Juhayna officials jailed for milk-skimming scam

Ahram Online, Thursday 16 Feb 2012

Two senior staff of Egypt's largest dairy producer are handed one-year prison sentences for watering down milk

Juhayna
Juhayna is Egypt's largest dairy producer (Company logo)

Two officials from Egypt's Juhayna Food Industries have been jailed by a court in the governorate of Kafr El-Sheikh for watering down milk, Ahram's Arabic-language portal reported on Wednesday.

Juhayna's general production manager and another official were both fined LE1,000 and sentenced to a year in prison by a court in the northern Delta town on Wednesday, the report said.
 
Juhayna is Egypt's largest producer of dairy products and juices, but has been plagued by a history of consumer complaints.
 
Last September, Egypt's Dairy Producers Association (DPA) demanded Juhayna pay up to LE600 million in compensation for what it alleges is the company’s monopolistic and anti-competitive actions over the last 10 years. The case is still before court.
 
The DPA also voiced discontent over Juhayna’s new pricing raw milk, claiming it did not take into account material costs and forced other producers to make steep discounts.
 
A consumer movement called Mwateneen Ded El-Ghalaa -- Citizens Against High Costs --  also filed a complatint with the Egyptian Consumer Protection Agency that claimed Juhayna was watering-down its cheapest brand of milk, named Bekhero, by around a quarter.
 
Juhayna shares lost 1.4 per cent during Wednesday trade on Egypt's stock exchange.
 
The firm saw net profits of LE186 million ($32 million) for the first nine months of 2011, a 7 per cent rise on the same period the year before, according to figures released to the exchange.
 
 
This article was amended on 16 February. The original claimed the watering down of milk took place at a factory in Kafr El-Sheikh, which was incorrect.
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