Adding value on the hoof

A Chinese proposal to build a livestock park could maximize the income of one of Ethiopia's businesses

A Chinese company has initiated a plan to build a livestock industry park in Ethiopia to make full use of the country's widespread animal husbandry.

Peng Dajun, deputy-general manager of CGC Overseas Construction Group Agricultural in Ethiopia, part of a large, state-owned Chinese corporation, says plans call for the zone to be 1,200 hectares: 1,000 hectares for livestock breeding, and 200 hectares for leather and bone processing. The zone is still being designed, and the company is in talks with the Ethiopian government over its location.

According to Peng, Ethiopia has the largest livestock resource in Africa, with 56 million cows and 52 million sheep and goats. The resources, however, haven't been fully utilized yet.

"We would like to make full use of the rich resources and develop the key parts in the whole livestock industry chain to help Ethiopia get rid of the hindering factors the country's stock farming industry faces," Peng says.

While processing food to target the Chinese market, the park also would produce fodder and veterinary drugs that would support the further development of Ethiopia's stock farming. There would be a breeding center in the second phase of the park.

Ethiopian livestock - usually raised on the country's grasslands, producing food labeled organic and green by the Ethiopian government - could help meet the increasing demand for such naturally raised food in China, Peng says. "It would not only broaden China's sources of imported food, but it also would strengthen Ethiopia's development and help Ethiopia a lot in shrinking its trade deficit with China."

Peng says the project assessment likely would start in February, with construction starting at the end of 2016.

"We have signed a development agreement with China Development Bank. The bank would offer preferential loans to companies that want to enter the zone and offer financial support for the construction," he says.

The Export-Import Bank of China also has been involved in the project discussions, he says.

houliqiang@chinadaily.com.cn

(China Daily Africa Weekly 01/08/2016 page17)