Diaspora, Israeli company team together to meet need for cheap meat
A corporate chicken farm which can produce 24,000 tons of poultry meat per year will be built in Alage, 30km from Adame Tulu at a price tag of USD 20 million.
The chicken farm came to fruition after the Israeli livestock company Agrotop, and Diaspora owned Nutropia Poultry & Feed signed an agreement to start the farm.
According to the deal Agrotop will construct and manage the farm while Nutropia will own the business. The project which will be constructed in four phases will take four years to complete. After the first phase is completed at the end of this year, the farm will begin producing 4,700 tons of chicken meat.
When the farm begins operating it will create over 150 jobs. The chicken meat will be exported to African countries and will be sold to local hotels, restaurants, organizations, supermarkets and individual consumers.
Once completed, the Nutropia project will include a parent stock rearing farm, a parent stock production farm, six broiler farms, a hatchery, slaughterhouse and poultry feed mill.
“One of the main reasons for malnutrition in Ethiopia is the unavailability of cheap animal protein. Currently, only 12 percent of the country’s protein intake comes from animals,” explained Fasika Eyassu, Nutropia’s co-founder. “Nutropia is entering the market with the aim of closing this gap. We aim to restore dignity of mankind by ending hunger and malnutrition. We believe that great businesses tackle great problems.” Nutropia is founded by Fasika Eyassu and Eyob Tesfaye.
Ethiopia’s annual average chicken meat consumption is only half a kilo per year per person as compared to 2.3 kgs per year per person in the rest of Sub-Saharan Africa and 41 kgs per year per person in Peru. With a population of more than 100 million people, Nutropia is well positioned to meet the growing need for cheap and easily obtained protein.
Agrotop is a leading global player in livestock turnkey projects. The company provides a full range of services for realizing livestock and agro-industry construction projects, while focusing on its clients’ visions and maximizing their business results.
USD 20m poultry farm to be built in Ethiopia
Abenezer Feleke
Name: Abenezer Feleke
Education: International certifications in Marketing, Digital Marketing, MSc, BSc.
Company name: Kodastropi Marketing Solutions
Title: Managing Director
Founded in: 2015
What it does: An integrated marketing and communications company
HQ: Addis Ababa, Ethiopia
Number of employees: Six
Startup Capital: 20,000 birr
Current capital: 200,000 birr
Reasons for starting the business: The opportunity present in providing professional marketing services
Biggest strength: Planning, communications, multitasking and management
Biggest perks of Ownership: The thrill of using my own skills and passion for development
Plan: To take the company to a global level and be the leading company in setting pioneer solutions in the areas of marketing
Biggest challenge: The balance between protecting one’s own business interests while keeping the positive relationship afloat with multiple clients
First career: Marketing Representative at a Digital Pay Media TV company.
Most interested in meeting: Barack Obama
Most admired person: PM Dr. Abiy Ahmed
Stress reducer: Movies, travelling, vacations
Favorite past-time: Volunteering and meeting influential people in many professions
Favorite book: The Lord of the Rings by J.R.R. Tolkien
Favorite destination: Italy
Favorite automobile: Mercedes Benz C & S Classes
About privatization
Ethiopia’s economy has been growing impressively over the past ten years or so. There is no denying that as a result we have seen major investments in both the public and the private sector. As fast as the economy is growing, this comes with challenges as well. One of the challenges the country is currently facing is the shortage of hard currencies, which is not surprising as we depend on the import of many goods and materials, all to be paid oversees. Other challenges that the Ethiopian economy faces are the steep inflation and high unemployment rates. Now, in a bold move to deal with these challenges, the Government has recently announced, that it intends to privatize some public owned enterprises, including Ethiopian Airlines, Ethio Telecom, electricity generation projects and the Ethiopian Shipping and Logistics Services Enterprise. Floating minority shares would seem the most obvious modality but mixed ownership or full privatization of some state-owned enterprises are also suggested. The move, which is expected to attract private investors, will mean a major reform of Ethiopia’s economy indeed.
Let us look a bit more into privatization in general. Privatization is commonly defined as the transfer of ownership, property or business from the government to the private sector. The government ceases to be the sole owner of the entity or business. In general, privatization is considered to bring more efficiency and objectivity to the company. One of the objectives of privatisation is, therefore, to transfer ownership to private investors so that the enterprise will become efficient and profitable. The objective of privatisation is based on the view that private sector operations outperform their public counterparts. Also, privatization can simply reduce the size of government. Fewer government workers and fewer people supporting a larger role for government means less of a drain on the nation’s budget and overall economic efficiency.
For decades before the 1980s, governments around the world began taking on a variety of tasks that the private sector previously had performed. Then in the 1980s, public sector expansion began to turn in many parts of the world. Those supporting the shift from public to private management believe that it will boost the efficiency and quality of remaining government activities, reducing taxes, and shrinking the size of government. In the functions that are privatized, they argue, the profit-seeking behaviour of new, private sector managers will undoubtedly lead to cost cutting and greater attention to customer satisfaction. Since the 1990s, throughout the world, governments are turning over to private management the control of everything from electrical utilities to prisons, from railroads to education. Critics of widespread privatization say that private ownership does not necessarily translate into improved efficiency. More important, they argue, private sector managers may not hesitate to adopt profit-making strategies or corporate practices that make essential services unaffordable or unavailable to large segments of the population. A profit-seeking operation may not, for example, choose to provide health care to the needy or extend education to poor or learning-disabled children. A key question then is under what conditions managers will be more likely to act in the public’s interest and this is where Government will have to continue playing an important role in terms of defining the public interest, legislation and designing proper rules and regulations. Privatization will be most effective when management serves the public interest and the best way to align the private sector and the public interest is through competition among potential providers, which may include governmental entities. It is now up to competitors how to respond to the needs and wishes of the public.
Back to the intended privatization of some of the most prestigious and successful Ethiopian enterprises, it will be very interesting to see what modalities of privatization will be chosen and perhaps maybe more interesting, who will be given and who will take the opportunity to invest, buy shares and help shape the future of these enterprises. Unique opportunities will present themselves but who will take them? Will it be foreign investors, multinationals, the diaspora, Ethiopian nationals? The economy will be reformed indeed. Who will benefit?
Ton Haverkort
Degu, Adane, and Abebaw likely to part with St. Geogre
Head Coach Carlos Pinto is tightening his grip on one arm of the Premier League trophy in his very first season with the club, but long serving veteran players the likes of Degu Debebe, Abebaw Butako and Adana Girma are likely to part ways with their beloved Saint George, which has been their home for more than dozen years. Upcoming youngsters like Abdulkerim Mohammed and Ume Mohammed appear to be the future of “The Horse Riders”.
Team skipper Degu who retired from national duty two seasons ago is no longer a regular player in for Salhadin Bargecho is paired with Mentesenot Adane in the absence of Aschalew Tamene due to injury. The same is true of the left wing back famous for his trade mark free kick Abebaw Butako. He is currently replaced by versatile full back Abdulkerim Mohammed. Both Degu and Abebaw are currently regular reserve players waiting for the end of the season before receiving a marching order from Carlos Pinto who is on the verge of the league title. Pinto’s ideology of “Ball Possession” is getting famous with both the players and supporters thus the old guards likely to salute away soon.
Hard working striker Adane Girma also retired from the national team was regularly warming bench before he got a four match suspension for a red card. Ume came in place of him and scored important goals to push up Saint George back to title contention. With Salhadin likely to be back from injury and throwing in one or two foreign strikers, Pinto is sure to spare Adane. But both Adane and Abebaw are most likely to sign for a new club for the new season while Degu might remain loyal to Saint Geogre as a member of coaching staff.
