bull Packing list






bull Tariff Code









‒ Quantity




































Packing List




Product Labels



















bull Tariff Code

bull MSDS



Transfer of Title









2005 2006 2007 2008 2009 2010


USA 0 0 0 150 120 0

TOTAL 5942 0 4073 3532 3683 3725


USA



2005 2006 2007 2008 2009 2010

TOTAL 1507 0 1831 2089 2316 2745


USA



2005 2006 2007 2008 2009 2010

TOTAL 54721 0 55169 48353 55335 49771


USA


TOTAL 10267 0 9692 9034 8886 8834




2005 2006 2007 2008 2009 2010

USA

TOTAL 22756 0 28394 33842 28756 33688



2005 2006 2007 2008 2009 2010


USA

0

TOTAL 7533 0 6821 7742 11164 15436




Contents

Tables


11 Introduction



131 Key Points



141 Key Points




161 Key Points



171 Key Points


2 Egypt

21 Foreign Trade

211 Cheese

2111 Import Trends



2112 Supply Trends









212 SMP

2121 Import Trends


2122 Supply Trends






213 Whey

2131 Import Trends


2132 Supply Trends







214 Lactose

2141 Import Trends


2142 Supply Trends








Pizza






Bakery Cafeacute








2311 Innovation





2322 SMP

2323 Whey Powder

2324 Cheese


2331 Liquid milk


2332 Yogurt



2333 Cheese





2335 Chocolate



2336 Gum

Sector Trends



2337 Candy



2338 Biscuits




2339 Cakes






2341 Tariffs



3 Saudi Arabia

31 Foreign Trade

311 Cheese

3111 Import Trends


3112 Supply Trends







312 SMP

3121 Trade Trends


3122 Supply Trends




313 Whey

3131 Trade Trends


3132 Supply Trends






314 Lactose

3141 Supply Trends












3311 Innovation





3322 SMP


3324 Cheese


341 Liquid Milk

3411 Sector Trends



342 Laban

3421 Sector Trends



343 Yogurt

3431 Sector Trends




3451 Sector Trends



346 Cheese

3461 Sector Trends




3471 Sector Trends




348 Chocolate

3481 Sector Trends


349 Ice Cream

3491 Sector Trends




34101 Sector Trends



34111 Sector Trends





Hi-Pro Food























Contents






















































Tables











11 Introduction


1 Egypt


















131 Key Points







Local













Conclusions







Recommendations








141 Key Points










Conclusions












Recommendations


















161 Key Points










Local








Conclusions




Recommendations











171 Key Points






Conclusions















Recommendations









2 Egypt

21 Foreign Trade

211 Cheese

2111 Import Trends



2008 20134 93010 72876

2009 20203 140372 120169

2010 27460 169391 141931




















0406909010 Turkey cheese 27 13 34

0406909090 Cheese other 3631 3658 2585

Total 18371 20130 27458






2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 7002 6708 8968 11999 10044 6741

US 381 1463 4026 1268 8251 6119

New Zealand 10956 9720 6094 13227 5725 811

Australia 2860 1999 1738 2428 1611 1298



EU27 33 34 43 41 39 45

US 2 7 19 4 32 41

New Zealand 52 49 29 46 22 5

Australia 13 10 8 8 6 9



Cheese -




Blue vein 040640xxxx 253 580 421 680 628 470



Of which

Cheddar cheese 04069021 1060 364 2973 4741 1819 1434

Edam cheese 04069023 3258 3871 2643 3384 3846 2503




Gouda cheese 04069078 1115 1099 1063 1369 1214 729

Total 7002 6708 8968 11999 10044 6741



Netherlands 38 5161

Ireland 1 1623


Italy 15 2 7 103

France 2 5 90

Germany 131 114 4 74

Poland 1579 50

Denmark 13 211 507 23

Austria 23 22

Greece 1 11

Greece 1 11


Cyprus

Bulgaria 2

Belgium 8

Total 162 218 629 1646 7383





Fresh cheese 0406100000 96 21 555 118 621 994

Cheddar 195 1048 2388 815 5651 3763


Cheese all kinds 0406200000 2 19 253 19 212 61

Cheese inc mixed 0406909550 57 374 440 26 15 365

Colby 0406906500 0 0 1 0 6 5






Cheddar 0406900011 10956 9720 6094 12504 4476 399


Total 10956 9720 6094 13227 5725 811

Source USDA








Cheddar 04069010 2576 1531 1606 2094 1180 1039















0406909090 Cheese other 2585 2873

Total 27458 30516




212 SMP

2121 Import Trends


2008 2009 2010 2011 (Jan-Jul)

USA 13350 5348 15033 7604

Germany 2760 3388 7225 5418

France 297 1218 3444 2482

Sweden 993 3233 3223 2381

Switzerland 2042 1570 3074 582

Finland 530 1539 1841 862

Belgium 206 848 1680 488

New Zealand 1143 1858 1296 415

Poland 707 385 1267 652


Ireland - 102 804 71

Canada 2219 1959 791 279

Ukraine 4378 1346 686 1372

India 5153 76 543 -

Singapore - 200 512 534

Australia 644 524 475 101

Denmark 39 377 368 591

ECC 479 429 240 -





2122 Supply Trends


2006 2007 2008 2009 2010 Jan-Aug 2011


EU27 6768 4720 6157 27688 20622 20453

US 15409 8460 15775 8019 17278 9955

New Zealand 1254 860 1405 4337 1465 1498

Australia 408 311 895 1227 438 126



EU27 28 33 25 67 52 64

US 65 59 65 19 43 31




2007 2008 2009 2010

Mt 1836 4249 1956 1050






Mt 2009 2010

Germany 6891 7385

Belgium 5355 4062

Sweden 6831 3751

Finland 3700 1650

France 2257 1048

Ireland 416 917

Poland 935 650

Denmark 640 430

UK - 300

Lithuania - 224

Netherlands 664 121

Spain - 59

Total 27689 20597







1 White cheese 60 27000 32850 2


3 Yogurt 7 3150 5073 4

4 UHT milk 7 3150 4020 2




2131 Import Trends






3502200000 Milk albumens 46 474 266

Total 15135 9565 25445







Jan-Aug 2011




2011




350220xxxx 20 11 101 - 104 17

6329 8603 7016 9312 10677 1178

USA Whey powder 0404104000 1377 935 663 - 741 100


WPC34 0404100500 7 175 50 19 - 292



350220xxxx - - - - 5 5

2439 2351 1017 424 2520 2023

New Zealand





2011



350220xxxx - - - - - -

2527 3660 4053 3898 2517 1740




350220xxxx - - 102 106 - -

16 140 166 242 94 -



2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 6329 8603 7016 9312 10677 1178

US 2439 2351 1017 424 2520 2023

New Zealand 2527 3660 4053 3898 2517 1740

Australia 16 140 166 242 94 -



EU27 56 58 57 67 68 24

US 22 16 8 3 16 41

New Zealand 22 25 33 28 16 35






2007 2008 2009 2010

Mt 800 150 150 691





CAGR



2141 Import Trends



Germany 863 772 1159 264

Netherlands 191 567 1117 733

China 316 222 624 300

USA 49 110 447 294


Italy 59 167 204 120




UK 9 320 124 EEC 20 123 Canada 19 28 71 101

France 145 45 42 43






Lactose lt99 170219xxxx 39 56 29 322 98 39

736 813 892 1309 1609 1161


Lactose lt99 170219xxxx 246 16300 8250 - 60 60

246 170 106 262 669 271


Lactose lt99 170219xxxx - 200 - 3 - -

201 612 168 358 213 76







Lactose 1702xx 4169 4633 2














Males Females

KSA 640 700

Lebanon 600 530

Iran 570 677

Bahrain 564 790

Jordan 460 437

Egypt 438 410

Libya 425 749

Oman 405 435

UAE 255 399



bull Pizza




Offer Type


Local Pizza Chains







Offer Type


Local Pizza Chains




Pizza Y Y Y Y



Fast Food - - Y Y

Others Y Y

Example


Thomas Tabasco



Majesty Dawwar





60







14


Little Caesars


6










Sbarro wwwsbarrocom



1






28




25


Panda

15


12

Super Queen

9

Le Tabasco La Plage

7






4


Pizza Master

4




Name Logo No

Outlets Comment

Egyptian




21 -

International -







4 -




Name Logo No

Outlets Comment

Egyptian



International


3 -







Fuddruckers


(Naghi Group)


















Kasr El Elysee - 6

El Domiaty - 6

Les Dames - 6








Egyptian

Cilantro





Beanorsquos


Trianon


Makani




Grand Cafe


International

Costa Coffee




Starbucks


















bull Smoked salmon











bull Cold Stores























































bull Cheddar










2311 Innovation





































Foodservice















KSA- 2 restaurants










































2331 Liquid milk


Mt 2008 2009 Jan-Jun 2010

Plain milk 78433 72547 55041




















Juhayna 36 57

Danone 34


Lactalis 9

Beyti 5

Enjoy 2

Labanita 2 2

0

10

20

30

40

50

60

70

80

90

0

1000

2000

3000

4000

5000

6000

7000

8000

Valu

e

Volu

me




Other neg





bull White cheese








Source AC Nielsen




Others 39

Americana 27

Arab Dairy Co 12

Domty 10

Misr October 7

Juhayna 5







Source AC Nielsen

Best Cheese - 48

Bel - 16

Arab Dairy - 10

Mashreq - 4

Other - 22







bull Fresh cheese



























2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mt 41184 48730 51630 59386 42326 49380 46179 56365 39702

US$ mn 1168 1022 1136 1567 1224 1521 1615 2145 1598









41184

48730 51630

59386

42326

49380 46179

56365

39702

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10




Sector Trends


2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mn packs 4554 5576 6556 7017 6849 7788 6971 7614 3731

US$ mn 408 349 372 358 444 552 537 623 392

Source AC Nielsen






2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mn packs 4467 4672 5107 5749 5528 5984 5480 6757 4013

US$ mn 506 396 410 510 490 593 684 796 509

Source AC Nielsen

4554

5576

6556 7017 6849

7788 6971

7614

3731

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10






2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mt 48409 59750 58587 55548 45454 67522 71372 74683 54134

US$ mn 899 846 808 875 738 1177 1697 1922 1360

Source AC Nielsen

4467 4672 5107

5749 5528 5984

5480

6757

4013

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10







48409

59750 58587 55548

45454

67522 71372 74683

54134

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10

Bisco Misr 169

Kraft Foods 151

Biscato 79

Shamedan 7

Ocean Foods 45

Others 486


Kraft Foods 149

Biscato 52

Shamedan 78 Ocean

Foods 37

Others 507

Volume





2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mt 13063 16814 17222 14673 25507 38046 44080 46362 33272

US$

348 337 325 326 543 865 1099 1166 868

Source AC Nielsen






Others 7

KraftCadbury 2

Monginis 6

Shamedan 10

River Foods 13

Edita 62

13063 16814 17222

14673

25507

38046

44080 46362

33272

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10





2341 Tariffs










bull Lactose
























bull SMP 3500 mtyr














3 Saudi Arabia

31 Foreign Trade

311 Cheese

3111 Import Trends


2005 2006 2007 2008 2009 2010 CAGR





HSH 40690200 22756 - 28394 33842 28756 33688 8

Other cheese 4069090 7533 - 6821 7742 11164 15436 15

TOTAL 102726 - 105980 104592 110140 114199 2









2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 25952 23614 16855 18773 18936 12809

New Zealand 11417 13062 10018 12913 9155 5734

US 1472 2096 6075 2288 6987 8539

Australia 21021 18880 9750 4706 7182 4318



EU27 43 41 39 49 45 41

New Zealand 19 23 23 33 22 18

US 2 4 14 6 17 27

Australia 35 33 23 12 17 14






2005 2006 2007 2008 2009 2010

Egypt




HSH Cheese 04069020 5628 0 5104 5010 5880 7495

Other Cheese 4069090 0 0 834 488 1117 1817

Total 15295 0 22058 26429 27059 24954

Bahrain



HSH Cheese 04069020 0 0 0 58 87 0

Other Cheese 4069090 0 0 0 0 0 279

Total 0 0 0 6222 13310 13700



Cheese -




Blue vein 040640xxxx 11 18 5 62 35 26


Of which

Cheddar cheese 04069021 1167 359 617 1318 1435 1235

Edam cheese 04069023 665 249 266 452 644 498

Gouda cheese 04069078 274 217 201 178 244 243




Kashkaval 04069029 32 10 46 4 196 857

Sheepbuffalo 04069050 13 65 253 380 442 320



Total 25952 23614 16855 18773 18936 12809


2006 2007 2008 2009 2010 Jan - Oct 2011

0406901000 - Cheese Cheddar 904 1134 7482 1837 27172 37230

0406200000 - Cheese All Kinds 5965 10199 5970 11151 11596 21765

0406909550 - Cheese Inc Mixt 5555 8036 35498 6602 12810 8426


0406100000 - Fresh Cheese 00 854 3541 2522 9852 8029

0406400000 - Cheese Blue-Vein 00 00 723 16 00 00

0406906500 - Cheese Colby 00 00 00 00 00 433

Total 14715 20964 60753 22882 69868 85388











HSH 40690200 33688 45082 6

Other cheese 4069090 15436 20657 6

TOTAL 114199 136506 36


3121 Trade Trends


2005 2006 2007 2008 2009 2010

New Zealand 31897 0 34709 38854 36113 18470

Australia 4892 0 11465 9443 14063 10682

Belgium 0 0 1036 1064 0 1175

Holland 2958 0 1494 3635 2010 811

France 347 0 423 170 839 760

Germany 1024 0 420 498 165 640

India 603 0 215 1846 0 464

Ireland 566 0 155 192 0 446

Poland 536 0 297 0 237 399

Latvia 0 0 0 0 170 150

Argentina 267 0 199 0 106 127



2005 2006 2007 2008 2009 2010


Finland 875 0 0 0 125 115

Uruguay 0 0 125 76 0 100

Singapore 0 0 0 0 0 100

Malaysia 436 0 0 0 0 0

US 899 0 654 533 0 0

Canada 22 0 0 0 0 0

Denmark 440 0 258 96 0 0

UK 200 0 167 0 0 0


Brazil 0 0 81 0 0 0

Ukraine 0 0 1448 0 0 0

Oman 0 0 0 53 0 0

Other 383 0 329 0 214 174

Total 47103 0 53475 57185 54042 34736



3122 Supply Trends


2006 2007 2008 2009 2010

Jan-Aug 2011


New Zealand 19240 23169 22137 17472 19406 21578

EU27 2344 3699 3869 5234 10117 10326

Australia 6291 7025 6740 6351 6617 4904

US 1753 788 809 - 271 68






EU27 8 11 12 18 28 28

US 6 2 2 - 1 0

Australia 21 20 20 22 18 13





1 White Cheese 51 19000 24249 5


3 Yogurtlaban 11 3975 5073 3


5 Ice cream 4 1500 1914 5


6 Other 4 1500 2007 6


3131 Trade Trends




2010 2009 2008 2007 Country

501 582 294 439 France


400 0 322 414 Germany

375 506 656 696 Poland

362 0 0 445 Turkey

343 456 152 0 Australia

341 0 0 0 Ukraine

0 0 113 113 India

0 0 221 290 Holland


0 0 250 0 Finland



2904 2602 2551 3065 Total

2894 1488 1346 1241 Kuwait

Other Whey 04049000

836 2118 2146 1697 New Zealand

531 257 0 112 France

0 300 200 200 Australia

0 0 502 626 Finland

0 0 0 183 UK

0 0 0 200 Poland


0 163 0 0 Canada

0 59 0 0 Denmark








Total whey products


6193 6552 6102 5874 6143 5182



2011

EU27

Whey powder 040410xxxx 2857 3315 2666 2302 2715 2211



3445 3841 2925 2653 2965 2890

USA

Whey powder 0404104000 406 172 372 128 140 73


WPC34 0404100500 - - 47 - 20 -



406 178 453 157 200 107

New Zealand

Whey powder 040410xxxx - 201 - - - -



2043 2383 2383 2421 2827 2180

Australia




2011

Whey powder 040410xxxx 299 150 341 643 151 5



299 150 341 643 151 5


2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 3445 3841 2925 2653 2965 2890

New Zealand 2043 2383 2383 2421 2827 2180

US 406 178 453 157 200 107

Australia 299 150 341 643 151 5



EU27 56 59 48 45 48 56

New Zealand 33 36 39 41 46 42

US 7 3 7 3 3 2










3141 Supply Trends




Lactose lt99 170219xxxx 1 6 4 - 17 85

219 175 77 374 423 351


Lactose lt99 170219xxxx 52 46 9 91 1241 859

113 46 9 93 1241 859


Lactose lt99 170219xxxx - - - - - -

- 34 - - - -





2006 2007 2008 2009 2010

Jan-Aug 2011


US 113 46 9 93 1241 859

EU27 219 175 77 374 423 351




US 34 18 10 20 75 71

EU27 66 69 90 80 25 29























Locally Owned






bull Burger Fuel

bull Costa Coffee


bull El Chico

bull Fuddruckers




bull Paul

bull Port City Java



bull Starbucks

bull Taco bell







Burgers


Herfy 186


PizzaItalian






Baak 7


Casual dining

Kudu 147


TGIF Americana
















































bull Chains 1989 - 8 1994 - 9 1999 - 12 2004- 16 2009 - 19










































bull Al Safi Dairy

bull Al Safi Danone

















3311 Innovation



























Foodservice












































3322 SMP



























341 Liquid Milk

3411 Sector Trends


2006 2007 2008 2009 2010 CAGR ()

Mt 496000 576800 595400 652200 692760 87



‒ Almarai 60


‒ Nadec 9

‒ Nada 7

‒ Najdyah 3


bull UHT milk




‒ Al Safi 14

‒ Nadec 3

‒ Nada 3

‒ Luna (NFIC) 2







‒ Luna (NFIC) 3

‒ Al Rabie 2



3421 Sector Trends


2006 2007 2008 2009 2010 CAGR ()

Mt 397200 403000 413200 423000 431700 21


bull Almarai 46

bull Nadec 13

bull Najdyah 4

bull Nada 4



3431 Sector Trends





2006 2007 2008 2009 2010 CAGR ()

Mt 116350 122570 127150 133100 139410 46


bull Almarai

bull Al Safi Danone

bull Nadec



3451 Sector Trends


Mt 2006 2007 2008 2009 2010 CAGR ()

Evaporated 75500 71950 71100 74650 75400 00

Condensed 4500 5050 5400 5850 6300 88





‒ Luna (NFIC) 31




‒ Almarai 6

bull Condensed milk

‒ Luna (NFIC)







346 Cheese

3461 Sector Trends


2006 2007 2008 2009 2010 CAGR ()

Mt 121960 133520 133700 140100 145600 45












bull Lactic butter





bull Edam 350 mtyr

bull Gouda






bull SMP













3471 Sector Trends


2009 2010 2011 2012 2013 2014 2015 2016

Sales (SAR mn) 2100 2310 2541 2795 3075 3382 3720 4092




Mt 2012 2013 2014 2015 2016

WPC35 15 112 197 301 413

Lactose 62 476 840 1284 1764




348 Chocolate

3481 Sector Trends
















bull Mars ndash 47













‒ DWP40 minor use












349 Ice Cream

3491 Sector Trends












34101 Sector Trends




22

20

16 9

7

6

30



Batterjee (Jumbo)

Other





































‒ SMP 5 mtmonth

‒ WMP 10 mtmonth


‒ Skim milk




‒ Dammam




bull WMP



bull Feta


‒ Jeddah



bull WMP 12 mt




‒ WMP 40 mtmonth





34111 Sector Trends

































bull Cheese powder





bull SWP

bull DWP40-50

bull Whey permeate













































































4330 567 10000 2916 3063 4021 10000 2916 3063 4021 10000

Sugar 3972 171982 3980 121909 3980 121907

Icing sugar 3980 225666 2679 107728 2768 111305


SMP 374 896 67009 375 2876 127109 375 2155 98129

Whey Powder 00000

Lactose 623 25053 1460 58703

Lecithin 067 050 05730 067 048 03972 067 050 04037

Water 380 16454 380 11640 380 11639


Wheatflour 4696 203353 4706 144137 4706 144136

G P Fat ( soft ) 397 17198 398 12191 398 12191

Cocoapowder alk 062 995 59095 062 454 20173 062 01905

Salt 033 01426 033 00999 033 00999


Lauric Fat Hard

Lauric Fat (Soft) 3315 133272 3563 143248

Chocolate 896 50803 10000 291623 10000 291600


AMF (Bulk) 149 08448

Wafer

Hazelnut Fines






10000 10000 1000000 10000 10000 10000 1000000 10000 10000 10000 1000000






Sugar 4393 4722 485 504 524 480

AS Butter 973 000 00 94 00 990

A Butter 152 000 75 28 00 140

CBE 454 000 50 53 00 00

CBR 000 2692 00 00 00 00


000 000 32 30 00 00


000 000 00 00 00 450


000 000 00 00 00 00

Toffee Fat 000 000 00 00 278





Cocoa powder 000 698 00 00 50 00

FCMP - spray 2861 1829 98 139 00 95

FCMP - roller 000 000 00 00 00 00


SMP 000 000 00 00 00 00

Whey powder 000 000 110 50 140 106

Lactose 000 000 00 00 00 00

Lecithin 054 040 05 06 00 07

PGPR 013 000 02 00 07 01

C Essence C101 001 000 00 00 00 00

C Essence C201 001 000 00 00 00 00

CDM Oils 000 00 00 00 00


D Essence (blend) 000 000 00 00 00 00

Vanilin 000 011 00 00 00 00

Famodan 007 00 00

Water 000 00 00 00 10




1000 1000 1000 1000 00 1000 1001

Source Cadbury





Moro Coffee

Moro Peanut




CBESS c101 Kg 003 003 003

CBESS c201 Kg 003 003 003

Cocoa Mass Kg 5923 5960 4002


CBR Kg 10371 10 8997

PGPR Kg 114 104 101



Coconut Kg 15766 15 17039


Gelatin 220 Bloom Kg 055 0 060 029 030 029

FCMP Kg 7493 7 6500 17549 17675 15678

Cetodan Kg


Glucose Syrup 77 Kg 27354 27 29560 32038 32356 29154


Sugar Kg 35702 35 34716 30965 31298 24881




Lecithin Kg 147 0 128 324 324 302

Vanillin Kg 044 0 038 028 028

Peanut Kg

Salt Kg 296 334 245






Moro Coffee

Moro Peanut






Source Cadbury



Sugar 1000196 443671 4437 448107


FCMP 1000180 272727 2727 275454



SN100 ( Lecithin ) 1000258 6525 0065 6590

PGPR 1000045 3915 0039 3954


TOTAL 1010101 16101 1026202





FAC per 100 CS - 2008












23300029 Sugar 33647 128915 KG

23300352 Glucose Syrpe ( 84 ) 70161 262777 KG


23300031 Vegetable Fat 39862 67563 KG


23300021 Toffan 1430 0695 KG

23300007 GMS 1954 1927 KG


FOH 26324 0600 HR

11385 0600 HR

101172 0600 HR

000 0600 HR

79196 0600 HR

66989 0600 HR

000 0600 HR

Total cost 8853050





Country 2008 2009 2010 2011

Saudi Arabia 23975 31275 37083 22172

Iraq 21945 25125 30401 16444

Libya 13288 16889 24117 5919

Yemen Republic 5561 9264 13280 7319

Kuwait 4281 4105 13240 3012

Jordan 6906 8032 9419 5125

Lebanon 6227 6171 7086 3757

Oman 4040 9902 6493 3080



Palestine 2730 3000 2851 1103

Israel 223 556 2452 718

Morocco 531 1181 2131 554

Haiti 937 1040 1758 1246

Qatar 850 1018 1712 861

USA 323 469 1068 624

Eritrea 575 808 813 631

Mauritius 249 512 461 348

Vietnam 106 1048 340 316

Bahrain 348 331 336 251


Albania 52 75 166 38

Anoglia 293 267 158 131

Djibouti 92 964 102 81

Senegal 372 481 90 51


Tunisia 120 - 81 115


Canada 17 36 67 19



Country 2008 2009 2010 2011

Malaysia 0 69 63 32






Surinam 5 26 26 13

Liberia 16 24 24 16


Greece 17 - 21 -

Sri Lanka 34 26 21 15

Sweden - - 19 -

Gabon - - 17 38

Mali 37 26 16 -

India 100 - 15 9


Congo - 51 9 16

Guinea 23 39 9 18

Gambia 17 11 9 -

Namibia - - 9 -




Uganda - 1 7 -



Kenya - 7 2 1

Italy - 16 1 0

France - 0 1 -

Samoa - - 1 -


Cameron 70 35 1 10

Austria - - - -



Country 2008 2009 2010 2011

Bengladish - - - -

Benin 14 8 - -

Burundy - - - 8


Cyprus 1 - - -

Ethiopia 64 - - 38

Algeria - 127 - 167


Germany - 41 - -

Ghana 8 22 - 32

Hong Kong - 3 - -

Ireland - 2 - -

Japan - - - -

Madgascar 18 - - -

Maldives - - - -

Nigeria - - - -

PeopleS Republic Of

- - - -





Singapore 14 - - -

Spain - 11 - -

Togo 0 - - -

Turkey 488 - - -

Venzuela - 50 - -

Zambia 1 0 - -

Zembabwi 2 5 - -

Unknown - 91 232 308

TOTAL 100996 130322 166459 79759






bull Invoice








bull Packing list






bull Tariff Code









‒ Quantity




































Packing List




Product Labels



















bull Tariff Code

bull MSDS



Transfer of Title









2005 2006 2007 2008 2009 2010


USA 0 0 0 150 120 0

TOTAL 5942 0 4073 3532 3683 3725


USA



2005 2006 2007 2008 2009 2010

TOTAL 1507 0 1831 2089 2316 2745


USA



2005 2006 2007 2008 2009 2010

TOTAL 54721 0 55169 48353 55335 49771


USA


TOTAL 10267 0 9692 9034 8886 8834




2005 2006 2007 2008 2009 2010

USA

TOTAL 22756 0 28394 33842 28756 33688



2005 2006 2007 2008 2009 2010


USA

0

TOTAL 7533 0 6821 7742 11164 15436




Contents

Tables


11 Introduction



131 Key Points



141 Key Points




161 Key Points



171 Key Points


2 Egypt

21 Foreign Trade

211 Cheese

2111 Import Trends



2112 Supply Trends









212 SMP

2121 Import Trends


2122 Supply Trends






213 Whey

2131 Import Trends


2132 Supply Trends







214 Lactose

2141 Import Trends


2142 Supply Trends








Pizza






Bakery Cafeacute








2311 Innovation





2322 SMP

2323 Whey Powder

2324 Cheese


2331 Liquid milk


2332 Yogurt



2333 Cheese





2335 Chocolate



2336 Gum

Sector Trends



2337 Candy



2338 Biscuits




2339 Cakes






2341 Tariffs



3 Saudi Arabia

31 Foreign Trade

311 Cheese

3111 Import Trends


3112 Supply Trends







312 SMP

3121 Trade Trends


3122 Supply Trends




313 Whey

3131 Trade Trends


3132 Supply Trends






314 Lactose

3141 Supply Trends












3311 Innovation





3322 SMP


3324 Cheese


341 Liquid Milk

3411 Sector Trends



342 Laban

3421 Sector Trends



343 Yogurt

3431 Sector Trends




3451 Sector Trends



346 Cheese

3461 Sector Trends




3471 Sector Trends




348 Chocolate

3481 Sector Trends


349 Ice Cream

3491 Sector Trends




34101 Sector Trends



34111 Sector Trends





Hi-Pro Food




















































Tables











11 Introduction


1 Egypt


















131 Key Points







Local













Conclusions







Recommendations








141 Key Points










Conclusions












Recommendations


















161 Key Points










Local








Conclusions




Recommendations











171 Key Points






Conclusions















Recommendations









2 Egypt

21 Foreign Trade

211 Cheese

2111 Import Trends



2008 20134 93010 72876

2009 20203 140372 120169

2010 27460 169391 141931




















0406909010 Turkey cheese 27 13 34

0406909090 Cheese other 3631 3658 2585

Total 18371 20130 27458






2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 7002 6708 8968 11999 10044 6741

US 381 1463 4026 1268 8251 6119

New Zealand 10956 9720 6094 13227 5725 811

Australia 2860 1999 1738 2428 1611 1298



EU27 33 34 43 41 39 45

US 2 7 19 4 32 41

New Zealand 52 49 29 46 22 5

Australia 13 10 8 8 6 9



Cheese -




Blue vein 040640xxxx 253 580 421 680 628 470



Of which

Cheddar cheese 04069021 1060 364 2973 4741 1819 1434

Edam cheese 04069023 3258 3871 2643 3384 3846 2503




Gouda cheese 04069078 1115 1099 1063 1369 1214 729

Total 7002 6708 8968 11999 10044 6741



Netherlands 38 5161

Ireland 1 1623


Italy 15 2 7 103

France 2 5 90

Germany 131 114 4 74

Poland 1579 50

Denmark 13 211 507 23

Austria 23 22

Greece 1 11

Greece 1 11


Cyprus

Bulgaria 2

Belgium 8

Total 162 218 629 1646 7383





Fresh cheese 0406100000 96 21 555 118 621 994

Cheddar 195 1048 2388 815 5651 3763


Cheese all kinds 0406200000 2 19 253 19 212 61

Cheese inc mixed 0406909550 57 374 440 26 15 365

Colby 0406906500 0 0 1 0 6 5






Cheddar 0406900011 10956 9720 6094 12504 4476 399


Total 10956 9720 6094 13227 5725 811

Source USDA








Cheddar 04069010 2576 1531 1606 2094 1180 1039















0406909090 Cheese other 2585 2873

Total 27458 30516




212 SMP

2121 Import Trends


2008 2009 2010 2011 (Jan-Jul)

USA 13350 5348 15033 7604

Germany 2760 3388 7225 5418

France 297 1218 3444 2482

Sweden 993 3233 3223 2381

Switzerland 2042 1570 3074 582

Finland 530 1539 1841 862

Belgium 206 848 1680 488

New Zealand 1143 1858 1296 415

Poland 707 385 1267 652


Ireland - 102 804 71

Canada 2219 1959 791 279

Ukraine 4378 1346 686 1372

India 5153 76 543 -

Singapore - 200 512 534

Australia 644 524 475 101

Denmark 39 377 368 591

ECC 479 429 240 -





2122 Supply Trends


2006 2007 2008 2009 2010 Jan-Aug 2011


EU27 6768 4720 6157 27688 20622 20453

US 15409 8460 15775 8019 17278 9955

New Zealand 1254 860 1405 4337 1465 1498

Australia 408 311 895 1227 438 126



EU27 28 33 25 67 52 64

US 65 59 65 19 43 31




2007 2008 2009 2010

Mt 1836 4249 1956 1050






Mt 2009 2010

Germany 6891 7385

Belgium 5355 4062

Sweden 6831 3751

Finland 3700 1650

France 2257 1048

Ireland 416 917

Poland 935 650

Denmark 640 430

UK - 300

Lithuania - 224

Netherlands 664 121

Spain - 59

Total 27689 20597







1 White cheese 60 27000 32850 2


3 Yogurt 7 3150 5073 4

4 UHT milk 7 3150 4020 2




2131 Import Trends






3502200000 Milk albumens 46 474 266

Total 15135 9565 25445







Jan-Aug 2011




2011




350220xxxx 20 11 101 - 104 17

6329 8603 7016 9312 10677 1178

USA Whey powder 0404104000 1377 935 663 - 741 100


WPC34 0404100500 7 175 50 19 - 292



350220xxxx - - - - 5 5

2439 2351 1017 424 2520 2023

New Zealand





2011



350220xxxx - - - - - -

2527 3660 4053 3898 2517 1740




350220xxxx - - 102 106 - -

16 140 166 242 94 -



2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 6329 8603 7016 9312 10677 1178

US 2439 2351 1017 424 2520 2023

New Zealand 2527 3660 4053 3898 2517 1740

Australia 16 140 166 242 94 -



EU27 56 58 57 67 68 24

US 22 16 8 3 16 41

New Zealand 22 25 33 28 16 35






2007 2008 2009 2010

Mt 800 150 150 691





CAGR



2141 Import Trends



Germany 863 772 1159 264

Netherlands 191 567 1117 733

China 316 222 624 300

USA 49 110 447 294


Italy 59 167 204 120




UK 9 320 124 EEC 20 123 Canada 19 28 71 101

France 145 45 42 43






Lactose lt99 170219xxxx 39 56 29 322 98 39

736 813 892 1309 1609 1161


Lactose lt99 170219xxxx 246 16300 8250 - 60 60

246 170 106 262 669 271


Lactose lt99 170219xxxx - 200 - 3 - -

201 612 168 358 213 76







Lactose 1702xx 4169 4633 2














Males Females

KSA 640 700

Lebanon 600 530

Iran 570 677

Bahrain 564 790

Jordan 460 437

Egypt 438 410

Libya 425 749

Oman 405 435

UAE 255 399



bull Pizza




Offer Type


Local Pizza Chains







Offer Type


Local Pizza Chains




Pizza Y Y Y Y



Fast Food - - Y Y

Others Y Y

Example


Thomas Tabasco



Majesty Dawwar





60







14


Little Caesars


6










Sbarro wwwsbarrocom



1






28




25


Panda

15


12

Super Queen

9

Le Tabasco La Plage

7






4


Pizza Master

4




Name Logo No

Outlets Comment

Egyptian




21 -

International -







4 -




Name Logo No

Outlets Comment

Egyptian



International


3 -







Fuddruckers


(Naghi Group)


















Kasr El Elysee - 6

El Domiaty - 6

Les Dames - 6








Egyptian

Cilantro





Beanorsquos


Trianon


Makani




Grand Cafe


International

Costa Coffee




Starbucks


















bull Smoked salmon











bull Cold Stores























































bull Cheddar










2311 Innovation





































Foodservice















KSA- 2 restaurants










































2331 Liquid milk


Mt 2008 2009 Jan-Jun 2010

Plain milk 78433 72547 55041




















Juhayna 36 57

Danone 34


Lactalis 9

Beyti 5

Enjoy 2

Labanita 2 2

0

10

20

30

40

50

60

70

80

90

0

1000

2000

3000

4000

5000

6000

7000

8000

Valu

e

Volu

me




Other neg





bull White cheese








Source AC Nielsen




Others 39

Americana 27

Arab Dairy Co 12

Domty 10

Misr October 7

Juhayna 5







Source AC Nielsen

Best Cheese - 48

Bel - 16

Arab Dairy - 10

Mashreq - 4

Other - 22







bull Fresh cheese



























2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mt 41184 48730 51630 59386 42326 49380 46179 56365 39702

US$ mn 1168 1022 1136 1567 1224 1521 1615 2145 1598









41184

48730 51630

59386

42326

49380 46179

56365

39702

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10




Sector Trends


2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mn packs 4554 5576 6556 7017 6849 7788 6971 7614 3731

US$ mn 408 349 372 358 444 552 537 623 392

Source AC Nielsen






2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mn packs 4467 4672 5107 5749 5528 5984 5480 6757 4013

US$ mn 506 396 410 510 490 593 684 796 509

Source AC Nielsen

4554

5576

6556 7017 6849

7788 6971

7614

3731

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10






2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mt 48409 59750 58587 55548 45454 67522 71372 74683 54134

US$ mn 899 846 808 875 738 1177 1697 1922 1360

Source AC Nielsen

4467 4672 5107

5749 5528 5984

5480

6757

4013

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10







48409

59750 58587 55548

45454

67522 71372 74683

54134

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10

Bisco Misr 169

Kraft Foods 151

Biscato 79

Shamedan 7

Ocean Foods 45

Others 486


Kraft Foods 149

Biscato 52

Shamedan 78 Ocean

Foods 37

Others 507

Volume





2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun

2010

Mt 13063 16814 17222 14673 25507 38046 44080 46362 33272

US$

348 337 325 326 543 865 1099 1166 868

Source AC Nielsen






Others 7

KraftCadbury 2

Monginis 6

Shamedan 10

River Foods 13

Edita 62

13063 16814 17222

14673

25507

38046

44080 46362

33272

2002 2003 2004 2005 2006 2007 2008 2009 Jan-Jun 10





2341 Tariffs










bull Lactose
























bull SMP 3500 mtyr














3 Saudi Arabia

31 Foreign Trade

311 Cheese

3111 Import Trends


2005 2006 2007 2008 2009 2010 CAGR





HSH 40690200 22756 - 28394 33842 28756 33688 8

Other cheese 4069090 7533 - 6821 7742 11164 15436 15

TOTAL 102726 - 105980 104592 110140 114199 2









2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 25952 23614 16855 18773 18936 12809

New Zealand 11417 13062 10018 12913 9155 5734

US 1472 2096 6075 2288 6987 8539

Australia 21021 18880 9750 4706 7182 4318



EU27 43 41 39 49 45 41

New Zealand 19 23 23 33 22 18

US 2 4 14 6 17 27

Australia 35 33 23 12 17 14






2005 2006 2007 2008 2009 2010

Egypt




HSH Cheese 04069020 5628 0 5104 5010 5880 7495

Other Cheese 4069090 0 0 834 488 1117 1817

Total 15295 0 22058 26429 27059 24954

Bahrain



HSH Cheese 04069020 0 0 0 58 87 0

Other Cheese 4069090 0 0 0 0 0 279

Total 0 0 0 6222 13310 13700



Cheese -




Blue vein 040640xxxx 11 18 5 62 35 26


Of which

Cheddar cheese 04069021 1167 359 617 1318 1435 1235

Edam cheese 04069023 665 249 266 452 644 498

Gouda cheese 04069078 274 217 201 178 244 243




Kashkaval 04069029 32 10 46 4 196 857

Sheepbuffalo 04069050 13 65 253 380 442 320



Total 25952 23614 16855 18773 18936 12809


2006 2007 2008 2009 2010 Jan - Oct 2011

0406901000 - Cheese Cheddar 904 1134 7482 1837 27172 37230

0406200000 - Cheese All Kinds 5965 10199 5970 11151 11596 21765

0406909550 - Cheese Inc Mixt 5555 8036 35498 6602 12810 8426


0406100000 - Fresh Cheese 00 854 3541 2522 9852 8029

0406400000 - Cheese Blue-Vein 00 00 723 16 00 00

0406906500 - Cheese Colby 00 00 00 00 00 433

Total 14715 20964 60753 22882 69868 85388











HSH 40690200 33688 45082 6

Other cheese 4069090 15436 20657 6

TOTAL 114199 136506 36


3121 Trade Trends


2005 2006 2007 2008 2009 2010

New Zealand 31897 0 34709 38854 36113 18470

Australia 4892 0 11465 9443 14063 10682

Belgium 0 0 1036 1064 0 1175

Holland 2958 0 1494 3635 2010 811

France 347 0 423 170 839 760

Germany 1024 0 420 498 165 640

India 603 0 215 1846 0 464

Ireland 566 0 155 192 0 446

Poland 536 0 297 0 237 399

Latvia 0 0 0 0 170 150

Argentina 267 0 199 0 106 127



2005 2006 2007 2008 2009 2010


Finland 875 0 0 0 125 115

Uruguay 0 0 125 76 0 100

Singapore 0 0 0 0 0 100

Malaysia 436 0 0 0 0 0

US 899 0 654 533 0 0

Canada 22 0 0 0 0 0

Denmark 440 0 258 96 0 0

UK 200 0 167 0 0 0


Brazil 0 0 81 0 0 0

Ukraine 0 0 1448 0 0 0

Oman 0 0 0 53 0 0

Other 383 0 329 0 214 174

Total 47103 0 53475 57185 54042 34736



3122 Supply Trends


2006 2007 2008 2009 2010

Jan-Aug 2011


New Zealand 19240 23169 22137 17472 19406 21578

EU27 2344 3699 3869 5234 10117 10326

Australia 6291 7025 6740 6351 6617 4904

US 1753 788 809 - 271 68






EU27 8 11 12 18 28 28

US 6 2 2 - 1 0

Australia 21 20 20 22 18 13





1 White Cheese 51 19000 24249 5


3 Yogurtlaban 11 3975 5073 3


5 Ice cream 4 1500 1914 5


6 Other 4 1500 2007 6


3131 Trade Trends




2010 2009 2008 2007 Country

501 582 294 439 France


400 0 322 414 Germany

375 506 656 696 Poland

362 0 0 445 Turkey

343 456 152 0 Australia

341 0 0 0 Ukraine

0 0 113 113 India

0 0 221 290 Holland


0 0 250 0 Finland



2904 2602 2551 3065 Total

2894 1488 1346 1241 Kuwait

Other Whey 04049000

836 2118 2146 1697 New Zealand

531 257 0 112 France

0 300 200 200 Australia

0 0 502 626 Finland

0 0 0 183 UK

0 0 0 200 Poland


0 163 0 0 Canada

0 59 0 0 Denmark








Total whey products


6193 6552 6102 5874 6143 5182



2011

EU27

Whey powder 040410xxxx 2857 3315 2666 2302 2715 2211



3445 3841 2925 2653 2965 2890

USA

Whey powder 0404104000 406 172 372 128 140 73


WPC34 0404100500 - - 47 - 20 -



406 178 453 157 200 107

New Zealand

Whey powder 040410xxxx - 201 - - - -



2043 2383 2383 2421 2827 2180

Australia




2011

Whey powder 040410xxxx 299 150 341 643 151 5



299 150 341 643 151 5


2006 2007 2008 2009 2010

Jan-Aug 2011


EU27 3445 3841 2925 2653 2965 2890

New Zealand 2043 2383 2383 2421 2827 2180

US 406 178 453 157 200 107

Australia 299 150 341 643 151 5



EU27 56 59 48 45 48 56

New Zealand 33 36 39 41 46 42

US 7 3 7 3 3 2










3141 Supply Trends




Lactose lt99 170219xxxx 1 6 4 - 17 85

219 175 77 374 423 351


Lactose lt99 170219xxxx 52 46 9 91 1241 859

113 46 9 93 1241 859


Lactose lt99 170219xxxx - - - - - -

- 34 - - - -





2006 2007 2008 2009 2010

Jan-Aug 2011


US 113 46 9 93 1241 859

EU27 219 175 77 374 423 351




US 34 18 10 20 75 71

EU27 66 69 90 80 25 29























Locally Owned






bull Burger Fuel

bull Costa Coffee


bull El Chico

bull Fuddruckers




bull Paul

bull Port City Java



bull Starbucks

bull Taco bell







Burgers


Herfy 186


PizzaItalian






Baak 7


Casual dining

Kudu 147


TGIF Americana
















































bull Chains 1989 - 8 1994 - 9 1999 - 12 2004- 16 2009 - 19










































bull Al Safi Dairy

bull Al Safi Danone

















3311 Innovation



























Foodservice












































3322 SMP



























341 Liquid Milk

3411 Sector Trends


2006 2007 2008 2009 2010 CAGR ()

Mt 496000 576800 595400 652200 692760 87



‒ Almarai 60


‒ Nadec 9

‒ Nada 7

‒ Najdyah 3


bull UHT milk




‒ Al Safi 14

‒ Nadec 3

‒ Nada 3

‒ Luna (NFIC) 2







‒ Luna (NFIC) 3

‒ Al Rabie 2



3421 Sector Trends


2006 2007 2008 2009 2010 CAGR ()

Mt 397200 403000 413200 423000 431700 21


bull Almarai 46

bull Nadec 13

bull Najdyah 4

bull Nada 4



3431 Sector Trends





2006 2007 2008 2009 2010 CAGR ()

Mt 116350 122570 127150 133100 139410 46


bull Almarai

bull Al Safi Danone

bull Nadec



3451 Sector Trends


Mt 2006 2007 2008 2009 2010 CAGR ()

Evaporated 75500 71950 71100 74650 75400 00

Condensed 4500 5050 5400 5850 6300 88





‒ Luna (NFIC) 31




‒ Almarai 6

bull Condensed milk

‒ Luna (NFIC)







346 Cheese

3461 Sector Trends


2006 2007 2008 2009 2010 CAGR ()

Mt 121960 133520 133700 140100 145600 45












bull Lactic butter





bull Edam 350 mtyr

bull Gouda






bull SMP













3471 Sector Trends


2009 2010 2011 2012 2013 2014 2015 2016

Sales (SAR mn) 2100 2310 2541 2795 3075 3382 3720 4092




Mt 2012 2013 2014 2015 2016

WPC35 15 112 197 301 413

Lactose 62 476 840 1284 1764




348 Chocolate

3481 Sector Trends
















bull Mars ndash 47













‒ DWP40 minor use












349 Ice Cream

3491 Sector Trends












34101 Sector Trends




22

20

16 9

7

6

30



Batterjee (Jumbo)

Other





































‒ SMP 5 mtmonth

‒ WMP 10 mtmonth


‒ Skim milk




‒ Dammam




bull WMP



bull Feta


‒ Jeddah



bull WMP 12 mt




‒ WMP 40 mtmonth





34111 Sector Trends

































bull Cheese powder





bull SWP

bull DWP40-50

bull Whey permeate













































































4330 567 10000 2916 3063 4021 10000 2916 3063 4021 10000

Sugar 3972 171982 3980 121909 3980 121907

Icing sugar 3980 225666 2679 107728 2768 111305


SMP 374 896 67009 375 2876 127109 375 2155 98129

Whey Powder 00000

Lactose 623 25053 1460 58703

Lecithin 067 050 05730 067 048 03972 067 050 04037

Water 380 16454 380 11640 380 11639


Wheatflour 4696 203353 4706 144137 4706 144136

G P Fat ( soft ) 397 17198 398 12191 398 12191

Cocoapowder alk 062 995 59095 062 454 20173 062 01905

Salt 033 01426 033 00999 033 00999


Lauric Fat Hard

Lauric Fat (Soft) 3315 133272 3563 143248

Chocolate 896 50803 10000 291623 10000 291600


AMF (Bulk) 149 08448

Wafer

Hazelnut Fines






10000 10000 1000000 10000 10000 10000 1000000 10000 10000 10000 1000000






Sugar 4393 4722 485 504 524 480

AS Butter 973 000 00 94 00 990

A Butter 152 000 75 28 00 140

CBE 454 000 50 53 00 00

CBR 000 2692 00 00 00 00


000 000 32 30 00 00


000 000 00 00 00 450


000 000 00 00 00 00

Toffee Fat 000 000 00 00 278





Cocoa powder 000 698 00 00 50 00

FCMP - spray 2861 1829 98 139 00 95

FCMP - roller 000 000 00 00 00 00


SMP 000 000 00 00 00 00

Whey powder 000 000 110 50 140 106

Lactose 000 000 00 00 00 00

Lecithin 054 040 05 06 00 07

PGPR 013 000 02 00 07 01

C Essence C101 001 000 00 00 00 00

C Essence C201 001 000 00 00 00 00

CDM Oils 000 00 00 00 00


D Essence (blend) 000 000 00 00 00 00

Vanilin 000 011 00 00 00 00

Famodan 007 00 00

Water 000 00 00 00 10




1000 1000 1000 1000 00 1000 1001

Source Cadbury





Moro Coffee

Moro Peanut




CBESS c101 Kg 003 003 003

CBESS c201 Kg 003 003 003

Cocoa Mass Kg 5923 5960 4002


CBR Kg 10371 10 8997

PGPR Kg 114 104 101



Coconut Kg 15766 15 17039


Gelatin 220 Bloom Kg 055 0 060 029 030 029

FCMP Kg 7493 7 6500 17549 17675 15678

Cetodan Kg


Glucose Syrup 77 Kg 27354 27 29560 32038 32356 29154


Sugar Kg 35702 35 34716 30965 31298 24881




Lecithin Kg 147 0 128 324 324 302

Vanillin Kg 044 0 038 028 028

Peanut Kg

Salt Kg 296 334 245






Moro Coffee

Moro Peanut






Source Cadbury



Sugar 1000196 443671 4437 448107


FCMP 1000180 272727 2727 275454



SN100 ( Lecithin ) 1000258 6525 0065 6590

PGPR 1000045 3915 0039 3954


TOTAL 1010101 16101 1026202





FAC per 100 CS - 2008












23300029 Sugar 33647 128915 KG

23300352 Glucose Syrpe ( 84 ) 70161 262777 KG


23300031 Vegetable Fat 39862 67563 KG


23300021 Toffan 1430 0695 KG

23300007 GMS 1954 1927 KG


FOH 26324 0600 HR

11385 0600 HR

101172 0600 HR

000 0600 HR

79196 0600 HR

66989 0600 HR

000 0600 HR

Total cost 8853050





Country 2008 2009 2010 2011

Saudi Arabia 23975 31275 37083 22172

Iraq 21945 25125 30401 16444

Libya 13288 16889 24117 5919

Yemen Republic 5561 9264 13280 7319

Kuwait 4281 4105 13240 3012

Jordan 6906 8032 9419 5125

Lebanon 6227 6171 7086 3757

Oman 4040 9902 6493 3080



Palestine 2730 3000 2851 1103

Israel 223 556 2452 718

Morocco 531 1181 2131 554

Haiti 937 1040 1758 1246

Qatar 850 1018 1712 861

USA 323 469 1068 624

Eritrea 575 808 813 631

Mauritius 249 512 461 348

Vietnam 106 1048 340 316

Bahrain 348 331 336 251


Albania 52 75 166 38

Anoglia 293 267 158 131

Djibouti 92 964 102 81

Senegal 372 481 90 51


Tunisia 120 - 81 115


Canada 17 36 67 19



Country 2008 2009 2010 2011

Malaysia 0 69 63 32






Surinam 5 26 26 13

Liberia 16 24 24 16


Greece 17 - 21 -

Sri Lanka 34 26 21 15

Sweden - - 19 -

Gabon - - 17 38

Mali 37 26 16 -

India 100 - 15 9


Congo - 51 9 16

Guinea 23 39 9 18

Gambia 17 11 9 -

Namibia - - 9 -




Uganda - 1 7 -



Kenya - 7 2 1

Italy - 16 1 0

France - 0 1 -

Samoa - - 1 -


Cameron 70 35 1 10

Austria - - - -



Country 2008 2009 2010 2011

Bengladish - - - -

Benin 14 8 - -

Burundy - - - 8


Cyprus 1 - - -

Ethiopia 64 - - 38

Algeria - 127 - 167


Germany - 41 - -

Ghana 8 22 - 32

Hong Kong - 3 - -

Ireland - 2 - -

Japan - - - -

Madgascar 18 - - -

Maldives - - - -

Nigeria - - - -

PeopleS Republic Of

- - - -





Singapore 14 - - -

Spain - 11 - -

Togo 0 - - -

Turkey 488 - - -

Venzuela - 50 - -

Zambia 1 0 - -

Zembabwi 2 5 - -

Unknown - 91 232 308

TOTAL 100996 130322 166459 79759






bull Invoice








bull Packing list






bull Tariff Code









‒ Quantity




































Packing List




Product Labels



















bull Tariff Code

bull MSDS



Transfer of Title









2005 2006 2007 2008 2009 2010


USA 0 0 0 150 120 0

TOTAL 5942 0 4073 3532 3683 3725


USA



2005 2006 2007 2008 2009 2010

TOTAL 1507 0 1831 2089 2316 2745


USA



2005 2006 2007 2008 2009 2010

TOTAL 54721 0 55169 48353 55335 49771


USA


TOTAL 10267 0 9692 9034 8886 8834




2005 2006 2007 2008 2009 2010

USA

TOTAL 22756 0 28394 33842 28756 33688



2005 2006 2007 2008 2009 2010


USA

0

TOTAL 7533 0 6821 7742 11164 15436




Contents

Tables


11 Introduction



131 Key Points



141 Key Points




161 Key Points



171 Key Points


2 Egypt

21 Foreign Trade

211 Cheese

2111 Import Trends



2112 Supply Trends









212 SMP

2121 Import Trends


2122 Supply Trends






213 Whey

2131 Import Trends


2132 Supply Trends







214 Lactose

2141 Import Trends


2142 Supply Trends








Pizza






Bakery Cafeacute








2311 Innovation





2322 SMP

2323 Whey Powder

2324 Cheese


2331 Liquid milk


2332 Yogurt



2333 Cheese





2335 Chocolate



2336 Gum

Sector Trends



2337 Candy



2338 Biscuits




2339 Cakes






2341 Tariffs



3 Saudi Arabia

31 Foreign Trade

311 Cheese

3111 Import Trends


3112 Supply Trends







312 SMP

3121 Trade Trends


3122 Supply Trends




313 Whey

3131 Trade Trends


3132 Supply Trends






314 Lactose

3141 Supply Trends












3311 Innovation





3322 SMP


3324 Cheese


341 Liquid Milk

3411 Sector Trends



342 Laban

3421 Sector Trends



343 Yogurt

3431 Sector Trends




3451 Sector Trends



346 Cheese

3461 Sector Trends




3471 Sector Trends




348 Chocolate

3481 Sector Trends


349 Ice Cream

3491 Sector Trends




34101 Sector Trends



34111 Sector Trends





Hi-Pro Food














RESEARCH EGYPT & SAUDI ARABIA...This study focuses on two key Middle Eastern markets, Egypt and...

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Transcript of RESEARCH EGYPT & SAUDI ARABIA...This study focuses on two key Middle Eastern markets, Egypt and...