Edible oil and agro-processing plants are set to break ground in Benishangul-Gumuz Regional State with a combined investment of 230 million Br from two farmers unions.

For the two plants, the Federal Cooperative Agency (FCA) conducted a feasibility study with the Assosa Farmers Multipurpose Cooperative Union and the Assosa Farmers Cooperative Union last year.

The oil refinery plant, which has a capacity of refining three million litres of oil a year from niger, soybean and groundnut seeds, will be set up by the Assosa Farmers Multipurpose Cooperative Union. The fruit and vegetable processing plant, which produce 16,181tn of tomato and mango products a year, will be established by the Assosa Farmers Cooperative Union.

The oil refinery plant can process 45,000ql, 85,500ql and 19,500ql of niger, soybean and groundnut seeds to produce 1.3 million, one million and 741,000lt of edible oil, respectively, a year. Expected to cost 51.2 million Br, the Development Bank of Ethiopia will be covering 80pc of the investment through a loan. The remaining balance will be in cash equity contribution from the Union.

The country has an annual production capacity of 784,809tn of edible oil with an average per capita consumption of 8.9lt of oil a year. Two years ago, there was a shortfall of 15,532tn of edible oil in the country.

The Agency aims to meet the oil demand and improve the market share of the unions, according to Ayalsew Workneh, public relations director of FCA.

Occupying 2,000Sqm of land, the oil plant is expected to create direct job opportunities for 81 people from the member cooperatives and the local community.

Since the Regional State is known for the production of oil seeds like sesame, niger seed, groundnut and soybeans, the plant will source the seeds from the local area, according to Eshetu Chekole, general manager of Assosa Farmers Multipurpose Cooperative Union.

Established by eight primary cooperatives with 2,674 member farmers who contributed 87,000 Br in capital, the Union is involved in marketing oilseeds, niger oil processing and input distribution. Currently, the number of primary cooperatives affiliated with the union has reached 58 with more than 15,000 member farmers.

The second plant, a mango and tomato processing plant, will have a capacity of processing 18,000tn of mangoes and 10,800tn of tomatoes a year to produce 954tn of mango jam, 13,305tn of mango juice and 1,922tn of tomato paste.