BLUE NILE INDUSTRIES — Ethiopia’s innovative, cost effective maker of high quality corn, noodle and corn-soy blend food products
Corn: corn flakes are made from partially milled grains called flaking grits. They have their germ and hull removed. A mixture of flaking grits, syrup, sugar, malt and salt is pressure cooked and dried. This is then squashed between steel rollers. The flakes may then be fortified and coated with flavorings. Corn flakes are immensely popular as a breakfast cereal and as a favorite snack flavored in multiple ways.
Noodles are a narrow ribbon like strip of dried dough, made by BNI with corn and soy beans. The dough is usually cooked in a mixture of boiling water and oil. Our noodle food products will include the full range of commonly used pasta shapes and types.
Corn soy blends (CSB) are fortified blended foods (FBF) used in many African dishes and extensively by USAID implementing partners, including the World Food Program (WFP). Local variations of CSB products and other FBFs are extensively used as plant-based protein nuggets worldwide.
Global AID Food Programs Investment Opportunity
Fortified blended foods (FBF) are used extensively by USAID implementing partners, including the World Food Program (WFP). Local variations of corn-soy blends (CSB) products and other FBFs are used as complementary foods worldwide. Various formulations of corn soy-based and wheat soy-based FBFs have been used in food aid for almost 50 years, gaining prominent usage as their nutritional value and impact were proven in high level studies. USAID continues to refine CSB specifications to better meet the nutritional needs of people and programs.
For this reason, Blue Nile Industries is rapidly moving to be a major supplier of these highly nutritious food products (such as plant-based protein bars) to USAID and WFB. Globally, such aid organizations can buy these CSB products from Blue Nile in Ethiopia, along with our plant-based corn flakes and noodles to supply their humanitarian aid projects in Ethiopia as well as in other needful countries worldwide. The raw materials as well as most of the ingredients are grown in Ethiopia or are easily sourced in Ethiopia. Additional ingredients needing to be imported are vitamins and minerals that target key nutritional values and meet USDA and WFP food production guidelines.
This specialized food manufacturing by Blue Nile will be the first in Ethiopia. As such, the Blue Nile Industries investment opportunities are extraordinarily viable for foreign investors. Additionally, the BNI plant and sales will benefit Ethiopia through tax revenue, local employment and hard currency intake.
Ethiopian Investment Opportunity
This is a commercial first in Ethiopia — production of popular food items (that are of superior health and processing quality) available to consumers in Ethiopia and throughout Africa, and as well to NGOs to use in their important aid programs. BNI’s product quality and the extensive market opportunities are inherently attractive to foreign investors looking for the best Ethiopian businesses to invest in. Ethiopia as a country will benefit economically through BNI tax revenue and the accrual of much needed hard currency.
Ethiopia has a large, youthful population and is potentially one of the largest domestic markets in Africa, although the purchasing power of the population is still limited.
Given the large size of the Ethiopian market and the current size of imports, there is a robust potential for the domestic sale (and all-African) of corn flakes, protein nuggets and noodles—if offered at competitive prices and brand-recognized as high quality. Our projected domestic demand calculation uses an apparent consumption approach following the figures of domestic production plus imports minus exports.
There is a very large, daily market for household, institutional and commercial consumption of BNI products (day to day consumption of snacks, corn flakes, noodles and corn soya blended foods). BNI will engage in extensive, cutting-edge promotional activities and public advertising to target consumers in Ethiopia (and Africa) toward quickly building market share in this vital food sector.
Cost savings derived from lower transportation and labor costs (from local production) will benefit BNI food products customers by offering lower retail sales prices compared to competing companies. Through our promotional marketing and their own retail and wholesale purchases customers will appreciate the savings advantage of routinely buying BNI products. Moreover, BNI’s pricing strategy will be flexible, factoring in global price changes of major raw and manufactured ingredients for the food products.
The attractive financial returns to investors derived from the BNI food product sales, the mixed usage of the building plant, and the positive socio-economic impacts on Ethiopia’s service industry growth are perfectly aligned with the government's development strategy.
Our BNI project will initially generate 250 million every year in sales, eventually reaching Birr 350 million per year. It is also expected to fully execute the return on investment to investors within 10 yrs. BNI will initially employ 120 employees to reach 150 within five years.
The Ethiopian government has provided BNI (the deed and ownership of the land free and clear) with the 1 hectare (10,000 square meters) of land in an officially designated industrial park in the city of Merhawi—25 kilometers from the city of Bahrday, the capital city of the Amhara Region.
The Amhara region is the most industrialized in Ethiopia, as well as one of the safest regions in the country. Attaining this land in the Amhara region is a significant accomplishment for BNI as it is very difficult to acquire land here. The BNI land has access to all the necessary utilities including running water, electricity, sewage, and to all necessary manufacturing infrastructure.
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