The trends in the consumption of animal sourced foods and livestock by-products are key indicator of opportunities for investment. Consumption of meat, milk and other livestock by-products are increasing opportunities and incentives for investment will be followed, including business opportunities for producers.
African’s are expected to be consuming 83 million tons of milk by 2050. Beef and Poultry were Africa’s most consumed meat followed by mutton and pork. By 2050 consumption of both meats is estimated to increase to 13.5 million tons and that of poultry 11.8 million tons. In 2050, the egg, pork and mutton (I.e. sheep and goat meat) markets will be about 6.1, 3.5 and 5.9 million tons respectively. Consumption of all livestock products is anticipated to grow rapidly in the coming decades, with the annual growth rates estimated at 2.2 percent per year in the case of milk to 3.3 percent for poultry and pork.
These conditions seem to be conducive to a livestock revolution. As researches indicate, at the continental level Africa producers are projected to be unable to satisfy the growing demand for livestock products. Hence, the livestock sector together with poultry is the most promising and need much attention.
Ethiopia is home to abundant livestock resources. There are opportunities to manufacture livestock products for both local and export markets. Local demand for meat, milk and eggs is growing as the economy and population grow. This growth is expected to create investment and trade opportunities for certain commodities and open doors for veterinary and other livestock services. Potential opportunities exist for sales of U.S. livestock genetics and chicken meat.
Ethiopia’s commercial red meat (cattle, sheep, goat & pigs) industry has made remarkable progress to date and shows considerable growth potential for the future. The GOE encourages investments in meat processing, especially those that are focused on exporting value-added products abroad. A couple of U.S. companies have already invested in the red meat sector and others have expressed interest. A large chunk of this commercially-produced red meat, most of which is currently mutton and goat meat is largely going for export to the Middle East in order to generate foreign exchange. Beef exports are also growing, with additional market opportunities on the horizon. In addition to red meat, there are emerging opportunities in chicken, egg, and dairy production and processing.