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.
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.