The poultry supply chain

SME's first step: strengthening the supply chain for poultry meat in Ethiopia, from fodder to consumer.

What SME does

SME makes its first step in supporting the development of supply chains for poultry meat, cooperating with existing enterprises and associations. The Ethiopian Poultry Producers and Processors Association is a well-known partner in SME’s network.

The heart of a supply chain is the slaughterhouse and meat processing. From that central point, the chain looks back to the input of fattened chickens and the farmers who raise them; the fodder and its growers are part of the quality-care system. Criteria for fattening chickens include the quality of the fodder, the quality of the hygienic and veterinary system, and attention to the welfare of the chickens (including the use of medicine and antibiotics).

The slaughterhouse and meat processing must meet strict hygienic criteria using the HACCP system, which guarantees good and safe food. Cooling and freezing are important, and sustainable energy is promoted as much as possible. Transport of chickens from farmer to slaughterhouse is also part of the quality-care system.

After processing, the products go to customers — retail (supermarkets), upper-class hotels, and large national and international organisations such as the African Union, embassies and airlines. The quality and quantity must be assured, and customers must be prepared to pay more for assured quality. This can and must be cheaper than the import of chicken meat from South Africa, Ukraine or Brazil, which happens now.

Why poultry?

The market for poultry meat is small but growing. Production is for the national market, which fits SME’s starting points: the added economic value stays in Ethiopia, benefiting all stakeholders in the supply chain. Investments for small and medium-holder farmers are relatively small, so with good farming quality they can participate in a poultry supply chain.

Other reasons make poultry a sensible choice:

  • Short cycle. The lifecycle for chicken is about 50 days, so results of investments show in a short time.
  • Efficient conversion. The conversion of fodder to meat is much better for chicken than for beef, goat or sheep.
  • Less water. Chicken needs about 4 litres of water per kg of meat; beef needs around 16 litres.
  • Fewer greenhouse gases. Chicken produces less methane than cattle.
  • Healthier. Poultry is white meat, considered to have less negative health impact than red meat.

So from the point of view of sustainability and health, chicken has advantages over the red meat of beef, sheep, goat, pig and camel.

Poultry farming in Ethiopia

Poultry farming has a short cycle and a low environmental footprint.
Poultry farming has a short cycle and a low environmental footprint.

How SME works

SME does not create or invest in new supply chains. Instead, it strengthens what already exists as components of supply, so the separate parts form a more coherent chain. The quality of the chain must become such that stakeholders are eager to participate — quality that can be promoted by a new, market-oriented brand.

The conditions for quality must be monitored by a good integral quality-care system, for which a well-equipped laboratory is needed. SME starts by finding out the present situation through a baseline study carried out by students or Ethiopian partners. This research gives insight into the existing situation and leads to a plan of action and improvement, with components such as:

  • Investments. SME helps to find investors; the foundation itself does not invest.
  • Expertise. SME facilitates finding the right training and trainers.
  • Research. SME supports needed research for all parts of the chain, such as a good market analysis.
  • Quality care. SME supports the realisation of an up-to-date quality-care system.
  • Sustainability. SME supports making sustainability and animal welfare normal parts of a modern supply chain.

In other words, SME does not do all the support itself, but tries to find the needed experts and investors.

Cooperation

SME realises its goals through cooperation with farmers, slaughterhouses, NGOs and the Ethiopian government. SME’s existing network includes many people and organisations. The working visit of the board in the summer of 2017 gave good insight into the existing situation and the possibilities, and identified several enterprises as potential partners to start with.

Fresh chicken meat in a first-class hotel in Addis Ababa

An old-fashioned slaughterhouse in Addis Ababa.
An old-fashioned slaughterhouse in Addis Ababa.

Standards and targets: Chico Meat & SME

The following concepts are derived from the Memorandum of Understanding. The UN Sustainable Development Goals — which Ethiopia has also signed — offer a useful framework of reference.

Goals

  • To offer, for the shorter and longer term, a framework of reference for developing an integral quality-care system for the value chain of chicken meat.
  • To create marketable chicken-meat products through HACCP++: the regular food-risk evaluation system (HACCP) plus sustainability, animal welfare and corporate social responsibility (the ”++”).

The value-chain director

  • Supervises the complete supply chain, knows the situation of every stakeholder, and has the authority to convince.
  • Signals bottlenecks, needs and wishes of stakeholders.
  • Stimulates improvements in many areas, certainly in quality care.
  • Stimulates coherence and overall responsibility of stakeholders, and is the point of contact for problems.
  • Is the first in the chain to take initiatives for further development of the market.

Food security

  • HACCP (Hazard Analysis and Critical Control Points) as a starting point.
  • Meat free from salmonella, campylobacter, listeria, etc.
  • Meat free from residues and antibiotics.
  • A good quality-care system, guaranteed by inspections at all stakeholders.

Corporate Social Responsibility (CSR) — based on the seven themes of PUM Netherlands senior experts: good governance; human rights; labour conditions (safety, working hours and salary); environment, waste management and climate; fair trade; care for customers and consumer interests; and societal involvement.

Sustainability

  • Give content and meaning to the three P’s: people, planet and profit.
  • Use sustainable energy from solar, wind and hydropower, taking economic conditions into account.
  • A circular economy: waste does not exist — be economical with waste.

Animal welfare

  • The standards of the “beter leven kip” (better-life chicken) translated to the Ethiopian context.
  • Minimum use of medicine by offering chickens a healthy environment.
  • Dry chicken houses to prevent infections — less illness, less medicine, lower costs.
  • A minimum of 4 hours of darkness per day to prevent stress and illness.
  • Prevent breeds that grow too fast (weak legs, etc.).

Memorandum of Understanding

SME formalised its cooperation with its Ethiopian partner in a signed Memorandum of Understanding (MoU). The MoU lays down the shared goals and the standards and targets for the poultry value chain.

📄 Download the signed MoU (PDF)