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CASTLE MALTING NEWS in partnership with www.e-malt.com
18 May, 2022



Malting news France & Ethiopia: Malteries Soufflet launches its first malthouse in Africa on the outskirts of Addis Ababa

The French company Malteries Soufflet, a division of the InVivo Group, has inaugurated its first malt house in Africa, 28th for the company, which is located in the Bole Lemi industrial park in Addis Ababa, Ethiopia, in the presence of Prime Minister Abiy Ahmed. The malt production site, which came into service a year ago, is based on a local supply chain for malting barley, 2Merkato.com reported on May 16.

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.

Speaking at the inauguration ceremony, Ethiopian Prime Minister Abiy Ahmed expressed Ethiopia’s readiness to support such determined investors who invest with such significant financial outlay for import substitution.

This new malt house is also the first in the world to be zero carbon emission, using energy produced by hydroelectric dams, Malteries Soufflet related in a press release.

With this new location, Malteries Soufflet has initiated a project to replace imports along the entire value chain: the barley used is mostly grown locally, and the malt is sold directly to local brewers. This will significantly reduce imports of raw materials, which currently account for 70 percent of the market, and limit the transport of goods.

"InVivo wants to make the malt business one of the pillars of its business model. 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. We have decided to accelerate our investments to move upmarket and support our customers' growth and diversification projects worldwide. To achieve this objective, we can capitalize on Malteries Soufflet's proven organization, tools, and industrial processes" says Thierry Blandinières, CEO of the InVivo group.

Ethiopia is Africa's largest barley producer and the continent's fourth-largest beer producer, with a market growing by nearly 15 percent a year. However, the local supply of malt and barley production is not sufficient to cover the sector's needs and keep up with its expansion.

Malteries Soufflet's ambition is to source 100 percent 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.

Malteries Soufflet employs a team of 100 people in Ethiopia. The new plant has also generated more than 200 indirect jobs, mainly in rural areas, to ensure barley quality control and handling.

In 2022, after 5 years of investment, Malteries Soufflet is sourcing more than 75 percent of its barley locally and expects to reach 100 percent by 2024. The seed sector has been invested in to support production and access to quality, high-yielding seeds.

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).

The InVivo group, with the recent acquisition of the Soufflet Group, is one of Europe's leading agricultural groups, with sales of nearly €10 billion, more than half of which is generated in France, and a workforce of more than 13,000 employees, including more than 10,000 in France. Established in 38 countries, it has more than 90 industrial sites, including 63 in France.





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