Egypt is key for food in­dus­tries mar­ket: Ger­man Bak­ers Fed­er­a­tion

Cut­ting bread sub­sidy would be ad­van­tage in Egyp­tian mar­ket, says Mongi­nis chair­per­son

The Daily News Egypt - - News - By Hagar Om­ran

Michael Wip­pler, chair­per­son of the Ger­man Bak­ers Fed­er­a­tion, said that Egypt is a very im­por­tant mar­ket for the food in­dus­tries sec­tor, adding, “the Ger­man art of bak­ing has a lot of friends around the world; Egypt is one of them”.

The Ger­man Arab Cham­ber of In­dus­try and Com­merce (GAGIC) or­gan­ised a con­fer­ence on Wednesday on the food in­dus­tries mar­ket, on the oc­ca­sion of the Ger­man ex­hi­bi­tion IBA’s pro­mo­tional del­e­ga­tion visit.

Wip­pler said at the con­fer­ence, “we have a bak­ery spe­cial­ist academy, which of­fers dif­fer­ent cour­ses in English for ev­ery­body,” not­ing that the academy re­ceived par­tic­i­pants from around 30 coun­tries.

Chair­per­son of Mongi­nis, Ad­nan Kho­raki­wala, said that Egypt is the world’s largest wheat im­porter, so the bak­ing in­dus­tries mar­ket has a lot of in­vest­ment op­por­tu­ni­ties sup­ported by a pop­u­la­tion of more than 100 mil­lion.

“The wheat con­sump­tion is 100 kg per per­son yearly. Egypt at­tracts about 411 in­vestors en­cour­aged by the ad­van­tages of the mar­ket,” added Kho­raki­wala, not­ing that cut­ting the bread sub­sidy would be an ad­di­tional at­trac­tive el­e­ment for the bak­ing busi­ness.

“Egypt en­joys a huge pop­u­la­tion, good work­force, and nice cli­mate, while in­fra­struc­ture is a bless­ing,” said Khora kiw ala, not­ing that Egypt is a gate­way to African coun­tries, but bu­reau­cracy re­mains a big is­sue.

Con­sump­tion be­hav­iours in Egypt are dif­fer­ent than in India, where Mongi­nis sales trends de­cline by the end of ev­ery month, said Kho­raki­wala, adding, “it seems that Egyp­tians spend all that they have, to con­trary of In­di­ans, who save more than they spend”.

Kho­raki­wala noted that his com­pany trusts the Egyp­tian eco­nomic out­look, tar­get­ing new in­vest­ments, branches, and em­ploy­ees, adding, “lo­cal­is­ing prod­ucts to suit the Egyp­tians is the main recipe for suc­cess.”

“When I first came here I learned a les­son to pro­duce what your cus­tomers wants, not what you think is good. A cake slice prod­uct was pop­u­lar in India; how­ever, Egyp­tians did not like it. They thought it was a soap bar,” said Kho­raki­wala.

Mongi­nis aims to open 83 new re­tail branches, de­pend­ing more on fresh grad­u­ates to man­age the busi­nesses, added Kho­raki­wala.

Gen­eral man­ager of Egy Dairy, Ahmed Na­bil, said that the Egyp­tian mar­ket is an at­trac­tive des­ti­na­tion for the food in­dus­tries sec­tor, sup­ported by its huge pop­u­la­tion of about 104 mil­lion peo­ple, with an an­nual growth of 2.2%.

“We tar­get rais­ing sales to EGP 325m in 2022 com­pared to EGP 120m ex­pected by the end of 2018,” added Na­bil, not­ing that the in­dus­try faced many chal­lenges in the last two years be­cause of the gov­ern­ment’s eco­nomic re­form mea­sures, in­clud­ing the im­ple­men­ta­tion of a value added tax, in­ter­est rate in­creases, and sus­pend­ing lux­ury prod­uct im­ports.

“I think that food prices will rise by 7% in 2018 to face the wide in­creases in pro­duc­tion costs,” said Na­bil, adding that the in­dus­try be­gan to re­cover in 2017.

Cham­ber of Food In­dus­tries Chair­per­son Ashraf El Gaza­y­erli em­pha­sised the im­por­tance of com­mit­ment to in­ter­na­tional spec­i­fi­ca­tions to boost the com­pet­i­tive­ness of the Egyp­tian mar­ket and to help in­crease its ex­ports.

El Gaza­y­erli added, “the in­dus­try wit­nessed many chal­lenges af­ter sus­pend­ing the im­port of some lux­ury in­gre­di­ents be­cause of the dol­lar short­age, but we should be ready to com­pete af­ter re­sum­ing the im­ports”.

Bak­ery snacks are re­mark­ably de­vel­op­ing, and many large com­pa­nies man­aged to lead oth­ers as a re­sult of a range of cre­ative ideas. How­ever, there are still huge in­vest­ment op­por­tu­ni­ties in the mar­ket, said El Gaza­y­erli.

Egypt is the world’s largest wheat im­porter, so the bak­ing mar­ket has a lot of in­vest­ment op­por­tu­ni­ties

Newspapers in English

Newspapers from Egypt

© PressReader. All rights reserved.