BMI's Executive Summary

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Egypt's food and drink and agricultural industry is continuing down its sometimes slow, sometimes difficult path to development. Recognising the important role that agriculture plays, both as a contributor to the economy and as a major source of employment, the government has been investing in agricultural development programmes. Another motivation behind this move to increase production is that the country is tremendously dependent on food imports in order to feed its large and rapidly growing population. Yet the food processing industry is also in need of government support, as this is another area in which Egypt has considerable untapped growth opportunities.

Although Egypt produces a wide variety of crops, only 3.5% of its landmass, mainly around the Nile delta, qualifies as agricultural land. Agricultural development is also held back by a number of technical, logistical and information-related obstacles. In order to realise the potential of the country's agricultural sector, more investment is needed in the country's human resources through the education of its farmers. One of the main ways in which the government has been supporting this sector has been through land reclamation projects, which are very controversial due to the level of water usage involved. Some of these projects are huge in scale, with the feasibility of such projects continually questioned. Many argue that what the government needs to focus on instead is teaching farmers about irrigation, crop rotation, efficient harvesting and transportation methods. Taking these criticisms on board, the government's Ministry of Trade and Industry is now working with a series of international organisations to help inform farmers of fair market prices for their crops, as well as provide them with technical information for storage and transportation. If Egypt's farmers can be taught to adopt more efficient and sustainable farming techniques then the potential of the country's agricultural sector will be vastly improved.

Meanwhile, the food processing industry is also characterised by its high potential but numerous obstacles. The domestic food-processing sector is growing and has attracted increasing investment in recent years. Egypt has ambitious plans to modernise its food-processing sector, with the ultimate aim of increasing its export markets. Already, free trade agreements with neighbouring Middle Eastern countries have led to a thriving export industry for Egyptian food products. Many companies operating in Egypt have to deal with a shortage of qualified personnel, finding it difficult to recruit employees with the right skill sets across all levels of their operations. This is due to the fact that although education levels are relatively high in Egypt, there is a considerable mismatch between skills taught in schools and those required by most employers. Although labour is cheap, there is still a deficit of trained and experienced staff, leading to inefficiencies in the running of businesses. If the government invests in its human resources in terms of improving education and practical skills, this could have a major positive impact on both the agricultural and food processing industry.

Contents

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Chapter 1 – Business Environment

Table: Middle East Business Environment Rankings

SWOT Analysis

Egypt Food & Drink Industry SWOT

Egypt Political SWOT

Egypt Economic SWOT

Egypt Business Environment SWOT

Economic Outlook

Table: Egypt: Macroeconomic Data And Forecasts

Chapter 2 – Retail

Regional Overview – Discount Retailing

Table: Discount Store Sales in US$bn

Table: Key Players in Discount Retail

Industry Forecast Scenario

Table: Retail Indicators

Company Developments

Market Overview – Egypt

Table: Structure Of Egypt’s MGR Market By Number Of Outlets

Table: Structure Of Egypt’s MGR Market – Sales Value By Format

Chapter 3 – Food & Drink

Dairy In The Middle East

Table: Milk Production By Volume (tonnes)

Table: Key Players

Industry Forecast Scenario

Table: Food Consumption Indicators

Table: Food Sub-sector Indicators

Table: Drinks Indicators

Industry Developments

Company Developments

Market Overview – Egypt

Chapter 4 – Tobacco

Industry Forecast Scenario

Table: Tobacco Indicators

Company Developments

Market Overview

Chapter 5 – Competitive Landscape

Table: Key Players in Egypt's Mass Grocery Retail Sector

Table: Key Players in Egypt's Food & Drink Sector

Regional Company Case Studies

Lulu Company Profile

Table: Lulu Outlets

Ülker Company Profile

Table: Ulker

Table: Ulker's Regional Presence

Regional Food & Drink Case Study – Aujan Industries

Tables: Aujan Industries – The Figures

Table: Aujan Industries Production Facilities In Saudi Arabia

Table: Aujan Shareholders

Mecca-Cola’s Performance in the Middle East

Table: Mecca-Cola Global Presence

Table: Mecca-Cola – The Figures

Company Analysis

Al-Ahram Beverages Co (ABC)

Eastern Tobacco Company (ETC)

British American Tobacco

Metro (Mansour Group)

Cairo Poultry Company (CPC)

Faragalla Group

Juhayna

BMI Forecast Modelling

How we generate our industry forecasts

Retail Industry

Sources

Competitive Landscape for Middle East & Africa Food & Drink Reports: Sample of  
Companies Ranked

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At-a-glance perspective on the strengths, weaknesses, opportunities and threats facing each market’s food & drink industry. BMI also provides similar economic and business environment studies. Company SWOTs (Strengths, Weaknesses, Opportunities, Threats) covering all leading food and drink companies operating in each market, including competitive intelligence on geographic presence and competitive positioning of multinationals against local companies; leading products, services and brands; sales and local market share; foreign direct investment, projects, partners and acquisition strategy. Illustration of the industry via rankings tables comparing revenues, number of outlets, number of employees and registration dates. BMI analyses each company’s performance, market position, strategy and investment potential.

Network of Middle Eastern & African Food Sources

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BMI's Middle Eastern & African Food Reports are based on an extensive network of multilateral organisations, government departments, food industry associations, chambers of commerce and company reports. Information sources include: