Backward integration and Africa are the name of the game now in the food industry

The name of the game for the food industry: Backward integration and exporting to Africa: The food industry, which has been reeling from lower sales and higher costs of imported production inputs since the float of the EGP, has been forced to invest further up the supply chain, says Prime Holdings’ Omneyah El Hamamy. The most recent evidence of this is cheesemaker Obour Land investing in a EGP 105-115 mn dairy facility to offset the higher costs of imported dairy goods, she tells Al Borsa. Juhayna, meanwhile, had already started diversifying into dairy production. Beyond backward integration, food companies have been eying markets in Africa for exports. These included Domty, which launched a branch and distribution center in Rwanda with plans to expand further into Kenya. Edita, the nation’s largest snackfood maker, has also said that it is eyeing expansion markets after signing an agreement to distribute some of its products in Saudi Arabia.