Dairy prices rise in Egypt and Syria as costs increase
Egyptian dairy processors are facing higher expenses for transport and imported production materials. Mohamed El-Damaty, vice-president of the Food Industries Chamber at the Federation of Egyptian Industries, attributed part of the recent price increase to more expensive shipping. Industry reports have also associated higher transportation costs with regional tensions.
El-Damaty said that a prolonged period of such tensions could place additional pressure on factories as they attempt to absorb rising expenses while keeping products affordable. Demand for protein and protein-based goods has contributed to higher prices for some raw materials. Egypt’s processors use imported ingredients and commodities at several stages of production, allowing international price movements to affect manufacturing and retail costs.
Milk powder has recorded one of the sharpest increases. Market data put its price at roughly $2,400-$2,600 per tonne at the start of the year, compared with more than $3,600 per tonne later in the period covered. Vegetable oil, sugar and concentrates have also become more expensive. Some wholesalers have increased cheese stocks as they respond to uncertainty over prices.
Syria’s dairy industry is dealing with a separate energy constraint. Ahmad al-Sawwas, secretary of the Damascus Dairy and Cheese Producers Association, said that diesel is used by about 85% of Syrian dairy businesses. Limited availability and higher prices for the fuel have raised operating costs for processing, refrigeration, transport and related activities.
Energy supplies have faced further pressure since the Baniyas Refinery shut down for a major overhaul. Syria has consequently relied more heavily on imported fuel while international diesel supplies have been tighter. Costlier imports and shipping disruptions have affected the movement of fuel, dairy products and other essential inputs through the supply chain.
At the same time, Syrian dairy businesses are dealing with weaker consumer purchasing power. Higher retail prices can reduce household demand, while processors and producers continue to pay more for production and distribution. Despite these conditions, Syria’s dairy industry has reportedly increased its dairy exports this year.
