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PMP Revised Version 010612 10 JAN 12 Final Draft.Docx STRENGTHENING ENTREPRENEURSHIP AND ENTERPRISE DEVELOPMENT (SEED) DAIRY VALUE CHAIN MAPPING AND ASSESSMENT Technical Report No. 34 July 2018 This publication was produced for review by the United States Agency for International Development. It was prepared by AECOM. 1 STRENGTHENING ENTREPRENEURSHIP AND ENTERPRISE DEVELOPMENT (SEED) DAIRY VALUE CHAIN MAPPING AND ASSESSMENT CAIRO, EGYPT JULY 25, 2018 Submitted to: Ingi Lotfi, COR USAID/Egypt Authors: Aly Zein Elabdeen Kassem, Dairy VC Mapping and Assessment Consultant Main Contributor: Mahmoud Emara, VCs Development Sector Advisor, Dairy & Fishery Other Contributors: Dalia El-Molla, Team Leader – Integration of MSMEs in Progressive VCs Hassan Elbadawy, Technical Coordinator – Integration of MSMEs in Progressive VCs Activity name: C.1.1.1 VC Assessment and Cost-Benefit Analysis Contract: AID-263-C-16-00003 Contractor: AECOM International Development DISCLAIMER: The authors’ views expressed in this document do not necessarily reflect the views of the United States Agency for International Development or the United States Government. i Contents ACRONYMS AND ABBREVIATIONS .................................................................................. 5 ACKNOWLEDGEMENTS ..................................................................................................... 6 EXECUTIVE SUMMARY ...................................................................................................... 7 ASSIGNMENT BACKGROUND ........................................................................................... 8 CHAPTER 1: DAIRY SECTOR MAPPING ........................................................................... 9 EGYPT’S DAIRY PRODUCTS VC OVERVIEW ........................................................................... 9 EGYPTIAN DAIRY SECTOR & VC OVERVIEW ........................................................................ 11 Animal Health .............................................................................................................. 11 Milk Production ............................................................................................................ 12 Mapping of Milk Production .......................................................................................... 14 Mapping of White Cheese Factories ............................................................................ 17 Consumption ................................................................................................................ 18 Export .......................................................................................................................... 20 CHAPTER 2: MAPPING AND ANALYZING DAIRY SUBSECTORS ................................. 30 A. MEETINGS WITH KEY DAIRY STAKEHOLDERS & SUPPORTING ORGANIZATIONS .................. 30 A.1. Egyptian Organization for Standardization and Quality (EOS) .............................. 30 A.2. Industrial Control Authority (ICA) .......................................................................... 32 A.3. Food and Agro Industries Technology Centre (FAITC) ......................................... 33 A.4. Food Export Council (FEC) ................................................................................... 33 A.5. Industrial Modernization Center (IMC) .................................................................. 35 A.6. Food Technology Research Institute (FTRI) – Dairy Technology Research Department (DTRD) ..................................................................................................... 35 A.7. Chamber of Food Industries (CFI), Federation of Egyptian Industries (FEI) .......... 36 A.8. Industrial Development Authority (IDA) ................................................................. 37 A.9. Micro, Small, and Medium Enterprises Development Agency (MSMEDA) ............ 38 B. VALIDATION VISITS TO DAIRY MSMES ACROSS EGYPT ................................................... 41 C. FOCUS GROUPS WITH KEY STAKEHOLDERS ................................................................... 41 D. DAIRY VC CONSTRAINTS AND BOTTLENECKS ................................................................. 42 D.1. Governmental Entities .......................................................................................... 42 D.2. Dairy Business Climate......................................................................................... 42 D.3. Dairy MSMEs level ............................................................................................... 44 E. DAIRY PRODUCTS MARKETING CHANNELS ...................................................................... 45 E.1. Vegetable Oil Cheese ........................................................................................... 46 E.2. Domiati Cheese .................................................................................................... 46 E.3. European Cheese, i.e. Gouda & Edam ................................................................. 46 E.4. Syrian Cheeses, i.e. Ackawi & Halloumi ............................................................... 46 E.5. Ghee..................................................................................................................... 46 E.6. Ras Cheese .......................................................................................................... 46 E.7. Malawi Cheese ..................................................................................................... 47 E.8. Processed Cheese ............................................................................................... 47 E.9. Instant-Milk-Powder Products ............................................................................... 47 CHAPTER 3: RECOMMENDED INTERVENTIONS ........................................................... 82 A. REVIEW OF PERVIOUS DAIRY VC PROJECTS ................................................................... 82 A.1. Dairy Processing MSMEs Development, FAITC, SFD and AfDB .......................... 82 A.2. Technical Assistance for the Improvement of the Quality of Milk and Dairy Products in Egypt, FAITC, AINIA and SCA ................................................................................. 82 A.3. Egypt – Dairy Sector Development, EU, 2012 ...................................................... 83 A.4. Ras Cheese Consortiums, FAITC and UNIDO, 2013 ............................................ 84 A.5. From Farm to Fork, Dairy Stakeholders Analysis, Knowledge Economy Foundation 2 USAID’s Strengthening Entrepreneurship and Enterprise Development (SEED) (KEF), 2015 ................................................................................................................. 84 A.6. Promoting Mediterranean Dairy Products, LACTIMED project, EU, 2015 ............. 85 A.7. Rural Income and Economic Enhancement (RIEEP) Project, ADB, 2015 ............. 85 A.8. USAID SEED Summary Analysis of VCs Assessment and Priorities for Interventions, September 26, 2016 .............................................................................. 86 B. SUGGESTED INTERVENTIONS TO IMPROVE THE DAIRY VC ............................................... 86 B.1. Technical Assistance ............................................................................................ 87 B.2. Technology Transfer ............................................................................................. 88 B.3. Training ................................................................................................................ 89 B.4. Quality .................................................................................................................. 91 B.5. Environment ......................................................................................................... 92 B.6. Marketing .............................................................................................................. 92 B.7. International Trade ................................................................................................ 94 B.8. Investment and Finance........................................................................................ 95 ANNEX I: VALIDATION VISITS TO DAIRY MSMES .......................................................... 97 1. Khair Company, Mahala Kobra, Gharbia .................................................................. 97 2. Event-Aga, Dakahlia ................................................................................................ 99 3. Habiba, Giza ............................................................................................................ 99 4. The Egyptian Lebanese Company, Monufia ........................................................... 100 5. Farm Cheese Company, 6 October, Giza .............................................................. 101 6. Egyptian Syrian Co. for Dairy Products, 6 October ................................................. 102 7. Arab French Company, Borg El-Arab Industrial Zone, Alexandria .......................... 104 8. Alfa Milk, Edku, Beheira ......................................................................................... 106 9. Awlad Gabr (AG), Kafr Eldawar, Beheira ............................................................... 107 10. Mohamed Elsharkawy drying store for adjusting cheese moisture, Beheira ......... 108 11. Miro, Arab Cultivators Tanbouli Co., Sadat .......................................................... 110 12. Abinar, Beheira ...................................................................................................
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