Optimising animal feeds, Pre-mix feed production in Ethiopia Ethiopia has one of the largest livestock populations of Africa but scores amongst the lowest yields per animal. Feed is the major constraining factor in the Ethiopian livestock sector.The applicant, Rift Valley Products Limited from Kenya, states this can be improved with a better diet of the animals. Especially the so-called premixes are hardly available and not adjusted to the specific needs of different types of animals (layer hens, broilers, dairy cows etc). Premixes are a mixture of vitamins, trace minerals, feed supplements and diluents. They are fed or should be fed as a supplement to the forage and concentrated feeds.The premixes that are on the market now in Ethiopia are imported and have only very limited variety. The new joint venture will start a company that will produce premixes in a larger variety. The main ingredients however will still have to be imported.The factory will be located near the capital Addis Ababa, in Mojo.The Kenyan applicant is mainly active in cotton ginning and trading, and supply and trade of oil cakes and other agricultural commodities. He will form a joint venture with local partner THT Business Solution Plc from Ethiopia. The owner of THT Business Solution Plc has his own private dairy farm (40 cows).The project aims to reach thousands of small farmers (30% of turnover) and also the larger private and cooperative farms (70% of turnover). They will deliver via the feed mills or directly to these larger cooperatives and the larger farms that will do the mixing with forage themselves. They will, as much as possible, work with the existing network of Agro dealers.Corporate Social Responsibility (CSR)Partners will develop a CSR strategy as stated above. It includes GMP quality management procedures and GMP-certificate. Concerning labour, all employees will be given a formal employment contract in their own language and receive training and coaching for their jobs. The wage level will be 15% above minimum wage in Ethiopia. An EIA will be performed.Impact•	Employment and working conditionsSalaries will be well above (at least 20%) the basic wages paid in the agricultural sector. Workers will get good health service. The company will make an arrangement with a local clinic so workers will have access to free medical services. Workers will receive training and will develop useful skills.•	Innovation / Transfer of knowledgeThere is no supplier of improved premixes adjusted to the kind of livestock that it is used for. The mixing of the premixes now is done abroad and in the project this will be done in the new factory in Ethiopia. Also, the labour and (small) part of the ingredients will be acquired locally.•	Chain effectsThe joint venture does not work with outgrowers.80% of the ingredients (vitamins and micro-nutrients) come from the Netherlands (Provimi). Local industry will supply lime, salt and carriers.The plan is to supply 600 Mtons, but with the planned expansion after the project completion this will increase considerably. The applicant aims at a five-fold of the local supply. That seems ambitious, as the follow-up investment is one extra line.The impact on local clients (feed mills and large farms and cooperatives) will be improved access to better-adapted premixes, reduced costs and access to information and advices on the use of feed formulations.•	Impact on the sectorThe joint venture will organise an open day at the premix factory for the Ethiopian Animal Feed Industry association and will cooperate closely with them as well as with an existing knowledge institute. Ultimate aim is a collaborative programme for conducting performance trials.•	EnvironmentOvergrazing is a problem in Africa and unfortunately also in Ethiopia. The response of the joint venture will be to educate the farmers on livestock management. This means they will convince them it is more profitable to have fewer healthy and productive cows than many unproductive cows (when talking about dairy). The joint venture will also encourage them to use land more efficiently and show them the advantage of zero-grazing (animals in the stables, feed brought to them).This requires attention during the project by monitoring the extension programmes on this issue.•	Position of womenThe partners will employ at least 50% women in the new company.•	Impact on food safetyThe impact on food stability is clear as it will improve the animal production in Ethiopia. Goal of the project is to establish a company that will produce and market 1,500 tons of premixed feed supplements per year for the commercial livestock sector in Ethiopia.