An Economic Study of Dairy Production and Processing in Egypt

Document Type : Original Article


1 Agriculture Economic Institute

2 Research, Agricultural Economics Research Institute, Agricultural Research Centre


Dairy is a major source of animal protein and is the raw material for many industries. However, the quantities produced are considered weak and not sufficient for consumption needs, especially the manufacturing needs, as factories depend on 80% of their needs on imported powdered milk. This led to an increase in the prices of these products, hence the reluctance of some consumers to turn to it, and the increase in idle capacity in dairy factories.
 The study aimed to identify the current situation of dairy production and processing in Egypt and to identify the most important causes of dairy failures in order to try to avoid them, improve this industry and raise the efficiency of the dairy industry in Egypt.                             
White cheese, processed cheese, ice cream, pasteurized milk, yogurt, natural margarine, and dry cheese are the most important dairy products in Egypt.
The study indicated an increase in the value and quantity of imports of dairy products compared to exports, as a result of the presence of unemployed energies with avalue representing about 18.3% of the total energy available in dairy products factories during the study period.
These malfunctions are due to several reasons, the most important of which is the difficulty of marketing, and other reasons like the lack of spare parts, the scarcity of raw materials, and the absence of workers, these issues have led to the presence of idle energy, accounting for approximately 53.02%, 20.28%, 9.97%, 9.83%, and 6.9% respectively of the total idle energy value during the study period.
The dairy industry in Egypt is characterized by being small and micro, and more than of 75% of this industry operates randomly. The state is making significant efforts to improve this industry, both in the production stage by providing dairy breeds and offering necessary immunizations and medical care. The state also aims to reconcile between producers and factories by providing licensed milk collection centers equipped to maintain the quality of milk, reduce waste, and reduce the role of intermediaries to limit price increases.


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