Malteries Soufflet Signs a Land Lease Agreement with Industrial Parks Development Corporation to Build a 60,000 Metric Ton Malting Plant
Malteries Soufflet, a major operator in the world malt market with 27 plants in Europe, Asia and South America, signed a land lease agreement with the Industrial Parks Development Corporation (IPDC) to build a malting plant in Ethiopia. It will initially have a capacity of 60,000 metric tons and will be in service in 2020.
The agreement was signed by the CEO of IPDC and the General Manager of Soufflet Malt Ethiopia, on 13 June 2018, at the Radisson Blu Hotel in Addis Ababa.
The land lease agreement is the culmination of a negotiation between the two organizations, facilitated by the Ethiopian Agricultural Transformation Agency (ATA) and the Ethiopian Investment Commission (EIC). To this end, a memorandum of understanding was signed by Soufflet, EIC, and ATA to build the barley malting plant in Bole Lemi II Industrial Park in in January 2017.
On the occasion, Ato Khalid Bomba, ATA CEO noted “These kinds of investments represent Ethiopia’s progression from subsistence, production-based agriculture to commercialization and agro-processing. This shift is critical for the transformation of the agriculture sector and the country’s economic development.”
“The manufacturing industry sector plays a significant role in Ethiopia’s structural transformation,” said W/t Lelise Neme, IPDC CEO, “This venture will have multiple impacts on the Ethiopian economy by creating a market for smallholder barley farmers, opening up employment opportunities for youth, and providing relief to the country’s foreign currency challenge by reducing its malt imports.”
Although barley production and productivity has grown tremendously in recent years, Ethiopia continues to import nearly 70% of its malt. The emergence of numerous breweries, both domestic and international, means that the demand can be expected to grow, and the country needs rapid solutions to the shortage in domestic supply.
“Ethiopia is an attractive country to invest in because of its vast, yet largely untapped potential,” stated Mr. Christophe Passelande, Malteries Soufflet CEO, “The country’s barley production capacity and the malt demand growth, coupled with Soufflet’s extensive international experience, promises a successful collaboration.”
Dr. Belachew Mekuria, EIC Commissioner, said “The growth of the manufacturing sector and, ultimately, the country’s industrialization is highly dependent on a transformed and efficient agricultural sector. The coordinated effort of government institutions including the ATA, IPDC and EIC has led to materializing a project of this magnitude that will contribute to this Transformation Agenda on agriculture and industry.’
The signing ceremony took place in the presence of senior representatives from the partner organizations, as well as the Ministry of Agriculture and Livestock Resources, Ethiopian Institute of Agricultural Research, Oromia region, and others.
Soufflet is a French, family owned, foods group of international scope. It operates in particular in the barley, wheat and pulses sectors. The biggest family-owned, on-farm buyer of cereals in Europe, it also operates on the international cereal markets through its Soufflet Négoce subsidiary.
• Soufflet is a major operator on the world malt barley market with 27 plants in Europe, Asia and South America.
• It is one of Europe’s top wheat millers with eight mills in France and Belgium. It is a significant manufacturer too of plant bakery goods in France and Portugal, and also operates on the fast food market.
• With Soufflet Biotechnologies, the Soufflet Group invests heavily in finding new added value for agricultural resources.
• The Group employs 7,520 staff in eighteen countries.
IPDC is a public enterprise established in 2014. Bolstered by the full support of government, IPDC is becoming an engine of rapid industrialization that nurtures manufacturing industries to accelerate economic transformation, and promote and attract both domestic and foreign investors. To activate both pre- and post-investment servicing, it provides serviced industrial land, pre-built sheds equipped with all-encompassing utilities, and infrastructural facilities that fit international standards, with no compromise on workers’ security and environmental safety.
The EIC is an agency of the Government of Ethiopia accountable to the Ethiopian Investment Board chaired by the Prime Minister. It is mandated with promoting, facilitating, and converting investments in Ethiopia. The Commission offers a range of essential services to domestic and international investors, including promoting potential opportunities, issuing permits and licenses, negotiating and registering agreements, and playing an advisory role.
About the ATA
The ATA was established by the Government of Ethiopia in 2010 to catalyze agriculture sector growth. It is a strategy and delivery oriented Agency created to accelerate agricultural transformation by addressing systemic bottlenecks and enhancing and supporting the capacities of public and private implementing partners. The ATA’s mandate focuses on improving the livelihoods of millions of Ethiopian smallholder farmers.