Saudi Star Agricultural Development Plc, owned by billionaire Mohamad al-Amoudi, plans to invest US$100 million into rice production in western Ethiopia next year. The company leased 10,000 hectares (24,711 acres) in 2008 and purchased the Abobo Agricultural Development Enterprise from the Ethiopian government 18 months ago for US$4 million. Irrigation issues and contractor performance problems caused delays in production, but after a farm redesign, a change in management, and a successful trial run of rain-fed rice on 2,000 hectares, Saudi Star is prepared to move the project forward in 2015. The project is part of a plan formed by the Ethiopian government in 2010 to establish commercial-scale farming operations on 3.3 million hectares of land in low-population regions of the country. Through the implementation of this plan, the government aims to reach agricultural exports valued at US$6.6 billion by 2015. The $100 million investment will be allocated to the improvement of the farm’s irrigation infrastructure, a rice de-husking plant, storage silos, and land clearing. Once the irrigation system is finished and 60% of the rice produced is being exported to Arab nations, Saudi Star’s revenue for 2016 is forecast to be $60 million.
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