EDIBL;€ OIL VANUF^CTURING PROU€CT -FtASIBILITY STUDY

a which enable the promoter to export the products and generate foreign
.

currency to the country.

I
Apart from growing health awareness of the population, the increase in per
capita income is contributing a lot to the increased consumption of
vegetable oils. Despite having an agrarian economy, Ethiopia is unable to

produce sufficient edible oil for domestic requirements. As a result, the

country has been importing bulk volume to meet the deinand spending huge
foreign currency. In this regard, for importation of edible oils, the country
has spent foreign currency of USD 380 million per annum on average
during the past recent ten years. In order to save such huge foreign
currency and to make the country self-sufficient in edible oil, and then to
start exporting to the world market (as there is large potential), the
government of the country has designed strategies and policies that attract
private investments into such manufacturing sector. Moreover, since 2011,
the edible oil market in Ethiopia has been identified to be one of the most
strategic 6onsumer items in terms of its impact in the overall consumer and
food prices. This realization leads to the decision of the government to
incorporate edible oil in the list of strategic food commodities which were
embarked for price capping.

In addition to the products' strategic importance to the country's economic

development and their wide local as well as foreign market potential, the
subject project will get a great advantage in easily penetrating into the
market as the demand for edible oil is ever-growing.
I

As a result, by considering the above facts, Soreti International Trading

Company initiated to invest on Edible oil processing business to supply its

products with fair price to the market locally as well t markets.

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EDIBLE OIL VANUFACTURING neoifecT -F€AslBILITy sTuDry

IV. PROJECT DESCRIPTION

The proposed plant will produce refined edible oils from oilseeds basibally
from Soya bean, Niger seedand Cotton seed. The description below shows
that unique characteristics and application of the three kinds of oils.

4.1. SoyaBeanoil

Soya oil is pale yellow fixed drying oil which is soluble in alcohol. Soya bean
oil is the most widely used vegetable oil for both edible and industrial use,
mainly as margarine and salad dressings, in paint and varnish, soap and
others production.

•Soybean oil is healthy oil, provided that it's not been hydrogenated and

provided that it's certified organic. Soy oil would be especially helpful for a
diet that was missing the essential omega-6 fatty acid called linoleic acid.
(Soy oil is about 50% 1inoleic acid). It would also be helpful for a diet that
needed more monounsaturated fat.

Soybeans contain about 180/o oil and 400/o protein. Because soybeans are
high in protein, they are a major ingredient in livestock feed. Most soybeans
are processed for their oil and protein for the animal feed industry. The
high-protein fiber (that which remains after processing has removed the oil)
is toasted and prepared into animal feed for poultry, pork, cattle, other farm
animals and pets. The poultry and swine industries are major consumers of
soybean meal. Therefore, the expeller cake is an important food supplement
for cattle, pigs and poultry.
I

Soybean oil is one of many drying oils, which means that it will slowly
harden (due to free-radical based polymerization) upon exposure to air,
forming a flexible, transparent, and waterpro; e of this

20
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EDIBL;I OIL VANUF^cTURING pRoifecT -F€AslBILITy sTUDv

property, it is used in some printing ink and oil paint formulations. .

However, other oils such as linseed oil may be superior for some drying oil
applications. While soybean oil has no direct insect repellent activity, it is
used as' a fixative to extend the short duration of action of essential oils
such as geranium oil in several commercial products.

Soybean oil represents the greatest opportunity for domestic market supply
and import substitution. Imported soybean oil has a considerable market
share, soybean oil production can satisfy the local market and also it's by
product is very useful for animal feed market. In Ethiopia, there is a large
scarcity in high protein animal feed (for the booming dairy, export beef and
poultry sectors).

The vegetable oils produced, particularly the soya bean oil, can also be used
as a raw material in the production of alkyd resin in local industries as an
input substitution saving the meager foreign currency of our country.

Alkyd resins are short branched polyester chains, formed by poly

condensation of a di-basic acid and a polyhydric alcohol, in the presence of

glyceride oil or oil derived fatty acid. Also, an alkyd is called a polymer
formed by chemical synthesis of smaller molecules. A|kyd resins are a large
group of thermoplastic resins which are polyester products formed from the
polymeric condensation of polyhydric alcohols, polybasic acids, and
monobasic fatty acids.

Alkyd resins are widely used for the production of surface coatings:
decorative paints, varnishes, printing inks air drying and stoving industrial
paints etc. The process of producing alkyd resin involve: alcoholysis,
i=

€DIBI:€ OIL +4ANUFACTURING pRoifecT -F€AslBILITy sTUDry

Currently, alkyd resin is being developed using vegetable oil as raw .

materials to enhance its renewability, sustainability, and biodegradability

because eco-friendly products have been a particular concern for consumers
in recent times. This development has given rise to several studies on the
quality of oil produced from seeds. Polymer researchers have been using
vegetable oil such as linseed oil, jatropha seeds, sunflower seeds, soybeans,
and neem seed to produce alkyd resin. The conventional glyceride oils used
for the production of alkyd resin are soya bean, and linseed oil but the most
explored is the soya bean oil. Soybean oil is one of the most readily available
and widely used vegetable oil in the world. For many years, soybean oil has
been a major ingredient in making alkyd resins, due to its high iodine
value; which makes it valued naturally as semi-drying oil. Furthermore, the
level of unsaturation in soybean oil is high because it is composed primarily
of polyunsaturated Linolenic acid (C 18:3) and Linoleic acid (C 18:2), as well
as mono unsatured Oleic acid (C 18:1). This high degree of unsaturation
enables it to easily polymerize into useful materials

Alkyd resins have many applications in the coating industry due to their
low cost, wide range of functions, and are produced from renewable S.

vegetable oils.

Soybean oil is the most readily available and one of the lowest cost
vegetable oils in the world today. For many years, soybean oil has been a
major ingredient in making alkyd resins, which are dissolved in carrier
solvents to make oil-based paints. While the production of alkyd resins,
finished paints and coatings may involve proprietary formulations, the basic
ii=

€Dreue olL VANUFAICTu;RING p'RoU€cT -f€AslBILITY sTu:Dry

4.2. Nigerseed
Niger seed (often called Nyger Seed or Nyjer Seed) is a small black `;eed
from tHe Guizotia flower, a pretty and dainty yellow bloom that is native to
Africa. Combine Niger Seed with other seeds to provide your birds with a
more varied diet. It's perfect for treating the small birds in your area and is
particularly loved by goldfinches.

You might see Niger Seed referred to as 'Thistle Seed', but they're actually
two different seeds. It is thought that this misconception came about
because the seeds look similar and goldfinches love both Niger Seed and
Thistle Seed!

A little-known fact is that Niger Seeds actually have shells, so if you what
looks like seed on the ground, it's not your birds throwing them away. It's
actually the shells (husks) of the seeds

This seed can be used for human consumption. You will find the oil and the
seed in recipes for curries, chutneys and other foods. Niger seed also offers

plenty of medical uses.

is.

4.3. Cottonseed
Cotton seeds are the seeds of the cotton plant. Cotton seeds are ovoid, 3.5-10
mm long. They are densely covered with white or rusty, long and woolly
hairs, called the lint, which is the main product used to make cotton
textiles, and shorter hairs (linters). Commercially available cotton seeds are
usually the by-product of the production of cotton fibre by a cotton gin,
which separates the lint from the seeds.

Consequently, seed production is dominated by rmining the

production of cotton fiber and the seed is about

pRoifecT pR:oMOT€R: - pRoifecT qrROMOTER: SORETI INT€tINATloNAL

 EDIBi:€ OIL VANUFACTu:RING pRoifecT -fEAslBILITy sTUDv

- cotton crop (O'Brien et al., 2005). Depending on the species and varie`ty,

cotton lint has different colours (black, brown or red), and may be long a;d
thin (Gossypium hirsutum, 900/o of world production), longer and finer
(Gossypium barbadense, also called Egyptian cotton) or shorter and thicker
(Gossypium herbaceum and Gossypium arboretum) (Ikitoo, 2011; Rossin,
2009). Once ginned, the cotton seed remains covered with linters and called
whole cottonseed or fuzzy cottonseed.

The amount of linters left on the seeds varies from 4 to 8°/o, except for seeds
of Gossypium barbadense varieties, such as the American Pima cotton,
which are naturally without linters (NCPA, 2012). Linters are a valuable
fibre used for paper, cellulose acetate, viscose, explosives, plastic or

photographic film. Fuzzy cotton seeds are subject to a mechanical delinting

process that yields linters and naked seeds called deHnted cottonseed or
blacl or slick cottonseed (Hoffman, 1998). Cotton seeds intended for sowing
generally undergo chemical (sulphuric acid) treatment in order to remove
linters but these delinted seeds (sometimes called acid cottonseed) should
not be used as feed as they may contain chemicals residues and can have an
unpalatable flavour (Smith et al.,1999). S

Fuzzy or delinted cotton seeds may be either fed to liv6stock or submitted to

oil extraction, yielding oil, cottonseed meal and hulls. Cotton seeds contain
about 200/o of valuable cooking oil. A typical cottonseed crushing operation
separates the seed into oil (160/o), hulls (26°/o), meal (45.5%) and linters
(8.5°/o) (O'Brien et al., 2005).
I

Cottonseed oil is an important cooking oil extracted from the seeds of cotton

plants. Whole cottonseeds have 150/o-200/o oil, which depends on the species
and quality of the seeds (Savanam & Bhaskara oil consists
of about 700/o unsaturated fatty acids.

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V. MARKETSTUDY

5.1. Global production and consumption

• Vegetable oils are fats that have been extracted from plants. The extraction
of oils from plants has been a common practice in several cultures since
early times. Through time, the vegetable oil industry expanded and thrived
at a very fast pace due to the development of oil presses as well introduction
of innovative methodologies. Over the centuries, oil extraction technology
has evolved substantially and now there are different types of oils available
in the market for consumption and industrial uses as well.

The production of vegetable oil involves extraction of oil from plant

components mainly seeds. The extraction can be done mechanically by using
an oil mill or through chemical extraction with the use of a solvent. Further,
the extracted oil is purified, refined or chemically treated.

Vegetable oil is widely used as cooking oil in various cuisines, comes from
different plants/seeds like soybeans, sunflower, cottonseed, olive, mustard
I

seeds, etc. Apart from its application in culinary uses, vegetable oil is also
used as an ingredient in many manufactured products. It is used in soaps,
candles, skin products. Some oils are known as drying oils, and are used in
manufacturing paints as well as for wood treatment

PROJECT PROMOTER: pR.OifecT` frftoMOT€R : son:€TI INTERN^TIONA L TRAD

 €DIBI± olL +IANUFAlcTuelNG pRog€cT -FEAslBILITV sTUDry

a The global vegetable oil market is currently witnessing a positive growth.

.

This is due to the changing lifestyles, improving dietary habits and rising
awareness among consumers about various health benefits offered by
vegetable oil such as enhanced metabolism and prevention of several
diseases. According to the report of International Trade Center, over the
last several years, the global production of vegetable oils has experienced
constant growth. Since 2007, annual vegetable oil production had increased
by more or less five percent. The Trade Center further indicates that during
2016/17 a total of 185.78 million metric tons of oils have been manufactured
all over the world which represents a 6.28 percent raise from the previous
pe.riod. According to the web site called www.statistia.com data, in the year
2021/22 the global vegetable oils production amounted to around 209.11
million metric tons. The main sources of this vegetable oil production are
coconut, cottonseed, olive, palm, palm kernel, peanut, rapeseed, soybean
and sunflower seed. The following table shows the total world edible oil

production.

Table 2: World Edible oil production

World Edible oil Production(million tons) S

Type of oil 2014/15 2015/16 2016/17 2017/18 2018/19 2020/21
Coconut oil
Cottofl seed oil
Olive oil
Palm oil 59.36 61.87

Peanut oil
Rapeseed oil 27.27 27.61 27.99 28.06 27.64

Soybean oil 45.22 49.29 51.57 56.68 59.48

Sunflower 15.45 14.92

26
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EDIBLE OIL ^4ANUFACTURING pRoifecT -f€AslBILITy sTUDry

9 Palm kernel oil 7.07 7.31 7.01 7.59 8.2 8.51,.

Total 171.83 177.33 176.73 188.67 202.44 209.14

Source: rforeign Agricultural service/USDA office of global Analysis, January,
2021

The graph below shows global production of vegetable oils during the past
recent seven years.

Figure 5: World Edible Oil Production

Soiirces: World StE[tistieal Data

On basis of oil type, the market has been segmented into palm oil, soybean
oil, sunflower oil, canola oil, coconut oil, palm kernel oil, etc. Currently,

palm oil represents the largest oil type as it is a rich source of saturated
fats, vitamins and antioxidants which offer numerous health benefits. Palm
 €DISI± olL MANufi\cTURING pRog€cT -FEAslBILITy sTUDny

Indonesia, China, Malaysia, European union, United States, Argentina, .

1

Brazil make up about 700/o of the world edible oil production in 2020/21.
]L
I World cchsumption for the same year shows 209.11 million tones.
i.
Table 3: World Top Edible Oil Producers

World Top Edible Oil Producers (million tons)

No Countries 2020/21 production
1 Indonesia 54.07
2 China 33.5
3 Malaysia 23.51
4 European Union 18.01
5 USA 7.41
'6
Argentina 3.29
7 Brazil 3.05
8 Others 66.27
Total 209.11
Source: foreign Agricultural service/USDA office of global Analysis, January,
2022

In terms of consumption as a food product, vegetable oils are seen as the

healthier alternative as they contain more unsaturated fatty acids than
animal fats. In the world, demand is driven by a variety of factorsS including
but not limited to convenience, the perception thdt oil may be highly

productive and have an ability to secure food stability in the world and it is
free of cholesterol and high chine fatty acid. For instance, rapeseed oil and
sunflower oils are widely used in cooking due to their nutritional values,

pleasant taste and health benefits. They also have a variety of industrial
uses. Consumption of vegetable oils worldwide from '2014/15 to 2020/2021,
by oil type (in million metric tons) presented in the following graph.
 EDreue OIL VANUFACTu:RING pRoifecT -fEAslBILITy sTwy

Consumption of vegetable oils worldwide (Million Metric Tons) .`.

2014/15 2015/16 2016/17 2017/18 2018/19 2020/21

ffiicoconut oil ffi!Cotton seed oil zasoliveoil &`` Palm oil .Peanutoil

HRapeseedoil ISoybeanoil |Sunflower Hpalmkerneloil

L Source.. World Oils

Over the past three decades, there has been a substantial growth in the
global consumption of vegetable oil. Between 1980 and 2008, consumption
increased more than threefold from 40 million tons to over 130 million tons.
In addition, there has been a significant shift in the relative market share of
different vegetable oils. In 1980, the main vegetable oil on world markets
was soybean, accounting for approximately a third of total consumption.
The market share of soybean has since fallen, with palm oil becoming the
major consumed vegetable oil. In 30 years, palm oil consumption has
increased tenfold from 4.5 to 45 million tons (including growth of 100

percent in the last decade) and now comprises 34 Percent of the world
market. In 2009, despite consumption of soybean oil increasing by 22.5
million tons, its market share had fallen to 27 percent. Rapeseed and
sunflower oil's market shares were 16 percent and 1

5.2. Demand Analysis

A. General Demand Affecting Factors

The main factors affecting the demands iq growth'
population growth, urbanization, econo.mic situa cultural

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 €DIBi:E OIL ^+ANUFACTURING pRoifecT -f€AslBIIITy sTuov

a aspects, the prices of the products, existence & prices of substitute products,
.

product distribution channels, and the marketing strategy of the company

etc. Thetprobable contribution of these factors and their impacts on the
demand for the products of the project are discussed as follows.

5.2.1. Economic growth

In the last decade, Ethiopia has experienced solid progress in terms of key
economic and social indicators. During the period from 2011/12 to 2020/21,
the country has been achieving a sustainable economic growth. Overall,
during this period, the country has recorded an average GDP growth rate of
about 8.7°/o which makes it one of the fastest - growing nations in the
co-ntinent of Africa.

In terms of GDP per capital, the country has achieved a profound growth
during the past decade. For instance, GDP per capital of the country has
increased from 524 USD in 2011/12 to 1,092 USD in 2020/21 which
represents more than double growth. The government's commitment to
develop the country's economy with supportive state policies and strategies
have contributed for the impressive growth in new investments and
E]

corresponding economic growth of the country.

Thus, the present and future economic performance of the economy is

expected to enhance the demand for consumer products, particularly
consumption of processed food products such as those duced by the
envisaged project.

5.2.2.Population growth

The 2007 Population and Housing Census results

of Ethiopia grew at an average annual.rate of 2.6 pca

tmoifecT PROMOTER: - pRogECT PROMOTER: son:ETI INT€INAITIONAL TRADING

 €DIBL:E OIL +iANUFACTURING pRoifecT -fEAslBILITy sruov

4 total population of Ethiopia is projected to reach 100 million within the

.

coming two years from 84.3 million in 2011. The following figure shows the
I population projection for the next five years with 2.60/o per annum.
FI

1,

Figure 7: population projection (in millions)

• ' I . I ' I.

Source: CSA

5.2.3.Urbanization

Urbanization brings about an expansion of economic activities in urban

centers, which also improve disposable income of the people. As
urbanization indicates people's living style, it's a major factor for a higher
 £DIBue OIL MANufACTuelNG pROu€cT -f€AslBILITy sTuOv

~ activity in urban areas are often associated with high level of edible oil
Demand.

In Ethiop®ia, Urban population growth rate is projected to increase by 4%

annually. By the end of the 2017, the total urban population reached to 15.3
million. The table below explains the number of populations in major urban
areas of Ethiopia in year 2014 and 2017.

Table 4: Number of Urban Population

Towns
2014 thct.) 2017 (proj.)

Tigray 842,723 1,175,327

AIar 188,973 263,556

Amhara 2,112,220 2,945,865

Oromiya 3,370,040 4,700,119

Somali 621,210 866,388

Benshangul- 97,965 136,630

SNNP 1,545,710 2,155,767

Gambella 77,878 108,615

Harari 99,321 138,521

Addis Ababa 2,738,248 3,818;973

Dire Dawa 232,854 324,756 I:,

Special Region 29,028 40,485

Total 11,956,170 16,675,000

Source: CSA 2014 population census & CSA projection Aug. 2017
'

As indicated in the above table, more than 15 million population of Ethiopia

are living in urban area in year 2017, of which 280/o lives in Oromia region,
230/o lives in Addis Ababa and 180/o lives in Amhara. Accordingly, the
demand for edible oil is estimated to grow by growth rate of urbanization.
32
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€DIBI:E OIL VANUFACTURING pRoifecT -f€AslBII|_Ty s:ru:Dy_

5.2.4.Consumption per capita income a

Based ont per capita consumption of oils and fats, a breakdown of the per
capita volume of oils and fats [7.9 kilogram's] designated by the Ethiopian
Public and Health Institute [EPHI] as required for adequate nutrition,
would translate into 6.3 kilograms of oils and 600 grams of fats per capita
for urban Ethiopia and 4.8 kilograms of oils and 2.1 kilograms of fats per
capita for rural Ethiopia.

According to World Bank report, Ethiopian populations will reach 100.8

million in the year 2018 with a growth rate of 2.6°/o per annum. Considering
the major derivers of oil consumption mentioned above and consumption
growth rate of 5% (FAO) accordingly, By 2012, Ethiopia's total requirement
of edible oils for the projected population of 100.8 million at the projected

per capita consumption of about 6.3 kg per annum for urban and 4.8 kg for
rural population is expected to be around 924 million liters in 2025.

For instance, GDP per capital of the country has increased from 524 USD in
2011/12 to 1,092 USD in 2020/21 which represents more than double

growth. The government's commitment to develop the country'Ss economy

with supportive state policies and strategies hav`e contributed for the
impressive growth in new investments and corresponding economic growth
of the country.

The overall macroeconomic policy adapted by the government of Ethiopia,

which allows a free market economy, has initiated many individuals who
are able and willing to invest in various busine`ss ventures. Besides,
commitment of the government for the development as reflected by the
continuous effort to expand infrastructural facilitates y led to

ever-growing investment activities in every stratuln'

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EDrel± olL VANUFAc;Tu:RING rRoutcT -fEAslBILlrv s:ru:Dry

5.2.5.Government policies and regulation

.

The economic policies of the government have already created favorable

conditions for investment. The incentives include customs duty exemption,
export incentives, income tax holiday, loss carried forward, etc. with
favorable working environment as having political and economic stability,
rapid economic growth, untapped natural resources, excellent climate and
fertile soils, low cost & abundant labor, large domestic & international
markets, very nearly free of crime; and high level of security of person and
property and ample opportunities in privatization program.
Promoting private sector development is key to accelerate inclusive
economic growth underpinned by job creation, export promotion and
technology transfer. Concerted effort is being made to increase private
sector investment (domestic and foreign). Similarly, special emphasis is

given to the domestic private sector, especially those who would like to
invest in the manufacturing sector. This initiative will be enhanced through
encouraging and supporting through incentive packages and creating
favorable environment for doing business. In addition, particular attention
have been given to the linkages between local and foreign enterprises to
i9.

facilitate knowledge and technology transfer to ensure the sustainability of

growth through accelerated economic structural transformation.
The intention is to create and broaden the base for the emergence of
capable, productive and competitive domestic private sector in
manufacturing. The investment strategies have also given a chance for
foreign investors to invest alone or in partnership with domestic investors
I

in areas open for FDI with no restrictions on equity ownership in joint

venture investment. Among the investment opportunities outlined in the
1

EDIBue olL VANUFACTURING pRou€cT -FtAslBIlrTV sTuov

4 consumer products is the high priority given by the Ethiopian Government to

.

the development of the country's infrastructure including communication,

power generation and transport network.

As discussed above, edible oil consumption is generally affected by economic

growth, total population, population growth, consumption per capita and

other policies of the government together with the potential market size and
other factors represent a great opportunity for marketing consumer
products such as those of the project under consideration.

5.3. Domestic edible oil production and Consumption

The Ethiopian edible oil market is supplied by mostly from import. Even
though Ethiopia has huge potential for scaling up its production of edible
oil: favorable agro-climatic conditions for increased oil seeds cultivation, the
labor-intensive nature of the sub-sector, conduciveness of the business
environment, the willingness oil seed crushers to work at full capacity and
the huge local demand.

Edible oils produced by local oil mills, mainly soya bean, sunflower,

groundnut, Niger seed oil, rapeseed oil and cotton seed oil. And know a
day's Safflower becomes also popular. While larger mills has higher

qualities of consistent taste product and has convenient packaging, the

products of the smaller mills, sold in bulk, are inconsistent in quality and
may contain blends of different oils based on available raw material.

In Ethiopia, production of edible oil has been performed by as industrially

I

large scale processed, medium and household level oil brocessing mills. Due
I
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EDIBI;I olL VANUFACTu:RING fmou€cT -f€AslBILITy sTUDry

a In most of areas of the country oilseeds are crushed, crude oil is used for
.

cooking purposes, without any refining. The production of refined oil iri
Ethiopia is very limited. More than 500 small crushers (mostly with
Chinese/ Indian machines) are operational on village level.

These local crushers, with a very limited capacity, have low hygiene
standards and high risks of contamination with acidic oil. The working
environment is far from ideal. Safety risks (e.g. slippery floors, no protection
on belts etc.) for employees are the case at most of these establishments
during the fact finding mission.

Despite this potential, however the edible oil processing industry remains
under developed. Main constraints are:

> Low production due to poor quality and supply of seeds. Even though
is a large local production of sesame seed and soybean due to the
relatively higher price offered in the international market for the seed
as compared to the price offered by the domestic market most of the
locally produced sesame seed are exported.
> Inadequate trading infrastructure and poor agro-processing facilities,
weak business development services for upgrading the processor and
limited access to local and international markets.
> Weak linkages among the chain's actors and a lack of working capital
also constitute major obstacles.
Increasing the productivity and competitiveness of oilseed producers, boost
the capacity for processing edible oil seeds and improve .access to local and
international markets. This is being achieved by integrating the private
]E

EDIBLE olL MANUFACTu:RING pRou€cT -FuslBILITV sTUDv

number of small to medium scale oil seed crushing units and a much
.

smaller number of larger oil mills.

4L

Looking ahead, Post expects oilseeds production to increase to meet the

growing demand for cooking oil, oil meal and livestock feed. The
inauguration of Integrated Agro-Industrial Parks and entry of large-scale
edible oil complexes in the market will offer new opportunities to process
this anticipated increase in oilseed production. This suggests that cooking
oil imports could thus decline in the future.

According to Food, Beverage And Pharmaceutical Industry Development

Institute 2019 report, there are about 17 companies that engaged in the
manufacture of edible oil which have full oil refinery plant.

Only a few larger crushing or refining companies seem to have adequate

safety and hygiene standards compared to European industry standards.
The largest refinery's like Addis Mojo, Health Care and Shemu is working
on a long term project of continuous improvements. Addis Mojo is HACCP
certified and ISO 22000:2005 including PAS 220:2008 since September 2008
for its refinery plant. S

Among the existing edible oil producing factories Addis-Mojo Oil complex,
Shemu plc, Health care, Febela, WA, Leos, Aysana, Rongie, Kunifera,
Hamaressa, Top and others Oil Millers designed and actual production
capacity of edible oil processing plants excelling in the table below.

Table 5: edible oil processing plants '

Designed
chnual Capacity
tilized Total
Name of Establishment / Location IJocation Production
Enterprise Region Zone '000 litter

pRogECT pROMOT€R: - plRogtcT rROMOT€R: sO`R;ETI INT€RNA\TIONAL TRA

i

Shemu 120,000.00 72,000.00

Articraft 90,000.00 54,000.00

Adama Edible Oil Oromia 900/o 46,470.60

21,600.00
Hamaresa edible oil
Harari 35,789.00 35,789.00
Girma Abera & his son's
edible oil 27,716.00 30.460/o 8,442.29
Health care 27,000.00 100% 27,000.00
Mulat Abe az Edible Oil 18,625.00 98.89o/o 18,418.26
Al-im 18,000.00 100% 18,000.00

Nazareth Edible Oil Oromia 17,626.00 62.650/o 11,042.69

/ bahir dar 15,000.00 10,500.00
Teiba Shifa Oil
Factory/Kana I ndustrial Burayou
& Trade/ Oromia 9,932.00 7,945.60
Bahir
Bahir Dar Edible Oil Amhara Dar 7,659.00 90% 6,893.10
Minerva 6,000.00 5,400.00
Dil Edible Oil Factory 5,986.00 46.010/o 2,754.16
4,500.00 100% 4,500.00
Rongie 4,500.00 4,500.00
Shiferaw Metaferia
(Abuare) edible Oil
Facto 3,791.00 1,680.93
Aysana 3,700.00 2,220.00
Admas union 3,300.00 1,980.00
Muluwork 3,300.00 1,980.00
Kokeb 3,000.00 2,100.00
Kunifera 3,000.00 2,100.00
Nitsuh eshanew 3,000.00. . 2,100.00
3,000.00 1,806.00
Tshehay union 3,000.00 1,806.00
A/Kedir muhammed oil 799.0 1,685.00
Yimaldu Edible Oil
Factory 2,716.00
 €DIBL;I olL +IANUF^c:Tu:RING pRou€cT -FtAslBIUTY sTUDry

T314 Timrteam 2,600.00 1000/o 2,6oo.o6

IT32 . 428.00
Addis Mokonnen (kebe Burayou
Lemne) Edible Oil Oromia Liyou 2,166.00 20%
+ Burayou
(I

133 ZF Edible Oil Oromia Liyou 1,664.00 1000/o 1,664.00

34 Bbz 1,500.00 100% 1,500.00
Wuedu flour Edible oilfactory
35 Oromia S.W.Shoa 1,488.00 300/o 445.95
Brehanue W/SenbetEdibleoilfactory
36 Oromia East Arsi 1,300.00 66% 853.06
37 Mekonen oil Amhara W.Gojam 1,295.00 20% 259.00
Montasa Gejea Edible OilFactory
38 Oromia W.Shoa 1,020.00 1000/o 1,020.00
39 Melkamu yahi oil A.A 943 440/o 415.01
Abdulekeder /Nyala oilfactory/
40 A.A 780 490/o 381.97
Dagnachew Taye EdibleOil East
41 Amhara Gojam 664 33% 220.98
Aniley Ademassu EdibelOilFactory
T42 Amhara W.Gojam 650 750/o 488.02
I 43
Zewdu Mola Edible OilFac.
A.A 638 100% 638.00
44 Seid Abdy Edible oil Amhara W.Gojam 588 600/o 352.98
Degefi Shenqute Edibleoil
A.A - 557 1000/o 557.00
T45
46 Geleshia palm oil factory Gambela 480 940/o 452.02
47 Gebeyehu Edible Oil Oromia W.Shoa 409 420/o 171.98
S700/o
Sultan Mohamed(Kolorin)Oil
T48
A.A 394 276.00
Aman Keder Ediable oilfactory
T49 Oromia Bale 300 47% 140.01
Rahemet Mohammededibleoil
A.A - 280 1000/o 280.00
T50
51 Aman Ibrahim Oil factory A.A 220 980/o 216.00
Total 1,141,369 886,563.61
Conservatively, assumption of current production at 70% Capacity) 70.0% 620,594.52
Source: Ministry of Trade and Industry & own assumption & Calculation

The design capacity of the large and medium scale p

estimated
about 1,141,369 tons at their full prod.uction t types of

39
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4 edible oil. However, due to various problems, the actual production of the

large, medium and small oil millers operate at about 780/o of their capacfty,
the production volume at 78% production capacity is 886,564 tons.

Based on the data obtained from the Central Statistical Agency on the
production of edible oil in Ethiopia and the Ministry of Trade and Industry
information on edible oil processing plants production capacity, and
conservative assumptions and calculation of the consultant, on average the
large, medium and small oil millers operate at only 70% of their production
capacity, which is 620,595 tons in year 2021.

According to the data obtained from the Central Statistical Agency, during
the period 2012-2021 the maximum local production of edible oil was
748,859 in year 2016, due to its unrealistic figure it is better to assume and
take the average production of year 2015 and 2017 conservatively, which is
38,078 tons of edible oil local production for year 2016.

Accordingly, the highest production volume was recorded in 2021, the total
production of edible oil in Ethiopia reached 620,595 tons in 2021 which have
an increment from 4,573 tons in 2013. f§.

During the period under consideration, the average annual local production
of edible oil was about 85,977 ton with average growth rate of 2240/o. The
trend in local production of edible oil is shown in the table below.

Table 6: I-ocal production of edible oil

Local Production %age Growth

Year Rate
Quantity (Tons)

2012 6,520 0%
-300/o
2013 4,573

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