Grain Mills Products Processing

The main activity in the sector is milling of flour of meals from grains for manufacture of cereal breakfast foods, usage in bakeries, and the manufacture of starch and starch products. This category contains 3 main products globally:

  • Bakery
  • Cereal
  • Pasta

The biscuit market in UAE has an estimated size of AED 500 mn. Imported brands continue to make up about 40% of the domestic market for biscuits. The pasta and noodles market has a size of around AED 250 mn.

There is capital requirement in the sector mainly for the machinery – the pasta extrusion machines and the related bakery equipment. The volatile ingredigent prices are also a cause of concern. In addition to this the cost competition from neighbouring countries like KSA (which give subsidies) and Saudi (advanced machinery) is high.

There is a high risk associated with wastage in the sector due to the product’s low shelf life.

Opportunities

  • Commercial Bakery for pastries, muffins, cakes, Premium biscuits.
  • Joint Ventures with international players for knowledge and technology transfer.
  • Emerging trend towards organic and functional foods – for example pasta with less carbohydrates and more fibre.
  • Scope for extended shelf life techniques

Market Players

Bakeries:

  • Currently more than 100 bakeries registered in Dubai ( micro firms<10 employees)
  • Fragmented Market: 63(S and Medium) bakeries registered with DCCI. Al Jadeed Bakery, Modern Bakery and Golden Fork Bakery are large bakeries constituting more than 60-70% of the market.
  • UAE Manufacture of Bakery- Biscuits and other – 2 major companies ( Tiffany Foods IFFCO Group(62% market share) has the largest biscuit manufacturing facility in UAE. It has been the latest producer of biscuits and exports around 80% of the production to the major markets in Africa, the GCC, Canada and Europe. Seville Products is also part of the IFFCO group. S.P. produces chocolates confectionery and wafers. Others are Strategic Foods (31%) (Al Quoz) and Masterfoods 7%(JAFZA) which are mainly focused on exports.
  • Major Supermarkets like Carrefour, Lulu and Choitrams have their own bakeries.
  • Biscuits market driven by high competition from imports and low presence of local manufacturing/ local brands in UAE.
  • Innovation: Companies like Advanced Baking Concepts and DoFreeze have developed frozen bread for the UN and military.

Pasta

  • 6 operating factories in UAE (2006) (Emirates Macaroni Factory- 4 Brands 80% market share in local market; Al ghurair- 3 to 4 brands- 10% local market share, more export oriented; Kolson – 2 brands; Al Ghurair manufactures instant noodle and is exporting the same in GCC

Cereal

  • Three companies listed under cereal manufacturing: Superfood Processing and packaging, Hassani Food Industries and Transworld Foodstuff FZ as per DCCI; however these are engaged in packaging and labelling.

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