GUTS Agro Industry Plc

GUTS Agro Industry Plc. (GUTS) is an ISO 2200 certified nutritional food processing company in Ethiopia specializing in supplementary foods, baby cereals, snacks, iodized table salt and non-iodized industrial salt productions in Ethiopia. GUTS agro Industry is now intending to diversify its products lines into cattle feed manufacturing after careful assessment of the availability of surplus agro-industrial by-products at Bishoftu town and at the near vicinity (including its own by-products) that could be used as inputs for the manufacturing plant. This expansion plan of the company is to establish cattle feed manufacturing plant capable of producing 15,000 MT per annum (300 days a year) at Bishoftu town in Oromia region. The present market demand for the proposed product is 54,896 MT and expected to reach at 76,994 MT by the year 2018.

At present, GUTS has completed 80% of the construction of the factory building within its Bishoftu compound of 9000 m2 for this purpose. Furthermore, the company is now in a process of developing mineral blocks for cattle as pilot project. Its initial target market will be the dairy cooperative union that are expected to supply raw milk for the company’s future plan of establishing milk powder plant. The total investment requirement is estimated at 501,904 USD, out of which 103,518 USD is required for plant machinery.

The project will create direct employment opportunities for 33 skilled and non-skilled workers and is expected to have an indirect impact in the livelihood of about 8,000 smallholder farmers by improving their productivity.

Purpose of Grant

The purpose of the Grant is to purchase a complete set of cattle feed plant machinery capable of producing 50 MT per hour that enables the company to successfully implement its diversification plan of producing cattle feed primarily targeting dairy smallholder farmers in Oromia region through their respective dairy coop union.