Ethiopia commissions US$1 M digital feed plant to boost production

ETHIOPIA – A new animal feed processing facility valued at US$1 million has commenced operations in Jigjiga, Somali Regional State, reinforcing Ethiopia’s push toward commercial livestock development and structured feed supply systems.

The Suufi Animal Feed Factory, financed by local investor Abdi Hassa Suufi, was inaugurated in the presence of federal and regional officials, including State Minister for Agriculture Fikru Regassa and Somali Region Livestock Development Bureau Head Abdulqadir Iman.

The plant is designed to integrate digital technology into feed formulation and production, targeting improved efficiency, nutrient accuracy and product consistency.

Built with a daily output capacity of 5,000 quintals (500 metric tonnes), the facility is projected to produce approximately 180,000 metric tonnes annually.

Automated systems regulate formulation parameters to deliver species-specific feed solutions for beef cattle fattening, dairy productivity enhancement and broiler production.

During the commissioning ceremony, Iman stated, “This factory is of great importance to the pastoralist community. It contributes directly to the transition toward modern, intensive livestock management.”

Ethiopia’s livestock systems, particularly in pastoralist regions, have faced sustained pressure from recurring drought cycles across the Horn of Africa.

Erratic rainfall patterns and pasture shortages have disrupted traditional grazing systems, increasing reliance on manufactured feed. This shift has intensified cost pressures for both smallholder pastoralists and emerging commercial operators.

Market outlook

Agriculture remains the backbone of Ethiopia’s economy, contributing about 40% of GDP and employing 75% of the workforce.

Livestock accounts for roughly 26% of agricultural GDP, with Ethiopia ranked first in Africa and fifth globally in livestock population, home to over 71 million cattle, 54 million goats, and 57 million poultry.

Despite this vast resource base, productivity has lagged due to feed shortages and climate shocks.

The animal feed market, valued at US$606.8 million in 2025, is projected to grow steadily, reaching US$776 million by 2034. Rising demand for meat, milk, and eggs is driving investment in feed production, particularly for poultry and dairy sectors.

Analysts note that Ethiopia’s feed industry faces supply gaps, with imports often required to meet demand. The Suufi factory directly addresses this challenge by boosting local production capacity.

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