TTH TRADING PLC

FEASIBILITY STUDY
FOR
THE ESTABLISHMENT OF CATTLE, SHEEP
& GOAT SLAUGHTER HOUSE AND MEAT
PROCESSING PLANT

Draft Report
Volume II: Technical and Financial Analysis

March 2025
Addis Ababa

P.O.Box 2569 Addis Ababa, Ethiopia

Tel. 011 661 03 61/ 011 662 17 58
Web Site: www.ips.et
E-mail: [email protected]
PROJECT NO. PSF- __________________
 TTH Trading Plc – Meat Processing Plant Feasibility Study – Technical & Financial Analysis
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Table of Contents
EXECUTIVE SUMMARY ................................................................................................. 1

1. INTRODUCTION ................................................................................................... 4

1.1. Background ........................................................................................................ 4

1.2. Objectives of the Study ...................................................................................... 4

1.3. Approach and Methodology ............................................................................... 4

2. PLANT CAPACITY, PRODUCT MIX AND PRODUCTION PROGRAM ................ 6

2.1. Plant Capacity .................................................................................................... 6

2.2. Product Mix ...................................................................................................... 11

2.3. Production Program ......................................................................................... 16

3. MATERIALS AND INPUT .................................................................................... 18

3.1. Direct Raw Material .......................................................................................... 18

3.2. Indirect Raw Materials ...................................................................................... 21

3.3. Utilities ............................................................................................................. 24

3.4. Material and Inputs Requirements and Costs .................................................. 24

4. PLANT LOCATION AND SITE SELECTION ....................................................... 28

4.1. First Stage- Selection of Potential Location ..................................................... 28

4.2. Second Stage - Selection of Location .............................................................. 30

4.3. Plant Site .......................................................................................................... 34

4.4. Climate ............................................................................................................. 37

5. TECHNOLOGY AND ENGINEERING ................................................................. 40

5.1. Technology....................................................................................................... 40

5.2. PROCESS DESCRIPTION and PROCESS FLOW DIAGRAMS FOR AN

INTEGRATED ABATTIOR PLANT............................................................................. 74

5.3. Environmental Impact Assessment and Mitigation Measures ........................ 100

5.4. Engineering .................................................................................................... 109

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6. ORGANIZATION STRUCTURE & HUMAN RESOURCE PLANNING .............. 146

6.1. ORGANIZATIONAL STRUCTURE ................................................................ 146

6.2. HUMANRESOURCE REQUIREMENT ANUAL COST .................................. 148

7. IMPLEMENTATION PLAN & SCHEDULE ........................................................ 150

7.1. Project Organization ....................................................................................... 150

7.2. IMPLEMENTATION SCHEDULE ................................................................... 151

7.3. PROJECT IMPLEMENTATION COST ........................................................... 156

8. FINANCIAL ANALYSIS ..................................................................................... 159

8.1. General .......................................................................................................... 159

8.2. Basic Assumptions for Financial Analyses ..................................................... 159

8.3. Result of the Financial Analysis ..................................................................... 166

8.4. Economic/Social Impact ................................................................................. 177

Appendices

Appendix 8. 1: Net Working Capital ( in 000 Birr) ........................................................ 180

Appendix 8. 2: Production Cost ( in 000 Birr) ............................................................. 182
Appendix 8. 3: Net Income Statement ( in 000 Birr) .................................................... 184
Appendix 8. 4: Cash Flow For Financial Management ( in 000 Birr) ........................... 186
Appendix 8. 5: Discounted Cash Flow ( in 000 Birr) .................................................... 188
Appendix 8. 6: Balance Sheet ( in 000 Birr) ................................................................ 190

List of Tables

Table 2. 1: REGIONAL DISTRIBUTION OF LIVESTOCK POPULATION (%) ................ 8

Table 2. 2: PRODUCT MIX and/or PLANT CAPACITY OF THE ENVISAGED
INTEGRATED CATTLE AND SHOATS SLAUGHTERHOUSE AND MEAT
PROCESSING PLANT .................................................................................................. 15
Table 2. 3: PRODUCTION PROGRAM OF THE ENVISAGED INTEGRATED CATTLE,
SHEEP & GOAT SLAUGHTERHOUSE AND MEAT PROCESSING PLANT ............... 17

Table 3. 1: Key characteristics of the main Livestock markets in Addis Ababa ............. 20
Table 3. 2: ANNUAL COST OF RAW MATERIALS and INPUTS AT FULL CAPACITY
OPERATION ................................................................................................................. 25

Table 4. 1: Plant Site Selection Ranking ....................................................................... 33

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Table 4. 2: Weather by Month // Weather Averages Addis Ababa ........................... 38

Table 5. 1: Alternative Technologies for Gelatin Extraction ........................................... 57

Table 5. 2: Recommended Equipment for Gelatin Extraction ........................................ 57
Table 5. 3: Alternative Technologies for Hard Capsule Manufacturing ......................... 58
Table 5. 4: Recommended Equipment for Hard Capsule Manufacturing ...................... 58
Table 5. 5: Processing Steps & Equipment Selection for Red Offal .............................. 60
Table 5. 6: Processing Steps & Equipment Selection for Green Offal ........................... 61
Table 5. 7: Rendering Technologies ............................................................................. 64
Table 5. 8: Technology Alternatives for Steam Generation ........................................... 68
Table 5. 9: Technology Alternatives for Water Treatment ............................................. 69
Table 5. 10: Technology Alternatives for Wastewater Treatment .................................. 70
Table 5. 11: Technology Alternatives for Refrigeration.................................................. 70
Table 5. 12: Technology Alternatives for Compressed Air ............................................ 71
Table 5. 13: Technology Alternatives for Power Supply ................................................ 72
Table 5. 14: Summary of Recommended Utilities and Technologies ............................ 72
Table 5. 15: Sources of solid wastes in a slaughterhouse........................................... 101
Table 5. 16: Sources of Liquid wastes in a slaughterhouse ........................................ 102
Table 5. 17: Typical characteristics of slaughterhouse effluent ................................... 102
Table 5. 18: Utilization of Solid Wastes of the Slaughterhouse ................................... 105
Table 5. 19: Standards for discharge of slaughterhouses effluents in Ethiopia ........... 108
Table 5. 20: Livestock Reception and Handling Machinery Cost ................................ 112
Table 5. 21: Slaughter House Machinery Cost ............................................................ 113
Table 5. 22: Deboned, Blast-Frozen, Vacuum-Packed Beef Production Line ............. 115
Table 5. 23: Boiled Meat Production Line.................................................................... 116
Table 5. 24: Mixed Material Rendering Line – Capacity 9,000 kg/h at 45% Moisture Cost
.................................................................................................................................... 119
Table 5. 25: Blood Processing Plant for Blood Meal Production 1200 kg/hr Cost ....... 122
Table 5. 26: Gelatine and Hard Capsule Production from By-Products Line Cost ...... 123
Table 5. 27: Red and Green Offal Processing Line for Export (81.6 Tons/Day Output)
Cost ............................................................................................................................. 125
Table 5. 28: Central Steam Generation and Distribution System Cost ........................ 127
Table 5. 29: Central Water Supply and Treatment System Cost ................................. 128
Table 5. 30: Central Wastewater Treatment Plant for 2000 m³/Day Capacity Cost ..... 130
Table 5. 31: Central Compressed Air System for An Integrated Abattoir Plant Cost ... 131
Table 5. 32: Backup Diesel Generator and Electrical Systems Cost ........................... 134
Table 5. 33: Central Laboratory Cost .......................................................................... 134
Table 5. 34: Building & Civil Works Cost ..................................................................... 138
Table 5. 35: Vehicles Cost .......................................................................................... 141
Table 5. 36:Central Workshop and Garage: Equipment and Cost .............................. 143
Table 5. 37: Office Furniture and Equipment Cost ...................................................... 145

Table 7. 1: Project Team Salary .................................................................................. 156

Table 7. 2: Design, Erection and Commissioning Cost ............................................... 158

Table 8. 1: Minimum Days of Coverage ...................................................................... 160

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Table 8. 2: Summary of Variables Used for Estimating Ranges of Discounting Rates 164
Table 8. 3: Projected Annual Revenue ........................................................................ 165
Table 8. 4: Investment Costs in 000 Birr ..................................................................... 166
Table 8. 6: Costs of Production (Year Seven) ............................................................. 168
Table 8. 7: Financial Flow (In 000’ Birr) ....................................................................... 169
Table 8. 8: Repayment Schedule (In 000’ Birr) ........................................................... 169
Table 8. 10: Net and Cumulated Cash Flow ................................................................ 171

List of Figures
Figure 4. 1: Location Map of the Plant Site................................................................ 34
Figure 4. 2: Proposed Bole Lemi Plant Site Block Drawing ........................................... 36
Figure 4. 3: Proposed plant site image .......................................................................... 37
Figure 4. 4: Average temperature by month Addis Ababa ......................................... 37

Figure 5. 1: PROCESS FLOW DIAGRAM OF INTEGRATED SLAUGHTERHOUSE ... 80

Figure 5. 2: PROCESS FLOW DIAGRAM FOR DEBONED AND FROZEN MEAT
PRODUCTION .............................................................................................................. 83
Figure 5. 3: PROCESS FLOW DIAGRAM FOR BOILED MEAT PRODUCTION .......... 86
Figure 5. 4: PROCESS FLOW DIAGRAM FOR RENDERING PLANT ......................... 90
Figure 5. 5: PROCESS FLOW DIAGRAM FOR BLOOD MEAL PRODUCTION ........... 93
Figure 5. 6: PROCESS FLOW DIAGRAM FOR GELATINE AND HARD CAPSULE
PRODUCTION .............................................................................................................. 96
Figure 5. 7: PROCESS FLOW DIAGRAM FOR RED OFFAL PRODUCTION .............. 99
Figure 5. 8: PROCESS FLOW DIAGRAM FOR GREEN OFFAL PRODUCTION ......... 99
Figure 5. 9: KEY ACTIVITIES OF SLAUGHTERHOUSE AND UTILIZATION OF BY
PRODUCTS ................................................................................................................ 104

Figure 7. 1: Project implementation schedule ............................................................. 153

Figure 8. 1: % Share of Investment Items from the Total Investment Cost ................. 167
Figure 8. 2: Projected Net Profit (in Million Birr) .......................................................... 170
Figure 8. 3: Trend in Net Worth (in Million Birr) .......................................................... 173
Figure 8. 4: Trend in ROA, ROCE and ROE ............................................................... 175

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 TTH Trading Plc – Meat Processing Plant Feasibility Study – Technical & Financial Analysis
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EXECUTIVE SUMMARY

This Draft Report on the Feasibility Study for the Establishment of Sheep, Cattle and
Goat Slaughter House and Meat Processing Plant is submitted by the Industrial Projects
Service (IPS) as per the consultancy agreement concluded with TTH Trading PLC. The
Draft Report is organized in two volumes. Volume I covers Analysis of the Business
Environment & Market Study. Volume II is Technical and Financial Study that deals with
assessment of the technical aspects of the industry and its financial and economic
viability of the project. Synoptic summary of this volume II is as provided below.

The Slaughter house and meat processing industry technical aspects were analyzed in
depth starting from the required main raw material and inputs with there associated cost
to the finding of the available state of the art manufacturing technologies to select the
best and fit technology for the envisaged plant with detail description of process flow
and layout.

The envisaged integrated abattoir and meat processing plant is comprised of Cattle,
Sheep and Goat Slaughter House; Deboned, Blast-Frozen, Vacuum-Packed Beef
Production Plant; Boiled Meat Production Line for 250 Cattle Carcasses per Day; Mixed
Material Rendering Line with a Capacity of 9,000 kg/h at 45% Moisture; Blood
Processing Plant for Blood Meal Production of 1200 kg/hr; Gelatine and Hard Capsule
Production Line; Red and Green Offal Processing Line for Export (81.6 Tons/Day
Output) with the required Utilities of Central Steam Generation and Distribution System,
Central Water Supply and Treatment System, Central Wastewater Treatment Plant for
2000 m³/Day Capacity, Central Compressed Air System, Electrical equipment and
systems, Central Workshop and Garage; the required Laboratory for quality control; and
the required Building, civil work, infrastructure and other facilities.

The project engineering was stipulated in a way that included all machinery and
equipment specs and engineering cost estimates including organizational structure and
human resource requirement with their salary. Finaly the implementation for the
envisaged project were planned to complete in 22 months and the associated
implementation cost were estimated to add up for financial analysis in addition to the
above plant investment costs.

The total investment cost of the project is estimated at Birr 7.696 billion. From the total
investment cost the highest share (Birr 4.068 billion or 52.86%) is accounted by fixed
investment cost followed by initial working capital (Birr 3.350 billion or 43.53%) and pre-
operating cost (Birr 277.40 million or 3.60%).

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The investment requirement of project would be financed by equity capital and long
term bank loan. Accordingly, from the total 7.509 billion financial requirements
(excluding interest during construction) the share of equity capital is envisaged to be
Birr 2.252 billion or 30% of the total investment requirement. The remaining Birr 5.256
billion or 70% of the total investment is planned to be financed through bank loan. The
total amount of bank loan including interest will be fully paid back within ten years’ time.

The project will generate a profit throughout the assumed operational life. The annual
net profit after tax increases from Birr 1.841 million during the first year of operation to
Birr 2.923 billion during the last year of operation

The projected cash flow shows that, the project would generate positive net cash flows
throughout the operation years. The cumulative cash flow towards the end of the
assumed operation period amount to Birr 35.711 billion. At the end of the assumed
project life, including scrap value, this amount will rise to Birr 42.362 billion.

Based on 25% discount rate the Internal Rate of Return (IRR) and Net Present Value
(NPV) are computed to be 38.55% and Birr 2.777 billion, respectively, indicating the
viability of the project. Other measures of profitability net profit as a % of sales revenue,
net profit to equity and net profit to total investment are also attractive.

The efficiency ratios like current assets to current liabilities and net cash flow to sales
calculated from the balance sheet show that the project is highly liquid with sound
financial performance.

Therefore, from financial viability point of view, the project is viable and justified for full
implementation.

The economic impact of the envisaged project is also significant. The project will create
employment opportunity for 123 persons, with a total annual wage bill of Birr 54.30
million (including benefit), which considering the 15 years project life, will become a total
of Birr 814.50 million. Moreover, the project will also create foreign currency earning
effect to the country by exporting its products to the international market. Assuming that
only the meat and meat products will be exported, at full capacity operation, the
envisaged project will annually export meat and meat products, valued at Birr 7.016
billion or USD 57.98 million. In addition, at full capacity operation, the envisaged project
will require 345,000 heads of cattle and 690,000 heads of sheep and goats, annually,
which will be purchased at a total cost of Birr 44.850 billion. Therefore, it can be
concluded that by providing a guaranteed market, the project will immensely contribute
to the development of the livestock subsector. Furthermore, during the assumed project

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life, the project, will generate a total of Birr 12.052 billion in terms of corporate tax and
also contributes in the form of payroll tax.

In addition from the above direct impact, the indirect and induced economic/social
impact as measured by value of output, value added, employment, wages & salaries
and government tax is found to be huge.

Hence, from the above discussion, it can be concluded that the envisaged project
creates a significant socio-economic benefit and will have a substantial contribution to
the development of the country.

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1. INTRODUCTION

1.1. Background

1.2. Objectives of the Study

The general objective of the study is to conduct a comprehensive technical feasibility
analysis for the establishment of Cattle, Sheep and Goat Slaughter House and Meat
Processing Plant with specific objectives to:

➢ Conduct market study;

➢ Identify the annual requirements and costs for raw materials and other inputs;
➢ Provide a technical overview of the proposed product mix;
➢ Select appropriate technology;
➢ Analyze the planned production capacity;
➢ Conduct project engineering analysis, including:
• Production equipment
• Auxiliary equipment
• Utility supply systems
• Plant building layouts
➢ Assess the technical workforce requirements, including staffing and skill needs;
and
➢ Analyze the financial viability of the project.

1.3. Approach and Methodology

Methodology and approach used for this component of the study are as discussed
below:

1.3.1. Technical Study

The technical study was carried out based on secondary and primary data collected
from various sources and database of the consultant. Data/ information with regard to
alternative technology, production process and management of integrated abattoir
industry were collected from available literature, database of the consultant and
documents published by various pertinent institutions. In addition, up-to-date unit cost of
material and inputs such as raw materials and utilities were collected from the relevant
sources. Furthermore, based on the outcome of the market study, the recommended
plant capacity and technology, quotations were collected from machinery and
equipment suppliers. Current market price of labor (salary and wages) and cost of
building and civil works was also collected from various institutions.

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1.3.2. Financial and Economic Analysis

Based on the results of the internal assessment, the market and technical studies as
well as standard basic assumptions and existing government regulations, the financial
and economic analysis of the envisaged plant was carried out using Computer Module
for Financial Analyses & Reporting (COMFAR), which is custom made software for
undertaking financial and economic analyses of investment projects developed by
UNIDO.

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2. PLANT CAPACITY, PRODUCT MIX AND PRODUCTION

PROGRAM

2.1. Plant Capacity

The determination of the feasible capacity for the envisaged integrated cattle and sheep
and goat slaughter house and meat processing plant is affected by different technical
and financial factors including market demand, raw material availability, technology and
availability of machinery and equipment with the proposed capacity (economies of
scale), investment and skilled labour requirement etc. Each of the factors that have
impact in the determination of feasible plant capacity is discussed hereunder.

2.1.1. Market Demand

As depicted in the market study, there is high local and export demand for meat and
meat products. The local demand for meat is projected to increase from 131,350 tons in
year 2025 to 190,456 tons and 275,992 tons in year 2030 and 2035, respectively for
local (Addis Ababa) meat market which was stated in Road map of Addis Ababa Meat
sector document this indicate the growing demand for meat in Addis Ababa and the
critical role of formal abattoirs, which are modern abattoirs equipped with advanced
processing technology, improved waste management systems, and enhanced hygiene
standards, in meeting this local demand. Moreover, this is a large demand supply gap.

The export demand for meat is projected to increase from 95,060 tons in year 2025 to
153,096 tons and 246,562 tons in year 2030 and 2035, respectively. Moreover, there is
also a large demand supply gap.

As discussed in the implementation schedule, the integrated cattle and shoat slaughter
house and meat processing plant implementation period starting from the project
approval is two years. The plant is also expected to reach full capacity at the fourth
year, starting at 65% of its full capacity and progressively growing to 75%, 90% and
100% in the first, second, third, and fourth years and then after respectively due to the
period required in technical skill development, establishment of a sustainable cattle,
sheep and goat supply and market penetration (local and export). Thus, considering the
project implementation period and the time required for attaining full capacity operation,
it is prudent to take the year 2030 as a base for plant capacity determination. Therefore,

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only considering the factor market study, the capacity of an integrated abattoir plant is
recommended to be 73, 815.tons.

The meat demand is converted into cattle and shoat to be slaughtered to 63,315 tons
Cattle carcass and 10,500 tons of sheep and goat carcass respectively.

2.1.2. Availability and Supply of Raw Materials

The primary raw material for the envisaged integrated cattle and sheep and goat
slaughtering house and meat processing plant is the livestock to be slaughtered. The
availability of cattle, sheep and goat are a critical factor in determining the plant’s
operational capacity.

Ethiopia is one of the countries with large livestock population. According to FAO
(2024), it has about 68 million cattle, over 49 million goats, and close to 35 million sheep
(in 2022) as shown in Figure 4.1. Although it has high livestock population, the country
has not benefited a lot from this resource due to many structural, administrative and
other intertwined problems. One of the problems, as discussed in the preceding
sections is smuggling of live animals (as high as 1.5 million live animals every year)
through the porous borders. The other is related to low yielding local breeds. Literature
also mentions that the country could not reap products such as meat from the livestock
sector because about 70 percent of the population are breeding cows, which are not
suitable for meat production.

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80,000,00
0 70,291,77
70,000,00 65,354,09 6 66,260,98
0 61,510,25 0 7 67,961,43
8 3
60,000,00
0 52,463,53
50,501,67 5 49,323,16
50,000,00 2 6 Cattle
0 38,963,87
9 Goats
40,000,00
0 42,914,86 Sheep
39,894,39 5 38,013,27
30,000,00 4 2 35,069,95 Pigs
0 33,020,39 6
2
20,000,00 Camels
0

1,760,870 1,616,369 1,533,55

1,859,18 1,701,56 7
- 35,75 36,20
34,95 35,27
2018 6 2019 7 2020 6 2021 9 2022

Figure 2. 1: Livestock Population of Ethiopia

Source: FAOSTAT (2024)

Livestock are sourced from various regions in Ethiopia. Cattle is sourced from pastoral
regions such as Oromia, Afar, Somali, and Amhara, where cattle are reared in large
numbers (CSA, 2023). Shoats are primarily sourced from the Somali and Oromia
regions, where sheep and goats are abundant.

The country’s regional distribution of livestock is given in Table 4.1. Accordingly, Oromia
region is home to the largest livestock population followed by Amhara region.

Table 2. 1: REGIONAL DISTRIBUTION OF LIVESTOCK POPULATION (%)

Regional Cattle Sheep Goats

States
Oromia 39.6 24.4 18.9
Amhara 24.1 25.8 19.9
SNNP 19.0 15.6 13.9
Addis Ababa 0.1 0.1 0.0
Tigray 6.1 3.3 9.2
Somali 5.6 24.9 23.9
Afar 4.2 5.1 12.3

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Regional Cattle Sheep Goats

States
Beinshangul 0.7 0.3 1.0
Gambela 0.3 0.2 0.3
Dire Dawa 0.1 0.2 0.5
Harari 0.1 0.0 0.1
Total 100.0% 100.0% 100.0%

However, several constraints hinder the development of the livestock sector. In terms of
production systems, there is limited knowledge of improved livestock husbandry
practices, and the majority of farmers operate in subsistence and smallholder
production systems. The sector is also affected by recurrent droughts, which lead to
emaciation and death of livestock. Moreover, the livestock market faces challenges
such as inadequate market infrastructure, lack of grades and standards, and limited
access to timely and reliable market information.

Feed shortage is another constraint, caused by rangeland degradation, encroachment

of invasive species, and conflicts over grazing land. Water scarcity during the dry
season also affects livestock productivity and health. The sector also faces challenges
related to diseases and parasites, with limited access to drugs, vaccines, and veterinary
services. Climate change further exacerbates these challenges, affecting livestock
productivity directly and indirectly.

The adoption of livestock technology remains low in Ethiopia, with inefficient artificial
insemination services, a shortage of improved livestock breeds, and limited access to
technical support and research-based evidence. Factors such as education level,
farm/livestock size, access to extension and credit services, and distance from the
market influence the adoption of technology.

Other constraints include breeding-related problems, lack of finance and credit services,
inappropriate institutional arrangements, poor extension services, and inadequate
infrastructure for slaughterhouses and animal welfare. These challenges hinder the
realization of the country's livestock potential and its contributions to food security,
economic growth, and wealth creation.

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Addressing these constraints and promoting sustainable livestock development is

crucial to meet the growing demand for livestock products, optimize social, economic,
and environmental benefits, and ensure the well-being of livestock farmers in the
country.

Some policies, such as national animal breeding for genetic improvement, and national
animal feed resources development, are being developed by government which are
believed to increase the population as well as the productivity of the livestock sector.

The promoter can establish a sustainable supply of cattle and shoats by establishing a
contract farming arrangement with selected farmers and unions in selected potential
areas. The promoter shall provide improved breed, animal feed, improved technologies,
training, finance and sustainable market for the produced livestock. In the future the
promoter will go for its own ranch development. Hence, availability of raw material will
not be a constraint for determination of capacity.

2.1.3. Technology
The technology to be applied for the project and know - how is another important factor
in determining the integrated cattle and sheep and goat slaughter house and meet
processing plant capacity. Specific processes are often related to certain levels of
production or become technically and economically feasible only at such levels
(minimum economies of scale). The nature of technology choice and usage constitutes
a key factor in the determination of plant capacity. When we come to the integrated
cattle and sheep and goat slaughter house and meet processing plant, technically
feasible facilities are available at a wider range of capacities worldwide starting from
100 – 5000 cattle per day. However, the capacity increases will increase the raw
material requirement, management complexity as well as the investment requirement.

Considering all the above capacity determining factors, the envisaged integrated cattle
and shoats slaughter house and meet processing plant is recommended to have a daily
slaughtering capacity y of 1000 cattle (60 - 100 cattle per hour) and 2000 sheep and
goat ( 150 -250 sheep and goat per hour ).

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The annual slaughtering capacity of the plant is estimated at 300,0000 cattle and
600,000 sheep and goat by assuming a standard 10 working hours and two shifts per
day and 300 working days per year.

2.2. Product Mix

A product mix ratio for integrated cattle and sheep and goat slaughter house and meet
processing plant was prepared based on the indications of the market study (local and
export) and capacity determined. As per the market study the cattle meat is demanded
for the local market and export market in the form of carcass (for local market) and
deboned and boiled meat and deboned and blast freeze meat for export market. As per
the indication of the market study out of the total 1000 cattle to be slaughtered in the
envisaged plant, 500 cattle will be carcass meat for local market, 250 cattle will be
deboned and cooked meat and the remaining 250 cattle will be deboned and cooled
meet. On the other hand, out of the 2000 sheep and goat slaughtered, 1,500 will be
exported in the form of chilled carcass and the remaining 500 will be for local carcass in
the form of fresh carcass.

Live Animal Inputs:

• 1,000 cattle/day (average 400 kg live weight)

• 2,000 sheep and goats/day (average 30–40 kg live weight)

Processing Breakdown:

Cattle:

• 500 heads as quarterly carcasses (fresh, local market)

• 250 heads deboned, frozen (West Africa market)
• 250 heads boiled, frozen, packed (China market)

Sheep & Goat:

• 1,500 heads as chilled carcasses (Middle East market)

• 500 heads as fresh carcasses (local market)

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2.2.1. Quantification of Products and inputs for the integrated abattoir plant:
A. Live Animal Inputs (Per Day)

• Cattle: 1,000 heads/day (Average 400 kg live weight) → 400,000 kg total live
weight
• Sheep & Goat: 2,000 heads/day (Average 35 kg live weight) → 70,000 kg total
live weight

B. Processed Meat Output & Breakdown

• Cattle (1,000 heads/day)

500 heads fresh quarterly carcasses for local market

~57% dressed weight → 500 × 228 kg = 114,000 kg carcass

250 heads deboned frozen meat for West Africa

~57% dressed weight, 75% deboning yield → 250 × 228 kg × 0.75 = 42,750 kg meat

Bone waste: 250 × 228 kg × 0.25 = 14,250 kg bones (sent to rendering)

250 heads boiled, frozen packed meat for China

~57% dressed weight → 250 × 228 kg = 57,000 kg raw meat

Cooking shrinkage 10% → 51,300 kg boiled meat

Additional water absorption: 3,000 liters of water

Final packed product: 54,300 kg

• Sheep & Goat (2,000 heads/day)

1,500 heads chilled carcasses for Middle East

~50% dressed weight → 1,500 × 17.5 kg = 26,250 kg carcasses

500 heads fresh carcasses for local market

~50% dressed weight → 500 × 17.5 kg = 8,750 kg carcasses

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C. By-products & Waste Processing

Green and Red Offal Output:

The slaughtering and processing of 1,000 cattle and 2,000 sheep/goats per day
generate significant amounts of green and red offal. These by-products require proper
handling, cleaning, preservation, and packaging to meet hygiene standards and export
requirements. Below is a detailed breakdown of their quantities and the necessary
inputs for processing.

Estimates of Processed Red and Green Offal for Export: - 81, 600kg per day

Blood Processing for Blood Meal:

Blood is processed through coagulation, drying, and milling to produce blood meal. The
conversion ratio from raw blood to dried blood meal is ~20% of the total liquid volume.

• Cattle (1,000 heads/day)

Average blood yield per cattle: 18 liters

Total blood from cattle: 1,000 × 18 = 18,000 liters/day

• Sheep & Goats (2,000 heads/day)

Average blood yield per sheep/goat: 2 liters

- Total blood from sheep/goats: 2,000 × 2 = 4,000 liters/day

- Total Blood Collected: 22,000 liters/day

- Blood Meal Yield (20% of blood volume): 22,000 × 0.20 = 4,400 kg/day

- Estimated Daily Blood Meal Output: 4,400 kg/day (4.4 metric tons/day)

Rendering (Meat & Bone Meal, Tallow)

Raw Material for Rendering: Rendering primarily processes bones, fat trimmings, and
inedible tissues. The proportion of these materials varies based on animal species and
processing efficiency.

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• Cattle (1,000 heads/day)

Average live weight per head: 400 kg

Dressing percentage (yielding edible carcass): ~55%

Inedible by-products available for rendering (~20% of live weight): 80 kg per head

Total rendering material from cattle:

1,000 × 80 kg = 80,000 kg/day (80 metric tons/day)

• Sheep & Goats (2,000 heads/day)

Average live weight per head: 35 kg (considering 30-40 kg range)

Dressing percentage (yielding edible carcass): ~50%

Inedible by-products available for rendering (~18% of live weight): 6.3 kg per head

Total rendering material from sheep/goats:

2,000 × 6.3 kg = 12,600 kg/day (12.6 metric tons/day)

- Total Raw Material for Rendering (Cattle + Sheep/Goats): 92,600 kg/day (92.6 metric
tons/day)

Meat & Bone Meal (MBM) Yield Calculation

After processing (cooking, drying, and pressing), the separation into MBM and tallow
follows standard rendering industry yields:

MBM Output: 45% of raw material

RBD Tallow Output: 12% of raw material

MBM Production Calculation

MBM from cattle: 80,000 × 45% = 36,000 kg/day (36 metric tons/day)

MBM from sheep/goats: 12,600 × 45% = 5,670 kg/day (5.67 metric tons/day)

Total MBM Output: 41,670 kg/day (41.67 metric tons/day)

RBD Tallow Production Calculation

Tallow from cattle: 80,000 × 12% = 9,600 kg/day (9.6 metric tons/day)

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Tallow from sheep/goats: 12,600 × 12% = 1,512 kg/day (1.51 metric tons/day)

Total RBD Tallow Output: 11,112 kg/day (11.11 metric tons/day)

Final Summary of Verified Daily Output

Meat & Bone Meal (MBM): 41.67 metric tons/day

RBD Tallow: 11.11 metric tons/day (12,211.1 liter )

Gelatin & Hard Capsule Processing (Hide & Skin)

Cattle Hide Yield: 1,000 × 35 kg = 35,000 kg hides

Sheep & Goat Skin Yield: 2,000 × 4 kg = 8,000 kg skins

Total Gelatin Yield (10% of hide/skin weight):

(35,000 + 8,000) × 0.1 = 4,300 kg gelatin

The product mix and/or plant capacity for the envisaged integrated cattle and Shoat
slaughter house and meat processing plant is given in Table 2.2.

Table 2. 2: PRODUCT MIX and/or PLANT CAPACITY OF THE ENVISAGED

INTEGRATED CATTLE AND SHOATS SLAUGHTERHOUSE AND MEAT
PROCESSING PLANT

S/N Product description Unit of Annual production

measurement
1 Cattle
1.1 Fresh Carcass Tons 34,200
1.2 Boiled meat Tons 16,290
Deboned and Frozen
1.3 Tons 12,810
meat
2 Shoats
2.1 Chilled carcass Tons 7, 875
2.2 Fresh Carcass Tons 2,625
3 By products
3.1 Red and green offal Tons 24,480
3.2 Blood meal Tons 1,320

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S/N Product description Unit of Annual production

measurement
3.3 RBD tallow Tons 3,333
3.4 Meat and Bone meal Tons 12,501
Galantine and Hard
3.5 Tons 1,290
capsule

2.3. Production Program

It is assumed that owing to probable technological, production and commercial
difficulties, the envisaged project will initially experience problems that can take the form
of only a gradual growth of sales and market penetration, on the one hand and a wide
range of production problems such as availability of raw materials (cattle and sheep and
goat), adjustment of feed stock, acquaintance of technical manpower with the selected
technology and equipment on the other hand. Thus, the annual production program for
the project has been formulated based on the proposed plant capacity, assumed
number of working days per annum, number of shifts of 8 hours per day and the
assumed capacity utilization rates.

Accordingly, the integrated cattle and Shoat slaughter house and meat processing plant
starts its production at 65% of its full capacity and grows to 75%, 90% and full capacity
operation in the second, third and fourth year and then after respectively.

The production program for the life of the project is shown in the Table 2.3 below.

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Table 2. 3: PRODUCTION PROGRAM OF THE ENVISAGED INTEGRATED CATTLE,

SHEEP & GOAT SLAUGHTERHOUSE AND MEAT PROCESSING PLANT

Product Unit of Year 4 and

S/N Year 1 Year 2 Year 3
Description Measurement After

1 Cattle
22,230 30,780 34,200
1.1 Fresh Carcass Tons
25,650
1.2 Boiled meat Tons 8,336 9,619 11,543 12,825
Deboned and 10,589 14,661 16,290
1.3 Tons
Frozen meat 12,218
2 Sheep and Goat
2.1 Chilled carcass Tons 5,119 5,906 7,088 7,875
2.2 Fresh Carcass Tons 1,706 1,969 2,363 2,625
3 By-products
Red and green 15,912 22,032 24,480
3.1 Tons
offal 18,360
3.2 Blood meal Tons 858 990 1,188 1,320
3.3 RBD tallow Tons 2,167 2,500 3,000 3,334
Bone and meat 8,126 9,376 11,251 12,501
3.4 Tons
meal
Galantine and 839 968 1,161 1,290
3.5 Tons
Hard capsule

% 65 75 90 100
Capacity utilization

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3. MATERIALS AND INPUT

The materials and inputs required for the slaughtering and processing of meat and by
products of meat include direct raw materials, indirect raw materials and utilities. Hence,
the material and input required for the envisaged plant is discussed briefly under the two
categories in the sections to follow.

3.1. Direct Raw Material

3.1.1. Livestock
The major direct raw materials for the slaughter house are cattle, sheep and goat to be
slaughtered. The availability and major source of cattle, sheep and goat in the country is
briefly discussed in section 2.1.1 of this feasibility study report. Accordingly, the
envisaged slaughter house will source cattle, sheep and goat from all over the country
up to 500 km away from the project location. The major sources of livestock, which are
cattle, goat and sheep, in Addis Ababa are Borena, Guji, Wollega, Sidama, Harar,
Wollo, Menize, Gonder, Jimma, Arsi, Jiru, and Woliata.

In general, the source from the south accounts for more than 50% of all cattle reaching
the city. Cattle originating from Yabelo and Negele/Arsi move north to Shashemene,
where they are joined by cattle from the Bale Mountains, and continue north through
Adama and Bishoftu, where they are joined by cattle coming from Harar in the east, to
reach Addis Ababa. The western route originates from the Wolega area and travels
through Ambo to Addis Ababa. The north-eastern route originates cattle from Wolo and
northern Shewa and travels through Debre Birhan to Addis Ababa. A large number of
sheep come from the northern Shewa. Though sheep and goat are usually sourced
locally rather than cattle, export traders prefer the species of wanki and Somali goat for
meat export that are sourced from the Somali region and Borena area.

Livestock passes through a complex process before reaching end consumers in Addis
Ababa. Animals pass many steps and stages in the production and movement in the
primary and secondary livestock markets in different woreda and zonal towns, then
livestock are aggregated and eventually moved towards the terminal market in Addis
Ababa and other big towns. At the farm level, transactions are carried out between

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farmers and itinerant buyers who travel to rural villages to buy animals. Trading at
primary, secondary and terminal markets involve smaller rural traders to butchers and
consumers. Primary markets are usually located in district (wereda) towns where
farmers and pastoralists sell animals to others (for stock replacement), local butchers
(for slaughtering) and consumers. Medium-scale traders, who collect for resale in larger
regional markets, are also a party to this show.

Secondary markets are big markets in regional towns where up to 1000 animals are
supplied weekly for slaughtering and export purposes. The major actors are medium
traders, mainly sellers, exporters, big traders, butchers, and consumers as buyers. The
main actors in the secondary markets are wholesalers, who purchase animals for
themselves and other retail customers, or agents and traders. Terminal markets are
located in large cities such as Addis Ababa, where the major sellers are traders who
have purchased livestock at the secondary markets. The major buyers are butchers,
hotels, cooperatives, consumers, and other institutions. In the terminal markers, more
than 1000 animals are sold in a day for the purpose of slaughtering at abattoirs and
backyard slaughtering. The number of animals supplied, the number of buyers, and the
number of sellers participating increased from primary to tertiary livestock markets. In
contrast, large-scale traders sell to consumers, slaughterhouses, and traders for exports
at terminal markets in or near major towns and Addis Abeba.

Based on the review of literature and KII interviews, there are four main livestock
markets in the different gates of the city as shown in Table 5.1. These are big live
animal markets that are immediate sources of animals for slaughter in the town. The
markets are Kara Allo, Kera, Kality, and Shegole cattle markets, and one formal shoat
market in Birichiko, which is managed by the city administration. In addition, there are
about 30 informal/roadside shoat markets in the city, as traders aim to be as close to
the consumer as possible. The formal markets provide services for facilitating live
animal marketing by providing shades, water and feed supplies, and security services
for the unsold animals in the shades. In addition, the markets have facilities such as
animal clinics, quarantines, feed stores, water supply lines, and offices. Live animal

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traders or suppliers pay an entry fee to trade in the market centers and for unsold cattle
until the next market day.

Table 3. 1: Key characteristics of the main Livestock markets in Addis Ababa

Location Market days

Name of (Sub– Size Type of Estimated No.
Primary Secondary
markets city) (m2) animals of animals
traded traded
Kality LS Saturday Tuesday
market Akaki 21, 000 Cattle 1000 - 1200
Kality
Kera LS Wednesday Friday
market N/Silk 20,500 Cattle 900 - 1000
Lafto
Kara Allo Friday Wednesday
LS market Yeka sub- 14,400 Cattle 700 - 800
city
Shegole Wednesday Friday
LS market Kolfe 4,300 Cattle <= 500
Keranio

The cattle and shoats for export market are procured through direct purchase from
smallholder farmers and pastoralists, Livestock Traders (Middlemen) who buy livestock
and transport them to feedlots or directly to the slaughterhouse, feedlot systems that
finishes animals for optimal weight gain and meat quality before slaughter.

3.1.2. Feed and Fodder

Feed and fodder are primarily important in the context of feedlots, they also play a role
in ensuring the health and quality of livestock before slaughter. The types of feed and
fodder required include grass and pasture, concentrated feed, and supplements.

3.1.3. Water
Water consumption in an integrated abattoir depends on various factors, including
slaughtering, processing, cleaning, rendering, and by-product handling. Based on
standard industry data:

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• Cattle: Water usage ranges between 1,000L to 1,500L per head in full-scale
slaughter and processing.
• Sheep & Goat: Water usage typically ranges from 200L to 300L per head,
depending on processing depth.

Taking average consumption: For Cattle (1,250L per head), For Sheep/Goat (250L per
head); Total Water Consumption Per Day Calculated as follows:

→ For 1,000 Cattle per Day: 1,250L per head × 1,000 cattle = 1,250,000L (1.25 million
liters/day)

→ For 2,000 Sheep & Goats Per Day: 250L per head × 2,000 shoats = 500,000L (0.5
million liters/day)

Other Processes: Additional water usage for general cleaning, packaging, and boiler
makeup water typically adds 200,000 – 300,000L/day

Total Daily Water Consumption = 1,250,000L (Cattle) + 500,000L (Sheep & goat)
+ 250,000L (Additional Use) = 2,000,000L/day (2000m3/day).

3.1.4. Veterinary Drugs and Vaccines

Veterinary medicines are necessary to ensure animal health and disease prevention
before slaughter. It include vaccines against common diseases such as foot-and-mouth
disease, anthrax, and brucellosis; antibiotics and Anthelmintics to treat infections and
parasites; and anesthesia and Sedatives used during stunning and handling of animals
to ensure humane slaughtering practices.

3.2. Indirect Raw Materials

Indirect raw materials required by the envisaged integrated cattle, sheep and goat
slaughter house and meat processing plant includes packing material for different meat
and by products, sanitary chemicals (sanitizers and disinfectants, detergents, sterilizing
agents) neutralization and bleaching chemical for RBD tallow production, chemicals
used for treatment of raw material (sodium carbonate and hydrochloric acid) for gelatine

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production. The packing material includes plastic wraps and vacuum seals for
packaging fresh meat; cardboard boxes and plastic trays for secondary packaging,
particularly in retail markets and export; internally lined polypropylene bags for
packaging gelatine powder and bone, meat and blood meals, plastic/steel drums for
packaging RBD tallow; and labels and tags containing information on halal certification,
processing date, and product details.

Sanitization and Cleaning Chemicals:

1. Alkaline Detergents: Used for cleaning equipment and slaughterhouse floors.

Approx. 500 liters/day.
2. Acid-based Cleaners: Used for specific cleaning processes of equipment.
Approx. 300 liters/day.
3. Sanitizing Solutions (Chlorine-based): Applied to surfaces and carcasses to
ensure hygiene. Approx. 150 liters/day.
4. Antibacterial Detergents: For cleaning hands and certain processing areas.
Approx. 100 liters/day.
5. Descaling Agents: For cleaning machinery involved in the meat processing
stages. Approx. 50 liters/day.
6. Disinfectants (Non-toxic for food safety): Used in hygiene-critical areas like
packing stations. Approx. 200 liters/day.

Processing Chemicals:

1. Citric Acid: Used in the blood meal production process. Approx. 50 kg/day.
2. Sodium Hydroxide: Utilized in the hide and skin processing for gelatin and RBD
Tallow production. Approx. 86 kg/day.
3. Hydrogen Peroxide: Used for sterilization in meat production and packaging.
Approx. 50 liters/day.
4. Sodium Bicarbonate: For neutralizing residual acidity in certain processing
stages. Approx. 40 kg/day.
5. Food-Grade Acids (Lactic Acid): Used in some of the meat and offal treatment
processes. Approx. 20 liters/day.

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Chemicals for RBD Tallow Production

1. Bleaching Earth (for decolorization): Usage: ~1% of raw material weight,

Required: 11,112 kg/day × 1% = 111 kg/day
2. Activated Carbon (for further bleaching and deodorization): Usage: 0.3% of
raw material weight, Required: 11,112 kg/day × 0.3% = 33.34 kg/day
3. Phosphoric Acid or Citric Acid (for acidulation in deodorization): Usage:
0.3% of raw material weight, Required: 11,112 kg/day × 0.3% = 33.34 kg/day
4. Antioxidants (for stabilizing tallow): Usage: 0.05% of raw material weight,
Required: 11,112 kg/day × 0.05% = 5.56 kg/day
5. Sodium Carbonate (for neutralizing acid residues): Usage: 0.1% of raw
material weight, Required: 11,112 kg/day × 0.1% = 11.11 kg/day

Packaging Materials Required per Day

• For Meat Processing:- Cotton Fabric for Sheep & Goat Carcasses (Middle East
Export): 1,500 pieces (8m² each)
• Vacuum Bags & Cartons for Frozen Deboned Meat:- 42,750 kg (West Africa)
→ 42,750 vacuum pouches + 1,710 cartons
• Packaging for Boiled Meat:- 54,300 kg (China) → 54,300 vacuum pouches +
2,172 cartons
• Local Market Fresh Meat Packaging:- Fresh Beef (500 cattle heads,
quartered): 500 plastic sheets
• Fresh Sheep & Goat Carcasses:- 500 plastic sheets
• For By-products:
- Blood Meal Bags (50 kg per bag): 4,400 kg = 88 bags per day
- Meat & Bone Meal Bags (50 kg per bag): 41,670 kg/day = 835 bags per
day
- Tallow Drums (180L per drum): 11.11 metric tons/day (12,211.1 liter ) =
68 drums
- Gelatine Packaging: 4,300 kg gelatine = 860 pouches
• For Green and Red offal:
- Vacuum Sealed Bags per Day (25kg each) : 3,264 vacuum bags per
day.
- Cartons/Boxes Required (each of cartons holds 10 bags): 327 cartons
per day.

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3.3. Utilities
The utilities required for the envisaged slaughterhouse and meat processing plant are
water for process, cleaning and sanitation, electricity for running machines and lighting,
steam for heating, compressed air for running pneumatic equipment and cleaning and
refrigerants for cooling of meat.

3.3.1. Electricity Consumption for an Integrated Abattoir Plant (kWh per Day)
Electricity consumption in an integrated abattoir varies depending on slaughtering,
processing, refrigeration, by-product rendering, and other utilities. Based on industry
standards and practical experience, let's break it down the estimation of electricity
consumption. Slaughtering & Processing: 8,000 kWh, Cold Storage & Freezing: 12,000
kWh, Rendering Plant: 7,500 kWh, Blood Processing: 2,500 kWh, Offal Processing:
1,500 kWh, Boiled Meat Production: 4,500 kWh, Water Treatment & Waste
Management: 4,000 kWh, General Utilities & Others: 4,500 kWh so total Daily Electricity
Consumption estimation = 44,500 kWh/day.

3.3.2. Fuel (Diesel) Consumption

Boilers (for sterilization, cooking, rendering): 4,000 L/day

Generators (backup electricity): 1,500 L/day

Total Diesel Consumption: 5,500 L/day

3.4. Material and Inputs Requirements and Costs

The annual requirement and costs of materials and inputs for the slaughtering of 1,000
cattle per day and 2000 sheep and goats and process the meat to market destination
and requirement as well as process the by product to produce gelatine, hard capsule,
RBD tallow, meals of bone, meat, and blood are estimated based on the determined
capacities, product mix, production program, standard consumption rate of the industry
recommended by the technology suppliers and current unit price. Annual requirement
and cost of material and input, at full capacity operation (considering 15% reject) is
given in Table 3.2. The total annual cost of material and input at full capacity operation
is estimated at Birr 45,552,950.55 is required.

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Table 3. 2: ANNUAL COST OF RAW MATERIALS and INPUTS AT FULL CAPACITY OPERATION
S/N Raw material description Unit of Unit Price Cost (in 000 Birr)
Amount
meas. (Birr) FC LC TC
1 Livestock
1.1 Cattle head 345,000
100,000 - 34,500,000 34,500,000
count
1.2 Sheep and goat head 690,000
15,000 - 10,350,000 10,350,000
count
2 Sanitary chemicals
2.1 Alkali based sanitary Lt 150,000
96 - 14,400 14,400
chemical
2.2 Acid based sanitary chemical Lt 90,000 80 - 7,200 7,200
2.3 sanitizing Solution (Chlorine Lt 45,000
80 - 3,600 3,600
based)
2.4 Anti-Bacterial Detergent Lt 30,000 78 - 2,340 2,340
2.5 Descaling Agent Lt 15,000 360 - 5,400 5,400
2.6 Disinfectant Lt 60,000 75 - 4,500 4,500
3 Process Chemicals
3.1 Citric Acid Kg 15,000 154 - 2,310 2,310
3.2 Sodium Hydroxide Kg 26,000 150 - 3,900 3,900
3.3 Hydrogen Peroxide Lt 15 ,000 40 - 600 600
3.4 Sodium Bicarbonate Kg 12,000 25 - 300 300
3.5 Lactic Acid (food grade) Lt 6,000 200 - 1,200 1,200
3.6 Bleaching Earth Tons 33 20,000 - 660 660

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 TTH Trading Plc – Meat Processing Plant Feasibility Study – Technical & Financial Analysis (Vol II)

S/N Raw material description Unit of Unit Price Cost (in 000 Birr)
Amount
meas. (Birr) FC LC TC
3.7 Phosphoric Acid Tons 10 50,000 - 500 500
3.8 Activated Carbon Tons 10 100,000 - 1000 1000
3.9 Anti Oxidation Tons 2 60,000 -- 120 120
3.10 Sodium Carbonate Tons 3 25,000 - 75 75
4 Packing Material
4.1 Cotton Fabric for sheep and Pcs 450,000
75 - 33,750 33,750
goat export meat
4.2 Vacuum Pouches Pcs 29,115,000 10 - 290,115 290,115
4.3 Carton for export meat Pcs 1,164,600 35 - 40,761 40,761
4.4 Fresh Cattle Carcass Pcs 150,000
20 -- 3,000 3,000
Packaging Plastic Sheet
4.5 Fresh Shoat Carcass Pcs 150,000
15 -- 2,250 2,250
Packaging Plastic Sheet
4.6 Polypropylene Bag for Blood Pcs 26,400
55 - 1,452 1,452
Meal (50Kg)
4.7 Polypropylene Bag for Bone Pcs 250,500
55 - 13,777.5 13,777.5
and Meat Meal (50Kg)
4.8 Drum for Tallow (180 lt) Pcs 20,400 1600 - 32,640 32,640
4.9 Gelatine Packaging Pouch Pcs 258,000 10 - 2,580 2,580
4.10 Red and Green Offal Vacuum Pcs 979,200
20 - 19,584 19,584
Sealed Pouches
4.11 Carton box for gelatine Pcs 98,100 40 - 3,924 3,924

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 TTH Trading Plc – Meat Processing Plant Feasibility Study – Technical & Financial Analysis (Vol II)

S/N Raw material description Unit of Unit Price Cost (in 000 Birr)
Amount
meas. (Birr) FC LC TC
packaging
5 Utilities
5.1 Water m3 600,000 6.5 - 3,900 3,900
5.2 Electricity Kwh 13,350,000 1.223 - 16,327.05 16,327.05
5.3 Fuel lt 1,650,000 *115.00 - 189,750.00 189,750.00
Total - 45,552,950.55 45,552,950.55
*115.00 only the current price it is expected to be increase

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4. PLANT LOCATION AND SITE SELECTION

Location refers to the choice of region for setting up the envisaged integrated cattle and
sheep and goat slaughter house and meat processing plant. The geographical location
of the slaughter house is a strategic and long-term investment decision that is difficult or
can cause considerable loss to change once made. Location selection has a strong and
long-term influence on the success of the slaughter house and hence, considerable
care must be exercised in selecting the ideal or optimum location for the envisaged
slaughter house, and many different factors have to be considered.

Therefore, the Consultant have followed a two stage location selection processes. The
first stage is selection of potential geographical locations based on the availability of
critical project requirements of the project. The second stage of selection involved
selection of best location among the potential plant locations identified during the first
stage based on a structured multi criteria scale quantitatively.

4.1. First Stage- Selection of Potential Location

This stage of location selection involves the identification of potential geographic
locations based on the availability of the critical project requirements. These critical
requirements of the envisaged plant are proximity to raw material, proximity to market
center, availability of basic infrastructure such as water, electricity and road, and
availability of skilled and semi-skilled labor. These critical project requirements are
discussed briefly hereunder.

1) Proximity to raw material

As discussed in the material and input section of this study, the principal raw material
which has a significant impact on the success of the project is cattle, sheep and goat.
Addis Ababa is a strategic center for sourcing raw materials from different parts of the
country. The city has a well-established market center at different parts of the city and
hence Addis Ababa is the preferred location from raw material availability point of view.

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2) Proximity to market center

The products of the plant are for local and export market. The major consumers of
processed meat and by products of slaughter house are the urban population and
industries (RBD tallow). Addis Ababa is the market center for these products In addition
the export market requires an airport with a cold room infrastructure to store the meat
products until exported. Such infrastructure is only available in Addis Ababa Airport.
Considering proximity to market center, Addis Ababa is the preferred location for the
envisaged plant.

3) Utilities

The utilities required for the slaughter house are water and electricity. Hence, the
location to be selected has to be equipped with the electric and water supply
infrastructure. Addis Ababa is best location in this regard since these infrastructures are
readily available. The two industrial parks namely; Kilinto and Bole Lemi are ideal
location since their equipped with basic infrastructures such as water, electricity and
waste water treatment plant.

4) Transport Infrastructure

The envisaged slaughter house will require a well-established road infrastructure since
it requires to transport the raw materials to the plant (cattle, sheep and goat) and the
produced products (cooled and fresh carcasses, processed meat, gelatine, RBD tallow,
meals of blood, bone and meat, etc.) to the market. Therefore, the location for the
envisaged slaughter house should have a road infrastructure. Addis Ababa and the
selected industrial parks are the best locations when evaluated with the factor
availability of road infrastructure.

5) Labor (Skilled and Semi-skilled)

The availability of managerial staff and skilled labor is critical factor for the success of
any capital-intensive projects while unskilled labors for labor intensive projects. The
slaughter house is in the middle of the above two extremes i.e. capital intensive and
labor intensive. The availability and cost of human resources, including skilled, semi-

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skilled and unskilled workers, is required for the construction and operation of the
envisaged slaughter house. Addis Ababa is the best location as far as this criterion is
considered.

6) Other infrastructures

Social amenities’ such as health Centers, education facilities, financial institution, and
other infrastructures like telecommunication are essential elements for lowering the
initial investments cost and the economical and smooth operation of the envisaged
abattoir and meat processing plant. These infrastructures are hence required for the
success of the project in the implementation and operation phases.

7) Government Policy

The Ministry of Industry has recognized the significant level of pollution of the
environment (water, soil and air) caused by the leather industries since they cannot
afford the construction and operation of effluent treatment plant to a tertiary level. Hence
to minimize the prevailing adverse impact of these leather industries, Ministry of
Industry has decided to collect the wet end parts of leather industries (leather and
related industries at Modjo, neighboring cities and Addis Ababa) which are the major
polluting part of the leather industries to Modjo Leather City Industry Park and establish
a central effluent treatment plant to a tertiary stage to properly treat the waste water
generated by industries in the park and minimize the adverse impact on environment.
Hence, this study considered Modjo Leather city as a potential location to the envisaged
slaughter house in line to the policy of the government.

Considering all the above critical project requirements of the envisaged slaughter
house, three potential plant sites were selected. These potential plant sites are Kilinto
Industrial Park, Bole Lemi Industrial Park and Modjo Leather Industrial Park.

4.2. Second Stage - Selection of Location

All the three locations identified in stage one location selection can be possible locations
as far as they are able to fulfill all the project requirements discussed above. The

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second stage of location selection involves identification of the best location among the
potential identified based on a multi criteria selection framework.

Selection of the best from the three potential locations involves the following
procedures:

• Identification of factors (selection criteria);

• Assigning weight for each identified factor according to the relative
importance of the factor for the installation and operation of the envisaged
slaughter house; and
• Ranking the identified potential locations using a scale constructed in such a
way as to magnify the relative importance of a given location for the
installation and operation of the plant.
Each factor is given a rating score, which could be high, medium or low. Multiplying the
factor weight with the corresponding rating score will give weighted average (rating
index) for each location. By so doing, the location with the highest rating index is
selected for the installation of the plant. Each procedure is described briefly as follows.

1) Identification of Selection Criteria

The criteria considered in selecting appropriate location for installing the plant are:

• Proximity to raw material source;

• Proximity and access to Market;
• Availability of land and cost
• Availability of basic infrastructure;
o Electricity
o Road
o Water
• Proximity to social amenities;
o Financial institution
o Health centers

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o Educational infrastructure such as KG, elementary, secondary school,

TVET’s, colleges, university
o Labor availability; etc.
• Presence of Central waste water treatment plant

2) Assigning of Weight

The above selection criteria of location are accorded different weights depending on
their importance in the installation and operation of the envisaged slaughter house.

The proximity to raw material sources and market is critical factor for the overall
success and profitability of the plant and hence accorded 25% of the total weight each.
The other critical factor availability of basic infrastructure and waste water treatment
plant were accorded a weight of 15% each.

The availability of social amenities and availability of land and cost are accorded a
weight of 10% each. The last but not the least factor i.e. proximity to the head office and
major stakeholders is accorded a weight of 15%.

3) Rating Scale

Given the above factor weights, the identified locations are rated in a scale established
as below based on the fulfilment of the location with the selection factor. According to
this rating scale, the identified locations are rated in the following manner.

Rating Value
Scale
High 5
Medium 3
Low 1

Accordingly, locations which fulfil the selection criteria is rated as ‘high or 5 ‘, locations
which do not fulfil the selection criteria are rated as ‘low or 1’ and those in the middle
shall be rated as ‘medium or 3’.

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The detailed evaluation of the potential locations comprising Modjo Leather City
Industrial Park, Kilinto Industrial Park and Bole Lemi Industrial Park is given in Table
4.1.

Table 4. 1: Plant Site Selection Ranking

S/N Selection Potential Plant Sites
Criteria Modjo Leather City Industrial Kilinto Industrial Park Bole Lemi Industrial Park
Park
Rating Weight Score Rating Weight Score Rating Weight Score
A B (A X B) A B (A X B) A B (A X B)
1 Proximity to raw
3 0.25 0.75 5 0.25 1.25 5 0.25 1.25
material
2 Proximity to
3 0.25 0.75 5 0.25 1.25 5 0.25 1.25
market
3 Availability of
basic 3 0.15 0.45 5 0.15 0.75 5 0.15 0.75
infrastructure
4 Availability of
3 0.15 0.45 5 0.15 0.75 5 0.15 0.75
social amenities
5 Availability of
5 0.1 0.5 3 0.1 0.3 3 0.1 0.3
Land and Cost
6 Availability of
State-of-the-art
5 0.1 0.5 5 0.1 0.5 3 0.1 0.3
effluent
treatment plant
Total 1.0 3.4 1.0 4.8 1.0 4.6
Ranking 3rd 1st 2nd

As can be seen in the above table Kilinto Industrial Park is the preferred location for the
envisaged slaughter House, however Kilinto Industrial Park is decided by the
government to be designated only for high-tech and pharmaceutical manufacturing
plants. As a result, the second ranked Bole Lemi Industrial Park is selected for this
slaughter and meat processing plant.

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4.3. Plant Site

The proposed location of the project is in Addis Ababa, the capital city of Ethiopia and
the plant site is proposed to be in Bole Lemi Industry Park located 8 o58’24”N and
38o51’18’’E at an altitude of 2281m above sea level.

Figure 4. 1: Location Map of the Plant Site

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Figure 4. 2: Proposed Bole Lemi Plant Site Block Drawing

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Figure 4. 3: Proposed plant site image

4.4. Climate
The climatic conditions in Addis Ababa are characterized by a warm and temperate
atmosphere. The summers are much rainier than the winters. The average annual
temperature is 15.6 °C | 60.0 °F. The annual precipitation is approximately 1874 mm |
73.8 inch.

The month characterized by the lowest precipitation levels is December, exhibiting a

mere 7 mm | 0.3 inch of rainfall. The greatest amount of precipitation occurs in August,
with an average of 419 mm | 16.5 inch.

Figure 4. 4: Average temperature by month Addis Ababa

On average, the month of April experiences the highest temperature with an average
value of 17.2 °C | 63.0 °F. The lowest average temperatures in the year occur in
December, when it is around 14.4 °C | 58.0 °F.

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Table 4. 2: Weather by Month // Weather Averages Addis Ababa

Januar Februar Marc April May June July Augus Septembe Octobe Novembe Decembe
y y h t r r r r
Avg. 15.1 °C 16.4 °C 17.2 17.2 17 15.7 14.8 14.7 14.8 °C 14.6 °C 14.7 °C 14.4 °C
Temperatur (59.2) (61.5) °F °C °C °C °C °C °C (58.7) °F (58.4) (58.5) °F (58) °F
e °C (°F) °F (62.9) (63) (62.6 (60.2 (58.6 (58.5) °F
°F °F ) °F ) °F ) °F °F
Min. 8.3 °C 9.5 °C 10.9 11.4 11.3 10.8 11 11 °C 10.2 °C 8.3 °C 8.1 °C 7.8 °C
Temperatur (47) °F (49) °F °C °C °C °C °C (51.8) (50.4) °F (47) °F (46.6) °F (46) °F
e °C (°F) (51.6) (52.5 (52.4 (51.4 (51.8 °F
°F ) °F ) °F ) °F ) °F
Max. 22.3 °C 23.6 °C 23.7 23.4 22.9 21.3 20 19.8 20.1 °C 20.9 °C 21.6 °C 21.5 °C
Temperatur (72.1) (74.5) °F °C °C °C °C °C °C (68.2) °F (69.5) (70.8) °F (70.8) °F
e °C (°F) °F (74.7) (74.2 (73.3 (70.4 (67.9 (67.7) °F
°F ) °F ) °F ) °F ) °F °F
Precipitatio 18 28 72 147 178 271 386 419 286 51 11 7
n / Rainfall (0) (1) (2) (5) (7) (10) (15) (16) (11) (2) (0) (0)
mm (in)
Humidity 52% 44% 49% 58% 62% 76% 86% 87% 82% 61% 52% 52%
(%)
Rainy days 3 4 8 11 10 17 22 22 18 5 2 1
(d)
avg. Sun 9.3 9.8 9.6 9.5 9.3 7.8 6.1 5.9 7.1 9.3 9.6 9.3
hours
(hours)
Data: 1991 - 2021 Min. Temperature °C (°F), Max. Temperature °C (°F), Precipitation / Rainfall mm (in), Humidity,
Rainy days. Data: 1999 - 2019: avg. Sun hours

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There is a notable fluctuation in precipitation, with 412 mm | 16 inch variance observed

between the month of least rainfall and that of highest downpour. The variation in
temperatures throughout the year is 2.8 °C | 5.1 °F.

The month with the highest relative humidity is August (87.04 %). The month with the
lowest relative humidity is February (44.35 %). The month with the most rainy days is
July (29 days). The month with the fewest rainy days is December (1.67 days).

Source: en.climate-data

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5. TECHNOLOGY AND ENGINEERING

This chapter of the feasibility study examines the engineering and technology aspects of
establishing an integrated abattoir and meat processing plant with a daily capacity of
1,000 cattle and 2,000 sheep and goat. It focuses on the selection of appropriate
technology, process design, equipment specifications, utility requirements, and cost
estimation. A well-planned facility ensures efficient operations, food safety compliance,
and sustainable waste management.

The study evaluates modern slaughtering, meat processing, rendering, and by-product
utilization technologies to enhance productivity and minimize waste. The process flow
design covers key stages, including livestock reception, slaughtering, meat cutting,
deboning, packaging, rendering for by-products, and capsule production from hide and
skin. Advanced automation and quality control systems are integrated to improve
efficiency and product quality.

The plant layout is designed for optimized workflow, ensuring hygienic conditions and
compliance with HACCP, ISO 22000, and GMP standards. The study provides detailed
specifications for essential equipment such as stunning systems, overhead conveyors,
refrigeration units, boilers, and effluent treatment plants. Additionally, utility systems,
including water supply, steam, refrigeration, and compressed air, are analyzed to
ensure energy-efficient operations.

Finally, the cost estimation section outlines the investment required for machinery,
utilities, and operational expenses. This feasibility study provides a comprehensive
roadmap for developing a modern, high-capacity meat processing facility that meets
international and local standards while maximizing productivity and resource efficiency.

5.1. Technology
The selection of appropriate technology is crucial for ensuring the efficiency, hygiene,
and sustainability of an integrated abattoir and meat processing plant. The chosen
technology must align with international food safety standards, optimize resource
utilization, and minimize environmental impact. This study evaluates modern

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slaughtering, meat processing, rendering, and by-product utilization technologies to

enhance productivity while maintaining high-quality standards.
In the slaughterhouse and meat processing plant, automation in stunning, bleeding,
dehiding, evisceration, carcass splitting, deboning, and packaging improves efficiency
and hygiene. modern refrigeration and cold storage systems are incorporated to
maintain product freshness and meet food safety regulations. The rendering plant will
utilize wet or dry rendering technology for efficient processing of by-products like blood,
bones, and fat into valuable secondary products such as tallow, bone meal, and blood
meal.
For capsule production from hide and skin, hydrolysis-based gelatin extraction
technology ensures high-quality pharmaceutical-grade gelatin. This process involves
pretreatment, hydrolysis, filtration, concentration, drying, and capsule molding using
semi-automated systems to maintain consistency and efficiency. The selection of
machinery for each stage considers energy efficiency, ease of operation, and
compliance with industry standards.
Additionally, utility systems such as steam boilers, water treatment plants, refrigeration
units, and effluent treatment systems are chosen based on energy efficiency and
environmental sustainability. The overall technology selection aims to create a cost-
effective, high-capacity, and environmentally responsible meat processing facility that
ensures optimal productivity, product safety, and resource utilization.

5.1.1. Technology Selection for Cattle and Shoats Slaughter House

The selection of appropriate slaughterhouse technology for cattle and shoats (sheep &
goats) must ensure efficiency, hygiene, animal welfare, and environmental sustainability
while maintaining compliance with HACCP, ISO 22000, OIE, and GMP standards.
Several technology alternatives exist for each stage of the slaughtering process, and
the best choice depends on factors such as processing capacity, automation level,
energy efficiency, hygiene control, and waste management. This section evaluates
available technologies and recommends the most suitable options.

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a) Livestock Handling

The livestock (cattle, sheep and goat) to be slaughtered has to be accommodated

properly before slaughtering so as to reduce pre-slaughter stress, injured and improve
the quality of the meat to be produced by minimizing the release of stress-related
hormones. The technologies available for cattle handling are traditional handling using
human resource; semi-automatic that uses mechanical crowd gates, non-slip flooring,
and guiding rails; and automatic handling that uses hydraulic or pneumatic gates and
conveyance systems which reduces labor requirements and ensures smoother
movement. A semi-automatic raceway with pneumatic crowd gate and restraining box
for handling cattle and guided raceways with non-slip flooring and adjustable holding
pens for handling shoat is recommended for the envisaged slaughterhouse.
b) Stunning

Stunning is rendering livestock to be slaughtered insensible to pain before being

shackled, hoisted, thrown, cast, or cut. The three most common methods of stunning
are mechanical (captive bolt and pneumatic stunning), electrical, and carbon dioxide
(CO2) gas. The end result of each method is to render the livestock unconscious.

Mechanical stunning involves firing a bolt through the skull of the animal using a pistol
or pneumatic device. There are two types of mechanical stunning; captive bolt stunning
and pneumatic stunning based on the drive system of they use. The captive bolt
stunning is further classified into two forms, i.e. penetrative and non-penetrative.
Penetrative stunners cause insensibility due to the concussive blow to the skull and the
physical damage resulting from the entry of the bolt into the brain. Non-penetrative
stunners have a 'mushroom-headed' bolt which impacts with the skull but does not enter
the brain; mechanical (gunshot). Captive bolt pistols are widely used in abattoirs due to
their reliability and effectiveness. However, they require regular maintenance and skilled
operators to ensure proper functioning.

Pneumatic stunners operate similarly to captive bolt pistols but use compressed air to
deliver the blow. These devices are often used in larger abattoirs with high throughput,
as they can be more efficient and consistent than handheld devices.

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Electrical stunning passes a current of electricity through the brain of the animal. It is
used widely on small livestock such as poultry, sheep and goats. The simplest
mechanism consists of electrodes or probes built in the form of tongs with insulated
handles and applied between the ear and eye of the livestock for 1–4 secs. About 5–7
secs must elapse before the livestock is bled.

Chemical stunning involves the use of gases, such as carbon dioxide, to render the
livestock unconscious. They are then removed and bled immediately. This method is
primarily used for pigs and is considered one of the most humane stunning methods
available but expensive and complex.

Captive bolt stunning with penetrative form is appropriate technology for cattle
slaughtering line of our size since it is effective for large size livestock such as cattle,
less costly and easier to operate. The non-penetrative form of captive bolt stunning is
recommended for halal process, where manual slaughter is preferred. Electrical head-
to-body stunning is recommended for shoats due to its efficiency and compliance with
international standards.

c) Bleeding

Bleeding, also known as exsanguination, is the process of removing blood from the
carcass of an animal after it has been stunned. This involves severing major blood
vessels, such as the jugular vein and carotid artery, to allow the blood to drain out.
Proper bleeding is essential for several reasons, including ensuring high meat quality,
reducing microbial growth, and enhancing the visual appeal of the meat.

The most common method of bleeding cattle is bilateral bleeding which involves
severing both the jugular veins and carotid arteries on both sides of the neck. Bilateral
bleeding ensures rapid and thorough blood removal, which is essential for maintaining
meat quality. For sheep and goat, throat cutting which involves making a deep cut
across the throat, severing the jugular veins and carotid arteries. Throat cutting is a
quick and efficient way to remove blood from the carcass and ensure high meat quality.

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There are three alternative technologies of bleeding; (1) Horizontal Manual bleeding
which places the livestock horizontally on a concrete slab or a sturdy plastic pallet for
bleeding. It is labor intensive and with higher contamination risk, (2) Hoisted bleeding
which involves hoisting of stunned livestock for complete blood drainage, and (3)
automated bleeding with conveyor rails which ensures uniform bleeding time and
reduces contamination. This technology is expensive and applicable for high-capacity
slaughterhouse.

Hoist bleeding on stainless steel V-shaped troughs with automatic blood collection
systems for both cattle and shoats.is recommended for the envisaged plant since it is
more hygienic and facilitates collection of blood for further use.

d) Hide Removal (Cattle) and Skin Processing (Sheep & goats)

After bleeding, the next step is de-hiding which involves removing the skin from the
carcass. There are two alternative methods of de-hiding (1) manual which involves
using knives to carefully cut and peel the hide away from the carcass. It requires skill
and precision to avoid damaging the meat. It.is time consuming, labor-intensive, and
prone to contamination and (2) mechanical de-hiding which uses machines designed to
pull the hide off the carcass efficiently. This method is faster and reduces the risk of
contamination. The envisaged plant is recommended to be equipped with pneumatic or
hydraulic systems to remove hides efficiently while maintaining hygiene.

The skinning process of sheep and goats can be performed through several methods,
each with its own advantages and drawbacks. The most basic is manual skinning,
where skilled workers use knives and their hands to carefully separate the skin from the
carcass. While this method requires minimal investment, it is labor-intensive and poses
a higher risk of contamination and skin damage if not done properly. Semi-mechanical
skinning improves on this by combining manual cuts with pneumatic or mechanical aids
such as winches or rollers to pull the skin off. This method is faster, reduces labor
strain, and offers better consistency in skin quality while maintaining a moderate cost.

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Fully automated skinning systems are the most advanced and hygienic, using robotic
arms, vacuum systems, or guided rollers to completely remove the skin with minimal
human contact. These systems are ideal for large-scale abattoirs with high slaughtering
capacities but come with a significant capital investment and technical maintenance
requirements. In some developing regions, a simpler pulling method is used, where the
carcass is suspended and the skin is pulled down manually or tied to a hook. Although
cost-effective, this method increases the risk of contamination and skin tearing.

Among these options, the semi-mechanical method is the most recommended for
medium to large operations. It offers a good balance between hygiene, efficiency, skin
quality, and affordability. It reduces manual handling, minimizes the risk of
contamination, and enhances productivity without requiring the high costs associated
with full automation. Regardless of the method used, maintaining hygiene through
proper sanitation, using sterilized tools, and training staff in correct techniques is crucial
for ensuring both meat and skin quality.

e) Evisceration

Following de-hiding/skinning, evisceration is performed. This involves removing the

internal organs from the carcass. The abdominal cavity is opened, and the organs are
carefully extracted to prevent contamination of the meat. The organs are then inspected
for any signs of disease or abnormalities.

There are three alternative technologies for evisceration; (1) Manual Evisceration which
involves manual labor to remove the internal organs from the carcass. It is labor-
intensive, slow, and high risk of contamination. (2) Semi-Automated Evisceration is
removal of internal parts manually supported with vacuum gut removal equipment. It
reduces contamination risks and improves efficiency. (3) Fully Automated Evisceration
Lines is a human free operation. It is effective but requires higher investment and
applicable for large-scale plants but costly.

A semi-automated evisceration system with vacuum gut removal is recommended for

speed and hygienic evisceration of cattle and manual evisceration with conveyor-

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assisted workflow is recommended for cost-effectiveness evisceration of sheep and

goat.

f) Splitting

Once the internal organs have been removed, the carcass is split into two halves. This
step is necessary for easier handling and further processing. Splitting is usually done
using a saw to ensure a clean and precise cut. There are two methods; (1) Manual
Splitting with Handsaws. It is labor-intensive and inconsistent. (2) hydraulic or
pneumatic splitting Saws. This method ensures clean, even cuts while reducing physical
strain. Pneumatic splitting saws for cattle and bandsaws for shoats is the recommended
technology for splitting operation to ensure precise cutting with minimal bone
fragmentation.

g) Carcass Washing

The final step in the dressing process is carcass washing, which involves thoroughly
cleaning the carcass to remove any remaining dirt, blood, or contaminants. There are
two methods of carcass washing. (1) Manual Washing: Workers use water hoses and
brushes to clean the carcass manually. (2) Automated Washing: Modern abattoirs often
use automated washing systems that spray water at high pressure to clean the carcass
efficiently. Automatic washing technology is recommended for the envisaged
slaughterhouse.

h) Chilling and Cold Storage

Carcasses should go into the cooler as soon as possible and should be as dry as
possible. The object of refrigeration is to retard bacterial growth and extend the shelf-
life. Chilling meat post-mortem from 40°C down to 0°C and keeping it cold will give a
shelf-life of up to three weeks, provided high standards of hygiene were observed
during slaughter and dressing.

There are three alternative cooling method; (1) Conventional Cold Storage Rooms
which requires longer cooling times and increasing microbial risks. (2) Blast Chilling
Tunnels which uses high-velocity cold air for rapid cooling, reducing bacterial growth.

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(3) Cryogenic Chilling (CO2 or Liquid Nitrogen): Extremely fast but costly and energy-
intensive. Blast chilling tunnels is recommended for both cattle and shoats since it
rapidly bring core temperatures below 4°C.

5.1.2. Technology Selection for Boiled Meat Production (250 Cattle Carcasses
per Day)
Selection of appropriate technology for boiled meat production must ensure efficiency,
hygiene, food safety, and product quality while optimizing energy consumption and
minimizing waste. The key processing steps include carcass preparation, boiling,
deboning, packaging, chilling, and waste management. Various technology alternatives
exist for each stage, and the best choice depends on factors such as production
capacity, automation level, sanitation control, energy efficiency, and compliance with
HACCP and ISO 22000 standards.
This section evaluates all available technologies, recommends the most suitable ones,
and selects appropriate equipment for boiling, cutting, chilling, packaging, and waste
utilization.
A. Carcass Preparation Technologies
Before boiling, carcasses must be properly cleaned, portioned, and prepared to ensure
uniform cooking and avoid contamination.
Technology Options for Carcass Preparation:
• Manual Cutting with Butcher Knives:
Advantages: Low initial cost and adaptable for different cutting needs.
Challenges: Requires significant labor, inconsistent portioning, and poses a higher risk
of contamination.
• Band Saw Cutting Machines:
Advantages: Increases speed and precision, resulting in uniform carcass portions.
Challenges: Requires skilled operation and has moderate maintenance requirements.
• Hydraulic Carcass Cutting Machines:
Advantages: Fully automated, highly precise, and requires minimal manual labor.
Challenges: High purchase and maintenance costs.

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Recommended Technology:
A band saw cutting machine is the best choice for efficient and hygienic portioning of
carcasses before boiling.

B. Boiling Technologies
The boiling process must ensure even cooking, proper sterilization, and controlled
temperature management to maintain meat quality and safety.

Technology Options for Boiling Systems:

• Open Steam Kettles (Traditional Method):
Strengths: Simple design, low initial cost, and easy to operate.
Limitations: Inconsistent heating, high energy consumption, and increased
contamination risk.
• Steam Jacketed Kettles (Batch Process):
Strengths: Provides even heat distribution, improves energy efficiency, and ensures
better hygiene.
Limitations: Requires batch processing and trained operators.
• Continuous Boiling System with Automated Conveyors:
Strengths: Maximizes efficiency, ensures uniform cooking, and reduces energy waste.
Limitations: High installation and maintenance costs.
• Vacuum Steam Cooking (Advanced Technology):
Strengths: Preserves moisture, enhances flavor, and ensures superior cooking control.
Limitations: Very expensive and requires specialized maintenance.

Recommended Technology:
A steam-jacketed kettle system with automated temperature control is ideal for efficient
batch processing, ensuring consistent heat distribution, lower energy consumption, and
compliance with hygiene regulations.

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Recommended Equipment for Boiling:

Stainless steel steam-jacketed kettles (500-1000L capacity each).
Steam generation system (high-pressure boiler, 500-1000 kg/hr capacity).
Automated temperature and pressure control system.

C. Deboning and Meat Processing Technologies

After boiling, carcasses must be deboned, separated into meat cuts, and processed for
packaging.
Technology Options for Deboning:
• Manual Deboning with Knives:
Advantages: Low-cost and flexible for various meat cuts.
Challenges: Requires skilled labor, is time-consuming, and poses contamination risks.
• Semi-Automated Deboning Line with Conveyor Tables:
Advantages: Increases efficiency, improves hygiene, and speeds up processing.
Challenges: Requires trained workers and has moderate investment costs.
• Fully Automated Deboning Machines:
Advantages: Fastest, most hygienic, and requires minimal labor.
Challenges: Very expensive and requires precise carcass placement.

Recommended Technology:
A semi-automated deboning system with conveyor-assisted workflow is ideal for
maintaining efficiency, product quality, and hygiene while optimizing costs.

Recommended Equipment for Deboning:

Stainless steel conveyor belts for meat transportation.
Semi-automated deboning machines for large meat pieces.
Hand-held electric knives for fine deboning.

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D. Chilling and Cold Storage Technologies

Proper chilling after boiling prevents bacterial growth and maintains product quality.
Technology Options for Chilling Systems:
• Conventional Refrigerated Storage (Slow Cooling):
Benefits: Low initial cost and simple operation.
Drawbacks: Slow cooling, which can increase microbial risks.
• Blast Chillers (Rapid Cooling):
Benefits: Rapid temperature reduction, preserves freshness, and prevents bacterial
growth.
Drawbacks: Higher energy consumption and requires proper insulation.
• Cryogenic Cooling (Liquid Nitrogen or CO₂):
Benefits: Extremely fast, preserves product quality effectively.
Drawbacks: Expensive operating costs and specialized equipment required.

Recommended Technology:
A blast chilling system with stainless steel racks for rapid cooling of boiled meat to 4°C
within 90 minutes is optimal.

Recommended Equipment for Chilling:

Blast chilling tunnels with airflow control.
Cold storage rooms with adjustable temperature (0-4°C).

E. Packaging and Storage Technologies

Proper packaging extends shelf life and ensures product safety.
Technology Options for Packaging:
• Manual Packaging in Plastic Containers:
Advantages: Low-cost and easy to implement.
Disadvantages: Higher contamination risks and shorter shelf life.
• Vacuum Packaging Machines:
Advantages: Extends shelf life by removing air and preventing oxidation.
Disadvantages: Higher initial investment required.

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• Modified Atmosphere Packaging (MAP):

Advantages: Superior freshness retention and longest shelf life.
Disadvantages: Expensive and requires advanced sealing equipment.

Recommended Technology:
Vacuum packaging machines for airtight sealing and extended shelf life.

Recommended Equipment for Packaging:

Industrial-grade vacuum packaging machines.
Automated sealing and labeling machines.

G. Final Summery of Recommended Technology Selection

Process stage Recommended Technology
Carcass Preparation Bandsaw cutting machines
Boiling Steam-jacketed kettles(500-1000L)
Deboning Semi-automated deboning line
Chilling Blast chilling tunnels
Packaging Vacuum Packaging machines

This selection ensures high efficiency, food safety, and sustainability for boiled meat
production from 250 cattle carcasses per day while maintaining compliance with
industry standards.

5.1.3. Technology Selection for Deboned and Blast-Frozen, Vacuum-Packed

Beef Production (250 Cattle Carcasses per Day)
Technology selection for deboned, blast-frozen, and vacuum-packed beef involves a
combination of efficient systems to ensure high-quality product output, food safety
compliance, and cost-effectiveness. Each stage deboning, freezing, and packaging
requires the selection of appropriate technology to ensure the final product is of the
highest standard, safe for consumption, and retains its quality over time. The primary
focus is on speed, hygiene, yield optimization, and minimal waste. This section

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describes all possible technology alternatives, evaluates their benefits and limitations,
and provides recommendations for each critical process step.
A. Deboning Technologies
Deboning is a critical process that separates the meat from bones, producing cuts ready
for further processing or packaging. The technology selected here should maximize
yield, ensure hygiene, and minimize labor costs.
Technology Alternatives for Deboning:
• Manual Deboning
Benefits: Low initial cost, flexible to different cuts and animal sizes.
Drawbacks: Labor-intensive, slower, potential for inconsistent yields, and higher
contamination risks.
• Semi-Automatic Deboning Lines with Conveyor Systems
Benefits: Increases speed and efficiency compared to manual methods, reduces labor
costs, and improves consistency.
Drawbacks: Requires trained workers to operate the system efficiently; moderate
investment costs.
• Fully Automated Deboning Systems
Benefits: Highest efficiency, minimizes human intervention, provides precise meat
extraction, and improves hygiene.
Drawbacks: Very high initial cost, complex maintenance, and highly specialized staff
required for operation.
• Meat Cutter Machines
Benefits: Speed and uniformity in cutting large volumes of meat.
Drawbacks: Limited flexibility, and requires precise handling to prevent wastage.

Recommended Technology for Deboning:

A semi-automated deboning line with a conveyor system is the most suitable option for
optimizing both speed and hygiene at moderate costs. This system will ensure a
consistent and high yield of meat with reduced labor requirements.

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Recommended Equipment for Deboning:

Semi-automated deboning machines for separating meat from bones (e.g., Dawson
Deboning Machine).
Conveyor belts for continuous meat flow.
Meat saws for precision cuts.
Electric knives for smaller cuts and difficult parts.

B. Blast Freezing Technologies

Blast freezing is essential to preserve the meat's quality, prevent microbial growth, and
reduce spoilage. Given the high volume (250 cattle per day), the freezing technology
must be efficient and capable of handling large quantities without compromising product
quality.
Technology Alternatives for Blast Freezing:
• Static Freezing Chambers (Conventional Freezing)
Benefits: Simple and cost-effective for small-scale operations.
Drawbacks: Slow freezing times, potential for uneven freezing, and loss of meat quality
due to slow ice crystal formation.
• Blast Freezing Tunnel (Conveyor-Based Freezing)
Benefits: Fast freezing times, preserves texture and taste of meat, and ensures even
temperature distribution.
Drawbacks: High initial investment and operational costs (energy).
• Fluidized Bed Freezing (Advanced Cryogenic Freezing)
Benefits: Fastest freezing time, reduces moisture loss, preserves texture, and uses less
energy.
Drawbacks: Very high initial costs, specialized equipment, and maintenance needs.
• Plate Freezing Systems
Benefits: Efficient for freezing pre-portioned cuts of meat in trays; good for high-volume
production.
Drawbacks: Slower than blast freezing and less versatile for various product shapes.

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Recommended Technology for Freezing:

A blast freezing tunnel system is recommended as the most efficient and cost-effective
solution for high-volume freezing of beef, ensuring rapid freezing and maintaining meat
quality by minimizing the growth of ice crystals.

Recommended Equipment for Freezing:

Blast freezing tunnel with conveyor belt (e.g., Frigoscandia Tunnel Freezer).
Air circulation system for uniform freezing.
Temperature control units to ensure precise freezing conditions (e.g., -18°C to -22°C for
beef).

C. Vacuum Packaging Technologies

Vacuum packaging is essential to preserve the quality of the meat, extend its shelf life,
and prevent contamination. Proper sealing also ensures that the product maintains a
fresh appearance for consumers.
Technology Alternatives for Vacuum Packaging
• Manual Vacuum Packaging
Benefits: Low-cost equipment, simple to operate, suitable for small-scale operations.
Drawbacks: Labor-intensive, slower than automated systems, higher risk of inconsistent
sealing, and limited capacity.
• Semi-Automatic Vacuum Packaging Machines
Benefits: Higher capacity and speed than manual systems, reduces labor costs, and
ensures consistent vacuum sealing.
Drawbacks: Requires operator training and has moderate investment costs.
• Fully Automatic Vacuum Packaging Lines
Benefits: Maximum speed and consistency in vacuum sealing, integrates well with
conveyor systems for continuous packaging, and requires minimal labor.
Drawbacks: High initial cost and complex operation.

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• Modified Atmosphere Packaging (MAP)

Benefits: Extends the shelf life of meat by replacing oxygen with an inert gas mixture
(CO2, N2).
Drawbacks: High capital cost and more complex than vacuum sealing.

Recommended Technology for Vacuum Packaging:

A semi-automatic vacuum packaging machine is recommended as it offers high speed
and efficiency, while maintaining consistent vacuum sealing with moderate capital
investment. For larger quantities, a fully automatic vacuum packaging line integrated
with a conveyor system could be considered.

Recommended Equipment for Vacuum Packaging:

Vacuum chamber machines (e.g., Multivac R535 for beef).
Vacuum sealers (automatic or semi-automatic depending on capacity).
Gas flushing system (optional for MAP).

D. Overall Production Line Integration

Integrating the deboning, freezing, and vacuum packaging technologies into a cohesive
production line is key to ensuring smooth operations, minimizing downtime, and
maximizing output. Proper integration also reduces labor and material handling costs.
Key Integration Considerations:
• Automation Level: A semi-automated line can be used for moderate volumes,
while fully automated systems are more efficient for high-throughput operations.
• Conveyor Systems: Integrated conveyor systems can facilitate continuous
processing, reducing manual handling and improving speed.
• Quality Control: Proper control systems for each machine, such as temperature
and pressure sensors, can help maintain consistency and food safety throughout
the process.
• Waste Management: Waste should be integrated into a rendering or waste-to-
energy system, which converts by-products into valuable materials, reducing
environmental impact.

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E. Final Summery of Technology Recommendations

Process stage Recommended Technology
Deboning Semi-automated deboning line with conveyors
Freezing Blast freezing tunnel system
Vacuum Packaging Semi-automatic vacuum packaging machines
Integration Automated conveyors system, temperature control, and
quality monitoring systems

These technologies ensure cost-effective, hygienic, and efficient processing for 250
cattle per day, producing deboned, blast-frozen, vacuum-packed beef that meets
industry standards for food safety, quality, and shelf life.

5.1.4. Technology Selection for Gelatin and Hard Capsule Manufacturing from
Hide and Skin
Gelatin is a high-value protein derived from animal hide and skin, widely used in food,
pharmaceuticals, and industrial applications. One of its primary pharmaceutical
applications is in the production of hard gelatin capsules, which serve as an essential
dosage form for medications and supplements. The selection of appropriate
technologies for gelatin extraction and capsule production is crucial to ensure high yield,
purity, efficiency, and compliance with international quality standards (e.g., GMP, FDA,
and ISO 22000).

This section explores various processing technologies, evaluates their advantages and
disadvantages, and recommends the most suitable solutions with justified reasoning.
The selection process also includes equipment specifications and sizing for each stage
of production.

A) Technology Selection for Gelatin Extraction

The gelatin production process involves the following key steps:

• Pre-treatment – Removing non-collagen materials from raw hide and skin.

• Extraction – Breaking down collagen fibers into gelatin.

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• Purification & Concentration – Removing impurities and concentrating gelatin.

• Drying & Milling – Converting gelatin into a usable powder form.

Table 5. 1: Alternative Technologies for Gelatin Extraction

Technology Description Advantage Disadvantage

Option
Acid Process Uses acid treatment Faster Extraction on High acid consumption,
(Type A Gelatin) (e.g. sulfuric acid, (7-10 days) higher risk of corrosion ,
hydrochloric acid) yield softer gelatin. environmental concerns.
Alkaline Process Uses lime or sodium Stronger gelatin, Higher cost, requires
(Type B Gelatin) hydroxide for longer higher gel strength, precise control of
pre-treatment (30-60 better enzyme concentration
days) pharmaceutical - and temperature.
grade quality
Enzyme Uses proteolytic Faster than alkaline Higher cost, require
Hydrolysis enzymes to extract process, better precise control of
gelatin a controlled purity, reduced enzyme concentration
environment environmental and temperature
impact.

Recommended Technology for Gelatin Extraction

For high-quality pharmaceutical and food-grade gelatin, the enzyme hydrolysis method
is recommended. This method ensures high purity, low contamination risk, and
environmental sustainability while reducing chemical waste.

Table 5. 2: Recommended Equipment for Gelatin Extraction

Process Step Recommended Equipment Specifications

Raw Material Washing Rotary drum washer Stainless steel, automated
spray nozzles
Dehairing &Liming Dehairing drum with lime PH control system, stainless
dosing system steel construction
Enzymatic Hydrolysis Hydrolysis tanks with 5000-10,000L capacity,
temperature & pH control automated control system
Filtration & Purification High-pressure membrane 0-1-0.2 micro filtration
filtration unit
Concentration Vacuum evaporator Multi- stage Evaporation,5-
10% moisture control
Drying & Milling Fluidized bed dryer, ball mill Stainless steel, GMP-
Compliant

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B) Technology Selection for Hard Gelatin Capsule Manufacturing

Hard Capsule Production Process involves gelatin melting, capsule formation, drying,
and finishing.

• Gelatin Preparation – Heating and mixing gelatin solution.

• Capsule Molding – Dipping molds into the gelatin solution.
• Drying & Trimming – Controlled drying and cutting of capsule halves.
• Sorting & Printing – Ensuring quality and adding labels if required.
• Packaging – Final inspection and sealing in blister packs or bottles.

Table 5. 3: Alternative Technologies for Hard Capsule Manufacturing

Technology Description Advantage Disadvantage

option
Manual Capsule Capsules are Low cost, flexible Slow inconsistent
Molding molded by hand or production quality, labor-
simple machines intensive
Semi-Automated Gelatin dipping, Better consistency, Requires skilled
Capsule Molding drying, and moderate cost labor, limited
trimming are speed.
partially automated
Fully Automated Continuous High speed, best High initial cost,
Capsule Product process from quality least labor complex
Line gelatin melting to required maintenance
packaging

Recommended Technology for Hard Capsule Production

A fully automated capsule production line is recommended for its high efficiency,
precision, and compliance with pharmaceutical regulations.

Table 5. 4: Recommended Equipment for Hard Capsule Manufacturing

Process Step Recommended Specifications

Equipment
Gelatin Preparation Gelatin melting and mixing Stainless steel,
tank temperature- controlled
Molding & Forming Capsule dipping machine High -speed, adjustable
size settings

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Process Step Recommended Specifications

Equipment
Drying Capsule drying tunnels Uniform airflow, humidity
control
Trimming &Joining Capsule trimming and Precision cutting,
locking machine automatic capsule joining
Sorting & Inspection Capsule sorting system Optical inspection,
automatic rejection
Printing & Labeling Capsule printing machine Inkjet or laser printing
Final Packaging Blister packaging or GMP-compliant, high-
bottling machine speed

C) Final Technology Recommendations

Process Recommended Justification

Technology
Gelatin Extraction Enzyme hydrolysis High Purity, eco-friendly,
method better control over product
quality
Capsule Manufacturing Fully automated capsule High efficiency,
production line pharmaceutical grade
quality, reduced labor costs

By implementing enzyme hydrolysis for gelatin extraction and a fully automated capsule
production line, the facility will achieve high-quality output, meet export standards, and
maintain cost efficiency while ensuring minimal environmental impact.

5.1.5. Technology Selection for Processing Red and Green Offal for Export
Processing red and green offal for export requires careful selection of technologies to
ensure hygiene, efficiency, and product quality while meeting international food safety
standards. Red offal (liver, heart, kidneys) must be cleaned, trimmed, frozen, and
packaged efficiently, while green offal (tripe, intestines) requires extensive washing,
degreasing, and processing to remove contaminants before packaging. This section
explores all available processing technologies, evaluates their advantages and
disadvantages, and recommends the most appropriate solutions with justified
reasoning.

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A. Red Offal Processing Technologies

Processing red offal requires cleaning, trimming, chilling/freezing, and packaging while
ensuring that microbial contamination is minimized.
Technology Alternatives for Red Offal Processing
• Manual Processing (Traditional Methods)
Benefits: Low-cost setup, simple operation, and flexibility.
Drawbacks: Labor-intensive, slower processing speeds, higher risk of contamination,
and inconsistent quality.
• Semi-Automated Processing Lines
Benefits: Higher efficiency, improved hygiene, and better product consistency.
Drawbacks: Moderate capital investment required, needs skilled operators.
• Fully Automated Offal Processing Lines
Benefits: Maximum efficiency, minimal contamination, high yield, and consistency.
Drawbacks: High initial investment, complex maintenance, and requires specialized
staff.

Recommended Technology for Red Offal Processing

A semi-automated processing line is recommended as it balances efficiency, hygiene,
and investment costs. Fully automated systems are ideal for large-scale production but
may not be cost-effective for mid-scale operations.

Table 5. 5: Processing Steps & Equipment Selection for Red Offal

Process Step Recommended Technology & Equipment

Sorting & Inspection Stainless steel sorting tables, hand -held knives
disinfectants
Cleaning & Inspection Rotary drum washers with food-grade disinfectants
Trimming & Cutting Automatic offal cutting machines
Cooling Chilling Plate chillers or immersion chilling tanks
Freezing Blast freezers (-180 C to 250 C)
Packaging & Sealing Vacuum packaging machines for hygiene and extended

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Process Step Recommended Technology & Equipment

shelf life
Metal Detection & Metal detectors & x-ray inspection systems
Quality Control
Storage & Distribution Cold storage rooms (-180 C and below)

B. Green Offal Processing Technologies

Green offal processing is more complex than red offal due to the need for intensive
cleaning, degreasing, and sterilization to meet export standards.
Technology Alternatives for Green Offal Processing
• Manual Cleaning & Processing
Benefits: Simple and low-cost setup, suitable for small operations.
Drawbacks: Labor-intensive, slow, inconsistent results, higher contamination risks.
• Semi-Automated Green Offal Processing Lines
Benefits: Increased efficiency, reduced contamination risk, and improved product
uniformity.
Drawbacks: Requires trained staff and moderate capital investment.
• Fully Automated Cleaning Systems
Benefits: High efficiency, best hygiene, and reduced water usage.
Drawbacks: High cost and complex maintenance.

Recommended Technology for Green Offal Processing

A semi-automated system with specialized washing and degreasing machines is
recommended, ensuring hygienic and efficient processing while keeping investment and
operational costs manageable.

Table 5. 6: Processing Steps & Equipment Selection for Green Offal

Process Step Recommended Technology & Equipment

Sorting & Inspection Stainless steel sorting tables, conveyors
Initial Rinsing High – pressure water jets

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Process Step Recommended Technology & Equipment

Degreasing & Washing Rotating drum washers with warm water & food-grade
chemicals
Scalding & Dehairing Scalding tanks with automated hair removal systems
(If Needed)
Trimming & Cutting Automatic intestine cutting and trimming machines
Sterilization& UV sterilization chambers, hot water baths
Disinfection
Cooling & Drying Air-drying tunnels or refrigeration units
Packaging & Sealing Vacuum sealing machines or MAP (modified atmosphere
packaging)
Cold Storage Refrigeration units (-20C to -40C for green offal)

C. Waste Management & Hygiene Control

Offal processing generates organic waste, wastewater, and by-products that must be
managed properly.
Recommended Waste Handling Technologies
Effluent Treatment Plants (ETP) to remove organic matter before releasing wastewater.
Rendering Plants to convert offal waste into protein meals and tallow for animal feed or
biofuel.
Composting Systems for biodegradable waste.
Hygiene Control Measures
Ozone water sterilization systems to eliminate bacterial contamination.
Stainless steel work surfaces to prevent cross-contamination.
UV Disinfection Systems for water used in washing processes.

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D. Final Summery of Technology Recommendations

Process Steps Recommended Technology
Red Offal Processing Semi-automated processing line with
blast freezing
Green Offal Processing Semi – automated cleaning & sterilization
line
Waste Management Effluent treatment & rendering plant
Hygiene & Quality Control Ozone sterilization, UV disinfection,
HACCP compliance

By adopting semi-automated processing lines with high hygiene standards, the facility
can efficiently process red and green offal while ensuring compliance with export market
requirements and international food safety regulations.

5.1.6. Technology Selection for Rendering Plant: Production of RBD Tallow

and Meat & Bone Meal (MBM)
Rendering is a critical process in the meat industry that transforms slaughterhouse by-
products into valuable products such as Refined, Bleached, and Deodorized (RBD)
tallow and Meat and Bone Meal (MBM). These products have commercial applications
in food, pharmaceuticals, animal feed, and industrial sectors. The selection of the right
rendering technology is essential to ensure high product quality, process efficiency,
environmental compliance, and economic viability.
This section presents various rendering technologies, compares their advantages and
disadvantages, and recommends the most suitable process flow, machinery, and
equipment based on efficiency, sustainability, and product quality.
A. Rendering Process Overview
Rendering involves the thermal processing of animal by-products to separate fat (tallow)
from protein and bone materials. The key steps include:
• Raw Material Handling & Pre-Treatment – Collection, size reduction, and
storage.

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• Cooking & Fat Extraction – Heat application to break down tissues and separate
tallow.
• Solid-Liquid Separation – Removal of solids (protein and bone meal) from fat.
• Tallow Refining (RBD Tallow Production) – Further purification of tallow.
• Drying & Milling (MBM Production) – Processing protein and bone fractions into
meat and bone meal.

B. Alternative Technologies for Rendering Process

Table 5. 7: Rendering Technologies

Technology Description Advantages Disadvantages

Option
Batch Rendering Cooking in closed High fat recovery, Low throughput,
vessels under flexible processing higher energy
controlled consumption
conditions
Continuous Dry Uses continuous Higher efficiency, More expensive,
Rendering cookers with lower energy use, requires skilled
controlled heating automated operation.
Continuous Wet Uses hot water or Produces high - High water
Rendering steam to separate quality tallow and consumption,
fat and proteins protein meal wastewater
treatment required

Recommended Rendering Method

Continuous dry rendering is the best option due to:
• Higher efficiency and lower operational costs compared to batch rendering.
• Better energy savings compared to wet rendering.
• Automated control leading to consistent product quality.

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C. Technology Selection for Each Rendering Process Step

i. Raw Material Handling & Pre-Treatment
Raw material includes bones, fat, organs, and tissues from slaughtered animals. Proper
handling is essential to prevent contamination and degradation.
Process Recommended Specification
Equipment
Raw Material Collection Conveyor system Stainless steel, automated
loading
Size Reduction Pre-breaker & crusher Heavy-duty, high-speed
cutting
Storage & Pre-heating Heated raw material bins Insulated, temperature –
controlled.
Reasoning:
Prevents bacterial growth and improves process efficiency.
Automated conveyors and crushers reduce manual handling and labor costs.

ii. Cooking & Fat Extraction

This stage breaks down tissues and extracts tallow using thermal treatment.
Process Recommended Specifications
Equipment
Cooking Continuous dry rendering 6-8 bar pressure, indirect
cooker heating system
Fat Separation Decanter Centrifuge High-speed, stainless
steel.

Reasoning:
Continuous cookers ensure consistent cooking, higher efficiency, and lower energy
usage.
Decanter centrifuges provide better fat separation and high tallow yield.

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iii. Tallow Refining (RBD Tallow Production)

After extraction, crude tallow requires refining to remove impurities, color, and odor.
Process Recommended Specifications
Equipment
Degumming Acid degumming reactor Phosphoric acid dosing,
high-speed agitation.
Bleaching Activated bleaching earth High surface area
filter adsorption.
Deodorization Vacuum distillation unit High-temperature, low-
pressure operation.

Reasoning:
Acid degumming removes phospholipids and improves stability.
Bleaching earth filtration removes color and residual impurities.
Deodorization eliminates odor and ensures food-grade tallow.

iv. Meat and Bone Meal (MBM) Production

The protein and bone solids left after fat separation are dried, ground, and classified into
MBM.
Process Recommended Specifications
Equipment
Drying Disc dryer Steam-heated, indirect drying
Milling Hammer High-speed, stainless steel.
Screening & Package Vibration sieve, automatic Dust-free automated bagging
packing machine

Reasoning:
Disc dryers ensure moisture reduction while preserving protein content.
Hammer mills produce fine MBM powder suitable for animal feed.
Automated packaging ensures hygiene and quality control.

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v. Environmental and Energy Considerations

Rendering plants produce wastewater, odors, and solid waste that must be managed
efficiently.
Recommended Waste Management Technologies
Waste type Recommended Benefits
solution
Wastewater Effluent Treatment Removes organic matter, fats, and
Plant (ETP) proteins
Odor Control Bio-filters & Reduces air pollution and odor
Scrubbers complaints.
Solid Waste Biogas digesters Converts organic waste into energy.

Reasoning:
ETP ensures compliance with environmental regulations.
Biogas recovery reduces energy costs and improves sustainability.

vi. Final Technology Recommendations

Process Step Recommended Justification
Technology
Rendering Continuous dry rendering High efficiency, lower energy
costs, and better product
quality
Tallow Refining Degumming, bleaching, Ensures high- purity RBD
and deodorization tallow for food and industrial
use.
MBM Production Disc drying & hammer Maintains high protein
milling content, improves digestibility
Waste Treatment ETP, biogas digesters, Reduces environmental
odor scrubbers impact and recovers energy.

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By implementing continuous dry rendering and advanced refining & drying technologies,
the plant can achieve maximum product yield, high efficiency, and compliance with
international quality standards.

5.1.7. Technology Selection for Utilities in an Integrated Abattoir and Meat

Processing Plant
Utilities are the backbone of an integrated abattoir and meat processing facility,
supporting critical operations across slaughtering, meat processing, rendering, offal
processing, gelatin production, and cold storage. The key utility systems include steam
generation, water supply and treatment, refrigeration, compressed air, waste
management, and power supply. Proper selection of utility technologies ensures
operational efficiency, energy conservation, cost-effectiveness, and environmental
sustainability.
This section examines various technological alternatives for each utility, compares their
advantages and disadvantages, and recommends the most suitable solutions based on
performance, energy efficiency, and integration capabilities.

A. Steam Generation and Distribution Systems and Technology Alternatives

Steam is essential for sterilization, heating, rendering, and cleaning in meat processing
operations.
Table 5. 8: Technology Alternatives for Steam Generation

Technology Description Benefits Drawbacks

Fire- Tube Boilers Hot gases pass Simple design, Lower efficiency,
through tubes easy maintenance slow heating
submerged in water
Water-Tube Water flows High efficiency, Higher cost, needs
Boilers through tubes quick steam skilled operation
heated externally production
Electric Boilers Heats water using There are no Expensive to
electricity emissions, compact operate due to high

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Technology Description Benefits Drawbacks

electricity costs
Biomass & Boilers Uses organic waste Low fuel costs, Requires waste
like wood chips or environmentally collection on and
animal waste as friendly complex operation.
fuel

Recommended Technology:
Water-tube boilers are preferred for their higher efficiency, faster response time, and
ability to handle variable loads in meat processing.
Biomass boilers can be considered as a secondary option for sustainability by using
organic waste from the abattoir.
Essential Equipment: Boiler, feed water pumps, economizer, steam distribution piping.

B. Water Supply and Wastewater Treatment

Meat processing requires large volumes of clean water for slaughtering, washing, and
cooling. Wastewater must be treated to meet environmental standards.
Table 5. 9: Technology Alternatives for Water Treatment

Technology Description Benefits Drawbacks

Sand Filtration Removes solid Simple and Cannot remove
particles from water affordable dissolved contaminants

Reverse osmosis Filters out bacteria, Produces high - High energy

(RO) salts and impurities quality water consumption,
expensive
UV sterilization Uses ultraviolet No chemicals Does not remove solid
light to kill bacteria required particles
Chlorination Uses chlorine to Effective and low- Requires careful
disinfect water cost handling of chemicals

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Table 5. 10: Technology Alternatives for Wastewater Treatment

Technology Description Benefits Drawbacks

Dissolved Air Separates fats oils, High efficiency, Uses lot energy
Flotation (DAF) and solids using air compact system.
bubbles
Activated sludge Uses bacteria to Highly effectively Required
process break down organic for organic waste continuous
waste. monitoring
Anaerobic Converts organic Produces Requires skilled
digestion waste in to biogas renewable energy operation.

Recommended Technologies:
Reverse Osmosis for high-quality process water.
Dissolved Air Flotation (DAF) for wastewater treatment to remove fats and solids.
Anaerobic digestion for organic waste treatment, generating biogas for energy recovery.

C. Refrigeration and Cold Storage

Cold storage is critical for meat preservation, blast freezing, and chilled transportation.
Table 5. 11: Technology Alternatives for Refrigeration

Technology Description Benefits Drawbacks

Ammonia Uses ammonia as a Highly efficient, Toxic if leaked,
Refrigeration cooling agent lower running costs requires strict
safety measures
Co2, , refrigeration Uses carbon Eco-friendly, non- Expensive
dioxide as a toxic installation
refrigerant
Freon – based Uses synthetic Easy to operate Harmful to the
systems refrigerants (HFCs, environment, being
HCFCs) phased out

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Recommended Technology:
Ammonia-based refrigeration due to high efficiency, low operating costs, and
sustainability.
Blast Freezers with ammonia refrigerant for rapid cooling of meat products.
Cold Rooms with temperature-controlled units for storage.
Essential Equipment: Ammonia compressors, evaporators, condensers, insulated cold
storage rooms.

D. Compressed Air System

Compressed air is required for pneumatic tools, packaging, and automation in the
facility.
Table 5. 12: Technology Alternatives for Compressed Air

Technology Descriptions Benefits Drawbacks

Reciprocating Uses pistons to Provide high Noisy requires
compress air. pressure, simple frequent cooling
maintenance
Screw Uses rotating Energy- efficient Higher purchase
compressors screws for operates quietly cost
continuous
compression
Centrifugal Uses high-speed Best for large - Expensive, requires
compressors rotating impellers scale operations expert maintenance

Recommended Technology:
Screw compressors are preferred due to higher efficiency, reliability, and continuous
operation.
Air dryers and filters must be integrated for moisture and contaminant removal.

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E. Power Supply and Backup System

A stable and uninterrupted power supply is critical for plant operations.
Table 5. 13: Technology Alternatives for Power Supply

Technology Description Benefits Drawbacks

Grid power Electricity from the Reliable and widely Power outages can
connection national grid available disrupt operations
Diesel generator Provides backup Ensures continuous High fuel costs
power operations
Solar + battery Uses solar panels Reduces electricity Expensive initial
storage with battery backup costs investment

Recommended Technology:
Primary Power Source: Grid power with redundant transformers.
Backup: Diesel generators with automatic switching during outages.
Renewable Integration: Solar panels to reduce energy costs and carbon footprint.

. Table 5. 14: Summary of Recommended Utilities and Technologies

Utility Recommended Justification
Technology
Steam System Water-tube boilers High efficiency, quick
steam production.
Water Treatment Reverse osmosis + sand Ensures high- quality
filtration process water
Wastewater Treatment DAF + anaerobic digestion Removes contaminants,
recovers energy.
Refrigeration Ammonia refrigeration + Energy -efficient cost-
blast freezers effective
Compressed Air Screw compressors Reliable low maintenance
Power Supply Grid + Diesel Generators + Ensure uninterrupted
solar power and sustainably

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A well-integrated utility system is essential for the efficient, sustainable, and cost-
effective operation of the integrated abattoir and meat processing plant. The
recommended technologies focus on energy efficiency, automation, reliability, and
environmental compliance. By implementing these systems, the plant can achieve high
operational efficiency, lower costs, and minimal environmental impact.

5.1.8. Conclusion on Technology Selection

Selecting the right technology for an integrated abattoir and meat processing plant is
critical to ensuring efficiency, product quality, and sustainability. The chosen
technologies must align with production capacity, hygiene standards, energy efficiency,
and environmental regulations. After evaluating various alternatives for slaughtering,
meat processing, offal processing, gelatin production, rendering, utilities, and
refrigeration, the most cost-effective and high-performance solutions have been
recommended.
The selection process prioritized automated and semi-automated systems to improve
processing speed, reduce labor dependency, and enhance hygiene. For slaughter lines,
pneumatic and hydraulic stunning, overhead conveyor systems, and automated
evisceration equipment were chosen to ensure smooth and standardized operations.
Blast freezing, vacuum packaging, and ammonia-based refrigeration were selected for
meat preservation due to their energy efficiency and ability to maintain product integrity.
Similarly, advanced wastewater treatment systems, biomass boilers, and solar-
integrated power solutions were recommended to minimize waste, lower operating
costs, and reduce environmental impact.
In addition to efficiency and sustainability, equipment reliability and ease of
maintenance were key considerations. Technologies such as water-tube boilers, screw
compressors, and high-efficiency rendering systems were chosen based on their
durability, low maintenance requirements, and long-term cost-effectiveness. The
integration of reverse osmosis for water treatment, DAF for wastewater management,
and anaerobic digestion for organic waste conversion further strengthens the plant’s
environmental compliance.

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Overall, the recommended technologies strike a balance between operational efficiency,

cost optimization, product quality, and environmental responsibility. Implementing these
advanced solutions will ensure that the facility operates at peak performance, meets
international standards, and remains competitive in the global market.

5.2. PROCESS DESCRIPTION and PROCESS FLOW DIAGRAMS FOR AN

INTEGRATED ABATTIOR PLANT
The process description and flow of the selected technologies outline the step-by-step
transformation of raw materials into high-value products across various integrated
operations. Each process is designed to optimize efficiency, ensure product quality, and
comply with food safety and environmental standards. The rendering plant converts
slaughter by-products into Refined, Bleached, and Deodorized (RBD) tallow and Meat &
Bone Meal (MBM), while the gelatin and hard capsule facility extracts and refines
collagen from hides and skins. Additionally, the red and green offal processing line
ensures proper cleaning, preservation, and packaging for export markets.
The slaughter lines for cattle and sheep and goat are structured for hygienic and
systematic processing, incorporating stunning, bleeding, skinning, evisceration, and
carcass chilling to maintain meat quality. Boiled meat production utilizes precise
cooking, cooling, and packaging technologies to ensure food safety, while the deboning
and blast-freezing process preserves meat for extended storage. Each operation follows
a structured process flow, integrating mechanized handling, automated control systems,
and quality assurance measures to enhance productivity and minimize waste.
These interconnected processes are supported by a centralized utility system, ensuring
a reliable supply of steam, water, refrigeration, and wastewater treatment. The selection
of advanced machinery and optimized process flows guarantees sustainable operations
with minimal environmental impact. The recommended technologies ensure that each
stage, from raw material intake to final product packaging, is performed with maximum
efficiency, hygiene, and safety standards, making the facility globally competitive.

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5.2.1. Process Description and Process Flow Diagram for Cattle and Sheep &
Goat Slaughter Lines
The integrated slaughterhouse is designed to process 1,000 cattle and 2,000 sheep and
goats per day, operating under both Halal and Common slaughter methods. The
slaughter lines incorporate modern restraining, stunning, bleeding, and evisceration
systems, ensuring efficiency, hygiene, animal welfare, and compliance with international
standards.

The detail slaughtering process involves receiving and holding, ante-mortem inspection,
restraining and stunning, bleeding, skinning(de-hiding), head and feet removal,
Evisceration, splitting, pre-chilling and processing, each of these process steps shall be
briefly described hereunder.
a) Livestock Reception & Holding
The livestock will be unloaded from truck using properly designed rump, inspected by
veterinarians for health condition doctors and rested in a lairage before they are
slaughtered. This period of rest is crucial for primarily to reduce the stress levels of the
animals and to ensure the quality of the meat. During this time, the livestock have the
opportunity to recover from the stress of transportation and to allow muscle glycogen to
convert into lactic acid, which acts as a natural preservative for the meat. To achieve
these benefits, lairage facilities must meet specific requirements, including adequate
space, access to water, proper ventilation, and hygiene.
b) Ante-Mortem Inspection
The received livestock will be checked by veterinarians for their general health and well-
being of the animals. The goal is to identify any diseases or conditions that could affect
the quality of the meat or pose a risk to human health. The examination includes
observing the animal’s gait, behavior, physical abnormalities, and symptoms of
diseases like rabies, anthrax, and tuberculosis. Any unfit animals are segregated for
further examination.
c) Restraining & Stunning
The envisaged slaughterhouse is equipped with two methods of slaughtering methods,
one for halal and the other for general/common method. Livestock for the halal method

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are restrained in a hydraulic restraining box that limits their physical movement and
position them correctly for manual slaughter by a trained halal butcher.
In case of the common method livestock are restrained in a hydraulic restraining box
that limits physical movement and position them correctly and stunned using a captive
bolt pistol to render them unconscious before slaughter to ensure a humane end with no
pain. Stunning also results in decreased stress of the animal and superior meat quality.
Restraining and stunning of sheep and goats vary depending on whether the method is
conventional or halal. In common (non-halal) methods, animals are usually restrained in
a standing or lying position using manual holds or mechanical restraining boxes to
ensure safety and minimize movement. Stunning is then performed electrically to render
the animal unconscious before slaughter, so stunning is either avoided or applied in a
reversible manner, such as low-voltage electrical stunning that temporarily stuns the
animal without causing death, ensuring humane handling and compliance with animal
welfare standards. In halal slaughter, the animal must be alive and healthy at the time of
slaughter. The animal is restrained gently, usually in an upright position facing the Qibla
(Mecca), and the slaughter is performed by a trained Muslim who recites the
appropriate prayer ("Bismillah, Allahu Akbar") while making a swift, deep cut to the
throat.
d) Bleeding
The livestock in the restraint box and positioned correctly, in the case of halal
slaughtering, is deep incision in the throat, cutting the jugular veins, carotid arteries, and
trachea while reciting a religious invocation by a trained halal butcher
The unconscious livestock in case of common slaughter is suspended upside down,
and an automatic bleeding knife or manual knife cut is used to sever the major blood
vessels.
The blood will be collected in a hygienic drainage system for blood meal processing.
e) Skinning (De-hiding)
The carcass moves to a hydraulic de-hiding machine, which removes the hide efficiently
while preventing contamination. The hide is conveyed to the hide processing unit for
further treatment. Skinning Machines (Falling Hide Puller) remove the pelt efficiently
without contamination.

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f) Head & Feet Removal

The head is removed from the de-skinned carcass using an automated head cutter and
sent for inspection and processing. Then feet are removed from the carcass using
hydraulic cutters and sent for processing or export.
g) Evisceration
The abdominal cavity of head and leg removed carcass shall be opened, and edible and
non-edible internal organs are carefully extracted to prevent contamination of the meat
on a specialized evisceration table using a semi-automated evisceration system with
vacuum gut. The red offal (liver, heart, kidney) and green offal (intestines, stomach) will
then be inspected for any signs of disease or abnormalities and transferred to their
respective processing area.

h) Carcass Splitting & Inspection

The carcass with the internal organs removed will be split into two halves using
hydraulic or pneumatic splitting saw for easier handling and further processing.
Veterinary inspectors conduct post-mortem inspection before approval for further
processing.

i) Carcass Washing
The carcass will be thoroughly cleaned to remove any remaining dirt, blood, or
contaminants by washing with pressurized water spray and transferred to pre-chilling
rooms (4°C) for 24 hours.

j) Chilling and Cold Storage

The washed carcass will undergo blast chilling by using high-velocity cold air for rapid
cooling, reducing bacterial growth.and stored in cold room until it is either dispatched to
local market or further processed into boiled and deboned meat for export market.

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Process Flow:
Cattle Slaughter Process Flow: -

Livestock Holding Pens Ante-Mortem Restraint &

Reception Inspection Stunning
(Halal:
Restraining Box
| Common:
Dehiding Machine Slaughter & Bleeding Captive Bolt)

Head & Feet Evisceration & Carcass Splitting Veterinary

Removal Offal Processing & Washing Inspection

Storage (-18°C) Blast Freezing (- Cutting & Pre-Chilling (4°C)

40°C) Packaging

Dispatch

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Sheep & Goat Slaughter Process Flow: -

Livestock Holding Pens Ante-Mortem Restraint &

Reception Inspection Stunning
(Halal: Manual
| Common:
Electrical
Skinning Machine Slaughter & Bleeding Stunning)

Head & Feet Evisceration & Carcass Splitting Veterinary

Removal Offal Processing & Washing Inspection

Storage (-18°C) Blast Freezing Cutting & Pre-Chilling (4°C)

(-40°C) Packaging

Dispatch

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Figure 5. 1: PROCESS FLOW DIAGRAM OF INTEGRATED SLAUGHTERHOUSE

Livestock

Water and Feed Livestock Reception and Holding

Restraining and Stunning

Bleeding Blood to blood

meal processing
Hide and Skin to
Skinning/De-hiding
gelatin and Hard
Removal
Capsule production

Head and Leg removal Head and Leg

processing

Red and green offal to

Evisceration and inspection
their processing area

Splitting

Clean Water Carcass Washing

Pre-cooling (4˚c)

Chilling (-40˚c) and cold storage (-18˚c)

Fresh Carcass to blast

Fresh Carcass A Fresh Carcass to
cooled meat B
Dispatch for boiled meat
Processing
Local Market Processing

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5.2.2. Process Description: Deboning and Blast-Freezing of Cattle Carcasses

Production
As mention above, the deboning and blast-freezing process is a crucial step in meat
processing, ensuring that high-quality, vacuum-packed frozen meat products are
produced for both domestic and export markets. This facility is designed to process 250
cattle carcasses per day, utilizing efficient deboning, portioning, vacuum packing, and
blast freezing technologies to maintain product quality and extend shelf life.
The production of deboned, vacuum packed and frozen meat production process
involves carcass reception and pre-chilling, deboning and meat processing, portioning
and grading, packaging, and freezing.

The process description of each of these process steps is given hereunder.

a) Carcass Reception & Pre-Chilling

After slaughter and primary processing, carcasses are transferred to pre-chilling rooms
at 4°C for 12 to 24 hours to allow for rigor mortis resolution, which improves meat
texture and handling during deboning.

b) Deboning & Meat Processing

Chilled carcasses are transported to the deboning hall using overhead rail systems.
Carcass are split in half and further divided into forequarters and hindquarters using
hydraulic carcass saws.

Bones from muscle tissue is efficiently removed by butchers using deboning tables
equipped with stainless steel conveyor belts. Different meat cuts (primal cuts, sub-
primal cuts, and trimmings) are separated based on customer specifications.

Fat trimming and sinew removal are performed to ensure premium meat quality.

c) Portioning & Grading

Meat is graded based on fat content, colour, and texture. The graded meat shall cut into
standardized cuts for specific markets (steaks, fillets, cubes, ground meat, etc.) by
portioning machines.

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d) Vacuum Packing & Sealing

Portion-sized meat cuts are weighed and placed in plastic bags under vacuum to
remove air to prevent oxidation, freezer burn, and bacterial growth. The under vacuum
filled meat will then be sealed and labeled.

e) Blast Freezing & Storage

Vacuum-packed meat products are loaded onto stainless steel trays and placed into a
blast freezer at -40°C. Powerful air circulation rapidly freezes the products, locking in
freshness and preventing ice crystal formation. Once frozen, meat products are
transferred to cold storage rooms at -18°C for long-term storage. Final products are
stacked onto pallets, inspected for quality, and prepared for domestic or export
shipment.

Process Flow: Deboning & Blast-Freezing:

Carcass Pre-Chilling (4°C) Splitting & Deboning &

Reception Quartering Trimming

Frozen Storage (- Blast Freezing Vacuum Packing & Portioning &

18°C) (-40°C) Sealing Grading

Dispatch &
Distribution

The process flow diagram for deboned and frozen meat is given in Figure 5.2.

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Figure 5. 2: PROCESS FLOW DIAGRAM FOR DEBONED AND FROZEN MEAT

PRODUCTION

Carcass

Carcass Reception and Pre-chilling (4°C)

Deboning and meat processing

Portioning and grading

Vacuum Packaging,
sealing and labelling

Blast freezing and storage

Vacuum Packed,
Deboned and
Frozen Meat

5.2.3. Process Description and Process flow diagram of Boiled Meat

Production
Boiled meat production is an essential food processing operation designed to efficiently
convert raw beef into safe, high-quality, ready-to-use cooked meat products. The
process involves carefully controlled cooking, pressing, cooling, and packaging steps to
ensure consistency, hygiene, and extended shelf life. The system must comply with
international food safety regulations, including HACCP (Hazard Analysis and Critical
Control Points), to prevent contamination and maintain nutritional value. Additionally,

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the facility is designed to handle 250 cattle carcasses per day, meeting the demands of
both local and international markets.

The processing begins with receiving pre-selected meat cuts from slaughtered and
chilled carcasses. These cuts are carefully deboned and portioned into standardized
sizes before being transferred to industrial boiling kettles or continuous cooking
systems. Cooking is performed under precise temperature and time controls, ensuring
the meat retains its natural texture, tenderness, and flavor while being fully sterilized.
The use of high-capacity automated boiling systems ensures efficiency and consistency
in large-scale production.

Once cooking is completed, the meat undergoes pressing to remove excess moisture
and fat, improving the texture and enhancing its usability in various food products. This
stage also allows for the recovery of nutrient-rich broth, which can be utilized as a
byproduct in soups, sauces, or other food applications. After pressing, the meat is
rapidly cooled using blast chillers or cooling tunnels to prevent microbial growth and
preserve product quality. The rapid cooling process is critical to maintaining the integrity
of the meat while ensuring compliance with food safety and export standards.

Finally, the boiled meat is portioned and vacuum-packed or modified atmosphere

packaged (MAP) to extend shelf life and maintain freshness. Proper packaging protects
the product from contamination while facilitating storage and transportation. The packed
meat is stored in cold storage units (-18°C to -25°C) before being distributed to markets.
The entire process is fully automated, ensuring high productivity, minimal human
intervention, and adherence to hygienic processing requirements.

The production of boiled meat involves carcass reception & cutting, Cooking and
sterilization, pressing & liquid extraction, cooling & chilling and packaging & storage.
The process description of each of the process steps is briefly described hereunder.

a) Carcass Reception and Meat Cutting

After slaughter and chilling, pre-selected meat cuts (such as forequarters, hindquarters,
and trimmings) are transported to the boiled meat processing unit.

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Meat is deboned and cut into appropriate sizes for cooking, ensuring uniformity and
efficient heat transfer.

Non-meat parts such as bones, connective tissues, and excess fat are separated and
directed to the rendering plant for byproduct utilization.

b) Cooking and Sterilization

The meat pieces are loaded into large-capacity industrial boiling kettles or continuous
cooking tanks.

Steam or hot water is used to cook the meat at a controlled temperature of 90–100°C
for a predetermined time (typically 1.5 to 3 hours) to achieve proper texture, taste, and
microbial safety.

Automatic temperature monitors and agitation systems ensure even cooking while
preventing overcooking.

In halal processing, no non-halal additives are used, ensuring compliance with religious
dietary requirements.

c) Pressing and Liquid Extraction

After cooking, the meat is transferred to hydraulic or mechanical pressing units, where
excess water and fat are removed.

The extracted liquid (broth) can be filtered, concentrated, and packaged separately as a
value-added product or used in other food processing applications.

d) Cooling and Chilling

The pressed meat is then conveyed to rapid cooling tunnels or blast chillers to bring the
temperature down to below 4°C within a short time to preserve texture and freshness.

Proper cooling prevents microbial growth and ensures compliance with food safety
regulations.

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e) Packaging and Storage

The cooled meat is portioned and packed using vacuum-sealing or modified
atmosphere packaging (MAP) to extend shelf life.

Packages are labelled, weighed, and stored in cold storage units (-18°C to -25°C)
before distribution.

For export markets, packaging meets international shipping and food safety standards.

Process Flow Diagram for Boiled Meat Production: -

Carcass Cooking in Pressing & Cooling &

Reception & Boiling Liquid Chilling
Cutting Kettles Extraction

Packaging & Storage (Deboning & Meat

Selection)

The process flow diagram of boiled meat production is given in Figure 5.3.

Figure 5. 3: PROCESS FLOW DIAGRAM FOR BOILED MEAT PRODUCTION

Carcass

Carcass Reception and Meat Cutting

Cooking and Sterilization

Pressing and Liquid extraction

Cooling and Chilling

Packaging and storage

Boiled Meat for export market

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5.2.4. Process Description and Process Flow Diagram – Continuous Dry

Rendering Plant for RBD Tallow and Meat & Bone Meal (MBM)
Production
The Continuous Dry Rendering Process is a modern and highly efficient technology
designed for processing slaughter by-products into Refined, Bleached, and Deodorized
(RBD) Tallow and Meat & Bone Meal (MBM). This process is particularly suited for
large-scale operations, such as an integrated abattoir, where the goal is to maximize
resource utilization while minimizing waste and environmental impact. Unlike traditional
wet rendering, which requires large amounts of steam and water, the dry rendering
process operates with indirect heat, reducing water consumption, energy costs, and
overall processing time. This method ensures higher fat recovery, improved product
quality, and enhanced operational efficiency, making it the preferred choice for modern
meat processing plants.

By using continuous cookers, fat separators, drying units, and advanced odor control
systems, the selected Continuous Dry Rendering Plant ensures a streamlined process
with automated material handling and optimized temperature control. The process
efficiently converts inedible fats, bones, and offal into valuable by-products, which are
then used in industries such as animal feed, soap manufacturing, and biofuels. With
integrated environmental management features, such as odor reduction systems and
wastewater treatment, this technology aligns with sustainability goals and international
food safety standards.

The production process of rendering plant involves raw material reception, pre-breaking
& crushing, cooking, fat separation & recovery, pressing & residual fat extraction,
drying, grinding & MBM production, tallow refining & storage, and product packaging &
dispatch. The detail process description of rendering plant is described briefly
hereunder.

a) Raw Material Reception & Pre-Breaking

Collected raw materials (bones, fat trimmings, inedible meat, offal) are transported via
screw conveyors from the slaughterhouse. Pre-breakers or crushers reduce large
materials into smaller, uniform sizes for efficient processing.

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Foreign materials (metals, plastics) are removed using magnets and metal
detectors.

b) Continuous Cooking (Dry Rendering)

The pre-broken material enters a continuous dry rendering cooker where indirect heat
(130°C - 150°C) evaporates moisture and releases fat.

The system uses agitated heating to ensure even cooking while preventing burning or
degradation.

c) Fat Separation & Recovery

The cooked material is transferred to a fat separation system (presses or decanters)
where melted tallow is extracted from solid residues.

The separated fat is filtered and clarified before being sent for further refining into RBD
Tallow.

d) Pressing & Residual Fat Extraction

The remaining solid material (greaves) is mechanically pressed using a twin-screw or
expeller press to remove residual fat.

The extracted fat is combined with the previously recovered tallow for refining.

e) Drying & Moisture Removal

The pressed solids are sent to a rotary or disc dryer, where residual moisture is reduced
to around 6-8%, ensuring long shelf life for MBM.

f) Grinding & MBM Production

The dried material is ground in a hammer mill to produce Meat & Bone Meal (MBM) with
a uniform particle size.

g) Tallow Refining (RBD Tallow Production)

The recovered tallow undergoes degumming, bleaching, deodorization, and filtration to
remove impurities.

The refined RBD Tallow is stored in heated tanks and packaged for commercial use.

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h) Product Storage & Packaging

MBM is stored in silos or packaged in 25-50 kg bags for animal feed or industrial
applications.

RBD Tallow is stored in temperature-controlled tanks for soap, cosmetics, or biofuel

production.

i) Odor Control & Environmental Management

A bio filter, wet scrubber, or thermal oxidizer captures and neutralizes processing odors.
Wastewater from cleaning and fat separation is treated in a dedicated wastewater
treatment plant.

Process Flow: - Continuous Dry Rendering Plant for RBD Tallow & MBM
Production

Raw Material Pre-Breaking & Continuous Fat Separation

Reception Crushing Cooking & Recovery

Pressing &
Tallow Refining & Grinding & MBM Drying & Moisture
Residual Fat
Storage Production Removal
Extraction

Product Odor Control &

Packaging & Wastewater
Dispatch Treatment

The process flow diagram of rendering plant is given in Figure 5.4.

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Figure 5. 4: PROCESS FLOW DIAGRAM FOR RENDERING PLANT

Bone, meat and Fat

Pre-breaking and Crushing

Cooking

Fat Separation and Recovery

Tallow Refining Drying

Meat &
RBD Grinding and Bone
Packaging and
Tallow Packaging of Meal
storage RBD
MBM Production
Tallow

5.2.5. Process Description and Process flow diagram of Blood Processing

Plant for Blood Meal Production
The Blood Processing Plant is designed to efficiently handle and process the blood
generated from 1,000 cattle and 2,000 sheep & goat per day, converting it into high-
protein blood meal for use in animal feed and other industries. The continuous drying
system ensures efficient moisture removal, while sterilization equipment guarantees
pathogen-free output. The plant is equipped with automated material handling, filtration,
coagulation, drying, milling, and packaging systems, ensuring hygienic and efficient
processing.

The process begins with blood collection from the slaughter line, followed by
coagulation and separation of plasma and solids. The coagulated blood is then steam-
heated to kill pathogens, after which it is passed through a decanter or centrifuge to

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remove excess moisture. The dried blood cake is then milled into a fine blood meal. The
final product is screened for uniformity, cooled, and packed into moisture-resistant bags
for storage and distribution. The system incorporates odor control measures and waste
treatment units to ensure compliance with environmental standards.

The process involves collection, coagulation, separation, drying, milling, cooling, and
packaging to ensure a pathogen-free, long-lasting, and high-quality product.

a) Blood Collection and Filtration

Fresh blood is collected from bleeding troughs in the slaughterhouse and transported
through stainless steel pipelines into a storage tank equipped with an agitator to prevent
clotting. The blood is filtered to remove foreign materials such as hair, bone fragments,
and dirt before further processing.

b) Coagulation and Separation

The blood is coagulated by steam heating or the addition of coagulants, causing plasma
and solids to separate. The coagulated blood enters a decanting centrifuge or screw
press, which removes excess water, leaving a semi-solid blood cake. The extracted
liquid is processed further to recover additional proteins before disposal.

c) Drying
The semi-solid blood cake is transferred to a continuous or batch dryer. The
recommended drying technologies include:

• Drum Dryers: Rotating drums heat and dry the blood cake while ensuring uniform
moisture removal.
• Spray Dryers: Blood is atomized into small droplets and dried instantly using hot
air, producing a fine powder.
• Ring Dryers or Flash Dryers: Utilize hot air in a high-speed drying chamber for
quick moisture removal.
The drying process is carefully controlled to prevent protein degradation while achieving
the desired moisture content (usually below 10%).

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d) Milling and Grinding

The dried blood is then passed through hammer mills or pulverizers to create a fine,
uniform meal with enhanced digestibility. A screening system ensures that the final
particle size meets industry standards.

e) Cooling and Packaging

The fine blood meal is cooled using forced air to prevent overheating and packed into
moisture-resistant bags to maintain quality. Proper storage conditions ensure that the
protein content remains stable, preventing microbial growth and spoilage.

f) Waste Treatment and Odor Control

To ensure environmental compliance, the plant incorporates:

• Air scrubbers and bio filters to control odors.

• Effluent treatment systems for liquid waste.
• Heat recovery systems to maximize energy efficiency.
This fully automated and hygienic process ensures that blood meal production is
efficient, sustainable, and compliant with international safety and environmental
standards.

Process Flow Diagram: Blood Meal Production

Coagulation
Slaughterhouse Storage Tanks Filtration (Heat or
Blood Collection (Agitation) Chemicals)

Drying Separation
Cooling Milling & Grinding
(Drum/Spray/Ring (Decanter
Dryer) Centrifuge/Screw
Press)

Packaging & Waste Treatment

Storage & Odor Control

The process flow diagram of blood meal production is given in figure 5.5.

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Figure 5. 5: PROCESS FLOW DIAGRAM FOR BLOOD MEAL PRODUCTION

Blood

Filtration

Coagulation

Water
Centrifuging/Screw Pressing

Drying

Milling and Grinding

Packaging and storage

Blood Meal

5.2.6. Process Description and flow diagram of Gelatine and Hard Capsule
Manufacturing from Hide and Skin
Gelatin and hard capsule manufacturing from hide and skin is a highly specialized
process that transforms collagen-rich raw materials into pharmaceutical and food-grade
products. The selected technology ensures maximum efficiency, high purity, and
compliance with international quality standards. This process involves multiple stages,
including pre-treatment, extraction, purification, drying, and capsule molding, all
designed to optimize yield while maintaining product consistency. The use of advanced
automation and precise environmental controls helps enhance production efficiency,
minimize waste, and ensure a sustainable operation.
The manufacturing process starts with the pre-treatment of cattle hides and skins,
where unwanted materials such as fat, hair, and non-collagenous proteins are removed.

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This is followed by controlled extraction, where collagen is dissolved and purified into
gelatin. The gelatin is then dried, processed into powder, and used for various
applications, including the production of hard capsules. In the final stage, the gelatin is
molded into capsule shells through dipping, drying, and trimming processes. The
selected technology incorporates modern filtration, vacuum concentration, and
automated capsule-forming equipment to maintain strict quality control, ensuring the
final product meets pharmaceutical and dietary supplement industry requirements,
followed by the production of hard capsules using specialized molding and drying
techniques.
As summary the gelatine production process involves collecting raw hide & skin,
washing & cleaning, alkali treatment (lime soaking), neutralization, enzymatic extraction,
filtration & purification, vacuum concentration, drying & milling (gelatine powder),
gelatine melting, moulding & pin dipping, drying & trimming, polishing & inspection and
packaging & storage. The gelatine and hard capsule production process described
briefly hereunder.
a) Pre-Treatment & Conditioning
Fresh or preserved cattle hides and skins are washed to remove dirt, fats, and
unwanted proteins.
Skins are soaked in a lime solution (alkali treatment) to break down non-collagenous
proteins and remove hair.
The treated skins are washed and neutralized using acid (hydrochloric or sulfuric acid)
to adjust pH.
b) Gelatine Extraction
After pre-treatment, the hides and skins are subjected to controlled enzymatic
hydrolysis. Specific proteolytic enzymes such as trypsin, papain, or microbial enzymes
are used to selectively break down collagen fibers into soluble gelatine. This process is
conducted under optimized pH and temperature conditions to maximize yield and
maintain gel strength. The enzymatic hydrolysis step is closely monitored to prevent
over-degradation, which could affect the functional properties of the gelatine. The liquid
gelatine is passed through filters, separators, and activated carbon to remove impurities
and decolorize.

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c) Concentration & Drying

The gelatine solution is concentrated using vacuum evaporators to remove excess
water.

The concentrated gelatine is dried in gelatine dryers, ground into powder, and classified
based on viscosity and bloom strength.

d) Hard Capsule Production

The gelatine powder is rehydrated and melted. It is then molded into capsule halves
using pin-dipping technology in stainless steel molds.

The capsules are dried in controlled humidity chambers and trimmed to precise sizes.

Capsules are polished, sorted for defects, and packaged for pharmaceutical or dietary
supplement use.
Process Flow Diagram: Gelatin and Hard Capsule Manufacturing

Raw Hide & Skin Washing & Alkali Treatment Neutralization

Cleaning (Lime Soaking)

Drying &
Filtration & Enzymatic
Milling Vacuum
Purification Extraction
(gelatin Concentration
Powder)

Molding & Pin Polishing &

gelatin Melting Drying & Trimming
Dipping Inspection

Packaging &
Storage

The gelatine and hard capsule production flow diagrams are given in Figure 5.6.

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Figure 5. 6: PROCESS FLOW DIAGRAM FOR GELATINE AND HARD CAPSULE

PRODUCTION

Hides and Skins

water Waste Water

Washing and Cleaning

Lime Lime Soaking

Acid
Neutralization

Filtration and Purification

Vacuum Concentration

Drying and Milling

Gelatine Powder

Melting Gelatine

Moulding and Pin Dipping

Drying and Trimming

Polishing and Inspection

Packaging and Storage

Hard
Capsule

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5.2.7. Process Description and process flow diagram of Red and Green offal
Processing for Export Markets
The processing of red and green offal is a crucial part of the slaughterhouse operation,
ensuring full utilization of animal by-products while meeting hygiene, safety, and export
quality standards. The offal processing line handles red offal (such as liver, heart, and
lungs) and green offal (stomach, intestines, and other digestive organs) separately due
to differences in processing methods and contamination risks. The facility includes
washing, trimming, chilling, freezing, and packaging units to maintain product quality for
international markets.
The red and green offal from the evisceration operation shall be cleaned and packed for
export market. The red offal production process involves receiving, sorting & initial
inspection, washing, trimming & cutting, chilling, freezing (-40°C), packaging and
storage (-18°C) while the green offal processing involves receiving, sorting & initial
inspection, emptying & rinsing, washing & sterilization, scalding & scrubbing, chilling,
freezing (-40°C), packaging, and storage (-18°C).
The process description of offal processing is briefly given hereunder.
a) Reception and Sorting
After evisceration, the red and green offal are carefully separated and transferred to
dedicated processing areas. Each type of offal undergoes an initial inspection to remove
any unsuitable material before further processing.

b) Cleaning and Washing

The liver, heart, kidneys, and lungs are thoroughly washed with chilled water to remove
blood and impurities. Additional trimming may be required to eliminate damaged parts.

The stomach and intestines are first emptied and rinsed. They are then washed with
warm water, followed by sterilization using mild alkali or acid solutions to remove any
remaining contaminants.

c) Further Processing
The red offal is cut into export-standard portions, ensuring they meet required weight
and size specifications. They may also be pre-treated with brine or preservatives to
enhance shelf life. The stomach lining (tripe) is further processed by scalding and

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scrubbing to remove mucosal layers, making it suitable for export. The intestines may
be salted and dried for use in sausage casings.

d) Chilling and Freezing

The cleaned and processed offal is transferred to rapid chilling rooms to lower its
temperature before freezing. Freezing is done in blast freezers at -40°C to ensure long-
term storage stability, with final storage at -18°C before shipment.

e) Packaging and Quality Control

Once frozen, the offal is packaged into vacuum-sealed or polyethylene-wrapped
containers. Each package is labeled with traceability details, including batch number,
origin, and processing date. The final products undergo quality inspection to ensure
compliance with export regulations before being stored for shipment.
The red and green offal production flow diagram is given in Figure 5.7 and 5.8
respectively.

Process Flow of Offal Processing

❖ Red Offal Processing Flow:
❖
Evisceration Sorting & Initial Washing Trimming & Chilling
❖ Inspection Cutting

Export Storage Packaging Freezing

(-18°C) (-40°C)

❖ Green Offal Processing Flow:

❖
Evisceration Sorting & Initial Emptying & Washing & Scalding
❖ Inspection Sterilization &
Rinsing
Scrubbing

Export Storage Packaging Freezing (- Chilling

(-18°C) 40°C)

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Figure 5. 7: PROCESS FLOW DIAGRAM FOR RED OFFAL PRODUCTION

Red Offal from Evisceration

Sorting and Initial Inspection

Washing

Trimming and Cutting

Chilling and Freezing (-40°C)

Packaging and Storage (-

40°C)

Packed Red Offal

for export Market

Figure 5. 8: PROCESS FLOW DIAGRAM FOR GREEN OFFAL PRODUCTION

Green Offal from

Evisceration

Sorting and Initial Inspection

Emptying and Rinsing

Washing and Sterilization

Scalding and Scrubbing

Chilling and Freezing Packed

Green Offal
for export
Packaging and Storage
Market

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5.3. Environmental Impact Assessment and Mitigation Measures

The activities of the integrated cattle and shoat slaughterhouses and meat processing
plant include:
• Receiving area for live animals prior to slaughter;
• Retention area (12-24 hrs) for animals prior to slaughter, sometimes referred to
as lairage;
• Stunning and killing of animals - methods include applying direct blow by a club
or poleaxe, slaughtering mask, captive-bolt pistols or electrical stunning;
• Bleeding of animals - the objective is to kill the animal with minimal damage to
the carcass and to quickly remove as much blood as possible;
• Hide/skin removal and treatment;
• Evisceration (removal of internal organs);
• Carcass dressing and washing;
• Handling and transport of carcasses and meat;
• Casings (intestinal tract) and edible offal separation;
• Refrigeration and/or frozen storage;
• Rendering of inedible products, e.g. bone, fat, heads, hair, and condemned offal
into animal feed and tallow.
• Red and green offal processing
• Meat processing (boiled meat and deboned and chilled meat)
• Gelatine and hard capsule production
The environmental impacts associated with the above activities of the slaughter house
are solid waste, liquid wastes, and air pollution. The source and mitigation measures for
the adverse impacts in the above categories has been discussed briefly hereunder.

5.3.1. Source of and associated Environmental Impacts

a) Solid waste
The sources of solid wastes associated with the operation of the slaughter house and
meat processing are given in Table 5.15. Apart from the target product (meat), the
slaughter house generates various edible and inedible by-products like organs, bone,

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meat trimmings, hides and skin, head, feet, horn, stomach and intestinal content,
manure etc. These are rich in organic matter; if these are not utilized properly and
disposed of without any treatment, they create environmental pollution and spread of
diseases. The solid wastes will cause soil, water and air pollution and health impact to
the workers and surrounding community. Solid wastes also lead to economic loss for
the meat processor.

Table 5. 15: Sources of solid wastes in a slaughterhouse

S/N Activity Solid waste

1 Animal holding Fodder waste, dung
2 Slaughter hall Blood clots
3 Hide / skin removal Hair and dirt
4 Internal organ Stomach and intestinal
cleaning content
5 Carcass dressing Meat trimmings, fat,
grease

6 By-product plant Grease and offal

Odor is a serious problem for slaughterhouses if the solid wastes are not managed
properly, particularly when the slaughterhouse is located near a residential area or in a
hot climate.

b) Liquid Waste
The slaughter house consumes about 2500 – 3000 m3 of water/day. All the water
consuming activities in the livestock holding, slaughterhouse, meat processing plant,
rendering plant and gelatine and card capsule production plant generate huge quantities
of wastewater. The sources of liquid wastes associated with the operation of the
slaughter house and meat processing are given in Table 5.16.

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Table 5. 16: Sources of Liquid wastes in a slaughterhouse

S/N Activity Liquid waste

1 Animal holding Floor washing, urine
2 Slaughter hall Blood, floor, and machine washing
3 Internal organ Wash liquor
cleaning
4 Carcass dressing Blood, floor, and machine washing
5 By-product plant Floor, machine washing, glue
water

Wastewater gets mixed with various organic and inorganic materials like manure, urine,
blood, fat, stomach and intestinal contents, cleaning agent, chemicals, packaging
material etc. from different areas. The key indicators of wastewater quality are the
quantity of solid waste, Biochemical Oxygen Demand (BOD), Chemical Oxygen
Demand (COD), Total Suspended Solids (TSS) and to some extent nitrogen and
phosphorus (CPCB, 2017). The quality and quantity of effluent vary widely depending
upon the scale and types of operation, types of animals, the efficiency of byproduct
recovery and cleaning processes etc. The huge quantity of effluent generated in the
meat industry has high protein, fat and grease with a BOD level of 1500-2000 mg/L .
Blood has a high potential to increase the BOD level in the effluent, and the mixing of
stomach and intestine contents in wastewater leads to a high level of TSS.
Effluent produced during the slaughtering process may generate pollution problems due
to the high content of animal fat, manure, blood, and any cleaning detergents.
Table 5. 17: Typical characteristics of slaughterhouse effluent

S/N Parameters Raw effluent

1 pH 7.6-8.2
2 BOD 1200-4000 mg/L
3 COD 3000-7000 mg/L
4 TSS 1500-4500 mg/L

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These liquid wastes to be generated at different points of the production process unless
properly collected and treated before disposal cause soil, water and air pollution and
health impact to the workers and surrounding community.

Odor can be a serious problem for slaughterhouses associated with the waste water
generated if not properly treated.

c) Air Pollution
Various gases (CO2 , CO, NO2 , SO2 , CFCs, NH3 , etc.) are also emitted from
different activities in the slaughter house and meat industry, like, heating of water for hot
water and steam, evaporation of chilling liquid, stripping of freezing machine, and
smoking of meat products.
The main sources of atmospheric odor are:
• Overloaded effluent treatment systems;
• Untreated effluent;
• Animal wastes (skin, hides, hooves), unprocessed material and any other solid
waste;
• Odor from offal storage, rendering, and effluent.
All these lead to air pollution and obnoxious odour. Decomposition of highly perishable
offal also results in foul smell.
Slaughterhouses rely heavily on chilling facilities to preserve the products. The
refrigerants used may be ozone depleting chemicals, such as Chlorofluorocarbons
(CFCs) and Hydro chlorofluorocarbons (HCFCs), the production of which are being
phased out under the Montreal Protocol. Releases of these types of refrigerant gases
should be avoided. Ammonia is becoming a more commonly used alternative
refrigerant, which has no such restriction but does have health and safety issues.

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5.3.2. Mitigation Measures

Generally, to mitigate the above adverse impacts of the integrated slaughter and meat
processing plant it is required to convert the by products into usable high value products
with the objective of increasing the profitability of the plant and minimizing the amount of
waste generation. In addition, it will help to reduces the treatment cost. The possible
utilization of the by products of the slaughter house is given in Figure 5.9.
Figure 5. 9: KEY ACTIVITIES OF SLAUGHTERHOUSE AND UTILIZATION OF BY
PRODUCTS

Cattle and Shoat

Livestock reception Biogas Generation

and Truck washing
Manure

Stunning and Bleeding Blood Meal

Gelatine and Hard

Dehairing/ Capsule production
dressing
and
hide/skin Rendering
Heads and Hoofs
removal
Edible red and green Offal
Offal Processing
Evisceration

Rendering

Biogas
generation

Chilling
Composting/
biogas generation
Cutting
and Bones, fat and trimming
Rendering
deboning

Meat
processing

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The main principles of waste management are reuse, recycle and reduce; these 3Rs
are also applicable to the management of solid wastes and effluent of the meat industry.
The basic steps for limiting the pollution from meat industry include minimization,
segregation and processing of waste to recover maximum byproducts and finally proper
waste disposal.
The mitigation measures to be taken for minimizing the adverse impacts of solid waste,
liquid waste and air pollution are briefly described hereunder.

a) Solid waste
The pollution associated with the solid waste can be mitigated by changing the by-
products into high-value products. The recommended uses of slaughter house and
meat industry by-products are presented in Table 5.18.

Table 5. 18: Utilization of Solid Wastes of the Slaughterhouse

S/N By product Recommended utilization

1 Hides and Skin Leather, collagen (gelatine and capsule)
2 Bones Bone meal, collagen (gelatine and
capsule)
3 Fat RBD tallow
4 Stomach and intestine Tripes (processed green offal)
5 Organs like glands, lungs, processed red offal for export market
brains
6 Horns, hoof/feet Horn/hoof meal and artefacts
7 Inedible carcass Meat meal
8 Stomach and intestinal Biogas, composting,
content

Proper collection, segregation and safe disposal of hazardous solid wastes

contaminated with chemical and medical wastes such as high temperature incineration.

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b) Liquid Waste
The mitigation hierarchy of reuse, recycle and reduce is applicable to minimize the
adverse impact of liquid waste to the environment. The following water consumption
reduction technologies shall be adopted:
• use of mechanical or dry cleaning of solid wastes followed by final rinsing instead
of only wet cleaning in the transport vehicle, lairage, meat production and
processing areas;
• application of simple step like fasting of animals before slaughter reduces the
chances of visceral rupture and results in less water use for cleaning of carcass
or slaughter hall.
• using automatically closing water taps in the hand washing and shower area for
the meat handlers;
• spray nozzles or high-pressure hose for plant and equipment cleaning;
• Reduction in water volume used through the use of high-pressure hoses and re-
use and recirculation of water and use of re-circulated chilled water systems
where practicable;
It is better to collect by-products and solid waste as close as possible to the source so
that these do not contaminate the effluent, and reuse of the byproducts is possible.
Care should be taken at each step of slaughtering and meat production and processing
to minimize or avoid the use of water, and that would ensure the reduction of liquid
waste.
Liquid by products such as blood shall be processed to produce Food ingredients,
Blood meal, serum, plasma, gelatine, bioactive peptide.
The liquid waste already generated has to be collected and treated properly. The waste
water should pass through the primary, secondary and tertiary treatment stages to bring
it to the level permitted by the environmental protection authority for release to the
surface water body.

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Preliminary and Primary treatment

In the preliminary step, byproducts, fat and grease, and coarse solids are removed by
screening, skimming, and settling to reduce the pollutant burden in the effluent. Primary
treatments of effluent remove the suspended solids, odour and colour by screening,
neutralization (adding acid or alkali), equalization (stabilizing pH and BOD),
sedimentation (suspended solid particles by gravity), dissolved air floatation (injecting of
air bubbles in the effluent to bring the light particles to the surface as scum) and
coagulation (colloidal impurities by chemical coagulants or electrical charge).

Secondary Treatment
The secondary treatment includes aerobic and anaerobic biological treatment to remove
the organic pollutants. Anaerobic treatment is employed when the organic load in the
effluent is very high, and aerobic treatment is done when the effluent has a low organic
load. Instead of applying a single method, a combination of anaerobic and aerobic
treatment efficiently removes the BOD up to the level of 99%. Secondary treatment
includes the use of a trickling filter, anaerobic digestion, activated sludge process
(ASP), oxidation ditch, aerated lagoon, and oxidation pond. In the trickling filter method,
a biofilm is produced over the trickling filter bed to treat the effluent aerobically.
Anaerobic digestion is carried out in a closed container where methane and ammonia
gases are produced. In the activated sludge method, organic components of the effluent
are biologically degraded by microbes in the presence of oxygen and after settling down
of the effluent, a portion of sludge is added back to the reaction tank. Organic materials
in the effluent are microbially oxidized in different shapes and sizes of oxidation ditch,
aerated lagoon, and oxidation pond.

Tertiary Treatment
Tertiary treatment is carried out to remove bacteria present in the effluent and inorganic
matter like nitrogen, phosphorus, metals, metal oxides, sulphates, etc.. This treatment
employs different physical or chemical methods like reverse osmosis, chemical
precipitation, evaporation, dialysis, removal by algae, activated carbon, chlorination, UV
or gamma rays, etc.. After the tertiary treatment, the effluent achieves a quality worthy

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of being reutilized and it can also be discharged in the fresh water stream or for land
irrigation.
The water treated as above shall be recycled for washing purpose. The standard for
permitted for discharging of effluents of slaughter house to surface water is given in
Table 5.19.

Table 5. 19: Standards for discharge of slaughterhouses effluents in Ethiopia

S/N Parameters Standards (maximum concentration)

1 pH 6-9
2 BOD (mg/l) 80
3 COD (mg/l) 250
4 Suspended solid (mg/l) -
5 Oil and grease (mg/l) 15

The Kilinto Industrial Park which is selected as the location of the envisaged plant is
equipped with a Zero Liquid Discharge central treatment plant and hence the envisaged
integrated cattle and shoat slaughtering and meat processing plant is not required to
install its own waste water treatment plant rather pay for the amount of waste it
generates and the pollution load.

c) Air Pollution
The natural resources can be saved, and the GHG emission and air pollution can be
mitigated with the adoption of a proper livestock handling, efficient meat production and
processing technology such as utilization of solar energy, biogas recovery and use,
energy efficient boilers, insulation of high temperature generation, transmission and use
areas, implementing waste heat recovery system, efficient utilization of livestock
byproducts and effective solid and liquid waste management (GMP and GHP). The
slaughterhouses shall be modern to enhance sanitation and hygienic condition and
ultimately ensuring the reduction in environmental pollution.

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Though it is not easy to completely mitigate the GHG emission from improved livestock
handling, feeding, and manure management considerably reduce the GHG emission.
Mixing manure with soil also helps in carbon sequestration, thereby increasing soil
fertility and mitigating CO2 emissions.

Use of ammonia refrigeration system for maintaining cold temperature etc.

Odour control devices like bio filters, wet scrubbers, and activated carbon are used in
slaughter house or by-product processing plants to remove odor from exhaust air,
especially from the rendering unit. Regenerative thermal oxidiser can remove 99% of
volatile organic compounds to purify the exhaust gases and waste airflow. The following
mitigation measures also help in reducing air pollution.
• Air Scrubbers & Biofilters: Remove VOCs, H₂S.
• Low-Sulfur Fuel & Efficient Combustion Systems: Reduce NOₓ and SO₂.
• Enclosed Processing Areas & Ventilation: Minimize dust and odor.
• Quarterly Air Monitoring: Compliance with EPA and IFC limits.

5.4. Engineering
The engineering component of this feasibility study outlines the technical foundations for
establishing a modern, integrated abattoir plant designed to meet both local and
international standards. The project encompasses the processing of cattle, sheep, and
goats, delivering fresh, chilled, frozen, and value-added meat and by-products for
domestic and export markets, notably China, West Africa, and the Middle East. This
section evaluates the selection of machinery, equipment specifications, sizing, and
associated cost estimates necessary for efficient, hygienic, and sustainable operations.

The selection of machinery and equipment is guided by capacity requirements, hygiene

regulations (such as HACCP and ISO 22000), animal welfare standards (including Halal
compliance), and environmental protection considerations. Emphasis is placed on
integrating energy-efficient, water-saving, and low-emission technologies across all
stages—from livestock reception and slaughter to meat processing, offal and by-
products recovery, rendering, and waste treatment. The engineering layout and

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equipment are structured to facilitate a logical flow of operations through distinct clean
and dirty zones to avoid cross-contamination.

Each unit operation—livestock handling, stunning and slaughter, carcass processing,

chilling, deboning, packaging, by-products processing (including tallow, meat and bone
meal, blood meal, gelatin, and capsule production), and utility sections (boiler, ETP,
WTP, power)—has been carefully studied. Machines are sized based on processing
1000 cattle and 2,000 sheep/goats per day, with consideration for peak-time load
balancing and redundancy to ensure uninterrupted operation. Equipment sourcing
prioritizes reliability, availability of spare parts, service support, and compliance with
international meat industry norms.

The detailed machine list with sizing and specifications includes primary slaughter
equipment (stunners, hoists, hide pullers, evisceration lines), meat processing lines
(deboning tables, slicers, vacuum packers, blast freezers), rendering and tallow refining
units, and environmental control systems (wastewater treatment, odour control, effluent
handling). Each machine’s technical capacity, footprint, and utility requirement are
matched against projected throughput and site availability. A complete cost estimation
in Ethiopian Birr (ETB) has been prepared to cover capital expenditure, including
installation, commissioning, and training.

This engineering plan forms the backbone of the integrated abattoir project and is a
critical enabler for its operational success, regulatory compliance, and financial viability.

5.4.1. Machinery and Equipment for an Integrated Abattoirs Plant

An integrated abattoir plant encompasses a comprehensive range of machinery and
equipment designed to handle the slaughter, processing, and by-products utilization of
livestock. The equipment list covers all stages of operation, from livestock reception and
stunning to carcass dressing, by-products processing, and waste management. The
sizing and specifications of each machine are crucial to ensuring optimal performance
and capacity to handle high throughput, as in the case of a plant processing 1,000 cattle
and 2,000 sheep or goats per day. These specifications are tailored to meet the

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demands of both domestic and export markets, ensuring compliance with local
regulations and international standards, such as halal processing for certain markets.

The cost breakdown of an integrated abattoir plant includes not only the machinery and
equipment but also the installation, operational, and maintenance costs. These costs
vary based on the plant's capacity, technology used, and the complexity of the
processes involved. For example, high-efficiency systems for meat processing, cold
storage, and waste treatment require significant investments in advanced equipment.
Additionally, the cost of ancillary systems such as refrigeration, water treatment, and
waste management need to be considered. This breakdown provides a detailed
understanding of the financial commitment required to set up and operate such a
facility, with a focus on delivering a cost-effective, efficient, and sustainable abattoir
operation.

5.4.2. Machine List, Sizing, Cost, Specifications, and Data Reference for
Livestock Reception and Handling
The livestock reception and handling section is a critical component of an integrated
abattoir facility, designed to ensure the safe, humane, and efficient unloading, resting,
sorting, and movement of animals prior to slaughter. In this part a comprehensive list of
specialized machinery and structures such as unloading ramps, lairages, crowding
pens, raceways, and restraining systems—each carefully sized and specified according
to the type and volume of livestock processed, in this case, 1,000 cattle and 2,000
sheep/goats per day. All equipment and infrastructure are designed in compliance with
international standards for animal welfare and hygiene, ensuring minimal stress and
injury to animals. The technical specifications emphasize robustness, ease of cleaning,
and smooth animal flow. Cost estimates are based on recent quotations and market
data from reputable suppliers.

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Table 5. 20: Livestock Reception and Handling Machinery Cost

Specifications/ Cost Cost (Birr) Supplier

No. Main Equipment Description Material Capacity
sizing (USD) @135 birr List

Ramp system for Material: reinforced 1500 cattle per

reinforced
Livestock unloading livestock from concrete and steel day and 2500 Buhler, Linde
concrete 50,000.00 6,750,000.00
Reception Ramp trucks and leading them width 3-4 meters sheep and goat Food Systems
and steel
1 into holding pens length 30 meters per day
Automatic livestock 1500 cattle per
Capacity: up to Mettler
scales to weigh animals Stainless day and 2500
Weighing Scale 1000kg accuracy 30,000.00 4,050,000.00 Toledo, Avery
on reception before steel sheep and goat
+_1% Weigh - Tronix
2 slaughtering on per day

WEDA
Stainless Dammann &
1000 cattle,
Holding pens For humane holding of 10-15 pens (10 x 5 steel, Westerk amp
2000 sheep & 250,000.00 33,750,000.00
(common & Halal) animals before slaughter meters each) galvanized GmbH ,
goats per day
steel ZIMMER
MANN GmbH
3
Scherzer
Stainless 1000 cattle and GmbH,
Animal Handlining Custom sizing for
For guiding animals in to steel, 2000 WEDA,
Equipment cattle & sheep/ 150,000.00 20,250,000.00
slaughter area galvanized sheep/goats per Dammann &
(chutes, Gates) goats
steel day Westerk amp
4 GmbH

Separate pens where Material stainless

stainless For daily KUKA, JBS
Pre-stunning pens animals are prepared for steel 3m by 3m per 25,000.00 3,375,000.00
steel slaughter Food Systems
stunning pen
5
Total Estimated cost 505,000.00 68,175,000.00

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5.4.3. Machine List, Sizing, Cost, Specifications, and Data Reference for
Slaughter lines
The Slaughter Lines Equipment List for a 1,000 Cattle & 2,000 Sheep/Goat per day
Slaughterhouse, considering both Common and Halal Processing Methods, with
detailed equipment names, specifications, sizing, and estimated cost ranges, including
suppliers list are listed hereunder.
Table 5. 21: Slaughter House Machinery Cost

Main Equipment Specification & Estimated Estimated Cost

No. Supplier List
Description Sizing Cost (USD) (Birr) @135 birr
Pneumatic Stunning SS304, adjustable MPS Group,
1 85,000.00 11,475,000.00
Box (Common Mode) width, hydraulic gates BANSS GmbH
Stainless steel,
automated control for Marel, Baader
Rotational restraining
2 rotation and restraint 150,000.00 20,250,000.00 Group, JBS
box for Halal
mechanism 60 to 80 USA
heads per hour
1000 head/day, 60 to BANSS
Bleeding Conveyor &
3 80 heads per hour, 120,000.00 16,200,000.00 GmbH,
Shackles
stainless steel chain DROBTECH
JBT
4 Hooves cutter Ss, hydraulic 50,000.00 6,750,000.00 FoodTech, F.
Flett & Co
Frontmatec,
5 Hide Puller (Automatic) Hydraulic, SS rollers 90,000.00 12,150,000.00
Meatek China

Overhead rail with China Meat

Carcass Hoists, Rails &
6 trolleys, galvanized & 130,000.00 17,550,000.00 Machinery,
Trolleys
SS MPS Group

Evisceration Platform + Height adjustable,

7 55,000.00 7,425,000.00 BANSS GmbH
Inspection Rails SS304
Pneumatic /
Carcass Splitting Saw Jarvis,
8 Hydraulic, with safety 40,000.00 5,400,000.00
+ Brisket Saw Kentmaster
guides
Washing & Sterilization SS tanks + 4 nozzles Laska, MPS
9 30,000.00 4,050,000.00
Units + knife sterilizer Group
BANSS
Stainless steel, linear
GmbH, Marel
spray type washing
10 Carcasses washing unit 80,000.00 10,800,000.00 Red Meat,
system 120 -130
GEA Food
heads per hour
Solutions

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Main Equipment Specification & Estimated Estimated Cost

No. Supplier List
Description Sizing Cost (USD) (Birr) @135 birr
Red/green offal table Meatek, China
Offal Processing Table
11 with offal conveyor 45,000.00 6,075,000.00 Bole Meat
+ Conveyor
belt Machinery
Viscera Handling Viscera tray lines, Haarslev,
12 28,000.00 3,780,000.00
System stainless bins Sanovo
Final Carcass Weighing Digital scale + grading Marel, GEA
13 18,000.00 2,430,000.00
& Grading Station panel Group
For quick chilling of
Carcass chiller (Blast carcasses, stainless GEA Group,
14 250,000.00 33,750,000.00
Freezer) steel, 100to 150ton Thermo King
capacity
For storing chilled
carcasses until further
Carcasses storage GEA Group,
15 processing, 1000- 200,000.00 27,000,000.00
Freezer Thermo King
1500 m2 refrigerated
area
Insurance, tax,
16 9,254,250.00
transport & Installation
Sub-Total 1,371,000.00 194,339,250.00

B. Sheep/Goat Slaughter Line – 2,000

Head/Day
Main Equipment Specification & Estimated Estimated Cost
No. Supplier List
Description Sizing Cost (USD) (Birr)
Stun Box + Restraining BANSS
Manual & pneumatic,
1 Device (Halal- 60,000.00 8,100,000.00 GmbH, MPS
SS
Compatible) Group
Stainless steel chain,
Bleeding Conveyor with
2 2000 head/day 100,000.00 13,500,000.00 MPS, Jarvis
Shackles
250heads per hour
Skinning Cradle + Compact, SS platform Meatek,
3 65,000.00 8,775,000.00
Pneumatic Skin Puller + skin roller DROBTECH
China
Overhead Rail + Trolley
4 SS + galvanized steel 85,000.00 11,475,000.00 Zhengzhou
System
Modern
Evisceration & SS platform, 5-person
5 35,000.00 4,725,000.00 BANSS, Laska
Inspection Table station
Offal Table + Handling
6 SS with multiple trays 32,000.00 4,320,000.00 Meatek
Conveyor
Viscera Trolleys + Sanovo,
7 304 stainless bins 15,000.00 2,025,000.00
Cradle Drobtech
Final Carcass Weighing SS frame, digital Marel, CAS
8 12,000.00 1,620,000.00
+ Transfer Line indicator Korea
Chillers & Holding Cooling before GEA Group,
9 160,000.00 21,600,000.00
rooms dispatching, 800m2 Thermo King

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Main Equipment Specification & Estimated Estimated Cost

No. Supplier List
Description Sizing Cost (USD) (Birr) @135 birr
refrigerating area

Insurance, tax,
10 3,807,000.00
transport & Installation
Sub-Total 564,000.00 79,947,000.00

Total 274,286,250.00

5.4.4. Deboned, Blast-Frozen, Vacuum-Packed Beef Production Line

This document details the equipment, sizing, specifications, costs, and data sources for
the processing of 250 cattle carcasses per day into deboned, blast-frozen, vacuum-
packed beef. The design supports hygienic, export-standard processing.

Overview

- Daily Capacity: 250 cattle carcasses

- Shift: 8 hours
- Carcass Rate: ~31 carcasses/hour
- Final Product: Deboned, vacuum-packed, blast-frozen beef cuts
Table 5. 22: Deboned, Blast-Frozen, Vacuum-Packed Beef Production Line

Specification & Estimated Estimated Cost

No. Equipment Supplier List
Sizing Cost (USD) (Birr) @135birr
Carcass Receiving Stainless steel rail,
Marel, BANSS,
1 Rail & Transfer auto drive, 30–35 40,000.00 5,400,000.00
FAO
Conveyor carcasses/hour
20–25 stations,
Deboning Conveyor Marel, MPS,
2 modular conveyor, 120,000.00 16,200,000.00
Line ILRI
stainless steel
10–15 workbenches,
Trimming &
3 stainless, with 30,000.00 4,050,000.00 FAO, ILRI
Portioning Tables
sanitizers
Digital scales, sort
Weighing and
4 bins, traceability 35,000.00 4,725,000.00 Marel, GEA
Sorting Stations
system
3 units, double-
Vacuum Packing MULTIVAC,
5 chamber, semi- 90,000.00 12,150,000.00
Machines Henkelman
automatic
Shrink Tunnel & Shrink tanks, auto Henkelman,
6 30,000.00 4,050,000.00
Labelling label printers FAO

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Specification & Estimated Estimated Cost

No. Equipment Supplier List
Sizing Cost (USD) (Birr) @135birr
GEA,
Blast Freezer Spiral/linear, -35°C, 5–
7 250,000.00 33,750,000.00 Mayekawa,
(Tunnel Type) 7 tons/batch
Marel
100–120 tons,
8 Cold Storage Room insulated, -20°C to - 180,000.00 24,300,000.00 GEA, FAO
30°C
Carton Box Packing Stainless tables,
9 25,000.00 3,375,000.00 MPS, ILRI
Station sealer, scales
Palletizing & Cold Forklift access,
10 50,000.00 6,750,000.00 Marel, USAID
Chain Dock wrapping, dock loading
Insurance, tax,
transport & 5,737,500.00
11 Installation
Total 850,000.00 120,487,500.00

5.4.5. Boiled Meat Production Line Description for 250 Cattle Carcasses per
Day
This production line is designed to process 250 cattle carcasses per day (approximately
3,500 kg of deboned meat per hour over an 8-hour shift) into hygienically prepared,
deboned, boiled, blast-frozen, vacuum-packed beef products for export to China. The
process includes slaughtered carcass reception, trimming, boiling, chilling, deboning,
portioning, vacuum packaging, blast freezing, and cold storage.

Table 5. 23: Boiled Meat Production Line

Estimated Estimated Supplier

No. Equipment Specification & Sizing
Cost (USD) Cost (Birr) List
250 carcasses/day (~31
carcasses/hour); Stainless
Carcass Reception and steel rail with anti- Marel,
1
Trimming Area- corrosion trolleys, load- BANSS
Overhead Rail System bearing capacity 200–300 GmbH, MPS
with Trolleys kg per hook 80,000.00 10,800,000.00 Red Meat
4-person workstation per
line; Food-grade stainless
2 Pre-Boiling Cutting steel, ergonomic GEA Group,
Station- Trimming and workstation, anti-slip local custom
Segmentation Tables flooring 20,000.00 2,700,000.00 fabricators

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Estimated Estimated Supplier

No. Equipment Specification & Sizing
Cost (USD) Cost (Birr) List
1,000–2,000 L per batch, Alitco,
Industrial Boiling Units- 2-3 units; Automatic Dhopeshwar
3 Jacketed Steam Kettles temperature control, Engineering,
or Continuous Boiling insulated body, steam- Chinese
Vats supplied, agitation feature 150,000.00 20,250,000.00 suppliers
Cooling System (Post- 500–800 kg/hour
Boiling)- Spiral or throughput; Multi-stage Marel, GEA,
4
Continuous Water chilling with filtered cold Baader
Chiller water circulation 90,000.00 12,150,000.00 China
Deboning and
12–16 operators; Stainless
Portioning Station- Marel,
steel tables, sanitation
5 Deboning Lines, BANSS,
systems, integrated
Trimming Blades, Meat Local
lighting
Inspection Tables 120,000.00 16,200,000.00 fabrication
4–6 cycles/minute, 2
Vacuum Packaging machines; MAP- MULTIVAC,
6
Line- Double Chamber compatible, programmable Henkelman,
Vacuum Sealers cycles, stainless housing 100,000.00 13,500,000.00 Orved Italy
3–5 tons per 8-hour cycle; GEA Group,
-35°C air blast, PU- Infrabaz,
7
Blast Freezer Units- insulated panels, stainless Emerson-
Modular Blast Freezers steel racks 180,000.00 24,300,000.00 China
Cold Storage & Thermo
50+ tons; -18°C temp-
Palletization Area- King, Carrier,
8 controlled, humidity
Freezer Storage Room Cold Chain
regulation, racking system
+ Pallet Racks 120,000.00 16,200,000.00 Technologies
Quality Control & Metal Marel,
Detection- Meat Inline, Stainless, HACCP Anritsu,
9
Scanner + Metal compliant Loma
Detector 50,000.00 6,750,000.00 Systems
Ancillary Utilities and
Conveying Systems- Integrated support Atlas Copco,
10 Conveyors, Air Grundfos,
infrastructure
Compressors, Boiler, Armstrong
Water Treatment Unit 150,000.00 20,250,000.00 International
Insurance, tax,
11
transport & Installation 7,155,000.00
Total 1,060,000.00 150,255,000.00

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5.4.6. Mixed Material Rendering Plant for RBD Tallow and Meat & Bone Meal
Production
This line handles soft animal tissue, bones, and fat from cattle, sheep, and goats. The
raw material section includes three bins (two at 40 m³ for bones and soft tissue, one at
20 m³ for fat), two screw conveyors (Ø500 mm, 5 m and 10 m), a low-speed crusher
(PB22/66) with 25 tons/hour capacity powered by a 55-kW motor, and an HM35 lamella
pump with an 18.5 kW motor. A DN250 inline metal detector ensures safety, with all
piping and fittings included.

The cooking section features a Continuous Cooker CC1200, with a 109 m² heat surface
and 75 kW motor. It cooks the mixed materials under pressure. The section also
includes a fat drainer (TR50, Ø550 mm, 1.37 kW), two screw conveyors, a transport
pump, and an elevated galvanized platform.

Fat separation and pressing utilizes a 4 m³ press bin with steam-jacketed dual screw
conveyors, an ST2500 screw press (1,800–2,800 kg/h capacity, 96.2 kW), and a
vibrating screen fat filtrator model HMS500 (3 m³/h capacity). A decanter model
ACD305 (18.5 kW) is used for final separation. This section also includes a 2,500-liter
heated fat tank with sensors for temperature and level control, plus all interconnecting
conveyors and pumps.

The Tallow Polishing and RBD Tallow Refining Unit is designed to refine crude animal
fat into high-quality, food- and feed-grade RBD tallow through three main stages:
degumming using acid or phosphoric-based treatment to remove impurities, bleaching
through activated clay filtration to eliminate color bodies and contaminants, and
deodorization by vacuum stripping at 240°C to remove odors and improve flavor
neutrality. The unit has a processing capacity of 2 tons per hour.

For fat storage, a 20,000-liter stainless steel tank with internal heating coil is used. It
includes a 25–50 m³/h out loading pump and is mounted on a support platform.

Meal cooling and milling includes a Haarslev MC1805 meal cooler, cyclone filter, and
HM630 hammer mill with 8 mm and 12 mm sieves. Screw conveyors and diverter
valves transfer material to big-bag filling systems.

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The vapour treatment system comprises a cyclone for the cooker, an air-cooled
condenser model AC-90 with an axial fan and integrated condensate tank, and
structural support.

An integrated chemical odor scrubber model HCS-2S-20 handles up to 20,000 m³/h of

air with a two-stage treatment system. This scrubber ensures compliance with
environmental regulations and is a critical part of the vapour control system.

Table 5. 24: Mixed Material Rendering Line – Capacity 9,000 kg/h at 45% Moisture
Cost

Estimated Estimated Cost Supplier

No. Equipment Specification & Sizing
Cost (USD) (Birr) List
three bins (two at 40 m³ for
bones and soft tissue, one at 20
m³ for fat)
two screw conveyors (Ø500
mm, 5 m and 10 m)
a low-speed crusher (PB22/66) Haarslev
Raw Material
1
Handling
with 25 tons/hour capacity 953,750.40 128,756,304.00 Industries
powered by a 55-kW motor, and S.A.U.
an HM35 lamella pump with an
18.5 kW motor
A DN250 inline metal detector
ensures safety, with all piping
and fittings included

Continuous Cooker CC1200,

with a 109 m² heat surface and
75 kW motor
fat drainer (TR50, Ø550 mm, Haarslev
2 Cooking section 1.37 kW) 851,961.60 115,014,816.00 Industries
two screw conveyors S.A.U.
transport pump
elevated galvanized platform

4 m³ press bin with steam-

jacketed dual screw conveyors
ST2500 screw press (1,800–
2,800 kg/h capacity, 96.2 kW) Haarslev
Fat separation
3
and pressing vibrating screen fat filtrator 750,027.60 101,253,726.00 Industries
model HMS500 (3 m³/h S.A.U.
capacity)
decanter model ACD305 (18.5
kW)

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Estimated Estimated Cost Supplier

No. Equipment Specification & Sizing
Cost (USD) (Birr) List
2,500-liter heated fat tank with
sensors for temperature and
level control, plus all
interconnecting conveyors and
pumps

Tallow Polishing Haarslev

and RBD Tallow Industries
4 Refining Unit 390,555.60 52,725,006.00 S.A.U.

20,000-liter stainless steel tank

with internal heating coil Haarslev
5 Fat storage 25–50 m³/h outloading pump 93,886.80 12,674,718.00 Industries
and is mounted on a support S.A.U.
platform

Haarslev MC1805 meal cooler

cyclone filter Haarslev
Meal cooling HM630 hammer mill with 8 mm
6 591,712.80 79,881,228.00 Industries
and milling and 12 mm sieves S.A.U.
Screw conveyors and diverter
valves

cyclone for the cooker

vapour air-cooled condenser model AC- Haarslev
7 treatment 90 with an axial fan and 258,616.80 34,913,268.00 Industries
system integrated condensate tank S.A.U.
structural support

An integrated
chemical odour
scrubber model
HCS-2S-20 Haarslev
8 handles up to Industries
20,000 m³/h of S.A.U.
air with a two-
stage treatment
system 137,332.80 18,539,928.00

complete MCC/PLC automation

and control system with SCADA Haarslev
Automation and integration
9 329,217.60 44,444,376.00 Industries
Services
two PC stations running S.A.U.
SCADA software

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Estimated Estimated Cost Supplier

No. Equipment Specification & Sizing
Cost (USD) (Birr) List
14 weeks of mechanical and
electrical supervision and 12
weeks of commissioning by
10
Haarslev's expert team. This
ensures proper setup, testing,
Installation and operator training 423,051.60 57,111,966.00
Total 4,780,113.60 645,315,336.00

5.4.7. Blood Processing Plant for Blood Meal Production

This line is designed for continuous processing of fresh animal blood into high-protein
meal. The system begins with a raw material section that includes a macerator to break
down coagulated materials, a stainless-steel storage tank with a 10,000-liter capacity
and 2.2 kW agitator to maintain homogeneity, and a 25 m³/h capacity transport pump
with automated valves to move blood to the coagulating section. A galvanized steel
platform supports the system.

In the coagulation section, a 2,500-liter buffer tank with agitator maintains continuous
flow. A dosing pump (2 m³/h) supplies blood to the CBC30 continuous blood coagulator,
which operates with 3–4 bar steam pressure and a 0.75 kW motor, processing up to
3,000 kg/h. Coagulated solids are separated via an ACD305 decanter with an 18.5 kW
motor. Screw conveyors (Ø230 mm, lengths 2 m and 6 m) transfer solids to the drying
section.

The drying system features a Haarslev Coil Dryer HCD40 with a 38 m² heating surface
and 15 kW motor. The system includes a vapour and steam control unit to maintain
thermal efficiency, along with a stainless-steel gas washing tower (6.2 m high, 2.2 kW)
for vapour scrubbing. Material is conveyed via a screw system and supported by a
dedicated platform.

The final stage includes a Ø400 mm x 10 m screw cooler to reduce product

temperature, a pneumatic diverter chute, and two big-bag filling systems each
supporting 1,000 kg capacity. These are built with galvanized steel for durability.

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Table 5. 25: Blood Processing Plant for Blood Meal Production 1200 kg/hr Cost
Estimated Estimated Supplier
No. Equipment Specification & Sizing
Cost (USD) Cost (Birr) List
Macerator to break down
coagulated materials,
a stainless-steel storage tank
with a 10,000-liter capacity
2.2 kW agitator to maintain
Haarslev
homogeneity
1 Raw material section 141,880.80 19,153,908.00 Industries
a 25 m³/h capacity transport
S.A.U.
pump with automated valves
to move blood to the
coagulating section
A galvanized steel platform
supports the system
a 2,500-liter buffer tank with
agitator
A dosing pump (2 m³/h)
supplies blood to the CBC30
continuous blood coagulator,
which operates with 3–4 bar
steam pressure and a 0.75
kW motor, processing up to Haarslev
2 Coagulation section 3,000 kg/h 401,485.20 54,200,502.00 Industries
Coagulated solids are S.A.U.
separated via an ACD305
decanter with an 18.5 kW
motor
Screw conveyors (Ø230 mm,
lengths 2 m and 6 m)
transfer solids to the drying
section

Coil Dryer HCD40 with a 38

m² heating surface and 15
kW motor
The system includes a
Haarslev
vapour and steam control
3 Drying system 603,768.00 81,508,680.00 Industries
unit to maintain thermal
S.A.U.
efficiency, along with a
stainless-steel gas washing
tower (6.2 m high, 2.2 kW)
for vapour scrubbing

Ø400 mm x 10 m screw
cooler to reduce product Haarslev
4 Final stage temperature 75,578.40 10,203,084.00 Industries
S.A.U.
a pneumatic diverter chute

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Estimated Estimated Supplier

No. Equipment Specification & Sizing
Cost (USD) Cost (Birr) List
two big-bag filling systems
each supporting 1,000 kg
capacity
Insurance, tax,
5 transport & 8,253,308.70
Installation
Total 1,222,712.40 173,319,482.70

5.4.8. Gelatine and Hard Capsule Production Line

The proposed production line is designed to extract high-quality gelatine from 35 tons of
bovine hides and 8 tons of ovine skins per day. The expected output is approximately
4.3 tons of gelatine. A portion of this gelatine will be further processed into
pharmaceutical-grade hard gelatine capsules. The extraction method selected is
enzymatic hydrolysis, known for its superior quality yield, operational safety, and eco-
friendliness.

The enzymatic hydrolysis method has been also selected due to its ability to operate at
lower temperatures and under controlled pH conditions, preserving the functional
properties of gelatine. This method employs specific proteolytic enzymes to break down
collagen in hides and skins.
Table 5. 26: Gelatine and Hard Capsule Production from By-Products Line Cost
A. Gelatine Production Line from Animal By-Products
Estimated
Estimated
No. Equipment Specification & Sizing Cost Supplier List
Cost (Birr)
(USD)
2 tons/hour Stainless steel GEA Group,
Washing and rotary drum with water jets Techgen
1 Dehairing Unit and dehairing paddles 50,000.00 6,750,000.00 Engineering
10,000 L x 8 tanks, FRP-
lined or stainless-steel Local chemical
Acid-Alkali Pre- tanks with pH adjustment tank
2 treatment Tanks systems 100,000.00 13,500,000.00 manufacturers
5,000 L x 4 units (batch or Shanghai Better
semi-continuous) Jacketed Industry Co.,
SS316 reactor, pH and Ltd.; Ginhong
Enzymatic temperature controlled, with Mixers; FAO
3 Hydrolysis Reactor agitation 150,000.00 20,250,000.00 reports

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Estimated
Estimated
No. Equipment Specification & Sizing Cost Supplier List
Cost (Birr)
(USD)
Filtration and Bag filter or rotary drum Filter Press
Clarification filter followed by plate-and- Tech, Made-in-
4 System frame filter press 40,000.00 5,400,000.00 China
500 liters/hour Falling film
Vacuum or forced circulation Evaporator Tech
5 Concentrator evaporator 80,000.00 10,800,000.00 India
200–250 kg/hour Vacuum Spray Dryers
6 Gelatine Dryer dryer or tunnel belt dryer 100,000.00 13,500,000.00 India, GEA
Milling and Sieving
7 System 15,000.00 2,025,000.00 SaintyCo
Gelatine Powder PackingMachine
8 Packing Machine 30,000.00 4,050,000.00 Co
Subtotal 565,000.00 76,275,000.00

B. Hard Gelatine Capsule Production Equipment

Gelatine Melting CapsulCN,
1 and Holding Tank 500 liters 25,000.00 3,375,000.00 SaintyCo
Capsule Forming 150,000–200,000 Qualicaps, ACG
2 Machine capsules/hour 250,000.00 33,750,000.00 Pam
Capsule Dryer and
3 Trimming System 50,000.00 6,750,000.00 SaintyCo
Capsule Polishing
and Inspection
4 Machine 15,000.00 2,025,000.00 CapsulCN
Capsule Packing
5 Machine 60,000.00 8,100,000.00 Uhlmann, Bosch
Subtotal 400,000.00 54,000,000.00
Insurance, tax,
transport &
Installation 6,513,750.00
Total 965,000.00 136,788,750.00

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5.4.9. Red and Green Offal Processing Line

The red and green offal processing line is designed to handle 81.6 tons of offal per day, processing internal organs and
other edible offal such as lungs, livers, hearts, kidneys (red offal), and intestines, tripe, spleen, and omasum (green offal).
This line ensures hygiene, traceability, and compliance with export requirements, particularly those of the Chinese and
West African markets.
Table 5. 27: Red and Green Offal Processing Line for Export (81.6 Tons/Day Output) Cost
Unit Cost Total Cost Total Cost Suppliers
Machine/Equipment Specification Qty
No (USD) (USD) (Birr) List
Modular stainless steel, Marel, MPS,
Offal Reception Conveyors 2 12,000.00 24,000.00 3,240,000.00
1 800mm wide x 10m long BANSS
Rotary, steam-assisted, 500– Haarslev,
Tripe Cleaning Drum 2 28,000.00 56,000.00 7,560,000.00
2 800 kg/h GEA Group
Multi-stage water spray, 1 Alitco,
Liver and Lung Washer 2 18,000.00 36,000.00 4,860,000.00
3 ton/h Meatek
SS, perforated, LED light, BANSS,
Red Offal Inspection Table 3 15,000.00 45,000.00 6,075,000.00
4 water taps Marel
Dhopeshwar,
Green Offal Processing Tank Heated, agitated tank, 2,000 L 2 22,000.00 44,000.00 5,940,000.00
5 GEA
FAO Design
Trimming and Cleaning Stations Ergonomic, with sterilizers 4 16,000.00 64,000.00 8,640,000.00
6 Manuals
Multivac,
Vacuum Packing Machine Multichamber, 2.5–3 tons/h 2 45,000.00 90,000.00 12,150,000.00
7 ULMA
Frigoscandia,
Blast Freezer Room -35°C, 10 tons/day 1 120,000.00 120,000.00 16,200,000.00
8 Marel
9 Pre-Chilling Tunnel Spiral/tunnel, +4°C, 8 tons/h 1 40,000.00 40,000.00 5,400,000.00 Meatek, MPS
SS mobile tray racks, 200 Chinese
Offal Freezing Tray Racks 10 12,000.00 120,000.00 16,200,000.00
10 kg/unit OEM
Marel,
Inline system with batch/date
Labeling & Metal Detection 1 25,000.00 25,000.00 3,375,000.00 Fortress
printer
11 Tech

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Unit Cost Total Cost Total Cost Suppliers

Machine/Equipment Specification Qty
No (USD) (USD) (Birr) List
Chiller Room for Finished Eurocold,
+0°C to +2°C, 10 tons capacity 1 45,000.00 45,000.00 6,075,000.00
12 Products Infraca
Water, steam, air lines & GEA Group,
Utilities & Hygiene Station LS 20,000.00 20,000.00 2,700,000.00
13 hygiene tools ILRI
Insurance, tax, transport &
4,920,750.00
Installation
Total 729,000.00 103,335,750.00

5.4.10. Central Steam Generation and Distribution System

Below is the updated formal descriptive write-up assuming a Water-Tube Boiler is selected for the central steam
generation and distribution system.

Application: Integrated Abattoir and By-product Processing Facility

Daily Steam Requirement: ~10,000 kg/hr (10 tons/hr)

Operating Pressure: 10–12 bar

Fuel Type: Diesel or Heavy Fuel Oil (HFO), with optional biomass/dual-fuel provisions

Boiler Technology Selected: Water-Tube Boiler

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Table 5. 28: Central Steam Generation and Distribution System Cost

Unit Cost Total Cost Total Cost

No Machine/Equipment Specification Qty Suppliers List
(USD) (USD) (Birr)
Thermax,
10,000 kg/hr (10 TPH) Horizontal, ISGEC, Bosch
membrane wall, water-tube boiler Industrial
1 Water-Tube Steam Boiler Unit with economizer 1 330,000.00 330,000.00 44,550,000.00 Boilers
Ion Exchange
India, Thermax
Water
Boiler Feedwater Treatment Treatment
2 System 12,000 L/hr 1 50,000.00 50,000.00 6,750,000.00 Solutions
Header Size: 10 inches (Seamless
Schedule 40 pipe), Branch Lines: Spirax Sarco,
2–6 inches depending on process Armstrong
3 Steam Distribution Network load 1 100,000.00 100,000.00 13,500,000.00 International
Spirax Sarco,
Recovers ~70% of condensate for Forbes
4 Condensate Recovery System reuse 1 25,000.00 25,000.00 3,375,000.00 Marshall
Indian Boiler
Regulation
5 Chimney (Stack) Carbon steel, epoxy coated 1 15,000.00 15,000.00 2,025,000.00 (IBR), IS 6533
Insurance, tax, transport &
Installation 3,510,000.00
Total 520,000.00 73,710,000.00

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5.4.11. Central Water Supply and Treatment System

A central water treatment and supply system is a critical utility infrastructure for an
integrated abattoir and meat processing complex. The treated water is used for potable
and industrial-grade requirements across slaughtering lines, meat processing, cleaning,
rendering, offal processing, boiler feed, and sanitation systems. Considering the strict
hygiene, export, and environmental standards in such a facility, the water treatment
system must ensure adequate removal of sediments, organic matter, hardness,
pathogens, and chemical contaminants.

This water treatment system ensures a continuous, hygienic, and safe water supply
tailored to meet the operational demands and compliance requirements of a modern
integrated abattoir and food processing complex. Its modular design allows for future
scaling and incorporates automation for optimized operation.
Table 5. 29: Central Water Supply and Treatment System Cost

Machine/Equi Unit Cost Total Cost Total Cost Suppliers

No Specification Qty
pment (USD) (USD) (Birr) List
Raw Water Pumps:
50–70 m³/hr; Head: Grundfos,
25–35 m; Stainless KSB
Raw Water
steel impellers 2 5,000.00 10,000.00 1,350,000.00 Pumps
Intake and Pre-
1 Pentair,
Treatment
Coarse and Fine Veolia
System
Media Filtration Water
(Multimedia Filter), Technolog
50 m³/hr 2 12,500.00 25,000.00 3,375,000.00 ies
Iron and
Manganese
Removal Filter:
Pressure filter,
Water
manganese Culligan,
Softening and
2 greensand media Envicare,
Iron Removal
Capacity: 80 m³/hr 1 22,000.00 22,000.00 2,970,000.00 Xylem
Units
Thermax,
Ion
Water Softener: Exchange
80–100 m³/hr 1 30,000.00 30,000.00 4,050,000.00 India Ltd.
Filtration and Activated Carbon Veolia,
3
Disinfection Filter: 60 m³/hr 1 15,000.00 15,000.00 2,025,000.00 Aquafine

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Machine/Equi Unit Cost Total Cost Total Cost Suppliers

No Specification Qty
pment (USD) (USD) (Birr) List
System Ultraviolet (UV) Wedeco
Disinfection / (Xylem),
Chlorine Dosing Grundfos
System: 60–80 dosing
m³/hr 1 18,000.00 18,000.00 2,430,000.00 units
20–30 m³/hr, 2-
Reverse stage membrane SUEZ,
Osmosis (RO) system, 75–80% Aquatech,
4 Unit recovery 1 75,000.00 75,000.00 10,125,000.00 Ampac
Storage Tank
(Elevated or
Ground Concrete
Reservoir):500–
1,000 m³,
Treated Water
Reinforced
Storage and
5 concrete, epoxy-
Distribution
lined, food-grade 1 70,000.00 70,000.00 9,450,000.00
System:
Distribution Pumps
and Piping System:
50–70 m³/hr, multi- KSB, Wilo,
stage, SS/HDPE local
food-grade 1 45,000.00 45,000.00 6,075,000.00 fabricators
Flow Meters,
Pressure Gauges, Endress+
pH/Conductivity Hauser,
Instrumentation Meters, SCADA Siemens,
6 and Control Interface 1 20,000.00 20,000.00 2,700,000.00 ABB
Insurance, tax,
transport &
Installation 2,227,500.00
Total 330,000.00 46,777,500.00

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5.4.12. Central Wastewater Treatment Plant for 2000 m³/Day Capacity

A central wastewater treatment plant (WWTP) is a critical environmental and regulatory
component of any integrated abattoir and meat processing complex. The wastewater
generated from slaughtering, meat processing, offal cleaning, rendering, cleaning
operations, and by-products handling is highly organic and contains high loads of fats,
proteins, blood, and suspended solids. Thus, a well-designed WWTP must ensure
effective removal of BOD, COD, TSS, nutrients, and pathogens to meet both national
effluent discharge standards and international export compliance requirements.

Table 5. 30: Central Wastewater Treatment Plant for 2000 m³/Day Capacity Cost
Suppliers
No Machine/Equipment Specification Cost (USD) Cost (Birr)
List
Bar Screen, Channel Aqseptence
width 600–800 mm, 10 Group,
Screen and Grit Removal mm spacing 8,000.00 1,080,000.00 Veolia
1
System Grit Removal Unit
(Vortex Type): 15–20 Huber,
L/sec capacity 10,000.00 1,350,000.00 WAMGROUP
100–120 m³/hr,
Stainless steel, Nijhuis
2 pressurized air Industries,
Fat, Oil and Grease (FOG) injection, chemical KWI
Removal dosing system 75,000.00 10,125,000.00 International
Equalization Tank:
1,000–1,200 m³ 50,000.00 6,750,000.00
Equalization and Anaerobic Anaerobic Reactor
3
Pre-treatment (UASB or Covered
Lagoon): 1,200–1,500
m³ 200,000.00 27,000,000.00
Activated Sludge or
Moving Bed Biofilm
Reactor (MBBR),
Aeration diffusers, bio- Veolia,
Biological Treatment media, blowers, Xylem,
4 System 1,500–2,000 m³/day 130,000.00 17,550,000.00 Aqwise
Circular Clarifier CST
(Settling Tank), 8–10 Wastewater,
5 Secondary Clarification m diameter 35,000.00 4,725,000.00 SUEZ
Dual media filtration Wedeco
Tertiary Treatment and system, UV capacity (Xylem),
6 Disinfection 60 m³/hr 30,000.00 4,050,000.00 Grundfos

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Suppliers
No Machine/Equipment Specification Cost (USD) Cost (Birr)
List
Sludge Thickener &
Filter Press (or Screw
Sludge Handling Press): 1–2 tons per Alfa Laval,
7 Equipment hour 45,000.00 6,075,000.00 Andritz
Submersible Pumps,
Recirculation Pumps,
Chemical Dosing
Pumps, Flow Meters,
Pumps, Piping and pH/DO Sensors,
8 Instrumentation SCADA System 80,000.00 10,800,000.00
Insurance, tax, transport &
Installation 4,475,250.00
Total 663,000.00 93,980,250.00

5.4.13. Central Compressed Air System for An Integrated Abattoir Plant

A central compressed air system is a vital utility infrastructure in an integrated abattoir
and meat processing complex, supporting a range of operations across slaughter lines,
meat cutting rooms, pneumatic controls, packaging units, utilities, and by-product
processing facilities. The system must ensure continuous, dry, and clean compressed
air supply, maintaining hygienic standards, operational safety, and energy efficiency.

Table 5. 31: Central Compressed Air System for An Integrated Abattoir Plant Cost

No Machine/Equipment Specification Cost (USD) Cost (Birr) Suppliers List

Oil-injected rotary screw
air compressors: 2 units
Rotary Screw Air x 400 CFM @ 7 bar (with Atlas Copco ;
1 Compressors one standby) 55,000.00 7,425,000.00 Kaeser CSD
Quincy
Vertical cylindrical Compressor,
pressure vessel, 3,000 Chicago
2 Air Receiver Tank litres 6,500.00 877,500.00 Pneumatic
Ingersoll Rand,
Refrigerated Air 800 CFM Refrigerant- Beko
3 Dryer based air dryer 8,000.00 1,080,000.00 Technologies,
Donaldson
Ultrafilter,
Inline Filtration Parker Domnick
4 System 5,000.00 675,000.00 Hunter

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No Machine/Equipment Specification Cost (USD) Cost (Birr) Suppliers List

Aluminium alloy piping,
Diameter: DN40 –
DN100 (based on flow
Compressed Air distribution), Approx. 800
5 Distribution Network meters (for entire facility) 32,000.00 4,320,000.00 Atlas Copco
Electronic No-Loss Drain
Condensate Valve + Oil-Water Beko OWAMAT
Management Separator Compatible Series, Kaeser
6 System with 800 CFM system 3,500.00 472,500.00 AQUAMAT
Siemens S7
Automation
Systems,
Schneider
Central Monitoring & PLC-based touch panel Electric
7 Control Panel interface 15,000.00 2,025,000.00 EcoStruxure
Insurance, tax,
transport &
Installation 843,750.00
Total 125,000.00 17,718,750.00

5.4.14. Backup Diesel Generator System for Integrated Abattoir and

Processing Complex
To ensure uninterrupted operations of the integrated abattoir, meat processing facilities,
and associated by-product plants, a robust and reliable backup power generation
system is required. This backup system is essential to mitigate production losses and
equipment damage during power interruptions from the grid supply. The main grid will
supply the base load, while diesel-powered generators will provide emergency backup
power.

Daily Energy Demand and Backup Capacity Requirements

The integrated facility has a total estimated daily power consumption of approximately
44,500 kWh. Assuming power interruptions may last up to 6–8 hours in rare cases, the
backup system is designed to sustain operations at 80% of the full capacity, focusing on
critical operations such as slaughter lines, cold chain systems, rendering plants,
wastewater treatment, and utility supply systems.

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Generator Configuration and Sizing

To meet the estimated load demand and provide redundancy, a multi-unit generator
configuration is adopted, consisting of two diesel generator sets, each with a capacity of
1,250 kVA (1,000 kW). Two generators will operate in parallel to cover the full
emergency load of approximately 2,000 kW. This approach provides both load flexibility
and operational redundancy.

Machine List and Specifications

Diesel Generator Set – 2Units

Model: Cummins QSK38-G5 or Perkins 4012-46TAG2A equivalent
Prime Power Output: 1,000 kW (1,250 kVA)
Fuel Type: High-speed diesel
Cooling System: Water-cooled radiator
Control Panel: Automatic Mains Failure (AMF) with auto-synchronization feature
Voltage: 400V, 3-phase, 50 Hz
Enclosure: Weatherproof sound-attenuated containerized housing
Fuel Tank Capacity: Minimum 1,000 liters per unit (8 hours autonomy)
Auxiliary Fuel Storage and Transfer System
Bulk diesel tank with 10,000-liter capacity
Fuel filtration and transfer pumps
Switchgear and Synchronization Panel
Intelligent load management and changeover system
Auto start/stop controller
Synchronization capability with national grid
Generator Foundation and Exhaust System
Concrete base with vibration dampers
Exhaust silencers and ventilation systems

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Table 5. 32: Backup Diesel Generator and Electrical Systems Cost

No Machine/Equipment Specification Cost (USD) Cost (USD)

1 Diesel Generator Set 1,250 kVA * 2 Units 260,000.00 35,100,000.00
Synchronization and ATS
2 panels 35,000.00 4,725,000.00
Fuel storage and transfer
3 system 25,000.00 3,375,000.00
Electrical systems,
Installation, exhaust, and
4 commissioning 55,000.00 7,425,000.00
Total 375,000.00 50,625,000.00

5.4.15. Central Laboratory

A centralized laboratory is a critical support facility for ensuring the safety, quality, and
compliance of meat and by-product processing in an integrated abattoir complex. It
performs microbiological, chemical, and physical analyses to meet export standards,
halal requirements, and local food safety regulations. The laboratory also supports
water quality testing, effluent monitoring, animal disease surveillance, and
environmental control.
The central laboratory is scaled to support daily testing needs from slaughtering 1,000
cattle and 2,000 sheep/goats, including raw meat, offal, water, and effluent testing. The
selection of equipment ensures compliance with ISO 17025 standards, supports
traceability, and enhances product export value through regular quality monitoring .
The following describes the key equipment required, their specifications, and estimated
cost.
Table 5. 33: Central Laboratory Cost
Cost Suppliers
No Machine/Equipment Specification Cost (Birr)
(USD) List
A. Microbiology Laboratory Equipment:
Work area size approx. 1.2 Thermo
Laminar Flow Cabinet m, HEPA filtered airflow for Fisher,
1 (Class II) aseptic culture handling 6,000.00 810,000.00 Labconco
Autoclave (Vertical Tuttnauer,
2 Type) 75–100 liters capacity 4,000.00 540,000.00 Meditek

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Cost Suppliers
No Machine/Equipment Specification Cost (Birr)
(USD) List
150–250 L capacity, 5–
3 Incubator 60°C temperature range 2,000.00 270,000.00
Colony Counter
4 (Digital) 1,000.00 135,000.00
Subtotal 13,000.00 1,755,000.00

B. Chemical and Quality Testing Equipment:

1 pH Meter (Bench-top) 600.00 81,000.00
Shimadzu,
Spectrophotometer Wavelength range 190– Thermo
2 (UV-Vis): 1100 nm 6,000.00 810,000.00 Scientific
Infrared-based, 1–2%
Fat and Moisture accuracy for meat and offal
3 Analyzer (Rapid): products 7,000.00 945,000.00
Subtotal 13,600.00 1,836,000.00

C. Pathogen and Residue Testing Equipment:

BioTek
ELISA Reader and Instruments,
1 Washer (Automated) 12,000.00 1,620,000.00 LabX
Refrigerated Centrifuge 12,000–15,000 rpm, 4°C
2 (High-Speed): operation 5,000.00 675,000.00
Precision of 0.1 mg to 0.01
3 Analytical Balance: mg 1,500.00 202,500.00
Water Distillation Unit
4 or Deionizer 2,000.00 270,000.00
Workbenches, Chemical
Storage Cabinets, Fume
Hood: Epoxy-coated
benches, acid/alkali
Laboratory Furniture resistant surfaces, stainless
5 and Storage steel sinks 15,000.00 2,025,000.00
Laboratory Information
Management System
IT and Data (LIMS), Software +
6 Management Installation 8,000.00 1,080,000.00
Miscellaneous Microscopes, glassware,
Instruments and pipettes, test kits, and first
7 Consumables setup consumables 7,000.00 945,000.00
Subtotal 50,500.00 6,817,500.00
Total 77,100.00 10,408,500.00

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5.4.16. Building, Infrastructure and Civil Works

The proposed integrated abattoir and meat processing complex is strategically planned
to occupy a total land area of 10 hectares (100,000 m²) within the Bole Lemi Industrial
Park at a rate of land lease value 9 $/m2 per year for 40 years. The layout is designed to
optimize hygiene, material flow, operational efficiency, biosecurity, and future
expansion, while meeting local and international meat export standards. The plant is
divided into primary processing zones, utility areas, and supporting facilities with
dedicated circulation routes for animals, materials, and personnel.

Livestock Reception and Holding Yards (7,500 m²):

This section includes shaded pens, water points, veterinary inspection posts, and
separate holding areas for cattle and sheep/goats. Animal handling systems are
designed for humane movement and stress minimization.

Slaughter and Dressing Lines (8,000 m²):

Comprises common and halal slaughter lines for both cattle and small ruminants.
Includes stunning areas, bleed-out zones, hide removal, evisceration, and carcass
washing tunnels.

Deboning, Meat Processing & Freezing (7,500 m²):

Hygienic deboning halls with stainless steel tables, cold chain lines, vacuum packing,
metal detection, and blast freezing chambers. Includes chilled and frozen meat storage.

Boiled Meat Processing and Packaging Unit (2,500 m²):

Specialized cooking chambers, sterilization tunnels, shrink packing, and export-grade

packaging for the China market.

Rendering Plant – MBM and Tallow (4,500 m²):

Houses continuous cookers, screw presses, decanters, centrifuges, and tallow polishing
systems for converting by-products to Meat and Bone Meal and RBD Tallow.

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Gelatin and Hard Capsule Production (6,000 m²):

Includes hide/skin pre-treatment lines, acid/alkali soaking tanks, extraction units, gelatin
filtration, drying, milling, and encapsulation lines with pharmaceutical-grade capsule
fillers.

Blood Meal Production Plant (2,500 m²):

Comprises coagulation tanks, decanters, dryers, and odor control systems for blood
drying and conversion into feed-grade protein.

Central Utility Block (7,000 m²):

Steam generation (water tube boiler), water treatment, air compressor station, power
house, vacuum pump room, cooling plant, and central maintenance workshop.

Effluent Treatment Plant – ETP (3,500 m²):

Designed for 2,000 m³/day capacity, including primary screening, equalization,

biological treatment (activated sludge), sludge dewatering, and final discharge control.

Administrative, Laboratory & QC/QA Buildings (2,000 m²):

Centralized management offices, R&D lab, food safety and quality control labs, and
documentation archiving rooms.

ICT and Internal Audit Departments (600 m²):

Equipped with data servers, ERP control rooms, audit record sections, and compliance
monitoring stations.

Canteen, Locker, Clinic & Staff Facilities (1,500 m²):

Staff amenities block with segregated change rooms, showers, clinic, prayer room, and
dining facility.

Access Roads, Parking, Landscaping & Buffer Zones (45,400 m²):

Includes paved circulation paths, loading/unloading docks, fire lanes, vehicle parking,
drainage systems, green zones, and security fencing.

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Table 5. 34: Building & Civil Works Cost

Area,
No. Infrastructure Description Cost (Birr)
m2
shaded pens, water points, veterinary
Livestock Reception inspection posts, and separate holding areas
1 and Holding Yards for cattle and sheep/goats 7,500 11,250,000.00
common and halal slaughter lines for both
cattle and small ruminants. Includes stunning
Slaughter and areas, bleed-out zones, hide removal,
2 Dressing Lines evisceration, and carcass washing tunnels 8,000 120,000,000.00
Hygienic deboning halls with stainless steel
Deboning, Meat tables, cold chain lines, vacuum packing,
Processing & metal detection, and blast freezing chambers.
3 Freezing Includes chilled and frozen meat storage 7,500 112,500,000.00
Boiled Meat
Processing and Specialized cooking chambers, sterilization
4 Packaging Unit tunnels 2,500 25,000,000.00
5 Rendering Plant MBM and Tallow 4,500 45,000,000.00
Gelatin and Hard
6 Capsule Production 6,000 60,000,000.00
Blood Meal
7 Production Plant 2,500 25,000,000.00
Steam generation (water tube boiler), water
treatment, air compressor station, power
house, vacuum pump room, cooling plant,
8 Central Utility Block and central maintenance workshop 7,000 77,000,000.00
2,000 m³/day capacity, including primary
screening, equalization, biological treatment
Effluent Treatment (activated sludge), sludge dewatering, and
9 Plant – ETP final discharge control 3,500 52,500,000.00
Administrative, Centralized management offices, R&D lab,
Laboratory & QC/QA food safety and quality control labs, and
10 Buildings documentation archiving rooms 2,000 400,000,000.00
Equipped with data servers, ERP control
ICT and Internal rooms, audit record sections, and compliance
11 Audit Departments monitoring stations 600 7,200,000.00
Canteen, Locker, Staff amenities block with segregated change
Clinic & Staff rooms, showers, clinic, prayer room, and
12 Facilities dining facility 1,500 18,000,000.00
Access Roads,
Parking, paved circulation paths, loading/unloading
Landscaping & docks, fire lanes, vehicle parking, drainage
13 Buffer Zones systems, green zones, and security fencing 45,400 499,400,000.00
14 Contigency 72,642,500.00
Total 98,500 1,525,492,500.00

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Plant Layout

EWT Transformer

Administration Bldg
GH
AC

Deboning, Meat processing &

Canteen
Boiled Meat
Processing &
Packaging

Freezing
Gelatin & Hard Capsule Production

Livestock Reception and

Slaughter House
Handling

Red and Green Offal Processing

Rendering Plant for RBD Tallow and Meat & Bone

Blood Meal Production Plant

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5.4.17. Vehicles Requirement

An integrated abattoir and by-products production plant requires a well-structured and
optimized transportation system to ensure smooth operations, cost-effectiveness, and
timely delivery of raw materials and finished products. The logistics and vehicle
requirements must align with the production capacity, operational shifts, and product
distribution strategies to minimize costs while maintaining efficiency. This study
evaluates the vehicle requirements, estimated costs, and the feasibility of a two-shift
operation to optimize resource utilization and operational workflow.
As discussed in previous section, the abattoir processes 1,000 cattle and 2,000 sheep
and goats per day, producing chilled, frozen and fresh carcasses for local and export
markets. Additionally, various by-products such as red and green offals, meat and bone
meal (MBM), tallow, blood meal, gelatin, and hard capsules are produced. Transporting
these products necessitates an optimal fleet configuration, considering volume, weight,
packaging, and cold storage requirements. By implementing a two-shift operational
model, vehicle utilization can be maximized, leading to cost reductions without
compromising efficiency.
This study quantifies each vehicle's work per day, ensuring that transport capacity
meets production output. It details vehicle categories, their estimated costs, and
justifications for optimization. The analysis also considers the specific transportation
needs of each product, including fresh meat, by-products, raw material collection, and
internal plant logistics.
To optimize operational efficiency and reduce costs, the vehicle requirements for an
integrated abattoir plant have been adjusted for a two-shift operation. This ensures that
each vehicle is utilized to its full capacity while maintaining smooth logistics and
workflow.
Accordingly, the list of the vehicles that will be acquired by the envisaged integrated
cattle and shoat slaughtering and meat processing plant and associated cost with
justification is indicated in table 5.35.

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Table 5. 35: Vehicles Cost

Unit
Total Cost Total Cost
S/N Type of Vehicles Qty Price Remark
(USD) (Birr)
(USD)

Refrigerated Trucks Transport of chilled and frozen meat to airport for export
1 5 120,000 600,000.00 81,000,000.00
(20T) and fresh meat for local market distribution

Refrigerated Trucks Distribution of processed by product and frozen offals to air

2 4 90,000 360,000.00 48,600,000.00
(10T) port and also fresh meat for local market

3 Box Trucks (5T) 3 50,000 150,000.00 20,250,000.00 Transport of packaged by processed by products

Live Animal Transport Moving live animals from markets and holding areas to
4 4 85,000 340,000.00 45,900,000.00
(Cattle -10T) slaughter house
Live Animal Transport Moving sheep and goat from market and holding areas to
5 3 60,000 180,000.00 24,300,000.00
(Sheep and Goat -5T) slaughter house
Waste Collection
6 3 75,000 225,000.00 30,375,000.00 Collection of waste and nonedible by products
Trucks (10T)

Maintenance and operational support within plant and for

7 Service pickups 6 30,000 180,000.00 24,300,000.00
procurement and supply

Handling packaged products, especially warehouse storage

8 Forklifts (3T) 2 40,000 80,000.00 10,800,000.00
and loading operations

9 Forklift (6T) 1 60,000 60,000.00 8,100,000.00 Moving heavy packaged goods including frozen blocks

Workers Transport
10 3 100,000 300,000.00 40,500,000.00 Transporting workers in shifts to and from the plant
Buses (50 -seats)
Management Used by plant management for supervision and
11 4 35,000 140,000.00 18,900,000.00
Automobiles coordination

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Unit
Total Cost Total Cost
S/N Type of Vehicles Qty Price Remark
(USD) (Birr)
(USD)
Security & Emergency
12 2 45,000 90,000.00 12,150,000.00 Ensuring plant security and emergency response readiness
Vehicles
Total 2,705,000.00 365,175,000.00

5.4.18. Central Workshop and Garage

To ensure efficient maintenance of machinery, transport vehicles, and utility systems, a centralized workshop and garage
is essential for an integrated abattoir and its allied facilities. The workshop serves mechanical, electrical, and fabrication
needs, while the garage supports fleet maintenance and repair. The equipment selected balances durability, performance,
and cost-effectiveness, suited for daily operational demands. This central workshop and garage will play a vital role in
ensuring the long-term sustainability, repair efficiency, and uninterrupted operations of the integrated abattoir and its
satellite facilities. The sizing of equipment considers peak load maintenance needs, ease of operation, and minimal
downtime.

Here is a descriptive detailing the list of machines and equipment, sizing, specifications and estimated cost for a central
workshop and garage designed to support the operation and maintenance of an integrated abattoir and associated
complex:

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Table 5. 36:Central Workshop and Garage: Equipment and Cost

Cost Suppliers
No Machine/Equipment Specification Cost (Birr)
(USD) List
A. Vehicle Maintenance Equipment:
Capacity 5–10 tons, designed for
medium and heavy-duty trucks and utility
vehicles used in carcass, offal, and by- Ravaglioli,
1 Hydraulic Vehicle Lift (2-post type) product transportation. 12,000.00 1,620,000.00 Hofmann

2 Grease Gun and Pneumatic Lubrication System 800.00 108,000.00

B. Mechanical and Welding Workshop Equipment:

Bed length 1.5–2 meters, suitable for
shaft, gear, and roller turning, Motor Bharat
power 3–5 HP, chuck diameter 200–300 Machinery
1 Lathe Machine mm 9,000.00 1,215,000.00 Works
2 Drill Press Machine: 20–32 mm drill capacity, floor-mounted 1,200.00 162,000.00
3 MIG Welding Machine: 300–500 Amps, with gas shielding 2,500.00 337,500.00
Angle grinders, chop saws, and bench
4 Cutting and Grinding Equipment: grinders * 6 Units 2,000.00 270,000.00
Heavy-duty workbenches with integrated
5 Bench Vices and Workbenches: vises * 5 Units 800.00 108,000.00

C. Electrical and Instrumentation Maintenance Tools:

1 Multimeter, Clamp Meter, Insulation Tester Full Kit 1,200.00 162,000.00

Cable Crimping, Termination Tools and Soldering
2 Kits: For PLC, motor and panel maintenance 1,000.00 135,000.00

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Cost Suppliers
No Machine/Equipment Specification Cost (Birr)
(USD) List
Atlas
Compressor Unit (5.5–7.5 kW, 10 bar): Copco,
500 L capacity, suitable for powering Fini,
3 Air Compressor with Tool Attachments pneumatic tools 4,500.00 607,500.00 Kaeser
4 Pneumatic Tool Set: Impact wrench, ratchets, chisels 1,000.00 135,000.00

D. Spare Parts Storage & Tool Handling:

1 Heavy Duty Racks and Shelves 1,500.00 202,500.00

2 Tool Trolleys and Cabinets 5 Units 5,000.00 675,000.00

E. Garage Structure and Utility Connections:

Workshop Shed Structure: 25 m × 15 m covered

workshop with 6 m height, including vehicle bay,
workbenches, lighting, electrical, water and air
1 piping systems 50,000.00 6,750,000.00
High-Pressure Water Jet Washer: 150–
2 Vehicle Washing Bay 200 bar pressure 2,000.00 270,000.00

F. Drainage and Oil Trap System Installation: 3,000.00 405,000.00

Total 97,500.00 13,162,500.00

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5.4.19. Office Furniture and Equipment

The required office furniture and equipment required for the integrated cattle and sheep
& goat slaughtering and meat processing plant are shown below:
Table 5. 37: Office Furniture and Equipment Cost

Unit Total Cost

No Description Unit Qty
Cost (Birr)

Executive Managerial Table with shelf and swiveling

1 set 1 150,000 150,000.00
chair

2 Managerial Guest sofa and coffee table set 1 250,000 250,000.00

3 Executive Secretary table and swiveling chair set 1 50,000 50,000.00

4 Conference Table, chair and accessories set 1 300,000 300,000.00

6 Managerial table and swiveling chair set 6 40,000 240,000.00

7 Guest Chair pcs 18 5,000 90,000.00

8 Table with drawers pcs 27 25,000 675,000.00
9 Chair pcs 54 6,000 324,000.00
10 Managerial shelf pcs 6 20,000 120,000.00
11 shelf pcs 14 15,000 210,000.00
12 Filing Cabinet pcs 6 15,000 90,000.00
13 Computer pcs 27 60,000 1,620,000.00
15 Printer pcs 27 30,000 810,000.00
16 Fax pcs 2 30,000 60,000.00
17 Photocopier pcs 2 175,000 350,000.00
18 UPS heavy duty for pcs 27 7,500 202,500.00
19 Telephone and accessories pcs 6 5,000 30,000.00
Total 5,571,500.00

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6. ORGANIZATION STRUCTURE & HUMAN RESOURCE PLANNING

The manning table and salary structure of a fully integrated abattoir plant are essential
components that ensure efficient operation, productivity, and regulatory compliance.
The facility encompasses multiple processing and support functions, including
slaughtering (for both cattle and sheep/goats), deboning, freezing, boiled meat
production, rendering, blood meal processing, gelatin and capsule production, and
centralized utilities (steam, water, air, wastewater treatment). To support this complex
operation, a well-structured and hierarchical workforce plan is established, with clear
roles and responsibilities for production, quality assurance, maintenance, logistics,
health and safety, and administrative functions.

The salary and staffing plan accounts for both direct and indirect employees,
categorized under production, technical support, quality, engineering, and administrative
units. The organizational design ensures optimal staffing levels at all units while
maintaining flexibility for shift-based operations and future scaling. The salary scale is
designed competitively based on job category, skill requirements, and market
benchmarks, covering top-level management, middle-level supervisors, skilled
technicians, semi-skilled operators, and support staff. The inclusion of ICT, finance,
procurement, internal audit, and human resource departments ensures a professionally
governed and transparently managed industrial complex, capable of meeting
international market standards and operational sustainability.

6.1. ORGANIZATIONAL STRUCTURE

The proposed organization structure for the envisaged integrated cattle and shoat
slaughtering and meat processing plant will have three services and six functional
departments to be further subdivided into divisions and sections. The services
departments are planning, management information system and internal audit. The
functional departments are Production, Technic, Administrative &Human Resource,
Finance, Marketing & Sales, and Supply.
Among the functional departments the Finance, Marketing and Sales, and Supplies
departments will have two divisions while production will have four divisions and the rest
will have three divisions.
The organizational structure of the envisaged integrated cattle and shoat slaughtering
and meat processing plant is given in Figure 6.1.

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Figure 6. 1: PROPOSED ORGANIZATIONAL STRUCTURE

Board of Directors

Manager
Planning and Monitoring
Management Information
System
Internal Audit

Administration Finance Dept Production Technic Marketing Supplies

and Human Dpt. Department Department and Sales Department
DPTesource Department
Personnel Production
Accounts Division Utility
Division Marketing Procurement
Division Division Division
Division
General Electrical
Service Cost and Quality
and
Division Budget Control
Instrument Sales Warehouse
Division Division
Division Division Division
Human
Resource Production
Workshop
Division Planning
and
and Control
Mechanical
Division
Division

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6.2. HUMANRESOURCE REQUIREMENT ANUAL COST

The number of job positions was determined based on task analysis and bench marking
similar industries. The total human resources requirement and cost is given in Table
6.1. The total number of employees required for running the envisaged plant is
estimated at 123.

Table 6. 1: Human Resource Requirement & Salary

Estimated Total
Number Monthly Estimated
No Department/Section Position
of Staff Salary Monthly
(ETB) Salary (ETB)
General
General Manager 1 180,000 180,000.00
1 Management
General Deputy GM –
1 120,000 120,000.00
2 Management Operations
General Deputy GM – Admin
1 120,000 120,000.00
3 Management & Finance
Production –
Production Manager 1 90,000 90,000.00
4 Slaughterhouse
Production –
Supervisors 4 60,000 240,000.00
5 Slaughterhouse
Production –
Operators 20 20,000 400,000.00
6 Slaughterhouse
Deboning &
Section Head 1 40,000 40,000.00
7 Packaging
Deboning &
Technicians/Packers 15 15,000 225,000.00
8 Packaging
Boiled Meat
Process Supervisor 1 60,000 60,000.00
9 Production
Boiled Meat
Workers 10 15,000 150,000.00
10 Production

Rendering Plant Rendering Engineer 1 35,000 35,000.00

11
12 Rendering Plant Operators 6 20,000 120,000.00
Gelatin & Capsule
Pharma Technologist 2 60,000 120,000.00
13 Plant
Gelatin & Capsule
Operators 10 20,000 200,000.00
14 Plant

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Estimated Total
Number Monthly Estimated
No Department/Section Position
of Staff Salary Monthly
(ETB) Salary (ETB)
Blood Meal
Supervisor 1 60,000 60,000.00
15 Processing
Blood Meal
Operators 6 20,000 120,000.00
16 Processing
Utility (Steam, Water,
Utility Engineer 1 60,000 60,000.00
17 Waste)
Utility (Steam, Water,
Operators 6 20,000 120,000.00
18 Waste)
19 Quality Assurance QA Manager 1 60,000 60,000.00
20 Quality Assurance QA Technicians 4 30,000 120,000.00
Maintenance & Maintenance
1 70,000 70,000.00
21 Engineering Manager
Maintenance &
Technicians 8 30,000 240,000.00
22 Engineering
23 Logistics & Store Logistics Head 1 40,000 40,000.00
24 Logistics & Store Storekeepers 4 15,000 60,000.00
25 HR & Admin HR Manager 1 60,000 60,000.00
26 HR & Admin HR/Admin Staff 3 20,000 60,000.00
Finance &
Finance Manager 1 60,000 60,000.00
27 Accounting
Finance &
Accountants/Cashiers 4 30,000 120,000.00
28 Accounting
29 ICT Department ICT Manager 1 60,000 60,000.00
30 ICT Department ICT Technicians 3 30,000 90,000.00
Internal Auditor
Internal Audit 1 60,000 60,000.00
31 manager
32 Internal Audit Audit 2 30,000 60,000.00
Total 3,620,000.00

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7. IMPLEMENTATION PLAN & SCHEDULE

7.1. Project Organization

The first step to be taken in the execution of the project is the formation of an
appropriate project implementation team. The following important phases are identified
as necessary for the execution of project without any cost or time overruns. These
phases are not mutually exclusive and some degree of over lapping is considered.
• Appraisal of the feasibility report by financial firm;
• Financial closure;
• Detailed planning;
• Procurement packages including inspection;
• Project management and Cost control;
• Commissioning and performance testing.

The project implementation team has to be organized with different functional team in
line with the necessary activities to be executed during the implementation of the
project. The different functions in the project implementation are categorized into four
broad groups, namely, project management, project engineering, procurement and
construction and project quality control.

7.1.1. Project Management Team

The project management team is essential for planning and organizing of the project
and staffing the project with proper manpower and in turn ensure the timely completion
of the project at reasonable cost. The project management team is headed by the
Project manager and assisted by legal advisor, Auditor, financial & administrative team.

7.1.2. Technical, Engineering and Project Quality Control Team

The technical, engineering and project quality control team is responsible for the
preparation of designs, specification and bill of quantities, assisting in tendering and
contracting processes. Quality control involves inspection of any delivery and actual
project progress at planned intervals, checking completion of documentation, training,
commissioning and handover of all the various components of the project. The team
can be assisted by engineering & design consultant.

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7.1.3. Procurement and Supply Team

The procurement and supply team will procure machinery, equipment, factory supplies
and all other requirements for the implementation as per the schedule developed from
foreign and local sources with optimized time and cost schedule.

7.1.4. Administration and Finance

The administration and finance team will recruit and manage local and expatriate project
workers. It also manages and control project related financial transaction.

The implementation team is proposed to have vast experience in implementation of

related manufacturing projects. The team will directly report to the management team
organized by the promoter about the progress of the project implementation core
activities.

7.2. IMPLEMENTATION SCHEDULE

The project implementation schedule covers the activities starting from the project
evaluation and approval up to the trial-run and commissioning. It is envisaged that the
complete implementation program requires a total of 22 months.

7.2.1. Project Office Formation

The formation of implementation team and financial arrangement will be carried out
within 2 months after the approval of the project study and finance is secured.

7.2.2. Plant Machinery and Equipment

Tender document preparation for integrated cattle and shoat slaughtering and meat
processing plant machinery and equipment will start two months after finance is secured
and will take 1 month period. Tender floating will start 3 months after finance is secured
and will be completed within 2 months. Tender evaluation, contract negotiation, signing
and LC opening, which will also start 5 months after finance is secured and will be
completed within 2 months.

Design, engineering and manufacture of integrated cattle and shoat slaughtering and
meat processing plant machinery and equipment will start after 7 months from finance is
secured and will be completed within 7.0 months. Erection of machinery and equipment
will start after completion of the machinery and equipment delivery and will take 2

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months. Delivery of raw materials will be arranged before erection of machinery and
equipment is completed.

7.2.3. Building and Civil Works

1) Design
Tender document preparation and floating for the design of building and civil work will be started
1.0 month before selection of machinery supplier and will be completed in two months. Tender
evaluation, negotiation, awarding and contracting requires 1.0 month. The design of building
and civil work and preparation of working documents will take 3 months.
2) Construction
Tender document preparation for construction of building and civil works will start 1.0 months
after approval of the project and finance is secured. Tender floating for building and civil works
construction will start after 2 months from project approval and will take 1 month. Building and
civil works construction will commence after 3 months from approval of the project and will take
11 months for completion.
Recruitment and training of manpower will start one-month before the start of erection of
machinery and equipment and will continue up to commissioning and start up. The plant will
start commissioning 16 months after the project approval and will be completed in 1 month.
Technology and knowhow transfer will be conducted starting from the erection and
commissioning activities for 2 months duration.

Finally, the integrated cattle and shoat slaughtering and meat processing plant will start
production operation at the end of 22th months from the approval of the project and finance is
secured. More over Project activities will be handled by project management tools so as to
optimize time and project cost utilization towards realization of the project on the ground with
minimum project implementation cost and time as per the planned duration. The project
implementation schedule is given in Figure 7.1.

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Figure 7. 1: Project implementation schedule

Duration Month
No: Activity
(Month) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

1 Approval of Project

Implementation team
formation,
2 employment of 2
consultant and
Financial Arrangement

Machinery, Equipment,
tools and raw materials
3
Procurement and
Erection

Tender document
3.1 1
preparation

Tender Preparation
3.1 2
and Floating

Tender Evaluation,
3.2 Awarding, Negotiation, 2
and Signing Contract

Design, Manufacture
3.3 and delivery of 9
Machinery and

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Duration Month
No: Activity
(Month) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Equipment

Procurement of Raw
3.4 3
materials for testing

Erection Machinery
3.5 2
and Equipment

Plant testing and

3.6
Commissioning

Dry, wet and

3.6.1 1
performance test

Building and civil

4
works Design

Tender Preparation
4.1 and Floating 2
preparation

Tender Evaluation,
4.2 Awarding, Negotiation, 1
and Signing Contract

Design of building and

4.3 civil work and working 2
document preparation

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Duration Month
No: Activity
(Month) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Building, civil works

5 and infrastructure
construction

Tender Preparation
5.1 2
and Floating

Tender Evaluation,
5.2 Awarding, Negotiation, 2
and Signing Contract

Building and civil work

5.3 10
construction

Recruitment,
6 technology knowhow 3
transfer and training

Hand over and start of

7 1
operation

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7.3. PROJECT IMPLEMENTATION COST

Project implementation costs are pre-operation expenses which include costs of project
management, detailed engineering of equipment and civil works, supervision of the
construction of civil works and erection and commissioning of machinery and equipment
consultancy. These costs are spread during the project implementation period based on
the proposed start and duration of their respective activities shown in the
implementation schedule. The brief description and cost of different implementation
costs are given hereunder.

7.3.1. Project Follow-Up and Office Running Costs

It is foreseen to set-up a project office for the implementation of the envisaged
integrated cattle and shoat slaughtering and meat processing plant. The project office
will undertake all activities related to the implementation of the project such as, bidding,
evaluation of the tender document, negotiation, acquisition, erection and commissioning
of the plant machinery and equipment. One of the running costs of the project office is
the project staff salary. The proposed project staff and workers, and their estimated
salary along with the period each of them will involve in the implementation of the
project is given in Table 7.1. The project office also needs stationery, travel and
communication and office furniture and equipment to facilitate the project
implementation process.
Table 7. 1: Project Team Salary

Duration Monthly
No Job Title Qty Total Amount
(Month) salary

1 Project management team salary

1.1 Project manager 1 22 120,000.00 2,640,000.00

1.2 Project coordinator 1 22 90,000.00 1,980,000.00
1.3 Executive secretary 1 22 20,000.00 440,000.00

1.4 Senior Legal advisor 1 22 40,000.00 880,000.00

2 Finance & Administrative Team

2.1 Senior accountant 1 18 40,000.00 720,000.00

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Duration Monthly
No Job Title Qty Total Amount
(Month) salary
2.2 Junior accountant 1 18 30,000.00 540,000.00
2.3 Casher 1 18 15,000.00 270,000.00
Administrative and General service
2.3 1 18 40,000.00 720,000.00
Expert
3 Procurement and Supply Team

3.1 Foreign Procurement officer 1 18 40,000.00 720,000.00

3.2 Local Procurement officer 1 18 30,000.00 540,000.00

3.3 Store keeper 1 18 20,000.00 360,000.00

4 Engineering

4.1 Senior Mechanical engineer 1 22 50,000.00 1,100,000.00

4.2 Senior Electrical Engineer 1 22 50,000.00 1,100,000.00

4.3 Senior Automation Engineer 1 22 50,000.00 1,100,000.00

5 Security
5.1 Security Officer 1 18 20,000.00 360,000.00
5.2 Security Guards 8 18 15,000.00 2,160,000.00
Sub-Total 15,630,000.00

7.3.2. Design, Erection and Commissioning Cost

This part of the implementation cost covers the cost of engineering, design, erection,
and commissioning of the plant and design and construction supervision of the building
and civil works. The cost estimate of design, erection and commissioning of production
machinery and equipment and design and supervision of building and civil works of the
plant is given in Table 7.2.

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Table 7. 2: Design, Erection and Commissioning Cost

number of
Item Period daily rate Unit Rate
S/N persons Total (Birr)
Description (months) (USD) (Birr)
/machines
1 Erection and Commissioning (Supplier experts)
1.1 Accommodation 3 6 200 810,000.00 14,580,000.00
1.2 Peridium 3 6 350 1,417,500.00 25,515,000.00
Air Transport
1.3 6 1,500 202,500.00 1,215,000.00
(round trip)
Sub Total 41,310,000.00
2 Loading/unloading, Erection and Commissioning Machinery
2.1 Forklift 4 1 24,000.00 2,880,000.00
2.2 Crane 4 1 96,000.00 11,520,000.00
Sub Total 14,400,000.00
Design and
construction
3 supervision (1% 15,254,925.00
of Construction
Cost)
Total 70,964,925.00

7.3.3. Total implementation cost

The total implementation cost is the sum of project office running and follow up cost and
the design, erection and commissioning of both machinery and equipment and building
and civil work.
Total Implementation Cost 86,594,925.00

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8. FINANCIAL ANALYSIS

8.1. General
Financial feasibility analysis is an analytical tool used to evaluate the economic viability
of an investment. It consists of evaluating the financial condition and operating
performance of the investment and forecasting its future condition and performance. A
financial decision is dependent on two specific factors, expected return and expected
risk, and a financial feasibility analysis is a means for examining those two factors
In order to evaluate the financial feasibility of an investment project, relevant
measurements or criteria need to be specified. Financial feasibility can be measured on
the basis of accounting profits (from financial statements) or the projected cash flows of
the project. Financial statements are records of actual financial activities of a business
and are therefore not available for prospective projects, but projections of statements
can be used to gain a better understanding of a project’s finances. The cash flows of the
project can also be projected and used to analyze the performance of the prospective
project. There are several different cash flow based methods that can be used to
measure the financial feasibility of an investment project, such as Net Present Value
(NPV) and Internal Rate of Return (IRR). The payback period is another method that is
used in financial feasibility analysis.
Accordingly, based on the results of the other chapters of the feasibility study and
existing government regulations, the financial analysis of the project has been carried
out.

8.2. Basic Assumptions for Financial Analyses

8.2.1. Project Life

According to the implementation plan of the project, the time allotted for the
implementation of the project, up to final commissioning is 22 months. With regard to
operational life of the project, a standard assumption of 15 years is considered. Hence,
the costs and benefits of the project are computed over 17 years.

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8.2.2. Repair and Maintenance Cost

The annual repair and maintenance cost of the plant is estimated based on the following
rates.

Item Rate

✓ Building and civil works 1% of the total cost

✓ Machinery and equipment 3% of the total cost

✓ Vehicles 10% of the total cost

8.2.3. Depreciation and Amortization

Straight-line depreciation method is applied using the following rates.

✓ Buildings and associated Civil works 5%, linear to scrap Value

✓ Machinery and Equipment 10%, linear to scrap Value

✓ Vehicles 20% linear to scrap Value

✓ Pre-production expenditure 20%, linear to scrap value

8.2.4. Terminal (Salvage Value)

Salvage value of the project is computed based on the following rates

✓ Buildings and associated Civil works 50%

✓ Machinery and Equipment 25%

8.2.5. Working Capital

The working capital requirement of the project during operation is calculated on the
basis of the minimum days of coverage needed for the different elements of the working
capital. Hence, the minimum days are specified as follows:-

Table 8. 1: Minimum Days of Coverage

Minimum
Sr.
Item Days of
No.
Coverage
1 Raw Materials
-Local 30 days
- Foreign 120 days
2 Finished product 5 days
3 Cash in hand 5 days

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Minimum
Sr.
Item Days of
No.
Coverage
4 Accounts 30 days
receivables
5 Accounts payable 30 days

8.2.6. Source of Finance

The investment requirement of the project is assumed to be financed both from bank
loan and equity capital. Accordingly, it is assumed that the source of finance will be 30
per cent from equity and 70 per cent from long-term bank loan. The type of loan is
further assumed to be a constant principal bank loan, with a loan repayment period of
ten years. The annual interest rate including the various fees is taken to be 20 per cent.
The interest accrued during the reconstruction period is capitalized.

8.2.7. Discounting Rate

The financial discount rate reflects the opportunity cost of capital, defined as ‘the
expected return forgone by not investing in other potential investment activities such as
marketable securities for a given capital. There are three possible ways to calculate this
rate:

✓ The first one estimates the weighted average cost of capital. This may be the
real return on government bonds, or the long-term real interest rate on
commercial loans (if the project needs private finance), or a weighted average of
the two rates;

✓ The second approach establishes a maximum limit value for the discount
rate as it considers the return cost from the best investment alternative;

✓ The third approach is to determine a cut-off rate as a planning parameter. This

implies using a simple rule-of-thumb approach, i.e. a specific interest rate or a
rate of return from a well-established issuer of securities in a widely traded
currency, and then applying a multiplier to this minimum benchmark.

Accordingly, considering the nature of the project under consideration and availability of
information, the Weighted Average Cost of Capital (WACC) method is used to estimate

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the appropriate discount rate. The WACC is the weighted average of the cost of equity
and the cost of debt based on the proportion of debt and equity in the expected capital
structure of the investment project.

The source of capital is usually made up of two components, i.e., debt and equity.
Lenders and equity holders each expect a certain return on the funds or capital that has
been provided. The cost of capital is the expected return to shareholders and to lenders,
hence WACC represent the return both financers i.e. equity owners and lenders expect.

Accordingly weighted average of the rates of returns expected by the two sources of
funding (cost of debt and cost of equity) has to be calculated to arrive at WACC. It is
relatively easy to determine the cost of debt as it is represented by the interest rate
charged by banks.

Cost of equity, on the other hand, can be difficult to estimate as share capital carries no
"explicit" cost. Unlike debt, which is paid in the form of predetermined interest, equity
does not have a concrete cost. However, shareholders expect to obtain a certain return
on their equity investment. The most commonly accepted method for calculating cost of
equity uses the following equation:

Re = Rf + ß (Rm- Rf)

Where:

Re = derived cost of equity

Rf– Risk-free rate = the amount obtained from investing in securities considered free
from credit risk, such as government treasury bills

ß – Beta = is a measure of the systematic risk inherent in a project, and will vary from
project to project. The Beta is a measure of the variance of the return of a project
compared with the returns of every project in the market. The market beta is one, with
riskier assets having a beta greater than one and less risky assets having a beta lower
than one.

(Rm – Rf) - Equity market risk premium = The equity market risk premium represents
the returns investors expect to compensate them for taking extra risk by investing in the

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stock market over and above the risk-free rate. In other words, it is the difference
between the risk-free rate and the market rate.

Once the cost of debt and the cost of equity are determined the WACC is calculated by
applying the following formula:

WACC = [(E/V) x Re] + [((D/V) x Rd) x (1-Tc)]

Where:

✓ Re = Cost of equity,

✓ Rd = Cost of debt,

✓ E = Market value of equity,

✓ D = Market value of debt,

✓ V = E + D,

✓ E/V = Percentage of financing that is equity,

✓ D/V = Percentage of financing that is debt, and

✓ Tc = Corporate tax rate.

Cost of Debt: the cost of debt applied is the interest rate banks charge for long term
lending. Banks in Ethiopia charge interest rates ranging from 12% to 20%. Accordingly,
12%, 15%, 17% and 20% is considered to determine the lowest to highest expected
rate of return.

Risk Free Rate: Rates applicable to government treasury notes, interest rates of bonds
issued by the government or interest rates offered by banks for fixed deposits are
considered as possible bases for estimating the risk free component of the discounting
rate. According to NBE, the weighted average annual yield of T-bill yield at October 02,
2024 was 13.674%. Hence, 14% is considered as a proxy of a risk free rate in the
Ethiopian context.

Market Risk Premium: is the return on investment that investors require above the risk
free rate. This can vary quite widely and determining this part of the discount rate is

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difficult. The premiums applied to different types of companies/businesses show

significant differences because of variations in the following factors:

✓ Industry life cycle: start-up or growth or mature business stage;

✓ Market volatility or reliability of forecast; and

✓ Business environment risks (political, economic and social)

Hence, in order to select the most appropriate rate in-depth understanding of the
business environment in which the project operates is required. Estimated rates for risk
premium range between the lowest 6-8% and the highest 20-25%.

Accordingly, by giving due consideration to the inherent characteristics of the meta

industry, a low, lower medium, higher medium and high risk premium of 12%, 14%, 16%
and 18%, respectively, is considered.

ß – Beta: The Beta of an investment is a measurement of its volatility of return relative

to the entire market. There is no available information on Beta to be used for different
sectors/companies in Ethiopia. However, other countries experience can be considered.

Beta of a company could range from 0 to as high as 3. There are also instances where
a company could have a negative Beta. Where financial markets exists the beta of most
traded stocks in the sugar industry, range from 1.2 to 1.7. Accordingly, the lowest Beta
i.e. 1.5 is used as a base for determining different ranges of discounting rates.

Accordingly, the cost of debt, risk free rates, risk premium rates, Beta and equity
financing ratio used for estimating different ranges of discounting rates is summarized in
Table 8.2.

Table 8. 2: Summary of Variables Used for Estimating Ranges of Discounting

Rates

Items Low Lower Higher High

Med Med
Cost of debt 12.00% 15.00% 17.00% 20.00%
Risk free rate 14.00% 14.00% 14.00% 14.00%
Market risk premium 12.00% 14.00% 16.00% 18.00%
Beta
rate 1.5 1.5 1.5 1.5

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Items Low Lower Higher High

Med Med
Equity financing 50% 60% 70% 80.00%
Debt financing 50% 40% 30% 20.00%

Applying the above equation and assumptions will give the following discounting rates.

✓ Low rate: 14.0%,

✓ Lower medium rate: 17.97%,

✓ Higher medium rate: 21.93%, and

✓ High rate: 26.42%.

The average of the above alternative discounting rates is 20%, however, in order to be
conservative, 25% discounting rate is adopted.

8.2.8. Income Tax

According to the latest Investment Incentives of the government, the project is entitled
to the following incentives:

➢ Income tax exemption for 5 years

➢ Losses carry forward for 3 years, and

➢ Exemptions from payment of custom duty on machineries and equipment

➢ In the remaining years a 30% income tax is considered.

8.2.9. Revenue
The annual revenue to be generated by the envisaged project at full capacity operation
is estimated at Birr 49.993 billion. The projected revenue as per the assumed capacity
utilization is shown in Table 8.3.

Table 8. 3: Projected Annual Revenue

Sr. Year and

Products Year 1 Year 2 Year 3
No. Then After
1 Cattle
1.1 Fresh carcass 12,004,200 13,851,000 16,621,200 18,468,000
1.2 Boiled meat 5,626,800 6,492,825 7,791,525 8,656,875
1.3 Deboned and frozen meat 6,790,196 7,834,793 9,401,366 10,445,963

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Sr. Year and

Products Year 1 Year 2 Year 3
No. Then After
Sub Total 24,421,196 28,178,618 33,814,091 37,570,838
2 Shoats
2.1 Chilled carcass 3,351,665 3,866,954 4,640,868 5,156,156
2.2 Fresh carcass 1,209,128 1,395,529 1,674,776 1,860,469
Sub Total 4,560,793 5,262,482 6,315,644 7,016,625
3 By-products - - - -
3.1 Red and green offal 2,148,120 2,478,600 2,974,320 3,304,800
3.2 Blood meal 86,873 100,238 120,285 133,650
3.3 RBD tallow 438,818 506,250 607,500 675,135
3.4 Bone and meat meal 274,253 316,440 379,721 421,909
Galantine and hard
3.5
capsule 566,325 653,400 783,675 870,750
Sub Total 3,514,388 4,054,928 4,865,501 5,406,244
Grand Total 32,496,377 37,496,027 44,995,237 49,993,706

8.3. Result of the Financial Analysis

The financial implication of the project and its viability is evaluated and tested based on
the investment plan detailed out in various parts of this report and the above
assumptions. Accordingly, the financial analysis results are as discussed below.

8.3.1. Investment Cost

The total investment cost of the project is estimated at Birr 7.696 billion (see Table 8.4).
From the total investment cost the highest share (Birr 4.068 billion or 52.86%) is
accounted by fixed investment cost followed by initial working capital (Birr 3.350 billion
or 43.53%) and pre-operating cost (Birr 277.40 million or 3.60%).
Table 8. 4: Investment Costs in 000 Birr

Sr. Investment Cost

Items
No. In 000 Birr % share
1 Fixed investment
1.1 Buildings and civil works 1,601,767.13 20.81
1.2 Machinery and equipment 2,077,262.85 26.99
1.3 Vehicles 383,433.75 4.98
1.4 Office furniture and equipment 5,850.08 0.08
Sub Total 4,068,313.80 52.86
2 Pre operating cost

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Sr. Investment Cost

Items
No. In 000 Birr % share
2.1 Pre operating cost1 90,924.67 1.18
2.2 Interest during construction 186,483.39 2.42
Sub Total 277,408.06 3.60
3 Initial Working capital2 3,350,569.98 43.53
Grand Total 7,696,291.84 100

Regarding specific investment items, from the total investment cost the highest share
(43.53%) is accounted by initial working capital followed by machinery and equipment
(26.99%), building and related civil works (20.81%), vehicles (4.98%) and capitalized
interest during construction (2.42%) and pre-operating cost (1.18%). The remaining
0.08% is accounted by the cost of office furniture and equipment (see Figure 8.1)

Figure 8. 1: % Share of Investment Items from the Total Investment Cost

1
Pre-production cost includes project implementation cost such as installation, startup, commissioning,
project engineering, project management, etc.
2
The total working capital required at full capacity operation is Birr 5.158 billion. However, only the initial
additional working capital of Birr 3.350 billion during the first year of production is assumed be funded
through external sources during the remaining years the working capital requirement will be financed by
funds generated internally ( for detail working capital requirement see Appendix 8.1).

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8.3.2. Production Cost

The total cost of production at 100% capacity utilization is estimated at Birr 46.983
billion. At full capacity operation, from the total production cost, the highest share
(96.51%) is accounted by the cost of raw material and input followed by the cost of
finance (1.62%), depreciation (0.96%), cost of utilities (0.44%), repair and maintenance
(0.19%), marketing and distribution (0.13%), cost of labour (0.09%), labour overhead
cost (0.02%),. The remaining 0.03% is collectively accounted by administrative and
land lease cost. Table 8.5 shows the total costs of production for year seven. The costs
of production for the other years of operation are shown in Appendix 8.2.
Table 8. 5: Costs of Production (Year Seven)

Item Cost % share

Raw Material 45,342,974 96.51
Utilities 206,133 0.44
Repair and
89,169 0.19
maintenance
Labour 43,440 0.09
Labour overhead 10,860 0.02
Administrative costs 10,000 0.02
Marketing and
59,992 0.13
distribution costs
Land lease cost 5,391 0.01
Total Operating
45,767,958 97.41
Costs
Depreciation 453,111 0.96
Cost of Finance 762,069 1.62
Total 46,983,137 100

8.3.3. Source of Finance

The investment requirement of project would be financed by equity capital and long
term bank loan. Accordingly, from the total 7.509 billion financial requirements
(excluding interest during construction) the share of equity capital is envisaged to be
Birr 2.252 billion or 30% of the total investment requirement. The remaining Birr 5.256
billion or 70% of the total investment is planned to be financed through bank loan (Table
8.7)

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Table 8. 6: Financial Flow (In 000’ Birr)

Source of Capital
Year Long-term Total
Equity capital
Loan
One 2,252,942.53 423,825.88 2,676,768.42
Two - 1,482,470.05 1,482,470.05
Three - 3,350,569.98 3,350,569.98
Sub Total 2,252,942.53 5,256,865.91 7,509,808.45
Capitalized
Interest during 186,483.39 186,483.39
construction
Grand Total 2,252,942.53 5,443,349.30 7,696,291.84

8.3.4. Repayment Schedule

It is assumed that the additional investment requirement of the project would be
financed by bank loan. The total amount of bank loan including interest will be fully paid
back within ten years’ time (see Table 8.8).

Table 8. 7: Repayment Schedule (In 000’ Birr)

Capitalized Debt Interest

Year Disbursement Repayment
Interest Balance Payable
Year 1 423,826 84,765 - 508,591 -
Year 2 1,482,470 101,718 - 2,092,779 -
Year 3 3,350,570 544,335 4,899,014 418,556
Year 4 - - 544,335 4,354,679 979,803
Year 5 - - 544,335 3,810,345 870,936
Year 6 - - 544,335 3,266,010 762,069
Year 7 - - 544,335 2,721,675 653,202
Year 8 - - 544,335 2,177,340 544,335
Year 9 - - 544,335 1,633,005 435,468
Year 10 - - 544,335 1,088,670 326,601
Year 11 - - 544,335 544,335 217,734
Year 12 - - 544,335 - 108,867
Year 13 - - - - -
Year 14 - - - - -
Year 15 - - - - -
Total 5,256,866 186,483 5,443,349 5,317,570

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8.3.5. Profitability
The income statement shows the performance an investment project in each period, i.e.
it reveals the profit or loss generated by the project. The performance is measured at
regular intervals and in this model it is done annually. Investors can use figures from the
income statement to determine whether their investment will give them an acceptable
return.
Based on the projected profit and loss statement shown in Appendix 8.3, the project will
generate a profit throughout the assumed operational life. The annual net profit after tax
increases from Birr 1.841 million during the first year of operation to Birr 2.923 billion
during the last year of operation (see Figure 8.2).
Figure 8. 2: Projected Net Profit (in Million Birr)

8.3.6. Cash Flow

The cash flow statement shows the flow of cash and cash equivalents to and from the
project. It shows how cash is generated and used during each period. The statement
shows the cash flow related to operating, investing and financing activities.
As can be seen from Table 8.10, the projected cash flow shows that the envisaged
project would generate positive net cash flows throughout the operation years. The
cumulative cash flow towards the end of the assumed operation period amount to Birr
35.711 billion. At the end of the assumed project life, including scrap value, this amount

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will rise to Birr 42.362 billion (see Table 8.10). For detailed cash flow statement see
Appendix 8.4.

Table 8. 8: Net and Cumulated Cash Flow

In 000' Birr
Cumulative
Year Net Cash
Net Cash
Flow
Flow
1 - -
2 - -
3 1,771,418 1,771,418
4 1,104,124 2,875,542
5 1,603,424 4,478,966
6 2,404,481 6,883,447
7 3,027,665 9,911,112
8 2,043,867 11,954,980
9 2,119,617 14,074,596
10 2,195,321 16,269,917
11 2,270,974 18,540,891
12 2,346,572 20,887,463
13 2,966,444 23,853,908
14 2,965,708 26,819,616
15 2,964,897 29,784,513
16 2,964,006 32,748,519
17 2,963,026 35,711,545
Scrap 6,651,254 42,362,798

8.3.7. Discounted Cash Flow

a) Internal Rate of Return

The internal rate of return (IRR) is a method of calculating rate of return. The term
internal refers to the fact that its calculation does not involve external factors, such as
inflation or the cost of capital. The IRR of an investment or project is the "annualized
effective compounded return rate" or rate of return that sets the net present value of all
cash flows (both positive and negative) from the investment equal to zero. Equivalently,
it is the discount rate at which the net present value of future cash flows is equal to the
initial investment, and it is also the discount rate at which the total present value of costs
(negative cash flows) equals the total present value of the benefits (positive cash flows).

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A project is a good investment proposition if its IRR is greater than the cutoff rate
considered.

Accordingly, the IRR of the project, which is computed to be 38.55%, indicates the
financial viability of the project (see Appendix 8.5).

b) Net Present Value

Net present value (NPV) is defined as the total present (discounted) value of a time
series of cash flows. NPV aggregates cash flows that occur during different periods of
time during the life of a project in to a common measuring unit i.e. present value. It is a
standard method for using the time value of money to appraise long-term projects. NPV
is an indicator of how much value an investment or project adds to the capital invested.
In principle a project is accepted if the NPV is non-negative.

Accordingly, the net present value of the project at 25% discount rate is found to be Birr
2.777 billion, which is acceptable (see Appendix 8.5).

c) Payback Period

The payback period, also called pay – off period is defined as the period required for
recovering the original investment outlay through the accumulated net cash flows
earned by the project.

Payback period is the time required to recover the original investment outlay through the
annual cash flows. It is a measure of project risk. As the more distant future increases
uncertainty, some investors seek to recover their investment in a relatively short period
of time.
Accordingly, based on the projected cash flow it is estimated that the total investment
will be fully recovered within four years, which is a reasonably short period of time and
will contribute to minimalize the associated risks of the project.

8.3.8. Balance Sheet

The positive financial performance of the project is manifested in the balance sheet. As
can be seen from the projected balance sheet depicted in Appendix 8.6, the net worth of
the project, which was Birr 2.253 billion at the beginning, will rise to Birr 42.520 billion at
the end of the assumed project life, which means, as compared to the initial, by the end

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of the assumed project life, the net worth of the project will increase by about twentyfold,
registering an average annual growth rate of 21.55%. The trend in net worth of the
project is graphically shown in Figure 8.3.
Figure 8. 3: Trend in Net Worth (in Million Birr)

Important financial efficiency ratios like current assets to current liabilities, and net cash
flow to sales all show that the project is highly liquid and has sound financial
performance. Return on asset (ROA) ratio is a financial ratio that shows the percentage
of profit that a company earns in relation to its overall resources (total assets). It is a key
profitability ratio which measures the amount of profit made by a company per Birr of its
assets. Unlike other profitability ratios, such as return on equity, ROA measurements
include all of a company's assets – including those which arise from liabilities to
creditors as well as those which arise from contributions by owners. Hence, ROA gives
an idea about the efficiency of management in using the company’s assets to generate
profit. In general higher values of return on assets show that business is more
profitable. An increasing trend of ROA also indicates that the profitability of the company
is improving. Conversely, a decreasing trend means that profitability is deteriorating.
During the assumed project life, the ROA of the project ranges from 20.66% to 6.87%,
with a mean ROA of 13%, which can be considered a healthy rate of return.

Return on Capital Employed (ROCE) is the ratio of net operating profit to capital
employed. ROCE indicates the profitability taking into consideration the overall capital.

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A higher value of return on capital employed is favorable indicating that a project

generates more earnings per Birr of capital employed. A lower value of ROCE indicates
lower profitability. The ROCE of the project increases from 31.50% to 182.98%, with an
average ROCE of 122.78%, which is exceptional.

Return on Equity (ROE) measures the after-tax return on investment to the equity
capital providers. In other words, ROE shows the efficiency of a project in terms of
generating profits to investors. The earning of a satisfactory return is the most desirable
objective of a business. Hence, it is preferred that ROE be as high as possible.
Regarding the envisaged project, the average ROE of 119.15%, indicates that the
project will generate adequate return to its investors. For details see Figure 8.4.

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Figure 8. 4: Trend in ROA, ROCE and ROE

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8.3.9. Break-Even Analysis

The break-even analysis establishes a relationship between production costs and
revenues. It indicates the level of production at which costs and revenue are in
equilibrium. Break-even analysis entails the calculation and examination of margin of
safety based on the revenues collected and associated costs i.e. the minimum revenue
and capacity utilization that have to be attained to become profitable). Hence, the lower
the break-even point for sales value and capacity utilization is the higher the margin of
safety.

Accordingly, using the projected full capacity revenue and operating costs of year three,
the break-even point for sales value and capacity utilization is computed as followed.

Brake Even Sales Value = Fixed Cost + Financial Cost = Birr 1,447,368,457
Variable Margin ratio (%)
Brake Even Capacity utilization = Brake even Sales Value X 100 = 46%
Sales Revenue

8.3.10. Sensitivity Analyses

The reliability of the financial analyses depends on the accuracy of the cash flow
calculations, i.e. the projected cash flows and their timings. Each input parameter is
affected by many risks and uncertainties, which may have a significant impact on the
outcome of the financial feasibility analysis, and therefore needs to be accurately
captured in the decision-making process.

Sensitivity analysis can give decision makers an insight into project risk associated with
changes in input parameters. As the values of input parameters are often subject to
great uncertainty it can be very beneficial to examine the project’s outcome given a
change in these parameters. Sensitivity analysis also highlights which parameters
influence the results the most and should therefore be considered key parameters.

Sensitivity analysis is conducted by determining how much output values change

relative to a given change in input parameters. First a base case is defined from the
most likely values for each variable. These are the same values as used for the financial
feasibility assessment described above. One variable at a time is changed by a

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specified percentage, above the most-likely value, and other variables are held constant
at the base case value. The output is then calculated for the new value; in this case the
output being either NPV or IRR. This is done for all variables of interest and for the
percentage change in variable that is assumed possible.

Accordingly, the change in IRR for unit change of operation cost investment cost and
revenue have been tasted and the result shows that the project is more sensitive to
change in revenue and production cost. Nevertheless, the project can sustain a cost
escalation by about 14% in operating cost and 11% decrease in revenue and still be
viable. On the other hand the project can sustain an investment cost increase of about
50% in and still be viable.

Hence, it can be concluded that the envisaged project can absorb a substantial shock
that might arise due to unforeseen circumstance that might lead to an increase in
investment and operating costs and decrease in revenue, which can be considered a
major strength. Likewise, any positive change in selling price and decrease in
production and fixed investment cost will tremendously improve the financial
performance of the project.

8.4. Economic/Social Impact

The economic impact of the project can be viewed in a number of ways. It can be
viewed through its specific impact such as employment generation and increasing
government revenue. Moreover, other benefits such as the creation of conducive
environment for the development of the country in general and the region in particular
should also be taken into account.

The project creates employment opportunity for 123 persons with a total annual wage
bill of Birr 54.30 million (including benefit), which considering the 15 years project life,
will become a total of Birr 814.50 million.

Moreover, the project will also create foreign currency earning effect to the country by
exporting its products to the international market. Assuming that only the meat and
meat products will be exported, at full capacity operation, the envisaged project will
annually export 63,315 tons of cattle meat (34,200 tons of fresh carcass, 12,825 tons of

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boiled meat and 16,290 tons of deboned and frozen meat) and 10,500 tons of sheep
and goat meat (7,875 tons of chilled carcass and 2,625 tons of fresh carcass), valued at
a total of Birr 7.016 billion or USD 57.98 million3. Hence, considering the assumed
project life of 15 years, the total foreign currency earned by the project will be Birr
105.249 billion or USD 779.62 million.

At full capacity operation the envisaged project will require 345,000 heads of cattle and
690,000 heads of sheep and goats, annually, which will be purchased at a total cost of
Birr 44.850 billion. Therefore, it can be concluded that by providing a guaranteed
market, the project will immensely contribute to the development of the livestock
subsector.

Furthermore, during the assumed project life, the project, will generate a total of Birr
12.052 billion in terms of corporate tax and also contributes in the form of payroll tax.

In addition from the above direct impact, the indirect and induced economic/social
impact as measured by value of output, value added, employment, wages & salaries
and government tax is found to be huge.

Hence, from the above discussion, it can be concluded that the envisaged project
creates a significant socio economic benefit and will have a substantial contribution to
the development of the country.

3
At an exchange rate of Birr 135 per one USD

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APPENDICES

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Appendix 8. 1: Net Working Capital ( in 000 Birr)

Item Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Total inventory 2,422,433 2,795,115 3,354,138 3,726,820 3,726,820 3,726,820 3,726,820 3,726,820

Accounts receivable 541,606 624,934 749,921 833,228 833,228 833,228 833,228 833,228

Cash-in-hand 407,994 470,604 564,458 626,958 626,966 626,974 626,983 626,993

Current Assets 3,372,033 3,890,653 4,668,516 5,187,006 5,187,014 5,187,022 5,187,031 5,187,041

Accounts Payable 21,463 23,954 27,320 29,133 29,133 29,133 29,133 29,133

Current Liabilities 21,463 23,954 27,320 29,133 29,133 29,133 29,133 29,133

Total Net Working Capital 3,350,570 3,866,699 4,641,196 5,157,873 5,157,880 5,157,889 5,157,898 5,157,907

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Appendix 8.1: Cont.…….d

Item Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17

Total inventory 3,726,820 3,726,820 3,726,820 3,726,820 3,726,820 3,726,820 3,726,820

Accounts receivable 833,228 833,228 833,228 833,228 833,228 833,228 833,228

Cash-in-hand 627,003 627,015 627,028 627,043 627,059 627,076 627,095

Current Assets 5,187,052 5,187,063 5,187,077 5,187,091 5,187,107 5,187,124 5,187,143

Accounts Payable 29,133 29,133 29,133 29,133 29,133 29,133 29,133

Current Liabilities 29,133 29,133 29,133 29,133 29,133 29,133 29,133

Total Net Working

5,157,918 5,157,930 5,157,943 5,157,958 5,157,973 5,157,991 5,158,010
Capital

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Appendix 8. 2: Production Cost ( in 000 Birr)

Item Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Material and inputs 29,472,933 34,007,230 40,808,676 45,342,974 45,342,974 45,342,974 45,342,974 45,342,974

Utility 133,986 154,599 185,519 206,133 206,133 206,133 206,133 206,133

Repair and 77,027 80,878 84,922 89,169 89,169 89,169 89,169 89,169
maintenance
Labour 40,023 44,367 48,711 43,440 43,440 43,440 43,440 43,440

Labour overhead 6,516 7,602 8,688 10,860 10,860 10,860 10,860 10,860

Administrative costs 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000

Marketing and 38,996 44,995 53,994 59,992 59,992 59,992 59,992 59,992
distribution
Land lease cost 4,050 4,455 4,901 5,391 5,930 6,523 7,175 7,892

Total Operating 29,783,531 34,354,127 41,205,412 45,767,958 45,768,497 45,769,090 45,769,742 45,770,459
Costs
Depreciation 453,111 453,111 453,111 453,111 453,111 40,044 40,044 40,044

Cost of Finance 418,556 979,803 870,936 762,069 653,202 544,335 435,468 326,601

Total 30,655,197 35,787,041 42,529,458 46,983,137 46,874,809.12 46,353,469 46,245,254 46,137,104

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Appendix 8.2: Cont.…….d

Item Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17

Material and inputs 45,342,974 45,342,974 45,342,974 45,342,974 45,342,974 45,342,974 45,342,974
Utility 206,133 206,133 206,133 206,133 206,133 206,133 206,133
Repair and maintenance 89,169 89,169 89,169 89,169 89,169 89,169 89,169
Labour 43,440 43,440 43,440 43,440 43,440 43,440 43,440
Labour overhead 10,860 10,860 10,860 10,860 10,860 10,860 10,860
Administrative costs 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Marketing and distribution 59,992 59,992 59,992 59,992 59,992 59,992 59,992
Land lease cost 8,682 9,550 10,505 11,555 12,711 13,982 15,380
Total Operating Costs 45,771,249 45,772,117 45,773,072 45,774,122 45,775,278 45,776,549 45,777,947
Depreciation 40,044 40,044 40,044 40,044 40,044 40,044 40,044
Cost of Finance 217,734 108,867 - - - - -
Total 46,029,027 45,921,028 45,813,116 45,814,166 45,815,322 45,816,593 45,817,991

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Appendix 8. 3: Net Income Statement ( in 000 Birr)

Item Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Sales Revenue 32,496,377 37,496,027 44,995,237 49,993,706 49,993,706 49,993,706 49,993,706

Less Variable Costs 29,769,481 34,339,672 41,190,511 45,752,567 45,752,567 45,752,567 45,752,567
Variable Margin 2,726,896 3,156,355 3,804,726 4,241,139 4,241,139 4,241,139 4,241,139
In % Of Sales Revenue 8.39 8.42 8.46 8.48 8.48 8.48 8.48
Less Fixed Costs 467,161 467,566 468,011 468,501 469,040 56,567 57,219
Operational Margin 2,259,735 2,688,789 3,336,715 3,772,638 3,772,099 4,184,572 4,183,920
In % of Sales Revenue 6.95 7.17 7.42 7.55 7.55 8.37 8.37
Financial Costs 418,556 979,803 870,936 762,069 653,202 544,335 435,468
Gross Profit 1,841,179 1,708,987 2,465,779 3,010,569 3,118,897 3,640,238 3,748,452
In % of Sales Revenue 5.67 4.56 5.48 6.02 6.24 7.28 7.50
Income Tax - - - - - 1,092,071 1,124,536
Net Profit 1,841,179 1,708,987 2,465,779 3,010,569 3,118,897 2,548,166 2,623,917
In % of Sales Revenue 5.67 4.56 5.48 6.02 6.24 5.10 5.25

Ratios (%)
Net profit to equity 81.72 75.86 109.45 133.63 138.44 113.10 116.47
Net profit to net worth 81.72 75.86 60.23 51.88 37.72 22.59 18.22
Net profit+ interest to
81.83 61.87 85.72 109.69 126.31 122.08 147.07
investment

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Appendix 8.3 Cont.……d

Item Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17

Sales Revenue 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706
Less Variable Costs 45,752,567 45,752,567 45,752,567 45,752,567 45,752,567 45,752,567 45,752,567 45,752,567
Variable Margin 4,241,139 4,241,139 4,241,139 4,241,139 4,241,139 4,241,139 4,241,139 4,241,139
In % Of Sales
8.48 8.48 8.48 8.48 8.48 8.48 8.48 8.48
Revenue
Less Fixed Costs 57,936 58,726 59,594 60,549 61,599 62,755 64,026 65,424
Operational Margin 4,183,203 4,182,414 4,181,545 4,180,590 4,179,540 4,178,384 4,177,113 4,175,715
In % of Sales
8.37 8.37 8.36 8.36 8.36 8.36 8.36 8.35
Revenue
Financial Costs 326,601 217,734 108,867 0 0 0 0 0
Gross Profit 3,856,602 3,964,680 4,072,678 4,180,590 4,179,540 4,178,384 4,177,113 4,175,715
In % of Sales
7.71 7.93 8.15 8.36 8.36 8.36 8.36 8.35
Revenue
Income Tax 1,156,981 1,189,404 1,221,804 1,254,177 1,253,862 1,253,515 1,253,134 1,252,715
Net Profit 2,699,621 2,775,276 2,850,875 2,926,413 2,925,678 2,924,869 2,923,979 2,923,001
In % of Sales
5.40 5.55 5.70 5.85 5.85 5.85 5.85 5.85
Revenue

Ratios (%)
Net profit to equity 119.83 123.18 126.54 129.89 129.86 129.82 129.78 129.74
Net profit to net worth 15.93 14.18 12.80 11.68 10.49 9.49 8.66 7.97
Net profit + interest to
148.34 149.64 151.00 152.42 155.63 158.97 162.46 166.10
investment

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Appendix 8. 4: Cash Flow For Financial Management ( in 000 Birr)

Item Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
Total Cash
2,761,534 1,584,188 35,868,409 37,498,518 44,998,603 49,995,520 49,993,706 49,993,706 49,993,706
Inflow
Inflow Funds 2,761,534 1,584,188 3,372,033 2,491 3,366 1,813 - - -
Inflow Operation - - 32,496,377 37,496,027 44,995,237 49,993,706 49,993,706 49,993,706 49,993,706
Other Income - - - - - - - - -
Total Cash
2,761,534 1,584,188 34,096,991 36,394,394 43,395,179 47,591,038 46,966,041 47,949,839 47,874,089
Outflow
Increase In
Fixed 2,761,534 1,584,188 - - - - - - -
Assets
Increase In
- - 3,350,570 516,129 774,497 516,677 7 8 9
Current Assets
Operating Costs - - 29,744,535 34,309,132 41,151,417 45,707,965 45,708,504 45,709,097 45,709,749
Marketing Cost - - 38,996 44,995 53,994 59,992 59,992 59,992 59,992
Income Tax - - - - - - - 1,092,071 1,124,536
Financial Costs - - 418,556 979,803 870,936 762,069 653,202 544,335 435,468
Loan
- - 544,335 544,335 544,335 544,335 544,335 544,335 544,335
Repayment
Surplus
- - 1,771,418 1,104,124 1,603,424 2,404,481 3,027,665 2,043,867 2,119,617
(Deficit)
Cumulative
- - 1,771,418 2,875,542 4,478,966 6,883,447 9,911,112 11,954,980 14,074,596
Cash Balance

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Appendix 8.4 Cont.……d

Item Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Scrap
Total Cash Inflow 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 6,651,254
Inflow Funds - - - - - - - - -
Inflow Operation 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 -
Other Income - - - - - - - - 6,651,254
Total Cash
47,798,386 47,722,732 47,647,134 47,027,262 47,027,999 47,028,809 47,029,700 47,030,681 -
Outflow
Increase In Fixed
- - - - - - - -
Assets
Increase In Current
10 11 12 13 14 16 17 19
Assets
Operating Costs 45,710,467 45,711,256 45,712,124 45,713,079 45,714,130 45,715,285 45,716,556 45,717,954 -
Marketing Cost 59,992 59,992 59,992 59,992 59,992 59,992 59,992 59,992 -
Income Tax 1,156,981 1,189,404 1,221,804 1,254,177 1,253,862 1,253,515 1,253,134 1,252,715 -
Financial Costs 326,601 217,734 108,867 - - - - - -
Loan Repayment 544,335 544,335 544,335 - - - - - -
Surplus (Deficit) 2,195,321 2,270,974 2,346,572 2,966,444 2,965,708 2,964,897 2,964,006 2,963,026 6,651,254
Cumulative Cash
16,269,917 18,540,891 20,887,463 23,853,908 26,819,616 29,784,513 32,748,519 35,711,545 42,362,798
Balance

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Appendix 8. 5: Discounted Cash Flow ( in 000 Birr)

Item Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Total Cash - - 32,496,377 37,496,027 44,995,237 49,993,706 49,993,706 49,993,706 49,993,706

Inflow
Inflow - - 32,496,377 37,496,027 44,995,237 49,993,706 49,993,706 49,993,706 49,993,706
Operation
Other Income - - - - - - - - -
Total Cash 2,761,534 1,584,188 33,134,101 34,870,256 41,979,908 46,284,635 45,768,504 46,861,169 46,894,286
Outflow
Increase In 2,761,534 1,584,188 - - - - - - -
Fixed Assets
Increase In Net - - 3,350,570 516,129 774,497 516,677 7 8.12 8.94
Working
Operating
Capital - - 29,744,535 34,309,132 41,151,417 45,707,965 45,708,504 45,709,097 45,709,749
Marketing
Costs Cost - - 38,996 44,995 53,994 59,992 59,992 59,992 59,992
Income Tax - - - - - - - 1,092,071 1,124,536
Net Cash Flow -2,761,534 - -637,724 2,625,771 3,015,328 3,709,072 4,225,202 3,132,537 3,099,420
1,584,188
Cumulative -
-2,761,534 -4,983,446 -2,357,675 657,653 4,366,725 8,591,927 11,724,464 14,823,884
Net Cash Flow 4,345,722

Net Present 2,777,625

Value
Internal Rate of 38.55%
Return
Payback 4 years

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Appendix 8.5 Cont.……..d

Item Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Scrap
Total Cash
49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 6,651,254
Inflow
Inflow Operation 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 49,993,706 -

Other Income - - - - - - - - 6,651,254

Total Cash
46,927,450 46,960,663 46,993,932 47,027,262 47,027,999 47,028,809 47,029,700 47,030,661 -
Outflow
Increase In
Fixed - - - - - - - -
Assets
Increase In Net
9.83 10.81 11.89 13.08 14.39 15.83 17.41 -
Working Capital
Operating Costs 45,710,467 45,711,256 45,712,124 45,713,079 45,714,130 45,715,285 45,716,556 45,717,954 -
Marketing Cost 59,992 59,992 59,992 59,992 59,992 59,992 59,992 59,992 -

Income Tax 1,156,981 1,189,404 1,221,804 1,254,177 1,253,862 1,253,515 1,253,134 1,252,715 -

Net Cash Flow 3,066,257 3,033,043 2,999,774 2,966,444 2,965,708 2,964,897 2,964,006 2,963,045 6,651,254
Cumulative Net
17,890,141 20,923,184 23,922,958 26,889,402 29,855,110 32,820,007 35,784,013 38,747,058 45,398,312
Cash Flow

IPS- P.O.Box-2569 Tel. 011 661 03 61 E-mail: [email protected] Web Site: www.ips.et 189
 TTH Trading Plc – Meat Processing Plant Feasibility Study – Technical & Financial Analysis (Vol II)

Appendix 8. 6: Balance Sheet ( in 000 Birr)

Items Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
Total Assets 2,761,534 4,345,722 9,014,599 10,181,742 12,106,552 14,574,599 17,149,161 19,152,993 21,232,575
Total Current Assets - - 5,121,988 6,742,241 9,120,162 12,041,320 15,068,993 17,112,868 19,232,494
Total Fixed Assets,
2,761,534 4,345,722 3,892,611 3,439,501 2,986,390 2,533,280 2,080,169 2,040,125 2,000,081
Net of Depreciation
Total Liabilities 2,761,534 4,345,722 9,014,599 10,181,742 12,106,552 14,574,599 17,149,161 19,152,993 21,232,575
Total Current
21,463 23,954 27,320 29,133 29,133 29,133 29,133
Liabilities
Total Long-Term Debt 508,591 2,092,779 4,899,014 4,354,679 3,810,345 3,266,010 2,721,675 2,177,340 1,633,005
Total Equity Capital 2,252,943 2,252,943 2,252,943 2,252,943 2,252,943 2,252,943 2,252,943 2,252,943 2,252,943
Reserves, Retained
Profit Brought - - - 1,841,179 3,550,166 6,015,945 9,026,514 12,145,411 14,693,577
Forward
Retained Profit - - 1,841,179 1,708,987 2,465,779 3,010,569 3,118,897 2,548,166 2,623,917
Net worth 2,252,943 2,252,943 4,094,122 5,803,108 8,268,887 11,279,456 14,398,353 16,946,520 19,570,436
Ratios (%)
Equity to total
81.58 51.84 24.99 22.13 18.61 15.46 13.14 11.76 10.61
liabilities (%)
Net worth to total
81.58 51.84 45.42 57.00 68.30 77.39 83.96 88.48 92.17
liabilities (%)
Long-term debt to net
0.23 0.93 1.20 0.75 0.46 0.29 0.19 0.13 0.08
worth
Current assets to
- - 239 281 334 413 517 587 660
current liabilities

IPS- P.O.Box-2569 Tel. 011 661 03 61 E-mail: [email protected] Web Site: www.ips.et 190
 TTH Trading Plc – Meat Processing Plant Feasibility Study – Technical & Financial Analysis (Vol II)

Appendix 8.6 Cont.………d

Items Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17

Total Assets 23,387,861 25,618,802 27,925,342 30,851,755 33,777,433 36,702,302 39,626,281 42,549,282
Total Current Assets 21,427,824 23,698,809 26,045,393 29,011,851 31,977,573 34,942,486 37,906,510 40,869,555
Total Fixed Assets,
1,960,036 1,919,992 1,879,948 1,839,904 1,799,860 1,759,816 1,719,771 1,679,727
Net of Depreciation
Total Liabilities 23,387,861 25,618,802 27,925,342 30,851,755 33,777,433 36,702,302 39,626,281 42,549,282
Total Current Liabilities 29,133 29,133 29,133 29,133 29,133 29,133 29,133 29,133
Total Long-Term Debt 1,088,670 544,335 0 0 0 0 0 0
Total Equity Capital 2,252,943 2,252,943 2,252,943 2,252,943 2,252,943 2,252,943 2,252,943 2,252,943
Reserves, Retained
17,317,494 20,017,115 22,792,391 25,643,266 28,569,679 31,495,357 34,420,226 37,344,205
Profit Brought Forward
Retained Profit 2,699,621 2,775,276 2,850,875 2,926,413 2,925,678 2,924,869 2,923,979 2,923,001
Net worth 22,270,058 25,045,333 27,896,208 30,822,621 33,748,299 36,673,168 39,597,148 42,520,148

Ratios (%)
Equity to total liabilities
9.63 8.79 8.07 7.30 6.67 6.14 5.69 5.29
(%)
Net worth to total
95.22 97.76 99.90 99.91 99.91 99.92 99.93 99.93
liabilities (%)
Long-term debt to net
0.05 0.02 0.00 0.00 0.00 0.00 0.00 0.00
worth
Current assets to current
736 813 894 996 1,098 1,199 1,301 1,403
liabilities

IPS- P.O.Box-2569 Tel. 011 661 03 61 E-mail: [email protected] Web Site: www.ips.et 191