ETHIOPIA – Malteries Soufflet has inaugurated a new malthouse facility in Ethiopia that is set to be a game changer in the country’s rapidly growing beer industry.
The malt production site, which came into service a year ago, is based on a local supply chain for malting barley and is InVivo group’s strategy of continuing to develop Malteries Soufflet outside Europe.
Located on 10 hectares on the outskirts of Addis Ababa, Soufflet Malt Ethiopia benefits from a strategic location, in direct proximity to the malting barley crops.
Equipped with state-of-the-art infrastructure, the malt house has an annual production capacity of 60,000 tons per year and is aiming for 110,000 tons in the short term.
Its operation brings good tidings to Ethiopia’s beer industry which heavily relies on malt imports to satisfy local demand.
According to Malteries Soufflet, Ethiopia is Africa’s largest barley producer and the continent’s fourth largest beer producer, with a market growing by nearly 15% a year.
The country however imports up to 70% of its malt demand, exposing it to price fluctuations which are normally associated with currency depreciation against the United States dollar.
The new malthouse which is also the first in the world to be zero carbon emission promises to change this narrative by availing malt to local breweries in the Eastern African country.
Malteries Soufflet’s ambition is to source 100% local barley (which represents a necessary volume of 80,000 tons of barley per year) within two years.
To meet this target, the company has been supporting the 50,000 small producers in the Oromia region for several years by relying on agronomic and commercial advisors and technicians.
The facility which is the company’s 28th in the globe also better positions it to take advantage of the growing opportunities in the barley market.
“We intend to seize growth opportunities in the barley market, which is expected to reach $24.7 billion by 2027 including $9.7 billion for malt alone,” says Thierry Blandinières, CEO of the InVivo group.
“We have decided to accelerate our investments to move upmarket and support our customers’ growth and diversification projects worldwide.”
IFC, a subsidiary of the World Bank, is the financial partner in the industrial project. The institution is also supporting the group in the development of best barley growing practices through the NGO EUCORD (European Cooperative for Rural Development).
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