Luna Export Slaughterhouse Plc is a diversified agribusiness headquartered in Addis Ababa, Ethiopia, with over two decades of experience spanning livestock production, processing, retail distribution, and exports. Its business vision is to promote nutrition, wellness, and food security while building a commercially resilient enterprise.

Under the NORAD-funded Growing Together Program, implemented by IDH in partnership with Rikolto, EAGC, and CIAT, Luna is strengthening its backward integration strategy by sourcing key crops directly from smallholder farmers. The initiative focuses on maize grain, maize silage, and onions, with onions also serving as a rotational crop to support regenerative agriculture and soil health.

To meet its growing demand for raw materials while managing risk and capital requirements, Luna is expanding a cluster-based outgrower model. This approach combines Luna’s nucleus farms with organised groups of smallholder farmers located within a 15 km radius. By 2028, Luna aims to work with approximately 3,000 smallholder farmers, sourcing the majority of its maize silage and onions directly from them.

Expanding inclusive sourcing through cluster farming is projected to double Luna’s sourcing profit between 2025 and 2028, driven by higher volumes and improved operational efficiency. Maize silage, in particular, plays a strategic role by ensuring a steady feed supply for Luna’s livestock operations and reducing animal mortality during drought periods. Animals finished on grain silage also attract price premiums in the market, strengthening Luna’s margins. Farmers are expected to achieve substantial income gains and improved resilience. This will be driven by significantly higher yields than those of non-affiliated farmers, resulting from better access to inputs, mechanisation, training, and market access.

By embedding smallholder farmers at the core of its sourcing strategy, Luna demonstrates how commercial growth and inclusive development can reinforce one another. Continued investment in farmer services, digital systems, post-harvest infrastructure, and cooperative capacity will be critical to scaling the model sustainably