German life sciences company Bayer is considering establishing a seed processing plant in Ethiopia as part of its long-term plans to expand local production and strengthen agricultural value chains.
The company is already producing seeds through contracts with Ethiopian businesses and farmers. However, it has not announced a firm investment commitment, construction timetable or proposed location for a processing facility.
“We are already producing seeds in Ethiopia through contracts with local companies and local farmers. We absolutely intend to increase that amount and hopefully someday build our own factory,” Bayer Chief Executive Officer Bill Anderson told Capital.
His comments came as Bayer signed an agreement with Ethiopian agricultural technology company Lersha aimed at reaching nearly 750,000 farming households through coordinated access to agricultural inputs, financing, technical advice and markets.
Anderson said Bayer intends to increase the volume of seeds produced locally, with a processing plant remaining a longer-term ambition.
The company’s approach would build on partnerships with local growers rather than rely solely on imported seed supplies.
Bayer has implemented a similar model in Zambia, where a seed processing facility in Kabwe draws on a network of approximately 5,000 local farmers.
According to company announcements, the €32 million facility was inaugurated in March 2025 by Anderson and Zambian President Hakainde Hichilema. Bayer said the investment tripled its maize seed production capacity in the country.
At the time of the inauguration, the company said the high-yielding seeds were expected to reach 6.4 million smallholder farmers across Zambia and other sub-Saharan African countries in 2025, with that figure projected to rise to 10 million by 2030.
Under the arrangement, contracted farmers produce seed that Bayer collects and transports to a processing facility, where it is prepared to meet commercial quality requirements.
A comparable model in Ethiopia could expand opportunities for contracted growers and increase the availability of quality planting materials. However, Bayer has not confirmed a final decision to build a plant.
Anderson said detailed investment figures would need to be obtained from the company’s relevant officials.
Research on Ethiopia’s seed sector highlights challenges in supplying farmers with improved varieties.
Studies examining subsistence-oriented teff cultivation and commercially oriented wheat production have found continued reliance on informal seed sources. They have also identified constraints involving availability, quality and unequal access across gender, age and wealth groups.
A 2026 working paper by the International Food Policy Research Institute and CIMMYT found considerable variation in the average age of crop varieties grown in Ethiopia, ranging from 12.5 years for wheat to 28.2 years for common bean.
The authors linked slow varietal turnover to the continued dominance of older varieties despite the availability of newer alternatives. They said the findings suggested a need for greater investment in seed distribution systems and markets.
Bayer has also advertised a field production supervisor position in Ethiopia, with responsibilities including developing a grower network for commercial hybrid seed production and supervising activities from land preparation to harvest.
The recruitment points to efforts to strengthen local production capacity, although it does not, by itself, confirm a factory investment.
Anderson distinguished Bayer’s approach to local seed production from its pharmaceutical manufacturing strategy.
He said seed production benefits from proximity to the agricultural environments and farming communities in which the products will be used. Pharmaceutical manufacturing, by contrast, can benefit from centralised facilities operating at greater scale.
As an example, he cited Bayer’s aspirin production, saying a single facility produces nearly all of the company’s global supply—approximately eight billion tablets annually.
Distributing that production across several countries could substantially increase costs, potentially doubling manufacturing expenses, he said.
His comments indicated that Bayer’s immediate interest in Ethiopia centres on agricultural activities and local partnerships rather than a pharmaceutical manufacturing facility.
Bayer and Lersha signed their agreement in Gimbichu, Oromia, on November 12, 2026, during Anderson’s visit to Ethiopia.
The partnership aims to reach nearly 750,000 farming households, representing approximately 3.75 million people, according to the companies.
It combines Bayer’s expertise in seeds, crop protection and digital agronomy with Lersha’s digital platform, rural agent network, financing services and market connections.
The initiative is intended to support farmers throughout the production cycle, providing access to financing and inputs before planting, technical advice during the growing season and market connections after harvest.
The companies said the partnership would address barriers facing smallholder farmers, including limited access to affordable finance, quality inputs, technical knowledge and reliable buyers.
“For farmers, progress is ultimately measured in practical terms: a more reliable harvest, a better return on effort, and greater confidence to invest in the next season,” Anderson said.
He said achieving those outcomes requires sustained cooperation, with the companies concentrating on areas where they can make meaningful contributions and remaining transparent about results.
Lersha is expected to use its digital platform and rural distribution network to connect farmers with products, services and markets, while Bayer will contribute agricultural technologies and advisory expertise.
The partnership also includes health-related support through digital advisory services, reflecting what the companies described as the relationship between farmers’ well-being, agricultural productivity and household economic security.
They said healthier households are better positioned to manage farming activities and maintain livelihoods, while improved harvests and more stable incomes can support access to nutritious food and healthcare.
Lersha Chief Executive Officer Abrhame Endrias said the collaboration would connect farmers with a broader range of services rather than agricultural products alone.
“This partnership is about ensuring that farmers are connected not only to agricultural products, but to the wider ecosystem they need to succeed,” he said.
Combining technology, financing, market access and last-mile support with Bayer’s agricultural expertise could create a locally grounded model capable of reaching farming communities at scale, he added.
While the partnership establishes a framework for expanding services, Bayer’s proposed processing facility remains a longer-term possibility rather than a confirmed investment.
