Abattoir Proposal

Abattoir Proposal
CHANGE THE CITY

NEEDS
August 14th, 2023

08/12/2015
Simplify, and amplifying the meat
industry
Contact
Phone +2519 32 52 68 69
Website www.bit.ly/GSAbattoir
Email gns.abattoir@gmail.com G&S Abattoir
Your Go To
Address Around Haile Garment, Industry Area,
Addis Ababa
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Executive summary
G&S Abattoir, is a private company
G&S Abattoir
Your Go To specialising in the production and sale of
red meat product. It utilises current
technologies in sales and procurement
to serve Sheger City, Addis Ababa and
its environs with high-quality meat
products. To ensure the success of the
YeLemat Tirufat Legacy Program, it is
prepared to implement a strong product
and marketing collaboration.
Along with rising national per capita

income, urbanisation, population growth,
and a greater awareness of nutrition, the
demand for red meat is growing quickly,
and this is likely to continue in the years
to come. The goal of this project
proposal is to help the people who breed
livestock by making more direct and
indirect jobs available in the city. Better
meat production will help women and
young people in particular improve their
incomes and make sure they have
enough food and nutrition. We will also
bring in money from foreign trade, help
create jobs, and make money for the
business.
After finding the complex problems in the meat market chain, the project will help
them fix them through community-wide development and standardised marketing
strategies. This will shorten the marketing chain by making it possible for private
farms, cooperatives, or privately owned suppliers to make a product with the right
quality and amount for the market and customer. By making a clear, short, easy, and
reliable model for market access that is easy to use and reliable. The meat trade
can grow in a clear, short, easy, and reliable way.
G&S Abattoir plans to construct and operate an abattoir in Sheger City.

Furthermore, we wish to open a B2B night market on an area of 10,000 square
metres in a convenient portion of Sheger City. Consumers will be able to buy
directly from suppliers at a reasonable price.
The primary emphasis of the project proposal is the market-driven supply of

improved meat animals, pricing and marketing strategy, operational and
organisational arrangements, production technology expansion and machine
selection, logistics infrastructure, socioeconomic context, project implementation
schedule, and project analysis finances.
The building project will have a slaughterhouse, a station for processing meat, and a
night meat market. It also tends to work with 200 organised farmers to do fattening
work, and the breeding department will offer lambs, cattle, goats, and chickens for
work and sale. The company wants to sell at least 500 tonnes of red meat every
year. To do this, it will work with out growers and breeder farmers to grow the meat.
It is also planned to bring an average of at least 3000 cattle, 2000 fattened lambs
and sheep, and at least 1500 goats to the digital market by setting up market links
with sheep and goat breed improvement, fattening, and marketing cooperatives
that are supported by government and non-government organisations in each
department.
G&S Abattoir is ready to start exporting goat and lamb meat by making a deal with
a Saudi red meat importer. This will allow them to get into the export market. It is
expected that 141 thousand dollars will be made in the first year alone by sending
over 24 metric tonnes of beef.
In accordance with the rules set by the Sheger City and Farmers Agricultural
Commission, a medium-sized slaughterhouse for cattle, sheep, and goats has been
built to stop illegal slaughtering in the city and meet the needs of the users. It is
expected that the service will keep going at the new place.
About 9 million Birr are needed to start up and run an organised G&S Abattoir for
the first time. This includes the initial investment, the money used to run the
business, and the costs of starting a new project. Out of the expected initial
investment, will go towards building, equipment, vehicles, and buying founder
sheep breeds that increase production.
Business capital and long-term debt will be used to get money. The initial
investment for the night market is expected to be 23.3 million birr, which is 25% of
the total. The other 75%, or 70%, will come from long-term loans. Also, it is assumed
that the long-term loan will have an interest rate of 12.5% per year and be paid back
over ten years.
Animal husbandry requires a lot of work, so giving people in the area a chance to
work is a good thing. Overall, the project will give many permanent and temporary
workers a chance to work. These are both direct and indirect jobs that are made
possible by the business chain of the animal trade Animal products are full of
nutrients, and some of them aren't found in other foods very often. They are
important for children's growth and for women's and older people's health. This
shows that the project has an important part to play in solving this problem by
creating wealth. After a few years, the project will be used as a place to teach and
train people about how to make sure the local community has enough food. The
exchange of experience will also help with the transfer of technology in Sheger City
and the area around it. The project will set up a digital system for transactions that
is up-to-date and will show other taxpayers how to make their work easier. Based
on the numbers given, it is estimated that he will have to pay a tax of at least 1.5
million birr every year. On the other hand, the project has come up with a plan to
replace imported meat with domestic products to save foreign currency. This is in
addition to participating in the foreign market. It works hard to meet their needs by
partnering with four- and five-star hotels. So, it plans to work hard to save the
foreign currency that is used to buy meat from other countries.
In general, G&S Abattoir has gotten a good location for this project from the Sheger
City government. It will use well-functioning technologies to make high-quality
products, and it will organise production so that the products can be sold on the
local market and sent abroad. It will be a place where better animal breeds can be
found for the whole country, as well as for urban farmers and youth groups in the
project area.
Even though the project will go back through the production and marketing chains,
it will also build input supply and extension infrastructure. It will also provide the
area with stray sheep species. In addition to serving and doing research, it will be
set up as a starting point for visiting and teaching models for elementary and senior
secondary schools in Sheger city and Addis Ababa, as well as a starting point for
future animal husbandry and health professionals.
Contents
TOPICS OF THE PROPOSAL G&S Abattoir
Your Go To
03. INTRODUCTION
05. ABOUT US
05. OUR TEAMS
07. MARKET RESEARCH
27. TECHNICAL STUDY
31. FINANCIAL PRE-FEASIBILITY

2.Introduction
Sheger City serves as the gates to nation's capital. That is home to the
African Union, numerous United Nations agencies, and diplomatic missions
from throughout the globe. Regarding education and income, the founding
people, who were directly or indirectly involved in farming, trade, and the
military, had a totally different social structure than what exists today. All
aspects of life and commerce have been modernised, but the purchasing and
selling of animals has altered little since the city's development. This
indicates that the market system is difficult to comprehend, assess, and
evaluate, as well as slow. Although the city authority of Addis Ababa has
established significant animal markets in several locations, there are not that
many. This implies that the city's more than 5 million residents and users
cannot swiftly and easily purchase their desired items at these conventional
and inexpensive markets.
On the other hand, evidence indicates that demand for red meat is increasing
rapidly. This will continue for the next 30 years since the national per capita
income is increasing, cities are rising, the population is growing, and people
are becoming more conscious of how vital good eating is. To leverage this
market opportunity as a means to escape poverty, it is crucial to pay close
attention to the industry. Encouraging and modernising livestock
development could enable more rural and urban residents to obtain direct
employment. In addition, the process of adding value and marketing has the
potential to ensure that people have adequate food and nutrition and
provide employment opportunities for young people and women.
According to Ethiopian research, many women are active in the development

of animal resources, notably cattle, sheep, and goats. This is because women
benefit more from the growth of this industry. This is also obvious from the
acts of other nations in the past. Similarly, it has a major influence on young
people's employment and income development. In recent years, the bulk of
G&S Abattoir Proposal 3

agricultural employment created by the country's job development
programme have been animal-related.
Despite the fact that the cartel, sheep and goat production sector is quickly
increasing in the developing world, research suggests that we may gain a lot
by creating breeding-friendly habitats in places like Ethiopia.
In general, the sector is difficult and fraught with obstacles, but there is
plenty of room for growth. In the coming years, the government and private
sector will work together to identify technical and institutional issues as well
as good opportunities, and then address them in order to increase
production and productivity, reduce poverty, ensure adequate food and
nutrition, and generate foreign currency. In order to significantly contribute to
economic prosperity, we developed a centre for rearing and selling lambs.
This organisation is unique in our country and exemplifies how to solve the
key challenges of sheep and goat development, sales, and slaughter. This is
accomplished by implementing a digital marketing system and modernising
the marketing system. It also provides high-quality meat products that suit
people's lives and meet everyone's desires. A production-marketing strategy
will be introduced in the smaller cities surrounding Sheger City in order to
assure the success of the YeLemat Tirufat Legacy Project. This model is
available for use in the following ways.

3. About Us
The name of the project :- G&S Abattoir, a private association, is
modernising cattle, sheep and goat production and commercialization over
five years (2023–2028 fiscal year) to achieve the following goals and
objectives.
Goal: By expanding the production and productivity of cattle, sheep, and
goats, ensuring the food system's food security and contributing to
international trade earnings and job creation.
Address: Nefas Slik Lafto District/City, District 08, House No. Addis, Addis
Ababa:
Legal Organization: Private Limited Liability Company
Business sector: Animal (Cattle, sheep and goat) sales, research, value
addition, product sale and slaughtering.
Vision Mission
To establish a modern To make G&S Abattoir
and accessible red lucrative and sustainable by
meat trading system in implementing a clear,
Ethiopia that is based succinct, convenient, and
on reasonable price and reliable livestock marketing
quality. system between breeders
and consumers of animal
products.
Purpose:
To conduct sheep, goat and cattle trade by establishing a model market
centre where the animal breeder/producer earns a reasonable income for
his hard work, the consumer is not cheated, and his comfort is not
disturbed, and where healthy and high-quality sheep and goat meat can
be traded reliably and at reasonable prices.
Using a market-driven approach to animal husbandry, integrating the
rearing-to-market chain in a model farm of quality and safety for animals
and meat, and cooperating to achieve these goals.

for residents of Sheger city, Addis Ababa and its suburbs, with private
breeding farms and cooperatives participating in the supply chain from
production to consumer delivery. to provide someone with,
Increasing exports to domestic and international markets as well as the
amount and quality of sheep, goat and cattle's meat produced in order to
increase breeder and processor income as well as foreign exchange
earnings;
By substituting imported meat with alternatives produced domestically,
we may limit the swelling tide of low-quality and unreliable supply meat
imports into the country.
This produces direct and indirect employment opportunities, which are
advantageous for the farm, the distribution centre, the market, and the
customer.
When the city's market swings, increasing the price of sheep and goats
can help to restore equilibrium.
I propose mobilising the local youth to develop and implement a cutting-
edge waste management strategy for the byproducts of cattle breeding,
fattening, and slaughter for the sake of the city's beauty and cleanliness.

4. Market research
G&S Abattoir has offered community-wide development and standardised
push/pull company marketing tactics after identifying difficulties in the sheep
and goat market chain. Push business is the production of quality and
quantity of products based on private farms, cooperatives, or private
integrated markets, whereas pull business means shortening the transaction
chain by connecting with push business by developing a comprehensive,
accessible, and trustworthy market access. G&S Abattoir in Sheger City will
establish a modern business and marketing chain of red meats that works
directly with producer/breeder farmers and cooperatives, accelerates
production and productivity, and implements the ideas and programmes of
YeLemat Tirufat's legacy directly to establish a night market centre and
strategies to achieve the mission. They are designed and presented in the
following manner.
4.1 Country Background and the Meat Business in Ethiopia

4.1.1. Broad Overview
The agro-processing business plays an essential role in development,
particularly in The agro-processing business plays an essential role in growth,
particularly in emerging nations. The agro-processing sector accounts for an
average of 52%, 36%, and 32% of the value added to manufacturing in Low-,
Middle-, and Upper-Middle-Income Countries, respectively. In addition, the
contribution might reach 66% for agriculture-based countries and 38% and
37%, respectively, for changing and urbanised countries. Agribusiness can
support agricultural sector growth and reduce rural poverty. Similarly, the
New Growth Path has identified the agro-processing industry as a key option.
In general, the rising demand for animal-based foods in emerging nations,
fueled by population growth, advances in real per capita income, and
urbanisation, promises a significant opportunity for poverty reduction and
economic expansion. (Source: Wilkinson and Rocha, 2009, World
Development Report 2008).

Since olden history, the Ethiopian economy has been dominated by
subsistence agriculture with a low input-poor production, rain-fed farming
system. Due to the consolidation of macroeconomic and political stability
throughout the country, Ethiopia's current growth rate exceeds that of many
other parts of the world. Over the period 2002–2007, Ethiopia's economy
grew by more than 11 percent annually. Ethiopia's economy structure is led by
the service sector, which accounts for almost 45 percent of the average GDP
share, followed by agriculture, which accounts for 44 percent of the average
GDP share. The contribution of the industry sector to the real GDP is the
lowest of all, at only 11%. (Source:-MOFED, 2013).
In the meat industry, attempts are made to develop modern abattoirs, but
hardly none are constructed with the concept of a modern slaughterhouse,
which includes an integrated byproduct and waste management facility. The
drainage system, process layout, slaughter equipment, and amenities are
inadequate and of low quality. In particular, the industry lacks technical and
administrative skills. Hence, the slaughterhouse provides a restricted, subpar
service to city residents. Because of this, illegal and informal slaughter has a
substantial market share. Ethiopia has the tenth largest livestock inventory in
the world, on average. Yet, the nation's part of the worldwide meat export
market is now fairly small.
In 2011, it was anticipated that global meat exports amounted to USD 105
billion, of which Ethiopia sent less than one percent, primarily chilled sheep
and goat carcasses. This places Ethiopia as the 43rd largest exporter of beef,
indicating that we have an opportunity to increase our profit share on the
international market. Moreover, if the current technology issues are resolved,
there is a potential export market consumer base for the meat sector in
Africa and the Middle East. Meateng Consertium (2016). Feasibility Study of
New Abattoir Construction for Addis Ababa Abattoirs Business.
4.1.2 Meat Industry Products and Manufacturing

The Ethiopian meat products consist solely of cattle, sheep, and goat
carcasses with no added value. The Addis Ababa Abattoir Enterprise is

the largest abattoir serving the local market. In terms of local meat products,
there are only carcass meat products manufactured from various municipal
slabs and supplied by butchers, hotels, restaurants, and supermarkets.
Nonetheless, it is estimated that roughly 40% of the cattle and 80% of the
small ruminants in Addis Ababa are slaughtered illegally outside of the
abattoirs. (Source: 2017 Ministry of Science and Technology Meat
Technological Road Map)
Figure 1: Livestock slaughter levels for Ethiopia in the period since 1993 as reported to FAO from official
Ethiopian government statistics and Ethiopia meat production trends since 1993 Source: Meateng
Consortium Consulting Firm, Feasibility Study for AAAE – 2014
From Addis Ababa, nearly all exports consist of chilled, bone-in carcasses
that are air-freighted. Thus, there is no practise of adding value to meat, and
the sector does not benefit from either the domestic or international
markets. Thus, several five-star hotels and caterers import a substantial
amount of beef from outside.
The export industry of beef appears to function infrequently, as evidenced by

the fact that of the amounts shipped in 2012, around 60 percent were
quarters with bones and the remainder were deboned hindquarter and
forequarter cuts. The abattoirs that handle sheep and goats appear to be
working very well, and this subset accounts for over 80% of exports by
volume in 2013. The quality of the meat is also affected by improper pre- and
post-slaughter management of the animals. In addition, the majority of
industries lack adequate chilling, freezing, storage, packaging, and labelling
technology to ensure optimal preservation for a lengthy period of time.

Hence, Ethiopian beef does not have a brand name on the worldwide market
like other meat exporting nations such as Namibia, South Africa, Brazil, etc.
Some explanations for the low demand for Ethiopian products overseas
include poor quality, lack of worldwide recognition, a restricted advertising
strategy, etc. Meat output per head of livestock in Ethiopia is low compared
to other major livestock-producing African nations: about 8.5 kg per head of
cattle per year, much less than in Kenya and Senegal (21 and 16 kg
respectively). Ethiopia has a low rate of consumption compared to other East
African nations. 2014 Meateng Consortium Consulting Firm Feasibility
Analysis on the AAAE
4.1.3. The Consumption Culture and Consumers of Meat in

Ethiopia
A diminishing growth rate was then applied to subsequent years,
commencing at 2.5 percent in 2013/14 and decreasing to less than 1.6 percent
in 2036/37, resulting in a projection of 136.7 million people by 2037. Almost 31
percent of the population will reside in urban regions by 2037, according to
the CSA's projections for the urban/rural composition of the population over
the next few decades. Hence, CSA forecasts that Addis Ababa's population
would increase from the previously mentioned 2.7 million people to over 10
million by 2037. The time series for Ethiopia shows that there has been a
small rise in per capita consumption over the past decade. The majority of
the meat consumed will be beef and veal (67%), followed by mutton and lamb
(13%), goat (12%), poultry (5%) and camel or other meats (3%). Pork
consumption is practically nonexistent. This indicates that there is a
considerable demand for beef on the home market. (2014) (Meateng
Consortium - Feasibility Study for AAAE) The vast majority of sheep and
goats (90%) and cattle (70%) are butchered informally on homesteads or in
small communities with no professional slaughtering facilities (MOARD, 2007).
The Ethiopian meat products consist of cattle, sheep, and goat carcasses
with no additional value addition.
The AAAE is the largest local meat processing facility. Yet, it is believed that
roughly 40% of cattle and 80% of small ruminants (shoats) in Addis Ababa

are illegally slaughtered outside of abattoirs. (AAAE market study 2005).
In Ethiopia, it is traditional to slaughter a cow or ox for the sole purpose of
selling within the community. On important events and holidays, people
organise a cultural ceremony for slaughtering cows or oxen, but no other
animals, and sharing the flesh among the community. This practise, known as
kircha, is popular in rural areas where access to meat is difficult. Ten to
twenty people typically purchase a live animal, slaughter it, and split the meat
among themselves. Kircha is a kind of communal organisation and meat
distribution (butchering live animal and sharing the meat in group). Ethiopians
regard Kircha to be their social capital (KoreanJ Food SciAnimResour. 2014).
The technique is also prevalent in some Ethiopian communities, where the
elders particularly love participating in the activity. On holidays, neighbours
form a kircha to purchase a huge ox and divide it equally, then draw lots to
determine which pile everyone receives. That is less expensive than visiting a
butcher (Janet et al., 2013). According to Kifleyesus (2007), the meat is
separated into equal amounts consisting of a package including each internal
organ, muscular meat, and bone from the killed animal. The number of
compartments determines the package's dimensions (Pankhurst, 1988). The
larger the number of divisions, the smaller a package of meat will be.
Regarding ancient Ethiopian meat intake, one of the factors was the
prevalence of meat consumption in ancient society. Cultural and religious
factors have played crucial roles in the processing and consumption of meat
(Kim et al., 2004).
4.1.4 Meat Industry Supply Chain and Value

In the context of this document's primary objective, it is worthwhile to
emphasise some facts concerning the livestock sector, which is the primary
supporter and foundation of the meat business. Ethiopia has the largest
animal herd in sub-Saharan Africa, with an estimated population of 56.7
million cattle, 29.33 million sheep, and 29 million goats (Source:-CSA, 2014).
According to 2014 FAO figures, which include both official data and the
organization's own estimations for missing years, Ethiopia has a substantial
number of cattle and shoats, as seen in Table 1. Yet, the quantity of camels
and pigs is substantially lower. According to the data, Ethiopia retains a

prominent position in terms of the number of ruminants, but not so much for
poultry (mostly chicken in Ethiopia) and is not a pig-farming country, ranking
just 37th in Africa and 137th globally.
Figure 1: Ethiopian livestock numbers with Africa comparisons, FAO 2014
(Source:-French Veterinary International – Feasibility Study for AAAE – 2016)
The intent and purpose of the region's agricultural output are inextricably
linked with livestock holdings. The structure of the national cattle herd follows
these functions, with 40% males and 60% females to optimum herd
replacement. (Source: 2014 CSA) Large-scale commercial operations are
hampered by the fragmented and geographically distributed nature of
livestock rearing as a source for the meat industry. Meat cattle productivity is
significantly below potential (among the lowest) and characterised by low
birth weight, sub-optimal growth rate, average age at first calving (4.5 years),
Boran cows under pastoral management (4 years), Boran cows at Abernosa
ranch (22 months), long calving interval (2 years), delayed age to reach
market or slaughter weight, low power output of draught animals, and average
meat production per slaughtered animal (110 kg beef and 10 kg mutton).
This is due to extremely low off-take rates, a large number of animals that
bypass abattoirs and are exported alive, producers who are not commercially
oriented and sell only when in need of cash or when draught animals become
too old, and a lack of certifications and international standards by meat

processors.The federal government's agriculture department estimates that
the average carcass yield per animal slaughtered is 110 kg for cattle, 130 kg for
camels, 10 kg for sheep, and 8 kg for goat. Until recently, livestock output
growth rates were low and lagged behind population growth, which is
accelerating.
The lack of improvement in average carcass weights over the past two
decades highlights the underdeveloped nature of the livestock sector, where
traction, milk, and fibre production are more important than meat production.
In the absence of further data, the FAO's estimations are incorporated into
the assessment of the overall supply being conducted here.
Ethiopia's cattle and sheep holdings are now underdeveloped and not part of
an integrated commercial chain in which demand drivers determine the
quantity and categories of livestock that enter the marketing system. At the
level of the smallholder, livestock are kept as long as feasible, as they
represent cash in the bank and are likely kept beyond their prime meat
producing period. This has a knock-on effect on the age, condition, and
musculature of the animals that are euthanized, and it is a key impediment to
the short-term development of a commercially-focused meat production
business as opposed to a livestock production system.
4.1.5 Distribution of Beef in Addis Ababa

According to (International Livestock Research Institute Addis Ababa,
Ethiopia June – August 2004), of the 34 butcheries surveyed in the Addis
Ababa region, only one purchased live animals directly from a farmer. The
remaining 33 purchased kilogram-priced live animals from a vendor at a live
market. Typically, Addis butcheries sold just meat. In addition to beef, only
5.8 percent sold sheep meat and 2.9% sold poultry. Apparently, no butcher
shops sold goat meat. At an average live weight of 160kg and an average
carcass weight of 114kg (error of 54.65kg), these Zebu-type cattle allegedly
sold at the live terminal market for 16.5ETB/kg (error of 732ETB/kg). The seven
interviewed supermarkets followed a similar pattern. Also, all beef, sheep, and
goat were purchased from a trader at a live terminal market and sent to the
Addis Ababa Abattoirs.

Figure 2: Fresh meat distribution tracks with Vance in AAAE
Ante-mortem and post-mortem inspections are required to authorise meat

for human consumption based on its quality and safety. Meat prices might be
determined in accordance with the International Livestock Research Institute
in Addis Ababa, Ethiopia. June – August 2004. As compared to the norms of
affluent nations, meat prices can fluctuate, but the quality is typically low. No
official classification of carcass quality exists between slaughter and resale. In
accordance with a proclamation from 1976 and a set of rules developed by
the Ministry of Agriculture, all export abattoirs are obligated to check all meat
before to shipment. Yet, many of the regulations are not followed by abattoirs
that produce meat for local consumption. During a visit of the Addis Abattoir,
which slaughters animals for local consumption, for instance.
Figure 3: AAAE’s finished fresh meat which inspected; ready to distribution. (Source AAAE-
2019)
Quality of Meat Production at Addis Ababa Abattoirs Quality is defined from

several angles. During slaughtering and meat distribution to consumers,
quality meat is characterised by hygienic handling, correct handling, and a
cooling facility.

As per International Livestock Research Institute (ILRI)-2004, this is a
Business-to-Business (B2BSERVQUAL) relationship. There is no system for
grading or naming meat, for example. A few butcheries and numerous
supermarkets claimed that the beef round was the highest-quality cut of
meat, although with the exception of one supermarket case, there was no
pricing disparity. Also, butcheries stated that kitfo was categorised as being
of the best grade, with no price disparity. The supermarkets slaughter and
package meat in a manner comparable to supermarkets in affluent nations.
Yet, butcheries take off random chunks of meat, bone, and fat and sell solely
by the kilogramme. Hence, stores sell meat of a higher quality.
4.1.6.Market Share of Addis Ababa Abattoirs and Butchers Meat

Market
In Addis Ababa, there are about 2,000 butchers who sell meat directly to
consumers. These butchers obtain abattoir services from Addis Ababa
Abattoirs Business and purchase fattened animals, mostly cattle, from
secondary markets. Addis Ababa Abattoirs Company provides services for
inspecting the health of animals, slaughtering them, and distributing them to
retail butcheries.
Figure 4: prepared cattle’s fresh beef at butcher on shelf for selling.

Figure 5 market share of Abattoirs in Addis Ababa

Problems encountered in the sheep and goat marketing chain
Ethiopia has 52 million goats and 43 million sheep, according to the Central
Statistics Agency. The average annual meat intake is 9 kilogrammes, while all
animal species produce 1,321,000 metric tonnes of red meat. It needs a
fivefold production boost. As the population and economy grow, Addis Ababa
and the surrounding area need the same quantity and quality of lamb, goat
lamb, and mukt for normal eating, significant public holidays, weddings,
birthdays, mourning presents, and other vital demands. Now hard to find.
Despite the supply-demand imbalance, sheep and goat prices are growing,
which hurts our worldwide competitiveness.
Field surveys and researchers found several sheep and goat development
and marketing issues.
When animals are prepared for sale, they must travel long, tedious
journeys to Addis Ababa and other towns. When they have to stay and
sell in places that are good for selling animals in the city, they typically
have to hang out in the middle of and along big highways, in the midst of
market roads, and in the area where waste is stored, and their marketing
system is unreliable and tedious.
The market structure is unclear, the price cannot be evaluated or
forecast, the price fluctuates and is difficult to negotiate, and a trading
system has been established that is governed by talent trading and
brokers.
The technique of selling sheep and goats by standing them on roads and
riverbanks is detrimental to the growth of the city, and the resulting litter
and odour contribute carelessly to the lack of cleanliness and
environmental damage.
Harassment, fraud, loud noises, and unpleasant odours generated by
unlawful traders and brokers at the sheep and goat market are
detrimental to the comfort and health of the clients and can lead to
abuse.
Sheep and goat market information is difficult to obtain for producers,
breeders, and farmers, particularly young farmers and women farmers
(Dugma 2013, Zehara 2014).

Being responsible for the operation of a sheep and goat market (donated
2011)
Even the producer sells to the buyer with the best price on market day,
but there is no sustainable hierarchical value chain between the seller, the
producer, and the buyer traders (Dugma 2013, Beweru 2013, Legese 2011).,
animal husbandry, and medical ethics prohibit the use of pharmaceuticals
and chemicals. The term for this stage is withdrawal. Nevertheless, the
manner in which sheep and goats are purchased and sold nowadays
makes it impossible to determine where the animals came from, and
there is insufficient evidence to determine whether they were given
medication while travelling or remaining. This method of purchasing and
selling is hazardous to the health of the community, particularly that of
parents and children.
In a business value chain like this, where there isn't much trust between
the producer and the local trader, it's clear that the producer and trader
don't try to build a long-term relationship. Instead, they come up with a
way to make more money by switching suppliers (Dugma 2013, Beweru
2013, Legese 2011).
When people in the goat trade buy things, they don't buy by kilos based
on the weight of the animals. Instead, they buy things by guessing, which
is boring and unreliable. Also, the producer doesn't understand the value
added by fattening, and it's not a system that encourages production or
productivity.
In addition, there are more and more illegal traders and brokers who buy
goats or sheep in the same market and sell them the same day for a profit
without adding any value, which drives up prices for consumers.
The sheep and goats market chain system has a suppressed flow of
information, making it impossible to trace back and identify the source of
the product. Trade costs are also high, and certain traders and brokers in
every area take the lead and control the market by distorting or
suppressing information.
Numerous government and non-government organisations have been
putting together a lot of sheep and goat fattening and marketing
cooperatives for a long time, but most of them don't make money.

The essence of committee work is to rely on purchasing and selling
prices, not being able to adjust to the speed of revenue in terms of
operations and decision-making.
Little understanding of record keeping and entrepreneurship; since
purchasing and selling work is carried out by committee, which raises
the operational costs required for the work and reduces the profit, the
associations can simply exclude them from the business game.
When purchasing a sheep or goat, it is difficult to find a slaughterer and a
goat, and asking for an excessively high charge when rearing, as well as
having a skill issue, which results in inferior skin quality.
According to study undertaken by the Ministry of Agriculture in 2015, 90
percent of the sheep and goats slaughtered in the city of Addis Ababa
are done so in settings that pose a threat to public health and
environmental damage.
4.2 Market competition / competition analysis

Few private entities raise cattle, sheep and goats in Ethiopia. Breeder farmers
do it. Sell sheep and goats. First, the breeder farmer sells animals at village
marketplaces to merchants or users. Regional traders sell to a wide range of
primary to terminal markets without improving variety or quality. We've
gotten this point by transporting and delivering sheep and goats to huge
urban markets in the same way for decades.
G&S Abattoir is an innovative way to sell cattle, sheep and goats from one's
own farm or cooperatively organised association members to produce a
market-oriented product by protecting the animals' health, improving
nutrition and management science, and creating market links directly from
the farm to the user societal structure on a scale, with the user acting as a
broker. G&S Abattoir is the first Abattoir to house it's own processing and
night market. We will be one of the few cattle, sheep and goat supplier in our
country to use a website. It is the only company that can offer high-quality
items at lower prices than traditional marketing systems due to market
modernization and technology for sheep and goat sales. The farm sells
animals in the market to the community of consumers, making the market

continuous and accessible. G&S Abattoir licences to small sales groups
organised by the association for those willing to follow the organization's
procedures since it cannot deliver lamb and goat meat at a reasonable price
to Addis Ababa consumers. Hence, G&S Abattoir can better serve Addis
Ababa consumers, making it a trusted and valued enterprise.
4.2.1. Addis Ababa Abattoirs Enterprise (AAAE)

Addis Ababa Abattoirs Enterprise (AAAE) is the major provider of fresh meat
and slaughtering services in the country. The company was established in
1957 with an average daily slaughtering capacity of 1,200 cattle, 1,000 small
ruminants, and 10 pigs on an area of 47 hectares around the city
administration in the south. Due to the city's expansion, the area is currently
densely populated. In addition to offering slaughtering services, the firm also
processes non-edible components of the corpse into pet and animal food.
For these operations, the company employs 1200 permanent workers, of
whom 601 are slaughtering service employees, 142 are By-product
processing employees, and 457 are support people and Akaki branch abattoir
employees. More than 95 percent of the labour force is managed by
collective agreements with legal force.
The basic internal operations of beef processing plants consist of cattle
holding, slaughter, hide removal, organ removal, trimming, weighing, chilling,
deboning, meat inspection service, and packaging/shipping.
The lack of suitable facilities at Addis Ababa Abattoirs Enterprise (AAAE), the
main provider of slaughtering services in Addis Ababa, has a substantial
negative impact on the environment. The structures are in a terrible state of
deterioration, and they do not meet modern construction or sanitary
regulations for the meat business. The site's characteristics and the existence
of historic structures make it subject to vermin infestation, and its
eradication is extremely difficult. Due to this, the food safety of the
company's products is questionable (Meateng Consotium, 2014).

142.2. ELFORA
ELFORA is a private company that has been around since 1997. MIDROC
Ethiopia Investment Group owns ELFORA. ELFORA was started when eight
units for processing cattle and meat, worth a total of $54.7 million, were
bought.
Food Processing and Crop Production is in charge of five factories that
process meat. Livestock Operations is in charge of supplying live animals,
buying centres, ranches, and quarantine stations. Poultry Operations has
advanced processing and packing units for broilers. It makes eggs, broiler
meat, and day-old chicks that can be eaten.
Today, ELFORA sends livestock and meat products to the Middle East (Saudi
Arabia, Dubai, and Yemen) and Africa (Djibouti, Congo Brazzaville, Côte
d'Ivoire, and Egypt). Melge Wondo, Dire Dawa, Kombolcha, Gondar, Metehara,
Netehara, and Debre Zeit Meat Factories make canned meat and meat on the
bone for both domestic and international markets.
The Debre Zeit and Metehara Abattoirs are used to send sheep and goat
carcasses to the Middle East. The Melge Wondo Meat Factory only sends
beef carcasses to the Egyptian market.
Cheffa, Nettle, and Melge/Shallo Farms all grow different things, like cereals,
fruits, vegetables, and feed for animals. The Debre Zeit Poultry Operation
makes most of its money by selling live chicken and eggs to people in the
area.
Since 1997, the Company's income and return on investment have been very
low and have even been going down. During its 10 years of business, a
company with over 400 million Birr in total investments had an average rate
of return on total investments (ROI) of only 2.3%. Several things are to blame
for the low rate of return on investment (ROI). Some products have a high
fluctuation in demand, which makes it hard to plan production. Other
problems include not using existing capacity to its fullest, a gap between the
time of production and the volume of demand, which causes supply
inconsistency, loss of sales, and stockpiling, higher selling prices than
competitors, a lack of marketing, rising air freight costs that make selling
prices too high to be competitive on the international market, and high
administrative costs.

4.3 Demand and Supply Analysis and Gap Analysis:
G&S Abattoir has identified a mismatch between the demand for and supply
of lamb and goat meat. The following evidence has been used to support
their analysis: In our country, the price of sheep and goats is determined by
the demand and supply of these animals. This varies daily, weekly, seasonally,
and due to various religious holidays. During a single market day, the price of
sheep and goats might fluctuate within a few hours depending on the
circumstances. This is due to the fact that each animal is unique in terms of
its sex, age, bodily condition, colour, and breed, as well as the buyer's and
seller's skills, such as their ability to negotiate, lack of price information, and
intent.
As India's population has increased, so has the quantity and diversity of
demand for mutton and goat meat. Especially in recent years, the taste for
goat meat has improved.
There is a high demand for mutton and goat meat in both the United States
and the expanding international markets. Ethiopians consume approximately
9.5 kilogrammes of meat per person per year, which is a negligible quantity
compared to other African or poor nations. Because more people desire to
eat meat, the price of meat has increased significantly in recent years, and
occasionally it has not decreased. It appears that low-income individuals
have made it difficult for wealthy individuals to enter the industry. Since more
people are living in cities and their wages are increasing, it is anticipated that
the demand for beef would increase. This will result in improved prospects
for the development of sheep and goats. In country-level studies, there is a
significant gap between red meat demand and availability. This is illustrated
in a report. Even though the Livestock Master Plan calls for red meat output
to expand from 1.275 million tonnes to 1.93 million tonnes between 2015 and
2020, there will still be a 7% supply deficit of 187,000 tonnes in 2020.
Population and economic growth in Ethiopia are accelerating, and it is
anticipated that demand will increase by 58 percent by 2020. This has put
pressure on red meat pricing, making it difficult to achieve the Growth and
Transformation Plan's red meat export goals. Meat has not yet been released
from pressure. Currently, the supply is in dire straits because to the rising
worldwide demand for cattle and meat. This is why G&S Abattoir is working

so hard; it is anticipated that it will cover a significant supply shortfall. It will
be an asset that minimises the country's supply gap by collaborating with all
stakeholders as intended. When it comes to exports, several Middle Eastern
nations with large livestock populations fight fiercely for markets for cattle
and animal products. South America, Australia, New Zealand, Eastern Europe,
and our closest opponents from the European Union and a few African
nations such as Sudan and Somalia are the primary competitors. Yet Ethiopia
also has superior market access and an advantage over its competitors.
Ethiopia's proximity to Middle Eastern countries makes it simple and
inexpensive to transport livestock to the Middle Eastern market. Ethiopia has
various advantages in the meat market in comparison to other competing
nations. Among these is the presence of organic livestock products. Also,
people in the Middle East enjoy the flavour of Ethiopian lamb meat.
4.4 Sales and Marketing Strategy:

Listed below are the methods through which G&S Abattoir sells and
promotes its products.
The G&S Abattoir will be constructed in the borders of Addis Ababa. It will
contain a primary sheep, a livestock shop, and a small sheep and goat
slaughterhouse. The trading centre has space for 1,000 improved breeding
ewes and is designed to produce at least 2,000 lambs annually. Following
three months with their moms, the cubs are transferred to a room for weight
increase. Following three months in the fattening room, the animals are
market-ready. Six months later, they are transferred to the sales room. Each
year, the feed and sale centre will handle the following amount of sheep and
goats:
The farm and market centre can simultaneously care for 3,000 sheep and
goats. On average, it will tend to between 12,000 and 15,000 sheep every
year for the local market. G&S Abattoir sells a substantial amount of animal
products to the general population using the following animal sales
techniques.
4.4.1 Livestock sales strategy

4.4.1.1 Direct sales

For those who consume lamb and goat meat frequently or on a daily basis,
sales will be offered daily from Monday to Friday from midnight to seven p.m.
at every site. During the major religious and public holidays, there is an
abundance of sheep and goats, which are sold in the market or at modest
sales locations. The land is sold by weighing it on a modern scale installed by
the corporation and multiplying that weight by the daily price per
kilogramme. The buyer is then prompted to make a purchase, and payment is
made using a digital payment system that is connected to all banks. This
method of payment eliminates the need to bring cash to the door.
4.4.1.2 Telephone-based Sales
The sheep and goats sold in Botot market are of high quality and do not vary
significantly in type or quality, so purchasers do not need to visit the market
each time they wish to purchase them. Dembegi is designed for goat market
specialists to rely on. Whether a Dembe buyer wants to purchase goats from
home, work, or abroad, he can call the company's phone number and specify
the weight, animal kind, and quality (lamb, goat or mukt). It will be calculated
based on the projected daily cost and paid for using a mobile banking
application or the internet. This way of selling is a sales approach in which the
company's transport truck delivers the sheep or goat to the buyer's desired
location.
4.4.1.3 Converting internet marketing to sales
www.bit.ly/GSAbattoir is the URL for G&S's website. This company's website
is used to sell sheep and goats. Customers select the type of sheep or goat
they desire based on images of the animals on the website, pay the fee online
through a streamlined payment system, and submit further sales-related
paperwork. It is a method of selling items. This is an effective method of
selling for Ethiopians living abroad, as they can present sheep or goats as
gifts to their parents and other family members at holidays and other
important events. This is a sales tactic that assists individuals in learning
about foreign exchange.
4.4.1.4 Sales to hotels, caterers, supermarkets, embassies, and others

Four- and five-star hotels in the city of Addis Ababa are looking for a brand-
name product that will cover their annual needs. Because we can't make a

brand out of the sheep and goats we raise and because we don't have an
organisation that can provide meat for this product all year, most people now
get their meat from outside the country. To fix this problem, G&S Abattoir is
set up to work together from the farm to the market. There are still efforts to
replace or cut down on imported production by making a lot of Doper-Awasi
hybrids. Since 2016, the work of hybridization has been done in a way that
takes into account how the two species hybridise. Because there are more
and more grocery stores, there is more demand for mutton and goat meat.
Work has begun to turn this marketing plan into a marketing plan that is
focused on payments. It will work if the amount goes up every now and then.
People who work for international organisations and offices in our city,
embassies from many countries, non-governmental organisations, and other
groups. There is a lot of demand for good mutton and goat meat. To meet this
demand, we've come up with a unique sales plan that includes regular pricing
and delivery.
4.4.1.5 Sales are done through franchise contracts with women and
young people in cities. Even though G&S Abattoir does everything from
raising animals to selling them in one place, it works with Farmer
Cooperatives to update the way animals are raised so that a lot of
sheep and goats can be brought to the market. The night market is set
up so that people from all sub-cities can use it. Ten groups of women
and young people who sell sheep and goats have been set up in each
district to use franchise businesses to sell and buy sheep and goats.
4.4.2 Use of organised sheep and goat marketing data

Red meat marketing information is prepared so that it may be
comprehended by breeders, farmers, consumers, users, and organisations.
Information technology is utilised to convey data in a permanent and regular
manner so that accurate market data can be obtained. Consumer-sold lambs
and goats will be classified by breed and grade, and a web-based digital
marketing system will be implemented to sell the healthy animals depending
on their weight. There will be adequate material posted every day.
With the help of online data, a transparent system will be created in which
both the buyer and the seller will be aware of the price that the association

has offered G&S Abattoir for the sheep and goats. Additionally, with the
assistance of non-governmental organisations, the Addis Ababa City
Government Trade and Industry Office, and the commercial offices of the
districts where G&S Abattoir operates, data on the sale prices of sheep and
goats in the districts and on the Addis Ababa market, as well as their level
and species, is being processed. available
G&S Abattoir uses viral marketing, which involves promoting a good product
to friends, family, neighbours, co-workers, and other interested parties who
have tried the product and loved it through word of mouth, social media, and
the Internet. Radio, television, and other forms of advertising and campaigning
are also employed.
4.4.3 Execution service
It is commonly known that all buyers of cattle, sheep, and goats slaughter
sheep and goats at home or on the side of the road, especially during the
holidays, even if they do not reside in the market or in near proximity. The
turning point of 2015 is speaking with the Addis Ababa City and Farmers and
Agricultural Commission and following the laws for building a slaughterhouse,
creating a standard design for this operation, acquiring a building permit, and
constructing it. A trial programme has begun offering moderate prices for
slaughtering services. This concept will make it more difficult for those to
illegally kill animals in Addis Ababa in the future, while simultaneously making
things easier for those who use it.
4.5 Analysis of strengths, weaknesses, opportunities and

threats
Organizational advantages and disadvantages; A breakdown of what's going
well and what could go wrong is also offered.
Strength
The founders of the Lamb Breeding and Market Center are enthusiastic,
dedicated, and motivated.
It is an asset if the general manager has worked in the market for a long
time and possesses a great deal of technical and management skills.
Being exceptionally skilled at their vocations and with a large number of
educated workers;

escalating need for animal labour and assurance of revenue;
Weakness
Lack of accessibility and affordability in terms of kind and quality of
animal feed;
Nowadays, acquiring extra funding is a difficult task;
The fact that freshly employed experts lack sufficient experience in
sheep breeding and marketing, as well as in high management and
accounting, necessitates additional training.
In addition to technical operations, the firm must organise management
information systems, accounting information systems, and performance
management systems.
During fasts, we will refrain from slaughtering.
Occasionally, the price of construction materials and inputs in our
country rises.
Good conditions
Introducing the present YeLemat Tirufat Legacy Program;
Strong demand for cattle production in the nation, with the local export
market at its core;
With a significant number of sheep and goats raised in various
agroecologies;
The expansion of moneylending institutions and the emergence of a
market for livestock development loans;
From an increase in national per capita income, urbanisation, population
expansion, and a greater understanding of the significance and value of
nutrition;
Threat
Insufficiency of available space for breeding and marketing facilities;
Having difficulty locating and managing electricity;
Living expenditures
The issue of peace, the rise of thieves, and the development of improved
breeds of sheep and goats to ensure sufficient food production.
Security

5. Technical study
5.1. Abattoir locations and resource provision
5.1.1 Abattoir and the need for a market place
In many developing nations, a lack of sufficient slaughtering facilities and
inadequate slaughtering practises may result in wasteful losses of meat and
valuable byproducts, and may be a major impediment to increasing animal
production. Animals are butchered in areas that are frequently polluted with
blood, intestinal contents, and unclean effluents, and are not protected from
insects, rats, or dogs. Meat prepared under these conditions will deteriorate
quickly owing to the bacterial load and may cause food illness. In the absence
of inspection, meat from sick or parasite-infested animals may serve as a
vector for the spread of diseases that affect both humans and animals.
Additionally, casual handling in filthy conditions in the meat market or stores
degrades meat quality. Furthermore, byproducts are not adequately
exploited and, rather than being an advantage, are regarded as a nuisance.
The creation of slaughterhouses of appropriate quality while remaining simple
and economical would help the issue.
The slaughter floor, which is technically suited to butcher cattle, sheep, and
goats, is the major module. Additional modules for byproduct utilisation, meat
preservation, processing, and butchering can be added to this slaughter floor.
Programs that target all nodes in the production chain outperform those that
focus on a particular activity. As a result, designs include a meat market to
ease the integration of production, processing, and marketing.
Slaughterhouses are an important part of the meat production and

distribution chain, but it is critical to provide adequately trained personnel in
order to improve slaughter hygiene and meat quality, reduce raw material
losses, increase byproduct utilisation, and thus increase profitability and
financial returns to livestock producers.
5.2. Abattoir and meat processing operational procedures
5.2.1. Introduction
The figure below depicts a summary of the slaughtering and meat processing
procedure.

Lairage
Anit mortem
Dirty Process
Slaugthering
and Bleeding
Skinning or scaling
Evisceration
Post-mortem
Clean Process Rigor Mortis process
Chilling, Hanging
and Packing
Delivery/Dispatch
Figure 6: Slaughtering and Meat Processing Process
The prefeasibility study is predicated on the construction of a fully

automated slaughterhouse and meat processing facility. The structure can be
divided into the following primary sections:
Lairage (Holding Area) and offloading and inspection areas,
Separate mutton & beef slaughter, skin removal, cleaning etc areas,
Deboning area,
Chillers (0c), Blast Freezer (-40c) and Store (-20c),

Packing area,
A separate By-products Floor & Chiller.
At the time of slaughter, animals should be physiologically normal and in good

health. Slaughter animals must be sufficiently rested. They should rest,
preferably overnight, especially if they have travelled vast distances multiple
times. Nonetheless, poultry is typically butchered upon arrival due to very
short transit times and distances. During confinement, animals should be
provided with water and can be fed if necessary. The holding time permits
the identification of damaged and victimised animals as well as the
quarantine of sick animals.
The slaughterhouses will be fully automated and outfitted with cutting-edge

equipment to maximise production, safety, and cleanliness. Animals will be
brought into custom-built slaughter boxes, where their feet will be
automatically grasped, in accordance with Christian slaughtering practises.
The box will be turned to lay the animal on its side, where it will be
slaughtered according to Christian principles by a skilled butcher. The animal
will then be hoisted onto an automated conveyer belt for further processing.
The animal's hide will be removed using an automated de-hiding machine by
qualified professionals. The off-all will be removed immediately and will slide
into the off-all compartment through a stainless steel slide. The carcass will
next be sliced into the necessary number of pieces using modern,
disinfected saws after each operation. Hydraulic lifts will be constructed so
that technicians can conduct the aforementioned tasks efficiently and
hygienically.
To ensure sanitary and hygienic conditions in the plant, slaughterhouses have

a reliable source of clean water. For hygienic washing of products and
facilities, the water must, if feasible, be hot and well-distributed in terms of
point-location within the premises. Reservoirs or tanks are sometimes
erected as a precaution against water shortages and pump failure. Water
drainage is one of the primary concerns in any slaughterhouse.

All washings and wet cleaning must flow over the slaughter floor into a
drainage system and then exit the building. The floor should slope towards
the primary collection drain, which should then slope towards exterior
connection pipes. The walls must have a hard, smooth surface to prevent
blood and fat stains and make cleaning easier, while the floor must be rough
or textured to prevent slippage.
Lighting is another essential aspect of a building. At strategic locations,

transparent roof panels are used to offer natural sunlight or sky lighting. Wide
lintel windows (e.g., aluminium frames) coated with gauze to exclude insects
also allow airflow and serve the same purpose.
The standard installations and equipment required in a contemporary

slaughterhouse are those required for the efficient and hygienic
transformation of cattle into meat. The following is a standard list of meat
processing equipment.
Meat processing plant
Blast freezers and chillers
Deboning and vacuum packing machine
Waste water treatment plant
Laboratory equipment
Weighing scale
Conveyor/hooks
Trolleys
S.S hooks with bearing
Over head mobile hook
Chiller Hooks
5.2.2 By product and meat processing
Rendering
Rendering is a technique that transforms discarded animal tissue into stable,
value-added substances. Rendering can refer to any process by which animal
products are transformed into more valuable materials or, more specifically,

o the transformation of whole animal fatty tissue into refined fats such as lard
or tallow.
Offal
Offal, often known as variety meats or organ meats, refers to an animal's
internal organs and guts.
6. Financial Pre-feasibility
6.1 Project design assumptions
The goal of the project is to construct a slaughterhouse and meat processing

facility in Sheger city. The facility will be built on a parcel of land about 5000
sqm. A portion of this area will be designated for the slaughterhouse, while
the remainder will serve as Lairage.
The abattoir will be located in a location remote from residential settlements.
This is done to protect the locals from potential annoyances, such as
pollution from slaughterhouse wastes or noise and odour pollution. Yet, some
proximity to the city or town will be maintained to take benefit of essential
facilities such as power and water supplies. The search for an appropriate
place has begun.
This abattoir will be constructed in accordance with modern specifications in

order to produce highly hygienic meat products for both domestic and
international markets. The slaughterhouse will be technically equipped for
slaughtering cows, goats, and sheep, and will have the capacity for additional
operations such as byproduct processing/utilization, meat preservation, and
meat processing. The facility will be outfitted with cutting-edge gear to
facilitate these procedures.
The facility will provide an extensive array of services, including cold storage,
processing, byproduct utilisation, and waste management.
Lairage
Cattle awaiting slaughter will be protected from harsh weather conditions in
the Lairage area. It will be made from an impermeable material that allows for

simple and thorough cleaning. Facilities will be given for the pre-mortem
examination and holding of animals that require additional inspection and
evaluation. Each pen or stall in the Lairage will also be supplied with a feed
trough and a water trough. The construction of facilities for cleaning and
sanitising all sorts of cattle transport trucks.
Equipment
The following instruments will be utilised during slaughtering and meat

processing:
Meat processing plant
Blast freezers and chillers
Deboning and vacuum packing machine
Waste water treatment plant
Laboratory equipment
Weighing scale
Conveyor/hooks
Trolleys
S.S hooks with bearing
Over head mobile hook
Chiller Hooks
Following Office equipment will be required:
Telephone with connection
Fax machine
Computers
Printers
Furniture and Fixtures
The facility will contain cutting-edge slaughtering and storage facilities.
Laboratory: In order to prevent contamination, the plant will have a laboratory
where specialists will conduct tests to ensure that the meat is safe for human
consumption.
Chillers and Cold Storage:

Due to the perishable nature of the product, chillers, freezers, and cold
storage rooms will be constructed to extend its shelf life.

Vehicles:
For the delivery of meat, especially for export purposes, a chiller van
equipped with chilling systems will be used for transport.
Human Resource:
Workers who will operate the plant will receive proper training to help them
enhance slaughter cleanliness and meat quality, reduce raw material losses,
maximise usage of byproducts, and consequently increase profitability.
The needed Human Resources for the Production Process are as follows:
Veterinary Doctor
Nutritionist
Lab technician
Un Skilled labor
Helper
Slaughterers
Human resource required for administration and marketing purpose are
as follows:
General manager
Accountant
Drivers
Personal & Admin. Officer
Peon
Gardener
Security Guards
Final Products:
Meat from cow, goat and sheep will be sold with bones while boneless beef
will also be produced. Offal from cows, sheep and goats will also be
processed to be sold separately.

6.2 Project set up costs
The overall cost of the project is estimated at 31 million birr. Please refer to
the table below for a comprehensive breakdown of project setup expenses.
The project will be financed in a ratio of 40% to 60% by equity and debt. The
debt will be repaid within eight years. An we hope additional two-year grace
period will be granted
Project capital cost (Slaughterhouse/processing)
Land (Slaughter house) 359,758

Land for Lairage 599,597
Building and structures 4,496,983
Meat Processing Plant with ETP 5,246,481
Blast freezer, Chillers 4,272,134

Deboning & Vacuum Packing 3,147,888
WWTP 2,548,290
Laboratory equipment 224,849
Generator (2.5 MV) 524,648
Back up Generator (1.5 MV) 224,849
Weighing scales (Lairage) 14,989
Tractor for Lairage 29,979
RO Plant 3,747
Misc Equipment 374,748
Sub Station 59,959
SAP and Business Automation 149,899
Furniture & Fixture 224,849

Vehicles/ trucks 584,607
Spare Parts 899,396
23,987,661
Rendering
Plant & Machinery 427,213
Construction Cost 179,879
Spare Parts 224,849
Total including rendering 24,819,603
Interest During Construction 2,139,464
26,959,068
Figure 6: Project Capital Cost

Operating revenues
The slaughterhouse will generate revenue from 3 sources:
• Meat (cow, goat, sheep)
• Offal
• Rendered products (blood, tallow, bones)
The production composition for meat shall be as follows:
Production composition
Beef - with bones 45%

Beef - boneless 40%
Goat 10%
Sheep 5%
Figure 7: Production composition for Meat

In consideration of the time required to develop the facility, a capacity
utilisation rate of 60% is estimated for the first year of operation. In Year 2,
this rate is anticipated to reach 70%. During the upcoming years, an 80%
usage rate is anticipated.
Meat (Birr/KG)
Beef (boned) 270.19

Beef (boneless) 356.76
Goat (boned) 409.23
Sheep (boned) 430.21
Offal (birr/animal)
Cow 2,833.10
Goat / Sheep 655.81
Meat (Birr/KG)
Bones 15.74
Tallow 41.97
Blood 41.97
Figure 8: Rates for Meat, Offal and Rendering

The sales prices of meat and rendered goods are anticipated to increase by
8% annually. In the first year of operation, it is anticipated that total revenue
will amount to 1,319,115,266.57 birr. This number is anticipated to increase to
3,132,898,758.10 birr by the tenth year.
6.3 Operating expense

Production expenses
The estimations of meat production are based on animal weight, the
input/output ratio, and shrinkage. The price of all animals is anticipated to rise
by 8% annually.
Animal costs
Animal Costs Input to output

Shrinkage
(Birr/KG) ratio
Cow 120.67 50% 1%

Goat 183.63 50% 3%
Sheep 222.98 40% 3%
Figure 9: Animal costs
For the first year of operation, it is anticipated that animal costs will total
1,068,183,567 birr. This number is expected to rise to 2,636,281,840.13 by the
year 10.
Packing costs
Bones 50 Kg PP Bags
Birr/ KG 0.31
Tallow 50 Kg PP Bags
Birr/ KG 0.31
Blood
Birr/ LTR 1.05
Meat Packaging Cost(Birr/KG)
Stockinet Cloth 5.25

Deboning Meat Packaging 15.74
Figure 10: Packaging Costs
Packaging expenses are projected to increase from 3 million birr in the first
year to 8 million birr in the tenth year.

HR costs
HR expenses consist of the salaries of all personnel involved in the facility's

operation and administration. An annual increase of 10% is anticipated for
these costs
Management & staff costs

No. Birr/ Month
Senior Management
1 7,494
Staff
Marketing staff 4 11,991
Supply Chain 5 14,989
Lairage 10 14,989
Slaughterhouse 8 20,985
Cattle line 15 41,971
Goat/sheep line 5 6,295
Quality control/Lab 2 5,995
Rendering 18 10,492
Admin/others 20 14,989
Waste management 20 119,919
108 270,118
Figure 11: Management and Staff Costs
Total HR costs of 3.2 million birr have been estimated for the first year of
operation. This figure is expected to rise to 6.9 million by the year 10. We employ
total of 273 at full capacity.
Lairage
Lairage expense has been calculated based on estimated feed consumed by
animals.
Lairage Expenses (Birr/ animal)
Feed cost - Cow

41.97
Feed cost - Goat /
15.74
Sheep

Power
Estimates for power costs have been made based on the power
consumption pattern of the facility. Costs are expected to rise by 8% per
year.
Power consumption KWH
Plant and Machiner 800
Cooling System / Chillers 910
Deboning and Packaging 110
Rendering , R/O, Biofilter etc 164
WWTP 90
Cleaning and Trucks Washing 36
Lighting 166
Power running KWH
Plant and Machinery 8
Cooling System / Chillers 24
Deboning and Packaging 8
Rendering , R/O, Biofilter etc 10
WWTP 24
Cleaning and Trucks Washing 3
Lighting 24
Figure 12: Power Consumption

6.4 Project returns
The project is predicted to yield an internal rate of return (IRR) of 30.18 % for
the equity investor, based on cash flow predictions incorporating project
setup expenses and operational results. Please refer to the following charts
for a profitability analysis.
Project Returns
Project IRR 23.14%

Project NPV 7,681,181
Equity Returns
Equity IRR 30.18%

Equity NPV 7,481,556
Figure 10: Project Returns

Projected balance sheet
Projected balance sheet (first six years)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Fixed Assetes 12,933,613 26,959,068 24,619,683 22,280,299 19,940,914 17,601,529
Current Assets
Stocks in trade - - 877,996 1,106,275 1,365,459 1,474,696
Trade debts - - 3,630,616 4,546,149 5,578,754 5,992,564
Cash & bank balances - - 796,415 4,172,295 10,904,882 17,186,866
- - 119,382 625,424 1,634,636 2,576,302
Total Assets 12,933,613 26,959,068 29,924,711 32,105,019 37,790,011 42,255,657
Share Capital & Reserves
Share capital 5,173,445 10,783,627 10,783,627 10,783,627 10,783,627 10,783,627

Retained earnings - - (901,688) 1,460,352 7,353,467 13,017,637
5,173,445 10,783,627 9,881,938 12,243,979 18,137,094 23,801,265
Long term debt 7,760,167 14,930,480 13,517,449 11,913,660 10,093,359 8,027,317
Current liabilities
Creditors/ liabilities - 5,112,292 6,343,589 17,739,256 8,361,033

-
Current portion - long term debt 1,244,960 1,413,030 1,603,789 820,301 2,066,041
- 1,244,960 6,525,323 7,947,379 9,559,557 10,427,075
Total equity & liabilities 12,933,613 26,959,068 29,924,711 32,105,019 37,790,011 42,255,657

Projected balance sheet
Projected balance sheet (year 7 to 10)
Year 6 Year 7 Year 8 Year 9 Year 10
Fixed Assetes 15,262,144 12,922,760 10,583,375 8,243,990 5,904,606
Current Assets
Stocks in trade 1,592,671 1,720,085 1,857,692 2,006,307 2,166,812
Trade debts 6,439,479 6,922,147 7,443,428 8,006,412 8,614,434
Cash & bank balances 22,988,547 28,263,343 32,960,105 37,022,654 43,817,941
31,020,698 36,905,576 42,261,226 47,035,374 54,599,188
Total Assets 46,282,843 49,828,336 52,844,601 55,279,365 60,503,794
Share Capital & Reserves
Share capital 10,783,627 10,783,627 10,783,627 10,783,627 10,783,627

Retained earnings 18,439,042 23,603,587 28,497,029 33,105,119 37,413,788
29,222,669 34,387,215 39,280,657 4,388,746 48,197,415
Long term debt 5,682,359 3,020,832 - - -
Current liabilities
Creditors/ liabilities 9,032,856 9,758,762 10,543,111 11,390,618 123,063,78

Current portion - long term debt 2,344,957 2,661,526 3,020,832 - -
11,377,814 12,420,288 13,563,944 11,390,618 12,306,378
Total equity & liabilities 46,282,843 49,828,336 52,844,601 55,279,365 60,503,794

Projected income statement
Projected profit and loss (year 1 to 6)

1 2 3
Revenue
Meat sales - - 117,620,861 148,202,285 182,923,963 197,557,880

Offal sale - - 38,912,345 45,397,990 51,883,200 51,883,200
Rendering revenue - - 3,778,810 4,761,329 5,876,812 6,346,957
- - 132,517,484 165,934,468 203,624,547 218,728,609

Costs
Animal costs - - 106,822,847 134,596,788 166,130,892 179,421,364
Packing costs - - 3,399,719 4,283,646 5,287,244 5,710,223
Salary Costs - - 324,142 3,565,568 3,922,125 4,314,338
Insurance costs - - 269,590 277,678 286,008 294,589
Electricity cost - - 3,495,289 3,774,912 4,076,905 4,403,058
Generator cost - - 1,856,354 2,004,863 2,165,252 2,338,472
Water expenses - - 118,797 128,301 138,565 149,650
Maintenance expenses - - 1,347,953 1,455,789 1,572,252 1,698,033
Lairage Expenses - - 577,162 727,227 897,603 969,411
Boiler steam costs - - 1,349,095 1,457,022 1,573,584 1,699,471
Renering operation costs - - 1,920,883 2,088,886 2,271,474 2,453,192
Depreciation - - 2,339,384 2,339,384 2,339,384 2,339,384
- - 126,738,505 156,700,070 190,661,295 205,791,190
Margin - - 5,778,979 9,234,398 12,963,252 12,937,419
Other costs
Admin & general expenses - - 4,496,983 4,856,742 5,245,282 5,664,904
Financial costs - - 2,183,684 2,015,614 1,824,855 1,608,344
- - 6,680,668 6,872,350 7,070,137 7,273,248
Profit before tax - - (901,688) 2,362,041 5,893,114 5,664,170
Tax - - - - - -
Profit after tax - - (901,688) 2,362,041 5,893,114 5,664,170

Projected income statement
Projected profit and loss (year 7 to 10)
Revenue
Meat sales 213,362,511 230,431,512 248,866,033 268,775,315 290,277,341

Offal sale 14,823,771 14,823,771 14,823,771 14,823,771 14,823,771
Rendering revenue 6,854,714 7,403,091 7,995,338 8,634,965 9,325,762
235,040,996 252,658,374 271,685,143 292,234,052 314,426,875

Costs
Animal costs 193,775,073 209,277,079 226,019,245 244,100,784 263,628,847
Packing costs 6,167,041 6,660,405 7,193,237 7,768,696 8,390,192
Salary Costs 4,745,771 5,220,348 5,742,383 6,316,622 6,948,284
Insurance costs 303,426 312,529 321,905 331,562 341,509
Electricity cost 4,755,303 5,135,727 5,546,585 5,990,312 6,469,537
Generator cost 2,525,550 2,727,594 2,945,802 3,181,466 3,435,983
Water expenses 161,623 174,552 188,517 203,598 219,886
Maintenance expenses 1,833,875 1,980,585 2,139,032 2,310,155 2,494,967
Lairage Expenses 1,046,964 1,130,722 1,221,179 1,318,874 1,424,384
Boiler steam costs 1,835,429 1,982,263 2,140,844 2,312,112 2,497,081
Renering operation costs 2,649,448 2,861,403 3,090,316 3,337,541 3,604,544
Depreciation 2,339,384 2,339,384 2,339,376 2,339,384 2,339,384
222,138,892 239,802,596 258,888,434 279,511,110 301,794,603
Margin 12,902,104 12,855,778 12,796,708 12,722,942 12,632,272
Other costs
Admin & general
6,118,096 6,607,544 7,136,148 7,707,040 8,323,603
expenses
1,362,603 1,083,687 767,118 407,812 -
Financial costs
7,480,700 7,691,232 7,903,266 8,114,852 8,323,603
Profit before tax 5,421,404 5,164,545 4,893,442 4,608,089 4,308,669
Tax - - - - -
Profit after tax 5,421,404 5,164,545 4,893,442 4,608,089 4,308,669

Projected cash flows statement
Projected cash flows (year 1 to 6)
Profit after tax - - (901,688) 2,362,041 5,893,114 5,664,170

Adjustment of non-cash
items
- - 2,339,384 2,339,384 2,339,384 2,339,384
Depreciation
- - 2,183,684 2,015,614 1,824,855 1,608,344
Financial charges
- - 3,621,380 6,717,040 10,057,354 9,611,899
Working capital changes
current assets - - (4,508,612) (1,143,812) (1,291,789) (523,046)
current Liabilities - - 5,112,292 1,231,297 1,395,666 621,776
- - 603,680 87,484 103,877 98,729
- - 4,225,061 6,804,525 10,161,232 9,710,629

Taxes paid - - - - - -
Interest paid (523,811) (1,615,653) (2,183,684) (2,015,614) (1,824,855) (1,608,344)
Cash flow from Operations (523,811) (1,615,653) 2,041,376 4,788,910 8,336,376 8,102,285
Capital expenditure (12,409,801) (12,409,801) - - - -
Equity 5,173,445 5,610,182 - - - -

Debt 7,760,167 8,415,273 (1,244,960) (1,413,030) (1,603,789) (1,820,301)
Total cash generated - - 796,415 3,375,879 6,732,587 6,281,984

Opening cash - - - 796,415 4,172,295 10,904,882
Closing cash - - 796,415 4,172,295 10,904,882 17,186,866

Projected cash flows statement
Projected cash flows (year 7 to 10)
Profit after tax 5,421,404 5,164,545 4,893,442 4,608,089 4,308,669
Adjustment of non-cash items

Depreciation 2,339,384 2,339,384 2,339,384 2,339,384 2,339,384
Financial charges 1,362,603 1,083,687 767,118 407,812 -
9,123,392 8,587,618 7,999,945 7,355,286 6,648,053

Working capital changes
current assets (564,890) (610,081) (658,888) (711,599) (768,527)
current Liabilities 671,823 725,905 784,349 847,507 915,760
106,933 115,824 125,461 135,908 147,232
9,230,325 8,703,442 8,125,406 7,491,194 6,795,286

Taxes paid - - - - -
Interest paid (1,362,603) (1,083,687) (767,118) (407,812) -
Cash flow from Operations 7,867,722 7,619,754 7,358,288 7,083,382 6,795,286
Capital expenditure - - - - -
Equity - - - - -
Debt (1,362,603) (1,083,687) (767,118) (407,812) -
Total cash generated 5,801,680 5,274,796 4,696,761 4,062,549 6,795,286

Opening cash 17,186,866 22,988,547 282,633,438 32,960,105 37,022,654
Closing cash 22,988,547 28,263,343 32,960,105 37,022,654 43,817,941

6.5 Environmental Impact Assessment:
Since the project's site has not yet been determined, describing the direct
and indirect, positive and negative consequences on the project region, as
well as the measures utilised to rectify the negative impacts, is challenging.
Yet, the basic drawbacks that follow may be seen dependent on the nature of
the project.
Animal manure is utilised as an input for flowers, vegetable production,
and natural fertiliser in the city's waste disposal situation / system. This
makes the project safe to continue since it is non-polluting to the
environment. Medical pharmaceutical containers and other comparable
garbage, on the other hand, are collected and burnt.
Animal dung has an unpleasant odour in the neighbourhood, particularly
when persons with asthma are strolling about, and the disease's effect is
severe. Farming serves as a focal point for keeping land away from
highways and houses. Work attire, such as masks, gloves, dungarees, and
other protective apparel, will be given to project employees.
Environmental consequences that may reach the air include: - an
increase in ammonia emissions; ammonia concentrations cover 50% to
60% of the nitrogen in sheep dung. Another thing to consider is that when
the animals' drinks are sprinkled on the fish, 50% of the nitrogen in the
sheep's drink is ammonia, which is either taken up by plants and
transformed to nitrate by bacteria or dissipated into the air. Otherwise, it
evaporates straight into the atmosphere, polluting it.
Nitrous Oxide (N2O) Emission: If the quantity of Nitrous Oxide spread on
the ground exceeds the amount needed by sheep drinking, the amount of
Nitrous Oxide in the atmosphere will grow, having a substantial influence
on greenhouse emissions (increasing the temperature of the
atmosphere). The cover is the one that covers the whole environment
outside of where the project is built. Covering manure pits to minimise
ammonia emissions and smells is one mitigation strategy to address
these issues.

6.6 Social and economic aspects
Although socioeconomic benefits are ascribed to the goal, the
most significant ones are given below.
The animal husbandry business took continuity into account

when designing this project, and the sustainability of a
development project is to avoid and, if not possible, reduce
the effects on social, environmental, economic, and political,
not a high benefit that will be exhausted immediately, but also
to transfer long-term benefits to the next generation. And
while G&S Abattoir is based on animal husbandry, a prevalent
way of life, it is modern.
Job creation: Animal husbandry is labor-intensive, and one of
the initiative's benefits is the establishment of employment
opportunities for the local populace. The red meat trade is
related with both direct and indirect employment prospects.
It contributes to nutrition and food security: Animal husbandry
is a crucial component of the agricultural economies of
developing nations. In addition to direct food production, its
contribution also includes multipurpose applications such as
leather, fibre, fertiliser, and capital accumulation. Furthermore,
cattle are closely intertwined with the social and cultural life of
millions of farmers, and livestock ownership assures many
levels of long-term agricultural and economic stability. The
development of animal resources has made a significant
contribution to minimising the damage caused by malnutrition
in our country. Meat is rich in protein, vitamins, and minerals.
Among the protein-rich meats are lamb and goat. Specifically,
red meat includes iron, zinc, and Bvitamins. Meat contains
vitamin B12, which is uncommon in

other foods and needed for the growth and health of children,
women, and the elderly. This demonstrates that the project
plays a crucial role in fixing this issue by generating this
resource.
Earning or saving foreign currency: Ethiopia's ongoing

integration into the international trading system has resulted
in its increasing ability to do so. It does not, however, take use
of the cattle export industry or the enormous domestic
market, both of which have the potential to provide multiple
times the export revenues. On the other hand, there is a trend
towards losing the foreign currency earned through the
importation of high-quality beef. Reversing this will be
problematic if it is not stopped. Both domestic and
international conventional markets are placing an increasing
emphasis on quality. In order to overcome all of these
concerns, G&S Abattoir plans to directly enter the export
market. As a result, it has devised and is prepared to
implement a plan that will generate annual revenue in excess
of one million dollars. To do this, we will select an accessible
market and initiate export efforts as soon as the construction
site has been identified.
Creating a nationally competitive investor: G&S Abattoir will
get a suitable location from the new municipal administration's
implementation of this project, the organisation will be able to
produce a big volume of cattle or meat utilising well-
functioning technologies, allowing it to become a national
leader. It will serve as a source of improved sheep breeds for
the entire nation, as well as for farmers in urban agriculture and
organised associations in the project's geographical area.

Timeline G&S Abattoir
Your Go To
Project execution schedule per month

No List of work
1 2 3 4 5 6 7 8 9 10 11 12
1 Land inquiry and execution
2 Carrying out construction works
Procurement of necessary equipment and

3
machinery
4 Execution of bank loan process
5 By creating cooperation with manufacturers
6 Human resource recruitment and training
Strengthening the relationship between

7
procurement and sales
8 Strengthening the feed line

9 Do your other work
10 Purchase of fixed assets
Continuation of the work of promotion and

11
agitation
12 Build relationships with regular customers

G&S Abattoir
Your Go To

Abattoir Proposal

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Abattoir Proposal

CHANGE THE CITY

August 14th, 2023

&S Abattoir G&S Abattoir G&S Abattoir G&S Abattoi

G&S Abattoir G&S Abattoir G&S Abattoir

G&S Abattoir G&S Abattoir G&S Abattoir G&S Abatto

G&S Abattoir G&S Abattoir G&S Abattoir G&

attoir G&S Abattoir G&S Abattoir G&S Abattoir

G&S Abattoir G&S Abattoir G&S Abattoir

battoir G&S Abattoir G&S Abattoir G&S Abattoir

Along with rising national per capita

G&S Abattoir plans to construct and operate an abattoir in Sheger City.

The primary emphasis of the project proposal is the market-driven supply of

05. OUR TEAMS

07. MARKET RESEARCH

27. TECHNICAL STUDY

31. FINANCIAL PRE-FEASIBILITY

According to Ethiopian research, many women are active in the development

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4.1 Country Background and the Meat Business in Ethiopia

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4.1.2 Meat Industry Products and Manufacturing

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The export industry of beef appears to function infrequently, as evidenced by

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4.1.3. The Consumption Culture and Consumers of Meat in

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4.1.4 Meat Industry Supply Chain and Value

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(Source:-French Veterinary International – Feasibility Study for AAAE – 2016)

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4.1.5 Distribution of Beef in Addis Ababa

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Ante-mortem and post-mortem inspections are required to authorise meat

Quality of Meat Production at Addis Ababa Abattoirs Quality is defined from

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4.1.6.Market Share of Addis Ababa Abattoirs and Butchers Meat

Figure 4: prepared cattle’s fresh beef at butcher on shelf for selling.

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4.2 Market competition / competition analysis

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4.2.1. Addis Ababa Abattoirs Enterprise (AAAE)

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4.4 Sales and Marketing Strategy:

4.4.1 Livestock sales strategy

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4.4.1.4 Sales to hotels, caterers, supermarkets, embassies, and others

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4.4.2 Use of organised sheep and goat marketing data

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4.5 Analysis of strengths, weaknesses, opportunities and

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Slaughterhouses are an important part of the meat production and

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Clean Process Rigor Mortis process

Figure 6: Slaughtering and Meat Processing Process