🏭 MANUFACTURER OF THE MONTH– Each month, we spotlight a major industrial player shaping Egypt’s manufacturing landscape. Whether homegrown or international, these companies play a crucial role in driving the country’s industrial ambitions.

This month we sat down with Bel Group Plant Director Khaled Attia, the Egyptian arm of leading French dairy group Bel, to discuss the group’s continued success here at home and how they have encouraged some local suppliers to branch out regionally.

A global leader in healthy cheeses and fruit- and plant-based snacks, the group’s journey in Egypt began nearly three decades ago in 1998 and culminated into the occupation of a 29k square meter site in Tenth of Ramadan with 25 cheese production lines including household names such as La Vache Qui Rit, Kiri, Abu El Walad, Regal Picon, and Mini Babybel. Since 2008, the company has injected c. EUR 150 mn into Egypt to bolster its factories and distribution capabilities.

The company sources nearly 90% of its packaging materials by volume — and 50% by value — from the local market. However, primary raw materials like milk and butter are still 90% imported as local quality hasn’t quite yet reached required standards. Bel Egypt has successfully transferred global expertise to local suppliers through a rigorous auditing process that can take up to two years to ensure they meet French standards. This high bar has even enabled some local suppliers to export to Bel factories in other countries, such as Morocco.

Why is full localization difficult to achieve? Take your pick. For one, Egypt lacks standardized milk collection points. Local farms are yet to implement specific nutritional standards for livestock to ensure consistent milk quality and transitioning to 100% local milk requires long-term infrastructure investment.

These challenges, however, might just be windows. Manufacturers in Egypt enjoy a slew of benefits; including relatively low energy costs, abundant skilled labor at competitive prices, a strong local packaging industry that covers 90% of the group’s domestic needs, and — last but not least — a strategic geographic location for exports. Bel Egypt has since been able to turn manufacturing hurdles into possibilities via three pillars:

  • Implementing energy-saving projects to cut costs;
  • Maintaining a three-month buffer of raw materials to absorb supply chain shocks;
  • And introducing affordable products to retain consumers without excessive price hikes.

80% of Bel Egypt’s production is exported to 19 countries led by Saudi Arabia and the GCC. Supported by trade agreements like COMESA and the Greater Arab FreeTrade Area, the company is expanding into West Africa, in addition to new markets such as Syria. Bel Egypt’s export value has reached EUR 1.4 bn over the past 15 years, with plans to increase production to 30k tons — up from 24k today — by 2030, as well as double its market share — currently at 50% for several products.

Tags: