Emebet and Children Milk and Milk Products (ECMMP)

ECMMP PLC was established in Bahir-Dar Town in 2010 in the regional state of Amhara. The dairy processing company produces cheese, table butter and cream that are primarily marketed in Bahir Dar, but also to a lesser extent in the cities of Addis Ababa, Gonder, Mekelle, Nekemte and Gimbie. Raw milk is currently sourced year round from two dairy cooperatives, (about 250 dairy farmers) that are within a 30 km radius of the processing company.

The current method of milk collection through the cooperatives is inefficient and the quality of raw milk is inconsistent. In addition, the production capacity of the processing company is low (currently at about 500 liters per day). With improved supply and increased production capacity the company could expand its market share outside of Bahir Dar.

Over the past three years ECMMP has been processing cheese for a pizzeria restaurant, and as of the past year has been supplying its products to other buyers as well. While the gross revenue of the Company was only 75,000 Birr in 2010, it has increased to 1.1 million in 2012.

Purpose of Grant

The purpose of the grant is to help ECMMP to expand its operations by increasing supply of raw milk and upgrading the processing facility in terms of quality and quantity of production. The company aims to begin producing pasteurized milk and increasing the production of its dairy products. Increased production will expand ECMMP’s marketing potential by allowing it to increase sales to existing customers and to engage with new customers.

To improve supply the Company will provide the necessary training (technical and entrepreneurial) and required inputs (on a credit basis) to two dairy farmer cooperatives. In addition the Company will work with a minimum of 100 new out-grower farmer groups (500 farmers total). Through improved production and more efficient collection, ECMMP will collect an additional 400-500 liters per day from the cooperative farmers. Approximately 1,500 liters per day will be collected from the 100 new out-grower groups. Technical assistance to cooperative and out-grower farmers will enhance their knowledge and increase their incomes by at least 40% for cooperative farmers and 100% for new out-grower farmers. The improved supply and increased capacity of ECMMP will allow the processing company to increase its production capacity from 500 to at least 2000 liters per day.

The $99,758 grant will be used to achieve these objectives through the purchase of machinery and equipment, dairy farming inputs, training, and marketing support for both the farmers and the company. ECMMP will provide farmers, on credit, with critical production inputs such as feed and milk collection cans; and a cooling station to facilitate collection will also be established for new out-grower farmers. The purchase of the equipment and machinery to increase the capacity of the dairy company will be absorbed partly by the grant from LMD and partly by ECMMP as part of a cost-share agreement.