Pharo's oilseed factory in EthiopiaPharo Foundation | 30 April 2025Pharo Ventures’ value added transformation: From farmer to country
by Meseret Wodaje
Every week, Mr. Fikiru, a farmer from Koy Kebele in Gambela Region, loaded sacks of sesame and flaxseed onto a rented truck, some of it even packed on the back of his animals, and travelled hundreds of kilometres to reach the nearest market in town. It was a long and exhausting journey both for him and for his harvest. With no warehouse to store his crops and no access to reasonable buyers, Mr. Fikiru and his fellow farmers were often forced to sell their product at bargain prices to middlemen: quite simply if the farmers failed to sell their product, transporting the unsold goods back home at their own cost was a financial loss they couldn’t afford. “We didn’t have better options,” Mr. Fikiru recalls. “Either we sold at whatever price we got, or we risked losing everything.”
That was until Pharo Ventures Ethiopia stepped in. Today, Mr. Fikiru is one of the 220 farmers in Dima Woreda and Koy Kebele who have signed contract farming agreements with Pharo Ventures. Through this initiative, these farmers no longer have to gamble with their hard-earned harvest. Pharo Ventures buys directly from them at guaranteed prices, eliminating the need for middlemen and the risks of distant travel. In addition, Pharo Ventures did not just offer a market to these farmers, it offered a partnership.
Through these partnerships with smallholder farmers at Koy Kebele and Dima Woreda of Gambela Region, Pharo Ventures has established seed sourcing sites designed to secure top-tier sesame, flaxseed, niger seed, and black cumin seed. These aren't just procurement points; they are platforms for quality control, traceability, and organic certification.
Throughout the farming season – from land preparation to harvest, farmers like Mr. Fikiru will now receive technical support from extension workers and agronomists to make sure farmers grow their crops in a standardized way. Pharo Ventures also supplies these farmers with seeds from Gondar Agricultural Research Centre (GARC), certified by the Seed Quality, Inspection and Quarantine team at Gondar Branch. Since we started closely working with these farmers and established a partnership, Pharo Ventures has already distributed 33.5 quintals of certified seeds, aimed at boosting both quality and yield.
When explaining the importance of working closely with partner farmers, Mr. Ayalikibet, Head of Agri Business at Pharo Ventures, said, “We are facilitating contract farming in this area, not only to secure quality seeds for our production, but also to help farmers earn a steady income. Plus, they now have access to our local storage facilities, which reduces post-harvest losses and takes the logistics burden off the farmers’ shoulders. In the end, it’s a win-win for both parties, farmers are growing healthier, organic crops not only for the market but also to feed their families. And all of this is helping deliver better, healthier oils to the global market.”
Mr. Ayalikibet continued, “Back at the oil factory in Debre Birhan, located in Amhara Region of Ethiopia, these high-grade seeds are cold pressed to preserve their natural goodness after transporting them from Gambela Region located in the Western part of Ethiopia. Our factory is now beginning production, and our oils are being produced without additives, are minimally processed, and are perfect for the growing global demand for natural, nutritional foods.”
Yet the micro benefits to the farmers end up also boosting Ethiopian economic development at a macro level. Pharo Ventures Ethiopia Managing Director, Bethel Tsegaye, expanded on the value-added nature of our entire oil production process, saying: “Instead of exporting raw sesame seeds, Ethiopia will now export value-added health-conscious oils through Pharo Ventures. This will boost the country’s standing in the global value chain, while the Debre Birhan oil factory provides local employment, and hence injects income into surrounding communities and fuels the social development work of Pharo Foundation.” A win-win proposition...
To further secure quality and sustainability, Pharo Ventures has acquired 1,000 hectares of fertile land in Tum Woreda of the Southwest Region of Ethiopia in 2024. Our Sourcing and Agronomist Lead Yitbarek Mengistu explained, "We chose the location for its virgin soil and high crop potential. A soil study is currently underway to prepare the land for organic cultivation. The plan is to begin setting up a nursery for high value crops such as cocoa, cashew and macadamia nuts to name a few.”
Plans are also underway to open Farmer Centres, which will provide ongoing consultancy services and agronomy training support to rural communities in the areas which Pharo Ventures operates in.
From Mr. Fikiru’s small farm in Gambela, to seeds being processed in the Amhara Region of Debre Birhan, to the international market in Europe and beyond, Pharo Ventures Ethiopia’s oils will carry a powerful story of transformation—from resilient farmers to sustainable communities, all the way to the shared prosperity of a country driven by high value added economic activities.
