CASE STUDY

ETHIOPIA

Unlocking Value Chain Potential and Reinvesting Efficiencies

Background

Barley represents the third biggest crop in Ethiopia by area planted and serves both the food and beverage market for a growing population of 108 million people.

Challenge

Since local supply does not meet the demand, malted barley for beverage production is imported from Europe at a high cost – with significant foreign exchange impact for the companies and high logistics costs since Ethiopia is a landlocked country.

Opportunity

Significant tax incentives can improve profitability for entities who source their raw materials locally.

Approach

The Value Chain Solutions approach and tools applied, in collaboration with our client and local partners, have been instrumental to structuring a competitive value chain locally for a global investor to source the raw materials required for their products that are produced by their local entity.

Outcome

Efficiencies extracted in the value chain have facilitated targeted investment, enabling further growth of volumes and market share.

THE FOLLOWING DIAGRAM DEPICTS THE MALT BARLEY
VALUE CHAIN (MBVC) IN ETHIOPIA.

THE FOLLOWING DIAGRAM DEPICTS THE MALT BARLEY VALUE CHAIN (MBVC) IN ETHIOPIA.

THE MAIN FIELDS OF INTERVENTION, FOR UNLOCKING EFFICIENCY
IN THIS VALUE CHAIN FOR FURTHER INVESTMENT, INCLUDED:

THE MAIN FIELDS OF INTERVENTION, FOR UNLOCKING EFFICIENCY IN THIS VALUE CHAIN FOR FURTHER INVESTMENT, INCLUDED:

Barley seed production and commercialisation of specific new varieties

Cost-efficient tolling agreements with local and new processing companies to ensure reliable supply

Providing the investment and expertise to enable specific aspects in the barley value chain in order to secure barley and other raw materials

Establishment and training of a capable extension team to support ongoing value extraction, along with the development of a mobile digital platform to gather critical information across the value chain and to support client teams with targeted interventions for every step in the annual crop cycle, from preparation to market delivery

Barley seed production and commercialisation of specific new varieties

Cost-efficient tolling agreements with local and new processing companies to ensure reliable supply

Providing the investment and expertise to enable specific aspects in the barley value chain in order to secure barley and other raw materials

Establishment and training of a capable extension team to support ongoing value extraction, along with the development of a mobile digital platform to gather critical information across the value chain and to support client teams with targeted interventions for every step in the annual crop cycle, from preparation to market delivery