Specific Investment Opportunities Product

Dairy Farming with focus on breeds

The number of exotic or improved cow breeds in Ethiopia is less than 2% of the total milk cows. Though the two milk corridors identified for prospective investment have better proportion of improved breed, they still have very small mix. Setting-up a model state of the art integrated farming such as Genesis Agro-Industries or Alfa farms have dual purpose of making good money from sales of milk or related products.

Pasteurized Milk and Yoghurt

Less than 5% of milk produced is marketed as processed fluid milk. Demand for pasteurized milk is growing fast with increasing urban population and emerging middle class. Milk processing plant in Bishoftu-Adama as well as Selale-Fitche corridors can easily serve the central market including Finfinnee which has an estimated demand of over 65 million liters per year. 

Milk Powder

Ethiopia imported US $5.4 million milk powder and related products in 2013. From 2009, import has grown by over 50 times.  The major imported milk powder is the leading brands such as NIDO of Nestle. In addition, milk powder is widely used for infant formulas. There is no domestic processing company. Milk powder processing is relatively a big investment that requires minimum critical volume. Hence companies need to build a robust milk supply chain to get the needed volume in advance. In addition to the domestic market, export to the neighboring countries and Middle East is a viable business opportunity. Fortification with vitamins and minerals can be additional winning edge.

Fattening and Slaughter House

Oromia region offer sound opportunity for fattening and slaughterhouse. In particular areas around Adama, and Batu are highly suitable for fattening. The area has good access to infrastructure to set-up slaughterhouse. Most of the export abattoirs (Modjo Modern, Helmix, Organic, Luna etc) in the country are located in this area. In addition, big international players, VERDE Beef from the USA and Allana Group from India, are establishing meat processing in Batu area. The main market for meat and button products is to the Middle East countries but the domestic market is also high potential. Bulls and calves for fattening can easily be acquired from Borena, Bale and Arsi zones within Oromia Region as well as from Omo valley in South Nations, Nationalities and People’s Region (SNNPR).  The Borena-Guji corridor can be another consideration with easy access to good calves and bulls for slaughter house but logistics might be a challenge.

Ostrich Farm Business Opportunities

Ostrich business farm opportunities are also other untapped investment potential available in the region which is waiting for potential Investors.

 

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