{"id":358942,"date":"2023-10-19T22:06:30","date_gmt":"2023-10-20T01:06:30","guid":{"rendered":"https:\/\/anba.com.br\/egypt-has-growing-demand-for-dairy-products\/"},"modified":"2024-03-22T17:03:22","modified_gmt":"2024-03-22T20:03:22","slug":"egypt-has-growing-demand-for-dairy-products","status":"publish","type":"post","link":"https:\/\/anba.com.br\/en\/egypt-has-growing-demand-for-dairy-products\/","title":{"rendered":"Egypt has growing demand for dairy products"},"content":{"rendered":"

S\u00e3o Paulo \u2013 The growing demand for dairy products<\/strong> in Egypt could be an opportunity for Brazilian suppliers in the industry. This market was opened to Brazil in 2019, but sales are still occasional. However, a study by the Brazilian Trade and Investment Promotion Agency (ApexBrasil) shows that dairy consumption in the Arab country is promising, as are business prospects in the area.<\/p>\n

The survey, made public in April, was a partnership between ApexBrasil and Brazil\u2019s Ministry of Agriculture and Livestock, Ministry of Foreign Affairs, and the Embassy of Brazil in Cairo.<\/p>\n

It was carried out before tariffs on imports of different food products were dropped last week by an Egyptian government decree<\/strong>. Dairy products from all countries will now have zero import tariffs<\/strong> for six months.<\/p>\n

The agricultural attach\u00e9 of the Embassy of Brazil in Cairo, Rafael Mohana, spoke to ANBA about the topic and explained which products could benefit from the policy.<\/p>\n

Brazil already faces intense competition from traditional suppliers to Egypt, such as European Union countries, New Zealand, and the United States. \u201cWith the prime minister\u2019s decree, theoretically, any country able to export dairy products to Egypt could benefit from the tariff exemption. Also, this only applies to certain dairy products stated in the decree; not all products benefited from the resolution,\u201d Mohana told ANBA.<\/p>\n

Read more: Egypt waives tariffs on imports of poultry, other foods<\/a><\/p>\n

Market<\/strong><\/p>\n

According to the ApexBrasil study, Egypt is a significant consumer of dairy products; powdered milk<\/strong> is the main import of its local industry. Butter<\/strong> imports are also a highlight and serve the industry and end consumers. Egypt also imports a sizeable volume of cheese<\/strong>.<\/p>\n

\u201cIn 2022, Egypt imported USD 690 million worth of dairy products, according to Trade Map. Revenue was 11.3% higher than in 2021, revealing a growing demand for these products by Egyptian consumers,\u201d said Mohana. Trade Map is a market analysis tool.<\/p>\n

Brazil-Egypt<\/strong><\/p>\n

The Egyptian market opened to Brazilian<\/strong> dairy products in October 2019. In 2022, the South American country exported USD 315,000<\/strong> worth of dairy products to Egypt. \u201cIn 2021, it exported USD 161,000, which indicates a market that is still little explored by Brazilian companies. Milk cream<\/strong> represents 99% of Brazil\u2019s dairy exports to Egypt in recent years, according to Agrostat,\u201d said the attach\u00e9. Agrostat is the statistics platform of the Ministry of Agriculture and Livestock of Brazil.<\/p>\n

\u201cRegarding the decree that waived tariffs for some products, concerning dairy products, Brazilian exporters of cream<\/strong> could benefit<\/strong>, since for the HS4 code 0401 and its subcategories, according to the current calendar of tariff reduction (category C), a tariff of 1.25% was still applied to these Brazilian products, which will be reduced to zero<\/strong> due to prime minister Mustafa Madbouly\u2019s decree, for the next six months,\u201d explained Mohana.<\/p>\n

In the case of butter<\/strong>, the attach\u00e9 informed there would be no additional benefits with the resolution, as the product and its subcategories are already exempt<\/strong> from tariffs.<\/p>\n

\u201cIn the case of cheese<\/strong>, the decree exempted tariffs only for products under HS6 code 040610 (Fresh [unripened or uncured] cheese, including whey cheese and curd<\/strong>), which Brazil does not yet export to Egypt, but which, in the event of a Brazilian shipment, would be benefited from import tariff waiver. Today, according to the tariff reduction schedule (category C), these products are subject to a 2.5% tariff,\u201d he said.<\/p>\n

Consumption<\/strong><\/p>\n

Mohana stated the determining factor for purchasing dairy products on the Egyptian market is price<\/strong>, given the country\u2019s economic situation. \u201cMost Egyptians are looking for affordable alternatives, as some products have become beyond their purchasing reach. High-income consumers are the exception to this trend and seek nutritious and healthy foods, preferring imported products, which are typically more expensive,\u201d he informed.<\/p>\n

According to the attach\u00e9, products with potential<\/strong> for selling in Egypt are powdered milk, butter, and cheese<\/strong>. \u201cHowever, Brazilian companies will face strong competitors in the market: New Zealand, European Union countries, and the United States, which have long been Egyptian suppliers and have a good reputation,\u201d he said. These products, said Mohana, are used as raw inputs by Egyptian industries to produce ready-to-eat processed foods.<\/p>\n

Free trade agreement<\/strong><\/p>\n

Brazilian products already have a competitive edge thanks to the Mercosur-Egypt free trade agreement<\/strong>. \u201cHowever, European Union countries and the United States also have free trade agreements with the country, which makes them equally competitive in this market given the exemption of import tariffs,\u201d informed the attach\u00e9.<\/p>\n

Butter and powdered milk<\/strong> from Brazil are exempt from tariffs since the Mercosur-Egypt agreement came into force in 2017. \u201cOther products that have already benefited from the tariff reduction schedule and are currently exempt are grated or powdered cheese<\/strong> and concentrated milk<\/strong>,\u201d he said.<\/p>\n

Read ApexBrasil\u2019s full study on dairy products in Egypt<\/a>.<\/p>\n

The remaining categories of dairy products are expected to reach zero tariffs following the Mercosur-Egypt free trade agreement calendar, to be concluded in September 2026.<\/p>\n

Translated by El\u00fasio Brasileiro<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Brazilian suppliers could benefit from the Egyptian government\u2019s waiver of tariffs for some dairy products, in addition to those already exempted by the Mercosur-Egypt free trade agreement. Egypt opened its market to Brazilian dairy in 2019. Consumption is increasing.<\/p>\n","protected":false},"author":2305,"featured_media":356861,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[102,107],"tags":[421,6394,46091,46092,6924,46093,46094,46085,22661,46096,46086,44045,2607,46087,46088,8643,477,3202,46089,29660,38519,46090,40363,40366,46102],"class_list":{"0":"post-358942","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-agribusiness","8":"category-business-opportunities","9":"tag-egypt","10":"tag-agricultural-attache","11":"tag-brazilian-embassy-in-cairo","12":"tag-butter","13":"tag-cheese","14":"tag-cheese-curds","15":"tag-cream","16":"tag-creme-de-leite","17":"tag-dairy-products","18":"tag-decree","19":"tag-decreto","20":"tag-embaixada-do-brasil-no-cairo-en","21":"tag-free-trade-agreement","22":"tag-imposto-zero","23":"tag-manteiga","24":"tag-mercosul-egito","25":"tag-mercosur-egypt","26":"tag-milk","27":"tag-produtos-lacteos","28":"tag-queijo-en","29":"tag-rafael-mohana-en","30":"tag-requeijao","31":"tag-tarifa-zero-en","32":"tag-zero-tariff","33":"tag-zero-tax"},"wps_subtitle":"Brazilian suppliers could benefit from the Egyptian government\u2019s waiver of tariffs for some dairy products, in addition to those already exempted by the Mercosur-Egypt free trade agreement. Egypt opened its market to Brazilian dairy in 2019. Consumption is increasing.","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/358942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/2305"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=358942"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/358942\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media\/356861"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=358942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=358942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=358942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}