FrieslandCampina, Domty cooperate to boost food industry exports

Alyaa Stohy
2 Min Read

The Arabian Food Industries Company (Domty) has announced that it has signed a cooperation agreement with the Dutch multinational, FrieslandCampina International Holding BV.

The agreement will see FrieslandCampina establish a new company that will focus on exporting cheese to Africa and some countries in the Middle East. 

Talks began in 2020, with the two parties signing a Memorandum of Understanding (MoU) in September 2020. The company will be established in 2021, and will be 51% owned by FrieslandCampina, with Domty owning the remaining 49%. 

FrieslandCampina is the world’s 4th largest dairy company, with its main brands being Frico and Kroon.

A source said that Domty will export and co-pack white cheese, plastic cups, mozzarella, Tetra Pak, vegetable oil, and natural oil. It will cooperate with the Dutch company in the Egyptian market and up to four African markets over 2021 in the white cheese carton packs segment.

A source said that 6% of sales will come from exports, which are growing in value but not as fast as the local market. This is due to the nature of the bakery segment, which as a fresh product, cannot be exported.

The source also said that the main positive outlook for exports comes from FrieslandCampina, which will boost exports and the contribution of exports to the top-line. 

Without FrieslandCampina, the export market will continue to grow with a single digit percentage, given the very tough competition.

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