Establishing production of full-fat soy flour in Ethiopia Note: This project has been cancelled, because of the change of strategy of the project partners.Partners will set up a factory for the production of full-fat soybean flour. Full-fat soybean flour is made from de-hulled, heat processed soybeans. It has a high nutritional value as it has a high oil content (around 20%) and it contains around 40% protein. Its substitute is defatted soy flour, which is made from defatted soybean cake, the by-product of soybean oil production. Defatted soy flour contains less calories and fat per unit weight and grinding and packing is also less complex, because of the lower oil content. The full-fat soybean flour will be produced for three different client groups.The joint venture will market 70% of its products in Ethiopia as inputs to producers of (a) CSB-products (Corn Soya Blend) and (b) bakery products, pasta and wheat flour. The remaining 30% will be exported to (c) existing clients of project partners that produce soybean derived products in Israel, Malaysia and Vietnam. The factory will be ISO 22000:2005 and Kosher certified.The factory will be located in Bahir Dar. Most soybeans will be sourced from its surroundings, the Amhara region. The factory will need 6,350 tons of soybeans annually. In order to secure the supply the joint venture will establish an out grower scheme under the project. Applicant of the project is Abdullah Wasef Company Ltd.. It trades in sesame and produces tahini in its factory in the Palestinian Territory. Wasef is a family business and was established in 1970. Wasef employs nine people.Corporate Social Responsibility (CSR)CSR will be embedded in the project by certification (Kosher and ISO 22000:2005), prevention of child labour, living wages, etc.The joint venture will pay a fair price to the farmers up to 5% above the auction price, plus a premium for good quality beans.Impact•	Employment and working conditionsThe joint venture will pay above living wages. Fixed contracts with a one year probation period (the proposal was not very clear about this, but this was stated by the joint venture during verification). Safety measures in the factory will be taken. Personnel of the joint venture and farmers of the out grower scheme will be trained.•	Innovation / Transfer of knowledgeThe innovativeness of the project is the product itself and the market for the full-fact soy flour. Besides the production method is new as well as the certification (Kosher and ISO22000:2005).•	Chain effectsImpact on local suppliersThe project will set up an out grower scheme through which 1,500 outgrowers will be involved. The outgrowers will be provided with knowledge, (pre-financed) seeds, fertilizers etc. The outgrowers will deliver 2,550 tons of soybeans per annum. Besides the project will purchase soybeans from commercial soybean farmers and farmers’ unions. The impact on other local suppliers consists of some local service providers, like ICT.Impact on local customers or consumersUp to 70% of the full-fat soy flour will be sold to Ethiopian producers of CSB products, bakery products, pasta and wheat flour.The CSB industries are in favour of using full-fat soy flour because of the high nutritious value and other properties like lower production costs and easier production logistics.•	Impact on the sectorThe joint venture will participate in a partnership with the Agricultural Business Support Facility. This facility is supported by the Netherlands embassy in Addis Ababa and represents the chamber of commerce as well. In this context they will share knowledge with other companies in the sector via meetings and open days. Lessons learned of setting up the out grower scheme might be inspiring and useful for other companies as well.•	EnvironmentThe processing plant will need substantial amounts of water. The joint venture will drill a borehole near the processing facility, will collect rain water from the roof and install a water purification unit as action plan for mitigation. An Environmental Impact Assessment is part of the results.All land that will be used for soybeans is already farmers land. There is no risk that nature will be transformed in farmers land. The soybeans will not be GM.•	Position of womenNine out of 22 medium/high level jobs will be for women.•	Impact on food safetyThe impact on food security is twofold. Full-fat soy flour will be used as input for CSB products, which are used by relief agencies as the World Food Programme. The project will contribute towards improving quantity and quality of the food intake of malnourished people in Ethiopia.The project can lead to higher yields in other (food) crops cultivated by smallholder farmers as well as soybeans fixate nitrogen and farmers will be educated in crop rotation.•	Impact on waterThe factory will use a lot of water for processing the beans. The joint venture will have its own water source and have its own water filter system. An Environmental Impact Assessment is part of the results. Produce 3,291 tons of full-fat soybean flour for the local market and 1,410 tons of full-fat soybean flour for the export market.