Deal #5636

Location #1

Spatial accuracy level
Administrative region
Location
Ziway, Ethiopia

Target country
Ethiopia
Comment on location
East Shoa, Liben, Chukana Wereda, near Ziway.

Land area

Size under contract (leased or purchased area, in ha)
[2016] 800
Comment on land area
Company website (which is under development) states 5000 ha area (fodder on 2500 ha and livestock on 2500 ha).

Intention of investment

Intention of investment
Livestock, Non-food agricultural commodities
Comment on intention of investment
process animal fodder and dairy products. Fodder plants include corn, wheat, cotton seed, sunflower

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
[2016] Concluded (Contract signed)
Comment on negotiation status
"obtained a license in 2014 from the region’s Investment Commission, the company leased the land after getting approval from the Ethiopian Investment Commission (EIC) in February 2016."

Implementation status

Implementation status
[2017] Project not started
Comment on implementation status
The company has not yet received the land from the investment office and so has not commenced operation. As a temporary solution, the company currently has settled in Alage Agricultural TVET College on a 200ha plot of land, cultivating maize and sorghum to feed the 6,000 milk cows.

Contract farming

Contract farming
No

Number of total jobs created

Jobs created (total)
Yes
Planned number of jobs (total)
801
Comment on jobs created (total)
plan for total number of employees to 801.

Number of domestic jobs created

Jobs created (domestic)
Yes
Current number of jobs (domestic)
77

Operating company

Comment on investment chain
Primary investor name might be European Food and Cattle Plc with unknown shareholders from France.

 

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Data source #1

Data source type
Media report
File
Date
2017-08-12
Comment on data source
French Company Relocates Investment Plant Over Land Dispute

Data source #2

Data source type
Company sources
Comment on data source
https://european-food-and-cattle.com/en/the-draft-european-food-and-cattle-plc-addis-ababa/ Company website still under development.

How did the community react?

Community reaction
Rejection
Comment on community reaction
OIC failed to convince the farmers to evict the land.

Displacement of people

Displacement of people
Yes
Number of people actually displaced
643
Comment on displacement of people
643 farmers

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
The farmers did not accept the compensation offered. 38Br a square metre as a compensation.
Received compensation (e.g. for damages or resettlements)
The farmers did not accept the compensation offered. 38Br a square metre as a compensation.

Promised benefits for local communities

Promised benefits for local communities
Capacity Building
Comment on promised benefits for local communities
Company website (under development) states breeding centre, slaughter house and cow house will be developed on additional 1500ha- serving the needs of the ranch and also providing additional technical support, training and services to local farmers.

Former land owner (not by constitution)

Former land owner
Community

Former land use

Former land use
Smallholder agriculture

Former land cover

Former land cover
Cropland

Detailed crop, animal and mineral information

Crops area
Fodder Plants (unspecified)
Livestock area
Dairy Cattle

Overall comment

Overall comment
681 million Br investment capital and working capital of 50 million Br. The company also intends to obtain 1000ha in Alage, see #5637.

Feb. 20, 2020, 2:35 p.m.

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Feb. 13, 2018, 11:27 a.m.

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Sept. 4, 2017, 3:35 p.m.

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Sept. 4, 2017, 3:28 p.m.

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