Egypt's dairy association claims Juhayna is squeezing other producers

Ahram Online, Monday 5 Sep 2011

Dairy Producers Association disapproves of Juhayna’s new raw-milk-pricing formula and accuses the company of monopolistic practices


Egypt's Dairy Producers Association has voiced discontent over Juhayna’s new raw-milk pricing formula, claiming it does not take into consideration all milk raw materials costs and forcing producers to agree on the new formula. 

The Association says the Minister of Trade and Industry should have referred the case to general prosecution six months ago, it told Al Mal daily financial newspaper.
The Association is demanding that Juhayna pay a penalty, ranging from LE200,000 - 600 million, due to the company’s monopolistic and anticompetitive actions over the last 10 years. 
A note from investment bank Beltone Financial said: "This issue has been ongoing for some time now, but if the Association’s accusations to Juhayna are proven true, this could be negative for the company, as a penalty will be paid and a new raw milk pricing formula will be devised which will probably squeeze Juhayna’s dairy margins."
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