Tuesday, April 25, 2017

The company has around 120 donkeys in stock

Despite a ban from the Bishoftu city administration, Shandong Dong, the first donkey slaughterhouse in Ethiopia, is carrying on with the business until the stock of donkeys it has already purchased have been slaughtered. Their stock should be complete sometime in the next week.

In a letter issued on April 16, 2017, the administration banned the Chinese company from carrying on with its operations, saying that it was offensive to the people who are living around the plant. The ban comes three weeks after public outrage exploded on social media platforms such as Facebook and Twitter.

“We cannot compromise when the community is demanding its closure,” said Dereje Jira, head of Bishoftu city administration Mayor’s Office. “One of the important points in our deep reform is avoiding negligence of the people’s demands.”

The shutdown, however, is not stopping Shandong Dong or donkey wholesalers, whose businesses have also suffered.

“We cannot cease immediately,” said Lio Zhaohua, country director of Shandong. “We are supposed to complete at least what we have in stock.”

During Fortune’s visit to the abattoir last Wednesday, no less than 120 live donkeys were in stock.

“This is a joke,” said Lio. “Any investment should get notice before a shutdown. The letter I received is even in Afaan Oromo; I could not read it.”

Shandong first came to Ethiopia five years ago and secured a license from the Ethiopian Investment Commission. Its original plan was to buy donkey skins from the Ethiopian market. The Commission, however, suggested the Company open its slaughterhouse instead, saying that they would not find anyone suppliers for donkey skin. With an initial capital of 62.6 million Br, Shandong started to build a donkey abattoir.

“It is the fault of the previous city administration council,” Dereje explained. “They should not have accepted the investment without getting the consent of the community living near the abattoir.”

Four years ago, before the construction of the plant, Shandong’s management and the communities living near the proposed site held discussions about the existence of the company, at Bishoftu City Investment Bureau.

“We discussed and agreed on the issue first with the community living around our plant,” said Lio. “I don’t know why the current administration is against the survival of the abattoir.”

Fitsum Arega, the commissioner of the Ethiopian Investment Commission, made it clear that such investments have not been accepted since 2014.

“Other than those registered before 2014, we don’t allow such investments anymore. They are not in line with societal values and culture,” he told Fortune three weeks ago.

However, the City claims it ordered the closure of the abattoir for the sake of the investors themselves.

“If we ignore the complaints and let the investment continue, it will eventually lead to unrest and property damage,” said Dereje. But he refrained from disclosing why the current administration did not act before the abattoir became operational.

Six months ago, Shandong, which covers 10,050sqm, was torched by protestors in Oromia Regional State.

“We lost five million Birr because of the protests,” said Lio.

It took two years to complete the donkey abattoir, which cost 80 million Br. The construction created jobs for more than 300 people, who live near the abattoir and come from other parts of the city.

“As long as we are here to invest, we should get some respect. We spent our time and money for the past two years here,” said Lio. “The city administration must be open for discussion.”

The company, which is the first of its kind in Ethiopia, has slaughtered over 2,000 donkeys so far, which are expected to be ready for export next week. It can slaughter up to 200 donkeys a day.

The meat will be exported to Vietnam while the hide is shipped to China, where it is an essential ingredient for some types of medicine.

Some believe that the closure is against the law of the country.

“Taking such kind of action in a country where a rule of law exists is not acceptable,” said a legal expert, who has more than a decade of experiences. “Once the business is licensed, the city administration cannot shut down the abattoir without a court warrant.”

After the ban, the Company wrote a letter to Ethiopia Investment Commission, the Ministry of Trade, Ministry of Agriculture, and the Meat & Dairy Industry Development Institute, requesting a reversal of the decision.

It also wrote to the Chinese Embassy, saying the ban is illegal, and that it would affect the relationship between the two countries.

About 65 of the company’s employees signed a petition asking the city administration to abandon the ban.

Yared Alemayehu, an employee who works in the abattoir, is one of the 65 employees who demanded the government reverses its decision.

“We cannot afford to lose this kind of high paying industry,” he said.

Shandong pays an average salary of 2,500 Br a month, according to Lio. Every day, between 20 and 30 people come looking for employment in the factory.

Lio believes that these kinds of investments are evident with the development of a society in life and ideals, citing the case of pork meat.

“Two decades ago, many investments were not allowed to breed and kill pigs. But, now it has become one product chain, Lio said.

“The same thing also applies to donkeys. Countries such as Pakistan see the business from the objective point of view.”

The Pakistani government invested more than a billion rupees in breeding donkeys to sell to China.

On the other hand, the ban is a welcome move for some entities.

“This news is a big relief to us all. Donkeys are central to Ethiopia’s agriculture and economy. The decision speaks volumes that the government values donkeys in its society, and have listened to the people,” said Bojia Endebu (PhD), country manager of The Donkey Sanctuary.

If it becomes fully operational, Shandong would need two percent of the country’s donkey population every year. This amount, according to the company, is equal to the number of donkeys that die annually of other causes. Ideally, it would also contribute more than 20 million dollars to the export sector.

However, there is a danger associated with the industry.

The trade of the hides, estimated to be 1.8 million globally, puts donkey populations at risk. With its large donkey population, Ethiopia is among the countries that are under the same threat, according to a researcher who asked to remain anonymous.

In 2016, there were over seven million donkeys in the country. The ban makes Ethiopia the fourth country to shut down donkey abattoirs, after Mali, Senegal, Niger and Burkina Faso.

By SAMSON BERHANE

FORTUNE STAFF WRITER

Published on Apr 22,2017 [ Vol 18 ,No 886]

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