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Transforming the Egyptian dairy market

IGI aims to grow a market for packaged, branded milk in a country where 85% of the milk that’s bought isn’t even pasteurized let alone packaged. Aseptic packs are key.

Sealed with foil lids, bottles emerge from the aseptic filling system in two parallel lanes (left). Colorful shrink-sleeve label
Sealed with foil lids, bottles emerge from the aseptic filling system in two parallel lanes (left). Colorful shrink-sleeve label

Halfway between the historic Egyptian cities of Alexandria and Cairo is a glistening new dairy where some of the world’s most advanced aseptic packaging technology is or soon will be on display. How thoroughly was the facility’s packaging equipment researched?

“We visited nearly 90 plants around the world and conducted research for five years,” says Hesham Sheta, vice chairman of International Group for Investments, one of the largest business conglomerates in Egypt. “The plant is just part of an integrated project. We have 7ꯠ acres of agricultural land surrounding the dairy plant where we plan to operate a dairy farm of 27ꯠ cows that will supply milk to the plant.”

The first liquid products launched by IGI, available since June, were Beyti-brand whole milk aseptically packaged in 250-mL, 1-L, and 1.5-L bottles. Also launched was Spiky-brand flavored milk in 250-mL bottles only. Coextrusion blown in-house, the bottles are white high-density polyethylene/carbon black plus regrind/white HDPE. The carbon black keeps light from attacking the light-sensitive milk. Empty bottle weights are 14, 30, and 40 g. Colorful graphics on shrink-sleeve labels give the bottles real shelf impact.

Shelf life, says Sheta, is technically a year. But the bottles will be coded with a six-month best-if-used-by date.

A key goal of IGI’s bold packaging initiative is to grow the market, says Sheta. The potential is enormous, he adds.

“Some 85 percent of the milk consumed in Egypt is bought fresh and unpasteurized from a milk man on a bicycle or motorcycle or from a local dairy shop,” says Sheta. “The consumer boils it in the home before consuming it. Long term, that’s our market, and it’s huge.”

Capturing that market will require patience. Egypt–with a population of 70 million, and with as many as 18 million in a city like Cairo—is just now developing the kind of socioeconomic infrastructure that is capable of supporting the growth of packaged and branded food and beverage products. More supermarkets would help, and the recent arrival of Carrefour, a well-known French chain, suggests that more supermarkets may well be on the way.

In the meantime, IGI’s real competitor is the aseptically filled boxes that a few dairies in Egypt use for milk. Sheta believes that the advantages a plastic bottle has over a brick pack–cost, reclosability, convenience, and appearance–will quickly make his firm’s Beyti brand milk the preferred shelf-stable brand.

Asbofill technology

Filling at IGI is notable because the firm is one of the first to install an Asbofill aseptic bottle-filling system, developed by GEA. Although GEA is headquartered in Buchen, Germany, the division chiefly responsible for the IGI installation was GEA Tuchenhagen of Ireland. Worth noting is that shortly after the IGI installation, GEA sold its Asbofill technology to Techne (Bologna, Italy).

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