Grain Sourcing for Poultry Feed

Ethiopia: Grain Sourcing for Poultry Feed, 2019 – 2021

Client: International Finance Corporation (IFC)

Goal

To design and implement an input sourcing business model for a private animal feed manufacturing company that would be replicable to other companies.

What we do

The Ethiopian feed sector is faced with several constraining factors:

• Shortage of feed and feed ingredients for the production of affordable quality compound feeds
• Increasing price of feed ingredients and compound feeds: with prices for feed constantly changing
• Limited knowledge/technology, experience, capacity of, and capital for compound feed producers
• Limited animal feed quality and safety analytical services and control mechanism
• Import dependency on feed supplements (premixes, minerals, vitamins)

IFC contracted EUCORD to identify potential maize and soy producers and design a sustainable input sourcing business model for a private animal feed manufacturing company and link producers to this company. Specifically, EUCORD will perform the following major activities:

• Identify and assess farmers’ production and supply capacity, supplier selection and design sourcing model
• Assess training needs, develop module and provide training
• Facilitate contract farming agreements for sustainable market linkage between suppliers and the company

Accomplishments

• EUCORD identified 41 potential suppliers from 5 zones in the Amhara and Oromia regions and Addis Ababa area for maize and soya meal
• Agri-business leadership training (ALP) was provided to 41 maize and soya meal suppliers in Amhara, Oromia and Addis Ababa area
• EUCORD facilitated agreements with unions, private traders and soya processors for the supply of maize and soya products to EthioChicken
• A visit to EthioChicken’s factory was organized for 12 suppliers from Amhara, Oromia and Addis Ababa
• Coaching sessions were conducted for 33 participants from Amhara, Oromia and Addis Ababa based maize and soya meal suppliers. It was facilitated by EUCORD and EthioChicken staff and hosted by the Ambo and Admas unions and Kunifera agro-processing Plc