Fortune News | Mar 20,2021
A local company, Ed Stelar Foods Plc, is warming up to start exporting semi-processed meat products, particularly burger patties and meatballs, to Somaliland, Djibouti and the United Arab Emirates.
The company produces a range of processed beef and chicken products and targets to export 70pc of its total production while supplying the remainder to the domestic market. It plans to secure around seven million dollars from exports in a year and double the amount within five years.
Ed Stelar was founded in 2014 with 400 million Br capital as a joint venture between an Ethiopian entrepreneur, Eshetu Belay, and Dutch investor Hans Wasmoeth, who has previous experience in the "ready to eat" food processing industry.
The company currently employs 200 people and produces 59,000 food items a day at its plant, which sits on 5,000sqm of land in Sendafa, 35Km north of the capital. It is currently producing at just a fifth of its capacity.
"We started the business after observing how busy restaurants and burger joints are," said Eshetu, CEO of Ed Stelar Foods Plc and Ed Stelar Broadcasting Plc, which is also known as Ahadu TV & Radio.
"There is demand for semi-processed meat from the diaspora and expats, who usually bring such products back with them when they go abroad," he said. The company supplies mostly restaurant chains, supermarkets and hotels. A pack of six Ed Stelar beef patties goes for 380 Br in the local market.
The company has signed agreements to provide processed meat to international franchises, according to Eshetu. It plans to begin exporting in the coming few months.
"We're working on getting international certifications," he told Fortune. One of these is the Global Food Safety Initiative (GFSI), which sets standards for management and safety systems in food processing industries. The company is currently sourcing its livestock from seven farmers' cooperatives in Sendafa and Luna Export Slaughterhouse Plc, which owns the thriving Fresh Corner franchise.
There are currently 15 companies engaged in the export of processed meat products in Ethiopia, according to the Meat & Dairy Development Industry Development Institute. These companies generated 82 million dollars in export revenue last year.
One of them is Prime Meat, which was acquired from the former Ethiopian Privatisation Agency for 11.2 million Br in 2007. It was then known as Debre Zeit Swine Farm and was sold off due to challenges in the market as the vast majority of the Ethiopian demographic does not consume pork products.
Kassahun Aberu (PhD), CEO of Prime Meat, shares Eshetu's thoughts on the high demand for processed meat products among the diaspora, citing that some used to pay as much as 8,000 Br for one kilogramme of pork. The company currently employs over 200 people and processes two tonnes of meat a day. Mainly supplying restaurants and hotels such as the Sheraton Addis and Radisson Blu, Prime also caters to Salini Construction, the head contractor for the Grand Ethiopian Renaissance Dam (GERD).
Prime has also ventured into export, selling beef jerky and other beef products to markets abroad for as much as 19.5 dollars a kilogramme.
"The main challenges in this industry are the supply of livestock and price escalation of fodder," said Kassahun. With the aim of easing some of these issues, Ed Stelar has been working with cooperatives on a backwards integration project on its part, with the aim of improving the quality and quantity of livestock they supply. But this initiative has been curtailed by the COVID-19 pandemic.
Samuel Assefa (PhD), an expert in the livestock industry for over two decades and currently working as a freelance consultant, is of the opinion that a lack of government attention to livestock, as evidenced by not allocating land for ranching, is preventing the country from maximising its potential.
"The issues faced by such value-adding plants can be attributed to the underdeveloped ranching sector in Ethiopia," said Samuel, citing that proper investment can double the country's income from meat export ventures. He recommends that a separate ministry be instituted to govern and regulate the livestock industry, citing that the current structure under the Ministry of Agriculture is inefficient.
PUBLISHED ON Jul 24,2021 [ VOL 22 , NO 1108]
Fortune News | Mar 20,2021
Radar | Jan 03,2021
Radar | Dec 05,2018
Fortune News | Apr 12,2020
Fortune News | Nov 29,2020
Radar | Apr 26,2019
Radar | Apr 25,2020
Radar | Jul 18,2021
Fortune News | Jun 23,2019
August 28 , 2021 . By HAWI DADHI
The streets of Addis Abeba are as varied as they are many, although too many of them have yet to be named. From the narrow alleyways of the...
August 7 , 2021
There are a few without an opinion on Ethiopia’s federal structure, which is arranged along lingo-cultu...
July 24 , 2021
There was an alarming increase in the price of Teffin August 2017. It suddenly skyrocketed from 2,000 Br...
June 26 , 2021 . By HAWI DADHI and SAMUEL BOGALE
This past Monday was the second time Belay Zerihun, a second-time voter, has had to stand in a long queue...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...
October 9 , 2021
Public offices have been having a field day in the past few years. From the Prime Min...
October 2 , 2021
Ethiopia`s Parliament will pick up a Prime Minister on Monday, October 4, 2021. The i...
September 26 , 2021
There are two editions of The Economist on Africa influenced by the narrative on the...
September 18 , 2021
It could be customary to wish well for the holiday seasons. If only the New Year cele...
PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize
May 6 , 2019
Ethiopia is experiencing a nationwide social crisis unlike any other the young genera...
We have all heard it said, “looks can be deceiving,” which is often used to refer to something that seems good on the outside but does n...
Or see contact page