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Population Growth Could Mean Dairy Opportunities

13 November 2012

LIBYA - Libyan dairy consumption is predicted to rise dramatically. This has implications for processors as well as producers as the market currently favours recombined forms.

Libya is the fourth largest country in Africa with a population of around 7 million, expected to grow to 8.2 million by 2016. Before the conflict in 2011, GDP per capita stood at $12,285 and although it fell by half in 2011, it is expected to return to that level by 2014, according to the Irish Food Board.

As can be seen from Table 1 below, the consumption of dairy products is set to grow substantially to 2016. The commercial market is not a fresh milk one but is dependent nearly exclusively on recombining. Around 75 per cent of overall milk production is from the “non market” economy, produced for home consumption and local neighbourhood trading.

For the moment there are just a small number of major commercial players but there are now signs that there will be substantial investment in new factories in the coming years. Al Rayhan Co. and Judi Fo Food industry Co. both based in Tripoli between them have over 50 per cent of the milk market while Al Naseem Co. based in Misrata dominates in the Labneh and yogurt sectors (Table 2).

There is also a range of imported products available from a number of Egyptian players such as Americana, Juhayna Dairies and major International players such as Nestle, Arla and Fromageries Bel.

TheCattleSite News Desk

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