Home‎ > ‎Food Processing‎ > ‎


  1. Product Description: Margarine in a food product made from one or more vegetable or animal fats intimately mixed with one or more variation of cow’s milk together with table salt and several optional ingredients in small quantities. It is rich in fats and oils, and widely used as a substitute for butter. It is a source of calories and used in cooking and as a spread for bread in hotels and restaurants, and households.


  1. Rationale: Margarine, first developed in the late 1860s in Europe by the French chemist Hippolyte Me’ge-Mouries, and given patent in the United States of America in 1873, is today widely used as a useful food in many countries of the world. It is rich in fats and oils, which are one of the six nutrient food classes. Thus, nutritionally, the value of margarine as a food fat is primarily a source of food fuel (calories) and other nutritional factors. For this and other reasons, nowadays in Ethiopia margarine is widely used in cooking substituting butter in many big hotels and restaurants and in households, particularly, in urban areas. It is also used as a spread for bread. However, there are only a few firms, such as the Ethiopian Dairy Products factory which produces some margarine looking product from cow’s mild, and the Mojo Oil Products Factory, which produces some margarine only from oil fats. Most the margarine being consumed in the country is imported. Hence, there is a good opportunity to establish a margarine manufacturing plant in the Region.
  1. Market Potential: Margarine is widely used in big hotels and restaurants as spread, and sometimes for cooking. Supermarkets and food groceries require margarine for resale. Households, especially in big cities, use margarine for spread and for cooking. Therefore, there will be a wide range of market for the product in the Region and other pats of the country for the product.


  1. Sources of Raw Materials: The main raw materials for the manufacture of margarine are vegetable oils, such as palm, corn, sunflower, cottonseed oils, rapeseed, soybean oil, etc. other raw materials are cow’s milk and table salt, and other ingredients. Most of these raw materials are available in the Region.
  1. Production Process and Technology: The process of production starts with the making of the required materials available. The ingredients in margarine are those found in its edible fat portion and in its milk portion. There are such ingredients as vitamins A and D, vegetable lecithin, emulsifiers and similar materials dissolved in the liquid fats from the vegetable portion in making margarine, while in the milk portion there are dissolved salt and other ingredients and additives readily mixable with milk. The two portions are thoroughly mixed to produce an emulsion which is chilled to solidify the mixture, kneaded to a plastic consistency and packaged. The margarine produced this way, which is almost white in colour, is mixed with a yellow vegetable dye to make it look like butter.


  1. Estimated Investment Cost: The establishment of the plant will require a minimum area of about 1,000 square meters, the cost of which will be about Birr 300,0000 (assuming Birr 300 per square meter). The cost of machinery and plant will be about Birr 3,500,000. The estimated total investment cost will, therefore, be about Birr 3,8000,000.


  1. Benefits: Getting easily the product in the Region by the various users. Creation of employment for the people in the Region. Creation of earnings for the investors (in the margarine production) in the form of profit. Generation of revenue for the Regional Government in the form of income tax and VAT.


  1. Location: The plant may be located in the big cities of the Region, such as Bahir Dar, Dessie, Gondar.