EthioChicken produces day-old chicks with a twist. Unlike most hatcheries that target commercial producers, the company seeks to cater to rural households.
Lusaka, May 18 – We take a look at three companies capitalising on Ethiopia’s agricultural and livestock potential that can thrive in Zambia, too.
◾A unique business model to sell chicken in Ethiopia.
Flow Equity is a poultry business that primarily targets rural households. Its Ethiopian unit, EthioChicken, was established in 2010, and the company has since extended its operations to Rwanda and Uganda through its subsidiary, Uzima Chicken.
EthioChicken produces day-old chicks with a twist. Unlike most hatcheries that target commercial producers of broilers (chickens raised for meat) or layers (chickens raised for eggs), the company seeks to cater to rural households.
To achieve this, it has developed a distribution system that involves a network of independent agents. These agents purchase the chicks from EthioChicken, rear them until they are six or seven weeks old, and then sell them to the end customers.
◾From investment banking to ago-processing.
Investment banker turned agro-processor, Yonas Alemu, founded and manages Lovegrass Ethiopia, a health food company that utilises teff and other Ethiopian grains in its product line-up.
Teff, an ancient grain, is celebrated as a superfood due to its high fibre content, gluten-free nature, and its abundance of vitamins, minerals and protein.
The company’s range encompasses teff-based pasta, breakfast cereals, pancake mixes, and a variety of snacks, with the majority of these products being made in Ethiopia.
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Lovegrass’s primary market is the UK, with subsequent markets including Ireland, Sweden, Germany, and France. Sales are approximately split evenly between third-party retailers and the company’s own website.
Yonas recounts that following the company’s success in winning several food industry awards in the UK and France, numerous prominent European retailers began to stock Lovegrass’s products. Among these are Ocado, Selfridges, Whole Foods, and Planet Organic.
“The day we first exported [teff] pasta to Italy was probably one of my happiest.”
◾Leveraging the potential of Ethiopia’s leather industry.
Ethiopia is home to the largest livestock population in Africa, with an estimated 53 million cattle according to the Ethiopian Investment Commission.
However, only about half of the potential hide and skin resources are currently being utilised. This market gap was identified by Abai Schulze, an Ethiopian-born entrepreneur, during a trip home from the US, where she was brought up after being adopted at the age of 11.
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Schulze conceived a plan to manufacture high-end leather goods – such as handbags, backpacks, and clutch bags – under the brand name ZAAF Collection, utilising local talent and resources in Ethiopia.
Today, ZAAF operates two physical shops in the US and Addis Ababa, and its e-commerce platform offers global delivery.
The brand has expanded its line to include jewellery, shoes, garments, and other accessories produced in Ethiopia, Senegal, Niger, Kenya, and Rwanda.
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