The markets and industrial utilization of agricultural commodities have undergone considerable change in the last few decades.
In Zambia, sorghum was considered a traditional crop with limited industrial uses.
Research and transformations in consumer tastes and preferences have led to the development of new uses for sorghum.
Potential markets for industrial utilization of sorghum have been identified as food processing, beer brewing, feed concentrates and energy production.
One of the success stories in industrial utilization of sorghum has been Eagle, a sorghum based clear beer produced by Zambian breweries.
The study reported in this paper aims to examine the main linkages in Eagle lager value added supply chain.
Conclusion and recommendations:
Zambian breweries should invest more in improving the image of Eagle Lager.
Zambian breweries should follow up on pricing and beer strength complaints expressed by consumers

Chimai, Bernadette C.

English

DigitalCommons@University of Nebraska

University of Nebraska - Lincoln DigitalCommons@University of Nebraska - Lincoln INTSORMIL Presentations International Sorghum and Millet Collaborative Research Support Program (INTSORMIL CRSP) 2-22-2011 Sorghum Clear Beer Value Chain Bernadette C. Chimai University of Zambia, chimaibernadette@yahoo.com Follow this and additional works at: https://digitalcommons.unl.edu/intsormilpresent  Part of the Agricultural Economics Commons, Agronomy and Crop Sciences Commons, and the Food Processing Commons Chimai, Bernadette C., "Sorghum Clear Beer Value Chain" (2011). INTSORMIL Presentations. 15. https://digitalcommons.unl.edu/intsormilpresent/15 This Presentation is brought to you for free and open access by the International Sorghum and Millet Collaborative Research Support Program (INTSORMIL CRSP) at DigitalCommons@University of Nebraska - Lincoln. It has been accepted for inclusion in INTSORMIL Presentations by an authorized administrator of DigitalCommons@University of Nebraska - Lincoln. SORGHUM CLEAR BEER VALUE CHAINBernadette C. ChimaiDepartment of Agricultural EconomicsUniversity of ZambiaLusaka, Zambiachimaibernadette@yahoo.com2/22/20111INTRODUCTIONThe markets and industrial utilization of agricultural commodities have undergone considerable change in the last few decades. In Zambia, sorghum was considered a traditional crop with limited industrial uses2/22/20112INTRODUCTION CONT’D. Research and transformations in consumer tastes and preferences have led to the development of new uses for sorghum.Potential markets for industrial utilization of sorghum have been identified as food processing, beer brewing, feed concentrates and energy production.2/22/20113INTRODUCTION CONT’D2/22/20114One of the success stories in industrial utilization of sorghum has been Eagle, a sorghum based clear beer produced by Zambian breweriesThe study reported in this paper aims to examine the main linkages in Eagle lager value added supply chainOBJECTIVESThe main objectives were to: Identify the key players in the supply chainExamine the value addition activities performed by the chain players2/22/20115INDUSTRIAL UTILIZATION OF SORGHUM Industrial utilization is still low in sub-Saharan Africa (Rorhbach). Less than 3% of the sorghum produced in sub-Saharan Africa undergoes commercial processing. 2/22/20116CONCEPTUAL FRAMEWORKA value chain analysis provides useful information on the main activities and operations of a supply chainA value chain has the following primary components; inbound logistics, operations, outbound logistics, marketing, and sales and services (Porter, 1980)2/22/20117METHODSThe study involved a questionnaire based industrial survey of Lusaka-based Eagle lager value added supply chain players. Interviews were conducted with key informants at CHC commodities, Zambian Breweries, Nenima trading, R.S distributors, Dandiker Holdings and Jonathan Njobvu bar.2/22/20118EAGLE LAGER SUPPLY CHAINEagle lager was introduced on the Zambian market in 2005Started out by contracting 2,500 small scale sorghum farmers in the 2004/2005 agricultural season (Inspiris, 2006).  The key players in this value added supply chain are sorghum farmers, traders, brewers, distributors and retailers.2/22/201192/22/201110EAGLE LAGER SUPPLY CHAINFarmersSmall scale traders Commodity brokerBrewerDistributorsRetailersSource: Authors’ creation based on information from an industrial survey, April 2007COMMODITY BROKERCurrently, Zambian Breweries (ZB) gets all of its sorghum supplies from a local commodity broker, CHC commodities It purchases sorghum from small scale farmers, small traders and large scale farmersPrices were K960,000-K1,125,000 per metric ton2/22/201111The sorghum collection point for CHC Commodities was based in Kabwe District, Central Province.During the 2005/2006 marketing season, the broker purchased 2,900 metric tons of sorghum. 2/22/201112COMMODITY BROKERBREWERSEagle lager is brewed by Northern Breweries, a subsidiary of Zambian Breweries, in NdolaThe company produces 4-6 brews in a week with each brew yielding 30,000 litres of beer from 3.8 metric tones of sorghum2/22/201113BREWERSThe beer is bottled in 300 and 375 ml glass bottles and packed in crates of 24 bottles  distributed to the main Zambian breweries depots around the countryEagle lager is advertized in print media, promotion and road shows2/22/201114DISTRIBUTORSResponsible for distributing eagle lager to retailers around the countryThe main distributors are R.S. Distributors, Nenima Trading , Anthion Distributors, Prav and Shavon2/22/201115RETAILERSResponsible for distributing the beer to the ultimate consumers through bars and bottle storesMost outlets sell at recommended prices of K2,500 and K3,000 for the 300mls and 375mls bottle respectively2/22/201116OPPORTUNITIES AND CHALLENGESprovided employment and business opportunities to the distributors and their employeesRetailers are now able to improve the variety of beer offering to their customersConsumers are offered a clear beer at a lower price than that of other clear beers2/22/201117OPPORTUNITIES AND CHALLENGESThe introduction of Eagle lager has benefited all the stakeholders involved in the supply chainprovided sorghum farmers with a ready market for their produceensuring reliable reasonably priced sorghum supplies to Zambian breweries2/22/201118OPPORTUNITIES AND CHALLENGES2/22/201119Eagle lager enjoys 15-17 percent clear beer market share and is reportedly growing at 5-10 percent per annumThe commodity broker, CHC commodities, encounters insufficient supply during slack periods of the yearCONCLUSION AND RECOMMENDATIONSZambian breweries should invest more in improving the image of eagle lagerZambian breweries should follow up on pricing and beer strength complaints expressed by consumers2/22/201120THANK YOU!2/22/201121

Sorghum Clear Beer Value Chain

UNL | Libraries

University of Nebraska - Lincoln 
DigitalCommons@University of Nebraska - Lincoln 
INTSORMIL Presentations International Sorghum and Millet Collaborative Research Support Program (INTSORMIL CRSP) 
2-22-2011 
Sorghum Clear Beer Value Chain 
Bernadette C. Chimai 
University of Zambia, chimaibernadette@yahoo.com 
Follow this and additional works at: https://digitalcommons.unl.edu/intsormilpresent 
 Part of the Agricultural Economics Commons, Agronomy and Crop Sciences Commons, and the Food 
Processing Commons 
Chimai, Bernadette C., "Sorghum Clear Beer Value Chain" (2011). INTSORMIL Presentations. 15. 
https://digitalcommons.unl.edu/intsormilpresent/15 
This Presentation is brought to you for free and open access by the International Sorghum and Millet Collaborative 
Research Support Program (INTSORMIL CRSP) at DigitalCommons@University of Nebraska - Lincoln. It has been 
accepted for inclusion in INTSORMIL Presentations by an authorized administrator of DigitalCommons@University of 
Nebraska - Lincoln. 
SORGHUM CLEAR BEER 
VALUE CHAIN
Bernadette C. Chimai
Department of Agricultural Economics
University of Zambia
Lusaka, Zambia
chimaibernadette@yahoo.com
2
/2
2
/2
0
1
1
1
INTRODUCTION
The markets and industrial utilization of 
agricultural commodities have undergone 
considerable change in the last few 
decades.
 In Zambia, sorghum was considered a 
traditional crop with limited industrial 
uses
2
/2
2
/2
0
1
1
2
INTRODUCTION CONT’D.
 Research and transformations in 
consumer tastes and preferences have led 
to the development of new uses for 
sorghum.
Potential markets for industrial 
utilization of sorghum have been 
identified as food processing, beer 
brewing, feed concentrates and energy 
production.
2
/2
2
/2
0
1
1
3
INTRODUCTION CONT’D
2
/2
2
/2
0
1
1
4
One of the success stories in industrial 
utilization of sorghum has been Eagle, a 
sorghum based clear beer produced by 
Zambian breweries
The study reported in this paper aims to 
examine the main linkages in Eagle lager 
value added supply chain
OBJECTIVES
The main objectives were to:
 Identify the key players in the supply 
chain
Examine the value addition activities 
performed by the chain players
2
/2
2
/2
0
1
1
5
INDUSTRIAL UTILIZATION OF SORGHUM
 Industrial utilization is still low in sub-
Saharan Africa (Rorhbach).
 Less than 3% of the sorghum produced in 
sub-Saharan Africa undergoes commercial 
processing. 
2
/2
2
/2
0
1
1
6
CONCEPTUAL FRAMEWORK
A value chain analysis provides useful 
information on the main activities and 
operations of a supply chain
A value chain has the following primary 
components; inbound logistics, operations, 
outbound logistics, marketing, and sales 
and services (Porter, 1980)
2
/2
2
/2
0
1
1
7
METHODS
The study involved a questionnaire based 
industrial survey of Lusaka-based Eagle 
lager value added supply chain players.
 Interviews were conducted with key 
informants at CHC commodities, Zambian 
Breweries, Nenima trading, R.S 
distributors, Dandiker Holdings and 
Jonathan Njobvu bar.
2
/2
2
/2
0
1
1
8
EAGLE LAGER SUPPLY CHAIN
Eagle lager was introduced on the 
Zambian market in 2005
Started out by contracting 2,500 small 
scale sorghum farmers in the 2004/2005 
agricultural season (Inspiris, 2006). 
 The key players in this value added 
supply chain are sorghum farmers, 
traders, brewers, distributors and 
retailers.
2
/2
2
/2
0
1
1
9
2
/2
2
/2
0
1
1
10
EAGLE LAGER SUPPLY CHAIN
Farmers
Small scale traders Commodity broker
Brewer
Distributors
Retailers
Source: Authors’ creation based on information from an industrial survey, April 2007
COMMODITY BROKER
Currently, Zambian Breweries (ZB) gets 
all of its sorghum supplies from a local 
commodity broker, CHC commodities
 It purchases sorghum from small scale 
farmers, small traders and large scale 
farmers
Prices were K960,000-K1,125,000 per 
metric ton
2
/2
2
/2
0
1
1
11
The sorghum collection point for CHC 
Commodities was based in Kabwe 
District, Central Province.
During the 2005/2006 marketing season, 
the broker purchased 2,900 metric tons of 
sorghum. 
2
/2
2
/2
0
1
1
12
COMMODITY BROKER
BREWERS
Eagle lager is brewed by Northern 
Breweries, a subsidiary of Zambian 
Breweries, in Ndola
The company produces 4-6 brews in a 
week with each brew yielding 30,000 
litres of beer from 3.8 metric tones of 
sorghum
2
/2
2
/2
0
1
1
13
BREWERS
The beer is bottled in 300 and 375 ml 
glass bottles and packed in crates of 24 
bottles 
 distributed to the main Zambian 
breweries depots around the country
Eagle lager is advertized in print media, 
promotion and road shows
2
/2
2
/2
0
1
1
14
DISTRIBUTORS
Responsible for distributing eagle lager to 
retailers around the country
The main distributors are R.S. 
Distributors, Nenima Trading , Anthion 
Distributors, Prav and Shavon
2
/2
2
/2
0
1
1
15
RETAILERS
Responsible for distributing the beer to 
the ultimate consumers through bars and 
bottle stores
Most outlets sell at recommended prices of 
K2,500 and K3,000 for the 300mls and 
375mls bottle respectively
2
/2
2
/2
0
1
1
16
OPPORTUNITIES AND CHALLENGES
provided employment and business 
opportunities to the distributors and their 
employees
Retailers are now able to improve the 
variety of beer offering to their customers
Consumers are offered a clear beer at a 
lower price than that of other clear beers
2
/2
2
/2
0
1
1
17
OPPORTUNITIES AND CHALLENGES
The introduction of Eagle lager has 
benefited all the stakeholders involved in 
the supply chain
provided sorghum farmers with a ready 
market for their produce
ensuring reliable reasonably priced 
sorghum supplies to Zambian breweries
2
/2
2
/2
0
1
1
18
OPPORTUNITIES AND CHALLENGES
2
/2
2
/2
0
1
1
19
Eagle lager enjoys 15-17 percent clear 
beer market share and is reportedly 
growing at 5-10 percent per annum
The commodity broker, CHC commodities, 
encounters insufficient supply during 
slack periods of the year
CONCLUSION AND RECOMMENDATIONS
Zambian breweries should invest more in 
improving the image of eagle lager
Zambian breweries should follow up on 
pricing and beer strength complaints 
expressed by consumers
2
/2
2
/2
0
1
1
20
THANK YOU!
2
/2
2
/2
0
1
1
21


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Sorghum Clear Beer Value Chain

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