A. FOOD 1) Soya Sauce Brewing Plant

A. FOOD

1) Soya Sauce Brewing Plant

Soya sauce is a product made from soya beans. It contains exceptional natural

delicacy which is brought forth by the intervention of all sorts of amino acids

originating from brewing and melting of these amino acids with other

ingredients.

Presently, there is no local production of soya sauce. Thus it will have a

potential market within the region and in other regions of the country.

Major raw materials are soya bean or de-fatted soya bean, wheat, and salt.

The production process involves steaming and cooling of soya bean; roasting,

cooling and crushing of wheat; dissolving and cooling of salt; mixing;

fermentation; pressing; sediment separation; blending; pasteurization; filtration;

bottling and dispatching.

The project requires capital investment of about Birr 15 million and can create

employment opportunities for about 30 people.

The manpower requirement of the project is categorized as medium.

The plant will have a backward linkage effect with the agriculture (cereal

production) sector.

2) Soya Flour

Soya proteins are available on the market in the form of defatted flours, protein

concentrate, protein isolate and seldom as whole flour. Whole soybeans flour

is a more balanced meal than balanced flour milled from other cereals because

the calorific value of the oil is 2.2 times higher than sugar or other

carbohydrates.

The fact that the oil is left in the flour makes the business more profitable,

because 20% of the flour is oil, which is sold together with the proteins at a

higher price than pure oil. Soya flour has a higher sales value than refined soya

bean oil.

Major raw material is dried and unclean Soya bean from which impurities such

as soil, stones, leaves, broken and split beans should be separated.

The production process involves cleaning, drying and dehulling, separation of

hulls from the cotyledons, preconditioning, extrusion, drying and cooling,

milling and dispatching.


employment for about eleven people.

The plant will have a backward linkage effect with the agriculture (cereal

production) sector.

3) Jam and Marmalade

Jam and marmalade are bread dressing food items served alone or together with

margarine or fresh butter. Jam is prepared by boiling fruit with sugar to yield

thick consistency. Marmalade is a jelly like preserve produced from the pulp

and rind of fruits. These products are packed either in glass containers or

metallic cans in a standard sizes of 50 grams and 240 grams. Jam and

marmalade are widely used by households, hotels, restaurants, boarding

schools and hospitals.

The demand for jam and marmalade is growing with urbanization and change

in consumption habits. They are supplied to the domestic market through local

production and imports. The demand for jam and marmalade in the past seven

years has been found to increase by about 15%.

The major raw materials are orange, mandarin, lemon, sugar and citric acid.

The production process involves washing, screening, peeling, pulping, mixing,

cooling, packing and dispatching.


employment for about 40 people.

The plant will have a backward linkage effect with agriculture and a forward

linkage effect with hotels, restaurants, boarding schools etc.

4) Dehydrated Fruits and Vegetables

Dehydrated and preserved fruits and vegetables are concentrated products.

There are many kinds of fruits such as tomato, orange, apple, grape, mango,

banana, etc. Dehydrated fruits and vegetables can also be different according

to the kind of fruits.

It is to be noted that due to the seasonality of the yield of fruits such as tomato

and orange as well as preservation and transportation problems, the demand is

not satisfied all year round and most markets remained untouched. The product

could be sold locally and can be exported to the neighbouring countries as well.

The major raw materials are fruits such as raw tomato, orange etc.

The production process involves weighing, storage, washing and selection,

scalding, peeling, juice extraction, decking pasteurization, concentration,

blending, cooling, filling, freezing, packing and dispatching.



The plant will have a backward linkage effect with agriculture.

5) Composite Flour

Composite flour is a mixture of products obtained by milling of cereals or

legumes or the combination of both . Cereals such as sorghum, wheat, barley,

maize and legumes like beans, peas, syabeans are used for composite flour

processing.

Dubbe is the current composite flour available in the market. Though the

demand for dubbe is on the rise, the supply did not match the demand. The

demand for composite flour in the past has increased by about 30% per year.

The major raw materials are sorghum, wheat and other cereals.

The production process involves cleaning, scouring, weighing, damping,

grinding, sifting, purifying, mixing, inspecting, weighing, packing and

dispatching.



The plant will have a backward linkage effect with agriculture and a forward

linkage effect with hotels and restaurants.

6) Baking Powder

Baking powder is a mixture of sodium bicarbonate, one or more acid

ingredients, and an inert ingredient, which serves to keep the reactive

components physically separated and minimizes premature reaction in the dry

state.

The demand for the product is met through import.

Major raw materials are sodium acid phospate, sodium bicarbonate and starch.

The production process involves blending, mixing, packing and dispatching.

The project requires capital investment of about Birr 1.3 million and can create


The plant will have a backward linkage effect with chemical industries.

7) Poultry Feed

Poultry feed is a product with high feed value and prepared from various

materials including cereals, oil cake, molasses, vitamins and others.

Poultry population in Ethiopia is higher than any category of the livestock

population. The feeding rate of these birds is about 115 gm of poultry

feed/bird/day. The demand for poultry is expected to grow significantly.

The major raw materials are oil cake, wheat, molasses, maize, barley, salt,

vitamins, minerals and bone meal.

The production process involves heating, melting, separating, filtering, filling,

labeling, packing and dispatching.



The plant will have a backward linkage effect on oil meals, cereals production

and sugar mills and a forward linkage effect on poultry farms.

8) Biscuits

Biscuits are food items with greater nutritive value than plain bread of equal

weight manufactured in industry. Biscuits are classified as hard, soft and

“batter” biscuits.

Demand for biscuits is met through local production and import. The major

consumers of biscuits are largely assumed to be urban households. It is

expected that biscuits are consumed by children and generally by those

individuals below 19 years old. The potential market for biscuits has a wide

coverage.

The major raw materials are wheat flour, margarine, sugar, salt, milk powder,

bicarbonates of ammonium and sodium, honey, egg etc.

The production process includes, mixing, kneading, fermenting (leavening),

laminating, punching, baking, cooling, packing and dispatching.

The project requires capital investment of above Birr 15 million and can create


The plant will have a backward linkage effect on flour mills, honey processing,

poultry farm and the like.

9) Canned Fruits

Canned fruits and vegetables are washed, salted, steam-filled and sterilized

products having extended shelf life. Canning adds taste and makes the

products available for a long time after they are harvested.

The consumers of canned fruits and vegetables are middle and high income

households and the service giving sector such as hotels, restaurants and

institutions like schools, hospitals, national defense and others. The demand

for canned fruits is met through import.

Major raw materials are fresh fruits and vegetables from farms.

The production process includes sorting, drying, scalding, pulping, peeling,

chopping, packing and dispatching.



The plant will have a backward linkage effect with fruit plantations and a

forward linkage effect with service giving sectors such as hotels, restaurants,

hospitals and the like.

10) Powdered Milk

Powdered milk is a product obtained after driving the water out of the milk

(cow milk) so as to get the solid part. It has fat, protein and vitamin. For

consumption purpose powdered milk is hydrated with cold or hot water. The

fat part of milk in a semi-solid form is butter.

Powdered milk and butter are human diets. So the users of powdered milk and

butter are households, institutions like schools, national defence and hospitals.

The demand for powdered milk increases with urbanization and population

growth.

The major raw materials are fresh cow milk and additives.

The production process includes fresh cow milk collection, filtering, cooling,

pasteurizing, recooking, skimming, concentrating, spraying, filling, packing

and dispatching.



The plant will have a backward lineage effect with dairy farms.

11) Hot Sauce

Hot sauce is a product processed from hot fruits and used to improve the taste

of food both at home and in restaurants.

In the Ethiopians’ habits of eating, hot fruits like pepper, chili, mustard and the

like are very common. Thus hot sauce has high local demand in every

household and restaurants serving traditional dish.

The major raw materials are green chili pepper, onion, garlic and salt.

The production process involves washing, cutting, stripping, trimming, frying,

pulping, chopping, mixing, smearing, boiling, cooling, filling, packing and

dispatching.

The project requires capital investment of about Birr 150 thousand and can

create employment for about 20 people.

The plant will have a backward linkage effect with horticulture.

12) Potato Chips

Potato chips are food items which are very popular for picnics and may be

served at any time as snack food. Potato is a seasonal vegetable. Therefore, in

order to meat the requirement for potato chips throughout the year, the potato

chips should be made during that very season only and stored.

Potato chips are sold in big and small groceries found in various towns of the

country. The users are the urban population.

The principal raw material is potato. Vegetable oil is also used for frying the

chips.

The production process includes pealing, cutting into chips, washing, heating,

cooling, dehydrating, packing and dispatching.



The plant will have backward linkage effect with horticulture.

13) Iodized Table Salt

Common salt or sodium chloride treated with iodine is specially produced for

human consumption. The iodine content present in each kilogram of salt is

around 70-100 mg which is adequate to prevent the formulation of goiter in the

neck.

The product has a growing demand especially among the urban households and

hotels.

The major raw materials are un-crushed salt and iodine.

The production of iodized table salt is technologically very simple. It involves

storage of incoming salt from brine water lakes or ore, crushing, mixing with

iodine, packing and dispatching.

The project requires capital investment of about Birr less than Birr 5 million

and can create employment for about 25 people.

The plant will have backward linkage effect on salt ores or brine water of

mineral sector and forward linkage effect on hotels, restaurants and households.

14) Dried Eggs

Dried eggs are products obtained by spray drying of the whole eggs to a fine

powder. Hot air is driven by fan through heating coils to the drying chamber.

The air comes in contact with the atomized eggs pumped in to the chamber

under high (1500-6000 lb/sq. inch.) pressure. The eggs are dried and dropped

to the floor as powder.

Packing can be made of plastics, fiber boards with aluminum liners, or drums

with inner liners, but all containers must be degassed. Dehydrated eggs when

packed must be sealed. The product is widely used as an input to other food

processing industries. The product has a growing demand both in the foreign

and local markets.



The plant will have a backward linkage effect on poultry farms and foreward

linkage effect on food processing industries.

15) Chicken Dressing and Packing

Dressed and packed chicken is a meat product prepared in a plant to make it

ready for use in hotels, restaurants and households as well.

After slaughtering the chicken feathers are removed in hot water. The dressed

chickens are washed in running water and cooked in steam under pressure.

After cooking, the skin and bones are removed. The meat portions are arranged

in trays and deep-frozen at–20oc. Then the meat is dried and arranged for

packing. The frozen dried chicken is packed with an appropriate packaging

material for shipment.

The project requires capital investment of about Birr 1.5 million anc can create


The plant will have a backward linkage effect on poultry farms and forwared

linkage effect on restaurants, supermarkets, etc.

16) Bakery

Bread is an edible item made of a dough of flour or meal from grain with added

liquid, shortenings, and leavening agent, the dough being kneaded, shaped,

allowed to rise, and baked. Bread has become very common item of food these

days thoroughout the world because of the ever increasing population.

Increased urbanization and industrialization influences the consumption pattern

of the population and gradually improves the total market for bakery products.

The main ingredients used in bread making are flour, salt, yeast and water.

The production process comprises ingredients mixing, dough kneading,

weighing and dividing, rounding (forming), proofing, baking, cooling, packing

and/or dispatching.



Bakery has a backward linkage effect with flour mills.

17) Baker’s Yeast

Yeast is an essential substance in dough preparation for making bread. Yeast,

in the process of bread making increases dough volume, develops structure and

texture in dough, imparts distinctive flavour and enhances the nutritional value

of bread.

The country’s requirement for baker’s yeast is entirely met through import.

The major competing suppliers are France, The Netherlands, United Kingdom,

Spain, Denmark, Germany and Jordan. The demand for baker’s yeast increases

with the increase in bakeries and biscuit factories.

The single raw material required for manufacturing baker’s yeast is molasses.

Sulphuric acid, sulphates and phosphates of ammonium and ammonia water are

among the auxiliary materials required by the project.

The production process involves mash (molasses) preparation, fermentation,

cream separation and storage, yeast filtration, drying and packing.

The project requires capital investment of more than Birr 15 million and can


The plant will have a backward linkage effect on sugar mills and a forward

linkage effect on bakeries and biscuit factories.

18) Vinegar

Vinegar is an important condiment and preservative which is produced through

the action of acetic acid bacteria on dilute solutions of ethyl alcohol derived

from a previous yeast fermentation in sugar solution or fruit juice.

It may also be produced from fermented agar, fruit juices or other fermented

alkalic solutions derived from barley malt, hydrolysed cereals and starches or

other carbohydrates. It contains about 4 to 5% acetic acid, colouring matter,

salts and few other fermented products which impart characteristic flavour and

aroma to it.

Vinegar is used in food processing industries such as sauce, pickle etc. and also

directly by the consumers in making chutney, salads etc. Thus vinegar has its

uses both in urban households as well as industries, hotels and restaurants.

The current demand for vinegar is met through both import and local

production.

The major raw materials required are fruits, yeast, sugar, acids, colours and

chemicals.

The production of veinegar requires simple technology. It involves the

following operations.

- heating and then cooling of fruit juice or sugar solution.

- adding cake yeast after crushing and mixing it with the solution.

- keeping the closed glass jar of mixed solution in a dark warm

place for 3 to 4 days.

- mixing with fresh juice or sugar solution in a ratio of 1:10 and

keeping it in warm place for further fermentation.

- separation of the fermented liquid from solids by the process of

syphoning.



The plant will have a backward linkage effect on fruits production and sugar

plants.

19) Dry Milling of Maize (Whole Maize Flour)

Wet milling of maize is a highly sophisticated and capital-intensive process.

Pounding, the traditional household method for the production of maize meal,

on the other hand, is very wasteful. Dry milling of maize, therefore, offers the

alternative as it is a low-capital operation and greatly reduces waste.

Maize is a staple crop among the lowlanders which is produced into maize

flour by using the traditional pounding technique of mortar and pestle.

Dry milling of maize results in whole maize meal. This is advantageous over

pounded maize flour as the hard and tough peels and embryos are thoroughly

broken up and incorporated in the meal together with the starch. The starch

provides calories for energy but the peels and embryos supply oil and protein,

giving a balanced diet. Dry milling of maize is a relatively simple operation,

as it only requires typical hammer- or disc mills.

The project requires capital investment of about Birr 1.5 million and create

employment for upto 20 people.

The project will have a backward linkage effect on the agricultural sector.

20) Soya Bean Milk

Soya bean is an important food material with 40% protein, 23% carbohydrates,

20% edible oil with sufficient quantity of minerals and vitamins. Soya milk is

a nutritious product produced from soya bean.

Soya bean milk can be used as a substitute for cow milk and it is believed that

it has high demand in the market.

The basic raw materials required are soya bean, sugar, citric acid, salt and

flavour. The region has suitable agricultural land for the production of soya

bean which is the major raw material. Sugar and salt are available locally.

The production process involves cleaning, soaking, feeding, pressing, filling,

seaming and packing. The technology is also environmentally friendly.

The project requires capital investment of less than Birr 5 million and can


The plant will have a backward linkage effect on the agricultural sector.

21) Fruit Juice Processing and Packing

Fruits and vegetable products range from fruit pulp, fruit juice and fruit juice

concentrate to puree and paste. Fruit pulp and concentrate are mainly used in

manufacture of mixed fruit beverages, ice cream, yoghurt and baby food.

Since processed fruit juice is more resistant to decomposition by micro-

organisms, besides its nutritive value, it has demand in the market. Current

demand for processed and packed fruit juice is largely met through import.

The product has also an export potential in the future.

The main raw materials required are papaya, mango, tomato and other fruits

which are available in the region.

The production process involves ripening (storing until the fruit ripens),

washing and sorting, puree extraction, refining and pre-heating, concentrating,

sterilizing, filling, seaming and packing. The project does not have negative

impact on the environment.

The project requires capital investment of more than Birr 15 million and can



22) Tea Processing and Packing

Tea is a shrub ( Camellia simensis) cultivated from antiquity in China and now

in countries like Japan, India, etc and having lanceolate leaves and fragrant

white flowers. Processed tea is the leaves, leaf buds, and internodes of this

plant prepared and cured for the market.

Tea has an increasing high demand in the local and foreign market.

The principal raw material required for production of processed tea is the

leaves, leaf buds and internodes of the tea plant. The region has a huge

potential for the development of tea plantation.

The production process involves converting young fresh tea shoots into dry tea

by plucking, withering, crushing, fermenting, firing, cleaning, sorting, grading

and packing. The process does not have negative impact on the environment.



The plant will have a backward linkage effect on tea plantations

23) Sesame Oil

Sesame oil is a pale yellow bland semi-drying, fatty oil obtained from sesame

seeds and used chiefly as an edible oil (as in margarine), as an input for

various pharmaceuticals, and in cosmetics and soaps as teel oil, etc..

Since sesame oil is used in household and industries, it has high demand in

domestic market. Its by-product, cake, is also an important animal feed which

has high demand in the market.

The principal raw materials for production of sesame oil are sesame seeds

which are produced locally in the region.

The production process involves drying, cleaning, pressing, filtering, filling,

sealing, labeling and packing. The process does not have negative impact on

the environment.

The project requires capital investment of less than Birr 5 million and can


The plant will have a backward linkage effect on agriculture and a forward

linkage effect on pharmaceuticals, soaps, cosmetics producing plants, animal

feed processing etc..

24) Spice Processing

Spice is an aromatic or pungent plant product used in cookery to season and

flavour food. Spices commonly used in cooking and pastry are pepper,

mustard, cinnamon, nutmeg, all spice, ginger and cloves.

Spices are items which have high domestic demand and export market.

The raw materials required for the project comprise pepper, cinnamon,

mustard, nutmeg, turmeric, all spice, ginger, cloves and oil robin which can be

obtained from the region.

The production process involves drying, cutting, grinding, separating, cleaning,

extracting, dissolving, cooling inspecting and packing. The project is

environmentally friendly.

The project requires capital investment of up to Birr 15 million and can create


The plant will have a backward linkage effect on horticulture and a forward

linkage effect on food processing industries.

25) Milk Collection and Processing

Milk is a white fluid secreted by the mammary glands of female mammals for

the nourishment of their young and holding in suspension fat, protein, sugar

and inorganic salts in varying proportions. The major outputs of the project will

be pasteurized milk, butter, cheese etc.

Milk as a highly nutritive drink has a demand by general households, hospitals

and schools. The other products of milk such as butter, cheese, etc are also

highly demanded by the middle and high income groups of the population.

The principal raw material required by the plant is raw plain milk which is to

be collected from farmers.

The production process involves cooling and storage, inspection, clarification,

preheating, homogenizing, sterilization, cooling, filling, sealing, packing and

dispatching. The process is environmentally friendly.

The project requires capital investment of up to Birr 15 million and can create


The plant will have a backward linkage effect on dairy farms.

26) Honey Processing

Honey is the sweet substance produced by honey-bees from the nectar of

blossoms or from secretions of living parts of plants which they collect,

transform and combine with specific substance, and store in honey combs in

the hive. Honey consists essentially of different sugars such as glucose and

fructose, proteins, amino acids, enzymes, organic acids, minerals, etc. Its

colour varies from nearly colourless to dark brown.

In Ethiopia, honey is used almost everywhere for the preparation of the

favourite national drink called 'tej' and also for food in the form of bread-

spread, as sweetner in home baking and medication. Thus honey has an

increasing demand in the domestic and foreign market.

The principal raw material required by honey processing plant is crude honey.

However, sanitary chemicals, filter aids, etc are also used. As the major raw

material is honey, which is abundantly available in the region, there will not be

a supply problem.

The honey production process involves heating, melting separating, filtering,

filling and labeling, packing and dispatching.



The plant will have a backward linkage effect on bee-keeping and forward

linkage effect on user industries.

27) Tomato Ketchup

Tomato ketchup is produced by processing fresh tomatoes This product with

additives has high acidity taste and rich flavour.

Tomato ketchup is consumed by households, restaurants, hotels, schools,

hospitals, etc. The sole domestic supplier of tomato ketchup is the Merti

Horticulture Processing Plant while imports come from different countries. As

the urban population is the main user of industrially processed tomato ketchup,

the demand for the product increases with the increasing urban population.

The main raw materials are fresh tomato and sugar. All raw materials can be

obtained from the region and other regions of the country.

The production process includes sorting, washing, scalding ( blenching),

peeling, pulping, cooking, milling, filling, sealing, pasteurizing, cooling,

labeling, packing and dispatching. The process does not have negative impact

on the environment.



The plant will have a backward linkage effect on horticulture farms.

28) Flour Mill

Flour is a commercial product which is finely ground meal of wheat and/ or

other cereal grains such as maize, rice, barely, rye, etc. obtained by milling and

sifting different streams. In most cases, commercial flour is made mainly from

wheat, maize or rice. Flour contains various nutrients such as starch,

carbohydrates, minerals, proteins and others. Apart from human consumption

the by- product, bran, is an essential animal feed.

The demand for flour is expected to increase as a result of establishment of

several bakeries and pastries, pasta manufacturing plants as well as change in

the eating habits of the increasing urban population in favour of using oven-

baked industrial products.

The principal, raw materials are wheat and other cereal crops. If appropriate

measures are taken to improve the agricultural sector of the region it is possible

to supply the necessary inputs.

The production process comprises pre- cleaning, cleaning, tempering ,

grinding, sifting, purifying, entolating, blending, packing and dispatching. The

process is environmental friendly.

The project requires capital investment of upto Birr 15 million and can create


Flour mill has a backward linkage effect on cereal production and a forward

linkage effect on bakeries, biscuit and pasta factories, cattle fattening units,

etc..

29) Baby Food

Baby food is a supplementary food prepared for children which are below the

age of two years for the purpose of relieving mothers from intensive breast-

feeding. It is prepared from a mixture of pulses, cereals and fruits and contains

major nutrients such as carbohydrates and proteins.

The local production of baby foods could not satisfy the growing demand, and

the gap is filled by imported products.

Major raw materials are corn, sweet potato, soyabean, peas, milk and fruits

which can be obtained in the region.

The production process comprises, cleaning and separation, weighing, roasting,

scouring, milling, mixing, packing and dispatching. The technology is




The plant will have a backward linkage effect on agriculture (cereal production

and dairy farms).

30) Coffee Roasting, Grinding and Packing

Coffee is a common name for any of genus of trees of the madder family, and

also for their seeds ( beans) and for the beverage brewed from the beans.

Arabica and Robusta are the two major types of commercial coffee.

Almost every household in Ethiopia has the habit of drinking coffee, which

also increases by the increasing population.

The principal raw material is green coffee which can be available in the region.

The production process involves roasting, cooling, grinding, weighing, packing

and dispatching. The process is without any environmental hazard.



The project will have a backward linkage effect on coffee plantations and

coffee cleaning units.

31) Corn Flakes

Corn flakes are mainly breakfast food items and have become very popular on

account of their palatability and nutritional value as they make complete food

with milk.

The demand for fast foods increases with the urbanization and mobility of

people from place to place.

The major raw material is maize flour which can be obtained in the region.

The production process comprises cleaning, sintering and polishing, boiling,

cooking, re-heating, flacking, baking, packing and dispatching. The project

does not have any negative impact on the environment.




32) Margarine

Margarine is a butter-like product obtained by mixing vegetables and animal

fats with or without milk. It is widely used as a table spread in bakeries,

pastries and as ingredient in various food preparations.

The product has a growing demand as a result of growth in urbanization and

change in the eating habits of the population.

The major raw materials are dehydrated oil and fat, milk and emulsifying

material. These inputs can be obtained in the region when the other projects

identified are implemented.

The production process involves mixing and homogenizing, sterilizing of

emulsion, blending, cooling, kneading, filling, forming, packing and

dispatching. The process does not have negative impact on the environment.

The project requires investment capital of upto Birr 8 million and can create


The plant will have a backward linkage effect with oil factories and dairy

farms.

33) Pea Canning

Dried pea canning is preferred to fresh pea canning, because of unstable high

quality of packing of fresh pea. Dried peas are highly proteinous food items

which can be consumed in roasted, boiled and other forms.

There is an increasing demand for processed and packed peas specially in the

Middle East and Djibouti. There is also local demand for canned peas in the

major urban centers of the country.

The production process involves separation, cleaning, weighing, dozing,

sealing, labeling, packing and dispatching with out any environmental impact.

The project requires investment capital of upto Birr 8 million and can create


The project will have a backward linkage effect on agriculture.

34) Fish Canning

Processed fish products comprise fish sauce and dried fish. Fish is a highly

perishable food item that requires processing in various types. The demand for

processed fish will increase as a result of urbanization and income rise.

The region has high potential for fish production and supply of raw material

will not be a problem.

Production of fish sauce involves blending of minced meat of fish with a small

amount of lard, defreezing of cold fish, cutting to remove tail, fins and

undesired parts, drying, chopping, packing, pasteurizing, cooling and packing.

Preparation of dried fish involves cutting, crushing, cooking by steam,

compressing, disintegrating, drying, cooling, crushing, final cooling and

packing. The environmental effect of the project is tolerable.

The project requires capital investment of upto 15 million and can create


The plant will have a backward linkage effect on the fishing sub-sector.

35) Ground Nut Butter

Ground nut butter is yellowish brown butter like product made from ground

nuts. It is made essentially from cleaned, graded, blanched, roasted and

crushed groundnuts containing about 45% oil and over 25% proteins.

Ground nut butter is used in the production of sandwiches, candy, bakery

products, insecticidal formulations, etc..

The demand for the product is expected to grow with urbanization and the

consequent change in consumption habit.

The major raw materials are ground nut, salt, sugar, emulsifier, preservatives

and antioxidants. The region has huge potential for the supply of ground nut

which is the major raw material. Salt and sugar can be obtained locally.

The production process involves decorticating, roasting, blanching, grinding,

paste forming and packing. The process is environmentally friendly.



The plant will have a backward linkage effect on agriculture and a forward

linkage effect with food processing industries.

36) Meat Processing and Packing Plant

Canned meat is a product prepared from goat, beef, sheep, pig, poultry and

other ingredients used for preserving and giving suitable taste. Processed and

packed meat now a days is used in hospitals, hotels, restaurants, clubs and

supermarkets. Moreover, it has an export market potential.

The major raw materials required are meat of livestock and table salt. The

resource assessment indicated that there is a considerable amount of livestock

that could support a meat processing plant.

The production process involves medical check of animals, slaughtering,

inspection, washing, chilling, dressing, cutting, weighing, packing into cans,

soaking into salt water, seaming, cleansing, sterilizing, labeling, packing and

dispatching. The environmental impact of the project is small which is

tolerable with minor protective measures.

The project requires capital investment of upto Birr 15 million and create


The plant will have a backward linkage effect on livestock sector of the region.

37) Macaroni and Pasta

Macaroni is flour paste extruded, short-cut and dried tubular product. Special

macaroni can be made by adding eggs, spinage or other ingredients into the

flour paste. Pasta ( spaghetti) is flour paste formed into long thin shape by

extrusion, stripping and drying.

The demand for macaroni and pasta is met through both local production and

import. Demand is believed to increase with urbanization and change in the

consumption habit of the population.

The principal raw materials required for making macaroni and pasta are

semolina (flour), water and additives such as eggs, tomato paste, spinage, etc in

case of special macaroni or pasta. All the raw materials are obtainable within

the country.

The production process involves mainly resifting, mixing, extruding, shaping,

cutting, drying, cooling, packing and dispatching. It does not have negative

impact on the environment.



The macaroni and pasta producing plant will have a backward linkage effect on

semolina or flour mills.

38) Oleo Resin from Pepper

Spice oleo resin is the most concentrated liquid form of spices and hence it

reproduces the character more than spice oils. Spice oils are the steam distilled

volatile oils made from spices, rich in characteristic aroma. Spice oleo resin is

mainly used as flavouring agent.

Spice oleo resin from pepper has a local demand and export market.

The principal raw material required by the project is pepper which is available

in the region.

The production process involves distillation, drying, solvent extraction,

removal of solvent from miscella, drying, mixing and packing. The process is




The plant will have a backward linkage effect on agriculture and forward

linkage effect with food industries.

39) Mineral Licks

Mineral licks are supplementary animal feed components prepared in a

cylindrical shaped blocks which are useful to enrich the feed with desirable

minerals.

Even though the country has a large number of cattle, there is no mineral licks

producing plant except a very old one in Awash with very small production

capacity. It is therefore believed that there would be a high demand for the

product.

The major raw materials are salt, bone meal, molasses, lime, copper sulphate,

zinc sulphate and cobalt suplhate. Most of the raw materials can be obtained

locally.

Production of mineral licks needs very simple technology and involves salt

grinding, weighing, blending, shaping, drying, storing and dispatching. The

technology has no negative impact on the environment.

The plant requires investment capital of about Birr 850 thousand and can create


The plant will have a backward linkage effect on input supplying industries and

forward linkage effect on the livestock sector.

40) Animal Feed Processing Plant

Animal feed (Concentrate feed) is balanced feed for the livestock that is used as

supplementary feed to grass or straw hay.

The demand for animal feed will tremendously grow with the development of

dairy and cattle fattening units.

The major inputs are sorghum, maize, bone, meat by-products, wheat bran, salt,

etc.. Most of the raw materials can be obtained within the region.

The production process involves raw materials preparation, primary crushing,

assorting and measuring, mixing, fine crushing, pellet making, packing and

dispatching. The plant has no negative environmental effect.



The project will have backward linkage effect on cereal production, abattoir,

flour mills and forward linkage effect on the livestock sector.

41) Mini Sugar Plant

Sugar is a crystalline sucrose extracted from sugar cane, sugar beet, and to a

lesser extent from sorghum and maple. Sugar from sugar cane ranks second

best in sweetness. The industrial practice in Ethiopia is the production of sugar

from sugar cane since its geoclimatic conditions are favoruable for cultivation.

The product is mainly used for direct consumption as well as to prepare other

types of food such as confectioneries and breweries. House holds, foods and

beverage and catering industries are identified as the major categories of

consumers.

The overwhelming proportion of the country's requirement for sugar has been

met through domestic production. Sugar estates at Methehara and Wonji had a

substantial capacity to supply the domestic market. Moreover the recently

completed Fincha Sugar Factory has significantly increased the capacity of

domestic production. However a considerable amount of sugar is imported into

the country. Demand for sugar depends on population size income and taste.

All these factors indicate increasing trend as a result of which the demand for

sugar is increasing.

The main raw material for the plant is sugar cane.

Essentially sugar processing consists of a series of liquid - solid separations to

isolate the sucrose formed by photosynthesis in living plants. Four basic

processes are involved; juice extraction, purification, evaporation and

crystallization.

The project will require capital investment of upto Birr 5 million and can create


The plant will have a forward linkage effect with the food and beverage

industries.

42) Starch Syrup from Cassava Starch

There are three kinds of starch syrup, acid saccharized syrup, enzyme syrup,

and malt syrup. Starch malt syrup is made by saccharization of cassava starch

with barley malt.

The principal component of this syrup being maltose, it tastes good and has

high viscosity. It is used to make caramels and candies.

Currently, the country's demand for sweet is satisfied through import except

that produced at Wonji Sugar Factory. So the product has a market potential to

substitute the import.

The major raw materials are cassava starch which is available in the region and

barley malt.

The production process is simple and involves cooking of starch and malt,

saccharization, filteration, deactivation and concentration to a given degree.

The by-product can be used as animal feed and is environmentally friendly

plant.



The plant will have a backward link effect on agriculture or starch plant and

forward linkage effect on sweet industries such as caramel, candy, etc.

43) Cassava Starch

Cassava root is very susceptible to spoilage and can only be used as a food if it

is consumed within one upto three days of harvesting. Nevertheless, cassava

root can be transformed into food products like starch that can be conserved for

a long time. Average yield of 21-23% of starch can be assumed for industrial

purposes.

Starch is a supply source of carbohydrate, one of the three essential elements of

food. The starch in the roots of cassava is large in particle and essentially

settles, and moreover the fat and protein existing with starch are small in

quantity, and thus good starch can be extracted comparatively easily.

Industrially, its applications are numerous, and used in more than 300 modern

industries, including the manufacture of textiles, paper, adhesives, insecticides,

paints, soaps, explosives and such derivatives as dextrins and nitrostarch.

Starch production in the country is insignificant. There is one privately owned

starch plant. Majority of the demand of the country is satisfied through import.

So the starch plant will have a high potential market.

The major raw material is cassava root.

The production of starch starts with crushing and grinding the raw material by

wet process to destroy its tissue. In this way the starch in the tissue is extracted

and the fiber and protein are used as animal feed.



The plant has a backward linkage effect on agriculture (cassava plantation) and

a forward linkage effect on sweet, textile, paper, adhesive, dextrine, insecticide,

paints, soaps, explosives etc. industries.

44) Candy Making plant

Belonging to the candy category are those having centers of sugar super

saturated liquid scented with coffee, mint, fruit etc and wrapped in crusts of

sugar crystals; and candies with chocolate coated crusts which wrap centers

containing completely liquefied fondant with or without fragment of fruit

inserted.

Candy is an item of mass consumption that is liked by all children. It is

recognized throughout the world as an important ingredient of a balanced diet.

Combining as it does, sugar and glucose in an easily assimable form, it

provides the best methods of replacing the energy which the human body

continuously spends through physical exertion.

Candy has a demand in urban and rural areas. At present, there are few hard

candy producing factories in Ethiopia. The majority of the demand is satisfied

with the imported product. Production of quality candy in Ethiopia today

stands at an insignificant level. So the plant will have a market potential.

The major raw materials are sugar and water.

The production process is simple and involves boiling sugar with water till it

concentrates; adding flavour, forming candy, packing and marketing.



The plant will have a backward linkage effect on sugar industry.

45) Banana Chips

Banana chips are crispy snack food similar to potato chips. Chips are normally

made from under ripe fruits by frying the slices in oil.

The market for banana chips might be considered to be primarily children of

school age and aged people as well. The demand for the product increases

with an increase in a population of school age children.

The principal raw material required for production of banana chips is green

banana. Vegetable oil is also required for frying. There are two types of green

bananas. One variety is fatter and shorter with a short stem. The end tapers to

a thin point. This banana has a soft skin. The other type is longer and thinner

with a longer stem. The end of the banana as thicker instead of being tapered

to a point. The skin is, harder and thinner. The long type banana is preferred

for producing banana chips.

The production process involves weighing of green banana, peeling, soaking,

slicing, rincing, draining out the water, frying, draining out the oil, cooling,

spicing and packing. The production process is environment friendly.

The project requires capital investment of not more than Birr 2 million and can


The project will have a backward linkage effect with the agricultural second.

46) Cotton Seed Oil

The edible oil from cottonseed contains a high proportion of unsaturated fatty

acids. Crude cotton seed oil is a very dark coloured oil with a pronounced

odour and flavour, but after refining to remove gossypol and related pigments

along with free fatty acid, a light yellow coloured oil is produced. Fully

refined and deodorized cotton seed oil is virtually used as a salad and cooking

oil and when dehydrated, for the production of margarine and shortening. The

cake and meal are used for cattle feed.

The country's requirement for edible oil has been met through domestic

production and imports. The demand for edible oil is influenced mainly by

urbanization and income growth.

The major raw materials are cottonseed, caustic soda, phosphoric acid and

bleaching earth.

The process of oil production involves cleaning, Delinting, decorticating,

breaking, flaking, conditioning, pre-expelling, cake breaking rolling, solvent

extraction, meal treatment, refining (Degumming, Neutralizing, bleaching,

winterizing and Deodorizing), filling and packing.

The capital investment requirement for the oil meal is estimated at about Birr 5

million and will create an employment opportunity for about 50 peoples.

The plant has a backward linkage effect with the agriculture and a forward

linkage effect with food industries.

B. BEVERAGE

1) Winery

Wine, an alcoholic beverage is produced by fermenting the juice of grapes.

Wine is classified in three major categories. Table wines, also called still or

natural wines, are consumed primarily as complements to food. Sparkling

wines, for example champagne, distinguishable by their effervescence, are

drunk for the most part on festive occasions. Fortified wines such as sherry or

vermouth are most commonly drunk before or after meals.

The local demand for wines is met through both local production and import.

The major input required is grapes.

The production of wine involves collection and sorting of grapes, washing,

pressing, fermenting, separation from the spent, ageing, filling, corking,

packing and dispatching.



The plant will have a backward linkage effect on grape plantation and forward

effect on hotels and restaurants.

2) Malt Production

Malt is produced from barely, which is the major raw material for beer

production. Other materials such as wheat, rye, sorghum, or millet can also be

used to produce malt. Of all the possible raw materials, barely has proved to be

the most suitable malt for beer production. To produce 1 hectoliter of beer

having an original extract of 11%, approximately 17 kg of malt is required.

Production of malt involves operations like intake, cleaning, grading and

transfer of barley; drying and storage; steeping; germination; malt kilning;

treatment of malt after kilning; malt evaluation; testing and quality control.

There is only one plant in the country that is engaged in malt production. But

due to high demand gap, Breweries import malt from abroad.

The establishment of malt producing plant is therefore recommendable. Such

an investment venture is better integrated with the development of farmland for

barely production.



The project will have a backward linkage effect with barley production and

forward linkage effect with breweries.

3) Purified Water

The simple definition of water is that it is the liquid that descends from the

clouds as rain or issues from the ground in springs which is a major constituent

of all living matter. Pure water consists of an oxide of hydrogen in the

proportion of 2 atoms of hydrogen to one atom of oxygen.

Purified water filled in PET bottles has high demand in the domestic market.

Currently, the demand for purified water in the region and surrounding areas is

met from factories mainly established in Addis Ababa and its surroundings.

The principal raw material can be raw water either from a spring or a deep

well. Water quality that will satisfy the requirement of the project is believed

to be available in most parts of the region.

The production process involves raw water storage and treatment, filling and

capping, labeling, wrapping and dispatching. Raw water treatment in turn may

include colour removal, pumping, chemicals dosage, filtration, ultraviolet water

disinfection and ozone generation as appropriate. The project also will not

have any negative environmental impact.

The project requires capital investment of over Birr 15 million and can create


The plant will have a forward linkage effect on hotel, restaurants, supermarkets

and household.

4) Alcoholic Liquor

Alcoholic liquor is a beverage usually distilled from various types of grains,

molasses, berries and usually having a relatively high alcoholic content. The

most common liquors in Ethiopia are Gin, Ouzo, Brandy, Cognac, Inat 'na Lij,

and the likes.

The demand for alcoholic liquors is met through local production and import.

Current demand for alcoholic liquor in the region is mainly met from factories

established in Addis Ababa.

The major raw materials required in the production of liquors are potable

alcohol (ethanol 96 º), water, essence and sugar. Potable alcohol, which is the

major raw material, is produced locally by molasses distilleries. The only raw

material to be imported is essence.

The production process of alcoholic liquors comprises mixing of potable

ethanol, essence and other additives as per the desired recipe, agitation,

filtration, bottling, capping, labeling and packing. There will be environmental

impact due to the establishment of the project.

The project requires capital investment of aboutBirr 10 million and can create


The plant will have a back ward linkage effect on potable alcohol producing

plants and forward linkage effect on bars, hotels, restaurants etc.

5) Mineral Water

Mineral water is generally defined as ground water which has at least 1,000 mg

of total dissolved solids (TDS) and/or 250 mg of dissolved carbondioxide gas

per litre.

The demand for the product is growing at very high rate per annum in par with

the current urban population growth of Ethiopia. Currently, the region's

demand for the product is met from very far places of the country.

The resource assessment has indicated the availability of water quality that

could be utilized for the production of mineral water.

The production process involves sedimentation, filtration, carbo-cooling, bottle

washing, filling, crowning, labeling, crating and dispatching. The project has

no negative impact on the environment.

The project requires capital investment of over Birr 15 million and can create


The plant will have a backward linkage effect on CO2 gas producing plants,

crown corks and plastic crates producing factories.

6) Carbonated Beverage

Carbonated beverages are sweetened, aerated and colour-dyed synthetic drinks.

Carbonated beverages are one of the three distinct categories of soft drinks i.e

sparkling water, still beverages and other types of soft drinks.

Market surveys indicate that there is a growing demand for soft drinks in the

country.

The major raw materials are sugar, food colours, citric acid, flavours and

essences, carbondioxide and activated carbon.

The production process comprises bottle washing and sterilizing, syrup

preparation, carbonation, bottling, corking, packing and dispatching.



The carbonated beverage plant will have a backward linkage effect with sugar

mills and other industries.

7) Lemonade

Lemonade is a soft drink which is composed of treated water, a sweetening

agent like sugar, citric acid, lemon flavour, colour and preservatives. The

sweetness and acid ratio varies with the type of flavour and taste desired.

Lemonade, being sweet and non-alcoholic beverage, falls in the category of

soft drinks.

Lemonade, which is a drink made from lemon juice, sugar and water, is

relatively unknown in Ethiopia. The existence of a substantial soft-drinks

market already in the country, thus means that there is a potential space for

positioning this product as well.

The major raw materials are sugar, citric acid, flavour and essence, food

colours, sodium benzoate and others.

The production process involves sugar dissolving, ingredients mixing, cooling,

carbon dioxide dissolving, filling, sealing and dispatching.



The lemonade producing plant will have a backward linkage effect on sugar

mills and chemical industries.

8) Mini Brewery

Beer is a very popular alcoholic beverage produced and consumed in high

quantities throughout the world. Beer brewed in mini-breweries is usually light

in color and well carbonated.

Mini breweries are becoming popular due to the fact that they can brew their

own beer as opposed to the standard beer types brewed as a mass product.

The demand for beer in Ethiopia is met to a greater extent, through local

production although there is some import of famous foreign brands.

The major raw materials required to produce beer are malt, brewing (soft)

water, hops, and yeast. Usually no preservatives are used in mini breweries

giving the beer its special taste and quality.

The production process of beer in a mini brewery involves malt milling; malt

mashing; filtration; wort boiling; wort cooling; fermentation; lagering; and

filtration. The environmental impact of the project is moderate which can be

controlled through installation of minor/ small treatment plant.

Annual outputs of mini breweries range from 10,000 to 20,000 hectoliters

depending on the number of brews per week and on the number of fermenting

and storage tanks.



A. FOOD 1) Soya Sauce Brewing Plant

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