The Fertilizer Industry in Ethiopia

Our Story
Vision
Our Purpose
Core Values
Certifications
Awards
The Future
Major Areas of the Expansion Project
Objectives for the expansion of the project
Learn more about our product
Customer Reach Strategies
These models include:
Company Progress and Trends
Strategic Goals
Challenges
Opportunities
The Fertilizer Industry in Ethiopia
Ethiopia is experiencing a significant demand for fertilizers due to soil degradation and a rapidly

growing population that requires large-scale food crop production. The country's annual fertilizer

demand has been consistently increasing, reaching 14.5 million MT in 2017, 15 million MT in 2018,

16.8 million MT in 2019, and 18.9 million MT in 2020. In the year 2021/22, Ethiopia has allocated 27.2

billion Br (equivalent to over 660 million dollars based on the current exchange rate) for the import of

1.8 million tons of fertilizer. The majority of these imports are sourced from Morocco, with additional

contributions from Egypt, the UAE, and Saudi Arabia.

Looking ahead, the future estimate for fertilizer demand in Ethiopia by 2025 is projected to be 25 million

MT. This estimation, however, does not include fertilizers and substitutes imported by private

companies for retail or farm use.

Despite the substantial quantities of imported fertilizers being distributed to farmers, there remains a

significant gap between demand and supply within the country. Additionally, there is a growing interest

among Ethiopian farmers in organic fertilizers, which has led to an impressive surge in demand for such

products.
Our Story

Our story began over a decade ago when our founder and innovator, Mr. Kebede Lakew, embarked on

a journey of research and development that spanned more than six years. Together with his dedicated

team, they conducted extensive laboratory work and field trials to create the remarkable fertilizer product

we present to you today. Driven by a passion for sustainable farming and a deep understanding of the

market's needs in Africa, we were motivated by concerns over the harmful effects of chemical fertilizers.

Our product, Eco Green, is derived from plant and animal sources, making it 100% organic and free

from any toxic elements. From the early days, our company began as a small research center, focused

on community-based research initiatives. Through hard work and dedication, we obtained a trade license

under the name "Eco Green Organic Liquid Fertilizer Producing Plc" in 2009, allowing us to commence

product sales.

As a startup enterprise introducing a novel product to the market, we faced several years of challenges

and required significant resources to develop and introduce our product, particularly to smallholder

farmers who were unfamiliar with the technology of organic liquid fertilizers. Consequently, we

invested our resources in training and workshops conducted in various woreda districts of the Amhara

and Oromiya regions. Our product has thus far reached Hageremariam, Shewa Robot, Dera, Gozamen,

Fogera, and Libokemekem in the Amhara Region, as well as Zuway Dugda, Dugda, Bora, Lume, Eteya,

and Boset in the Oromia Region.

Despite the financial challenges we have faced and continue to face, our company has experienced

expansion and growth, positioning us to meet the fertilizer demand in Ethiopia and explore potential
opportunities across the African continent. When compared to non-organic fertilizers, our organic liquid

fertilizer serves as a substitute at a 70% lower price. As a locally produced solution, our product

consistently experiences increasing demand. Although we possess the necessary land for larger

expansion projects, securing financial support remains an ongoing challenge.

Vision

Our vision is to witness our farmers harvesting the healthiest crops while safeguarding and preserving

the environment for future generations.

Our Purpose

As a purpose-driven company, we are deeply committed to sustainable farming practices. Our dedicated

team strives to provide the highest quality products that positively impact the success of our team

members, investors, and valued customers.

Core Values

Innovation: We foster a culture of creativity, constantly striving for innovative solutions in everything

we do.

Integrity: Our commitment to providing an exceptional customer experience goes above and beyond.

Our reputation sets us apart from the competition.

Environmental Stewardship: We are resolute in delivering optimal farming solutions through 100%

environmentally friendly organic products and processes that align with our customers' expectations and

needs.
Cost-Consciousness: We make prudent decisions to minimize expenditures, ensuring we satisfy the

needs of our stakeholders.

Accountability: We uphold high standards and take responsibility for our actions, fostering a culture of

accountability within our organization.

Win-Win Partnership: We deeply value our relationships with our vendors, supporting their growth as

we grow together.

Certifications

t granted by the Ethiopia Ministry of Science and Technology (Eth Intellectual

Property Office), highlighting its unique and innovative qualities.

its compliance with regulatory standards and requirements.

-free by the Ethiopian Drug Administration and

Quality Control Authority, ensuring its safety and environmental friendliness.

Awards

accolades from esteemed organizations and partners.

re honored with the Climate Innovation Prize by the Ethiopian Climate Innovation

Center, recognizing our contribution to climate-friendly solutions.

acknowledging our outstanding achievements in entrepreneurship.

-Solving Technology,

presented by His Excellency PM Hailemariam Desalegn, showcasing our innovation and impact.

The Future

With the necessary financial support to execute our ambitious expansion projects, we have projected a

production capacity of 6,000,000 liters per month for the first year. This substantial increase in

production will enable us to address a significant portion of the local demand, thereby contributing to

the stabilization of the fertilizer crisis in Ethiopia. Furthermore, it positions us with the potential to

expand our reach to other African countries.

By analyzing the fertilizer supply data from 2017 to 2021 and considering the cumulative average

growth rate of 19%, we have estimated the demand for fertilizer from 2022 to 2027. This estimation is

as follows: [Provide the estimated figures or indicate the need for further data to provide an accurate

projection].
Through our strategic planning and commitment to meeting the evolving needs of the agricultural sector,

we aim to play a vital role in driving sustainable farming practices, ensuring food security, and fostering

economic growth in Ethiopia and beyond.

The planned project will have a production capacity of 6,000,000 liters per month during its initial year,

with a subsequent annual increase of 2,000,000 liters. The price of our product will be set at Birr 46 per

liter.

At present, our production capacity ranges from 20,000 to 30,000 liters per day, primarily due to the

partial expansion work that has been undertaken. However, with the implementation of our

comprehensive expansion plan, we will significantly enhance our production capabilities. One of the

key components of our expansion plan is the establishment of a dedicated research and development

institute. This institute will serve as a hub for students and researchers, providing them with a conducive

environment to conduct their studies and contribute to agricultural entrepreneurship.

Through this expansion project, we aim to meet the growing demands of the market while also fostering

a culture of innovation and knowledge exchange in the agricultural sector.

Major Areas of the Expansion Project

The expansion project encompasses several key areas to support our growing operations and enhance

our overall efficiency. These areas include:

Administration Office

A dedicated space to manage and oversee the administrative functions of the organization, ensuring

smooth operations and effective decision-making.

Production Store

A designated area for storing production-related materials, ensuring easy access and efficient inventory

management.

Main Production Factory The core facility where the manufacturing process takes place, equipped

with state-of-the-art machinery and technology to optimize production output and product quality

Raw Materials Store and Production

A specialized storage area for raw materials, facilitating their seamless integration into the production

process and ensuring a steady supply.

Laboratory

A well-equipped laboratory where comprehensive testing and analysis of our products can be conducted,

ensuring strict quality control and continuous improvement.

Maintenance

A dedicated space for equipment maintenance and repair activities, ensuring uninterrupted production

and minimizing downtime.

Residence Accommodation facilities for our employees, providing a comfortable living environment

for staff members who may be required to stay on-site or nearby.

Greenhouse

A controlled environment for cultivating and studying various plant species, allowing us to enhance our

understanding of organic farming practices and explore new possibilities.

Sales and Display Area

A designated space to showcase our products and interact with customers, fostering a positive sales

experience and facilitating business growth.

Main Gate, Service Truck Gate, and Landscape

Work

Well-designed entrances that provide security, efficient access, and an aesthetically pleasing

environment, creating a positive first impression for visitors and clients.

Cafeteria

A communal space where employees can dine and relax, fostering a sense of community and well-being

within the organization.

Pump House

A facility housing pumps and equipment necessary for water supply and irrigation, ensuring a reliable

and efficient water management system.

Changing Room and Toilet Facilities

Well-maintained and hygienic spaces where employees can change, freshen up, and attend to personal

needs.

Electrical Installation

Properly designed and implemented electrical systems to meet our power needs, ensuring safety,

reliability, and compliance with industry standards.

Sanitary Installation Adequate and well-maintained sanitation facilities, promoting hygiene and well-

being for employees and visitors.

Waste Compost

A designated area for the management and composting of organic waste, supporting sustainable waste

management practices and minimizing environmental impact.

Reservoir

A storage facility for water resources, ensuring a reliable and sufficient water supply for our operations.
Objectives for the expansion of the project encompass a variety of factors,

including but not limited to:

1. To meet the growing demand for organic fertilizer by producing the product at a full scale.

2. To offer an environmentally friendly alternative to inorganic fertilizer, which contributes to erosion

of foreign exchange reserves and increases soil acidity. This alternative aims to alleviate smallholder

farmers from the burden of escalating fertilizer prices.

3. To strategically expand the market in multiple regions of Ethiopia and potentially beyond.

4. To adopt and implement the use of organic liquid fertilizer across a diverse range of crops, including

cereals, fruits, vegetables, flora/horticulture, and ornamental products.

5. To achieve a significant increase in sales volume and performance, targeting a 75% growth rate based

on previous cropping seasons as a baseline (2020/21).

Learn more about our product

Organic fertilizer is derived from natural substances, such as living and non-living organisms

(microbes), plants, and animal by-products. Our Eco Green liquid fertilizer is specifically formulated

with extracts from plants and animals, making it highly effective as a foliar spray.

This delivery method offers a diverse range of plant nutrients, chelating agents, and plant hormones,

making it a highly effective solution. Extensive scientific research and field trials have demonstrated its

efficacy in various commercial agricultural settings. Our product, "Eco Green," is a well-balanced plant

food that encompasses both macro and micronutrients, providing essential minerals and trace elements

necessary for optimal plant growth.

Research and field trials have consistently shown the remarkable impact of "Eco Green" in increasing

crop yields, improving product quality, enhancing drought and frost tolerance, boosting disease

resistance, and aiding in stress recovery.

While maintaining balanced levels of macro and micronutrients, pH, and electrical conductivity (EC),

"Eco Green" also offers potent concentrations of trace minerals, micronutrients, amino acids, and

vitamins crucial for robust plant development. Notably, it contains a variety of growth hormones,

including cytokinins, auxins, and gibberellins, which stimulate cell division and promote the formation

of larger root systems.

Comprised of organic plant and animal sources, "Eco Green" is completely free from toxic elements,

ensuring a safe and environmentally friendly solution. It contains 16 essential macro and micronutrients

for soil health, including Nitrogen, Phosphorus, Sulphur, Potassium, Calcium, Iron, Magnesium,

Sodium, Boron, Chlorine, Nickel, Copper, Zinc, Molybdenum, Carbon, and others.

Our product package offers various sizes to accommodate different needs: 1L, 2L, 5L, 20L, 25L, 100L,

and 200L, ensuring convenient product delivery and availability.

Customer Reach Strategies

To ensure efficient distribution of our liquid organic fertilizer, Eco-Green utilizes both direct and indirect

distribution channels. As our aim is to expand the market reach of organic liquid fertilizer to the most

productive regions of Ethiopia, we implement various distribution models tailored to each customer,

geography, and location.

These models include:

1. Cooperatives/Union-based distribution model

2. Agro-dealers based distribution model

3. Private distribution/sales centers model

4. Farm services distribution model

5. Distribution model through development-oriented organizations/NGOs

Currently, we have established partnerships with agents in the four main regions of Oromia, Amhara,

Tigray, and SNNPRS, making our products readily available to farmers through these agents.

In terms of large-scale production schemes and commercial partnerships with farms, our initial

customers primarily consisted of flower, vegetable, and fruit farms in Ethiopia. Approximately 20

commercial farms, accounting for 30 to 40% of our sales volume, have purchased our products and

provided valuable feedback based on their usage and experience.

We also prioritize providing orientation and training to farmers whenever possible. Our dedicated staff

conducts training sessions and offers support, ensuring that farmers are equipped with the necessary

knowledge and skills. As a start-up company introducing a new technology to smallholder farmers, we

have invested significant resources in training workshops conducted in various districts of Amhara and

Oromia regions, such as Hageremariam, Shewa Robot, Dera, Gozamen, Fogera, Libokemekem, Zuway

Dugda, Dugda, Bora, Lume, Eteya, and Boset.

Company Progress and Trends

Eco-Green has forged strong partnerships with institutions that share a

common interest in promoting organic farming practices in Ethiopia. In

line with this shared goal, we secured funding from MEDA to conduct

on-field demonstrations in three woredas of the North Gonder Zone in

the Amhara region in 2020.

Over the past three years, our average annual sales have reached

approximately 1,300,000 liters, while our factory has a production

capacity of 1.9 million liters per year.

Our plan is to fully utilize our production capacity, expand the factory, and transform it into a globally

recognized company in the future.

The company's market share has been steadily growing, achieving significant success as a growing

enterprise. In the 2019/2020 fiscal year, we recorded a profit of 18 million, marking a notable turnaround

from a loss in the 2016/2017 fiscal year.

We have also established a partnership with SOS Fiam Belgium, aiming to maximize the application of

organic fertilizers by farmers in the Oromia region. This three-year project has been funded since June

2020.
Strategic Goals

Our strategic goals encompass the following objectives.

1. Maintain a consistent growth rate of 30% or more per annum, ensuring sustainable development

aligned with an increasing customer base.

2. Expand the current market share of Organic Liquid Fertilizer Producing PLC from 1% to 25% by the

end of 2025 in the Ethiopian fertilizer market.

3. Increase the utilization rate of our organic liquid fertilizer production capacity from 11% to 100% per

day by the end of 2025.

4. Attain ISO certification in quality management by 2023.

Challenges

absence of a clear and comprehensive policy to manage the process.

ability to employ staff dedicated to on-farm trials and demonstrations. However, we do provide free

delivery of our product to customers.

raw materials, and their expansion capabilities are limited.

zers have created a negative impact on the

introduction of organic fertilizers to the market.

tailored approaches as a standardized model may not be universally applicable.

Opportunities

for high demand for organic fertilizers.

iving a shift towards organic farming and

the use of organic agricultural inputs.

of being incorporated into the national fertilizer package list, potentially leading to government

procurement of our product to replace inorganic fertilizers like UREA.

-oriented horticulture and flower culture commercial farms in the country provides

an opportunity to acquire new customers, with a yearly growth rate of at least 10%, resulting in

substantial fertilizer consumption.

present an opportunity for us to convert livestock waste into valuable products for plant production.
Key Takeaways

to complete our expansion project and reach more customers.

gions where we traditionally have not experienced

high demand, primarily due to the economic conditions of the country and the popularity of Eco-Green.

700,000 liters within the past month, and we have a substantial number of farmers on a waitlist for our

product.

including organic farming, in Ethiopia and the wider continent.

-researched plan for our

expansion project. However, financial support is crucial to executing our strategic goals.
Office Address:

Lubaba Building, Bole Medhaniyalm Road infront of Millinium Hall, Addis Ababa.

Phone:

+251911650340.

Email: [email protected]

Website: www.ecogreen.et

Factory Address: Hageremariam Wereda, Northern Shewa, Amhara Region.