16th Cairo Marketing Club, Animal Health Marketing by Dr. Mahmoud Samy

Animal Health Market Marketing
Dr.Mahmoud Samy
Eva Pharma
Marketing Manager

Dr.Mahmoud Bahgat
Founder of the Marketing Club

Confidential - Internal use only - EVA PHARMA
3

Confidential - Internal use only - EVA PHARMA
4

Animal Health / Market Sectors
5
Poultry Large Animal PETS

Poultry
Large Animal
Pets
50 %
35 %
15 %
Market Sector
(Values)

7
2.5 B. LE
3 B. LE
2.5 B. LE
1 B. LE
Market Values / Main Categories
Vaccines Pharmacuticals
Feed Additives Disinfectant and Agricultural

Top Distributers
9
International Free Trade (IFT)
United Biomed (UBM)
Nagy AWAD
Ghannam
Interocova
Interpharma
IntermedicaVET (IMV)

Top National Manufacturing Companies
10
Pharma Swed
Atcopharma
MEVAC
Ghannam
Arabcomed
Adwia
Elmadar ( Royal Link )
Deltapharma
Kirovest
3 A Pharma

Challenges
Distribution
Registration
Packaging
Costing
Counterfeit
Specialty

12
Pharmaceuticals
Vaccines
Antibiotics
Anticoccidial feed
Anticoccidial Oral solution
Mucolytics
Bronchodilator
Poultry Main Therapeutic Area
Agricultural
Feed Additives
Premixes (Mineral & Vitamins)
Immune Stimulants Oral sol
AntiMycotoxines Oral sol.
Amino Acids Oral sol.

13
Poultry Target Customers
Consultants Distributers Key Accounts
Retailers Feed Mills End Users

15
Pharmaceuticals
Vaccines
Hormones
Antibiotics
Anthelmintic
NSAIDs
Anesthetics
Multivitamins & Minerals
Anti-histaminic
Diuretics
Antimetabolic disorder
Anti-anemic
Antihemorrhagic
Anti-blood parasite
Mucolytic
Large Animal Main Therapeutic Area
Agricultural
Feed Additives
Premixes (Mineral & Vitamins)
Immune Stimulants Oral sol
AntiMycotoxins Oral sol.
Amino Acids Oral sol.

16
Large Animal Target Customers
Consultants Distributers Key Accounts
Retailers End Users
GOVS
Govs= General Organization Of Veterinary
Services

18
Pharmaceuticals
Vaccines
Antibiotics
Anti-Parasitic
Anthelmintic
NSAIDs
Anesthetics
Antifungal
Anti-histaminic
Diuretics
Antihemorrhagic
Anti-emetic
Anti-anemic
Anti-blood parasite
PETS Main Therapeutic Area
Agricultural
Dry Food

19
Pets Target Customers
Consultants
Private Clinic
Distributers
Pet Shops
End Users

Overview on poultry industry in Egypt

Broiler 900 - 1250 m.
Breeder 7 - 11 m.
Layer 35 - 38 m
Duck 25 m.
Turkey 15 m.
Egyptian Poultry Industry :Current Situation 2019 Population

GPS / Grand Parent stock with 6 companies (560,000) head
1- AL Watania
2- two in CPC
4- AL Wadi Co.
5- Al Aasema Co.
6- Tiba Co
PS / Parent stock around 10 million heads can be increased by
15% - hatching eggs 130 per parent had/year . ( 150-160 ) with
hatchability 80%.
GPS
PS
Broiler
Structure of Egyptian Broiler Value Chain

**
‫أو‬ ‫التسمين‬ ‫كتكوت‬ ‫إلنتاج‬ ‫بالوصول‬ ‫سواء‬ ‫الداجني‬ ‫اإلنتاج‬ ‫سلسلة‬ ‫إنتاج‬ ‫في‬ ‫تساهم‬ ،‫للجدود‬ ‫فصيلتين‬ ‫هناك‬
‫األولى‬ ‫الفصيلة‬ ،‫البياض‬ ‫كتاكيت‬
«
‫البيض‬ ‫جدة‬
»
‫والثانية‬ ،‫البياض‬ ‫دواجن‬ ‫إلنتاج‬ ،
«
‫التسمين‬ ‫جدة‬
»
‫تنت‬ ‫والتي‬ ،
‫ج‬
‫لألفراد‬ ‫المحلي‬ ‫االستهالك‬ ‫ألغراض‬ ‫المزارع‬ ‫طيور‬
.
**
‫مصر‬ ‫في‬ ‫يوجد‬
7
‫التسمين‬ ‫جدود‬ ‫تربى‬ ‫كبرى‬ ‫شركات‬
**
‫إلى‬ ‫تصل‬ ‫الدواجن‬ ‫لصناعة‬ ‫مصر‬ ‫تستوردها‬ ‫التي‬ ‫الجدود‬ ‫إجمالي‬
340
‫ألف‬
«
‫إناث‬ ‫خط‬ ‫جدة‬
»
‫تنتج‬
12
‫مليون‬
«
‫تسمين‬ ‫أم‬
»
‫المتوسط‬ ‫في‬ ‫تنتج‬ ،
1.2
‫تسمين‬ ‫كتكوت‬ ‫مليار‬
.
**
ً‫ا‬‫سنوي‬ ‫تستورد‬ ‫مصر‬
400
‫من‬ ‫ألف‬
«
‫البياض‬ ‫أمهات‬
»
‫إلى‬ ‫الواحدة‬ ‫ثمن‬ ‫يصل‬ ،
6
‫تنتج‬ ،‫دوالرات‬
40
‫مليون‬
‫تنتج‬ ‫الكتاكيت‬ ‫وهذه‬ ،‫بياض‬ ‫كتكوت‬
10
‫تنتج‬ ‫البياض‬ ‫األم‬ ،‫سنويا‬ ‫مائدة‬ ‫بيضة‬ ‫مليارات‬
100
‫دورة‬ ‫خالل‬ ‫كتكوت‬
‫البالغة‬ ‫اإلنتاج‬
66
ً‫ا‬‫أسبوع‬
.
**
‫من‬ ‫تتراوح‬ ‫الجدة‬ ‫استيراد‬ ‫تكلفة‬
40
‫إلى‬
45
‫ينتج‬ ،ً‫ا‬‫دوالر‬
40
‫العام‬ ‫في‬ ‫كتكوت‬ ‫فرخة‬
.

Main Poultry Sectors
Industrial integrated
system with high level
biosecurity and
birds/products
marketed
commercially (e.g.
CGP, WG ).
Commercial poultry
production system
with moderate to
high biosecurity and
birds/products
usually marketed
commercially (e.g.
farms with birds
kept indoors) .
Commercial
poultry
production system
with low to
minimal
biosecurity and
birds/products
entering live bird
markets , with
birds in open
sheds; chickens
and waterfowl).
Village or backyard
production with
minimal biosecurity
and birds/products
consumed locally
Cost/KG
Kg/Dressed Meat
24.30 LE 29.00 LE 30.00 LE 27.60 LE

• 70 % of broiler production is small scale ( Sectors 2-3)
• The integrated Companies are growing and establishment ( Cairo 3A, CPC , Al Wataneya
Group). ( Sector1)
• 7-8 cycles rather than 5 or even 9 cycles per year.
• Intensive use of hand labor.
• Poor Biosecurity , high mortality, high FCR , ununiformed stock (Sector 3-4)
• AI consumer scare, poultry meat import policy change, etc.
• The tremendous price fluctuations and availability of poultry meat to final consumers.
• Annual Poultry per capita in Egypt was around 9 kg.
• (Over 80%) hard currency ($) share in the cost of broiler meat production. Currency risk
• Biological risk (AI, disease) , as well as consumer attitude risks.
General Key Issues

Feed Milling capacity In Egypt
• 236 Units feed mills producing 6 million tons
• Egg laying hens consume around 18%
• 91 feed mills non fully functional P/C over 0.5 million tons /year
• The average live slaughter weight of 1,8 kg/bird
• FCR close to 1,7kg of feed / 1kg of live weight gained.
• Layer consume 745 Tons
• Broilers consume 4 M Tons
• Broiler Feed Add
• 70% Anticoccidial Feed Add . 2,376,36 tons
• 85% AntiClosterdials 2,885,580 Tons
• 85% AntiMycotoxins 2,885,580 Tons
• 40% Lysolecithine 1,357.920 Tons

• There are 360 hatcheries that are operational. Capacity 2279 m.
eggs/year.
• There are 65 hatcheries that are not operational with capacity of 245 m.
eggs
• There are also 549 operational municipal ‫بلدى‬ hatcheries that support
back yard farmers with annual hatching capacity of 247 million eggs.
• In addition, there are 413 municipal hatcheries that are not operational
with annual hatching capacity of 136 million eggs.
Hatching Capacity

Lack of Slaughtering Capacity
* 500 slaughterhouses units in 2019.
Divided into :
* 200 units (65%) Manual slaughterhouses
* 62 Units (20%) Semi-automated slaughterhouses
* 47 Units (15%) Modern automated slaughterhouses
* The slaughtering capacity is 2 million birds per day at two shift.
(9%) Only 87 million have been slaughtered by the slaughterhouses. The rest
was consumed by the LBM.
* Also lack cold storage capacity.
* Around 70%-80% of broiler production is marketed through LBMs
* LBM is still Consumer preferred.

0
500
1000
1500
2000
2500
3000
2017 2018 2019 2020 2021
Broiler
Population
/Million
Years
Total Local chicken production
Total Local chicken production Linear (Total Local chicken production)
Source: FAO Research and Marketing & Business Consultancy, 2019
The expected size of total chicken production in Egypt from 2017 until 2021

31
 Poultry is one of the main agricultural industries in Egypt. It contributes 10 percent of
agricultural value added, with the country producing over 1 million tons of poultry meat. Per
capita consumption is approximately 15 kg of poultry meat per year3. The sector is highly
heterogeneous, comprising of large integrated, specialized producers and at least 11 million
households keeping chickens and other poultry.
 Stakeholders have identified two main poultry production systems in Egypt,
intensive/commercial and extensive/household.
Poultry production in Egypt: a snapshot

32
The intensive poultry production system
 The intensive poultry production system is varied and includes three sub-sectors differentiated by
husbandry practice and market integration, namely small-scale producers (sector 3), medium-scale
poultry farms (sector 2) and vertically integrated poultry producers (sector 1). Although with varying
degrees of biosecurity and intensity, all intensive poultry producers utilize an all-in all-out system, with
batches of baladi improved or exotic cockerels and chickens entering and exiting the farm in unison on
a cycle basis, generally 4-5 cycles a year for small scale and 7-8 cycles for integrated large farms.
 The intensive poultry system is pivotal for the supply of affordably-priced animal protein to the
Egyptian population. However, it is highly dependent on importing feed – mainly maize and soya bean
– and other inputs and equipment, which makes consumer prices highly volatile. At the same time,
poor enforcement of existing laws and regulations makes the sector prone at outbreaks of epidemic
diseases and at risk of polluting the environment

33
 There are approximately 30 000 registered intensive poultry farms, and approximately the same
number of unregistered farms. The majority, almost 80 percent, are in Lower Egypt.
 The flock size varies from 5 000 at the small-scale, up to 100 000 for integrated producers. Over
80 percent of Egypt’s poultry are kept in intensive systems.
 While all producers aim to utilize modern husbandry practices for high efficiency, in most cases
only largely integrated farms can afford the investments needed to adopt modern technologies
and practices. Outbreaks of avian influenza, for example, occur in intensive poultry systems too.

34
 Intensive producers have regular programs for control of endemic diseases such as
salmonellosis and other bacterial and parasitic diseases of socio-economic importance.
 The intensive poultry system contributes about 84 percent of total poultry meat production in
Egypt – about 850 000 tons per year. The average dressed weight is around 1.3 kg per bird.
 Sector 1 and 2 intensive producers utilize formal marketing channels, and their birds reach
consumers as dressed and processed chickens in large and small retail outlets. Conversely,
small-scale intensive producers tend to sell live birds through informal marketing channels.

35
 The extensive poultry production system includes rural, peri-urban, or urban backyard, balcony
or roof top systems. Birds may be confined or free range; they mainly scavenge for food though
some feed supplementation can be provided. The size and bird density varies between farms.
Family members are responsible for all production activities, and they do not hire permanent
or causal labor.
The extensive poultry production system

36
 The exact numbers of farms and birds in extensive poultry production system are not accurately
known, estimates derived from the census of households in urban and rural areas, and literature
review, indicate that about 1.4 million individuals and approximately 11 million households are
involved in extensive poultry production5.
 The flock size varies from 30 up to 1000 birds, usually indigenous breeds.
 Extensive livestock producers rarely access veterinary services and when they do, the main
sources of service are private veterinarians and/or owners of veterinary medicinal shops in
villages. Consequently, extensive producers rarely vaccinate their birds with regularity, with
the exception of those keeping relatively large flocks. Vaccination, when done, is against main
viral diseases such as highly pathogenic avian influenza (HPAI), Infectious Bronchitis (IB) and
Newcastle disease.

37
 The extensive poultry system contributes about 25 percent of total poultry meat production per
year. The average dressed weight is about 1.1 kg per bird.
 Extensive producers mainly raise birds for home consumption, with the surplus being sold in
live bird markets or to neighbors. Extensive producers with larger flocks sell their birds to
traders/brokers, who's in turn sell them to poultry shops in urban areas.
Poultry rearing is critical for the less well-off, as it represents a small but constant income-generating
activity and an affordable source of animal protein for household members. The ongoing intensification
of extensive poultry system is contributing to an increased demand and price for inputs such as one dayold-
chicks, feed, housing, husbandry management and healthcare services which, while increasing
productivity, are also reducing the profitability of backyard poultry systems.

Chicken distribution
by production
system in Egypt
38

Overview on Large Animal industry in Egypt
Total
19 M Heads

40
4.5 Million Head
2.4 M / Balady
2 M / Mix
174,905 / Foreign
COWS

Horse
42
1 Million Head
10,241 / Arabian Horse
845,882 / Donkeys
97,933 / Horse Balady
36,247 / Mules

Sheep & Goat
43
9.7 Million Head
Sheep / 5,564,117
Goat / 4,153,261

Top Dairy Farms
Top Dairy Heads
Dina Farm 10,000
Lamar 7,000
Juhynah 5,000
Milkeyse 5,000
DANONE 4,000
Kiriazy 3,000
Alex-Copenhagen 2,800
International Land 2,000
Alex Agriculture Co. 1,200
Total 40,000

Cattle and buffaloes, production in Egypt: a snapshot
46
 The bovine sector is well integrated with cropland
 since Egypt has limited natural pastures. Female
 cattle and buffaloes are used for milk production,
 while male animals and infertile females are fattened for meat.
 Cattle and buffaloes make up about 23 percent of total agricultural value,
 a total of 73.5 billion EGP of which 66 percent is meat production and 34 percent milk production.
 Per capita consumption in 2015 was approximately 11 kg of red meat and 59 kg milk6.
 The bovine production system is highly heterogeneous, comprising of large integrated specialized
producers along with small scale farms and households keeping cattle and buffaloes.
 There are three main cattle and buffalo production systems intensive, semi-intensive and extensive.

Intensive bovine production system
47
 The intensive bovine production system is characterized by high input and output livestock holdings.
 The intensive system accounts for over 7 percent of the total beef and dairy cattle and buffalo
population of the country.
 It includes dairy and beef farms of various sizes and types,
 ranging from ten to many thousands of heads of cattle and buffalo.
 There are approximately 14 390 intensive bovine production system farms registered.
 Herd size varies from 10 up to over 1 000 heads.

48
 Exotic breeds are used for milk production and exotic and crossbreeds for beef production.
 Intensive bovine farms have regular access to veterinary services, including mass government
vaccination programs against diseases such as foot and mouth disease (FMD), Rift Valley fever
(RVF) and lumpy skin disease (LSD) and private supplied vaccinations against another endemic
and infectious diseases such as brucellosis.
 Intensive beef and dairy farms produce approximately 84 000 tons of meat and 5 million
tons of milk per year. Almost 90 percent of the milk produced originates in large dairy farms and is sold to
processors. Small-scale intensive dairy farmers are either contractors of large dairy farms or sell their
products to milk collection centers, which are the source of raw milk for urban dwellers. Beef animals are
sold through formal chains to butchers in large cities or directly to slaughterhouses.
Intensive bovine production system
Intensive beef and dairy production systems are the main source of quality milk and beef for Egyptian
consumers. In all cases, production is highly dependent on imported feed ingredients – grains, milling
by-products, added vitamins, minerals, fats/oils, and other nutritional supplements.

Semi-intensive bovine production system
49
The semi-intensive bovine production system, while utilizing modern production and husbandry
practices to some extent, is often disorganized. The number of heads per farm ranges, according to
season, between 10 and more than 50. Improved local breeds dominate the semi-intensive system,
which produce both beef and milk7.
The semi-intensive production system provides a considerable share of the raw milk and meat preferred
by consumers in urban Egypt. However, varied production practices, a scattered and unorganized
farmer community, limited infrastructure, and unregulated value chains, make production and
productivity highly variable, which limit the incentives for farmers to invest in productivity enhancing
inputs8.

50
Semi-intensive bovine production system
Semi-intensive farms comprise almost 60 percent of the total bovine population. The herd size
can range from 10 to more than 50 heads of cattle and buffalo.
 Buffaloes are mainly used for milk production and supply more than 70 percent of raw milk.
 Milk is principally sold as liquid raw milk, with a small percentage processed into homemade
cheese, butter and yoghurt. Surplus production supplies large cities through milk collectors and
distributors. Few semi-intensive farms are contracted by large milk and milk processing
factories.
 Animals are vaccinated during government mass vaccination campaigns against FMD, RVF
and LSD. Semi-intensive cattle and buffalo producers depend on private practitioners for
emergency and regular veterinary services, with limited access to governmental veterinary
services.
 The semi-intensive bovine system produces the majority of meat in Egypt. Fattening of cattle
and buffaloes is highly seasonal – dependent on feed availability and religious events – and
animals are sold live either directly in livestock markets or to butchers in large cities.

The extensive bovine production system
51
The extensive bovine production system is characterized by low inputs and low outputs,
with farmers keeping herds of between 1 and 10 indigenous cattle and buffaloes as well as some cropland.
The extensive system is informal and so statistics are not always robust for this system.
The extensive bovine production system provides a source of income and protein for a large share of
households in rural areas.
It is a major component of their livelihood. Due to a lack of proper management practices and poor
breeding, however, productivity and profitability are low.

The extensive bovine production system
52
 Households in the extensive bovine production system keep about 33 percent of the total cattle
and buffalo population in Egypt9. The number of heads per farm ranges between 1 and 10
animals.
 Animals are largely fed with Egyptian clover (berseem), the key forage crop. Though corn leaf's
(darawa), hay and straw are also common, particularly in the summer.
 Milk production is self-consumed, used to feed calves feeding and sold to neighbors or milk
collectors. A minor share is processed into local made cheese and ghee for consumption by
people in rural and urban areas. Again, these products are both for home consumption or sold
in informal markets10.
 Surplus young calves, bulls and unproductive females are sold in live animal markets. Few
animals are slaughtered, except for special occasions such as weddings.
 Cattle and buffaloes are vaccinated during government mass vaccination campaigns against
FMD, RVF and LSD and households rarely access other animal health services.

Cattle and buffalo
distribution by
production system
in Egypt
53

• Current Situation
• Egypt's dairy industry has been associated with problems for several years. Started in 2004 of
both foot and mouth disease and lumpy skin disease, attributed to cattle imports from Ethiopia,
decimated the local herd. The industry has not recovered yet.
• Most of the country's livestock herd is dedicated to dairy production. Local dairy breeds are not
efficient milk producers, so the dairy industry is reliant on imports which are highly regulated by the
government.
• Egypt as a big market consume more than the local production. There is always a market share
available. There are more than 300 private and public dairy production factories in Egypt.
Dairy Sector in Egypt

Main Players / producers
 Dina Farms is the country’s leading producer of milk. Total domestic production currently
covers about two-thirds of Egypt’s total milk consumption, the deficit is supplemented by
powdered milk imports.

• Since 1983, and for more than 3 decades Juhayna has embarked a journey full of development and
expansion that distinguished it as a leading Egyptian producer of juice and dairy products.
• Arla Foods and the Egypt-based dairy company Juhayna have agreed to form a joint venture which
will sell Arla’s products across Egypt.

 Located on the outskirts of Alexandria and launched in 1946, SECLAM became the first dairy
production factory in Egypt, producing pasteurized milk on a large scale.
 After SECLAM was acquired by Mansour group in 1998 it became the first company in Egypt to
produce juices in PET bottles with sports caps, as well as the first to re-launch pasteurized (fresh) milk.

• first started production back in 1990 with a modest, but reasonably diverse group of
international quality dairy products that included La Classes' Swiss cheese; which
includes Gruyere, Emmental, Parmesan cheese and La Classes' fresh cream.
• Today, Arab Dairy also manufactures a variety of different types of cheese for export for
renowned brands such as Penguin and Goody. Many of the products Arab Dairy produces
for these companies are exported across the Middle Eastern region to countries such as
Lebanon, Jordan, Libya, the UAE, Saudi Arabia, Palestine, Bahrain, Oman and Kuwait.

 Established in 1989, the Arabian Food Industries Co. as a leading manufacturer of cheese and dairy
products in Egypt. Its flagship cheese brand Domty, has gained the market’s trust and its consumers’
loyalty through its consistent commitment to quality, offering of a wide variety of products and flavors
and constantly expanding its market reach to be available on all supermarket shelves.
 Initially starting with two distribution branches and a couple of trucks in 1989, Domty has quickly
grown to over 10 branches around the country and a fleet of 100 trucks. By 2007 the company’s
products had reached the export market to several countries in the Middle East and GCC region.

• Greenland Group for Food Industries was founded in Egypt in 1995 and was acquired by the
Americana Group in 2005 in its ongoing efforts to become the regional benchmark of the
food industry.
• Greenland leveraged the reach and strength of Americana to become a market leader in the
field of Dairy and Juice production within Egypt, GCC and Levant.

 was established in 1910 in Damietta - Egypt. It belongs to Katilo family which is considered the
pioneer in establishing dairy industry in Damietta.
 By the year 1940 Katilo co. has established its own marketing division to distribute its products
inside Egypt and start exporting to some of the Arab countries . In the year 1978 , it was the time
for the third generation represented by Mr. Abdel Moniem Katilo to take over the leadership and
management of the company according to his thoughts and ambition and expand company
activities on both national and international markets .

 Established in 1989 on 6th October city, Nestle Egypt began manufacturing.
Today, Nestle has:
 Four factories ( ice cream, dry goods, chilled and water).
 Nine distribution centers in eight cities, 2200 regular staff.

Imports
• Egypt is a remaining importer of dairy products with most of its imports coming from Australia, New
Zealand and the Netherlands.
• The industry depends also on importing of feed, vaccines, and medicine
• Existing Dutch companies in the Egyptian market :
• Friesland campina (cheese)
• Arla (Milk & butter)- Juhayna
• Vandersterre Holland - Gafman (Milk &cheese)
• Unilac (cheese & Butter)

Exports
 Egypt suffers from several problems with its dairy sector including disease and the cost of imported
feed, vaccines and animal stock.
 Egypt is banned from exporting to the EU due to the Foot & Mouth Disease (FMD) for many years
now.
 Egypt main exports goes to Arab countries and consist of milk, Yoghurt and cheese.
 There is a potential to increase exports, but it requires assurance from the Egyptian government and
the dairy sector about the quality and safety of Egyptian products.

16th Cairo Marketing Club, Animal Health Marketing by Dr. Mahmoud Samy

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16th Cairo Marketing Club, Animal Health Marketing by Dr. Mahmoud Samy