Melkam Endale Hunegnaw is a registered sole proprietorship enterprise employing approximately 80 staff, including 32 women. Established in 2011 in the dairy business, it expanded in 2021 to include supplying organic fertiliser products for soybean and vegetable crop businesses. Melkam is located north of Sululta Town in the Oromia Region of Ethiopia.

The dairy farm was started with local crossbreed cows acquired through local purchase and improved to high-grade Holstein Friesian cows through artificial insemination using imported semen. Currently, the farm has 110 head comprising 60 milking cows, 15 dry cows, 18 heifers, and 17 calves. The milk processing uses state-of-the-art equipment that allows for the production of high-quality products while reducing the impact on the environment through efficient use of energy and other resources. The facilities include a milk pasteurisation unit, raw milk chilling unit, packaging unit, butter and cheese making unit, cold store and incubation room, as well as a standby generator.

Melkam produces pasteurised fresh milk, set yoghurt, flavoured yoghurt, butter, cheese, and whey beverage under the trade name Zagolmilk, adding value to its own raw milk and sourcing from the local community. Since 2017, Melkam Milk Processing has been progressively sharing the dairy market in the country with its healthy, nutritious, and affordable dairy products.

Driven by demand from raw milk supplying farmers, Melkam ventured into the agricultural input business, becoming a leading supplier in the area, operating Agricultural Inputs One-Stop Shops (AOSS) that supply veterinary drugs, feeds, and agro-chemicals to smallholder farmers at fair prices. Recently Melkam installed an 80 m³ bio-digester that generates methane, powering their cold chain system for cooling dairy products and serving as a fuel source for the staff canteen, thereby minimising environmental impact. The biogas digester processes cow manure into bio-slurry and methane gas. The methane gas is used as input for a gas generator, substituting diesel for electrical energy production, which powers the milk processing machines. The bio-slurry is used as organic fertiliser to grow forages and grasses for dairy cow feed. The company’s agricultural input sales have grown significantly, from ETB1.26 million (£9,920) in 2021 to ETB2.3 million (£18,110) in 2022, and reaching ETB4.56 million (£35,905) in 2023.

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Bio-slurry Organic Fertilisers for Enhanced Productivity, Food Security and Sustainability

The project demonstrated the potential bio-slurry business opportunity for medium and large farm businesses and laid a strong groundwork for improving availability of affordable alternative organic fertiliser for smallholder farmers that increases productivity.

CASA partnered with Melkam Endale Hunegnaw to improve organic fertiliser access at a reasonably affordable price, increase production capacity, and enhance the quality of bio-slurry by optimising macro- and micro-nutrient content. The enterprise aims to serve 12,500 smallholder clients: 2,500 through direct sales, 4,000 via cooperatives, 2,000 through franchising, and 4,000 through an agent/dealer network. This strategy is expected to generate £110,550 from the sale of 4,320 m³ of liquid bio-slurry and £8,503 from 900 tonnes of solid (dried) bio-slurry. Beyond revenue, the business will actively promote the use of organic fertilisers, contributing to reducing chemical fertiliser use while highlighting their eco-friendly benefits. Additionally, the enterprise plans to strengthen partnerships with potential distributors and upgrade its operations from semi-manual to fully-automated systems to enhance production and supply capacity.

Running from November 2024 through December 2025, of the total project cost of £46,350, CASA’s contribution toward technical assistance and a grant was £26,662. The project set out to show how liquid bio-slurry could benefit medium and large farms, and to help smallholder farmers get affordable organic fertiliser. However, delays in product certification held back progress and delayed market sales. Technical assistance led to technical improvements in the bio-slurry formulation, turning around from a 75% failure against previously required quality checks to an 80% pass rate against revised parameters, but a few heavy-metal parameters still need to be addressed. The revision of liquid fertiliser parameters and its approval process by the House of People’s Representatives led the standards authority to suspend lab tests that would speed up multiple treatment tests to meet the standard requirement to acquire the certification. This has delayed the necessary certification to allow the product to get to market.

Meanwhile, Melkam’s institutional and business capacity was strengthened through updated financial, HR, and procurement manuals, development of a five-year strategic plan, and a clear go-to-market strategy and distribution model. The unexpected surge in currency devaluation (more than 150% within 15 months) has caused further large increases in the costs of chemical fertilisers and led to encouraging interest in bio-fertilisers from potential distributors during the pilot product promotion. As a result, seven interested potential distributors were identified and Melkam is considering them for the piloting phase.

In collaboration with Sululta woreda office of agriculture, Melkam piloted demonstration and awareness activities with 113 farmers using vegetable and soybean plots under Climate-Smart Agriculture principles. Additionally, leaflets were printed and used for promotions and an advance purchase of 5-litre branded plastic containers will be used as a display for promotion to farmers and potential distributors. Overall outreach and projected sales targets remain challenging due to the certification bottleneck.

Despite zero revenue generation to date, demand prospects and feedback from the demo and sample product are strong, given rising chemical fertiliser prices. Once certification is secured, the enterprise will be well positioned to scale production, formalise distribution, and supply affordable organic fertiliser to smallholders.

Updated: March 2026