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NATIVES OF OMO-KURAZ SUGAR DEVELOPMENT PROJECT AREA

REQUESTED GOVERNMENT TO FOSTER SUGAR DEVELOPMENT ENDEAVOR

Native residents of the Omo-Kuraz Sugar Development Project surrounding areas requested the government to foster the sugar development endeavor so that they can significantly benefit from the development.

SweetVISION ፡ To create sugar industries competitive enough at international level based on a sustainable growth pattern

Vol. 3 No. 1 September , 2014Newsletter

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BALANCED SCORE CARD (BSC) TRAINING GIVEN TO THE LEADERSHIP OF THE CORPORATION

Balanced Score Card training that aimed at capacity building to realize the mission and vision of Sugar Corporation through strategic leadership has been given to 405 medium and higher level management of the Corporation.

The training has equipped the trainees with the necessary awareness, knowledge and skill concerning the BSC,

SUGAR CORPORATION SEES BETTER PERFORMANCE LAST

BUDGET YEARSugar Corporation has seen a better performance at head office, factories and projects in the completed Ethiopian budget year.

The Corporation’s annual performance report has indicated activities undertaken based on the roadmap plan and results achieved have enabled the Corporation

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Corporation leadership attending the training

Participants of the discussion

Sweet Ethiopian New Year!

Insi

de P

ages Sugar Co-products and Agro-processing–

Bonuses of Sugar Industry

Quarterly Newsletter Published by Sugar Corporation Communication Directorate, :+251-(0)11-552-7475/6322 : +251-(0)11-515-1283 : 20034 Code 1000 A.A Sugar_corp@ethionet.et

Employees of the corporation plant tree seedlings in Yeka Sub-city

The Art of the Kaizen Approach for Sugar Production in Ethiopia: Lessons from the Methara Sugar Factory

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In the discussion held at Jinka town of South Omo Zonal Administration between clan leaders, elders, women and the youth of the project surrounding areas comprised of Boddi, Murssi and Mieinnit nationalities and the leaderships of Sugar Corporation as well as the S/N/N/P regional government, the resident participants requested the government to foster the sugar development activities in order to maximize their social and economic benefits.

Some of the participants of the discussion represented from South Omo Zone disclosed that they are eagerly waiting to see the sugar factories under construction in their area commence sugar production like that of Wonji Shoa Sugar Factory which they have paid a visit to earlier. According to the Bodi community just from the outset of the development process they have got access to infrastructures and social services. Moreover, the project has enabled them introduce themselves with farming so that they have started enjoying their own harvest.

On the other hand, the Murssi nationalities from South Omo Zone and the Mieinnit nationalities of Keffa and Bench-Maji zones who came from areas where the project activities have not reached yet asked the government to accelerate the sugar development activities which will enable them improve their living condition like those residents of other areas

where the project’s activities are already underway.

Disclosing their firm commitment to overcome whatever challenges they might face in the process of realizing the late Prime Minister Meles Zenawi’s development vision which he shared them while he had visited the area, they declared their readiness to contribute their part for the realization of the sugar development effort. Moreover, the participants noted that the development endeavor has brought all nationalities which were used to view one another as enemies rather than friends stand together in fostering the development effort. The sugar development work has, therefore, brought about a strong social link to them, they also mentioned.

Director General of Sugar Corporation with the rank of Minister, Ato Shiferaw Jarso, while presiding over the discussion forum, on his part, said that the points raised in the meeting showed the encouraging results achieved in the sugar development activities. In addition to creating access to canal schemes, the government’s effort to ensure infrastructures and social services accessibility to all areas irrespective of the command areas clearly demonstrates the government’s firm commitment in benefiting the local community, he further added. He at last called upon the native residents to play their part in facilitating the

sugar development endeavor.On the other hand, Tagesse Chaffo, Vice President of the S/N/N/P Regional Administration, reminding the government’s effort in making the natives the first beneficiaries when diverting the Omo River, disclosed that both the federal and regional governments execute any development activity at any area giving priority to the benefit of the natives. Moloka Wubneh, Head Chief of South Omo Zone, on his part, said that the reflections of the participants during the discussion showed the evasion of suspicions and fears which were used to be noticed earlier on similar discussion forums. The villagization program under execution has enabled native residents to access various infrastructures and social services.

The Omo-Kuraz Sugar Development Project is found at South Omo, Keffa and Bench-Maji zones of S/N/N/P Regional State in which five sugar factories in total will be constructed with 175 thousand hectares of sugarcane plantation field.

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Attendants of the discussion partially

NATIVES OF OMO-KURAZ SUGAR DEVELOPMENT...

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SUGAR CO-PRODUCTS AND AGRO-PROCESSING–BONUSES OF SUGAR INDUSTRY

Ethanol and energy are the widely known co-products of sugar industry produced in the pro-cess of sugar production.

Ethanol is used for blending purpose with petrol as well as an input for alcohol, painting and phar-maceutical industries, thereby saving foreign currency.

The energy produced from the byproducts in the process of sugar production can have a cru-cial role in supporting the demand of the nation apart from satisfying that of the sugar factories from the self-generated energy. In addition to the commonly known aforemen-tioned co-products, practices of countries and studies in the sector also prove that other high economic value co-products and byproducts can be produced from the sugar industry.

Sugar Corporation is undertaking practical activ-ity to utilize the potential related to sugar indus-try co-products by establishing “Co-products and Agro-processing Division” at its head office.

Deputy Director General of this new Division Atakilti Tesfay told Sweet Newsletter that even though the final goal of the sugar industry is to produce sugar, there are various co-products that can be and should be produced in the process.

Processing animal feed from sugar byproducts such as molasses and bagasse, thereby enabling the nation to benefit properly from its vast live-stock resource is among the major focus area that

the Corporation is working on through this Divi-sion, Atakilti states.

In this aspect, the Corporation envisions process-ing animal feed from the byproducts of sugar in-dustry for dairy farming and livestock fattening in order to process high quality standard dairy products and meat for both domestic and inter-national markets.

The Deputy Director General also says that there is an opportunity for agro-industry through pro-cessing fruits in all sugar factories and projects areas by taking the fruit production practice al-ready in place at Metahara Sugar Factory as a case in point. Various activities are underway to realize these goals in addition to securing human resource for this e sector.

“When we were thinking of this work, it was nec-essary to take experience from other countries that are already working in this area. That is why we have visited the Sudanese Kenana Sugar Com-pany which has signed a memorandum of under-standing with our Corporation which will enable both to work in collaboration in the sector. The Company has a good experience in processing animal feed from sugar byproducts. This will help us as a starting point for what we are planning to undertake in the 2007 Ethiopian budget year,” Atakilti said.

The government believes in working with coun-tries that have the financial and technological capacity in this area. Accordingly, the

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Ethiopia is one of the leading countries of Africa in cattle resource

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Corporation has also sent its expression of interest to some of the companies working with it in the sugar industry sector and some of them have already submitted proposals on how to make the work feasible, Atakilti stated.

The proposals included estab-lishing animal feed processing plant from sugar byproducts, dairy farm center design, ba-gasse hydrolyzing technology for animal feed and organic fer-tilizer processing technology center, he explained.

“The next assignment of the Division is to undertake ani-mal fattening which does not require maximum technology

and fruits production in all the factories and the projects after the Corporation’s management decides as what to do where. For the start this will be the ma-jor work in the current budget year,” he further said.

Furthermore, the Division will undertake activities such as inter-cropping of soya beans and haricot beans with sugar-cane and also producing cotton using idle lands in the current budget year.

According to Atakilti, Sugar Corporation aims at upgrad-ing the benefit gained from the nation’s livestock through pro-cessing animal feed in addition to generating income for itself.

He also stated that the sector is also open to investors inter-ested to engage in as it is an enormous work that the Corpo-ration alone cannot achieve. As the sector is so wide the door is open to investors, Atakilti stat-ed.

“The nation has not benefited as it is ought to from its vast livestock potential resource. The sector did not grow as it was supposed to. The major reason for this is lack of qual-ity and sufficient animal feed. The Corporation has a capacity to fill this gap. We will realize this great national mission,” the Deputy Director General elabo-rated.

Corporation’s top management leading the discussion on BSC

» Continued from P. 3Sugar co-products ...

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the Corporation’s Change Management Directorate has stated.

According to the Directorate, various committees were established for the implementation of the BSC.

The training will also be offered to employees at the head office as well as sugar factories and projects after which BSC strategic document would be prepared.The BSC would contribute greatly to utilizing resource appropriately, relating activities and

BALANCED SCORE CARD (BSC) ...performances of individuals and teams to the strategic plan of the Corporation as well as to evaluating the performance of individuals, teams and the organization consistently, the Directorate noted. The system would also help to relate the result of the strategic plan performance with a motivation system.

During the training, it was also clarified that the BSC and the Kaizen philosophy are tools of change that can be used together in such a way that one complements the other to realize the vision and mission of the Corporation.

The BSC is also a tool that would enable to evaluate achievements that have been registered through Kaizen implementation and other management tools, the Directorate further stated.

The directorate has stressed that both the BSC and Kaizen are management tools that should be implemented jointly to bring about attitudinal change on employees and there by register better results in the organization’s endeavors.

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to show progress from where it was in the previous budget year and has laid foundation for the works ahead.

According to the road map, it was planned to produce 493 thousand 321 tons of sugar in four sugar factories including Tendaho in the last budget year. However, due to the delay encountered in finalizing Tendaho Sugar Factory 325 thousand 25 tons of sugar was produced in the existing three sugar factories alone.

The amount of sugar produced in the last budget year has increased by almost 100 thousand tons compared to that of the previous year.

The only ethanol producing sugar factories, Fincha and Metahara, have produced over 19.7 million liters of ethanol in the year. The amount has increased by over 5 million liters from the previous year.

The report also indicated that implementation of Kaizen philosophy has helped not only in motivating employees and creating a sense of ownership but also in saving in millions.

Better performances were registered in cane plantation, housing and irrigation projects as well as factory planting compared to that of the previous year, the report stated.

According to the report, delay in projects, prolonged rainy season in Fincha Sugar Factory, limitation in capacity and delay in procurements are some of the challenges encountered.

In the current 2007 Ethiopian budget year, the Corporation has planned to produce over 1.2 million tons of sugar and over 30.2 million liters of ethanol. According to the plan, over 665 thousand tons of sugar would be exported to secure 311 million USD by this budget year.

The Corporation’s plan envisions producing 189 MW energy in the current budget year out of which 46 MW would be channeled to the national grid.

With regard to cane plantation, five thousand hectares would be planted for the existing factories, whereas over 33.5 hectares of land would be covered with cane plantation in the projects which would lift up the project’s cane plantation coverage to 81,914 hectares.

Sugar co-products and agro processing works are among the focus area of the Corporation in this budget year through establishing animal fattening center and processing animal feed.

The report indicated that the Corporation will work to create over 100 thousand additional jobs in the budget year.

It is to be recalled that all new sugar development project areas had been devoid of infrastructures forcing Sugar Corporation to start from the scratch in making them ready along with the work of these projects.

» Continued from P. 1Sugar Corporation sees better ...

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Metarhara Sugar Factory G/Manager receiving award from the deputy PM Demeke Mekonin

The delegation represented the factory was warmly welcomed on its return

METAHARA SUGAR FACTORY AWARDED AT NATIONAL LEVEL FOR KAIZEN IMPLEMENTATION

Metahara Sugar Factory has won a nationwide competition orga-nized by the Ethiopian Kaizen Institute in implementing first phase Kaizen philosophy.

The first phase of Kaizen imple-mentation competition award organized by the Institute was held at Capital Hotel in June, 2014 for the first time in human resource development as well as export and import product in-dustries.

The Factory stood first in those competitions at individual, de-velopment team and institute level, thereby winning gold and trophy award. On the occasion, guest of honor Deputy Prime Minister, Demeke Mekonnen handed over the award to the General Manger of Metahara Sugar Factory.

The Factory was also given a seat of honor in the first phase kaizen implementation award ceremony to be held every year. In a related story, the Art Cen-tre of Metahara Sugar Factory was commended for a drama it presented on the occasion. The Art Centre was also given an opportunity to participate in all national kaizen mobilization fo-rums because of the high edu-

cational value of the drama and its presentation.Residents of Fentalle Woreda and Metahara Town have warm-ly welcomed the delegation of Metahara Sugar Factory partici-pated in the award ceremony on its return.

On the occasion, Chief of the Fantalle Woreda, Tadele Dirirsa and Mayor of Metahara Town, Mohammed Kemal commend-ed the victory as belonging to the people of Metahara and its environs as well.

Employees of Metahara Sugar Factory and their families have also celebrated the victory at the factory’s stadium.

General Manager of Metahara Sugar Factory, Zenebe Yimam, on the occasion, congratulated the whole leadership, employ-ees and their families as well as the surrounding community for their role and commitment for the victory gained. He also called for extra commitment of the employees to accomplish the factory’s development goals ahead.

Meanwhile, Metahara Sugar Fac-tory has shared its kaizen imple-mentation experience to Omo Kuraz Sugar Development Proj-ect.

During the experience sharing, General Manager of Omo Kuraz Sugar Development Project Kas-sa Tesfaye said that the Project has a lot to learn from Metaha-ra Sugar Factory’s kaizen imple-mentation experience.

According to the Public Rela-tions Department of Metahara Sugar Factory 1250 employees have participated in the expe-rience sharing that lasted for four days at Omo Kuraz Sugar Development Project.

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METAHARA SUGAR FACTORY PRODUCES OVER 8.6 MILLION LITERS OF ETHANOL

Metahara Sugar Factory produced over 8.6 mil-lion liters of ethanol in the last 2006 Ethiopian Budget year. The production is the highest since the ethanol factory commenced production in 2003 E.C.

Ethanol Production Department Team Leader with Metahara Sugar Factory, Bekele Mirkena told the Factory’s public relations that the production increase is the result of motivation created within employees through the implementation of Kai-zen philosophy.

According to Bekele, the factory has produced over 10.6 million liters of rectified spirit and 17.7 million liters of ethanol for domestic and interna-tional market.

As per its design capacity the ethanol plant has planned to produce 12 million liters ethanol in the current (2007) Ethiopian budget year, he said, adding that the employees are working with commitment to achieve the goal set.

Ethanol is being used in Ethiopia for blending purpose in petrol assisting to save foreign curren-cy used to import petroleum. Ethanol is a renew-able, domestically produced alcohol fuel made from plant material sugar cane residue known as molasses in the process of sugar production.

ASAYEHGN DESTA, PH.D. SARLO DISTINGUISHED PROFESSOR OF SUSTAINABLE ECONOMIC DEVELOPMENT, BAROWSKY SCHOOL OF BUSINESS, DOMINICAN UNIVERSITY OF CALIFORNIA

Business Process Reengineering (BPR) deals with fundamental organizational change, or is the great-leap approach to redesigning and retooling. It seeks to bring a radical approach to creating a breakthrough in organizations trapped in outmoded and outdated business processes.

Top managers and consultants design new ways of doing things and force companies to go beyond continuous improvement of existing products, services, and processes. Though innovative, BPR is being challenged by some companies looking for a strategic remedy that will contribute to the sustainable improvement of their performance and quality, add value for their customers while minimizing cost and eliminating waste.

To counteract the expensive and technology-intensive strategy proposed by BPR, many managers and policymakers have embraced the Japanese management philosophy of Kaizen. For incremental change of productivity and addition of value, Kaizen uses a gradual approach using existing technology, training work teams, humanizing the workplace, and liberating the thinking of top management and employees at all levels. Since Kaizen requires the use of existing technology and the retraining of existing workers, many poor countries that lack capital embrace Kaizen management practices for improving their enterprises.

A case in point is the Metahara Sugar Company in Ethiopia where the production of sugar declined substantially. This was because of mismanagement of the company, disregarding juice leakage,

THE ART OF THE KAIZEN APPROACH FOR SUGAR PRODUCTION IN ETHIOPIA: LESSONS FROM THE METHARA SUGAR FACTORY

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Metahara Ethanol Plant

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THE ART OF THE KAIZEN APPROACH FOR SUGAR ...repetitive loss of electrodes, and the outright stealing of sugar and spare parts. More importantly, the cane cutters negligently left uncut 4cm to 22cm of the canes still containing sucrose.

In addition, when machines broke down, there were lengthy delays for repairs and servicing while waiting for outside technicians rather than using in-house technicians. With the anticipation that the Kaizen management technique would enable it to increase the quantity of sugar, meet the needs of consumers and be globally competitive, the Metahara Sugar Factory adopted the Kaizen management technique in 2013.

With the introduction of the Kaizen management techniques at the Metahara Sugar Factory, Ethiopia, the overall performance of the company may be considered remarkable and from the outset the sugar plantation area has a panoramic view. In pursuing Kaizen standards, the Metahara Sugar Factory has achieved a nationwide average sugarcane crop yield of 126.93 tons per hectare. Currently, both the sugarcane plantation and sugar production have increased by 35% and 37% respectively. The production cost of one unit quintal of sugar has decreased by about 23 Ethiopian birr and the overall time efficiency has increased by about 20% since the company has embarked on Kaizen (Metahara Sugar Company, June, 2013).

Also, the Kaizen management strategy, by involving everyone in its organization to work together,

has achieved improvement without large capital investments. Kaizen is ingrained in the minds of both managers and workers because slogans about the Kaizen philosophy are posted all over the factory as reminders to improve the efficiency of the existing infrastructure. Not only for the factory workers, the posters give valuable lessons to visitors letting them know there is no end to improvement and that many small incremental developments will accumulate into substantial gain. The workers appear highly motivated and feel that the company has improved their morale and safety. For example, by and large, the health services center is very clean and gives both preventative and curative services to the workers of the company and their families.

The most remarkable aspect of the Kaizen socialization process is that it has positively affected the workers to practice at home what they have been socialized to do at the sugar factory.

Over time, upon the company’s total mastery of Kaizen, the performance measures are likely to show a road to success.

However, the sustainability of the company should not be seen only in the production of highly productive cane sugar (sucrose). But, it should extend to the production and processing of other products that include, molasses, bagasse (the residual dry fiber of the cane after cane juice has been extracted, that can be used as a fuel source for the boilers, production of paper, cardboard and panel boards. Bagasse could be used as a replacement for wood in many of its applications); dried filter cake (used as an animal feed supplement, fertilizers, and source of sugar wax); and the production of ethanol used as a biofuel alternative to gasoline.

By diversifying the energy security, Ethiopia could conserve its scarce foreign exchange reserves on fuel imports, thereby lowering its exposure to price volatility in international oil markets (Alemu, D.,Feb 26, 2013). Finally, while the company is wrestling with the Kaizen management strategy, it needs to figure out how the excessive electricity generated from steam could increase its revenues by selling to local power companies.

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OMO KURAZ SUGAR DEVELOPMENT PROJECT UNDERTAKING ACTIVITIES BENEFITING LOCAL COMMUNITIES

Omo Kuraz Sugar Development Project has said it is undertaking more activities that benefit local communities.

The Project’s Public Relations report stated that social service delivery institutes constructed for pastoralists in Maki and Gura villages of Selamago Woreda in South Omo Zone will be operational shortly.

Public Relations and Social Affairs Team Leader with the Project, Birhanu Arega said that the Project has prepared over 1,600 hectares of land for pastoralists gathered through the villagisation program at which they will produce and provide sugarcane for the factory and thereby benefit from it. The pastoralists have also got irrigable land at individual level so as to enable them produce crops of their own choice.

The Project is undertaking a 54 km road construction in kebeles bordering the project in Kaffa zone to connect them with the woreda center. The road construction project which is being undertaken by the machineries of the sugar development project is estimated to be over 1.4 million birr, it was learnt.

Birhanu further said that the road is being constructed in areas where there was no infrastructures before and will have significant economic and social value to the native residents of the area.

Speaking regarding the benefit of the road, resident pastoralist of Neda kebele in Decha Woreda, Wormay Workagdon shared his feelings saying “the road will enable me get easy access to the market and health services”.

It is to be recalled that the project had constructed social service institutes for resident pastoralists at Shigdan Village of Selamago Woreda where it has first started constructing Kuraz 1St sugar factory.

CANE PLANTATION IN AMIBARA FARM COMPLETED

The cane plantation that has been under-way in Amibara Farm for Kesem Sugar De-velopment Project in Afar Region is com-pleted.

The plan to cover 6000 hectares of land in Amibara Farm with sugarcane plantation during the completed Ethiopian budget year was totally achieved with some addi-tional weeks.

Metahara Sugar Factory has provided all the quality seed cane needed for the plantation.

The cane plantation has taken place to pro-vide sugarcane for Kesem Sugar Factory to be completed in 2007 E.C.

The management team from Metahara Sug-ar Factory and staffs of the factory’s Agricul-ture Research Center have recently visited the Amibara cane plantation and described the activity as encouraging.

The team has also discussed some challeng-es witnessed in the process of the planta-tion and forwarded solutions for necessary adjustments.

According to the Public Relations of Me-tahara Sugar Factory, implementing Kaizen philosophy in the farm was seen as sig-nificant for which Metahara Sugar Factory showed readiness to assist in the process.

The agreement between Sugar Corporation and Amibara Agriculture Development P.L.C was signed on March, 2006 E.C. with the for-mer in developing and supplying cane to Kessem Sugar Factory.

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YOUTHS DRAWN FROM KESEM AND ARJO DIDIESSA SUGAR PROJECTS AREAS CERTIFIED IN TRACTOR OPERATION

Sugar Corporation in collaboration with Ethiopian Roads Authority has certified 19 youths drawn from Kesem and Arjo Didiessa sugar development projects areas in tractor operation.

This is for the second time that the Corporation has trained and certified farmer and pastoralist youths in tractor operation. The number of trainees in this area has so far reached 70.The trainees have attended the training program for two months

in Ginchi and Chancho Tractor Operator Training Institute and would be employed in the sugar development projects in their local areas.

Speaking on the graduation ceremony of the trainees, Public Organization and Participation Division Director with Sugar Corporation, Ekal Netir has said that apart from creating job opportunity the training would create a sense of ownership in the projects in the local community.

He further went on saying “giving various trainings for the local community to help secure different job opportunities in the projects would continue”.According to Ekal, the Corporation has so far deployed 1,316 citizens drawn from the pastoralists and farmers in sugar project areas to work in its different projects in various fields including tractor operation, construction, agriculture and other related works after providing relevant trainings in those fields of work.

Sugar Corporation Director General with the rank of Minister, Shiferaw Jarso has said environmental conservation works have significant

EMPLOYEES OF THE CORPORATION PLANT TREE SEEDLINGS IN YEKA SUB-CITY

contribution to the sugar development sector.The Director General made the remark while employees of the Corporation were planting tree seedlings in Gurara area of Yeka Sub-city at the outskirts of Addis Ababa.

Shiferaw said the environmental conservation works can immensely contribute in sustaining the flow of rivers used in irrigation for cane plantation. To this effect, the Corporation is also undertaking environmental conservation works at all its projects and factories, he added.

The Director General further noted that the environmental conservation works undertaken in the nation so far have resulted in rejuvenation

of the environment and dried streams. He also stressed the need to nurture tree seedlings planted in order to truly benefit from the work.

Shiferaw also underscored that the nation can benefit from the vast tree seedling plantation that is taking place every year through carbon trading as well. Employees participated in the tree seedlings planting program expressed their happiness to be part of the nation’s endeavor for building green economy.

The Corporation’s employees had also planted tree seedlings last year in the park prepared for the commemoration of the Great Leader, Meles Zenawi.

Corporation Director General planting tree seedling

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Sugar Corporation leadship recently visited the construction of Kesem Sugar

Factory which is well in Progress

Sweet Ethiopian New Year!