Bio-Safe Bio Fertilizer Manufacturing (BBM), a privately owned enterprise established in 2019 in Addis Ababa, is one of only two producers of rhizobium inoculant in Ethiopia. BBM aims to become the leading bio-fertilizer producer in the country, providing inoculants to all grain legume-producing farmers. The company produces and distributes bio-fertilizers for major legume crops in Ethiopia, including faba bean, field pea, chickpea, lentil, haricot bean, and soybean. BBM has an annual production capacity of over 100,000 packets, enough to inoculate 25,000 hectares (1 packet covers 0.25 hectares), with potential for increased capacity as the market grows.

Out of 31 BBM employees, 22 are women. Among the total, 24 employees (including 20 women) work for six months each year. The production section of BBM is led by a skilled microbiologist, supported by a team of three BSc holders and three certified staff members. Between 2021 and 2024, BBM sold a total of 353,689 sachets of rhizobium inoculant in the Amhara, Oromia, and Southern regions for various pulse crops. However, sales of soybean inoculant only account for about 3% of total sales, with a decreasing trend observed in 2023-2024 due to low awareness in key soybean production areas, exacerbated by remoteness and security issues, especially in the Amhara region.

Contact: Mr Tamirat Cherenet Haile (photo) Email

Demonstrating the Benefits of Rhizobium Inoculant to Soybean Producers through the Expansion of Business Partnership and Digitizing the Operating System

This project demonstrates the benefits of combining inoculants with improved soybean seeds by piloting a distribution model through contract farming arrangements with CASA project partners, which other processors can replicate in their business models through evidence and learning dissemination.

Bio-Safe Bio Fertilizer Manufacturing (BBM) has limited skills and capacity to conduct well-organized rhizobium inoculant demand assessments, lacks a clear marketing strategy, and has limited communication with key public stakeholders (such as agriculture and cooperative promotion offices) to promote its products. Furthermore, there is limited awareness about the benefits and use of rhizobium inoculant at all stakeholder levels. Therefore, the objective of this CASA partnership with BBM is to address promotion and distribution challenges for rhizobium inoculant through the provision of tailored technical assistance and financial support.

CASA will link BBM to agro-processors to ensure the supply of inoculants to smallholders via contract farming arrangements with cooperatives. It will also facilitate links between BBM and seed companies to encourage the combined supply of rhizobium and seed through various market channels as a standard practice. BBM will build awareness and provide technical support on the use and benefits of rhizobium inoculant to processors, seed enterprises, agro-dealers, rural youth agents, and agriculture office extension agents so they automatically offer the rhizobium as a natural accompaniment at the time of seed purchase.

This partnership will help BBM implement a market-based solution to improve its product promotion and distribution by implementing various interventions in the pilot project. Additionally, BBM will be able to engage with a broader range of market actors in the promotion, marketing, and distribution of the product. This includes smallholder farmers, farmers’ cooperatives, processors, seed enterprises, and agro-dealers; as well as public support actors (such as cooperative promotion offices and agriculture development offices), financial institutions, and regulatory bodies operating in the market system.

Running from October 2024 – December 2025, this initiative will help the company expand its product distribution in high legume production areas, including Oromia and other regions. BBM plans to reach 5,000 farmers in the Oromia region through this pilot project, in collaboration with four edible oil and oil cake meal processors (LEOS, KUNAP, SITCO, and LIFMCU). These processors have targeted four soybean-producing woredas in the Jimma zone (Nedhi Gibe, Omonada, Seka Chokorsa, and Sokoru) and five woredas in the Buno Bedelle zone (Dabo Hana, Chewaka, Dhidhessa, Gechi, and Bedelle) for piloting a new soybean inoculant supply model. Smallholders will produce and supply 13,500 tonnes of extra soybean to the processors due to the increment of soybean production by 35% per hectare because of the application of inoculated quality seeds.

Of a total project cost of £103,914, CASA is contributing £65,714 (63%) through technical assistance and a grant. In the expansion phase, BBM will reach 15,000 smallholders in total (additional 10,000 farmers) through the current and new potential processors in Oromia region by 2027.

In terms of a business investment opportunity, the use of bio-fertilizer results in higher yields by fixing nitrogen, improving soil health and fertility, increasing crop yields by up to 35% per hectare, and enhancing quality. Ultimately, this leads to economic benefits and reduced environmental impact. As one of only two producers of rhizobium inoculant in Ethiopia, BBM faced difficulties in expanding its business due to limited working space and had to rent facilities until recently. Currently, the company has acquired land and is finalizing the construction and installation of machinery. This will help the company expand its business to produce more inoculants for legume crops and other non-legume crops such as barley, wheat, maize, and teff. BBM intends to collaborate closely with research institutions and other partners to conduct sample work for producing new inoculants for non-legume crops. For this new initiative, the company will perform cost estimation and consider equity financing, as well as partnering with others to conduct the research work and laboratory testing.

Updated: March 2025