Promoting Agricultural Value Chains:
In the OIC Member Countries
76
efficiency are further recognised problems (Tibbo, 2013). In 2009, average milk production
per cow was at 0.62t per year compared to 10t per year in the USA (LACTIMED, 2014).
Furthermore, a significant gap in domestic feedstock production implies that Egypt has to
import maize, soybean and bran from abroad to supplement domestically grown fodder.
A number of public research institutes are tasked with the objective of conducting research to
address these needs and maximise economic return per unit of land and water, e.g. Agriculture
Research Center, Animal Production Research Institute, and National Research Centre Food
and Dairy Technology Department. The focus on increasing milk output is particularly
pronounced given Egypt’s limited agricultural land and water resources, which restricts large
increases in cattle herds and limits the expansion of the area used for fodder crop production
(Oxford Business Group, 2012b).
In addition, the Egyptian dairy sector has received support from various donor agencies over
the years. For instance, a current project (LACTIMED, 2012-2015), financed by the European
Union through the European Neighbourhood and Partnership Instrument, “aims to foster the
production and distribution of typical and innovative dairy products in the Mediterranean by
organising local value chains, supporting producers in their development projects and creating
new markets for their products”. An earlier project financed by the European Commission
(BAT4MED, 2010-2013) aimed at implementing best available techniques (BAT) to respond to
health and environmental impacts of industrial emissions in the dairy and textiles industry in
Egypt, Morocco and Tunisia. Finally, the US development agency USAID implemented a Dairy
Directive Project (2001-2004) which promoted improvements in the dairy sector to prevent
child malnutrition and illness.
Currently the agricultural sector, including livestock and dairy production, is recovering from
the political events starting in January 2011, which heavily impacted on the entire economy.
Prices of inputs increased, mainly due to the disruption of transport and the depreciation of
the Egyptian Pound. Steep fuel price increases and disturbances in manufacturing and
distribution sectors led to a reduction in sales value growth from 24 percent in 2010 to 21
percent in 2011 (LACTIMED, 2014). While there are indications that growth rates accelerated
from 2012 onwards again, it is unclear in how far the dairy sector continues to be affected by
the political situation.
5.2.2 Standards
Quality and food safety standards have existed for dairy products only since 1980 (Markt &
Produkt, 2010). Such standards are designed and implemented by the Egyptian Organisation
for Standardisation and Quality Control (EOS) and the General Organisation for Export and
Import Control (GOEIC). The former has to enforce requirements and standards for imported
and domestic products; the latter inspects imported and exported goods.
Most Egyptian standards on dairy products are mandatory. This holds in particular for
technical standards that relate to food safety including food pathogens and pesticide residues.
Under the Quality Control Plan issued in 2003, the 63 most important Egyptian dairy food
standards, i.e. those directly affecting consumer health and food safety, were harmonized
towards international standards (CODEX Alimentarius and EU import standards). A specialised
committee for dairy products was formed, comprising experts from the chamber of food
industries, ministries, regulatory authorities, dairy processing companies, universities,
research centres and consumer protection agencies, with the aim of enabling exported