Capital Ethiopia Newspaper

Fafa first to produce powdered milk in Ethiopia

Fafa Foods Share Company, a food complex established 50 years ago to produce a balanced diet for malnourished children under five, has become the first food complex in the country to produce full cream milk powder. The company is also the first to produce Corn Flakes, and Soya Bean Milk. 
Since Fafa Foods was turned over to the new owners, it has come out with ten products including snacks, flour and instant yeast. The introduction of the new products, say the company’s management, has increased the sales turnover which is expected to reach over 200 million birr this budget year. The company has cashed in more than 15 million birr as profit last Ethiopian budget year. This year, it aspires to rake in more than 20 million birr in profit.
“We are working very hard to satisfy the local demand at present. In doing so, we can substitute similar imported products thereby saving the hard currency we pay to import such products. Not only that, we are making sure that we are producing a balanced diet food at a balanced price. Our products are, on average, 40 percent cheaper than those that are imported,” said Berhanu Mosissa (Dr.), Sales and Marketing Director of the Company.    
Besides satisfying the local demand, the company is working to export its products to South Sudan, the Democratic Republic of Congo and Kenya.
Fafa was privatized at a cost of more than 67 million birr to Petram Private Limited Company four years ago, a family owned company engaged in the import and distribution of merchandized goods which is currently turning its face toward manufacturing. In addition to Fafa Share Company, Petram Plc owns Babile Mineral Water, Saba Soap Factory, a real estate company, and meat processing plant currently under construction.
In 1962, Fafa was established to prevent malnutrition problems observed in children under the age of two and was based on a cooperative agreement signed between the Ethiopian Institute of Nutrition studies and the Government of Sweden. At the time, it was a non profit manufacturing plant that produced a balanced diet called Fafa for neglected children in Addis Ababa. It was an act of benevolence extended for neglected children that lived in the towns surrounding Addis Ababa in a 200 Km radius.  After four years of operation, the then Fafa Food Factory reoriented its operation towards a business model that could cover its operation cost. Until 1974, Fafa produced 400 tons of balanced diets per year. At present, the company has an installed capacity to produce more than 21.6 thousand tons of nutritious foods per annum. 
Currently, Fafa Foods has created close to 300 permanent employment opportunities  to citizens while paying millions of birr in business income tax.