The Egyptian-British Chamber of Commerce

1. The Egyptian-British Chamber of Commerce Food Industry in Egypt – Spotlight on Egypt Reading, 18 May 2010 Presented by Mr Taher El Sherif Secretary-General

2. Presentation Topics • Egypt’s Business Environment • Risk Analysis • Trade & Investment • Activity Focus: Edible Oils

3. Business Environment • Socio-demographic factors • 80 million • 1.2 million growth per year • 50-55% of family income spent on food • 12 % inflation 2010 • Food Retail Business • 2nd largest after the textile industry • US$ 9.2bn in 2008 (textile US$14.6bn) • 22% growth per year 2000-2009 • Total food & agricultural imports US$10.9bn in 2008 • Projected Increase 2008/13 • Food consumption: 33% • Consumption per capita: 22.8%

4. Food Consumption Indicators Source: Business Monitor International Q4 2009

5. Risk Analysis

6. MENA Risk Analysis Source: Business Monitor International Q4 2009

7. Risk Analysis Indicators • Egypt ranks 5th for business environment (BE) rating of the Middle East Region • BE rating negatively affected by: • Low GDP per capita • Largest population in the region • Regulatory environment and red tape • Barriers to entry to the market • Lack of adequate processing & distribution facilities

8. Risk Analysis Indicators BE rating positive forecast: • Emerging market • High volume potential • Rise in standard of living • Most dynamic regional growth • Trade agreements • Pro-business government

9. Trade & Investment

10. Trade & Investment Indicators Main suppliers of consumer-ready products to Egypt • US • EU (France, Germany, Italy, Netherlands, Spain, and Greece and Denmark) • China • Thailand Products with good sales potential • Dressings & Sauces • Apples & Pears • Nuts & Dried Fruit • Juices • Salted Snacks, Potato Chips • Ethnic Food Items

11. Trade & Investment Egypt Food Exports & Imports In US$ mln Source: Business Monitor International Q4 2009

12. Trade & Investment Breakdown of Food Imports 2008 Source: USDA Foreign Agricultural Service & CAPMAS

13. Trade & Investment Distribution Channels Number of outlets * 140,000 small grocery shops in 2009 Source: USDA Foreign Agricultural Service & CAPMAS

14. Trade & Investment Distribution Channels Cont’d • 90-95% small grocery shops: 140,000 outlets in 2009 • 5% supermarkets: 554 outlets in 2009 (220 in Cairo) • Hypermarkets: 10 outlets in 2009 • $200 million sales in 2008 • 30-40 more hypermarkets in 5 years • 55% grocery products • 45% non-grocery products • Rising trends • Hypermarkets development • Home delivery service • Fast food chains • Sale of packaged food and ready-made meals • Internet retailing

15. Trade & Investment Packaged Food In US$ mln Source: USDA Foreign Agricultural Service & CAPMAS • Most important canned foods • Fish & Seafood • Meat & Meat Products • Vegetables • Tomatoes • Beans • Canned Fruit

16. Edible Oils

17. Edible Oils World Figures • Edible oil production: 150 million tons • 15% of world edible oil production for bio-fuel • Annual consumption rate of growth 2.5% • Developing countries 2.7% • Developed countries 1.8%

18. Edible Oils Egypt • 1.4% of total world consumption • 2 million ton consumption in 2010 (23 kg per capita annually) Imports • Egypt imports 92% of edible oil consumption • Egypt imports 1 million ton of oil and 600.000 ton of oil seeds per year • Total imports 2009: LE 2bn – forecast imports 2020: LE3.5bn • Egypt imports crude (15%), semi-refined (80%), and refined oil (5%) • 250% increase in edible oil price from 2000-2007

19. Edible Oils Egypt cont’d • Egypt has extraction and refining capacity for 3 million ton of seeds per annum, this covers annual domestic consumption • Egypt currently utilizes 14% of its full capacity Recommendations • No new production lines • Technical assistance to increase cultivated area • Export of seeds and semi-refined oils

20. The Egyptian-British Chamber of Commerce Thank You