BURCO | EEAC meat processing plant | Approved

[Constantine MMX]

Render

SOMALI BUSINESS REVIEW: Burao Town gets Second Meat Factory

[Xusein]

Very nice...I've heard about this meat plant for ages, about time a rendering came out. Burco stand up.

[Constantine MMX]

Another one is being built in Las Anod, hope more will follow.

[Ras Siyan]

Nice!

[abesha]

Where exactly is Burco? I know it's in Somaliland.

Nice project though. We need a ton of those in the HOA. We have huge numbers of livestock but little processing. We shouldn't export live animals!

[Constantine MMX]

^

[Xusein]

My concern is infrastructural connections. Shipping the products via truck on substandard two lane roads is not a good look.

Although I'm glad for the development, I think that the plants should be closer to the seaports if there isn't enough infrastructure further inland.

[abesha]

So Burao and Burco are the same?
Interesting. Why the two different names?

Xusien, it seems to me its central location is perhaps what they wanted. Its central location is good for easy access to the entire Somaliland region. If it's coastal, the hinterland may be too far.

[Constantine MMX]

Xusein, I agree, but there is road construction & rehabilitation happening there now as we speak. Its a pity though that the last central government didn't take a loan of around two billion dollars for an elaborate rail network. Sure we would default on it, but the network would still be there.

Abesha, Its the Somali "c" thats like the Arabic ayn, Burao is the standard English version of the name.

[Xusein]

Originally Posted by abesha

So Burao and Burco are the same?
Interesting. Why the two different names?

Burao is the English way to say it, Burco is the Somali way.

Xusien, it seems to me its central location is perhaps what they wanted. Its central location is good for easy access to the entire Somaliland region. If it's coastal, the hinterland may be too far.

The location is good but the connections are poor.

I am aware however that road is being rehabilitated by the Somaliland government which is good but you have to go down a really annoying (although scenic) mountain pass which could lower potential productivity for export.

In a perfect world, the processing would be done in the interior and then transported by rail or high density truck to Berbera.

[Constantine MMX]

Malaysian investors
image hosted on flickr

image hosted on flickr

image hosted on flickr

Malaysian investor from Burao-based Emerging East African Corporation (EEAC)

Similarly, Somaliland is currently pushing forward with plans to export processed meat and livestock to Malaysia after Malaysian investors agreed to explore business opportunities in Somaliland with some already establishing abattoirs in the country. They say its part of the over all plan by Malaysia to become a “global centre for Halal food and related products”. Malaysia imports over 85 percent of its meat needs except poultry and desparetely needs a Halal market its citizens can trust. Two-third of its meat imports currently comes from India. - Link

While I welcome with open arms the reaching out to new markets by Somali traders and the establishment of new plants, I think they should take note of the inspiring Malaysian plan. There is no reason why we can't become the number one centre in the global Halal industry worth billions, we are already one of its main contributors.

[Xusein]

Absolutely. We are at a great location just below Arabia where the demand for meat is growing above supply. If we do the processing before importing, not only can a whole industry with jobs be added but we can circumvent the bans like in the past because it's more hygenic.

Honestly I would like to see the days of the live goat and sheep boats come to an end.

PS: The investment is fine but our friends the Malaysians are our competitors.

[Ras Siyan]

Originally Posted by Constantine MMX

While I welcome with open arms the reaching out to new markets by Somali traders and the establishment of new plants, I think they should take note of the inspiring Malaysian plan. There is no reason why we can't become the number one centre in the global Halal industry worth billions, we are already one of its main contributors.

+1. Malaysia is trying to put itself at the center of the Halal Food industry. Somalia could aspire to that position if the necessary infrastructure is put in place. As Xusein said, its not profitable to export live livestock, the meat should be processed in Somalia then exported.

[Janub]

Looks amazing. Somalis should create their own markets for livestock, its ridiculous to think that Kenya is using local Somali camels to create a camel cheese market for overseas consumers. There is always a market, you just need to refine your product. This is Burco's second meat plant if I'm correct, and there's another one in Berbera.