Beef in Ethiopia
Holland Meat is a meat-processing factory. Their products include hamburgers and sausages that are produced and processed for the local market. The products are currently mainly sold to supermarkets in the large cities. The company also supplies ‘Ethiopian Airlines’. Of course meat is needed for the hamburgers and sausages. That is currently obtained from slaughterhouses. In the longer term local farmers could sell their cows directly to the factory. Prior to the sale, the cows would be fattened. The farmers would then bring the cows to a good weight so they can obtain more money for them. The production in the factory started in 2018 and the first sales results are good.
What's going on now?
It is very important that the meat from the cows is of a good quality because that determines the quality of the final products for the factory. Purchasing from large and professional livestock farmers is therefore a highly attractive option for the factory. In the future, we want to apply more focus to purchasing from local and small farmers. To achieve this goal, Holland Meat needs to set up a simple programme for the farmers. This programme needs to raise the awareness about the importance of investing in fattening the cows so that a higher return is obtained. Investments (costs) need to be made before the benefits can be reaped. This needs to be made clear to the farmers but also feasible for them.
Another challenge is scaling up the production and the related logistical challenges of refrigerated transport in Ethiopia. Quality standards also need to be continuously improved to remain competitive with imported products.
In 2018, the focus is on setting up production and realizing sales in accordance with the quality standards. Building up the local market costs time. Every new factory faces initial problems that need to be resolved before the factory can expand further. It is expected that in 2019 genuine attention can be devoted to the setting up of a purchasing line directly related to the small local farmers. From that moment onwards the employees of Holland Meat will visit the farmers. They will explain to the farmers which quality of feed and type of medication they can best use to achieve a maximum return on the sale of their cattle to the factory. We are working on building up relationships of trust. The farmers need to be supported so that the factory can obtain suitable meat.
During the course of 2018 and increasingly in 2019, extensive investments will take place in product diversification.
From 2019 onwards, the expansion plans for Holland Meat will lead to:
- The installation of new production lines that can also produce chicken products
- A new packaging line and more refrigerated storage capacity
- The purchase of a growing volume of cattle from small farmers
There are no updates available for this project yet.
There are no references available for this project yet.
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