starch economy ethiopian starch market.pdf · these specialty starches made up only a fraction of...

$: Starch Economy Ethiopian Starch Market.pdf · these specialty starches made up only a fraction of turnover, but sales ... allowing them to optimize malt utilization and achieve consistent$
International Starch Institute

Starch Economy

ETHIOPIAN STARCH MARKET TM41-1e

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Copyright © 2016 International Starch Institute A/S, Agro Food Park 13, DK 8200 Aarhus N, Denmark

Ethiopian Starch Market

Figure 1. Precise Consult International PLC (PCI), 10th Floor, Abyssinia Building, Addis Ababa published an opportunity report "PROFILE ON THE PRODUCTION OF STARCH" 2011. As we have not been travelling in Ethiopia ourselves for some years we asked for permission to refer to the market information in their study.

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Cornstarch Corn is the dominant crop for starch. Most corn starch is made into starch syrups and the balance is made up of native and modified starches - half and half. There is no reason to believe it will be different in Ethiopia.

Figure 2. EU consumption of starch and derived products reached 9 million ton in 2015 - 55% as starch sweeteners. In US same figure is 14 million ton - 78 % as starch sweetener, hereof 61 % as HFCS. In EU fructose syrups is limited by the EU sugar regime to 5% of total EU sugar production. In the US, no such production limits exist.

Native starch Many end users of modified starches choose to produce these themselves in line with consumption - for example, enzyme modified size in the paper industry. Therefore, there will always be a market for native starch. Modified starch Sales of modified starches are support intensive. In Denmark for years, these specialty starches made up only a fraction of turnover, but sales were distributed among hundreds of items and each required expert support from laboratory and pilot plant. Now it finally seems to pay off. According to the PCI report and available statistics Ethiopian import is modest and probably not the most attractive entry point.

Starch sweeteners Far better prospects we find in the sweetener market. Fewer items, same type of process and large sales volumes. There is therefore good reason to look into this market for the most common corn syrups. The brewing industry is the first market that springs to mind.

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Currently (Dec. 2014), Ethiopia’s total beer production capacity stands at

7.1m hectoliters annually. BGI Ethiopia’s capacity stands at 2.7m

hectoliters from its three factories at Addis Ababa, Hawassa and

Kombolcha. Heineken S.C., which owns Walia, Harar and Bedele

breweries, has a capacity of 2.5m hectoliters. Diageo, owner of Meta Abo

Brewery, and Dashen Brewery S.C., follow with one million and 900,000

hectoliters, respectively. Source: Addis Fortune

← Getaneh Assefa at work at the Dejazmach Bar and Restaurant.

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Beer is becoming increasingly popular among the growing Ethiopian middle class. In

fact beer consumption in Ethiopia – Africa’s second-most populous country, is

expected to grow by about 15 percent every year for the years to come. According to

a report carried out 2011 by Access Capital, an Addis Ababa-based research group,

this growth in consumption is very much in line with Ethiopian population levels and

economic growth rates. Source: Ethiopian News

Annual Beer Consumption per head COUNTRY Quantity Ethiopia 4 Liters Kenya 12 Liters Swaziland 19 Liters Cameroon 25 Liters Angola 37 Liters Botswana 40 Liters Nigeria 53 Liters South Africa 59 Liters

Source: Access Capital

Also carbonated soft drinks is expanding rapidly Sheikh Mohammed Al-Amoudi says.

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Copyright © 2016 International Starch Institute A/S, Agro Food Park 13, DK 8200 Aarhus N, Denmark Baker Magunda wants - as every brewer does - to use local ingredients, but is concerned about the supply of domestically grown barley. Here, the starch industry may step in and offer adjuncts. Source: CNN

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Glucose syrups - liquid adjuncts Liquid adjuncts help brewers overcome the uncertain availa-bility of dry adjuncts while allowing them to optimize malt utilization and achieve consistent quality and flavor stability. Liquid adjuncts are less expensive to handle. Glucose and maltose syrups represent a unique combination of quality and tailoring to meet the fermentable sugar require-ments of brewers. The syrups may be delivered in tank lorries or simply drummed off.

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Ethiopian Starch Market Confectionary Glucose syrups are nutritive sweeteners made from corn. They add structure and mouthfeel to food applications while providing sweetness and energy. Glucose syrups are used where sugar crystallization needs to be prevented, or good freeze-thaw stability is required. Glucose syrups are suitable for ice-cream, fruit preparations, brewing, baking, ketchups, sauces and for hard-boiled candy, gums, jellies, marshmallows, nougat, fondant, chewing gum and other confectioneries. Many manufacturers produce Canned Food / Sweets / Snacks & Chips / Candy / Confectionery in Ethiopia.

Figure 3. By drumming off also smaller companies may be supplied.

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Ethiopian Starch Market - Appendix

Textile Industry. Modified and native starch used for textile sizing etc.

Annual consumption 2005 Modified starch kg

Native starch kg

Kombolcha Textile SC 60.000 360.000 Arba-minch Textile SC 35.000 355.000 Almeda Textiles PLC 325.000 45.000 Bahir-Dar Textile SC

350.000

Anassa Textile SC 225.000 6.000 Diredawa Textile SC

175.000

Ethio-Japanese Syn Tex SC 60.000 45.000 Akaki Textile SC 100.000 Total 705.000 1.436.000

Source: Private communication

Projected Demand for Starch (Tons) 2013 440 2017 644 2021 925 2014 484 2018 695 2022 1,018 2015 532 2019 765 2023 1,120 2016 586 2020 841

Source: Precise Consult International PLC

Import

Ethiopia Imports by Commodity in US Dollars - Starches; inulin. - Yearly

Commodity 2005 2006 2007 2008 2009 2010 2011

Wheat starch $1,547,314 $1,125 $1,500 $3,078 $1,603 $228

Maize (corn) starch $102,174 $190,282 $179,768 $14,573,250 $240,882 $321,804 $202,806

Potato starch $611 $280 $78 $222 $404 $803 $29

Manioc (cassava) starch $214

Starches (excl. of 1108.11-1108.14) $55 $2,520 $1,706 $2,005 $6,409 $1,717 $1,961

Inulin $174 $207

Total $1,650,154 $194,207 $183,052 $14,578,729 $249,505 $324,766 $204,796

Ethiopia Imports by Commodity in US Dollars - Dextrins and other modified starches - Yearly

Commodity 2005 2006 2007 2008 2009 2010 2011

Dextrins & oth. modified starches

$106,027 $258,405 $84,102 $296,243 $272,396 $105,933 $138,820

Glues based on starches/dextrins/oth. modified

starches

$439,620 $499,153 $386,600 $479,247 $768,902 $1,010,275 $931,385

Total $545,647 $757,558 $470,702 $775,490 $1,041,298 $1,116,208 $1,070,205 Source: United Nations Commodity Trade Statistics Database

http://www.indexmundi.com/trade/imports/?country=et&commodity=110811











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International Starch Institute A/S, Agro Food Park 13, DK-8200 Aarhus N, Denmark.

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