Private investor launches US$1M feed plant in Ethiopia’s Somali Region

ETHIOPIA – A new 125 million birr (US$1 million) animal feed processing facility has officially opened in Jigjiga, Somali Regional State, marking a milestone in Ethiopia’s livestock modernisation drive

The Suufi Animal Feed Factory, a private investment by local entrepreneur Abdi Hassa Suufi, will harness digital technology to produce specialised feed for livestock fattening, dairy productivity improvement and poultry farming.

With a daily production capacity of 5,000 quintals (500 metric tonnes), translating to about 1.8 million quintals (180,000 metric tonnes) annually, Suufi said the plant integrates digital technology to improve formulation accuracy, quality control and production efficiency.

The automated systems are expected to support consistent nutrient composition tailored to different livestock categories, including beef cattle, dairy cows and broilers.

Regional and federal officials, including Ethiopia’s State Minister for Agriculture, Fikru Regassa, and the Somali Region’s Livestock Development Bureau Head, Abdulqadir Iman, attended the inauguration ceremony.

“This factory is of great importance to the pastoralist community,” Iman said during the launch. “It contributes directly to the transition toward modern, intensive livestock management.”

Officials noted that the plant’s high-tech infrastructure aims to stabilise the animal feed supply chain, which has faced repeated disruptions due to drought cycles across the Horn of Africa.

Erratic rainfall and pasture shortages have increased reliance on commercial feed, pushing up costs for pastoralists and commercial farmers alike.

Market outlook

Agriculture remains the backbone of Ethiopia’s economy, contributing about 40% of GDP and employing 75% of the workforce.

Livestock accounts for roughly 26% of agricultural GDP, with Ethiopia ranked first in Africa and fifth globally in livestock population, home to over 71 million cattle, 54 million goats, and 57 million poultry.

Despite this vast resource base, productivity has lagged due to feed shortages and climate shocks.

The animal feed market, valued at US$606.8 million in 2025, is projected to grow steadily, reaching US$776 million by 2034. Rising demand for meat, milk, and eggs is driving investment in feed production, particularly for poultry and dairy sectors.

Analysts note that Ethiopia’s feed industry faces supply gaps, with imports often required to meet demand. The Suufi factory directly addresses this challenge by boosting local production capacity.

Ensuring consistent, high-quality feed is expected to reduce reliance on imports, support commercial livestock expansion, and enhance resilience against drought-induced shortages.

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