Beyti expands dairy production in Egypt with new US$123M investment

EGYPT – Beyti, an Almarai subsidiary, has recently bolstered its production capacity in Egypt’s thriving dairy market by inaugurating two new dairy production lines, each contributing to a cumulative capacity of 100,000 tons per year. 

The investment, valued at EGP 6 billion (US$123 million), was officially launched on October 17, 2024, at Beyti’s plant in Noubarya, with the ceremony attended by Kamel El-Wazir, Egypt’s Minister of Industry and Trade. 

With this expansion, Beyti increases its total production lines to 28, reinforcing its position as a key player in the country’s dairy sector.

The new facilities are set to enhance local dairy production, particularly cheese, addressing Egypt’s dependency on imports, which have cost the nation around US$1.2 billion between 2014 and 2023. 

The expansion aligns with the increasing demand for dairy products within the country, as the Egyptian milk market is projected to generate revenues of up to US$5.57 billion in 2024, with an average annual growth rate of 8.41% anticipated from 2024 to 2029.

In addition to Beyti’s advancements, another development in Egypt’s dairy sector  is Arla Foods’ recent proposal to acquire a majority stake in the Arabian Food Industries Company, known as Domty. 

This non-binding offer, submitted on October 15, 2024, proposes a purchase price of 31.48 EGP per share, valuing Domty at approximately U$183 million. 

If the acquisition proceeds, it would mark a significant move for Arla, as the company plans to delist Domty from the Egyptian stock exchange, while allowing the current owners, the El Damaty family, to retain a stake and continue operations under CEO Mohamed El Damaty.

Domty is a prominent player in Egypt’s dairy and juice market, employing around 4,000 people across its two production facilities. 

This acquisition aligns with Arla Foods’ strategy to expand its presence in the Middle East and North Africa (MENA) region, which has become its largest commercial area outside Europe.

Kim Villadsen, Arla’s Senior Vice President for MENA, highlighted Egypt’s substantial dairy market and Domty’s strategic fit within Arla’s growth plans.

In 2023, Arla reported €996 million in revenue from the MENA region, reflecting a 3.2% increase from the previous year, driven by strong performances from its Puck brand and foodservice segments. 

However, challenges persist in other African markets, particularly in West Africa, where revenues dropped by 18.8% to €127 million, primarily due to the devaluation of the Nigerian naira.

Subscribe to our food and agriculture industry email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE