Construction of a malt house in Addis Ababa: SOUFFLET continues its development in Ethiopia
Jean-Michel Soufflet, Chairman of the Soufflet Group Management Board, is in Addis Ababa today to lay the foundation stone for the Group’s malt house in Ethiopia. The building of this malt house is the culmination of the barley industry project, launched in 2017 in Ethiopia, with agricultural trials growing malting barley.
The industrial stage began with the signing of a long-term lease with the IPDC (Industrial Parks Development Corporation) in June 2018 for a plot of land.
The malt house is due to begin operations in 2020. The aim is to develop a local industry, initially producing 60,000 tons of malt. In the longer term, Soufflet Malt Ethiopia hopes to reach a production capacity of 110,000 tons. This ambitious plan is part of Malteries SOUFFLET's strategy to develop operations outside Europe, which already include Brazil, Argentina and India.
A dynamic market
The SOUFFLET malt house is in a strategic location in the outskirts of Addis Ababa, very close to barley-growing areas. The plant covers 10 hectares and will be equipped with cutting-edge infrastructure capable in the longer term of producing 110,000 tons. SOUFFLET plans to invest 70 million Euro in a country that is full of potential. Ethiopia is the largest producer of barley for food and fodder in Africa and the beer market is expanding fast with growth of 15% per year. However, the supply of local malt is not enough to meet demand. By building this plant, SOUFFLET will develop local malt production and thereby reduce the amount of imports, which currently account for 70% of the market.
An industry commitment for 100% local production
To produce 100% of the barley locally, the Group is reinforcing the agricultural, technical and commercial development of the regions to the south of Addis Ababa and Shewas (west, south-west and north of the capital): it currently has seven people supporting Ethiopian farmers. This team of agricultural and sales advisers and technicians will be reinforced by a further six people in 2019 and should be twenty strong in 2020.
On the barley production front, in 2019 Soufflet Malt Ethiopia will support 15,000 farmers to produce 30,000 tons of barley for malting and will be working with 40,000 farmers by 2020 to produce 80,000 tons of barley.
Finally, the malt house construction is going to create 300 jobs.