Middle East agri-food hub to boost orange and tomato concentrates, fruit and citrus oils

04 Jan 2024 --- MAFI for Agricultural Produce Industries has inked a land allocation deal with Elsewedy Industrial Development to build an agri-food industrial complex in Sadat City, Egypt, which is touted to be the “largest in the Middle East,” according to a Cabinet statement. The facility will house the production of orange and tomato concentrates, various fruit products and citrus oils.

The facility will be a hub for agricultural food production, innovation and productivity to drive Egyptian exports of high-quality products worldwide.

The project will house five plants — a cloudy product plant, freeze-drying facilities for fruits and vegetables and a cutting-edge factory for freezing the perishable commodities. 

According to Ahmed Abu Hashima, chairman of the board of directors of MAFI for agriculture produce industries, the move is a part of the Egyptian government’s measures to propel the country’s industrial capabilities and exports forward.

“Eighty percent of the complex’s production capacity will be directed toward exports, thereby contributing to balancing Egyptian trade.”

He added that the complex will feature state-of-the-art technology in the agricultural food sector in partnership with major international companies such as JBT and Cabin Plant from the US and GEA from Germany.

The plant will manufacture orange and tomato concentrates and citrus oils.The contracts were signed last week at the Council of Ministers headquarters in Cairo, Egypt, by Hashima, Luca Bordini, general manager of JBT FoodTech Company for the Middle East, Sunil Kumar, general manager of GEA Middle East and Per Müller, general manager of Cabinplant Company.

The session was attended by Dr. Mostafa Madbouly, the prime minister of Egypt; Ahmed Samir, the minister of industry; Hossam Hibah, the CEO of the general authority for investment; and Ahmed Elsewedy, president and chairman of Elsewedy Industrial Development.

Employment and financial implications
According to the Egypt State Information Service (SIS), during its initial phase, the complex will work toward attaining an annual production yield of over 100,000 tons of high-quality agricultural food products.

“This move is in line with the Egyptian government’s focus on maximizing industrial capabilities through the strategy of encouraging exports and displacing imports,” states SIS.

Meanwhile, Hashima noted that the complex is projected to create over 7,000 direct and indirect job opportunities, which will contribute to the growth of the Egyptian economy while striving to achieve a balance between imports and exports.

The complex has an annual production capacity of over 100,000 tons of agricultural food products in the first phase, with an estimated turnover of US$200 million, says the company. Toward the second phase, the production capacity is expected to reach 200,000 tons, equivalent to a turnover of US$400 million.

Middle East advances
As food technology evolves worldwide, Middle Eastern countries have been making progress F&B innovation for quite some time.

Consumers are increasingly focusing on food labels.Israel-based Steakholder Foods netted a Gulf investment to commercialize its 3D fish bioprinting technology to alleviate food security threats in the region, as reported by Food Ingredients First in July last year.

Consumers in the region are also curious about plant-based products, with 50% of UAE consumers prioritizing their food and drink’s nutritional content and naturalness, according to Ingredion. This led to the company unveiling its range of natural, healthy and more sustainable products based on plant-based ingredients and sugar-reduced content last year, such as a pea and rice protein blend for extruded snacks and beverages.

ADM’s blue pigment technology is also gaining traction in the Middle East, showcasing consumers’ preference for natural food colors and a keen eye for food ingredient lists.

Moreover, there is a heightened public concern for product labels and active choice for cleaner alternatives, says GNT. The company unveiled its halal-certified plant-based natural colors to cater to this demand at the Gulfood Manufacturing event held in Dubai, Saudi Arabia, last year.

By Insha Naureen