Meat processing firms in Ethiopia are preparing themselves to run a ranch hoping that they could get high quality meat with sufficient amount for the export market.
Many meat processing firms complain about supply shortage and low standard of animals they get from farmers engaged in animal fattening.
Luna Export Slaughter House Plc is among the companies engaged in export of live animals and meat to neighboring and Middle East countries.
Since getting high quality live animals has been a challenge, Luna has decided to fatten the animals itself, the General Manager, Tesfalidet Hagos told ENA.
In addition to low quality of animals, shortage at some time has been also a challenge for the firm that exports 4,000 tons of goat and sheep to Middle East countries per annum.
“The country has favorable agro-ecology and temperature, fertile land, and abundant water. But all these without proper utilization and market chain we cannot benefit from it”
The traditional means of animal fattening contributed a lot for the low quality of animal.
It is this situation that forced the company to make a request for the government to get a land for a ranch.
Currently Luna Export has obtained five hectare lands from Oromia regional government to run a ranch thereby get enough and quality supply of live animals and meat.
The firm plans to increase its export amount to 5,000 tons this year following expansions activities being carried out with 50 million Birr.
The expansion will enable the firm increase revenue it earn from the export to 25 million USD from 15 or 16 million USD.
According to the Ethiopian Meat Producers- Exporters Association provision of high quality animals is a big challenge for the development of the business.
Unable to get the desired amount and high quality animals have been influencing the export performance of the companies.
Some exporters started to engage themselves on fattening animals to cope up with this challenge thereby increase amount and quality of products, he said.
“Many export-oriented abattoirs have been carrying out expansion activities to increase amount and quality of export. Many firms who were mainly export goat and sheep meat are now working to export beef”, he said.
There are some improvements regarding revenue earning, Abebaw said, but the benefit is not that much satisfactory compared to the country’s potential in the area.
“Unless we meet international standards and requirements, we cannot export meat even if we own the resource. This forced the firms to limit their export only to destinations in the Middle East”, Abebaw said.
Ethiopia is the leading meat exporter in East Africa to Middle East, supplying 18,000 – 19,000 metric tons, whereas Sudan, Kenya and Tanzania have small market share.
Although the country has the largest livestock population in Africa, the foreign currency obtained from meat and dairy products is low due to dependency on few destinations and low quality of animals, said Haileselassie Weres Director of the Ethiopian Meat and Dairy Industry Development Institute.
“Some export-oriented abattoirs are preparing themselves to engage in animal fattening. This will allow firms to export healthy live animals and high quality meat to the market. Firms that are desirous to run a ranch is encouraged to do so”, he said.
International companies are coming to Ethiopia to engage in processing meat and dairy products, seeing the potential in the sector.
Allana Sons, an Indian-based meat processing firm, is establishing processing and export plant, while Euro Food, a France based company has submitted its proposal to engage in animal breeding, milk and meat processing.
The demand for meat and dairy products are depend on the interest of importing country; however efforts are being underway to diversify market destinations, he said.
The government encourages companies desirous to engage in agricultural, dairy products and meat processing.
[EthiopianNewsAgency]