Dairy markets in Egypt and Syria are facing renewed cost pressures, with cheese, dairy products and key production inputs becoming significantly more expensive. Rising shipping costs, higher raw material prices and fuel shortages are increasing production expenses for dairy processors and putting further pressure on consumers across both markets.
In Egypt, cheese and dairy prices have reportedly increased by as much as 20% in recent weeks. Industry representatives have linked the rise to higher production costs and more expensive shipping amid regional tensions.
The developments highlight the growing vulnerability of dairy supply chains to international logistics, commodity prices and energy availability.
Egypt Faces Rising Dairy Production Costs
Mohamed El-Damaty, Vice President of the Food Industries Chamber at the Federation of Egyptian Industries, attributed part of the recent increase in Egyptian dairy prices to rising shipping costs.
According to industry reports, regional tensions have contributed to higher transportation expenses, adding pressure on food manufacturers and processors. El-Damaty warned that if the tensions continue for an extended period, production costs could rise further as factories struggle to absorb higher expenses while maintaining affordable prices for consumers.
Strong global demand for protein and protein-derived products is also contributing to increased costs for certain raw materials.
For Egypt’s dairy industry, these pressures are particularly important because processors rely on imported ingredients and commodities at different stages of production. Higher international prices can therefore quickly translate into increased manufacturing and retail costs.
Powdered Milk Prices Rise Sharply
One of the most significant increases has been reported in powdered milk prices.
Market data indicate that powdered milk prices in Egypt have risen from approximately $2,400–$2,600 per tonne at the beginning of the year to more than $3,600 per tonne.
Such an increase can have a substantial impact on dairy processors that depend on milk powder as an ingredient or input. Higher milk powder prices can increase the cost of producing processed dairy products, including cheese and other value-added products.
Other inputs, including vegetable oils, sugar and concentrates, have also become more expensive, further increasing the overall cost of food manufacturing.
The uncertainty is also influencing trading behaviour. Some wholesalers are reportedly increasing their cheese inventories in anticipation of further price volatility.
Syria’s Dairy Sector Hit by Diesel Shortages
The dairy industry in Syria is experiencing a different but closely related challenge. Dairy prices have reportedly increased by around 10% over the past two months, with fuel shortages emerging as a major contributor.
Ahmad al-Sawwas, Secretary of the Damascus Dairy and Cheese Producers Association, said approximately 85% of Syrian dairy businesses depend on diesel fuel.
Limited diesel availability and higher fuel prices have therefore increased operating costs across the sector. Dairy processing requires reliable energy for manufacturing, refrigeration, transportation and other activities, making fuel availability particularly important for the industry.
Refinery Shutdown Adds to Energy Pressure
Fuel supplies in Syria have come under additional pressure following the shutdown of the Baniyas Refinery for a major overhaul.
The disruption has increased the country’s dependence on imported fuel at a time when global diesel markets are already facing tighter supply conditions. More expensive imports can raise transportation and processing costs throughout the dairy supply chain.
Shipping disruptions are adding another layer of pressure, making it more difficult and expensive to move essential products and inputs.
Weak Consumer Demand Adds Further Pressure
While production costs are rising, dairy businesses in Syria are also dealing with declining consumer purchasing power.
Higher prices can reduce household demand for dairy products, creating a difficult situation for processors and producers. Businesses must manage increased production and distribution expenses while serving consumers whose ability to absorb price increases is becoming weaker.
Despite these challenges, the Syrian dairy industry has reportedly expanded its dairy exports this year, offering some positive momentum for producers operating in international markets.
Dairy Supply Chains Under Pressure
The developments in Egypt and Syria demonstrate how international disruptions can affect dairy markets far beyond the farm level. Shipping costs, milk powder prices, fuel availability and commodity markets can all influence the final price paid for dairy products.
For processors, maintaining stable supplies of raw materials and energy is becoming increasingly important. Meanwhile, consumers face higher prices as businesses attempt to manage rising operating costs.
With global commodity markets and regional logistics remaining uncertain, dairy producers and processors across North Africa and the Middle East are likely to continue monitoring input prices, fuel availability and international supply-chain conditions closely.