Norfund invests in beef exporter in Ethiopia

Addis Ababa, April 1, 2017 (FBC) – The Norwegian Investment Fund for Developing Countries (Norfund) yesterday announced an investment of 7.4 million US dollars in Verde Beef Processing PLC, an Ethiopian beef producer.

The capital provided by Norfund will help VBP become the largest cattle processing operation in Eastern Africa by enabling the construction of a state of the art abattoir and meat processing facility – currently underway – and also fund working capital for the business.

Verde Beef Processing PLC (VBP) is an integrated beef producer that undertakes feed production and feedlotting activities.

The company produces premium beef and aims to become the largest cattle processing operation in Eastern Africa with a target output of more than 130,000 carcasses per year.

VBP has a significant cost advantage over its international competition, and is expanding its feedlot operation in Ethiopia to capitalize on this; producing high-quality beef for export and local markets.

Ethiopia’s geographical positioning combined with its livestock population, the largest in Africa and the fifth largest in the world, position the country perfectly as a potential provider of meat to the rapidly expanding markets of the Middle East and Northern Africa (MENA).

The beef farm is located in the Adami Tulu district of the Oromia regional state, close to the new railway line to Djibouti.

The company is part of the agricultural transformation in Ethiopia, and has been instrumental in the development of the surrounding community through purchase of bull calves and inputs for feed.

The company has today created over 400 jobs directly on the farm with the upgraded skills needed for competing in the global beef market.

In addition, more than 3,500 jobs have been created indirectly through local sourcing of calves and feed inputs.

As the company expands, these numbers will grow, and is anticipated to reach 2000 employees and supporting over 50,000 livelihoods when the company reaches full operation.

VBP also supports the Ethiopian economy by creating a premium product with local resources, which is then exported, generating much needed foreign currency.

Source: PRNewswire