""

Required Report - public distribution

**Date:** 11/6/2003

**GAIN Report Number:** EG3023

**Egypt**

**Exporter Guide**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)Asif J. Chaudhry

US Embassy

**Prepared by:**

Ali Abdi & Manal El Masry

**Report Highlights: NO UPDATE EXCEPT FOR SECTION V AND APPENDIX I**

Egypt has a population of about 68 million with an annual growth of 2.03
percent. Egyptian consumers are increasingly becoming aware of the
quality and variety of imported consumer-oriented products. However,
Egypt still maintains many trade barriers including abrupt rule changes,
non-transparent regulations and stringent product labeling requirements.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Cairo \[EG1\]

\[EG\]

Table of Contents

SECTION I: MARKET OVERVIEW

[SECTION II: EXPORTER BUSINESS TIPS
5](#section-ii-exporter-business-tips)

[SECTION III: MARKET SECTOR STRUCTURE AND TRENDS
8](#section-iii-market-sector-structure-and-trends)

[SECTION IV: BEST HIGH VALUE PRODUCT PROSPECTS
10](#section-iv-best-high-value-product-prospects)

[SECTION V: KEY CONTACTS AND FURTHER INFORMATION
10](#section-v-key-contacts-and-further-information)

[APPENDIX I: KEY TRADE & DEMOGRAPHIC INFORMATION (2002)
12](#appendix-i-key-trade-demographic-information-2002)

[APPENDIX II: CONSUMER FOOD & EDIBLE FISHERY PRODUCT IMPORTS (\$
million)
13](#appendix-ii-consumer-food-edible-fishery-product-imports-million)

[APPENDIX III: SUPPLIERS OF CONSUMER FOODS AND EDIBLE FISHERY PRODUCTS
14](#appendix-iii-suppliers-of-consumer-foods-and-edible-fishery-products)

SECTION I: MARKET OVERVIEW

1.1 Economic Situation

On January 28, 2003, the Government of Egypt reversed its long-standing
policy of fixed exchange rate system and announced that is currency
would float. This is a major economic reform step for the government
since foreign exchange rates will now be determined by market conditions
rather than being set by the government. If implemented as stated, the
new exchange rate mechanism is expected to enhance confidence in the
Egyptian economy and make Egyptian exports more competitive. The
parallel market is still active although the gap between the bank rate
and the parallel market rate has narrowed in recent days. The price of
many food and feed items particularly imports, increased approximately
20 to 30 percent in reaction to the devaluation of the pound. Many
importers are reporting that foreign exchange availability is tight in
the banking system and they are unable to open letters of credit in
banks. Importers also note that they are unable to price their products
because of frequent fluctuations of the Egyptian Pound. As a result,
many businesses have decided to monitor the market for a while before
making new purchasing plans.

In an attempt to calm worried consumers, the government announced March
10, 2003 that it would suspend the purchase of \"non-essential\" imports
for a period of three months. Goods imported by the private sector are
not affected by this policy. According to the announcement, the
government would continue to import basic food commodities such as
wheat, corn, sugar, vegetable oil and other \"strategic commodities.\"
Moreover, the announcement said that the government plans to \"fix\" the
price of 21 commodities produced by the private sector companies
including sugar, flour, vegetable oil, soap, macaroni, cheese, tea and
meat. However, most of the commodities mentioned in this announcement
are in the hands of private trade not the government. Therefore, this
measure is not expected to affect the price of most commodities.

In an attempt to reform its import and export regime, the Government of
Egypt took a significant step to streamline the process of import
inspection by issuing a Presidential Decree No. 106 of 2000 which
centralized the process of inspection and certification of imported
goods. In the past, there were five government entities involved in the
import clearance process. With this decree, inspection will only be done
through the Central Authority for Import and Export Control Authority
(GOEIC) of the Ministry of Foreign Trade.

The European Union and Egypt signed a partnership agreement on June 24,
2001 whereby import tariffs on most products, including agricultural
products will be cut substantially, or eliminated over the next 12-15
years. The Agreement is expected to be implemented in the next 12-15
months. Both Egyptian and European exporters of various agricultural
commodities will gain substantial benefits from the Agreement. The EU 15
countries' total exports to Egypt increased from 5.8 billion Euros in
1996 to a record level of 7.8 billion Euros in 2000. When implemented,
the EU-Egypt Partnership Agreement may disadvantage some U.S.
agricultural products in the market, particularly value added products.

1.2 Demographic Developments

Egypt has a population of about 68 million with an annual growth rate of
2.02 percent. The official unemployment rate is 9 percent, but many in
the private sector estimate the unemployment rate to be about 20
percent.

1.3 Consumer Buying & Eating Habits

Egyptian consumers are increasingly becoming aware of the quality and
variety of consumer-oriented products. As a result, Egyptian consumers'
buying habits are changing dramatically. In the past, most Egyptian
consumers used to buy products, such as meat, fresh fruits, and
vegetables from small neighborhood shops. However, with the increasing
number of supermarkets and hypermarkets in Cairo and Alexandria and
services offered in one place, many middle to high-income consumers have
started to purchase most of their requirements from supermarkets. Also,
with changing eating habits, expansion of fast food chains, local
restaurants and resorts, there is a good potential for imported
products.

1.4 The Market for U.S. Products

In 2002, total U.S. imports for consumer-oriented products totaled \$47
million compared to \$50.5 million in 2001. This decrease is attributed
to the current political situation in the Middle East and the
devaluation of the Egyptian pound which lost 22 percent of its value
against the dollar in the last 3 months. Major importers are reporting a
decrease of 30 percent in sales as a result of these conditions. Due to
negative sentiments about the war in Iraq and the Palestinian-Israeli
conflict, the climate for marketing American consumer-ready food
products in Egypt is difficult. Some importers who used to bring in
mostly U.S. consumer-oriented products are beginning to look for
alternative supply channels particularly in the EU. Others who have
invested much effort in promoting American brands are hoping that the
situation will improve soon.

The U.S. and European countries, mainly France, Spain, Italy, Germany,
Greece, Holland, Denmark and South Africa are dominant suppliers of
consumer-ready products to Egypt.

Egypt maintains many trade barriers including abrupt rule changes,
non-transparent regulations and stringent product labeling requirements.
Egypt frequently applies reference prices, for tariff purposes, on a
number of products as well as extremely high tariffs for a few products,
such as poultry and alcohol. Following is a summary of the advantages
and challenges that face U.S. agricultural exporters in Egypt.

+-----------------------------------+-----------------------------------+
| **ADVANTAGES**                    | **CHALLENGES**                    |
+-----------------------------------+-----------------------------------+
| With the growing number and       | The EU-Egypt Partnership          |
| expansion of supermarkets chains, | Agreement may disadvantage some   |
| hypermarkets and the presence of  | U.S. agricultural products in the |
| international chains, such as     | market, particularly value added  |
| \"Carrefour\" French,             | products unless positive trade    |
| \"Shoprite\" South African and    | policy changes can be made        |
| \"Metro\" Germany, the market     | between the U.S. and Egypt in the |
| opportunities for new-to-market   | future.                           |
| products will increase.           |                                   |
|                                   | Egyptian import regulations and   |
|                                   | labeling requirements are too     |
|                                   | stringent and often act as        |
|                                   | barriers to trade.                |
+-----------------------------------+-----------------------------------+
| There has been tremendous growth  | Many importers report there is a  |
| of hotels and restaurants that    | lack of U.S. supplier's interest  |
| cater to tourists.                | in the Egyptian market.           |
+-----------------------------------+-----------------------------------+
| U.S. products are perceived as    | Political conditions in the       |
| \"high quality products.\"        | region are not conclusive for     |
|                                   | marketing activities that         |
|                                   | highlight U.S. products           |
+-----------------------------------+-----------------------------------+

# 

# SECTION II: EXPORTER BUSINESS TIPS

Local Customs (New Decree on Customs Valuation)

On July 25, 2001, the Government of Egypt (GOE) issued Ministerial
Decree 765 on the determination of the value of good for customs
purposes in an attempt to comply with its WTO obligations under the
Customs Valuation Agreement. This followed a successful one-year
petition to buy time (from July 2000 to July 2001) in order to comply
with the WTO rules. This Ministerial Decree updated customs law number
66 of 1963 to reflect implementation of the WTO Customs Valuation
Agreement.

Chapter Two, Article One, Paragraph One, states that " The value for
customs purposes shall be the actual value of the deal, or the price
actually paid or to be paid as indicated in the purchase contracts, the
invoices, and other documents concerning the deal, providing they shall
be approved or accepted by the Customs Department." However, independent
experts who studied the new law and compared it to the WTO Valuation
Agreement, found that Decree 765 fell short in two important areas: the
definition of "actual value" of imported goods and the Customs
Authority's continued right to reject the importer's declared price
based on its variance from similar, or identical goods.

The new law states, "if the Customs Department is not convinced of the
validity of the value as declared, even after submission of the
additional documents, Customs may refuse to accept the value of the
deal. This provides Customs with a basis for continuing to use a
reference price or minimum valuation system, which is prohibited under
the WTO. Some importers report that there is nothing new in the way
Customs does its business following the implementation of the new law.
Reportedly, the Customs Department still uses reference prices for
valuation purposes. When there is a dispute between the Customs
Department and importers on the value of the commodity, importers have a
right to go arbitration, but most importers prefer to pay a "settlement
price", which is higher than the declared price in order to avoid
associated delays and costs. In sum, it appears that the use of
reference prices is still in use despite the government's attempt to
comply with the WTO rules on customs valuation. Reference prices are
frequently applied to imports of a wide range of products, including
meat, apples, nuts, poultry, sugar and other products.

Consumer Taste and Preference

The food service industry is expanding and consumers' habits are
changing. Dining outside the home is becoming more popular. The number
of working women outside the home is growing, and the number of dual
income families is increasing. Restaurants, hotels and resorts are
expanding not only in Cairo but also in the Red Sea Coast and Sinai.
American fast-food chains dominate the market. At present, thirty
American fast food franchisors, such as A&W, Chili's, Fuddruckers, Hard
Rock Café, KFC, Kenny Rogers, Little Caesars, Pizza Hut, McDonalds, and
TGI Fridays operate in Egypt.

Consumers in Cairo, Alexandria, and the Red Sea area are more aware of
international trends in food. Middle and upper-middle income shoppers
are drawn to supermarket chains.

Food Standards and Regulations

The Egyptian Organization for Standardization and Quality Control (EOS)
in the Ministry of Industry has sole responsibility for establishing,
adopting and publishing food standards and codes of practice. If no
mandatory Egyptian standard exist, the following could be applied:
Egyptian product standards; International Standards (ISO/IEC); European
Standards (EN); American Standards (ANS); Japanese Standards; and Codex
Standards. Egyptian authorities are more strict in enforcing product
standards on imported food products than on locally produced food
products.

The Ministry of Health issued a new Decree 73 of 2001 regarding colors
admissible for use on packaging materials. It is mandatory that colors
used on internal and external packaging must not be harmful to human
health. The decree also confirmed that all food wrappings should be
suitable for the product and usage. The package must NOT produce toxic
substances or any harmful compounds that may lead to coloration of
contents or cause damage to the foodstuff. Ink is prohibited to be used
on the internal surface or packages. However, external surfaces may be
painted with safe and durable inks according to handling circumstances,
provided that such materials are approved for use and that the painting
material does not permeate to the foodstuff. For products, such as
butter and ice cream, it is imperative to isolate the colored layer from
the external surface in a manner that ensures non-penetration of the
color to the foodstuff.

In February 2000, Presidential Decree No. 106 was issued to centralize
the process of inspection and certification of imported goods under the
General Organization for Export and Import Control (GOEIC), Ministry of
Foreign Trade. In the past, there were five government entities involved
in the import clearance process. With the new decree, inspection will
only be done through GOEIC. However, there are representatives from
other ministries such as, the Ministry of Agriculture and the Ministry
of Health who also monitor the inspection process. Release Certificates
are not issued by GOEIC unless all authorities approve the consignment.

Egypt requires restrictive labeling for imports of food products. With
the exception of the production and expiration dates, information only
in English (or other foreign language) is not allowed. Dates are
accepted in English, but the word \"Production\" and \"Expiry\" MUST be
written in Arabic. Arabic language is mandatory. Labels can be printed
on the package or be of a permanent adhesive type. Products cannot show
more than one date of manufacture or expiration on the package. For
example, goods have been rejected if the inside package has a different
date than the outside carton. Information on the label cannot be erased,
scratched, or altered in any way. Requirements are more restrictive for
meat and poultry products. In November 1997, the Ministry of Trade
issued Decree No. 465 which calls for the insertion of labels inside the
packaging of imported products, including information of the name and
address of each importer in Arabic. This requirement necessitates
separate production procedures for products destined for the Egyptian
market which increases production costs and limit marketing options for
U.S. exporters. This also leads to higher prices for Egyptian consumers.

Amending information on the label is permitted, but amendments must be
done inside the customs area. Amendments can be done for some types of
information by a sticker. However, if dates need to be amended, it must
be printed on the package (outer and inner package). Amended stickers
for dates are not acceptable.

Import regulations are routinely developed and enforced without prior
notice. This makes Egypt a very risky place to do business. Also, Egypt
has mandatory standards for a number of quality characteristics, moving
beyond restrictions imposed for health and safety reasons. Many of these
quality characteristics should be voluntary industry standards rather
than mandatory government standards. These standards such as fat content
in meat or brix on fruit juice are unnecessary and their existence
coupled with arbitrary enforcement lends credence to Egypt's reputation
as one of the most difficult countries in the world in which to do
business. This excessive regulation is unfair to trading partners,
raises costs to Egyptian consumers, and discourages investment in Egypt.

Import regulations require that foodstuffs be packed in containers,
suitable to the nature and type of commodity, to be clean, sound and
free of bad smell, to be kept in good condition. Also, the consignment
should be symmetric in weight and package. The following information
should be written on each package in Arabic not liable to deletion:

> \- Name of producer and trademark; if any.
>
> \- Country of origin.
>
> \- Type of product and grade.

\- Name and address of importer.

> \- Production and expiration date.
>
> \- Product use instructions (optional).
>
> \- Product ingredients.
>
> \- Storage instructions or temperature.
>
> \- Net weight.
>
> \- Gross weight and total number of the packages per case or carton.
>
> \- If the product contains preservatives, the percentage of each
> preservative should be indicated.
>
> \- If the product is meat or poultry, the following statement must
> appear: \"Slaughtered according to the Islamic ritual\" or \"halal
> slaughtered.\"

Egyptian shelf-life requirements for food products differ in many
respects from the standards used by other countries. \"Best-Used-By\"
dates are not acceptable in Egypt. Egyptian shelf-life standards ignore
quality difference between producers and are often established without
scientific bases. For more information on Egypt's import requirements,
please refer to FAS/Cairo, Food and Agricultural Import Regulations and
Standards (FAIRS) / EG 2026 available on the FAS web site
[www.fas.usda.gov]{.underline}.

General Tips to Exporters

-   Egyptian importers often complain that U.S. suppliers are not
    informed about local market conditions and requirements. U.S.
    exporters should closely consult with importers to ensure that
    Egyptian import requirements are met in order to avoid unnecessary
    delays at customs.

-   Consider visiting Egypt when the political environment in the region
    improves. U.S. suppliers who are interested in doing business in
    Egypt are encouraged to visit Egypt in order to better understand
    the potentiality of the market and establish relationships with
    potential clients.

-   Production and expiry dates are mandatory and Arabic/English labels
    or stickers are required. A thorough report on Egypt's Food and
    Agricultural import Regulations and Standards (FAIRS) Report is
    accessible via the FAS On-Line web site: [www.fas.usda.gov. (Attache
    Reports)]{.underline}

-   Encourage and assist your local agent or distributor. Egyptian
    importers can promote your products. They can use various tools,
    such as free samples, advertising, in-store displays, and price
    discounts during promotional activities.

-   Communicate with potential importers of your product. Contact
    FAS/Cairo to obtain a list of local importers; Tel: 011 (202)
    797-2388 / 2389; Fax: 011 (202) 796-3989; E-mail:
    [AgCairo@fas.usda.gov.]{.underline}

-   Advertisements. Television advertising is expensive. However,
    advertisements in monthly magazines are effective when targeting a
    specific audience. Also, there are specific magazines for hotels and
    restaurants.

-   Consider participating in FAS Cairo organized or sponsored events.
    FAS/Cairo normally organizes a variety of market development
    activities including in-store promotions, trade shows, cooking
    demonstrations in cooperation with Egyptian importers, major
    supermarkets, and hotels and restaurants institutions. For more
    information, please contact FAS/Cairo on how to participate.

-   Be ready to accept small orders than normal or share a shipment with
    other suppliers. Local importers tend to purchase small quantities
    to introduce new-to-market products until they become confident that
    the product has market potential.

## 

## SECTION III: MARKET SECTOR STRUCTURE AND TRENDS

1.  RETAIL FOOD SECTOR

Egyptian consumers have increasing demand for quality and variety.
Demand for consumer ready products is trending upward due to the
expansion of local supermarket chains and multi-national firms investing
in Egypt, such as \"Carrefour\" French and \"Shoprite\" South Africa.
This is attributed to the fact that Egyptian buying habits are changing
dramatically. Middle to high income consumers have started to purchase
most of their requirements from supermarkets as opposed to local
neighborhood stores.

In the retail food sector, products are imported by an importer or an
agent who may also be a wholesaler and/or a distributor. There are three
supermarket chains, which import food products directly. The market for
consumer-ready food products is concentrated in Cairo (16 million) and
Alexandria (5 million). However, \"Metro\" the largest local supermarket
chain will soon expand into the Red Sea and other governorates.

Following is the number of Outlets in Egypt:

+------------+-----------+--------+---------+-------+-------+--------+
| Number of  |           |        |         |       |       |        |
| Outlets    |           |        |         |       |       |        |
| (          |           |        |         |       |       |        |
| 2000/2001) |           |        |         |       |       |        |
+============+===========+========+=========+=======+=======+========+
|            | **Whol    | **Su   | **Groc  | **Kio | **    | **T    |
|            | esalers** | per-** | eries** | sks** | Gas** | otal** |
|            |           |        |         |       |       |        |
|            |           | **mar  |         |       | **    |        |
|            |           | kets** |         |       | Stati |        |
|            |           |        |         |       | ons** |        |
+------------+-----------+--------+---------+-------+-------+--------+
| **Cairo +  | 2123      | 119    | 33623   | 6401  | 274   | **4    |
| Giza**     |           |        |         |       |       | 2540** |
+------------+-----------+--------+---------+-------+-------+--------+
| **Al       | 450       | 25     | 7753    | 2327  | 110   | **1    |
| exandria** |           |        |         |       |       | 0665** |
+------------+-----------+--------+---------+-------+-------+--------+
| **Total    | 1917      | 4      | 23143   | 5834  | 336   | **3    |
| Delta**    |           |        |         |       |       | 1234** |
+------------+-----------+--------+---------+-------+-------+--------+
| **Grand    | **4490**  | *      | **      | **14  | **    | **8    |
| Total**    |           | *148** | 64519** | 562** | 720** | 4439** |
+------------+-----------+--------+---------+-------+-------+--------+

For more detailed description of Egypt's retail food market, please
refer to FAS/Cairo global Agriculture Information Network (GAIN) Report
No. EG1032 available via FAS web site [www.fas.usda.gov]{.underline}

2\. H.R.I. SECTOR

The food service industry is expanding, and consumers' habits are
changing. Dining outside the home is becoming popular: The number of
working women outside the home is growing, and the number of dual income
families is increasing. Restaurants, hotels and resorts are expanding
not only in Cairo but also in Alexandria and the Red Sea Coast and
Sinai. For example, total number of hotels in Sharm El Sheikh (Red Sea
Resort) is currently 169 hotels. The Egyptian Government continues to
encourage investment in hotels, and tourist resorts. Hotels are price
sensitive food buyers. Imports from Europe, New Zealand, and Canada
account for 91 percent of the market compared to 9 percent from the U.S.
Among products imported for hotels are high quality beef, seafood
(lobsters & soft crabs), sauces, canned vegetables & fruits, Tex Mex
products and beef liver. According to a major hotel caterer, volume of
meat imports may increase by 300 percent if government requirements are
simplified and the seven percent fat content requirement on beef imports
is abolished.

American style food chains are becoming increasingly popular in Egypt,
providing consumers with a wide range of choices. The current political
climate in the region and devaluation of the pound is having a negative
impact on the economy particularly on imports. Some food franchisees are
reporting a decrease of 30 percent in revenue as a result of these
conditions.

3\. FOOD PROCESSING

The processed food sector is one of the key economic sectors in Egypt.
Its contribution to value added, employment and exports is high and
increasing, but most food processors depend on local products as inputs
rather than imports. The Arab countries, particularly the Gulf States
are traditional export markets of Egypt's canned and frozen food
products. European Union countries and to a lower extent the U.S. and
Asian markets are also potential markets for Egyptian processed food
products. About 25 percent of the processing sector is located in Cairo
and Alexandria with 40 percent of the total manpower employed.

Following are some highlights on the different product sectors:

-   Dairy product facilities represent about 9 percent of the overall
    food sector.

-   The production of sweets and confectionery products depends heavily
    on imported sugar, cocoa, beans, oils, fats, coconut milk, nuts and
    dried fruits.

-   Fruits and vegetables constitute a substantial resource base for the
    production of a wide range of beverages although the production of
    several varieties of soft drinks is based on imported ingredients.
    Egyptian production of beverages includes mineral and bottled
    waters, soft drinks, and the processing and packaging of imported
    tea and coffee as well as alcoholic products such as beer, wine
    brandy, rum and ouzo.

**Distribution System for Processed Food Products in the Market**

![](media/image2.wmf){width="1.3756944444444446in"
height="0.2708333333333333in"}![](media/image3.wmf){width="1.4520833333333334in"
height="0.31319444444444444in"}

## Manufacturers

↓

Wholesalers → Retailers ← Agents

**Distribution System for Imported Products in the Market**

## Importers

↓

Wholesalers → Retailers ← Distributors

## 

# SECTION IV: BEST HIGH VALUE PRODUCT PROSPECTS

Dressings, sauces, and seasonings

Spices

Apples

Nuts and dried fruit

Mexican food items

High quality beef (provided that labeling & fat content issues are
resolved)

Cheese

Speciality flour

Seafood (lobsters & soft Crabs)

Chocolates (as raw material for bakery and pastry)

## 

## SECTION V: KEY CONTACTS AND FURTHER INFORMATION

U.S. Mailing Address: Office of Agricultural Affairs

Unit 64900, Box 22

APO AE 09839-4900

Local Mailing Address: 8 Kamal El Din Salah Street

Garden City

Cairo, Egypt

Tel: 01-1 (202) 797-2388 / 2389

Fax: 01-1 (202) 796-3989

E-mail: [AgCairo@fas.usda.gov]{.underline}

Internet Homepage: [www.usembassy.egnet.net]{.underline}

*PERTINENT GOVERNMENT FOOD IMPORT CONTACTS*

# MINISTRY OF AGRICULTURE

Address: 71 Wezaret El Zeraa Street

Dokki, Cairo, Egypt

Contact: Dr. Salah El Din Sharaf

Undersecretary for Plant Quarantine

> Tel: (20-2) 336-3582
>
> Fax: (20-2) 337-2881 / 336-1727

Dr. Mostafa Osman

Chief of Quarantine Service

> Tel: (20-2) 748-1750 / 1763
>
> Fax: (20-2) 335-0692 / 336-1727

GENERAL ORGANIZATION FOR EXPORT AND IMPORT CONTROL (GOEIC), MINISTRY OF
FOREIGN TRADE

Address: 1 Ramsis Street

Cairo, Egypt

Contact: General Mohamed Abdel Hamid El Banaa

Chairman

> Tel: (20-2) 575-6130 / 6095
>
> Fax: (20-2) 576-6971 / 575-8195

Eng. Raghib Hozaien

Undersecretary for Import Control for Food Imports

> Tel: (20-2) 574-1654
>
> Fax: (20-2) 575-8195

### 

### MINISTRY OF HEALTH & POPULATION

Address: 3 Maglis El Shaab Street

Cairo, Egypt

Contact: Dr. Zeinab Abdel Halim

Director of Food Safety and Control Division

Food and & Quality Control

> Tel: (20-2) 794-8152
>
> Fax: (20-2) 794-8152

### CENTRAL HEALTH LABORATORY

Address: 19 El Sheikh Rihan Street

Cairo, Egypt

Tel: (20-2) 794-7271 / 2 / 3

Fax: (20-2) 796-2248

Contact: Dr. Magda Ali Rakha

Undersecretary for Central Health Laboratory

### FOOD INSTITUTE

Address: 16 Kasr El Eini Street

Cairo, Egypt

Contact: Dr. Hoda Abdel Fattah Hassan

Chairman

> Tel: (20-2) 364-6413 / 3522
>
> Fax: (20-2) 364-7476

EGYPTIAN ORGANIZATION FOR STANDARDIZATION & QUALITY CONTROL (EOS)

Address: 6 Tadreeb El Modrabeen Street

Amiria, Cairo, Egypt

Contact: Dr. Eng. Mahmoud Eisa

Chairman

> Tel: (20-2) 603-1349 / 259-3480
>
> Fax: (20-2) 603-1351

# APPENDIX I: KEY TRADE & DEMOGRAPHIC INFORMATION (2002)

Total Imports (billion) \$14.7

Total Agricultural Imports (billion) \$3.5

Total Agricultural Imports

as a percent of Total Imports 17 percent

Total Agricultural Imports

from the U.S. (Million) \$866,940

Total Consumer Oriented Products

from U.S. (million) \$42

U.S. Ag. Market Share 25 percent

Population (million) 67.9

Population Growth 2.02

Inflation Rate 2.4 percent

Agriculture's Contribution to GDP 16.6 percent

Exchange Rate (US\$ 1 = L.E. 6.15) on October 13, 2003

Source: - Central Agency for Public Mobilization and Statistics (CAPMAS)

\- Information and Decision Support Center (IDSC)

\- UN Trade Data

## APPENDIX II: CONSUMER FOOD & EDIBLE FISHERY PRODUCT IMPORTS (\$ million)

<table>
<colgroup>
<col style="width: 18%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 6%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 10%" />
<col style="width: 9%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td rowspan="2"><em><strong>PRODUCT</strong></em></td>
<td colspan="3"><em><strong>2000</strong></em></td>
<td colspan="3"><em><strong>2001</strong></em></td>
<td colspan="3"><em><strong>2002</strong></em></td>
</tr>
<tr class="even">
<td><em><strong>WORLD</strong></em></td>
<td><em><strong>U.S.</strong></em></td>
<td><em><strong>US SHARE</strong></em></td>
<td><em><strong>WORLD</strong></em></td>
<td><em><strong>U.S.</strong></em></td>
<td><p><em><strong>US</strong></em></p>
<p><em><strong>SHARE</strong></em></p></td>
<td><em><strong>WORLD</strong></em></td>
<td><em><strong>U.S.</strong></em></td>
<td><p><em><strong>US</strong></em></p>
<p><em><strong>SHARE</strong></em></p></td>
</tr>
<tr class="odd">
<td>FRESH VEGETABLES</td>
<td>127,560</td>
<td>21,106</td>
<td>17%</td>
<td>1,232,404</td>
<td>1,446</td>
<td>0%</td>
<td>2,964,167</td>
<td>0</td>
<td>0%</td>
</tr>
<tr class="even">
<td>FROZEN VEGETABLES</td>
<td>280,497</td>
<td>223,680</td>
<td>80%</td>
<td>73,522</td>
<td>48,737</td>
<td>66%</td>
<td>4,482,940</td>
<td>0</td>
<td>0%</td>
</tr>
<tr class="odd">
<td><h1 id="dried-vegetables"><em>DRIED VEGETABLES</em></h1></td>
<td>7,135,901</td>
<td>372,256</td>
<td>5%</td>
<td>8,920,695</td>
<td>266,835</td>
<td>3%</td>
<td>15,163,857</td>
<td>297,519</td>
<td>2%</td>
</tr>
<tr class="even">
<td>NUTS</td>
<td>12,184,351</td>
<td>2,781,632</td>
<td>23%</td>
<td>11,960,915</td>
<td>2,204,561</td>
<td>18%</td>
<td>11,924,865</td>
<td>2,582,107</td>
<td>22%</td>
</tr>
<tr class="odd">
<td>FRESH FRUIT</td>
<td>1,199,275</td>
<td>172,527</td>
<td>14%</td>
<td>1,211,755</td>
<td>95,576</td>
<td>8%</td>
<td>1,614,873</td>
<td>33,567</td>
<td>2%</td>
</tr>
<tr class="even">
<td>APPLES</td>
<td>28,980,026</td>
<td>5,926,985</td>
<td>20%</td>
<td>27,275,726</td>
<td>6,713,951</td>
<td>25%</td>
<td>18,377,459</td>
<td>3,574,182</td>
<td>19%</td>
</tr>
<tr class="odd">
<td>DRIED FRUIT</td>
<td>10,646,977</td>
<td>412,224</td>
<td>4%</td>
<td>10,254,028</td>
<td>308,990</td>
<td>3%</td>
<td>8,943,397</td>
<td>223,036</td>
<td>2%</td>
</tr>
<tr class="even">
<td>COFFEE</td>
<td>8,056,434</td>
<td>60,302</td>
<td>1%</td>
<td>4,744,980</td>
<td>113,930</td>
<td>2%</td>
<td>6,369,387</td>
<td>11,746</td>
<td>0%</td>
</tr>
<tr class="odd">
<td>SPICES</td>
<td>55,015,290</td>
<td>45,605</td>
<td>0%</td>
<td>21,680</td>
<td>3,414</td>
<td>16%</td>
<td>428,460</td>
<td>0</td>
<td>0%</td>
</tr>
<tr class="even">
<td>BEEF CANNED (RED MEAT PREPARED)</td>
<td>2,216,352</td>
<td>87,135</td>
<td>4%</td>
<td>3,227,323</td>
<td>200,368</td>
<td>6%</td>
<td>1,783,510</td>
<td>0</td>
<td>0%</td>
</tr>
<tr class="odd">
<td>RED MEAT (FRESH, CHILLED, FROZEN)</td>
<td>232,689,563</td>
<td>6,855</td>
<td>0%</td>
<td>130,510,745</td>
<td>49,262</td>
<td>0%</td>
<td>191,419,592</td>
<td>156,034</td>
<td>0%</td>
</tr>
<tr class="even">
<td>BOVINE, OFFALS FROZEN</td>
<td>49,537,035</td>
<td>46,738,558</td>
<td>94%</td>
<td>30,177,149</td>
<td>30,038,212</td>
<td>100%</td>
<td>34,276,728</td>
<td>34,169,474</td>
<td>100%</td>
</tr>
<tr class="odd">
<td>FROZEN FISH</td>
<td>100,992,803</td>
<td>44,124</td>
<td>0%</td>
<td>90,944,054</td>
<td>5,223,829</td>
<td>6%</td>
<td>64,070,544</td>
<td>3,135,755</td>
<td>5%</td>
</tr>
<tr class="even">
<td>COCOA PASTE</td>
<td>453,883</td>
<td>0</td>
<td>0%</td>
<td>570,770</td>
<td>11,481</td>
<td>2%</td>
<td>1,049,461</td>
<td>0</td>
<td>0%</td>
</tr>
<tr class="odd">
<td>COCOA BUTTER</td>
<td>184,141</td>
<td>0</td>
<td>0%</td>
<td>8,464,720</td>
<td>46,878</td>
<td>1%</td>
<td>1,244,744</td>
<td>0</td>
<td>0%</td>
</tr>
<tr class="even">
<td>COCOA POWDER</td>
<td>7,380,604</td>
<td>178,204</td>
<td>2%</td>
<td>6,242,367</td>
<td>32,058</td>
<td>1%</td>
<td>11,899,353</td>
<td>46,803</td>
<td>0%</td>
</tr>
<tr class="odd">
<td>BISCUITS / BREAD / WAFFLES</td>
<td>2,137,982</td>
<td>329,937</td>
<td>15%</td>
<td>3,053,057</td>
<td>454,628</td>
<td>15%</td>
<td>3,729,473</td>
<td>984,798</td>
<td>26%</td>
</tr>
<tr class="even">
<td>JAMS</td>
<td>6,449,172</td>
<td>39,935</td>
<td>1%</td>
<td>4,132,853</td>
<td>19,753</td>
<td>0%</td>
<td>316,621</td>
<td>49,259</td>
<td>16%</td>
</tr>
<tr class="odd">
<td>JUICES</td>
<td>1,883,583</td>
<td>69,833</td>
<td>4%</td>
<td>1,590,808</td>
<td>112,472</td>
<td>7%</td>
<td>1,222,398</td>
<td>89,298</td>
<td>7%</td>
</tr>
<tr class="even">
<td>SAUCES / MAYONNAISE / KETCHUP</td>
<td>1,227,736</td>
<td>784,051</td>
<td>64%</td>
<td>815,178</td>
<td>475,717</td>
<td>58%</td>
<td>806,375</td>
<td>299,658</td>
<td>37%</td>
</tr>
<tr class="odd">
<td>ICE CREAM</td>
<td>459,707</td>
<td>50,350</td>
<td>11%</td>
<td>350,471</td>
<td>147,481</td>
<td>42%</td>
<td>974,029</td>
<td>205,044</td>
<td>21%</td>
</tr>
<tr class="even">
<td>JELLY</td>
<td>503,899</td>
<td>245,289</td>
<td>49%</td>
<td>62,289</td>
<td>22,714</td>
<td>36%</td>
<td>0</td>
<td>0</td>
<td></td>
</tr>
<tr class="odd">
<td>BEER</td>
<td>139,593</td>
<td>0</td>
<td>0%</td>
<td>n/a</td>
<td>22</td>
<td>n/a</td>
<td>11,887</td>
<td>0</td>
<td>0%</td>
</tr>
<tr class="even">
<td>WINE</td>
<td>489,040</td>
<td>0</td>
<td>0%</td>
<td>274,921</td>
<td>0</td>
<td>0%</td>
<td>204,127</td>
<td>16,825</td>
<td>8%</td>
</tr>
<tr class="odd">
<td>PET FOOD</td>
<td>n/a</td>
<td>176</td>
<td></td>
<td>767,476</td>
<td>250,786</td>
<td>33%</td>
<td>1,209,008</td>
<td>152,522</td>
<td>13%</td>
</tr>
<tr class="even">
<td>PASTAS</td>
<td>1,840,865</td>
<td>79,282</td>
<td>4%</td>
<td>985,082</td>
<td>128,140</td>
<td>13%</td>
<td>892,919</td>
<td>4,199</td>
<td>0%</td>
</tr>
<tr class="odd">
<td>CHEESE</td>
<td>32,810,785</td>
<td>366,211</td>
<td>1%</td>
<td>23,023,931</td>
<td>204,213</td>
<td>1%</td>
<td>22,652,069</td>
<td>230,755</td>
<td>1%</td>
</tr>
<tr class="even">
<td>BUTTER</td>
<td>75,713,972</td>
<td>0</td>
<td>0%</td>
<td>66,723,931</td>
<td>287,294</td>
<td>0%</td>
<td>65,801,264</td>
<td>0</td>
<td>0%</td>
</tr>
<tr class="odd">
<td>MILK POWDER</td>
<td>49,883,323</td>
<td>10,477,016</td>
<td>21%</td>
<td>47,058,800</td>
<td>1,236,517</td>
<td>3%</td>
<td>33,837,190</td>
<td>1,600,713</td>
<td>5%</td>
</tr>
<tr class="even">
<td>PASTEURIZED EGGS</td>
<td>412,559</td>
<td>100,297</td>
<td>24%</td>
<td>243,692</td>
<td>31,643</td>
<td>13%</td>
<td>152,413</td>
<td>42,703</td>
<td>28%</td>
</tr>
<tr class="odd">
<td>GRAND TOTAL</td>
<td>755,558,672</td>
<td>73,418,561</td>
<td>10%</td>
<td>553,520,269</td>
<td>50,838,539</td>
<td>9%</td>
<td>558,889,437</td>
<td>50,043,340</td>
<td>9%</td>
</tr>
</tbody>
</table>

*Source: Central Agency for Public Mobilization and Statistics (CAPMAS)*

# APPENDIX III: SUPPLIERS OF CONSUMER FOODS AND EDIBLE FISHERY PRODUCTS

+---------------------+----------------+---------------+---------------+
| ***SUPPLIERS OF     |                |               |               |
| CONSUMER FOODS AND  |                |               |               |
| EDIBLE FISHERY      |                |               |               |
| PRODUCTS***         |                |               |               |
+=====================+================+===============+===============+
| ***PRODUCT***       | ***LARGEST***  | ***MARKET***  | ***U.S.       |
|                     |                |               | MARKET***     |
|                     | *              | ***SHARE      |               |
|                     | **SUPPLIERS*** | (%)***        | ***SHARE      |
|                     |                |               | (%)***        |
+---------------------+----------------+---------------+---------------+
| Fresh Veg.          | China          | 95%           | 0 %           |
+---------------------+----------------+---------------+---------------+
| Frozen Vegetables   | Netherlands    | 70%           | 0%            |
|                     |                |               |               |
|                     | Saudi Arabia   | 30%           |               |
+---------------------+----------------+---------------+---------------+
| Dried Vegetables    | Mynamar        | 36%           | 2%            |
|                     |                |               |               |
|                     | Canada         | 21%           |               |
|                     |                |               |               |
|                     | China          | 7%            |               |
+---------------------+----------------+---------------+---------------+
| Fresh Fruit         | Lebanon        | 24%           | 8%            |
|                     |                |               |               |
|                     | Chilly         | 13%           |               |
|                     |                |               |               |
|                     | Syria          | 9%            |               |
|                     |                |               |               |
|                     | Italy          | 9%            |               |
|                     |                |               |               |
|                     | France         | 5%            |               |
|                     |                |               |               |
|                     | Greece         | 5%            |               |
+---------------------+----------------+---------------+---------------+
| Dried Fruit         | Turkey         | 32%           | 2%            |
|                     |                |               |               |
|                     | Syria          | 19%           |               |
|                     |                |               |               |
|                     | Greece         | 12%           |               |
|                     |                |               |               |
|                     | Iran           | 11%           |               |
+---------------------+----------------+---------------+---------------+
| Nuts                | Turkey         | 60%           | 22%           |
|                     |                |               |               |
|                     | India          | 18%           |               |
+---------------------+----------------+---------------+---------------+
| Coffee              | Indonesia      | 40%           | 0%            |
|                     |                |               |               |
|                     | Brazil         | 28%           |               |
|                     |                |               |               |
|                     | India          | 8%            |               |
|                     |                |               |               |
|                     | Vietnam        | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Spices              | India          | 39%           | 0%            |
|                     |                |               |               |
|                     | China          | 21%           |               |
|                     |                |               |               |
|                     | Syria          | 19%           |               |
+---------------------+----------------+---------------+---------------+
| Red Meat Prepared   | Brazil         | 81%           | 0%            |
|                     |                |               |               |
|                     | Argentina      | 9%            |               |
|                     |                |               |               |
|                     | Jordan         | 5%            |               |
+---------------------+----------------+---------------+---------------+
| Red Meat (fresh,    | Brazil         | 43%           | 0%            |
| chilled, frozen)    |                |               |               |
|                     | India          | 28%           |               |
|                     |                |               |               |
|                     | Argentina      | 20%           |               |
|                     |                |               |               |
|                     | Uruguay        | 3%            |               |
+---------------------+----------------+---------------+---------------+
| Bovine, offals      | U.S.           |               | 100%          |
| frozen              |                |               |               |
+---------------------+----------------+---------------+---------------+
| Canned Fish         | Thailand       | 93%           | 1%            |
|                     |                |               |               |
|                     | France         | 1%            |               |
|                     |                |               |               |
|                     | Indonesia      | 1%            |               |
+---------------------+----------------+---------------+---------------+

+---------------------+----------------+---------------+---------------+
| Frozen Fish         | Netherlands    | 35%           | 5%            |
|                     |                |               |               |
|                     | United Kingdom | 16%           |               |
|                     |                |               |               |
|                     | Ireland        | 15%           |               |
|                     |                |               |               |
|                     | EEC            | 7%            |               |
|                     |                |               |               |
|                     | France         | 4%            |               |
|                     |                |               |               |
|                     | Germany        | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Cocoa Paste         | United Kingdom | 53%           | 0%            |
|                     |                |               |               |
|                     | China          | 32%           |               |
|                     |                |               |               |
|                     | France         | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Cocoa Butter        | United Kingdom | 88%           | 0%            |
|                     |                |               |               |
|                     | France         | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Cocoa Powder        | U.A.E.         | 21%           | 0%            |
|                     |                |               |               |
|                     | United Kingdom | 11%           |               |
|                     |                |               |               |
|                     | Malaysia       | 8%            |               |
|                     |                |               |               |
|                     | Netherlands    | 7%            |               |
|                     |                |               |               |
|                     | France         | 5%            |               |
|                     |                |               |               |
|                     | Indonesia      | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Other Food          | United Kingdom | 68%           | 9%            |
| Preparations        |                |               |               |
|                     | Germany        | 4%            |               |
|                     |                |               |               |
|                     | Netherlands    | 4%            |               |
|                     |                |               |               |
|                     | Australia      | 3%            |               |
+---------------------+----------------+---------------+---------------+
| Biscuits / Bread /  | EEC            | 15%           | 26%           |
| Waffles             |                |               |               |
|                     | United Kingdom | 12%           |               |
+---------------------+----------------+---------------+---------------+
| Biscuits / Bread /  | Germany        | 9%            |               |
| Waffles             |                |               |               |
|                     | Italy          | 8%            |               |
|                     |                |               |               |
|                     | Saudi Arabia   | 6%            |               |
|                     |                |               |               |
|                     | France         | 2%            |               |
+---------------------+----------------+---------------+---------------+
| Jams                | Poland         | 21%           | 16%           |
|                     |                |               |               |
|                     | France         | 20%           |               |
|                     |                |               |               |
|                     | Belgium        | 14%           |               |
|                     |                |               |               |
|                     | Hungary        | 12%           |               |
|                     |                |               |               |
|                     | Bulgaria       | 8%            |               |
+---------------------+----------------+---------------+---------------+
| Juices              | Spain          | 25%           | 7%            |
|                     |                |               |               |
|                     | U.A.E.         | 9%            |               |
|                     |                |               |               |
|                     | Cyprus         | 8%            |               |
|                     |                |               |               |
|                     | Thailand       | 7%            |               |
|                     |                |               |               |
|                     | Saudi Arabia   | 2%            |               |
+---------------------+----------------+---------------+---------------+
| Sauces / Mayonnaise | India          | 18%           | 37%           |
| / Ketchup           |                |               |               |
|                     | Netherlands    | 13%           |               |
|                     |                |               |               |
|                     | France         | 6%            |               |
|                     |                |               |               |
|                     | Germany        | 4%            |               |
|                     |                |               |               |
|                     | Pakistan       | 4%            |               |
+---------------------+----------------+---------------+---------------+

+---------------------+----------------+---------------+---------------+
| Ice Cream           | France         | 38%           | 21%           |
|                     |                |               |               |
|                     | Germany        | 17%           |               |
|                     |                |               |               |
|                     | EEC            | 9%            |               |
+---------------------+----------------+---------------+---------------+
| Beer                | Ireland        | 100%          | 0%            |
+---------------------+----------------+---------------+---------------+
| Wine                | EEC            | 44%           | 8%            |
|                     |                |               |               |
|                     | Italy          | 26%           |               |
|                     |                |               |               |
|                     | Saudi Arabia   | 17%           |               |
+---------------------+----------------+---------------+---------------+
| Pet Food            | France         | 18%           | 13%           |
|                     |                |               |               |
|                     | Australia      | 16%           |               |
|                     |                |               |               |
|                     | Germany        | 13%           |               |
+---------------------+----------------+---------------+---------------+
| Pastas              | Italy          | 29%           | 0%            |
|                     |                |               |               |
|                     | Indonesia      | 16%           |               |
|                     |                |               |               |
|                     | Saudi Arabia   | 11%           |               |
|                     |                |               |               |
|                     | China          | 8%            |               |
|                     |                |               |               |
|                     | Turkey         | 8%            |               |
+---------------------+----------------+---------------+---------------+
| Cheese              | Netherlands    | 56%           | 1%            |
|                     |                |               |               |
|                     | Denmark        | 3%            |               |
+---------------------+----------------+---------------+---------------+
| Cheese              | France         | 2%            |               |
|                     |                |               |               |
|                     | United Kingdom | 2%            |               |
+---------------------+----------------+---------------+---------------+
| Butter              | New Zealand    | 60%           | 0%            |
|                     |                |               |               |
|                     | Australia      | 20%           |               |
+---------------------+----------------+---------------+---------------+
| Milk Powder         | New Zealand    | 16%           | 5%            |
|                     |                |               |               |
|                     | Poland         | 15%           |               |
|                     |                |               |               |
|                     | Sweden         | 14%           |               |
+---------------------+----------------+---------------+---------------+
| Pasteurized Eggs    | France         | 51%           | 28%           |
|                     |                |               |               |
|                     | India          | 18%           |               |
+---------------------+----------------+---------------+---------------+

*Source: Central Agency for Public Mobilization and Statistics (CAPMAS)*