Lebanon Businessnews News
 

$1 billion Tanmia expansion to Africa
Competing with Brazilian imports
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Tanmia, an agricultural development company, is expanding in Nigeria and Ethiopia. Companies in both markets will be established in October, construction works on the firm's poultry farms will start early 2015, and production will start after six months.

Moussa Freiji, Chairman of Tanmia, said: “There are significant opportunities in these countries. All success factors are available: low price of fodder, water, suitable weather conditions, and a large market.”

Investments in the project are expected to hit $25 million in each country as a first step, company officials said. “We expect to invest around $1 billion within five or six years,” said Freiji. The poultry farms will be opening gradually. The project will be funded by Tanmia, other local partners, and banks. Both governments would be a partner in this project, according to Freiji.
 
Tanmia already chose the farm’s locations in both countries. The land will be leased on contractual agreement for 49 years, and can to be renewed. The cost of one square meter leased will not exceed $0.10. Freiji said that the project requires infrastructure, roads, artesian wells, and power stations.

“We were searching for markets that produce fodder, as it represents 65 percent of the egg and chicken’s cost”, said Freiji. He said that they expect achieving good profits in these markets, especially that poultry products are still imported and competition is limited. “Our plan in further steps is exporting poultry products from these countries to the Arab countries, to be an alternative of Brazilian products,” he said.

Tanmia already has affiliated companies, poultry farms and chicken meat processing companies, in Syria, Saudi Arabia, Jordan, Egypt, and Sudan.

Reported by Rania Ghanem
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Date Posted: Jul 15, 2014