Success for ICCO Innovation FSRE –Grant Fund

Presented on ICCO- EKN Learning Event

Organized by ICCO – Ethiopia Office

Decmber16, 2015 Addis Ababa

1. Ethiopia Background• Second most populous country on Africa, >90

million people

• Registered fastest economic growing( non-oil dependent nation), Between 2005/6 and 2012/13 average rate

10.6% (MoFED,2012)

Annual Average highest rate for Sub-Saharan is > 6%

• Has About 53 million poultry flock ( which is 0.6 bird per person)

Type N.America &

European

World Average Africa Average Ethiopia

Chicken

Meat

72 kg 42 kg 5kg 0.4 kg

Egg 250 180 46 7

Question One: Where do you rank Ethiopia in terms of

chicken product consumption?

Two: What is your comment on Ethiopian

access to and utilization of quality nutrition?

affordability too?

• Meat and egg consumption per person per year for different regions of the world

To Curve these Situation:

The government:

Put in place and issued polices and regulations.Developed Livestock master plan (LMP),

top attention given to poultry among the three pillars,

(Poultry, Red meat, and Dairy)

Organized New ministry named as MoLFD

According to the road map of the LMP, poultry rearing

moves from traditional backyard to :

a. Improved /exotic/ family and

b. Increase scale of the operation of the specialized broiler

and layer production.

Then it has been planned to produce,

Products 2014/15 2019/20 %changes

Meat 48.9 thousandtons

163.9 thousand tone 235

Egg 419 million 3,888.8million 828

Chicken meat shares to be from the current total

meat consumption 5% to 30% by year 2030

Total investment and recurrent cost required

for 5 road map years is 2.4 billion ETB. Of

this,

17% comes from public and

83% from private sector

To establish and run chicken meat and egg

processing plant 770 million ETB is required,

which will be totally from private sector

investment

2. ROFILE OF ELERE FARMS

Was established in 2008, Located in Oromia Region State , East Shewa Zone,

Adea Woreda, Qurqura Danbi Kebele/ Bishoftu Town Currently the farm has four sites ,

two sites in Bishoftu Two sites in Lume District ( one is initiated by ICCO

FSRE Grant Fund/ Operated under four unit

Parent stock – production of fertile eggs Hatchery – hatching and supplying day old chicks (

broiler and layer) Feed processing, Commercial rearing

• Note: Now 5th unit under process – initiated byICCO FSRE Grant

3. The Innovation Gant Fund of ICCO

ELERE FARMS won the 4th Grant fund

100,000 Euro

Establishment of Automated Chicken

slaughter plant

Objective to solve market difficulties of

out growers

3.1 What initiated the farm to

apply for the Innovation fund?

The difficulties that the farm customers are facing to

market their chicken meat, This related to :

a. Question of theatrical “safety and hygiene for the

meat supplied”. Hotel owners really need it!!!

b. Nature of the product- perishable product

c. Distorted market – wrong connection of brokers

And purchasers

d. Distorted price- high price for consumer and low

Price for producers. (Average price difference is 50

– 70 birr per kg b/n farm and supermarket price).

3.2 Working modality

Sign Contractual agreement with growers,

Giving standard slaughter services to out

growers, simplify and reduce their Burdon,

(waste disposal, cost, etc)

Giving accreditation on safety and hygiene

for the meat of out growers

Provide cold chain facilities

Establish market linkage between out

growers and buyers

Find and link with international market

including food industries.

3.3 Benefit / expected benefit

of the innovation fund

Obtained land for the Slaughter Plant

/asset addition

Enhanced lobbing skill

Got better understanding of chicken meat

market

Gained Knowledge on Chicken Slaughter

Initiating the government / MoA to have

standard chicken slaughter design

Create awareness to the Government organizations

about standard and the need of chicken slaughter

plant, through sharing ideas and the studied project

document to,

MoI,

MoA/ Quarantine Unit

Oromia office of the president

Oromia Livestock agency

Oromia Bureau of Micro Enterprise

Oromia Bureau of Land management and Env.

Protection

Oromia Investment Commission

East Shewa Administration and investment

offices

Bishoftu Town Administration

ATA offices

Add energy to the farm to work more

on the poultry business (look for

expansion , standardization , etc )

The plant can be a model and

exemplary for the country

Income of the farm and its customer

will increase and run their business

smoothly.

Can attract international brand Food

industries

4. Challenges

• Ideal land acquisition for the slaughter andtime taking

• Project period

• Technology selection

• Absent of standard design for chickenslaughter in the country

• Lack of professional on chicken slaughter

5. Action taken / solution

Made intensive and continues lobby to thegovernment and land is already secured( 5000sq. m) for the plant,

Machinery and material to be used for houseconstruction was selected by support ofexperienced Food Industry company,

Design was adopted from similar and machinesupplying company, and

Use knowledge of expatriates and have beenlearning from them.

Thank you for your attention!!!