The document summarizes the dairy industry and cheese production in Egypt. It notes that Egypt produces a wide variety of cheeses, including soft, processed, and mozzarella cheeses. Soft cheese production dominates the market. Palm oil accounts for over 20% of ingredients used in cheese production in Egypt, around 240,000 tons per year. The dairy sector is growing to meet rising demand, and vegetable oils like palm oil will continue playing an important role due to their low cost and positive effects on product characteristics.

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Palm Oil Competitive Advantage in Cheese
Production; TheEgyptian Practice
Dr. Reda ABDELGALIL
Technical AffairsManager
ChamberofFood Industries
5 Oct. 2021

2. Introduction1/5
 The dairy industry in Egypt isan important component of food security.
 The growth and development of the dairy industry are closely related to
livestockin anycountry in terms of size andquality.
 It works to provide healthy and safe food for all ages and helps in forming a
human being capable of thinking, working, and producing.
 The adoption of modern scientific methods and advanced technology in the
ways of manufacturing and developing new packaging methods have had a
significant impact on increasing the production and diversification of products
in Egypt during the past few years.

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Egypt produces a wide range of cheese products including soft, processed, and
mozzarella cheeses, Also hard and semi-hard cheeses.
The production of all cheese products has increased in the last decade and this
trend will continue in the coming years in tandem with the huge and growing
population.
Over the years, consumption of cheese has increased rapidly leading to the art
of cheese making into a profitable business.
The cheese production is strong and the pace for exports is even stronger in
the market.
Introduction 2/5

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In Egypt, cheese is locally produced except for few internationalbrands.
Soft cheese is dominated by local manufacturers.
There are more than 1500 public and private dairy products factories in Egypt.
The most important type of cheese produced in Egypt is soft cheese, both
commercial and homemade, makes up about 75 percent of the cheese produced
andconsumed in Egypt.
Cheese is an important part of the Egyptian diet, and many people eat cheese at
least with one meal a day.
Introduction3/5

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 Most cheese is consumed either directly or with bread.
 Annualper capita Consumption of cheese is estimated at around 7 kilograms.
 Soft cheese is the most popular andleast expensive type of cheese available.
 Egyptians alsoare fond of Romano andProcessed cheese.
 Consumption of Cheddar cheese and Mozzarella cheese (both natural and
processed) is raising due to the increased number of fast food (pizza and
hamburger) restaurants.
Introduction4/5

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The balance is spread among hard Romano and processed cheese, the small but
growing quantity of mozzarella cheese, and a very small amount of blue and
cheddar cheese.
Egyptian cheese production is steadily increasingbut stillfallsshort of demand.
Some of The biggest companies in this market are Domty, Obourland, Panda,
President/Lactalis, Rodes, Bel, Brego, Riyadh, Khoshala, Greenfields, and other
modern factories andtraditional labs allover Egypt.
Introduction5/5

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Egypt Import trend of Vegetable Oils
0
200
400
600
800
1000
1200
2016 2017 2018 2019 2020
Soybean oil Palm oil Sunfloweroil Others

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Soybean oil
22%
Palm oil
52%
Sunfloweroil
19%
Others
7%
Soybeanoil Palmoil Sunfloweroil Others
Imported Vegetable Oils share, 2020

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Approximate Amount of Dairy Products Consumption
SourceofStudy Year TotalQuantity
Tones/Year
FAOstatistics 2012 637,250
MarketResearchonDairySectorinEgypt 2015 671,000
ChamberofFoodIndustries 2016 680,000
Currentapproximatequantity 2020 715,000

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Vegetable fats usedin the dairy industry
 Theorigin in the manufacture of dairy products is the presence ofmilk fat.
 Dairy products may be manufactured low-fat orfat-free.
 Reducing orremovingthe fat may beassociated with a change in the organoleptic
properties of the product.
 Milk fat may bereplaced eithercompletely or partially for two reasons:
- Economical.
- Healthy and nutritious.
 To maintain the sensory properties, it is replaced by the addition of vegetable fats.
 Most vegetable oils are usedin the manufacture of dairy products for many reasons (palm
oil and coconut oil).

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Advantages of vegetable fats used in the dairy industry
 Someof them are liquid and some aresolid.
 Contains a high percentage ofunsaturated fats.
 Someof them have health benefits in addition to their nutritional benefits.
 It has a higherdegreeof stability than milk fat, especially the solid ones
(palm - coconut).

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Disadvantages of vegetable fats used in the dairy industry
 It contains a high percentage of long-chain saturated fats.
 Low nutritional capacity comparedtomilk fat.
 Thepresence of the undesirable flavor of some oils, which may accompanythe
final product.

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Egyptian dairy specifications that allow theuse of vegetable fats 1/2
Egyptianlegislationsandstandardsformilkanddairyproducts thatallowthe
replacement ofmilkfatinwholeorinpartwithvegetablefats:
1- Soft cheese with vegetable fats(2005/1867).
2- Processed cheese and individually processed cheese (processed cheese pasta)
with vegetable fats (1132/2013).
3- Milk powder with vegetable fats (1768/2005).
4- Whipping liquid cream with vegetable fats(1600/2005).

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5- Whipping liquid cream powder with vegetable fats (1599/2005).
6- Hydrogenated Oils and Margarine P1 -Vegetable Fat Products (50 /1- 2005).
7- Milkandwater ices(ice cream) P3 - icecream (1185 /3- 2005).
8- Cream andPrepared Creams (154 /2 – 2017)
9- Analog Dried icecream with vegetable fats(8446 - 2021).
10- Analog Mozzarella cheese with vegetable fats (8445 -2021).
Egyptian dairy specifications that allow the use of vegetable fats 2/2

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Palm Oil and Derivatives in Dairy Production 1/2
Thepercentage ofpalmoilusageinDairyProducts asfollows:
25-30 % in white soft cheese.
20-25% in processed cheese.
20-25% in mozzarella cheese.
20 -25% in vegan cheese.
20 -25% Ice cream
25-30% Whipping cream
30-35% Powders likecreamer ,topping ,FFMP

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The usage of palm oil and derivatives in cheese production in Egypt is
around 240,000 tones per year.
Cheese production uses more than 20 percent of palm oil asits ingredient.
Fresh Liquid Raw Milkafter release naturalfat then add palm oil and many
applications depend on quantity.
Palm Oil and Derivatives in Dairy Production 2/2

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Approximate amount of palm oil used in dairy products
Total quantity vegetable oils(palm oil) used in dairy products:
Total palm oil used in the dairy products industry in Egypt is
about 240 thousand tons per year, distributed as follows:
- 130 thousand tons of Soft cheese
- 55 thousand tons of Processed cheese
- 20 thousandtons of Mozzarella cheese
- 20 thousand tons other cheese varieties
- 15 thousand tons other dairy products

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FutureTrends 1/3
Cheese recorded current retail value growth of about 15% and retail volume growth of 10%.
TheGrowthwas theresultofseveralfactorssuchas:
1.Cheeseis popular with Egyptian consumers and is considered essential to local cuisine.
2.Population andhousehold growth arealso helping to fuel demandfor cheese.
3.Consumers remain price-sensitive, especially about essential commodities.
4.However, economic conditions, inflation, and rising production costs have led manufacturers to
absorb priceincreases.
5- Growth isexpectedto behigheroverthe comingyears due to population growth, combined with
the improving economy.

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6- Soft & Processed cheeses made from vegetable oils are expected to continue to drive growth
within the cheese,mainly dueto cheapprice, with a large numberof brands being available.
7-A growing numberof brands are entering the market.
8- Economic conditions affect purchasing habits in Egyptian consumers, with many consumers
opting to buy smaller and cheaperpacks.
9- Many large companies will start producing soft cheese and enter into competition with
current companies.
Future Trends 2/4

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10- In addition, many companies are currently working to increase their
production capacity such as Domty, ObourLand, Rodes,......
11- Many new applications and products
12- Huge local and global Fast-moving consumer goods (FMCG) market.
13- New sectors and businesses without building factories
14- Egypt isa consuming country that is growing exponentially
15- The market in growing and consumption increases
Future Trends 3/4

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Vegetableoilsareusedinthemanufactureofsomedairyproducts forthe
following reasons:
1. cost reduction
2. Improvement in some characteristicsof the product
3. Tastelessand odorless
4. Positive effect on texture and composition
5. Increase in product viscosity
6. The color is brighter and whiter
Conclusion

22. Thank
you