As a country which has a huge potential in animal resource, Ethiopia is home of Africa's largest livestock population. A 2013 Survey by the Central Statistical Agency on country's rural sedentary areas revealed the existence of over 53.99 million heads of cattle and 25.5 million sheep. Despite a stark annual progress, the annual revenue the country gets from the export of meat and meat product stands asymmetrical compared to the potential.

 

In this regard, the Ethiopian Meat and Meat Dairy Industry Development Institute has taken various measurements to scale up nation's beneficiary.

 

It has made notable improvements after identifying sector's bottlenecks. Kelifa Hussien, a Deputy Director General and Investment and technology support Sector Coordinator, said that lack of quality meat products, capacity limitation to penetrate foreign market, limitation in meat processing, livestock trade and contraband are some of the problems prevailing in the sector.

 

To tackle the problems, the institute is upgrading the knowledge and technology of the sector by drawing lesson from international partners such as India. According to Kelifa, the country is also making a great effort to utilize its great potential through attracting foreign direct investment and subsidizing the indigenous companies side by side.

 

The effort is commendable and the country might pass soon through earning the needed income from abundant animal resource. All the meat processing companies visited by journalists were completed over 80 percent and some of them have already started producing. All of them are eyeing on producing quality meat product and earn foreign currency.

 

Alfoz Integrated Livestock Industry PLC is among the meat processing companies that were recently established with government support in land provision and financial loans.

 

Company Owner and Managing Director Ali Hussien said that his company is working in animal breeding, fodder processing, meat and dairy animals ranch, milk processing and the like. And 680 slaughtering capable abattoir is among the company's expanding spheres. As to him, the company has earned some 10 million USD from livestock export. When the expansion project is finalized it would cost a Billion Birr and will earn 50 million USD per annum. Currently, the company could create 200 jobs while it would employ 500 workers when it begins functioning.

 

On the other hand, foreign investors are also involved in the sector by using the subsidies the government affords in land and finance. Allana Sons Frigorifico Boran Foods PLC, meat processing company could be an example to this end. The Indian company is investing in Ethiopia by constructing a 75 million USD cost abattoir lying on 75 hectares land at Adami Tulu town of Oromia State. Allana decided to invest in Ethiopia for two major reasons: due to abundant animal resource and government support for investors.

 

The construction of the company has flickered glimmering future on the nation's meat export. Company General Manager Vijay Dongare said that the realization of the company would assist in improving the quality of life of the surrounding community apart from helping to meet national aspirations. Since the company is furnished with advanced technologies and long-term experience, it will move the nation one stride forward in the sector.

 

The company would export 300 tonnes of processed meat product per day. According to Vijay, the company is eyeing US, Europe and mainly the Middle East as its export destinations. Besides export income and 3,000 jobs, the company would be engaged in community developing through building schools, health institutions as well as supplying potable water.

 

Allana engagement in the Ethiopian meat and meat product industry will be a great move in developing the sector. According to Ethiopian Meat and Dairy Industry Development Institute (EMDIDI) Director General Haileselassie Weres, the establishment of the company would scale up country's technological capacity, knowledge transfer, income generation and job creation, among others.

 

As to him, the expansion of advanced abattoirs and other dairy farm industries would enable the country to utilize its enormous resources in the sector. The government is working in the areas of animal resource development, infrastructure, market availability, curbing red-tape and ending livestock contraband.

 

According to Haileselassie, his institution is working at its level best through facilitating the sector development by creating a conducive environment for those who involved in the industry.

 

He said that the Institute is working together with various governmental financial institutions and city administrations to facilitate land provision and financial loan. Revealing the reason to this all round effort, Haileselassie said that comparing to the abundant animal resource the nation has not been beneficiary as it is expected. Even it was only 19,000 tonnes of meat is that the country could export at maximum rate yet.

 

Last Ethiopian fiscal year, the institute has managed to secure 102 million USD. Therefore, strong effort is crucial to exploit the country's resource to assist the national development drive. A goal has been set to raise the revenue to 156 million USD this year while the amount would hit 400 million USD in five years time, according to information from the EMDIDI.

 

As agriculture is considered to be the main vehicle towards industry-led economy, the livestock sector undoubtedly becomes of greater importance in many respects. It plays roles from creating jobs, increasing hard currency inflow to technology and knowledge transfer. And various incentives are attached to elicit those involved in the sector. This motive brings the expected income and assist nation's move from agriculture to industry-led economy.

Source : allafrica.com