Product Description: Glue can be obtained either from plant or animal sources.

Glues obtained from boiling animal hides or bones are called animal
glues. Animal glue is insoluble in cold water but absorbs 6 to 8 times its weight of water at temperatures below its congealing point. Glues are mainly used as
adhesive materials whereas gelatin is valued mainly according to its stiffing jelly and emulsifying properties. It is also used as one ingredient for colloidals, in
sizing and coating.

2. Rationale: One of the main inputs for producing glue is animal bone. This input can be obtained from abbiatores, meat processing factories and from
other traditional sources where livestock are killed for consumption. The natural death of cattle is also a source of animal bone. With all these sources, however, no
attempt has been made to produce glue on a commercial scale. One exception is the unit within the Addis Ababa Abbiatores which produces a modest quantity of
glue for domestic consumption. The supply of animal bones outside Addis Ababa is not used for any economic purpose; it is simply thrown away. Since animal
glue is used by many types of industries such as shoe making, wood working, packaging, etc, the product has market as well as raw material.

3. Market Potential: The number of industries which use animal glue is increasing. The leather shoes industry alone consumes a large quantity of animal
glue every year. So is the wood working industry. Practically all the animal glue requirement of the country is met by imports. Even in the absence of quantified
figure as to the amount of animal glue consumed in the country annually, one could safely assume that there is a market for the product which can sustain the
viability of a small animal glue making plant. This plant can be established in the Amhara Region which contains more than 28 percent of the livestock resources
of the country.

4. Source of Raw Material: Cattle bone can be collected from the slaughter houses of the Region as well as from other traditional sources.

5. Process and Technology: The main processing stages are preparation of stock, extraction or boiling, treatment and jellying and drying the
solution. Crushed bones are first treated with lime to dissolve and remove unwanted materials. Lime reduces the bulk of the fat inactive by saponification. After
the liming process, the alkali and other chemicals are completely removed by washing with pure water. Sometimes weak acid is added to neutralize the lime and
reduce the washing period. For boiling the mass of the glue, if steam is not available, double jacketed pans which utilize cheap minerals oil or caster oil can serve
the purpose. Glue solution is now steam evaporated by using multiple effect evaporators under vacuum and low temperature. Machinery needed include mini
boiler, storage and mixing tanks, boiling tanks, evaporator, driers, paddles for liming, vacuum pump and motors, disintegrator, weighing machine, tools and
testing instruments.

6. Estimated Investment: For a plant which can produce 100 kgs of animal glue per day, the estimated investment will be:

 Building/Shade 150 m2 at Birr 2000/m2 = Birr 300,000

 Machinery = Birr 150,000

 Working Capital = Birr 100,000

550,000

7. Benefits: Saves foreign exchange and financial resource of the Region, utilizes and resource (animal bone) which is being wasted, has the potential of
bringing financial resources to the Region, introduces new skills and technology, and promotes self-sufficiency.

Option 2

Product Description:

There are a number of fruit types from which drinks or juices can be made. The common fruits
from which fruit drinks or juices are made are organizes, grapes, pineapples, mangoes, papayas
and other fruits of the citrus family. The juices or drinks are consumed usually during breakfast
time or in refreshment hours. Processed fruits and drinks are normally packed in cans, bottles,
plastic pouches or even in cartons.

Market Potential:

Currently, there are three main sources for the supply of fruit based drinks and juices in the
country. The largest supply comes form households, snack shops, pastries, coffee shops,
restaurants, hotels and “juice houses”. It is almost impossible to estimate the volume of supply
from scattered sources. The other domestic source is Merti Fruits Processing Plant located in the
Awash Valley. This plant has produced an average of abut 1300 tons of fruit drinks per year
between 1986 and 1995; and during this period production by the plant had grown by 1.5 percent
per year. The third source of supply is import. During the last 15 years, because of related
foreign exchange control, imports of fruits drinks and juices have been growing fast. Now all the
so-called super-markets and even small and large grocery stores are filled with imported fruit
drinks and juices. In fact this has negative impact on domestic production. Some newly
established “milk Processing” enterprises supply what they call “fruit juices” to the market.
(How a milk, processing plant can produce fruit juice is not clear.)

The main determining factors for the demand of fruit juices and drinks are income and
population size especially urban population. Admittedly, consumption of fruit juices and drinks
in the Amhara Region is confined to a small section of the urban population. If we assume only
20 percent of the 400,000 urban families in the Region consume fruit juices and drinks regularly,
the size of consumers in the Region is about 80,000. if we assume that a family of five consumes
at least two liters of fruit juice or drink every day, the annual consumption of these products in
the Region is 58,400 tons = (80,000X2 lit. X 365/100Kgs; 1000 lits.=1000Kgs.). One can feel
this is very optimistic estimate. To be on the safe side, let us say the estimated demand is one-
half of the above estimate. This leaves us with a potential demand of 26000 tons per year. This
can justify the establishment of medium size fruit based drinks and juices producing plant.
(project ideas have proposed the establishment of citrus fruits plantations in the Region.)

Sources of Raw Materials: Citrus fruits plantations in the Region and outside the Region.
Process and Technology:

It is assumed that orange juices and drinks will be the main products of the plant. The Process of
producing these products require cleaning of the raw material (organs), warming the fruits
peeling, juice extracting, pre-heating and cooling, centrifugalization, deaeration, seasoning,
sterilization, filling, cooling, labeling and packing.

The main plant and machinery required are, receiving line and bins, inspection, washing and
sizing, juice, extractors, finishers, pasteurizer, filler and sealer, cooling machine, labeler,
centrifuge, evaporator, vessels with pumps, boiler, conveying unit, laboratory, concentrate
production machinery and equipment.

Estimated Investment: For a plant that will produce about 10,000 tons of fruit juices and
drinks, the estimated investment will be:

 Buildings 3100m2 at Br. 2000/m2 ………………….=Birr 6,200,000

 Plant and Machinery ……………………………= Birr

22,000,000

 Working capital ………………………………… .= Birr 2,000,000

Total…………………… =
Birr 30,200,000

Benefits: Saves foreign exchange and regional financial resources, stimulates regional
production of citrus fruits promotes self-sufficiency in food production

Location: Bahir Dar or localities around like Tana