Industrial baltena and injera sauce production in Ethiopia Note: This project has been cancelled, because it has been withdrawn by the applicant.There are two reasons for setting up this project on traditional Ethiopian food (ingredients). Firstly, is the fact that the quality of the baltena products in Ethiopia currently is unreliable in terms of food safety, and the working conditions of production itself are not in accordance with international standards. Secondly, there is an existing demand for baltena by the Ethiopian Diaspora in North America, while the canned injera sauces (comparable with pasta sauces) is a totally new product for which market will be developed.The factory will be located in Addis Ababa. All raw materials will be supplied by independent farmers from the regions around Addis Ababa.Applicant Day Star Business Group Inc is based in the USA. Local partner is AG Transit Plc. They will set up a joint venture.The project is interesting for PSI, because it is introducing a new process and product to Ethiopia. The first is the introduction of a baltena production process that meets ISO 22000 and HACCP standards. The second is modern production of canned Ethiopian convenience foods (wots), which is a completely new product worldwide, that meets ISO 22000 and HACCP standards.Corporate Social Responsibility (CSR)The project will be HACCP/ISO 22000 certified, which will guarantee safety and health as well as environmental and human resource management issues to be at high levels. In addition, the joint venture will develop a CSR policy of its own that will cover issues like employee participation, personnel policy, waste disposal, rights of local population, quality throughout the value chain, human rights and corruption.Impact•	Employment and working conditionsThe number of employees at the end of the project is 113: 101 basic-level jobs and 12 medium-/high-level jobs.Two years after the end of the project a total number of 208 people will be employed: 189 basic-level jobs and 19 medium-/high-level jobs.A number of 15 employees will be hired on the basis of flexible contracts, not full-time. Salaries are above local level. In addition, fringe benefits will include: reimbursement of medical costs, transport to and from the factory, subsidised lunch.Good working conditions will be laid down in the human resource policy, while health and safety and other labour standards are included in their CSR policy and ISO / HACCP requirements.•	Innovation / Transfer of knowledgeSemi-industrial production of canned injera sauces is entirely new to the country, therefore new knowledge and skills relate to: modular production lines, food technology and food safety, quality insurance, ISO 22000 / HACCP knowledge for food production. Therefore, the project will contribute to higher levels of knowledge and skills in the country.•	Chain effectsThe joint venture will work with twenty farmer unions to source their cereals, pulses, vegetables and root crops. These farmers and their farmer unions will benefit from support through the project and be supplied with better inputs, training and TA to raise the quality, quantity and continuity of their production. The outgrowers' scheme is planned to be put in contracts. In addition, 25 local suppliers will provide the joint venture with ingredients (like salt and preserving agents), packaging material, accounting services, logistics services, and machine maintenance.•	EnvironmentThe environmental impact is neutral and the risks of the project for the environment is very limited. The company will not use chemicals or other hazardous materials. Waste is limited and will be carefully planned for. In addition, the ISO / HACCP standards will also require responsible environmental management, which will also be included in the CSR policy of the joint venture.•	Position of womenApproximately 80% of the workforce will be women, throughout the organisation from high-level to basic-level functions. Production of traditional Ethiopian foods, 200,000 kg baltena products (processed Ethiopian spices and agricultural products) and 100,000 kg injera sauces, for export to the USA.