Ethiopia commissions US$1 M digital feed plant to boost production
The new factory will strengthen local feed supply as Ethiopia seeks to reduce reliance on imports.
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, financed by local investor Abdi Hassa Suufi, was inaugurated in the presence of federal and regional officials, including State Minister for Agriculture Fikru Regassa and Somali Region Livestock Development Bureau Head Abdulqadir Iman.
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.
“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.”
Ethiopia’s livestock systems, particularly in pastoralist regions, have faced sustained pressure from recurring drought cycles across the Horn of Africa.
Erratic rainfall patterns and pasture shortages have disrupted traditional grazing systems, increasing reliance on manufactured feed. This shift has intensified cost pressures for both smallholder pastoralists and emerging commercial operators.
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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One Reply to “Ethiopia commissions US$1 M digital feed plant to boost production”
The distribution of such industries across regions is crucial for increasing product supply, creating jobs, and reducing reliance on imports. However, the key question remains: do they produce their own raw materials? As you know, most plants operate at around half of their capacity due to shortages of raw materials. To the best of my knowledge, no feed plant in Ethiopia owns its own farms; instead, they source grains and other materials from the local market, which intensifies pressure on the feed–food competition.
The news you shared also highlight recurring drought cycles, erratic rainfall, pasture shortages, and the growing dependence on commercial feed. In this context, it becomes essential to cultivate irrigated agriculture to produce fodder and crops that can serve as raw materials for feed plants.