ALFALFA PRODUCTION IN ETHIOPIA

Radial-pivot irrigation Alfalfa development near Dire Dawa with its unique floriculture growing conditions and multiple industry tailwinds in the alfalfa market. We are funding raising and if you wish to find out more about this project, please contact us.

ALFALFA PROJECT FINANCIALS

New non-sponsor equity:

  • Up to $7.7 million equity (with ability to access 70:30 debt:equity loan).

Expected returns :

  • Targeted IRR: >40% in US$;
  • Targeted Payback: 90% by Year 4

ALFALFA PROJECT BACKGROUND

Product:

  • Focus on alfalfa, which is considered an ideal crop for forage due to its high protein and vitamin content, fast harvest cycles, and high levels of digestibility.
  • Due to the challenges with growing alfalfa and the structural demand for dairy and meat, alfalfa prices have enjoyed buoyant growth since the late 1990s.

Operations:

  • Robust team with deep experience in company building in Ethiopia, alfalfa production, and agricultural sales into the GCC and other markets.
  • Highly efficient supply chain, with train terminal to Djibouti close by and daily flights to GCC, Europe and Africa.
  • Hydrology report and drilled boreholes validating adequate water aquifer and sufficient replenishment flow rate.

Customer:

  • KSA and GCC have depleted their aquifers and have banned water use for agriculture. Minimum 2-3 million MT alfalfa supply opportunity exists to meet that demand gap.
  • Unique direct sales relationships with the leading GCC, European, Chinese and Australian distributers (offtake agreements under discussion).

Impact:

  • 60% export business will provide FX and strong revenue forecast will bolster country tax base.
  • Investment will create strong relationships with the local community and Government.
  • Producing high quality alfalfa in a socially and environmentally responsible manner.

FIGURES

Figure 1: Radial-pivot irrigation system

Radial-pivot irrigation system

Figure 2: Groundwater potential map of the Project area

Groundwater Potential Dire Dawa

Figure 3: Hay bales, hay pellets and hay cubes

Alfalfa bales, pellets and cubes