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  1. Product Description: Spices are of the various strongly flavored or aromatic substances of obtained form plants. Spices are commonly used as condiments or employed for other purposes on account of their fragrance and preservative qualities.  Principal sources of spices are black pepper, chilies, cinnamon and cassia, cloves, cardamom, spice seeds as coriander, cumin, fenugreek dry ginger, turmetic, etc.  These spices are used in various blends for the preparation of food items and other products.


  1. Rationale: Many of the spices listed above are produced, through on a peasant farming scale, in many parts of the Amhara Region especially in the localities surrounding Lake Tana.  Some of the spices are exported raw to the Middle East, Europe and the Far East.  It is common knowledge that processed products bring more foreign exchange than products which are raw.  Given this, it would benefit, the Region, the country and the producers if spices are processed at home and exported with more added values.  This will stimulate the spices producing sector and increase the income of farmers.


  1. Market Potential: The market for spices is both at home and abroad.  Both markets have the potential to expand.


  1. Source of Raw Material: Mainly in areas around Lake Tana, Birr Shelko and many localities in all parts of Amhara.


  1. Production Process & Technology: Spices can be ground with two different methods: dry grinding and wet grinding.  The process in dry grinding is as follows: Cleaning, sun-drying, pulverizing, screening and packaging.  In wet grinding the process are cleaning, wet grinding, screening, spray drying and packaging.  For the different spices there are different formulations.  Machinery for the dry grinding process includes micro pulverizer, electric motor, vibratory screen, weighing balance.  For wet grinding churner, electric motors, storage tank, slurry pump, heating unit, cyclone separator, weighing balance and some accessories.


  1. Estimated Investment: Buildings with 300 m2 at Birr 1500= Birr 450,000 plus plant & machinery Birr 250,000= Birr 700,000.


  1. Benefits:  More foreign exchange earning, more resources to the Region, stimulates further production of spices on commercial basis.


Location: Bahir Dar, Bure, Gondar.