Pork: Prime For Investment

Pork, a staple in many countries, is being frequented by foreigners.

Jean Oliver, 36, an American working for an international NGO in Addis Abeba, is a regular customer of Prime Meat – a company that has been selling pork since 2007.  In the late afternoon of February 3, 2014, Oliver went to a branch of Prime Meat located in the Qera area, in Kirkos District, and others approached by Fortune say they were particularly attracted by the taste of the meat.

“I like the meat, especially the smoked sausage and the tenderloin,” she told Fortune.

For Oliver, the presence of Prime Meat means she does not have to worry about buying or eating imported meat.

The branch regularly visited by Oliver around the Qera area is the third for Prime-the other two being in the Gurd Shola area (along the CMC road) and Sar Bet (along the Mekanisa road). The Company began when owner, Kassahun Abberu (PhD), rather daringly delved into the business after acquiring the Debrezeit Swine Farm located in Bishoftu town, in the East Shewa Zone of the Oromia Region(45Km from Addis Abeba), from the Privatisation & Public Enterprises Supervisory Authority (PPESA).The Qera branch is located behind the Addis Abeba Abattoirs Enterprise(AAAE) down in Kirkos District.

But the pork business, which took some 11.2 million Br when Kassahun started it in the hope of serving customers with pork products fresh from the 12hct farm, was far from easy.

The banks at the time, he recalls, called it risky, while others thought it was too adventurous.

Adding to the long list of challenges was the way pig is considered among some people. Pigs are considered unclean among followers of Islam and Orthodox Christianity. When Frederic J. Simuns, author of the book, Eat Not This Flesh, visited Ethiopia, in 1963, to conduct his doctorate thesis, no-one ate pig.

A transport economist by training, Kassahun ploughed down the arduous path, arguing that businesses need to provide people with their preferred food types, as Addis Abeba is evolving fast into a world class city.

“Pork products are popular; it is a staple in many countries,” he exclaimed.”This is becoming a world class city; we need to provide people with the kind of food they are accustomed to. Pork is also developing a following among younger Ethiopians.”

In Europe, approximately 45pc of protein comes from pork, and its related products. It is affordable because it is easy to produce.

Kassahun used to work at AKAKAS Logistics Plc – a company he formed some 14 years ago with two business partners, focused on the transportation of humanitarian cargo. He worked there for seven years before starting the pork business but still works for AKAKAS.

“But I was confronted with only a deserted barn, poorly fed pigs and 26 employees,” he says, recalling the situation back in October 2006 when he acquired the farm.

Kassahun introduced change in the feeding system. Whereas the pigs used to eat dried grass prior to his acquisition of the farm, they are now fed elephant grass and corn. Imported German machineries have led to better pork production, he says.The water drunk by the pigs comes from the Company’s own wells.

His wife, Yodit Abraham (MD), was previously director of the Armed Forces General Hospital and dean of the Defence Health College. She helps to ensure that the entire farm-to-market process adheres strictly to hygiene and quality standards. To further comply with international sanitation standards, a nurse from Germany and a butcher from Hungary – the only expatriates in the operation – have been brought in to train local employees in international cutting and sanitation practices.

Prime Meat utilises the short distance between farm and market, ‘cold chain transport technology’ and a sealed cold room attached to the store to ensure freshness. The period between production and consumption is approximately two days for fresh products and a maximum of 15 days for smoked pork. Because the meat does not take months to make the long journey to Ethiopia, as is the case with imports, the meat does not need preservatives.

“Because of the preservation issue, we have a lot of coverage in most supermarkets in Addis Abeba,” Kassahun says.

Pork products from Prime Meat are almost half the price of their imported counterparts available at the big supermarkets in Addis. A kilogram of ham, for instance, is sold between 260 and 350 Br whereas a 100 gram of imported ham costs 89 Br. 100 gram of imported mortodella is sold for 78 Br whereas it only costs 200 Br at Prime.

The Company has been selling pork to the Hilton Addis Hotel onMenelik II Avenuefor Oktoberfest for the last three years.

Started over 200 years ago in Munich-a city in what was then the German kingdom of Bavaria – Oktoberfest is a famous occasion to celebrate the marriage of King Ludwig I and Princess Therese. It has since become a famous fair and is still celebrated in Munich for sixteen days every year, from late September to October, with several million litres of beer being consumed.

Prime’s decision to pick Qera for its third branch is motivated by its proximity to Sushi Burger, which, like Prime, attracts foreigners. The foreigners who frequent Sushi Burger are also customers of Prime. Jean, the American NGO worker, is one of them.

The smoky taste, which distinguishes Prime’s meat from other meats in the market, is widely popular among expatriates. On the evening of Wednesday, February 5, 2014, foreign nationals were enjoying the product.

Only a few Ethiopians come to Prime, according to the sales representative and the cashier. Fridays and Saturdays witness the peak in customer turnout.

Prime’s current capital is over 20 million Br. The number of employees is 131. The Company plans to add more people to its payroll if growth from increased demand occurs.  However, providing job opportunities to Ethiopians is not the only motive for the Hungarian-trained transport economist. He aims to provide Ethiopians with an affordable product that is high in protein.

Two weeks ago, the Company finalised negotiations for a business partnership with Isal Industria Salumi S.P.A – anItalian company engaged in exporting pork – to expand the manufacturing company, which cost 25 million Br.

The negotiations, which took place over three months, also aim to build a beef manufacturing company. Prime is eying the production of beef with the view to reach customers who do not eat pork.

While currently producing between 300 kg to 350 kg of pork a day, Prime intendeds to push it upto 10,000 kg a day within the next three months.

Prime prides itself on applying computerised production processes and being the first producer of European standard pork in Ethiopia. The creation of the new partnership with the Italian company will create the opportunity for the transfer of technology, production market, creating know-how and developing infrastructure.

But Ethiopia is only just beginning to recognise the benefit of pork, according to  Tadesse Sori, Animal Breeding & Fodder Development facilitator at the Ministry ofAgriculture (MoA).

“The Ministry does not yet have any formal data related to the breading of pigs or the production of pork,” he said. “This is due to very low initiation in the area.”

The facilitator, nevertheless, pointed out that the sector is evolving as interest to invest in pork is growing.

The Ministry plans to include the production of pork in its annual livestock plan and to prepare packages for it.

“The government intends to make the pork a major protein source in the country,” he told Fortune.

Sourced  here

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