Production of Malt for Breweries

Product Description:

Malt is the major input for the production of beer. It is what is known in Amharic as “bikil”. The raw material from which malt is made is malt barley which can be grown in many localities of the Region. Basically, malt is prepared by soaking barley in water for a period of time for germination, drying it and making it into flour before it is is used as an ingredient to make bear or whisky.

Rationale:

There are two large breweries in the Amhara Region (Dashen and Bati) established in the last 10 years. These breweries either obtain their malt requirement from the Asella Malt Factory or they import it from abroad. Most likely they import the malt. This requires foreign exchange which has always been in short supply in our country. The type of barley needed for malt production is being grown in Arsie and Bale. This barley can be grown in the highland areas of the Amhara Region. Hence it is possible to produce malt in the Region.

Market Potential:

Domestic production of malt between 1999/200 and 2003/2004 was on the average 13,650 tons per year. This production volume is perhaps one-half of the malt requirements of the existing breweries. Subject to detail market study, the existing deficit in the supply for malt is estimated to be between 5000 to 8000 tons. The proposed malt producing plant is to fill this supply gap and to make the Region self-sufficient in the production of malt.

Raw Material:

The raw material which is malt barley could be obtained from the high-land parts of the Region provided that malt barley seeds are distributed to farmers so that they grow the barley.

Process & Technology:

Malt barely is fed into grading machines to obtain uniform malting parameters; germination is carried out in “germinating boxes”, adding water from time to time to keep the product moisture constant. The germinating process normally lasts five to six days; kilning process takes place; after clearing, the malt is stored in silos. Main production machinery include barley intake and pre-cleaning, barley main cleaning and grading, germinating boxes, kiln conveyors, cooling plant, silos, etc.

Estimated Investment:

A small size malt producing plant will cost the following

n Building/shade 1100m2 at Birr 1500/m2……= Birr 1,650,000

n Plant and machinery ……………………… = Birr 4,200,000

n Working capital ……………………… = Birr 750,000

Total………………= Birr 6,600,000

Benefits:

Saving in foreign exchange and regional financial resources, stimulating the farming sector of the Region, introduction of new skills and technology, self-sufficiency in this particular product.

Location: Central part of the Region where malt barley could be collected from different parts of the Region- Debre Tabor.