Bore Milk processing plant- small scale soybean processing factory

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1 Bore Milk processing plant- small scale soybean processing factory 1

2 Development and initial implementation Bore milk processing plant is devoting to the processing of soy milk since 1999 G.C. It is located in Jimma town à355 km away from Addis Ababa FCE and JARC- Started with smallholder farmers with the aim to boost production and productivity of soya and thereby ensure the food security of farmers However, after observing an ample opportunity and understanding that, beyond the local consumption, soybean can further be processed into soymilk 2

3 Cont Facilitator for Change of Ethiopia (FCE)- National NGO start up of Bore milk plant and is affiliated with Harbu Micro Finance Institution (HMFI). FCE- works with disadvantaged communities overcome their poverty using their own resources, skills and experiences with minimum external support. The plant is operated by a women s group that lives in the area 220 Women organized under the dairy- Women self help group 3

4 Cont HMFI Provided credit facilities for the dairy and women organized under the dairy. When the dairy operating at full capacity, the sale from soy milk will cover the salary costs of the staff working in the factory and the rest will be deposited. The Women have improve/changed their livelihood through proper use of the money borrowed from the micro finance Overall objective is to create market opportunities for producer farmers and employment opportunity for urban women. 4

5 Functions and Chain Actors (at initial implementation stage of bore milk plant) Main functions Consuming Main actors JU Students & Dwellers CHAIN SUPPORTERS AND ENABLERS /PROMOTER Retailing Retailers Processing Kera CLA Women CLAs FC, & Harbu &wholesaling Collection & storage 5 FMOs FMOs FC, Gov., Coop. & Harbu Production Producers Smallholder farmers FC, Gov, Research and Harbu Source: Value chain financing European microfinance week 5

6 Bore Milk processing plant Semi-automatic, small scale machine which works with electric power It uses basic equipment s like grinder, boiler (sterilizer), pasteurizer, packaging machine (manual), water treatment section, milk receiving, electric and pipes fitting Production capability liters of milk per week (2 production line). The plant sells the soy milk with 330ml of glass 6

7 Cont Mother plant Packeging machine 7

8 Bore Milk There are two types of Bore milk; Ø Milk with sugar = 3 ETB Ø Milk with out sugar = 2.75 ETB Bore milk is stable for at least three months to ambient temperature The manufacturing process is "aseptic enhance the shelf life Certified by EHNRI HMFI in testing the product in universities and cafeterias to check people s preferences and tastes. The comments and feedback from this market research were encouraging. 8

9 Bore milk ingredients List of ingredients Importance Milk excellent Straw berry Cinnamon Baking powder Propylene glycine Product package Tasty enhancer Tasty enhancer Flavor Produce fumigation Maintain color Brick shape aseptic carton 9

10 Marketing strategy Market entry Super market but hardly ever sold Ø Bore milk suited for poor and middle class residents Customer base: JU students, Local kiosks, hospitals The association itself engaged in the wholesaling and retailing at door step of the factory Ø 1-Retailer distributes to institutions ØDiabetes patients, people allergies with cow milk directly buy the milk from plant Promotion: Oral promotion, brochures and leaflet distribution 10

11 Lesson learned Certified by EHNRI, enabling marketing to governmental university and health institution Marketing possibilities are many, but production capacity limits expansion of business. Employment opportunity for women Too many members of women self help group weakens the dairy à result in conflict of interest 11

12 Way forward Providing or developing cost effective, smooth operation with lesser repair soy milk making machine E.g Bore milk: ü1. A person who fix the machine come from Addis ü2 Lack of spare parts The soy dairies team needs to ask themselves which products fit the local demand and context (not only soy dairy). Is there a business case for these products? Who are the consumers? What are the pitfalls and how can risks of negative effects of these pitfalls is mitigated? Identifying best practice of soya milk production strategy across different countries àsoy cow shelf life, cost and availability of flavouring agent, packaging quality and so forth 12

13 Thank you 13

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