13 January 2013

Ethiopia: New Seed Sifter Plant Opens in Adama

Adag International Plc, a company engaged in the hotel business since 2006, is this week, opening a cereal, oil seed and spice processing plant in Adama, Oromia.

The construction of the factory, which rests on a 4,000sqm plot of land, started nine months ago with a capital of 15 million Br. Adag, owner of Adag Hotel in Wolenchiti, Oromia, 122Km west of Addis Abeba, leased the land for 28,000 Br. Local farmers that were moved from the site were also paid 22,800 Br in compensation, according to Haddis Ayele, manager and major shareholder of the company. The plant building sits on 1,750sqm of the total land.

The plant has the capacity to process 75,000tn of agricultural products a day for export purposes, says Haddis. Adag has imported 300,000 Br worth of used machinery from the United Kingdom.

The company opened the plant after researching the agricultural potential of the region, particularly in cereals, oil seeds and spices, according to Haddis.

Out of the total 51.3 million hectares of arable land believed to have the potential for harvesting agricultural products, only 23.4pc is currently in use, according to a 2011/12 Central Statistics Agency (CSA) annual report. The national yield from this land, for the same year, was 18.8 million tonnes of cereal, 730,880tn of oil seeds and 75,000tn of spices.

Although the country managed to harvest a total of 21.8 million tonnes of agricultural product, in the 2011/12 harvesting season, only 206 companies are engaged in exporting agricultural products by adding value to it, according to the data obtained from the Ministry of Agriculture (MoA). These companies earned a total export revenue of 16 million dollars, exporting 450,455tn of cereals, oilseeds and spices.

Adag established the plant to benefit from improving the quality of Ethiopia's exports, Haddis stated.

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