ADMAS UNIVERSITY

School of Post Graduate

Masters of Business Administration
OPERATION MANAGEMENT

GROUP ASSIGNMENT

Food Processing

By

Group Member ID No

1. Melat Zeray ………………………………………………………. PGMGB/4121/21

2. Mitiku Kasa…………………………………………………...PGMGB/4109/21
3. Eyues Sendek ………………………………………………… PGMGB/4089/21
4. Sitota Abebe………………………………………………….. PGMGB/4158/21
5. Fraol Mekonnen…………………………………………….. PGMGB/4638/21

November, 2022

Addis Ababa, Ethiopia

Contents
Group Member ID No...................................................................................................................i
1. INTRODUCTION....................................................................................................................1
2. Company Background..............................................................................................................3
3. Main Objective of the Company..............................................................................................4
4. Key Operation Decision Area..................................................................................................5
5. Purpose.....................................................................................................................................5
6. Effect of Performance..............................................................................................................5
7. Conclusion................................................................................................................................6
8. Recommendations....................................................................................................................7
Reference.........................................................................................................................................8

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 Executive Summary
This paper talks about Injera processing company. The paper initially forwards introduction
about food processing industry and also the traditional Injera mak8ing of Ethiopians and every
prior introductory literatures regarding Injera and its respective role in the country’s economy.
Then paper gives introduction about the company which is about to engage in the injera making
business and every steps in the making of the business. The objective of the company in making
Injera and the values this company intend to add also briefed in the objective section. Key
decision areas of the company, the purpose of installing this company, and effect on the
performance of the company also well briefed in this paper. Finally, conclusions and
recommendations are put forward.

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 1. INTRODUCTION
Agricultural markets are quickly changing in developed and developing countries alike (Pingali
2007; Reardon and Timmer 2007, 2012; Paarlberg 2013).1 In developing countries, an important
cause of this food system transformation is the rapid growth of cities along with the parallel rapid
emergence of an urban middle class (Tschirley et al. 2015). It is estimated that more than half of
the world population was living in cities in 2010, an increase of 30 percent since the 1950s (UN
Population Division 2010). The growth of cities leads to higher commercial flows of agricultural
produce from urban to rural areas as well as to changes in the types of food consumed, and,
therefore, marketed. Urban populations often have significantly different diets than rural ones
and are willing and able to spend more money on food. Reardon et al. (2015) argue that the
shares of cities in commercial food markets in developing countries are significantly higher than
their urban population shares per se, given that the majority of the residents of cities rely on these
markets for their food requirements. Urban food markets have therefore often become the most
important markets for farmers in many developing countries.

A number of issues with respect to food system transformation have been examined in these
urban markets. First, there is a large body of literature on the modern retail revolution in
developing countries and the extent to which this revolution is reforming food markets and
agricultural supply chains (Reardon et al. 2003; Reardon and Timmer 2012; Assefa et al.
2016). Second, branded and packaged foods are expanding rapidly (Reardon et al. 2014) –
annual growth rates of retail sales of packaged food products in developing countries are
estimated to be much higher than in developed countries (Regmi and Gelhar 2005). 2 Third,
urbanization also is often associated with different diets and an increasing share of food eaten
away from home, i.e., in restaurants (Regmi and Meade 2013; Zhou et al. 2015; Smith et al. 2014

With a transforming food industry sub-sector, processed foods are also becoming relatively more
important in the food consumption of urban households (Scholliers 2015; Sheely 2008).
However, little attention has been given to this topic in the literature (for an exception, see
Tschirley et al. 2015).3 In this research in Ethiopia, we show that food processing dominates its
(relatively small) industrial manufacturing sector – making up 60 percent of its value added, and
it is estimated that almost 1 million people are employed in food processing enterprises in the
country. However, we know little about the way this sector functions and how it is changing.

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In this paper, we look specifically at the commercial production of enjera – Ethiopia’s staple pancake
and at the emergence of enjera-making enterprises and the resultant changes in how this staple food
is prepared for consumption in many urban households. These changes have important implications
for gender relations, employment, and trade.

Urban Ethiopia presents an interesting case study, given its rapid urbanization rates and the fast
economic and income growth that has occurred over the last decade (World Bank 2015b). All this
has led to quickly changing agricultural and food landscapes.

The rapid emergence and the changes in these commercial enjera markets seem to be associated with
the growth of Ethiopian cities and the rise of the food service industry – such as institutions, hotels,
and restaurants – linked to increasing out-of-home food consumption. Moreover, there appear to be
important income effects associated with these changes, with rising opportunity costs for women,
who traditionally prepare enjera at home, resulting in increasing use of these commercial markets by
relatively richer consumers. The impact of commercial enjera production on trade seems to be linked
to the changing price ratios of different cereals, with the relative prices of imported rice significantly
declining compared to those of other local cereals, as well easier access to export markets for
prepared enjera because of better air transport links between Ethiopia and the rest of the world.

These findings are important for the policy debates on food system transformation in Ethiopia in at
least three important ways.
1. As the economies in developing countries grow and urbanization takes off, greater
attention towards off-farm agricultural activities is required. These activities have
important impacts on employment, prices, and, therefore, on the food security for both
urban and rural populations. Rapidly emerging small and medium-scaled
agribusinesses in this off-farm segment are rising in importance, but often neglected in
debates on African food system transformation (Reardon et al. 2015).
2. Urban markets are rapidly growing and will increasingly shape agricultural and food
economies in these countries. These markets should be taken into consideration as,
increasingly, cities are becoming engines of agricultural and food system transformation (e.g.
Vandercasteelen et al. 2016).
3. As agricultural economies and cities develop, along with changes in diets and food
preferences, international trade often becomes more important because of easier accessibility
to cities for food imports (Rakotoarisoa et al. 2011), but also as a source of exports, as

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 revealed in this case study. More attention therefore should be paid to international trade
factors in transforming food markets.

2. Company Background
We study the commercial enjera markets in Ethiopia, the capital, Addis Ababa, We have four
major findings. Enjera is a process of preserving food by reducing water or other liquid from the
solid material until adequate low moisture content is reached, thus preserving foods by avoiding
microbial growth and deteriorative chemical reactions. The Drying Process leads to reduction of
the moisture content in solids, to maintain their consistency in storage and transport. To achieve
the desired moisture content, the material should be dried. Dried products are very good source
of nutrients but the dehydration process may alter the quality of the products. This can be limited
by having proper pre-treatment of the materials and also by controlling the drying process. Some
of the quality parameters considered is color, visual appeal, flavor, retention of nutrients, free
from contaminant.

1. Commercial enjera markets are quickly growing in all cities and an increasing number of
consumers are buying enjera instead of preparing it themselves. We estimate that the
retail value of purchased enjera in urban areas in Ethiopia made up around 250 million
USD in 2015.

2. Enjera is increasingly being prepared by mixing flour prepared from domestically

produced teff with that prepared from imported rice, thus absorbing an important part of
Ethiopia’s rapidly increasing rice imports - 200 million USD in 2015.

3. Enjera preparing micro-enterprises and retailers that mostly employ women are rapidly
emerging, resulting in an estimated 100,000 people in urban Ethiopia being employed in such
activities.

4. Finally, we note up scaling processes in those enjera-making enterprises that supply the
growing food service sector as well as export markets. These larger enjera-making companies
have different procurement mechanisms, utilize different production technologies, and realize
higher profits.
The importance of agriculture in developing economies, food processing industries often dominate
the industrial sector when considering employment and value addition in these settings. For example,
it is estimated that the food processing industry in Ethiopia employs 1 million people, around 2

3
percent of the economically active population. However, the way this food processing industry is
changing and how it functions is little understood. Based on a unique survey, we study the case of
markets in urban Ethiopia for commercial ready-to-eat enjera, the traditional staple pancake of the
country. We find that commercial enjera markets are quickly growing, employing more than 100,000
people in urban Ethiopia. Moreover, enjera is now being prepared by mixing flour from locally
produced teff with that of imported rice, thus absorbing an important part of the rapidly growing rice
imports (almost 200 million USD in 2015) in the country, and leading to higher profits for those
enterprises engaged in this type of mixing. Increasing numbers of enjera-making enterprises (EMEs)
– which mostly employ women – are emerging. Further, we note up scaling by those enjera-making
enterprises that supply the growing urban food service sector. Larger enjera-making companies have
better quality, different procurement mechanisms and technologies, and higher value-added. These
findings are important for the policy debates in Ethiopia on food systems transformation,
employment and job creation, and international trade. The shelf life of injera after baking does not
commonly go beyond three days at ambient temperature under the traditional storage conditions
essentially due to mold spoilage (Ashagrie and Dawit, 2012). Drying of fresh injera to low moisture
content and water activity in retaining its functional quality is essential for long-term storage.

Drying of baked teff injera is nowadays a common practice, since dried injera (Dirkosh in Amharic)
can be stayed long and can be handled and transported easily. Dirkosh Crunch has been prepared and
sold in markets. Dirkosh Crunch prepared from teff injera is vegan, gluten-free, and oil-free as that of
Teff injera.

3. Main Objective of the Company

Injera has been eaten by Ethiopians for centuries and it defines the local cuisine and cultural
traditions. We started Food Processing System because we believe that food is a great way to
open people’s minds to other cultures. Ethiopia is often portrayed in the media only for its
poverty and food crisis, while the country has so many unique traditions to offer. Besides, Injera
is a very healthy food. Teff, the grain used to produce authentic Injera, has high nutritional
values and it is 100% gluten-free.

In the next two to three years, we want Ethio-Green to be solar-based, energy-efficient

companies that can help protect the environment. In Ethiopia, in almost every household people
bake Injera; the use of ovens for its preparation is very energy consuming and in the long run can

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have a serious impact on the environment. By producing Injera in our energy efficient facilities,
we think we can help minimize the use of electric ovens and contribute to save energy.

4. Key Operation Decision Area

The baking process of injera, physicochemical and sensory analysis of fresh Injera was done at
Ethiopian Public Health Institute (EPHI). The other experiments of drying of injera and the
analysis of moisture content, color, texture of the dried injera. Teff grain was cleaned, sorted,
sieved in a fine sieve and stored in polyethylene bags. Then it was milled to whole flour to
fineness level traditionally used for injera making. Samples for laboratory analysis were kept in
an airtight, sealed plastic bag at room temperature until preparation of baking injera.

5. Purpose
Enjera is often both the serving platter and utensil for a meal. Hearty stews such as wat are placed on
top of the bread and then the meal is eaten by tearing pieces of injera off and scooping up the stews.
an ancient technique of food preservation & for extension of shelf life of foods; and it minimizes the
transportation cost as well as the storage cost per unit product weight. Sun drying is the most
common method to preserve the foods in rural area whereas in industries mechanical drying is in
practice. Preservation of fruits and vegetables, meat, fish and food plants by drying in the sun or in
the naturally dry air of the deserts and mountains has been practiced and is still a vital operation in
the life of many rural communities. For the faster drying (i.e. time saving) and more versatility in
commercial scale mechanical drying is the common technique to preserve the foodstuff.

Drying or dehydration is, by definition, the heat and mass transfer process for removal of water by
application of heat, from a solid or liquid food, with the purpose of obtaining a solid product
sufficiently low in water content. Where removal of water takes place by virtue of a difference in
osmotic pressure and not by evaporation. The main objective of food dehydration is: Preservation
because of lowering of water activity; low transport and storage cost as a reduction in weight and
volume.

6. Effect of Performance
Teff Injera has been consumed in Ethiopia as a major staple food and becoming very known and
wanted globally. Dried Teff injera, which is very known by its Amharic name” Dirkosh” is the other
most important version of the fresh teff injera becoming popular in the market. It is easy to handle
and can be stored for long time.in a research report (Quilligan, 2018) there are about six business

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group individuals who are studying and designing to assist Dirkosh in entering international markets.
Unfortunately, there was not any study related to how it is produced maximum product, its
physicochemical and sensory quality of Dirkosh. due to this reason dried Injera has been used in
Ethiopia and exported abroad for long by using sun or griddle(mitad in Amharic) to dry the baked
Injera. Using sun light energy to dry injera is not efficient and time consuming as well as it is
impossible to control the temperature to keep the quality of the Dirkosh and mitad is not also
controlled due this the product may be over dried or burnt. In order to alleviate such kind of problems
in dried Injera production in home and in industrial scale for a better quality Dirkosh and
economically profited this research finding was done by using CCTD and optimized the drying
process factors(drying Temperature, air velocity and sample loading density) of CCTD in responses
of the physicochemical and sensory quality of Dirkosh. The research was done by using the Box-
Behnken design response surface methodology (RSM).

7. Conclusion
Food retail markets are transforming rapidly in developing countries and processed foods are on the
increase in local diets. On top of the well-studied nutritional impacts of these transformations, they
have important implications on the structure and functioning of food supply systems in these
countries, including on employment and on value addition in the agro-processing sector. However,
there has been limited attention to this part of the transformation of the food systems in developing
countries.
In Ethiopia, food processing industries are a major employer, with an estimated one million people
engaged in the sector. Within this sector, we studied enterprises making enjera (the traditional staple
pancake) and its retailing. Based on a unique primary survey, we have explored the functioning of
commercial enjera markets in urban Ethiopia. There are three major findings from this study.

First, enjera markets are quickly transforming and a large number of people, especially in urban
areas, now buy enjera instead of preparing it themselves. The size of commercial urban enjera
markets is evaluated at 250 million USD per year, and it is estimated that more than 100,000 people
in urban Ethiopia make their living in enjera-making enterprises or through the retailing of the enjera
produced. This sector provides a high level of employment in Ethiopia, comparable to the much
publicized flower export sector (e.g., Oqubay 2015; Schaefer and Abebe 2015). Moreover, the sector
mostly employs women. Second, there are important international trade implications with the
emergence of these commercial enjera markets.

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Enjera is increasingly being prepared by mixing local teff with imported rice. This has important
implications for food imports. The use of rice in enjera preparation is rapidly increasing, seemingly
driven by international price decreases of rice as well as advantageous conditions for rice imports. 5
Moreover; formal export markets for enjera are expanding, currently accounting for 10 million USD
in exports per year. Few people have considered the impacts of this developing export market for
enjera.
Third, while small micro-enterprise EMEs are quickly emerging, larger EMEs produce more enjera
per day, use better technologies, have higher value addition and are more profitable. We show that
these larger enjera-making enterprises are catering especially to the rapidly growing food service
industry. We find that average urban consumers in Ethiopia already spend 16 percent on food eaten
away from home, but that share is significantly higher for the relatively richer households, suggesting
that further growth of this sector is highly likely with increasing incomes in the country.

These findings have a number of policy implications. First, as economies in developing countries
grow and urbanization takes off, more attention needs to be paid to the off-farm aspect of agricultural
value chains. These off-farm activities have important impacts on employment, as well as on prices
and food security for both urban and rural populations. Rapidly emerging agri-food small and
medium-sized enterprises in this off-farm segment add significant value, but they are often neglected
in the African food debate (Reardon et al. 2015). Second, urban commercial food markets are rapidly
growing and will increasingly shape agricultural and food economies in these countries. Third, as
agricultural economies and cities develop, international trade is becoming more important as these
cities are easier to access for food imports, as well as exports, as illustrated in this case study. More
attention therefore should be paid to trade policies and their impact on African food systems and
value chains. Finally, more focus is needed to stimulate local, import-substituting rice production,
given the rapidly changing food preferences of the local population, as well as to help alleviate
foreign exchange scarcity in the country.

8. Recommendations
More researches on the application of food science and technology (food process, formulation
and optimization, recipe formulation and optimization) need to be done. Based on the findings
of this research work, a special type of dryer can be designed and constructed for Dirkosh
production at a larger scale. Design of Good packaging for Dirkosh should be done. Households,
entrepreneurs, and injera making industries can prepare Dirkosh injera using this same type of
dryers.
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