Expectations of a 30% increase in the prices of dairy products in the coming period

Numerous producers of dairy products and cheese expect new product price increases in the markets in the coming period by as much as 30%, in addition to the further instability of the dollar in relation to the Egyptian pound and the unavailability of raw materials for producers. .

The manufacturers called on the government to release the production requirements that are in the ports, while securing dollars to import the requirements that are used in the production process.

It is worth noting that dairy producers import more than 35% of the components of the dairy industry in Egypt, starting from animal feed to the main raw materials and ending with auxiliary raw materials, according to previous statements by Eng. Abdel Moneim Katil, head of the dairy department in Damietta.

In this context, Mohamed El-Tahan, chairman of the Board of Directors of the company for dairy products and cheeses “Al-Tahan”, said that most of the feed for cows is imported from abroad, and due to the change in the exchange rate of the dollar in relation to the Egyptian pound, the producers were forced raise the prices of dairy products during the current period in an attempt to save some of the monthly costs for employees.

In exclusive statements to Al-Mal, Al-Tahan added that the high price of raw materials for factory owners is the main reason for the rise in the prices of dairy products of all kinds, pointing out that the price of a kilogram of cow’s milk last June was 6 pounds, and today it is 12 pounds. 100% increase.

He pointed out that the price of buffalo milk last June was 12 pounds, and today its price has jumped from 19 to 20 pounds, pointing out that this increase is a consequence of the increase in the price of animal feed, but also the exposure of some farms to diseases such as foot-and-mouth disease and others , which caused low productivity of dairy farms.

Al-Tahhan added that there are some farms that have been liquidated due to the inability to meet the cost of feed in exchange for the price of milk, which has led to a drop in the supply of raw milk, stressing that this drop leads to a further rise in the prices of raw milk and its products.

He emphasized that the price increase gradually increased from June last year to the rate of price increase, pointing out that due to the dollar crisis and the unavailability of raw materials, there will still be an increase in the price of dairy products, for example: a kilogram of “Flamenic” cheese has reached 360. How is the difference between domestic and imported products before 6 months ago it was about 30 pounds, today it is about 100 pounds.

Al-Tahan expects the price of dairy products to rise again in the coming period by about 30%, pointing out that the movement of buying and selling has decreased, and the consumer has started to limit the consumption of dairy products by 50% in the current period.

In this regard, Saeed Badr, Chairman of the Board of Directors of the dairy company “Atayeb Al-Badr”, confirmed that the rise in the prices of dairy products and cheeses is caused by the instability of the dollar price, in addition to the unavailability of raw materials.

In an exclusive statement to Al-Mal, Badr added that the rise in the prices of animal feed, raw materials and the dollar caused the growth of dairy products in the last three months and by 100 percent so far, expecting a rise in prices. of dairy products in the coming period by 25 to 30%.

When it comes to buying and selling movement with currently high prices, Badr pointed out that there is a significant drop in buying and selling movement due to the weak purchasing power of dairy products, pointing out that the rise in raw material prices affected the dairy industry by 35%. up to 40%.

Badr emphasized that the only solution for the stability of the industry is the stabilization of the dollar price on the domestic market, pointing out that the producers demanded from the Prime Minister and the government to secure raw materials and release shipments in the ports.

It should be noted that the prices of milk and natural cheeses on the market have increased by about 30 percent in the past month and a half, because the price of a kilogram of cow’s milk, from which cheese is made, was between 10 and 11 pounds. compared to 7.5 and 8 pounds last October, according to previous statements by “Rami Al-Menoufy.” Secretary of the Dairy Department of the Alexandria Chamber.

The price of natural white cheese is currently between 70 and 80 pounds, compared to 50 to 60 before the price increase. Roma cheese prices have also risen to between 125 and 180 pounds, and the price varies from governor to governor.

For his part, Ahmed Omar Abdel Latif Abu Haif, chairman of the Board of Directors of the dairy company “Kholood Land”, said that the reason for the increase in the prices of dairy products is the increase in the value of animal feed on the local market.

He pointed out that the solution to calming the crisis of high animal feed is the use of flour as a substitute for it, along with the cultivation of yellow corn on large areas under the supervision of the Ministry of Agriculture.

In a special statement to Al-Mal, Abu Haif added that the prices of milk and milk products have increased by 70 percent, pointing out that last year the price of a kilogram of cow’s milk reached 5 pounds, and today its price ranges from 11 to 12 pounds, and the price “bison” reached 18 to 19 pounds.

He pointed out that there is an ongoing decline in the production of milk and milk products, which is why producers are struggling to secure the necessary quantities so that the factories can produce the necessary quantities.

Abu Haif emphasized that the solution to this crisis is to reduce the prices of animal feed and provide an alternative for them by the government and the Ministry of Agriculture, in addition to expanding the import of cows imported from abroad to increase milk production in the necessary quantities. for producers and a breakthrough that contributes to the fall in prices of dairy products of all kinds.

The government wants to develop the milk and milk products sector, starting with increasing the rate of milk production from cattle, because this has a positive economic effect on citizens and the economy.

The government directed the creation of a project for milk collection centers, with the aim of providing healthy and safe food for citizens, because 826 milk collection centers have been counted at the level of the Republic, and their needs have been determined.

The Ministry of Agriculture is seeking to implement President El-Sisi’s mandate to allocate an additional EGP 10 billion for livestock financing at favorable interest rates.

The Ministry wants to reactivate the role of the young breeder and train him technically and scientifically to obtain varieties with a higher yield than domestic varieties.

Badr: The high price of raw materials has greatly affected the sector

Abu Haif: Jumps in feed are the main reason… and alternatives must be found