Study on Establishment of

Bamboo
Processing Plants
in
Amhara Regional
State

A Thesis

By

Bereket Haile

Submitted to the school of Graduate Studies of Addis Ababa

University in partial fulfilment of the requirements for the Degree
of Master of Science in Mechanical Engineering
(Industrial Engineering)

Advisor
Dr.-Ing. Daniel Kitaw

Mechanical Engineering Department

Technology Faculty
Addis Ababa University
June 2008
 Study on Establishment of Bamboo Processing
Plants in Amhara Regional State

By
Bereket Haile

Approved by Board of Examiners

----------------------------------------- ---------------------------
Chairman, Department of Graduate Committee

Dr.-Ing Daniel Kitaw

----------------------------------------- ---------------------------
Advisor

----------------------------------------- ---------------------------
Internal Examiner

----------------------------------------- ---------------------------
External Examiner
Study on Establishment of Bamboo Processing Plants in Amhara Regional State

ABSTRACT

Bamboo is an ancient woody grass widely distributed in tropical, subtropical and mild
temperate zones. There are about 1 200 species of bamboo in some 90 genera, of which
two species namely highland and lowland bamboo are indigenous to Africa and widely
distributed in Ethiopia. Ethiopia has more than 1 million hectares of bamboo which is
67% of African total. But compared to other bamboo growing countries Ethiopia is not
getting equivalent economic advantage from the resource. Therefore, the aim of this
paper is to show the benefit from the resource by developing the development and
utilization model of bamboo and studying the establishment of processing plants for
some selected products in Amhara regional state. These two Ethiopian bamboo species
are found in Amhara region. But like any other regions the resource is not used as an input
to processing plants that produce industrial and construction products. Some bamboo
growing areas of the region are visited; data collected and the resource growing areas by
zones and weredas are mapped. Domestic wood demand and supply is analyzed which
shows huge gap between the demand and the available supply - demand by far exceeding
suply. There is also increasing demand for bamboo and bamboo products in world market.
General Model is developed to show the required integration between different parties to
facilitate the development and utilization of the resource in Amhara region from cultivation
to end market. In addition, cultivation, micro and small scale, and medium and large scale
business models are developed with their corresponding components. Three products –
bamboo flooring, bamboo mat and bamboo incense stick are selected for analysis for their
technical and commercial viability. Required facilities are determined, project
implementation plan is scheduled, and layout is developed for these three manufacturing
lines. Finally detailed economic evaluation is made and shows - with the initial investment
of Br. 41 million, the expected return will be Br. 94 million annually, with a payback period
of less than a year. Projecting this result to national level, the country can get more than Br.
10 billion every year from the existing resource coverage. This figure could well be much
higher if the cultivation and development efforts are made. The project is very attractive for
investment and will help to improve the development and utilization of the resource. In
addition the area of coverage and productivity of the resource should be improved, so that
the country will entertain the maximum benefit out of this new sector.

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Study on Establishment of Bamboo Processing Plants in Amhara Regional State

ACKNOWLEDGEMENT

First I would like to say thank you to my advisor Dr.-Ing Daniel Kitaw, for his continuous
follow up, advice and encouragement. We had good time and I benefited from your
experience, and your approach was so friendly and memorable.

This could have been much complicated if many people did not help me in providing data,
sharing their experience and some offices allowed me to use their library.

Generally I am happy to express my respect for the following, just to list some of them

1. Amhara Region Bureau of Trade and Industry workers

2. Amhara Region Bureau of Agriculture and Rural Development workers

3. Agriculture Research Institute library workers

4. Amhara Region Bureau of Finance and Economic Development, GIS work team

5. Adal Industrial Plc

6. Awi Zone Office of Agriculture and Rural Development

7. Awi Zone Office of Trade and Industry

Finally, I like to say it was great time to have with you people around me, my friends. I
learned a lot from you and I am happy for that. Thank you my beloved friends.

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 Study on Establishment of Bamboo Processing Plants in Amhara Regional State

CONTENT
ABSTRACT ………………………………………………………………………………………….…… I
ACKNOWLEDEMENT ………………………………………………………………………………… III
CONTENT.................................................................................................................................................... III
LIST OF FIGURES……………………………………………………………………………………… VI
LIST OF TABLES……………………………………………………………………………....……… VII
LIST OF ABBREVIATIONS…………………………………………………………….…..………... VIII
1. INTRODUCTION................................................................................................................................. 1
2. OBJECTIVE OF THE THESIS ............................................................................................................ 2
3. RESEARCH METHODOLOGY .......................................................................................................... 3
4. EXPECTED RESULTS FROM THE THESIS..................................................................................... 6
5. STATEMENT OF THE PROBLEM..................................................................................................... 7
6. BAMBOO PLANTATION ................................................................................................................... 9
6.1. THE GROWTH HABIT OF BAMBOO............................................................................................. 9
6.2. TYPES OF PLANTATIONS .............................................................................................................. 9
6.3. RAISING OF PLANTING MATERIALS........................................................................................ 10
6.4. FIELD PLANTING AND ESTABLISHMENT ............................................................................... 10
6.5. PLANTATION MAINTENANCE AND HARVESTING ............................................................... 10
6.6. POST-HARVEST TREATMENTS .................................................................................................. 11
7. LOGISTICS AND SUPPLY CHAIN MANAGEMENT.................................................................... 12
7.1. INTRODUCTION............................................................................................................................. 12
7.2. DEFINITIONS.................................................................................................................................. 12
7.3. THE SUPPLY CHAIN ..................................................................................................................... 15
7.4. ACTIVITIES OF LOGISTICS ......................................................................................................... 19
7.5. AIMS OF LOGISTICS ..................................................................................................................... 21
8. BUSINESS VIABILITY..................................................................................................................... 23
8.1. BUSINESS MODEL......................................................................................................................... 23
9. WORLD BAMBOO RESOURCES.................................................................................................... 25
9.1. BAMBOO AS A PLANT ................................................................................................................. 25
9.2. BAMBOO AS A RESOURCE ......................................................................................................... 26
9.3. EXTENT OF BAMBOO RESOURCES........................................................................................... 27
10. BAMBOO RESOURCES IN ETHIOPIA........................................................................................... 31
10.1. BAMBOO RESOURCE AND DISTRIIBUTION.......................................................................... 31

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11. BAMBOO IN AMHARA REGION ................................................................................................... 37

11.1. WHY AMHARA REGION?........................................................................................................... 37
11.2. BAMBOO RESOURCE IN AMHARA REGION.......................................................................... 38
11.2.1. HIGHLAND BAMBOO ......................................................................................................... 39
11.2.2. LOWLAND BAMBOO .......................................................................................................... 40
11.3. ACTIVITIES PERFORMED SO FAR ...................................................................................... 41
12. BAMBOO MARKET AND SUPPLY ................................................................................................ 43
12.1. BAMBOO PRODUCT.................................................................................................................... 43
12.2. BAMBOO MARKET .................................................................................................................. 49
12.2.1. DOMESTIC MARKET...................................................................................................... 49
12.2.2. FOREIGN MARKET......................................................................................................... 51
13. BAMBOO DEVELOPMENT MODEL FOR AMHARA REGIONAL STATE................................ 54
13.1. IMPORTANCE OF DEVELOPING THE MODELS .................................................................... 54
13.2. COMPONENTS OF THE MODELS.............................................................................................. 54
14. FEASIBILITY STUDY ON SOME REPRESENTATIVE PRODUCTS OF BAMBOO .................. 61
15. CONCLUSION AND RECOMMENDATIONS…………………………………. …………………. 97
15.1. CONCLUSIONS............................................................................................................................. 85
15.2. RECOMMENDATIONS ................................................................................................................ 87
REFERENCES ............................................................................................................................................. 89
ANNEX – A: REGIONAL MAP AND BAMBOO RESOURCE DISTRIBUTION ................................... 91
ANNEX - B: DETAIL SPECIFICATION OF REQUIRED MACHINERIES ………………………… 98
ANNEX - C: LAYOUT OF THE MANUFACTURING PROCESS PLANT ………………………… 108
ANNEX - D: PROJECT SCHEDULING…………………………………… ………………………… 109
ANNEX - E: BAMBOO PLANTATION GUIDELINES…………………….. ………………………… 111

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LIST OF FIGURES
Figure 6. 1 Parts of the bamboo plant ................................................................................. 9
Figure 7. 1 Spectrum of products ...................................................................................... 13
Figure 7. 2 Operations creating outputs ............................................................................ 13
Figure 7. 3 Cycle of supply and demand........................................................................... 14
Figure 7. 4 The role of logistics ........................................................................................ 14
Figure 7. 5 Outline of the supply chain for paper ............................................................. 15
Figure 7. 6 Activities in a supply chain............................................................................. 17
Figure 7. 7 Supply chain around a manufacturer .............................................................. 17
Figure 7. 8 Using intermediaries to simplify the supply chain ......................................... 19
Figure 9. 1 Countries participating in the FAO/INBAR bamboo thematic study............. 27
Figure 9. 2 Distribution of the bamboo resources by countries ........................................ 28
Figure 13. 1 General bamboo development and utilization model ................................... 57
Figure 13. 2 Bamboo plantation model............................................................................. 58
Figure 13. 3 Model for micro and small scale enterprises development........................... 59
Figure 13. 4 Model for medium and large scale enterprises development ....................... 60
Figure 14. 1 Manufacturing process for bamboo mat ....................................................... 62
Figure 14. 2 Manufacturing process for bamboo flooring ................................................ 63
Figure 14. 3 Manufacturing process for bamboo incense sticks ....................................... 64
Figure 14. 4 Organizational structure................................................................................ 69
Figure 14. 5 Cross –sectional dimension of Ethiopian highland bamboo......................... 79

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LIST OF TABLES
Table 3. 1 Areas visited and time spent in each areas........................................................ 4
Table 9. 1 Distribution of the bamboo resources by countries.......................................... 29
Table 10. 1 Major Highland Bamboo Areas in Ethiopia................................................... 33
Table 10. 2 Major Lowland Bamboo Areas in Ethiopia ................................................... 34
Table 10. 3 Growing stock of bamboo resources.............................................................. 35
Table 11. 1 Main highland bamboo growing areas in Amhara region.............................. 39
Table 11. 2 Main lowland bamboo growing areas in Amhara region............................... 40
Table 12. 1 Production and Demand for wood in Ethiopia............................................... 50
Table 12. 2 Local wood based industries and their capacities, August 2000.................... 50
Table 12. 3 Production of major manufactured wood articles, 2003/2004 – 2005/2006.. 50
Table 12. 4 Export of bamboo products in 2000 (million US$) ............................. 51
Table 12. 5 Main importers of bamboo products in 2000 (million US$) ............. 52
Table 12. 6 Bamboo export value in China 1998–2002 (1 000 US$) ................... 52
Table 14. 1 Machines required for mat manufacturing line ............................................. 65
Table 14. 2 Machines required for bamboo flooring manufacturing line ........................ 66
Table 14. 3 Machines require for incense sticks manufacturing line............................... 67
Table 14. 4 Project activities, duration and precedence relationships ............................. 68
Table 14. 5 Assumed capacity utilization ........................................................................ 75
Table 14. 6 Manpower requirement ................................................................................. 77
Table 14. 7 Cost of the project ......................................................................................... 81
Table 14. 8 Cost of production & profitability estimate for five years............................ 83

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LIST OF ABBREVIATIONS

AAU Addis Ababa University

ACSI Amhara Credit and Saving Institute
ANRS Amhara National Regional State
ARARI Amhara Regional Agricultural Research Institute
BDU Bahir Dar University
BoARD Bureau of Agriculture and Rural Development
BoFED Bureau of Finance and Economic Development
BoTI Bureau of Trade and Industry
CFC Common fund for Commodities
CSA Central Statistical Agency
DBE Development Bank of Ethiopia
EABP East African Bamboo Project
FAO Food and Agriculture Organization
FEMSEDA Federal Micro and Small Scale Enterprises Development Agency
FRA Global Forest Resources Assessment
GIS Geographic Information System
IMF International Monetary Fund
INBAR International Network for Bamboo and Rattan
MoTI Ministry of Trade and Industry
ORDA Organization for Rehabilitation and Development of Amhara Region
REMSEDA Regional Micro and Small Scale Enterprises Development Agency
TVETA Technical and Vocational Education Teaching Agency
UNIDO United Nations Industrial Development Organization

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1. INTRODUCTION

Ethiopia has the largest area of bamboo in Africa. Studies show that bamboo harvest in
Ethiopia constitutes 67 percent of the total production in Africa. The country has nearly 1
million hectares of bamboo reserves, yet the production and consumption of bamboo and
bamboo products is very limited, and value addition is minimal due to poor processing
technology. Had the harvesting, production and processing of bamboo is well handled
and managed, Ethiopia should have potential to generate an approximate of 9.5 billion
birr every year. This is an indication that if the sector is exploited in reasonable amount,
the potential will be very attractive to support the country’s agriculture led economy
together with Coffee, Horticulture, Leather and Hides, and others agricultural products.

Although bamboo is not an integral part of the economy of Ethiopia, it plays a very
important role socially, economically and ecologically in areas where it occurs naturally
and where it is planted. Bamboo culms in Awi Zone of the Amhara Region, for example,
are used as construction material for housing, fences, and beehives in the villages. More
importantly, a market for bamboo culms and bamboo products has developed in the past
years. Many of the landless men buy bamboo from farmers and engage in producing
mats, and furniture e.g. chairs, sofas, and baskets that they produce and sell along the
roadside. For these households bamboo is the major source of income. But in addition to
the traditional use of bamboo and bamboo products, attention should be towards the value
adding process which will result in creating additional jobs to citizens and increased
return from the sector. One way could be processing the bamboo to finished and semi
finished products by introducing bamboo processing plants. These products may be used
for industrial, household and construction purposes. Thus the aim of this paper will be
developing models that show the utilization and development of bamboo in Amhara
regional state and studying the feasibility of establishing bamboo processing plants in
Amhara regional state.

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2. OBJECTIVE OF THE THESIS

General Objective

The general objective of this paper is to study the opportunities and the expected
challenges in introducing bamboo processing plant(s) in Amhara regional state. The
paper will try to show the contribution of the sector in the national economy.

Specific objectives

The specific objectives of the research are:

• To help the region get another income generating opportunity of the relatively old
but not exploited sector of agriculture.
• To show how it is helpful in creating more job opportunities for the people of the
region.
• The study will be an example in showing what benefits can be obtained by adding
values to the likes of Coffee and other agricultural products.

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3. RESEARCH METHODOLOGY

1. Literature Survey:

Literatures are surveyed on relevant materials on bamboo plantation, harvesting,

field management and production, post harvest management, bamboo processing
and on viability study and business model developments and procedures. The
literatures available are from electronic media, journals, and books. Secondary
data are referred from previous related research studies, existing statistical data,
etc. The sources of these literatures are from libraries like the university library,
Agricultural Research Libraries (both the federal and regional), Ministry of trade
and Industry library, Regional Micro and Small Enterprises Development Agency
library (Bahir Dar) and Bureau of Agriculture and Rural Development library
(Bahir Dar). Literature survey is done in the first two months of the thesis work.

2. Data collection from primary and secondary sources:

Data has been collected from primary sources by visiting sample areas of the
region (The areas are selected for their potential of the resources and suitability of
getting the required data for site selection). The area visited include Bahir Dar,
Awi zone (Injibara, Tilili, Banja Shikudad woreda, Banja woreda, Kessa), and
Sekela woreda of West Gojjam zone. There were some central data, in Bahir Dar,
for all lowland and highland bamboo growing areas of the region and some rough
estimation about the coverage of the resource in the region. In the field survey of
Awi zone and west Gojjam zone, the plantations and some nurseries’ have been
observed and agricultural experts in each zone has been contacted. Some activities
performed in marketing and small processing of the resource is also observed.
Secondary data was collected from different sources like previous related research
works, some statistical data, world bamboo resource reports, and regional forestry
and bamboo resource studies. The areas visited and the duration in each is given
in the following table.

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Table 3. 1 Areas visited and time spent in each areas

Zones Area Visited Visited sites Duration

Bureau of agriculture and Rural
Bahir Dar Bahir Dar March 02 -
Development
Special Zone March 13, 2008
Bureau of trade & Industry
Bureau of Finance & Economic March 20 -
Development March 25, 2008
Regional Micro & Small Scale
Enterprises Development Agency
Amhara Region Agriculture
Research Institute
Agriculture and Rural
Awi Zone Injibara March 14 -
Development Department
March 17, 2008
Micro & Small Scale
Enterprises Development Agency
Department Injibara Preparatory
School Highland Bamboo Nursery
Different Wereda Offices
Banja Shikudad wereda agriculture
Tilili March 18, 2008
& rural Development Office
Plantations

Sekela Wereda Agriculture & rural

Sekela March 19, 2008
Development Office
Plantations
Plantation
Kessa March 20, 2008

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3. Data analysis and synthesis:

After primary and secondary data are collected, the data are analyzed and
synthesized in accordance with the objective of the paper. The analysis started
after some data are available and prgressed upto three weeks after the data
collection is completed.

4. Model Development:

Models have been developed based on the need and capability of the resources
like capital, manpower and raw materials availability. The models include micro,
small, medium and large scaled enterprises with their detailed supply chains.
Different market potentials and other stakeholders in each level have been
included in the models. In addition some model products (three products) are
analyzed for further feasibility study and their implementation, financial
requirements and benefits of the processing plant has been included. this task is
started together with the data analysis, and completed after three weeks the
analysis is concluded.

4. Discussion, Recommendations and Conclusions

After the models are developed, they are discussed in some detail and the project
analysis is made for representative products. Discussion of those models and the
project analysis is accompanied by some conclusions and recommendations for
implementations, future actions that need to be accomplished by different sectors
in regional and country level, and some conclusions are also made. In addition
some future research areas related to this paper are indicated - for further study.
This portion of the thesis took five weeks.

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4. EXPECTED RESULTS FROM THE THESIS

Positive results from this research will benefit both the region and the country.
Individuals will be getting job opportunities. Cultivation of the plant will help in
conserving natural environment by reducing erosion, land slip and the like, which are
very common in the country and especially in the region. Generally this result will
positively affect all the supply chain of bamboo and bamboo products; farmers, small
business owners and potential owners, investors, craftsmen, etc. Bamboo has additional
advantages such as providing a link between rural and urban communities, poverty
reduction, environmental protection and community development. And the huge potential
development may benefit the country’s effort to join the middle income countries, and the
effort to secure the Millennium Development Goals.

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5. STATEMENT OF THE PROBLEM

Amhara region is one of the environmentally suitable regions in Ethiopia for the
cultivation of bamboo. About 65 hectares (natural stand) and 2350 hectares (plantation)
of land in Injibara and of Debresina/Wofwasha is covered with highland bamboo and
425,000 hectares (natural stand) of land in Metema/Dansha/Humera (Tigray/Amhara) is
covered with low land bamboo. Both the highland and lowland bamboos are such a
versatile type of resources that they can be used in many ways. Two different systems are
in operation; bamboo from natural stands, and bamboo from plantations. Harvesting from
plantations is carried out all-year-round when required by resource-poor homestead
bamboo cultivators for whom it is a supplementary source of income. But it is poorly
managed and exploited. Harvesting from natural stands is unregulated and is resulting in
the severe depletion of the natural resources [12]. Harvesting practice uses primitive
tools, resulting in damage to the stands and increased wastage. Only a small number of
people are involved in cultivating and processing bamboo in Amhara region and
generally in Ethiopia. The use of bamboo is restricted to the household level [7].

Generally the problems observed in developing and utilizing the resource in Ethiopia, and
particularly in Amhara regional state include:
• The information available on distribution, extent and some characteristics of the
resource contradict with one another. The variation in figures is very high, when
comparing different sources.
• The marketing system in trading the resource is very traditional and some
resources deteriorate due to poor storage and transportation.
• So far bamboo forest is not separately registered and reported annually, in
country’s periodic national forest inventories.
• The coverage is decreasing from time to time due to less attention given to the
resource and lack of knowledge of its economic contribution. Resources are being
cleared and put to fire for the purpose of farming crops.
• Lack of knowledge in planting, harvesting, collecting, storing and transporting the
resource causes wastage of the resource in between.

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• Non scientific harvesting cycle causes problems like very young culms are
collected and some very old culms left on the farm for long period of time.
• Lack of training and awareness to the processing of bamboo make its application
limited to some local furniture manufacturers, with relatively poor quality
products.
• The wide industrial application of the resource is not well understood.

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6. BAMBOO PLANTATION
6.1. THE GROWTH HABIT OF BAMBOO

The bamboo plant (Figure 6.1) is made up of an underground axis and above ground axis. The
underground axis is comprised of rhizomes, roots, and buds. The above ground axis is comprised
of stems, branches, and foliage. Buds on the rhizomes may develop into shoots that emerge from
the ground. The new shoot elongates vertically into a main stem or culm until it attains its full
height. The growth of a culm is completed in one growing season. In large bamboo species, new
culms may grow to a height of more than 20 meters within 3 months [5].

Figure 6. 1 Parts of the bamboo plant

6.2. TYPES OF PLANTATIONS

The term ‘plantation’ can mean different things and it is useful to explain the various senses of
the term in relation to different bamboo plantation systems. This can at the same time help to
illustrate various applications for bamboo in relation to forestry and farming. It is useful to
distinguish, for instance, between homestead, commercial plantations, agroforestry, and forestry
programs.

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6.3. RAISING OF PLANTING MATERIALS

Growing bamboo starts with obtaining the materials for planting. Such materials may come in the
form of seeds, wildings, offsets or cuttings that may be gathered from forests. Tissue-cultured
plantlets provide other forms of planting materials. Such planting materials can be obtained and
raised in the nursery as described in Annex-E. The plantation method can be done with either of
the following techniques:
• Propagation by seed
• Use of Wildings
• Vegetative Propagation
• Using Culm Cuttings
• Using Multiple Node Culm Cuttings
• Using Offsets
• Using Tissue Culture Plantlets

6.4. FIELD PLANTING AND ESTABLISHMENT

The following are the general procedure that can be followed in field planting and
establishment.
• Selecting the Planting Site
• Plantation Layout
• Site and Ground Preparation
• Field Planting

6.5. PLANTATION MAINTENANCE AND HARVESTING

Proper maintenance and protection of the plantation is highly important. This involves replanting,
plant protection, weeding, general tending and sustainable harvesting of culms (bamboo stems).
See Annex-E [5].

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6.6. POST-HARVEST TREATMENTS

Post harvesting is equally important activity that need to be considered in plantation to

make sure that the product can reach healthy and with the desired quality to the next
phase. And this may include the following post harvest protection activities:

Non-Chemical Methods
• Clump curing
• Smoking
• White-washing
• Plastering
• Soaking in water
• Simple construction method

Chemical Preservation Methods

Chemical preservation methods of bamboo generally provide more effective protection

than non-chemical methods, but are not always economical. The following treatments are
used. See Annex-E.
• Fumigation
• Steeping or sap displacement
• The open-tank treatment
• Butt treatment

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7. LOGISTICS AND SUPPLY CHAIN MANAGEMENT

7.1. INTRODUCTION

All organizations move materials. Manufacturers build factories that collect raw materials
from suppliers and deliver finished goods to customers; retail shops have regular
deliveries from wholesalers; a television news service collects reports from around the
world and delivers them to viewers; most of us live in towns and cities and eat food
brought in from the country; when you order a book or DVD from a website, a courier
delivers it to your door. Every time you buy, rent, lease, hire or borrow anything at all,
someone has to make sure that all the parts are brought together and delivered to your
door. Logistics is the function that is responsible for this movement. It is responsible for
the transport and storage of materials on their journey between suppliers and customers.

7.2. DEFINITIONS

Supporting operations

Every organization delivers products to its customers. Traditionally we have described

these products as either goods or services. Then manufacturers like Sony and Guinness
make tangible goods, while AOL and Vodafone provide intangible services. In reality,
this view is rather misleading, and every product is really a complex package that
contains both goods and services. It is more accurate to describe products as lying on the
spectrum shown in Figure 7.1. At one end of this spectrum are products that are
predominantly goods, such as cars and domestic appliances; at the other end are products
that are predominantly services, such as insurance and education. In the middle are
products with a more even balance, such as restaurant meals and hospitals.
At the heart of an organization are the operations that create and deliver the products.
These operations take a variety of inputs and convert them into desired outputs, as shown
in Figure 7.2. The inputs include raw materials, components, people, equipment,
information, money and other resources. Operations include manufacturing, serving,
transporting, selling, training, and so on. The main outputs are goods and services. The
products created by an organization are passed to its customers, giving the cycle shown in

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Figure 7.3. This shows customers generating demands, with operations using resources to
make products that satisfy them. Logistics moves materials around this cycle [13].

Figure 7. 1 Spectrum of products

Figure 7. 2 Operations creating outputs

The operations are usually divided into a number of related parts, in the way that a
hospital has an emergency room, surgical ward, purchasing department, heart unit,
operating theatre and so on. So logistics also moves materials through the different parts
of an organization, collecting from internal suppliers and delivering to internal customers
(as shown in Figure 7.4). This leads to our basic definition.

LOGISTICS is the function responsible for the flow of materials from suppliers
into an organization, through operations within the organization, and then out to
customers.

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Figure 7. 3 Cycle of supply and demand

Figure 7. 4 The role of logistics

Moving materials into the organization from suppliers is called inbound or inward
logistics; moving materials out to customers is outbound or outward logistics; moving
materials within the organization is materials management.
Materials
In these definitions we have talked about the movement of materials – but what exactly
do we mean by materials?

MATERIALS are all the things that an organization moves to create its products.
These materials can be both tangible (such as raw materials) and intangible (such as
information) [13].

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7.3. THE SUPPLY CHAIN

So far, we have focused on the movement of materials through a single organization. In

reality, organizations do not work in isolation, but each one acts as a customer when it
buys materials from its own suppliers, and then it acts as a supplier when it delivers
materials to its own customers. A wholesaler, for example, acts as a customer when
buying goods from manufacturers, and then as a supplier when selling goods to retail
shops. A component maker buys raw materials from its suppliers, assembles these into
components, and passes the results to other manufacturers. Most products move through a
series of organizations as they travel between original suppliers and final customers. A
sheet of paper moves through several organizations before it reaches our desk (illustrated
in Figure 7.5).

Figure 7. 5 Outline of the supply chain for paper

People use different names for these chains of activities and organizations. When they
emphasize the operations, they refer to the process; when they emphasize marketing, they
call it a logistics channel; when they look at the value added, they call it a value chain,
and when they see how customer demands are satisfied, they call it a demand chain.

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A SUPPLY CHAIN consists of the series of activities and s that materials move
through on their journey from initial suppliers to final customers [13].

Every product has its own unique supply chain, and these can be both long and
complicated. The supply chain describes the total journey of materials as they move
‘from dirt to dirt’. Along this journey, materials may move through raw materials
suppliers, manufacturers, finishing operations, logistics centers, warehouses, third party
operators, transport companies, wholesalers, retailers, and a whole range of other
operations. Sometimes, the supply chain goes beyond the final customer to add recycling
and re-use of materials.
Structure of the supply chain
The simplest view of a supply chain has a single product moving through a series of s,
each of which somehow adds value to the product. Taking one organization’s point of
view, activities in front of it – moving materials inwards – are called upstream; those
after the moving materials outwards – are called downstream.
The upstream activities are divided into tiers of suppliers. A supplier that sends materials
directly to the operations is a first tier supplier; one that send materials to a first tier
supplier is a second tier supplier; one that sends materials to a second tier supplier is a
third tier supplier, and so on back to the original sources. Customers are also divided into
tiers. One that gets a product directly from the operations is a first tier customer; one that
gets a product from a first tier customer is a second tier customer; one that get a product
from a second tier customer is a third tier customer, and so on to final customers (see
Figure 7.6).

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Figure 7. 6 Activities in a supply chain

In practice, most organizations get materials from many different suppliers, and sell
products to many different customers. Then the supply chain converges as raw materials
move in through the tiers of suppliers, and diverges as products move out through tiers of
customers. A manufacturer might see sub-assembly providers as first tier suppliers,
component makers as second tier suppliers, materials suppliers as third tier suppliers, and
so on. It might see wholesalers as first tier customers, retailers as second tier customers,
and end users as third tier customers (as illustrated in Figure 7.7).

Figure 7. 7 Supply chain around a manufacturer

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Supply chains diverge to meet demand from different types of customer. Manufacturers
of car components, for example, sell some products to car assembly plants, some to
wholesalers for garages doing repairs, some to retail shops for individual customers, and
some directly to customers through websites. Then the supply chain divides into separate
strands with the same product following alternative routes.
Benefits of supply chains
The following list suggests some other benefits of well-designed supply chains (where we
use the terms ‘wholesaler’ and ‘retailer’ as a convenient label for intermediaries):
• Producers locate operations in the best locations, regardless of the
locations of their customers.
• By concentrating operations in large facilities, producers can get
economies of scale.
• Producers do not keep large stocks of finished goods, as these are held
further down the supply chain nearer to customers.
• Wholesalers place large orders, and producers pass on lower unit costs in
price discounts.
• Wholesalers keep stocks from many suppliers, giving retailers a choice of
goods.
• Wholesalers are near to retailers and have short lead times.
• Retailers carry less stock as wholesalers provide reliable deliveries.
• Retailers can have small operations, giving a responsive service near to
customers.
• Transport is simpler, with fewer, larger deliveries reducing costs.
• Organizations can develop expertise in specific types of operation.

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Figure 7. 8 Using intermediaries to simplify the supply chain

7.4. ACTIVITIES OF LOGISTICS

Separate activities
Logistics is responsible for the movement and storage of materials as they move through
the supply chain. But what activities does this include? If you follow some materials
moving through an, you can see that the following activities are normally included in
logistics.
Procurement or purchasing: The flow of materials through an organization is usually
initiated when procurement sends a purchase order to a supplier. This means that
procurement finds suitable suppliers, negotiates terms and conditions, organizes delivery,
arranges insurance and payment, and does everything needed to get materials into the
organization. In the past, this has been seen as a largely clerical job centered on order
processing. Now it is recognized as an important link with upstream activities, and is
being given more attention.
Inward transport or traffic actually moves materials from suppliers to the organization’s
receiving area. This has to choose the type of transport (road, rail, air, and so on), find the
best transport operator, design a route, make sure that all safety and legal requirements
are met, get deliveries on time and at reasonable cost, and so on.

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Receiving makes sure that materials delivered correspond to the order, acknowledges
receipt, unloads delivery vehicles, inspects materials for damage, and sorts them.
Warehousing or stores moves materials into storage, and takes care of them until they
are needed. Many materials need special care, such as frozen food, drugs, alcohol in
bond, chemicals that emit fumes, animals, and dangerous goods. As well as making sure
that materials can be available quickly when needed, warehousing also makes sure that
they have the right conditions, treatment and packaging to keep them in good condition.
We describe warehousing in more detail in Chapter 10.
Stock control sets the policies for inventory. It considers the materials to store, overall
investment, customer service, stock levels, order sizes, order timing and so on.
Order picking finds and removes materials from stores. Typically materials for a
customer order are located, identified, checked, removed from racks, consolidated into a
single load, wrapped and moved to a departure area for loading onto delivery vehicles.
Materials handling moves materials through the operations within an . It moves
materials from one operation to the next, and also moves materials picked from stores to
the point where they are needed. The aim of materials handling is to give efficient
movements, with short journeys, using appropriate equipment, with little damage, and
using special packaging and handling where needed.
Outward transport takes materials from the departure area and delivers them to
customers (with concerns that are similar to inward transport).
Physical distribution management is a general term for the activities that deliver finished
goods to customers, including outward transport. It is often aligned with marketing and
forms an important link with downstream activities.
Recycling, returns and waste disposal: Even when products have been delivered to
customers, the work of logistics may not be finished. There might, for example, be
problems with delivered materials – perhaps they were faulty, or too many were
delivered, or they were the wrong type – and they have to be collected and brought back.
Sometimes there are associated materials such as pallets, delivery boxes, cable reels and
containers (the standard 20 foot long metal boxes that are used to move goods) which are
returned to suppliers for reuse. Some materials are not reused, but are brought back for
recycling, such as metals, glass, paper, plastics and oils. Finally there are materials that
cannot be used again, but are brought back for safe disposal, such as dangerous

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chemicals. Activities that return materials back to an organization are called reverse
logistics or reverse distribution.
Location: Some of the logistics activities can be done in different locations. Stocks of
finished goods, for example, can be held at the end of production, moved to nearby
warehouses, put into stores nearer to customers, passed on to be managed by other s, or a
range of alternatives. Logistics has to find the best locations for these activities – or at
least play a significant role in the decisions. It also considers related questions about the
size and number of facilities. These are important decisions that affect the overall design
of the supply chain.
Communication: Alongside the physical flow of materials is the associated flow of
information.
This links all parts of the supply chain, passing information about products, customer
demand, materials to be moved, timing, stock levels, availability, problems, costs, service
levels, and so on. Coordinating the flow of information can be very difficult, and logistics
managers often describe themselves as processing information rather than moving goods.
Christopher supports this view by saying that, ‘Supply chain competitiveness is based
upon the value-added exchange of information’. The Council of Logistics Management
also highlights the combination of materials and information flow in their definition:
Logistics is the process of planning, implementing and controlling the efficient,
cost-effective flow and storage of raw materials, in-process inventory, finished
goods and related information from point of origin to point of consumption for the
purpose of conforming to customer requirements.
Depending on the circumstances, many other activities can be included in logistics.
Sometimes an organization might include sales forecasting, production scheduling,
customer service management, overseas liaison, third party operations, and so on. The
important point is not to draw arbitrary boundaries between functions, but to recognize
that they must all work together to get an efficient flow of materials.

7.5. AIMS OF LOGISTICS

Logistics is responsible for the flow of materials through a supply chain. This function is
also called supply chain management.

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With our broad view, logistics managers have two main aims. The first is to move
materials into, through, and out of their own organization as efficiently as possible. The
second aim is to contribute to an efficient flow through the whole supply chain.
Traditionally, managers concentrate on the first of these, focusing on those parts of the
supply chain that they directly control. Hopefully, if each organization looks after its own
logistics properly, materials will move efficiently through the whole chain, thus
achieving the second aim. To some extent this is true. It is not, however, inevitable and
organizations really need a more positive approach to co-operation. We will discuss this
in the next chapter.

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8. BUSINESS VIABILITY

8.1. BUSINESS MODEL

The term business model is used for a broad range of informal and formal descriptions
that are used by enterprises to represent various aspects of its business, including its
purpose, offerings, strategies, infrastructure, organizational structures, trading practices
and operational processes and policies.

8.2. FEASIBILITY STUDY

A Business feasibility study an be defined as a controlled process for identifying problems

and opportunities, determining objectives, describing situations, defining successful
outcomes and assessing the range of costs and benefits associated with several alternatives
for solving a proble. The business feasibility study is used to support the decision –making
process based on a cost benefit analysis of the actual business or project viability. The
feasibility study is conducted during the deliberation phase of a formal business plan. It is
an analytical tool that includes recommendations and limitations, which are utilized to
assist the decision-makers when determining if the business concept is viable [15 ].

8.2.1. THE IMPORTANCE OF A BUSINESS FEASIBILITY STUDY

It is estimated that only one in fifty business ideas are actually commercially viable.
Therefore a business feasibility study is an important step in saving the utilization of scarce
resources [15]. If a project is seen to be feasible from the results of the study, the next
logical step is to proceed with the full business plan. The research and information
uncovered in the feasibility study will support the business planning stage and reduce the
research time. Hence, the cost of the business plan will also be reduced. A thorough
viability analysis provides on abundance of information that is also necessary for the
business plan. For example, a good market analysis is necessary in order to determine the
business concept’s feasibility. This information provides the basis for the market section of
the business plan.

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Finally, a feasibility study should contain clear supporting evidence for its
recommendation. The strength of the recommendation can be weighed ageist the study
ability to demonstration the continuity that exists between the research analysis and the
research proposed business model. Recommendations will be reliant on a mix of numerical
data with qualitative, experience-based documentation. A business feasibility study is
heavily dependent on the market research and analysis. A feasibility study provides the
stake holders with varying degrees of evidence that a business concept will in fact be
viable.

8.2.2. BUSINESS FEASIBILITY STUDY AND DIMENSIONS OF BUSINESS

VIABILITY

The business feasibility study findings will be assessed by potential investors and
stakeholders regarding their credibility and depth of argument. The business feasibility
study places the findings of the dimensions of business viability model assessment into a
formal business report. It also aligns the findings with functional processes of an enterprise
which an audience can easily understand. The dimension of business viability model is
discussed in more detail in appendix H titled “dimension of business viability”. For the
purpose of understanding the structure of business visibility study the following represents
the framework of the dimensions of viability [15]:

• Market viability

• Technical viability

• Business model viability

• Management model viability

• Economic and financial model viability

• Exit strategy viability

Business and market analysis will contribute considerably to the business feasibility study.
Consideration should be given to using traditional business analysis techniques such as
SWOT, Porter’s five forces and PEST. Although they may not provide information which
is a perfect fit to the proposed business model, they will provide a strong starting point for
future analysis.

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9. WORLD BAMBOO RESOURCES

9.1. BAMBOO AS A PLANT

Bamboo belongs to the Gramineae family and has about 90 genera with over 1 200
species. Bamboo flowers rarely and in irregular cycles, which are not yet clearly
understood. Thus taxonomists do not always agree on the identification of bamboo
species and genera, but modern genetic analysis may shed new light on bamboo
taxonomy [1].

Bamboo is naturally distributed in the tropical and subtropical belt between

0 0
approximately 46 north and 47 south latitude, and is commonly found in Africa, Asia
and Central and South America. Some species may also grow successfully in mild
temperate zones in Europe and North America. Bamboo is an extremely diverse plant:,
which easily adapts to different climatic and soil conditions. Dwarf bamboo species grow
to only a few centimeters (cm), while medium-sized bamboo species may reach a few
meters (m) and giant bamboo species grow to about 30 m, with a diameter of up to 30
cm. Bamboo stems are generally hard and vigorous, and the plant can survive and recover
after severe calamities, catastrophes and damage. Young bamboo shoots were the first
sign of new plant life after the nuclear bombing of Hiroshima and Nagasaki [1].

Bamboo shoots and culms grow from the dense root rhizome system. There are two main
categories of rhizomes: monopodial and sympodial. Monopodial rhizomes grow
horizontally, often at a surprising rate, and thus their nickname of ’runners’. The rhizome
buds develop either upward, generating a culm, or horizontally, with a new tract of the
rhizomal net. Monopodial bamboos generate an open clump with culms distant .from
each other and can be invasive. They are usually found in temperate regions and include
the genera Phyllostachys and Pleioblastus. Sympodialrhizomes are short and thick, and
the culms above ground are close together in a compact clump, which expands evenly
around its circumference. Their natural habitat is tropical regions and they are not
invasive. The main genus is Bambusa.

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9.2. BAMBOO AS A RESOURCE

Bamboo has received increasing attention over the last two decades for its economic and
environmental values. In Africa, Asia and Latin America, it is closely associated with
indigenous culture and knowledge and is widely used for housing, forestry, agroforestry,
agricultural activities and utensils. In countries undergoing economic development,
traditional bamboo culture gradually disappears. However, industrial development of
bamboo is offering a new opportunity to younger generations to retain and continue
developing cultural traditions related to the cultivation, harvesting and use of bamboo.

The physical and environmental properties of bamboo make it an exceptional economic

resource for a wide range of uses and for poverty reduction. It grows quickly and can be
harvested annually without depletion and deterioration of the soil. Bamboo can grow on
marginal land, not suitable for agriculture or forestry, or as an agroforestry crop. It has a
relatively light weight, because the culms are hollow, and unlike wood can be easily
harvested and transported without specialized equipment or vehicles. It splits easily for
weaving and is thus easy to handle also for women. Bamboo is often cultivated outside
the forest on farms, where it is more easily managed. Processing normally does not
require highly skilled labor or special qualifications and can be started by rural poor
communities at a minimal cost. For the same reason, it could offer income-earning
opportunities to handicapped people.

Bamboo use and trade have been growing rapidly in recent years. Bamboo is becoming
popular as an excellent substitute for wood in producing pulp, paper, board and charcoal.
It is widely used in construction, either in its natural form or as a reconstituted material
(laminated boards and panels). In addition, bamboo shoots have become a popular
vegetable, with Asian cuisine spreading quickly around the globe.

A systematic study prepared in the framework of the Global forest resources Assessment
2005 conducted an assessment on the availability, extent, ownership, etc, on world
bamboo resources. A report format has provided to be submitted by participating

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countries. A total of 22 countries submitted national bamboo reports -five countries in
Africa, 13 in Asia and the Pacific and four in Latin America (Figure 9.1) [1]

Figure 9. 1 Countries participating in the FAO/INBAR bamboo thematic study

Generally speaking, current bamboo resource statistics are inconsistent, fragmented and
scattered. There are several reasons for this:

• Systematic inventories of global bamboo resources have never been done.

.Consistent methodology and techniques have not yet been developed.
• Bamboo is often intermixed with other forest species or grows outside forests,
making assessment more difficult.
• Most bamboo is harvested and traded locally without entering official statistical
records.
• The term bamboo forest’ often has different and incompatible definitions in
different countries.

9.3. EXTENT OF BAMBOO RESOURCES

INBAR and FAO conducted an assessment on the world bamboo resource. Country
reports provided estimates based on an analysis of the latest inventory data. In many

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cases, additional data were obtained from remote sensing analyses. The
requested included bamboo resource composition, areas of monopodial and sympodial
species and bamboo outside forest land. Although this study constitutes the most
complete survey to date of bamboo resources at the global level, the data reflect both data
availability and information gaps, the latter particularly in Africa and Latin America.

Figure 9.2 shows the share of world bamboo resources by continent. Asia remains the
richest continent, with about 65 percent of total world bamboo resources [1].

Figure 9. 2 Distribution of the bamboo resources by countries

The table shows that bamboo may total-more than 36 million hectares worldwide or an
average of 3.2 percent of the total forest area in the reporting countries if bamboo outside
forest land is included. Sixteen countries in Asia together reported a total of close to 24
million hectares of bamboo forest, constituting some 4.4 percent of the total forest area in
the countries surveyed. Although the information gathered from Africa is partial, a total
of over 2.7 million hectares of bamboo forest was reported by six countries (Ethiopia,
Kenya, Nigeria, Uganda, the United Republic of Tanzania and Zimbabwe). In Latin
America, at least ten countries have significant bamboo resources. Although precise
assessments are still to be done, a total of over 10 million hectares is considered a
realistic estimate for the region. Brazil, Chile, Colombia; Ecuador and Mexico have the
richest bamboo resources.

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Table 9. 1 Distribution of the bamboo resources by countries

Bamboo to forest
Area of Bamboo(1000 ha) Forest area(1000 ha) area (%)
Country 1990 2000 2005 2005
Bangladesh 90 86 83 871 9.5
a
Cambodia 32 34 29 10447 0.3
China 3856 4869 5444 197290 2.8
India 10711 10863 11361 67701 16.8
Indonesia 2151 2104 2081 88495 2.4
Japan 149 153 154 24868 0.6
Lao People’s Democratic
Rep. 1612 1612 1612 16142 10
Malaysia 422 592 677 20890 3.2
Myanmar 963 895 859 32222 2.7
Pakistan 9 14 20 1902 1.1
Papua New Guinea 23 38 45 29437 0.2
Philippines 127 156 172 7162 2.4
Rep. of Korea 8 6 6 6265 0.1
Sri Lanka 3 3 3 1933 0.2
a
Thailand 261 261 261 14520 1.8
a
Viet Nam 813 813 813 12931 6.3
Total Asia 21230 22499 23620 533076 4.4
Ethiopia 849 849 849 13000 6.5
Kenya 124 124 124 3522 3.5
Nigeria 1590 1590 1590 11089 14.3
a
Uganda 67 67 67 3627 1.8
United rep. of Tanzania 128 128 128 35257 0.4
Total Africa 2758 2758 2758 66495 4.1
Brazil 9300 9300 447698 2.1
Chile 900 900 16121 5.6
Ecuador 9 9 10853 0.1
a
Peru 190 190 68742 0.3
Total Latin America 10399 10399 543414 1.9
Grand Total 35656 36777 1142985 3.2
a
Data on the extent of forest were obtained from sources other than national reports.

In Asia, the major bamboo producing countries are India (almost 11.4 million hectares)
and China (over 5.4 million hectares), followed by Indonesia (2 million hectares) and the
Lao People’s Democratic Republic (1.6 million hectares). India accounts for roughly
half

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the total area of bamboo reported for Asia and, together with China, approximately 70
percent. Over the last 15 years, the bamboo area in Asia has increased by 10 percent,
primarily due to large-scale planting of bamboo in China and, to a lesser extent, in India.

The total area of bamboo reported by the five African countries makes up over 2.7
million hectares. This equals 4.1 percent of their total forest area. Ethiopia reported 6.5
percent and Nigeria over 14 percent of bamboo in the forest cover. Nigeria may have
overestimated the total area of bamboo due to a different methodological approach. It
reported forest land with bamboo, but did not apply the reclassification method to
calculate the pure bamboo area.

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10. BAMBOO RESOURCES IN ETHIOPIA

10.1. BAMBOO RESOURCE AND DISTRIIBUTION

Ethiopia is the second most populous country in Sub Saharan Africa facing threat of
rapidly increasing population with the growth rate of 2.6 %. Its population was reported
to be 64.3million in 2000 [18] and has been projected to reach 89.7 million in year 2015
[18].

Agriculture is back bone of the country’s economy. It consists about 48% of the GDP;
provides employment to 85% of the population; supplies raw material to 70% of the
country’s agro-based industries, and generate more than 90% of the country’s foreign
exchange earnings. The crop production sector accounts for 60% of the sector output.

Ethiopia has a total land area of about 111.2 million hectares of which the highland
consists of 44% of the country’s land mass and accounts for nearly 90% of the economic
activity. Close to 66% of the land mass is estimated to be potentially useable for
agricultural production (15% as cultivable land and 51% as grazing land) [18].

There are about 43 species of bamboo in Africa covering about 1.5 million hectares.
Forty of these species are mainly distributed in Madagascar while the remaining three
species are found in mainland Africa [12 ]. Ethiopia is one of the countries in Eastern
Africa that possess considerable bamboo resources. There are two indigenous species of
bamboo in Ethiopia i.e. the highland or African alpine bamboo (Arundinaria alpina K.
Schumach.) and a monotypic genus, lowland bamboo (Oxytenanthera abyssinica. These
species are found in some other African countries, but no where else outside the African
continent. Information on bamboo resources in Ethiopia is very limited [1]. Bamboo
forest is decreasing due to population growth, demand for land, migration and forest fires.
Access to bamboo is becoming more difficult as authorities and users recognize the need
to protect it from further decline. Management concepts and experience are lacking. In
the 1960s, the total area of bamboo was estimated at 1.5 million hectares, including 1

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million hectares of lowland bamboo. However, a study by private consultants in 1997
significantly reduced this estimate. The currently estimated total area of bamboo is 849
000 ha. The area of sympodial bamboo is 700 000 ha. About 481 000 ha were mapped
and partly surveyed for the 1997 study. The total area of mapped monopodial bamboo is
148 626 ha, including 129 626 ha of naturally regenerated and 19 000 ha of planted
bamboo. It is likely that the Ethiopian bamboo area has been shrinking since 1997.

Another study conducted by INBAR on the other hand grows naturally in the south,
south-west, central and north-west highlands shows nearly similar results in the area
coverage of bamboo in Ethiopia, and the data is well organized based on the regions and
different bamboo growing zones (Table 10.1).

Lowland bamboo in Ethiopia grows only in the western part along major river valleys
and in the lowlands bordering Sudan. It occurs between 1100-1700 meters above sea
level.

The highland bamboo (Arundinaria Alpina) of Ethiopia at altitudes ranging from 2200 to
4000 meters above sea level.

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Table 10. 1 Major Highland Bamboo Areas in Ethiopia[12]

No Bamboo Area Region Natural Plantation Total area

Stand(Ha) (Ha) (Ha)

1 Injibara Amhara 30 2350 2,380

2 Agaro Oromiya - 1500 1,500

3 Bale Mountains Oromiya 56,851 - 56,851

4 Shenen/Jibat Oromiya 1,774 2561 4,335

5 Gera Oromiya 36,000 1250 37,250

6 Bore/Hagereselam Oromiya - 2460 2,460

7 Chencha/Arbaminch South 2,460 3250 5,710

8 Indibir/Jembero South - 1850 1,850

9 Jima/Ameya Oromiya/South - 900 900

10 Mizan Teferi/Kulish South - 1850 1850

11 Debresina/Wofwasha Amhara 35 - 35

12 Wushwush/Bonga South - 1120 1120

13 Bonga/Ameya South 7,997 - 7997

14 Masha South 18,652 - 18652

15 Munesa Shashemene Oromia/South 4,183 - 4,183

TOTAL - 127,982 19,091 147,073

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Table 10. 2 Major Lowland Bamboo Areas in Ethiopia [12]

No Bamboo Area Region Natural Plantatio Total Area

n (Ha)
Stand(Ha) (Ha)

1 Hinde/North of Nekemte Amhara 8,670 - 8,670

2 Asossa Benshangul 77,947 - 77,947

Gumuz

3 Bambasi " 64,245 - 64,245

4 Begi " 21,509 - 21,509

5 Nejo Oromiya 27,612 - 27,612

6 Dibate Benshangul 14,200 - 14200

Gumuz

7 Guba " 7,757 - 7,757

8 Kemashi " 33,723 - 33,723

9 Pawe " 53,830 - 53,830

10 Gimbi Oromiya 29,125 - 29,125

11 Guten Oromiya 6,044 - 6,044

12 Metema/Dansha/Humera Tigray/Amh 425,000 - 425,000

ara

13 Didessa Valley Oromiya 135,000 - 135,000

14 Dangur Benshangul- 27,350 - 27,350

Gumuz

15 Bulen " 16,780 - 16,780

16 Galesa " 10,870 - 10,870

TOTAL 959,662 - 959,662

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As per FRA 2005, forest ownership structure included three classes [1]:

1. Private -land owned by individuals, families, private cooperatives, corporations,

industries, religious and educational institutions, pension or investment funds and
other private institutions;

2. Public -land owned by the state (national, state and regional governments) or
government-owned institutions or corporations or other public bodies including
cities, municipalities, villages and communes; and

3. Other -land that is not classified as one of the two previous classes.

Approximately 2 percent of bamboo area is classified as private forests, which normally

lie on lower altitudes up to 1 800 m. Naturally regenerated bamboo stands are located
above 2 000 m and belong to regional governments.

Growing stock is a major indicator of the extent of bamboo resources. Information on

growing stock is also needed to estimate bamboo biomass and carbon content. Growing
stock is normally measured in culms (for monopodial species), clumps (for sympodial
species) and weight (for both types of species). Coefficients exist for the different species
to convert number of culms and clumps to fresh and dry weight.
Table 10. 3 Growing stock of bamboo resources [1]

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In case of Ethiopia, growing stock was calculated based on the reported average growing
stock of the monopodial species (51 tones per hectare) and sympodial species (19 tones
per hectare). Total stock is over 20 million tones, while average growing stock is 24.6
tones per hectare. The report also specifies that the average annual increment of
unmanaged, naturally regenerated bamboo forests in Ethiopia is 8-10 tones per hectare of
oven-dry weight [1].

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11. BAMBOO IN AMHARA REGION

11.1. WHY AMHARA REGION?

The population of Amhara Region is projected to be 20 million in July 1, 2008, based on

the 1994 Census data [14]. Amhara region is selected for the study. There are some
reasons to select Amhara regional state in favor of others. But this can be considered as a
model and extended for other bamboo growing regions by making some modifications,
depending on the nature, infrastructure, and some other factors in the region considered.

The following are some of the reasons that favor the study to be in Amhara region:

1. Environmental Factors:

Most of the area in Amhara region is suitable for growing bamboo, some suitable for
lowland bamboo and some others are for highland bamboo. From the eleven zones in the
region, there are four highland bamboo plantations reported and there are two zones
reported some coverage of areas with lowland bamboo. But there the experts in the
region strongly believe that the zones will be much more than this number if proper
extension services for the plantation and management of bamboo are programmed.

2. Plantation Experience:
There is historical and very long plantation experience of bamboo in some zones of the
region. For instance, Awi and Sekela zones are well known to integrate the resource with
their day to day life. In these zones planting bamboo and using it as a source of income
has very long history. The farmers are well aware for the local value of the resource.
Highland bamboo in these zones is used for almost every equipment used in homes,
including agricultural equipments, furniture, fencing, day to day applications and as
construction materials. Therefore there is high experience with the farmers, like
propagation, harvesting, collection, and marketing the resource.

3. Environmental Protection:
Ethiopian highlands are highly facing a problem of land erosion, land slip and other
environmental degradation. Amhara is one of those mountainous regions in Ethiopia.

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Bamboo is excellent in protecting the above environmental problems. Amhara region
contributes 50% of the total erosion level in the country [ ]. Planting bamboo, then, will
help to recover the environment in addition to the expected economic and cultural
advantage.
4. Infrastructures:
The available resources (especially the highland ones) are at very good location and are
near to potential market such as Bahir Dar and Addis Ababa. Road access to almost all
resource bases is good (for instance in Awi zone most of the growing areas are not that
far from the main road connecting Bahir Dar and Addis Ababa, which is good quality
asphalted road). Some facilities such as water, electricity and telecommunication are
there in most of the bamboo growing areas in the region.

11.2. BAMBOO RESOURCE IN AMHARA REGION

The quality of data on the availability and extent of bamboo in Ethiopia is relatively poor;
this is also observed in Amhara regional state. The data are very inaccurate and
inconsistent. Some studies estimate the resource to cover very large area and some others
the estimated amount is exaggerated and the previous coverage does not exist now. The
se ones estimate the coverage is very low. But all researchers, data and regional experts
all agree on the huge potential of the region for cultivation of both lowland and highland
bamboo in the region.
There are two types of bamboo species in the region: highland bamboo (in Amharic,
Kerkeha) and the lowland bamboo (in Amharic, Shimel). Different environment and
ecological conditions support different zones to have the access for growing these two
different bamboo species. As their names indicate lowland bamboo cam grow in low land
areas of the region with an altitude of less than 1800 meters above sea level, and the
highland ones grow in the highland altitude (more than 1800 meters above sea level) of
the regions.

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11.2.1. HIGHLAND BAMBOO

In recent survey by regional bureau of agricultural and rural development, it is found that
five of the eleven zones in Amhara region reported the presence of highland bamboo
resource.
In Awi zone, the resource is better integrated with the day to day life of many households
and is the only source of income for many farmers and other urban dwellers. In this zone
it is well recognized by farmers and it is common to see small plantations in most of the
houses. In addition, some local furniture and other agricultural equipments are mostly
made of highland bamboo. Some farmers also have experienced the nutritious value of
bamboo as a food but mostly for its medical purposes.
The following table summarizes the zones and Woredas in the zones that grow the
resource in the Amhara Region according to the report from Amhara Region Bureau of
agriculture and rural Development [8].
Table 11. 1 Main highland bamboo growing areas in Amhara region

Zones Woredas
Awi - Guagusa Shikudad
- Injibara town Adm.
- Fagita Lekoma
- Ankesha
West Gojjam - Sekela
- Dega Damot
- Quarit
East Gojjam - Sinan
- Bibugni
South Gondor - Farta
- Estie
North Shoa - Tarma Ber (Debre Sina)

All these areas growing the resource are mapped and put as ANNEX A. The original map
is obtained from GIS team of ANRS BoFED.

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11.2.2. LOWLAND BAMBOO

The second type of indigenous bamboo is lowland bamboo. It grows in three zones of the
region. There is a huge estimated potential of lowland bamboo. But there is a lack of
awareness in its economic value and is being cleared and put in fire for farming. The
current level of lowland bamboo resource is expected to be much less than the reported
amount, due to the above reasons and the action of resettlement of farmers from less
productive areas to these areas as pointed out by the experts from the regional bureau of
Agriculture and Rural Development.
In lowland bamboo growing areas the resource is used for construction (fencing,
housing), furniture (chairs and tables), and mostly is used as walking sticks in many parts
of the country. Low land bamboo is mostly recognized for its industrial use as raw
material for pulp and paper [4, 8, 9, 10].
The following table summarizes the zones and woredas that report to the availability of
low land bamboo.
Table 11. 2 Main lowland bamboo growing areas in Amhara region
Zones Woredas
Awi - Jawi
- Guagusa
- Ankesha
North Gondor - Quara
- Metema
- West and Tach Armachiho
- Adiarkay

All these areas growing the resource are mapped and put as ANNEX - A.

Provided that more effort is made to support the plantation and management of bamboo
through better extension service programmes, it is believed by regional experts in the
region, that the coverage of the resource would be expanded to other zones of the region
[8].

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11.3. ACTIVITIES PERFORMED SO FAR

1. East African Bamboo Project:

Recently, East African Bamboo Project (EABP) is working on development of bamboo
in East Africa (Ethiopia and Kenya). This project aims at developing the plantation and
utilization of bamboo resource in these two east African countries. The project works in
cooperation with UNIDO and many stake holders; Ministry of Trade and Industry
(Ethiopia and Kenya), Ministry of Agriculture (Ethiopia), and Ministry of Environment
and Natural Resources (Kenya).

2. Introduction of New Species to Ethiopia:

Ten new species of bamboo has been brought by East African Bamboo Project from Asia
and are being introduced to Ethiopian ecology [4]. This is with the aim of diversifying the
existing two indigenous species and to increase the coverage of bamboo resource in some
areas that are not ecologically suitable for these two indigenous species. There are three
nurseries established in Ethiopia. One of these is found in Injibara (at a distance of about
8 km from the town, near Lake Zengena). In this nursery there are five new species
imported from abroad and two indigenous species growing from seed, which is collected
from Southern region of Ethiopia. The nursery is under the EABP, and the fund require is
obtained from CFC (Common Fund for Commodities), with a technical support of United
Nations Industrial Development Organization (UNIDO), and under the supervision of
International Network for Bamboo and Rattan (INBAR). The condition of the nursery in
Injibara is not that well managed. There is no proper follow up in the area.

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3. Adal Industrial PLC:

Adal Industrial PLC is established in September 2006, at a distance of 26km to eastern
part of Addis Ababa (road from Addis to Debrezeit). With 80% female employees the
industry creates employment opportunity for 120 employees. It is organized to process
bamboo. There are different products that are made from bamboo in the industry. These
products include:
• Bamboo Flooring
• Bamboo Blinding/Curtain/
• Incense Sticks
• Tooth Picks

4. Testing two Ethiopian indigenous bamboo species:

The mechanical and physical properties of the two Ethiopian indigenous bamboo species
were sent to China, by Dr. Seyoum Kelemework, and the result presented in Beijing [4],
China on January 16, 2008. The aim was to identify whether the industrial applications
are possible and to identify the types of products that can be made from these local
bamboo species.
The result discussed shows that the Ethiopian indigenous bamboo species are good in
industrial applications. The industrial products include, laminated bamboo lumber,
bamboo ply board, bamboo floor, bamboo mat, incense sticks, oriented strand boards,
and bamboo medium density fiber board (MDF) [4].

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12. BAMBOO MARKET AND SUPPLY

12.1. BAMBOO PRODUCT

Forest resources are experiencing increasing pressure due to the growing world
population and improving living standards [1]. Bamboo is the most important non-wood
forest product and in India is known as the ’poor man’s timber’. In China, it is the
valuable raw material for the booming bamboo industry.

During the last 15-20 years, bamboo has developed as an exceptionally valuable and
often superior substitute for wood. Bamboo-based panels and boards are hard and durable
and may successfully substitute for hardwood products. Bamboo may replace wood in
many industrial applications and thereby contribute to the saving and restoration of the
world’s forests.

Bamboo is a major construction material in many countries, particularly in rural areas. It

can be used for almost all parts of houses, including posts, roofs, walls, floors, beams,
trusses and fences. People also use bamboo to produce mats, baskets, tools, handles, hats,
traditional toys, musical instruments and furniture. In the food sector, bamboo shoots are
becoming more popular. Bamboo has a tremendous potential for economic and
environmental development and international trade.

Bamboo raw materials

Bamboo is a non-durable resource. Its use in exposed conditions requires prior treatment,
while its use can be further enhanced through the application of modem engineering
techniques. Bamboo can be processed into modem products (engineered bamboo) that
may successfully compete with wood products in price and performance. Use of bamboo
in composite panels and boards overcomes differences in quality related to the culms and
allows the production of homogeneous products. Engineered bamboo may well replace
wood, steel and concrete in many uses.

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Bamboo charcoal

Bamboo charcoal is traditionally used as a substitute for wood charcoal or mineral coal. It
can serve as a fuel, absorbent and conductor. The calorific value of bamboo charcoal is
almost half that of oil of the same weight. Activated bamboo charcoal can be used for
cleaning the environment, absorbing excess moisture and producing medicines. The
absorption capacity of bamboo charcoal is six times that of wood charcoal of the same
weight. China is a leader in its production. At present, Japan, the Republic of Korea and
Taiwan Province of China are the main consumers, but its importation is rapidly
expanding in Europe and North America. There are three main reasons contributing to the
success of bamboo charcoal in international trade:

1. Bamboo grows faster and has a shorter rotation compared with tree species;

2.The calorific value and absorption properties of bamboo- charcoal are similar to or
better than those of wood charcoal; and

3. It is cheaper and easier to produce.

Bamboo housing

There are three main types of bamboo housing:

1. Traditional houses, which use bamboo culms as a primary building material;

2. Traditional bahareque bamboo houses, in which a bamboo frame is plastered with

cement or clay; and

3. Modem prefabricated houses made of bamboo .laminated boards, veneers: and

panels.

Experts estimate that over one billion people live in traditional bamboo houses. These
buildings are usually cheaper than wooden houses, light, strong and earthquake resistant,
unlike brick or cement constructions. New types of prefabricated houses made of
engineered bamboo have certain advantages. They can be packed flat and transported

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long distances at a reasonable cost. They are better designed and environmentally
friendly. Bamboo materials are widely available and can be cultivated at a low cost. In
addition, bamboo is being employed in construction as a substitute to reinforcing iron [3].

Bamboo pulp, paper and cloth

Several bamboo-producing countries, such as China and India, use bamboo in pulp; paper
and more recently cloth. Bamboo paper has practically the same quality as paper made
from wood. Its brightness and optical properties remain stable, while those of paper made
from wood may deteriorate over time. The morphological characteristics of bamboo
fibers yield paper with a high tear index, similar to that of hardwood paper. The tensile
stiffness is somewhat 13wer compared with softwood paper. The strain strength is
between that of hardwood and softwood papers. The quality of bamboo paper may be
improved by refining the pulp [1, 2].

Bamboo panels

Bamboo fiber is longer than wood fiber, which gives bamboo some technological
advantages. The panels are widely used in modem construction as structural elements or
as forms for concrete moldings. They are also used for flooring, roofing, partitions, doors
and window frames. Bamboo panels have some advantages over wooden boards due to
their rigidity and durability. Various types of bamboo veneers, panels and boards can be
broadly classified as follows: veneers, strip boards, mat boards, fiber boards, particle
boards; medium density boards, combinations of these, and combinations of these with
wood and other ligno-cellulose materials and inorganic substances.

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Bamboo flooring

Bamboo flooring is a quality product that can be used widely and has a large, global
consumer market. It has certain advantages lover wooden floors due to its smoothness,
brightness, stability, high resistance, insulation qualities and flexibility. Bamboo flooring
has a soft natural luster and maintains the natural gloss and elegance of bamboo fiber.
This flooring is attractive to the demanding markets in Europe, Japan and North America.
The estimated annual production of bamboo flooring in China was 17.5 million m2
in2004. Exports account for some 65 percent of total production.

Horizontal Natural
Carbonized

Horizontal Carbonized Natural

Vertical Natural Tiger

Vertical Carbonized Outdoor decking

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Bamboo weaving products and crafts

Bamboo crafts and woven mats are traditional products in China, India; Malaysia, the
Philippines and Thailand. The technique has been known for several thousand years.
These diverse products have become an indispensable Fart of daily life, literature and art.
There are nearly 20 categories of woven bamboo products in Asia, including fruit
baskets, trays, bottles, jars, boxes, cases, bowls, fans, screens, curtains, cushions,
lampshades and lanterns.

Bamboo fuel

Through pyrolysis, bamboo can be converted into three valuable products: bamboo
charcoal, oil and gas. Changing the pyrolysis paran1eters can change the product shares
depending on the purpose and market conditions. Bamboo extracts contain valuable
elements and can be used in pharmaceuticals, creams and beverages. Bamboo gas can be
used as a substitute for petroleum. Bamboo charcoal is an excellent fuel for cooking and
barbequing. Activated charcoal is used as a deodorant, purifier, disinfectant, medicine,
agricultural chemical and absorbent of pollution and excessive moisture [1, 2].

Bamboo shoots

About 200 species of bamboo can provide edible and palatable bamboo shoots. Fresh
bamboo shoots are delicious and healthy, with high fiber content. Bamboo vegetables can
be found in Chinese grocery stores and restaurants worldwide. After cooking the shoots
are still crisp, because cooking does not destroy their texture. Cooked bamboo shoots can
be stored in containers and shipped worldwide.

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Bamboo Furniture

Traditional bamboo furniture uses natural round or split bamboo. Anew type of ‘pack-
flat’ 'knock- down' furniture uses glue-laminated bamboo panels. Unlike the traditional
design, this furniture may be shipped in compact flat packs, to be assembled on the spot.
The new design overcomes many of the problems of traditional bamboo furniture, such as
high labor and transportation costs, low productivity, instability, varying quality and
susceptibility to insects and fungi. At the same time, it retains the distinct physical,
mechanical, chemical, environmental and aesthetic features of bamboo.

Export of laminated bamboo furniture is growing rapidly. However, trade statistics

currently do not capture the value, owing ~o the absence of a special code for bamboo
furniture. It is usually classified as wooden furniture.

Bamboo and culture

Bamboo is an important resource, which was discovered, adopted and developed by
humans in ancient times. The first scripts were written in China on strips of bamboo more
than 6 000 years ago, during the Neolithic period. Bamboo pens, brushes and musical
instruments were invented 3 000 years ago. The first paper was produced from bamboo in
China in the ninth century. Bamboo culture is an essential part of human history and
civilization, especially in Asia.

Bamboo and the environment

Bamboo protects steep slopes, soils and water ways, prevents soil erosion, provides
carbon sequestration and brings many other ecosystem benefits.

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12.2. BAMBOO MARKET

12.2.1. DOMESTIC MARKET

Wood is one of the earth’s most valuable resources and it conforms to the
most varied requirements. It is easily worked with tools and machines and it
has a very strength to weight ratio. Despite its strength it is so elastic that
steam can be used to make it into complex shapes. Wood is resistant to mild
chemicals and it does not corrode [16]. Due to the growing world population
the consumption wood and wood products is increasing. Therefore there is
scarce of the resource in the market, and the world is finding some fast
growing plants like the bamboo grass. Then, the demand for bamboo and
bamboo products is increasing.
Bamboo can substitute ‘almost all’ wood and wood products. That means wood
production which take long period and very high cost can be replaced by using fast
growing grass – bamboo.
Therefore some data are available for demand of wood and wood products in Ethiopia,
which are helpful in defining the demand of bamboo and its derivatives.

In Ethiopia, information regarding utilization of forest and forest products are scarce and
are ill-managed. Even though figures are not precise, it is estimated that about 24 million
3
m of wood is produced annually, of which 10% is used for industrial and building
purposes and the rest for the fuel wood and charcoal. The estimated demand for fuel
3
wood consumption varies from 49 to 64 million m [11]. The estimated demand of
3
industrial wood in the whole country for year 2000is 400,000m per annum and is
3
projected to be 1.6 million m per year for year 2014. And the annual demand for
3
construction wood is estimated to be 2.1 million m per year by year 2000 and is
3
anticipated to be 4.2 million m per year by 2014. Fuel demand estimation is made based
3
on the consumption per capita and is found to be 1m /year for rural households and 0.94
3
m /year for urban dwellers.

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Table 12. 1 Production and Demand for wood in Ethiopia

Item Year 2000 Year 2014

3 3
Annual Production 24 million m 24million m
3 3
Annual Demand for Fuel wood 49-64 million m 85 million m
3 3
Industrial Wood Demand 400,000 m 1.6 million m
3 3
Construction Wood 2.4 million m 4.2 million m
3 3
Total Wood Demand 51.8-66.8 million m 89 million m

Table 12. 2 Local wood based industries and their capacities, August 2000

S.No. Industry Amount (in numbers) Capacity/annum

1 Stationary Saw Mills > 38 ---
3
2 Ply Wood 2 2900m
3
3 Particle Board 2 5600 m
3
4 Fiber Board 1 4000 m
3
5 Mobile Saw Mills 6 45000 m
6 Pulp and Paper Mills 2 9500 metric tones

Table 12. 3 Production of major manufactured wood articles, 2003/2004 – 2005/2006

Product’s Name Unit 2003/2004 2004/2005 2005/2006

3
Timber m 7 219 11 996 9 311
3
Plywood m - 8 722 357
3
Particle Board m 7 950 1 300 2 079
Paper Tons 8 411 6 167 5 485
Boxing Paper Tons 4 274 4 453 5 950

Major sources of forest products are:

1. Natural forests
2. Plantations and

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3. Trees outside forests such as trees around homestead, trees along the road side,
trees on farm and import of forest products.
There is increasing per capita demand of wood and wood products in the global and local
markets, due to the increasing quality of life globally. In addition there is high growth
rate of Ethiopian population which is expected to have 89.7 million in 2015. Therefore,
there will be very huge demand for wood and wood products, in which the pressure will
be expected to be very high on the existing decreasing natural stand forests. Bamboo can
be used to share this pressure since it is fast growing and can be a substitute to almost all
wood products.

12.2.2. FOREIGN MARKET

According to INBAR’s trade database, the annual export of bamboo in 2000

was valued at about US$2.5 billion (Table 12.3). China, Indonesia and Viet
Nam were the major bamboo producers and exporters in Asia. The total value
of exports of raw bamboo is about US$89 million. China exported some
US$25 million worth of raw bamboo, roughly a third of the world total. It
was followed by Indonesia (US$10.6 million, 12 percent) and Viet Nam
(US$7.7 million, 8.6 percent). Singapore and Hong Kong were important
bamboo and rattan processing centers and exporters. There was a US$18.6
million trade of bamboo raw materials in Singapore, which accounted for
over 20.9 percent of world trade. Hong Kong’s annual trade value was
US$4.69 million, which accounted for 5.3 percent of the world total.

Table 12. 4 Export of bamboo products in 2000 (million US$)

Africa Asia Europe North and Oceania South Total

Central America America
Bamboo 29 1554 739 120 8 5 2455

products
Market 1.2 63.3 30.0 4.9 0.4 0.2 100
share

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The main importers together make up some 80 percent of the world bamboo
import trade (Table 12.5). The European Union, Hong Kong, Japan and the
United States were the major markets for bamboo products, collectively
accounting for 71 percent of the total market share.
Table 12. 5 Main importers of bamboo products in 2000 (million US$)

US U Netherlan Germa Franc Japa Hon Other Tota

A K ds ny e n g s l
Kon
g
Bambo 899 12 106 169 169 349 163 475 2
o 5 455
import
Marke 36. 5 4.3 6.9 6.9 14.2 6.6 19.3 100.
t share 6 0
%

According to Chinese customs statistics, the total trade value of nine bamboo
commodities (identified by country-specific, eight-digit codes) was over
US$517 million in 2002 (Table 12.6). This is 9.4 percent more than the
average for the previous four years, 1998–2001.
Table 12. 6 Bamboo export value in China 1998–2002 (1 000 US$)

Product Average
Code Products 1998 - 2001 2002
07099010 Bamboo shoots, fresh or chilled 4874 4957
07119031 Bamboo shoots, in brine 6376 7346
07129010 Bamboo shoots, dried 10469 11359
14011000 Bamboo, used primarily for plaiting 26486 25665
20059030 Boiled bamboo shoots in airtight containers 123406 116989
46012090 Mats, matting and screens made of bamboo 20204 41424
Basketwork, wickerwork and other articles of
46021030 bamboo 103916 138199
Seats of cane, osier, bamboo or similar
94015000 materials 19999 21157
Other furniture of cane, osier, bamboo or
94038010 similar materials 34007 33627
Total 473149 517719

Source: Customs General Administration of China, 2003.

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The awareness to the economic value of bamboo is increasing in the global market. It is
substituting many wood species products and some countries like China and India are
making the resource sustainable source of national income. The trading of bamboo is
increasing from year after year.

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13. BAMBOO DEVELOPMENT MODEL FOR

AMHARA REGIONAL STATE

13.1. IMPORTANCE OF DEVELOPING THE MODELS

The development and utilization of bamboo in Ethiopia is very poor. When compared
with other bamboo growing countries, Ethiopia is not benefiting from the resource; rather
it is being damaged. The importance of developing the model is to show the integrated
effort in developing and utilizing the bamboo resource in Amhara regional state and
make the resource play its role in the development of the nation. The model will try to
show how the integration will have an impact on the economy of the country by creating
high number of employment opportunities, import substitutions and export opportunities.
For the country to have sustainable development there should be some new and
competent sources of economic development areas that can insure job opportunities to the
increasing population of the nation, keep ecosystem and species in the country, and that
can solve the urban challenges. Bamboo is well proved to play its part in creating job to
many citizens, earning huge amount of income from export and local trading, protecting
the ecosystem and helping many small and large processing industries to emerge.
The model tries to define all the stakeholders that can contribute their part in every phase
of development and utilization of the resource in Amhara National Regional State. In
addition the point where each stakeholder plays its part is also shown in the model.

13.2. COMPONENTS OF THE MODELS

The business development model is organized into two general parts. The first one is the
actual task and businesses that should be done and the second ones are the parts that play
their role in enabling those businesses. This includes the following basic components.

1. Cultivation (Plantation):
In the development model plantation is the first one is plantation of the resource in some
selected areas in the region. In cultivation of the resource there will be some parties that
need to work together.

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2. Micro and Small Scale Enterprises:

Bamboo can generate many job and business opportunities that can be run with small
amount of financial requirement. Handicrafts can be organized with some hand tools and
equipments with in the range of 20,000 Birr. Some small scale businesses may be also
created with some additional number of employees and start up capital.

3. Medium and Large Scale Enterprises:

Some processing industries of bamboo will give considerable amount of income and
import substitution, in addition to exports, by producing industrial products. Ethiopian
local species of bamboo are tested for their suitability of some industrial products, like,
bamboo ply board, bamboo particle board. In addition the lowland bamboo is good for
production of pulp and paper.

4. Licensing:
To enable the business process permission and licensing businesses is very important.
There are some legal institutions in the region that need to play their part. Depending on
the phase in the model the involving parties will be different.

5. Nurseries and Tissue Culture Centers:

When we think of plantation of bamboo in commercial level, it is required to think of
nurseries and tissue culture developing centers to be integrated with the cultivation.

6. Sources of fund:
There are local and international organizations that are working in the region. The
agricultural development is being supported by these organizations. Some organizations
like CFC (Common Fund for Commodities) and UNIDO are already working on the
development of bamboo resource in Ethiopia.

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7. Technical Support:
There are also some organizations that can give technical support to the development and
utilization of bamboo in Ethiopia. For instance, FAO (Forest and Agricultural
Organization), put the development of bamboo as a strategy of insuring sustainable
development in developing countries. INBAR and EABP are also providing technical
support in plantation and utilization of the resource in some African countries, including
Ethiopia.

8. Market
There are different market opportunities in each different level of the business model.
There is expected high demand gap in the local market and the importance of bamboo in
the world market is increasing, due to the increasing pressure of wood products due to the
increasing population and improved quality of life.

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1. General Model

Figure 13. 1 General bamboo development and utilization model

The above figure shows the general model of developing and utilization of bamboo
resource in Amhara regional state. Different parties are shown different roles in different
stages of the development model. Integration is the key to get the maximum benefit from
the development of the resource.

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2. Cultivation

Figure 13. 2 Bamboo plantation model

Figure 13.2 shows different plantations that may be included and the parties that are
required to implement the model effectively. Some governmental and non governmental
organizations working in the region may be contacted their effort may be organized to get
maximum possible benefit of the plantation.

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3. Micro and Small Scale Enterprises

Figure 13. 3 Model for micro and small scale enterprises development

The above figure shows how the integration help in creating job and income
opportunities in micro and small scale levels from the development of bamboo. Micro
enterprises are businesses that may need a capital of less than Br. 20,000 and mostly
require less than ten employees. And small scale enterprises are classified with their
capital requirement of between Br. 20,000 and Br. 500.000. Different organizations are
indicated that are working on enhancing the capability of micro and small scale
enterprises in the region.

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4. Medium and Large Scale Enterprises

Figure 13. 4 Model for medium and large scale enterprises development

Figure 13.4 shows the development model for the processing of bamboo resource in
medium and large scale business level. The business definition based on Ethiopian
context is demanding a capital of more than Br. 500,000. Different industrial and
construction products may be processed and give very huge return for the country.
We will consider some sample products and see how they are worth to invest on them, in
the next section of the paper.

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14. FEASIBILITY STUDY ON SOME

REPRESENTATIVE PRODUCTS OF BAMBOO

There are three types of products selected for their economic advantage, technology
availability and market demand. These products are bamboo mat, bamboo flooring and
bamboo incense sticks. These products are highly demanded in the international market
and their demand is showing increasing pattern from time to time. The manufacturing
process needs some simple facilities that can be imported from countries like England,
India, Taiwan and china. The skilled labor requirement can be fulfilled with the available
manpower in the country with only some weeks training. Generally the investment cost
of these facilities is small relative to their daily processing capacity. The manufacturing
process of these products is shown below.

14.1. MANUFACTURING PROCESS

The manufacturing process of the three selected products is given in the next three pages.
Figure 14.1 shows the manufacturing steps of manufacturing bamboo mat, Figure 14.2
indicates the manufacturing steps of bamboo floor manufacturing line and Figure 14.3
shows the steps required in bamboo incense sticks manufacturing. The basic raw material
required is good Ethiopian highland bamboo. Some additional raw materials to be used
are lacquering, gluing and varnishing chemicals.
The layout of the processing plant, showing the arrangement of manufacturing facilities
position of offices, raw material stores, finished good stores, parking areas etc, is
prepared and is shown as an Annex – C.

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1. Bamboo Mat Manufacturing Process:

Mat Pasting
Raw Material (Bamboo)

Spraying
Cutting to sizes

Scission
Splitting

Fringe Sewing
Knot Removing

Packing
Polling

Drying

Polishing

Grinding

Weaving

Pressing

Figure 14. 1 Manufacturing process for bamboo mat

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2. Bamboo Floor Manufacturing Process:

Four side Molding

Raw Material (Bamboo)

Double end sawing & molding

Cutting to sizes

Belt sanding
Splitting

Coating
Knot Removing

UV Curing
Drying

Lacquering
Molding

Packing
Cutting-Off

Glue Coating Glue

Board Joining

Cold Pressing

Figure 14. 2 Manufacturing process for bamboo flooring

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3. Bamboo Incense Manufacturing Process:

Raw Material (Bamboo)

Cutting to sizes

Splitting

Knot Removing

Polling

Drying

Incense Stick Sizing

Glue Coating Glue

Polishing

Grinding

Packing

Figure 14. 3 Manufacturing process for bamboo incense sticks

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Study on Establishment of Bamboo Processing Plants in Amhara Regional State

14.2. MANUFACTURING MACHINERIES

To manufacture the three different products, we need different machineries. These

machineries should be arranged based on the above manufacturing process. Among these
are the following machines.

The detailed specification of all the required manufacturing machines are organized and
put as an Annex - B.

1. Bamboo Mat Manufacturing Machines

The table below shows the required machines used in bamboo mat manufacturing lines
with their required quantity, unit cost and the total purchasing cost.
Table 14. 1 Machines required for mat manufacturing line

Unit Sub total

S.N. Machine Quantity Price(Birr) (Br)
1 Bamboo Sawing Machines 8
38391 307128
2 Bamboo splitting Machine 9
65512 589608
3 Knob splitting Machine 1
45000 45000
4 Polling Machines 1
45000 45000
5 Polishing Machine 1
67500 67500
6 Drying Machine 1
72600 72600
7 Auto High Speed Cutter Grinder 2
66500 133000
8 Weaving Machine 7
112000 784000
9 Pressing Table 2
147250 294500
10 Bamboo Pasting Machine 1
71000 71000
11 Auto Sprayer 1
80000 80000
12 Scission Machine 8
39000 312000
13 Sewing Fringe 2
51400 102800
Total Cost 2904136

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2. Bamboo Flooring Manufacturing Machines

The table below shows the required machines used in bamboo floor manufacturing lines
with their required quantity, unit cost and the total purchasing cost.

Table 14. 2 Machines required for bamboo flooring manufacturing line

Unit Price Sub total

S.N. Machine Quantity (Birr) (Birr)
1 Bamboo Sawing Table 10
38391 383910
2 Bamboo Splitting Machine 12
65512 786144
3 Knob Splitting Machine 1
45000 45000
4 Drying Machine 1
72600 72600
5 Open side Auto four sides molder 2
62750 125500
6 Automatic Cut-off Saw 4
39000 156000
7 Roll Coater Glue Spreader 2
59420 118840
High Frequency Board Joining
8 Machine 2
133000 266000
9 Hydraulic Cold Press 3
147200 441600
10 Four Side Molder 2
92900 185800
Auto Six Spindle Double End Miter
11 Saw with Molding Head Machine 2
80000 160000
12 Light Duty Series Wide Belt Sander 3
88350 265050
13 Reversible Roller Coater 3
76700 230100
14 UV Curing Machine 3
65600 196800
Lacquered Pan and Wide Belt
15 Sander 4
88350 353400
Total Cost 3786744

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3. Bamboo Incense Sticks Manufacturing Machines

The table below shows the required machines used in bamboo incense sticks
manufacturing lines with their required quantity, unit cost and the total purchasing cost.

Table 14. 3 Machines require for incense sticks manufacturing line

S.N. Machine Quantity Unit Price(Birr) Sub total

1 Bamboo Sawing Table 5
38391 191955
2 Bamboo Splitting Machine 6
65512 393072
3 Knob Splitting Machine 1
45000 45000
4 Polling Table 1
45000 45000
5 Drying Machine 1 72600
72600
6 Incense Stick Sizing Machine 2 142000
284000
7 Polishing Machine 1 67500
67500
8 Auto High Speed Cutter Grinder 2 66500
133000
Total Cost 1232127

The equipments that are to be used in moving materials from receiving to stores, from
stores to production areas, with in the production area, from production area to finished
goods store and from store to shipping areas are also included in the estimation of cost
and the total cost for materials handling is Br. 1,000,000. The material handling facilities
include one forklift, conveyors, push carts, etc.

14.3. RAW MATERIALS REQUIRED

For the production of bamboo floor, bamboo mat, and bamboo incense sticks, the basic
raw material required is good quality bamboo. The Ethiopian highland bamboo is taken
to be the raw material for our consideration. The highland bamboo responded good
results for different tests for its physical and mechanical properties and can be used for
the manufacturing of these products. In addition to the basic raw material- bamboo, glue,
varnishing chemicals and lacquering chemicals are required.

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14.4. PROJECT SCHEDULING

Activities to realize the project

For the project to be implemented it will be necessary to consider all the activities
required, their estimated duration, and their precedence relationship. The following table
shows the activities required, their duration and their precedence relationship.

Table 14. 4 Project activities, duration and precedence relationships

Activity Precedence
Name Description Duration (Days)
A Licensing and registration 10 -
B Acquisition of land 20 A
C Land Development 40 B
D Building 190 C
E Electrification 10 D
F Purchasing machines and equipments 100 B
G Machine installation and plant erection 30 E,F
H Commissioning 5 G

The activity durations consider their implementation based on calendar days. Then the
total completion of the project will take nearly one year. The detailed project schedule is
shown in Annex - D.

Organization Structure and Manpower Requirement

The manufacturing process focuses on one product family and all the three products use
the same raw material – highland bamboo. Therefore it will be reasonable to organize the
organization into functional departments. The organizational structure is designed to be
flat for better organization and smooth flow of work, since the orders from top level
management and information from lower level of management to the top can reach with
shorter time and cost.

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General Manager

Administration and Finance Technical and Production Marketing and Sales Manager
Manager Manager

Maintenance Head Production head

Quality Head

Purchasing Head Accounting Personnel

Head

Figure 14. 4 Organizational structure

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14.4. COMPONENTS OF CAPITAL COST OF THE PROJECT

a. Land
Area selected for this investment is Injibara (Capital of Awi zone) for the following
advantages:
1. The raw material is very well distributed around the town (including the town
plantation and the potential). It is economically advantageous to get the raw
material (bamboo) with relatively lower cost of raw material and lower cost of
transportation.
2. The area has well established infrastructures such as telephone, water, electricity,
road and internet.
3. It is only at a distance of 122 km from Bahir Dar, the capital of the region and
has International Air Port which started international flight recently. This
international flight may be used to export products to foreign market, help to
import some supportive raw materials (Lacquering chemicals, Glue, and
varnishing chemicals), and to import machineries, equipments, and spare parts.
4. It is also near to the potential local market, Addis Ababa. The town is located at a
distance of km and the entire road is connected with good quality of asphalted
road, and the road journey will take nine to ten hours.

Injibara is the administrative center of the Awi Zone in the Amhara Region. Injibara is
located at 10°57

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2
Proposed land size = 14,400m
2
Cost of leasing land = Br 1.21/m
2
Cost of land = area*cost/m
= 14400x1.21x40 (modality of lease price payment is with in 40 years and
the right on the land will last for 80 years)
= Br.696,960
Investment permit cost = 600Br
Registration and working permit fee = Br. 550
Total investment permit and certificate fee = Br. 1150

Total cost of land = Br. 698,110

b. Land development charge

The land will need some development before any other construction is commenced, and it
can be reasonably approximated to cost Br. 50,000

c. Building

i. Main building, Office & Administrative Blocks:

The cost of building, for the offices, administrative blocks and main building will
be done at the same rate.
Built up area = Area of main building + Area of Offices + Area of
Administrative blocks
= 3680 sq.m
Cost of construction at the rate of Birr 3500/ sq.m.
Cost= 3680x3500 = Br. 12,880,000

ii. Store Room:

Built up area= 1520sq.m.
Cost of construction at the rate of birr 1800/ sq.m
Cost = 1520x 1800= Br.2,736,000

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iii. Other Amenities:

Toilet block, guard house, power house, and fence = Br.110,000

The total investment required for building is sum i+ii+iii = Br. 15,726,000

d. Plant & machineries

All machineries required for the processing plant are to be imported from abroad (the
valuation is done based on the value of machineries to be imported from England,
Taiwan, China and India). The cost is assumed to cover the shipping of all the facilities to
the port of Djibouti. After the port land and rail transport modes may be used.

The total purchasing cost of the machineries is Br 8,923,007. This figure includes the
total cost of material handling equipments used in the processing plant.
The following data custom duty charges and clearance charges are based on custom data
of 2005, and some adjustments are made for the transporting charge.
Custom duty on machines (15%) = Br.1,338,451
Clearing charge (1.5%) = Br. 133,845
Total investment on plant and machinery and equipments is
= Br. 10,076,600

e. Transportation & erection charges

Road transportation charge = Br. 1.45/km/Quintal

Distance of the site (Injibara) measured from the port of Djibouti = 1430km
Weight of machines = 213000kg = 3130 Quintals
Transportation cost = 1.45x1430x3130 = Br. 4,416,600
Assuming the erection can be done by local experts and is estimated to cost (the cost will
include consulting from structural engineers, preparing special foundations and physical
erection of facilities) will be Br. 150,000

Total cost of erection and transport = Br. 4,500,600

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f. Electrical

Cost of electric motors, starters, switches, cables & other electrical items
= Br. 850,000

g. Contingencies

The following assumptions are made for the provision of contingency based on the level
of uncertainties and variations expected. More numbers assumed for more uncertain
investments.
• 0% contingency on land =0
• 5% contingency on land development = Br. 500
• 5% contingency on building = Br. 786,300
• 15% contingency on imported machinery = Br. 1,511,490
• 5% contingency on transport and erection = Br. 225,000
• 5% contingency on electrical = Br. 42,500
Total required contingency = 500+786300+1511490+225000+42500
= Br. 2,565,800

h. Miscellaneous fixed assets

• Office furniture = 500,000
• Office equipments =220,000
• Electric board = 10000

Total miscellaneous cost= Br. 720,000

The total fixed asset cost = 698110+50000+15726000+10076600+

4,500,600+850,000+2,565,800+720,000
= Br. 35,137,11

The total fixed asset cost = Br. 35,135,110

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i. Preliminary and preoperative expense

i. For the calculation of preoperative expenses the following logical assumptions

are made.
Service charge on term loan 0.65%
Commitment charge on term loan = 0.8%
Rate of investment on term loan = 7.5%
Assume term loan of 60% on fixed assets

Term loan = 0.6x35,137,110 = Br. 21,082,270

Service charge=0.65/100x35,137,110 = Br. 228,390

ii. Commitment charge on term loan 1.00%

Commitment charge = 0.01x35,137,110 = Br. 351,370

iii. Rate of interest on term loan 7.5% per annum

Assuming the interest during implementation period (12 months) & the loan is
uniformly distributed throughout the year
Interest = 0.075x21,082,270x1/2x12/12 = Br. 790,585

iv. Insurance premium on fixed assets

Insurance premium on fixed assets at 0.75% per annum except land
= (35137110 -698,110) x0.75/100 = Br 258,300
Other start up cost birr = Br. 50,000

Total pre-operative expense = 228,390+351,370+790.585+258,300+50,000

= Br. 1,678,645

j. Working Capital Margin

Considering the nature of the manufacturing process and the machines and equipments
being employed we can reasonably assume the utilization of our capacity as follows:

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Table 14. 5 Assumed capacity utilization

Year I II III IV V
Capacity utilization 70% 80% 80% 80% 80%

At this stage, the working capital requirement for the first year of operation with an
assumed 70% utilization is calculated.
To get the working capital for each month let us find the raw material & other expenses:

2. Raw Material & Consumables

For the manufacturing of bamboo flooring, bamboo amt and bamboo incense sticks the
raw material used is selected to be Ethiopian highland bamboo. In addition some
chemicals are used in the process these chemicals are glue, varnishes and lacquering
chemicals.
Average daily production of the three products is calculated by adding the daily capacity
of the three manufacturing lines.
Line 1: Bamboo floor manufacturing line capacity = 5 tons/day
Line 2: Bamboo mat production line capacity = 4 tons/day
Line 3: Bamboo incense sticks manufacturing line capacity = 2 tons/day
The total average daily capacity of the plant will be 11 tons/day.
Assuming 9 % wastage of raw material we can calculate the daily requirement for
bamboo and other consumables.
Therefore the daily demand of raw material = 12 tons of bamboo per day.
The production is to be done in one shift.
But the for the first year 70% utilization is used, hence
Output/day = 0.7 x11tons/day = 7.7 tons/day
Raw material/day = 12x0.70= 8.4 tons/day
Output per month assuming 25 working days (300 working days in a year)
= 7.7x25 = 169.4 tons/month
Raw material requirement for 1 month = 12x25 = 300 tons
The cost of raw material for one month requirement can be calculated by changing the
number of culms into tonnage, since the raw material is bought in number of culms.

7 By Bereket
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One matured Ethiopian highland bamboo weigh in average 8.7kgs. Therefore there are
1149 culms in one ton.
Thus we need 1149x12 culms/day = 13788 culms/day. And for 70% utilization of the
first year, we need 9652 culms/day.
The average cost of one culm, including transport is Br 7.50, and adding unit cost of
consumable chemicals to it the cost will reach up to Br 10.00.
Therefore the daily raw materials cost will be calculated for 70% capacity utilization as:
= 9652 culms/day*Br 10/culm = Br 96520/day and
= Br 2, 413,000/month

2. Expense
a. Direct expense:

i. Power
Connected power =520HP = 388kilowatts
Monthly consumption=388x8x25 = 77600KWH
For the first year operation (70%utlization)
Consumption=0.7x77600 = 54320KWH
Power charge = 0.3349Birr/KWH (for industrial use)
Power charge = 0.3349x54320 = Br. 19,000/month

ii. Water
Water is required for the process of manufacturing and for other services.
3
Average monthly requirement = 4000m
3
For the first year with utilization of 70% = 2800m
3
Water charge = Br.5.5/m
Monthly water charge = 7000x5.5 = Br.15,400

iii. Wages & salary

The following personnel and wages and salaries are required for the first year of
operation. The assumption for wages and salaries are made based on current market
value of workers. The number of workers is determined based on the designed
capacity of the plant and the workers may be classified as administrative workers and

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production workers. There are 117 machines in the plant and there are some other
facilities that need workers like moving materials from one place to another and
operating material handling equipments. Therefore we need 145 workers for
operating machines and material handling tasks, of which 90 are skilled workers.
Table 14. 6 Manpower requirement

Title No. of Salary/month Total salary

No
person
1. General manger 1 8000 8000
2. Production in charge 6 2500 15000
3 Administrative Staff 35 2200 77000
3. Skilled/Semiskilled personnel 90 1500 135000
4. Unskilled workers 55 750 41250
5. For non regular workers 10,000
Total 187 286,250

Monthly salary of the administrative staff = 77000+8000 = Br. 85,000

Monthly salary to direct workers = Br.201,250

iv. Repair & maintenance

a. Repair & maintenance for building for the first year= 0.5% of the cost per
year
Repairing of buildings cost/month = (0.5/100x15726000)/12 = Br. 6552
b. Repair & maintenance for plant machinery for the first year = 4% of the
cost per year
= (4/100x10076600)/12= Br. 33600

Total maintenance cost = Br. 40152/month

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v. Depreciation
The following depreciation rate is assumed for the calculation:
• Office & Administrative building = 4%
• Factory building = 4%
• Plant & machineries = 8%
• Office equipments = 7%
Depreciation = 0.04x15726000+0.08x10076600+0.07x720000 = Br. 8,740,720
Depreciation per month = Br. 728,393/month

The total direct expense per month

= 19,000+15,400+201250+40,152+728,393
= Br. 1,004,200/month

b. Overheads:

i. Administrative overheads
From the manpower planning we can see that the salary to administrative staff per
month = 8,000+77,000
= Br. 85,000 /month

ii. Selling overhead

Packing expense = 0.3% sales turnover

Selling& advertisement expenses = 1% of sales turnover
Selling overhead =1.3% of sales turnover

Now let’s calculate the daily sales of the processing plant. The Ethiopian highland
bamboo productivity is 1149 culms/hectare. The daily raw material required is 8.4 tons
for the first year (9652culms/day), and the output per day for the 70% utilization of first
year is 7.7 tons/day (8847 culms/day).
Thus this output can be changed into appropriate unit that can be directly used in the
2
market selling unit, m .

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Figure 14. 5 Cross –sectional dimension of Ethiopian highland bamboo

The cross sectional dimension shows the mean diameter of the Ethiopian highland
bamboo is 4 cm.
3HULPHWHU RI RQH FXOP

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To get the working capital let us calculate the total assets since working capital is 25% of
the total assets. To calculate the total asset, the following assumptions have been made.

Current assets
• Raw material - 2 month
• Work in progress - 5 days
• Stock of finished goods - 2 month
• Debtors - 2 month

Current liabilities
• Suppliers credit for raw material - 0

Total current assets

i. Raw Materials for two months

= Cost of raw materials for two months
= 2x2,143,000 = Br.4,286,000

ii. Work in progress for 5 days

= Cost of raw material for 5 days + expense for 5 days
= 5/25x2143000+5/30x1004200 = Br. 595,970

iii. Stock of finished goods for two months

= Cost of material for 2 month + Expense for 2 month
= 2x2143000+2x1004200= Br. 6,294,400

iv. Debtors for two months

= Cost of material for 2 month + Expense for 2 month
= 2x2143000+2x1004200 = Br. 6,294,400

Hence total current assets = 4,286,000+595,970+6,294,400+6,294,400

= Br. 17,470,770

Working capital margin at 25% of total current assets = 25/100x17,470,770

= Br. 4,367,692

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Cost of the Project
Table 14. 7 Cost of the project

Item Cost (Birr)

a. Land
698110
b. Land development
50000
c. Building
15076600
d. Plant and machinery
10076600
e. Transportation and erection
4500600
f. Electrical
850000
g. Contingency
2565800
h. Miscellaneous assets
720000
i. Preliminary and pre operative expense
1678645
j. Working capital margin
4367692
Total 40584047

Hence the maximum permissible bank finance

= Total current assets - 25% of the total current assets - current liabilities
= 17,470,770 –4,367,692 - 0
= Br. 12,229,540

Profit before Tax & Interest

Gross profit before tax = Sales - Raw material cost – Expense - Overheads
= 15,144,675x12 – 2,143,000x12 –1,004,200x12 – 498,762x12
= Br. 137,984,556/year

Financial charges

a. Interest on term loan

Assuming 11% rate per annum to be cleared in 7 years where for the first year is
excluded, interest on term loan will be calculated to be:
= 0.11x21,082,270 = Br. 2,319,050

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b. Interest on working capital loan

Assuming loan from bank for working capital is taken, the interest on working
capital loan will be:
= 0.11x 4,367,692 = Br. 480,450
Profit after financial charge =137,984,556 – 2,319,050 - 480,050
= Br. 135,425,056
Preliminary expense written off = Br.1,678,645
Profit before tax = Br. 133,746,411
Assuming 30% income tax rate
Provision for tax=0.30x133746411 = Br. 40,123,923
Profit after tax = 133746411 – 40123923 = Br. 93,622,488
Dividened = 10% of the profit after tax = 9,322,488
Retained profit = Profit after tax - Dividend
= Br. 84,260,239
Net cash accrual = Retained profit + Depreciation + Preoperative expense
= 84,260,239+728,762x12+1,678,645= Br. 94,679,660

Cost of Production & Profitability Estimate for Five Years

General Assumptions
For the production and profitability of the processing plant for the first five years of
production can be evaluated by having the following reasonable general assumptions.
• An increase of 10% in the wages and salaries payable every year
• An increase of 5% on repair & maintenance
• An increase of 10% in factory supervision and administrative expense
• Term loan payment = nil for the first year of operation
• Term loan payment for the next years (excluding the first year) will be Br.
3,011,753 each year
• Assuming dividend at the rate of 10% from second year of operation on wards
and which will increase by 2% each year and zero for the first year of operation

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The table below revises the cost of production and profitability estimate for the first five
years of operation.
Table 14. 8 Cost of production & profitability estimate for five years

Item
no Description Year I Year II Year III Year IV Year V
Capacity utilization 0.7 0.8 0.8 0.8 0.8
18173610 20769840 20769840 20769840
A. Sales realization 0 207698400 0 0 0
B. Cost of production
Raw material 25716000 29389714 29389714 29389714 29389714
Power 228000 260571 260571 260571 260571
Water 184800 211200 211200 211200 211200
Wages & salaries 2415000 2656500 2922150 3214365 3535802
Repair & 557771.50 585660.08
maintenance 481824 505915.2 531210.96 8 3
Depreciation 8740776 1297680 1297680 1297680 1297680
Sub total B 37766400 34321581 34612527 34931302 35280627
Adm. & selling
C. overhead
Administrative
expense 1020000 1122000 1234200 1357620 1493382
Selling expense 4725144 5400165 5400165 5400165 5400165
Sub total C 5745144 6522165 6634365 6757785 6893547
Gross profit before 13822455 16645150 16600931 16552422
D tax (A-B-C) 6 166854655 9 3 6
E. Financial charges
Interest on term
loan 2319050 1792000 1792000 1792000 1792000
Interest on working
capital 480450 316513 316513 316513 316513
Sub total E 2799500 2108513 2108513 2108513 2108513
Profit after 13542505 16434299 16390080 16341571
G. interest(D-E) 6 164746142 6 0 3
Preliminary
F. expense written off 1678645 0 0 0 0
Profit/loss before 13374641 16434299 16390080 16341571
H. tax 1 164746142 6 0 3
Provision of tax 49423842.4 49302898. 49170240. 49024713.
I. (30% of income tax) 40123923 5 7 1 9
11504009 11473056 11439099
J. Profit/loss after tax 93622488 115322299 7 0 9
18302559.
K. Dividend 9362249 11532230 13804812 16062278 9
10123528
L. Retained profit 84260239 103790069 5 98668282 96088439
M. Depreciation 8740776 1297680 1297680 1297680 1297680
Preliminary
N. expense written off 1678645 0 0 0 0
0 Net cash accrual 94679660 105087749 10253296 99965962 97386119

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(L+M+N) 5
Term loan
P repayment nil 3011753 3011753 3011753 3011753

IRR Calculation

The IRR uses the NPV equation as its starting point:

Initial investment = Br. 40,584,047

40584047 = 94679660 + 105087749 + 102532965 + 99965962 + 97386119

(1 + IRR) (1 + IRR) (1 + IRR) (1 + IRR) (1+ IRR)5
2 3 4

Solving for the value of IRR in the above equation we can find, IRR = 225%.

Since the IRR value of the project is very high, it will be worth to invest in it. The
investment will be returned with in less than a year.
This project will create job opportunities to more than 187 citizens, and the total
Ethiopian highland bamboo may create jobs for a total of 4000 citizens. This number will
be very high if all the supply chain is considered and the plantation, micro and small
businesses are also considered. The resource required to run the planned capacity of this
processing plant is the existing plantation of 2380 hectares of highland bamboo in Awi
zone.
In addition, if all existing resource is utilized and value addition is made by processing
the same, the country will get more than Br. 10 billion annually.

8 By Bereket
Study on Establishment of Bamboo Processing Plants in Amhara Regional State

15. CONCLUSIONS AND RECOMMENDATIONS

15.1. CONCLUSIONS

From this paper we can conclude that,

1) Ethiopia has the largest bamboo resource in Africa, which constitutes more than
67% of the total 1.5 million hectares of African resource. Even though the
resource exists in large extent in Ethiopia, the utilization and development of the
resource is poor. Currently the application is limited only to some household
level, low quality, and low priced products. Hence the resource is wasted due to
poor utilization and low attention to the economic, environmental and social value
of the resource.

2) The market of bamboo is increasing from time to time in the global market and
the transaction reaches its high value, and is also expected to increase from time
to time.

3) There are two types of indigenous species of bamboo in Ethiopia, namely

highland bamboo and lowland bamboo. The mechanical and physical properties
of these indigenous species respond well to many industrial and construction
products. The Ethiopian highland bamboo is good for products including, bamboo
flooring, bamboo panels, ply bamboo, bamboo mats, and incense sticks.
Therefore it is technically feasible to produce some of these products.

4) The developed bamboo development and utilization models show how the
contributing parties can be integrated. Bamboo can be effectively utilized when
the plantation is well integrated with micro and small scale industries, medium
and large scale processing industries and finally with the customer by creating
effective and optimal supply chain.

5) The commercial evaluation of some representative products (bamboo flooring,

bamboo mat and incense sticks) shows positive result. The processing plant is
designed to process all these three products, and the processing plant will base on

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Study on Establishment of Bamboo Processing Plants in Amhara Regional State

the existing plantations of 2380hectares of the highland bamboo resources around

the town, and may not need to have its own plantation.

6) The processing plant is reasonably located at Injibara town of Awi zone in

Amhara Regional State. The site is situated with proximity to the raw material and
availability of all the facilities to reach local and international markets.

7) The investment requirement for this representative project is about Br. 41 million
and the expected annual return is Br. 94 million is expected in its first five years
of operation. Therefore the pay back period is less than a year and it will have an
IRR value of 225%.

8) Based on the analysis, Ethiopia can get more than Br.10 billion annually from the
processing of existing plantation of the highland bamboo resource. This figure
could be much higher if new commercial cultivation is considered.

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15.2. RECOMMENDATIONS

It is logical to think that Ethiopia is not getting the deserved benefit of having large
bamboo resource coverage. And to improve this, existing traditional way of utilizing the
resource should be improved and generally the following recommendations are made for
implementation.

1) Bamboo resource should be properly mapped and separately included in the forest
inventory so that some further tasks could be simple and complete.

2) There should be better utilization of the resource to entertain the complete

advantage of the resource.

3) There should be better integration and coordination of different stakeholders in

the development and utilization of the resource. All parties (sponsors, technical
assistants, government offices, non governmental organizations) should play they
part in the proper utilization of the resource.

4) There should be some tissue culture centers to encourage mass plantation of the
resource for commercial purposes.

5) Some effort is required to implement some processing plants in the country, so

that the country will benefit from this untapped sector.

6) This effort can be extended in the value addition to other agricultural products so
that the export income of the nation will be maximized, and create more job
opportunities to citizens in the process.

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16. FUTURE RESEARCH AREAS

This thesis tries to address some of the many issues that can be done with bamboo
resource in Ethiopia. But there are many other interesting future expected areas that can
be done in recent years. And the following may be included.

1. Integration of bamboo resource with low cost housing projects:

There is increasing pressure on shortage and increasing cost of construction

materials. Therefore it will be helpful to integrate bamboo with other construction
materials, for their advantage of low cost and attractive nature. Experiences of
many Asian and some Latin American countries may help.

2. Paper and pulp processing:

There are some preliminary studies on the technical feasibility of lowland bamboo
to be used as a raw material for pulp and paper industries. The quality of pulp and
paper made of bamboo is better than hard wood pulp and papers and equivalent to
that of soft wood pulp and paper products.

3. Bamboo fuel and extracts

Through pyrolysis, bamboo can be converted into three valuable products:

bamboo charcoal, oil and gas. Changing the pyrolysis parameters can change the
product shares depending on the purpose and market conditions. Bamboo extracts
contain valuable elements and can be used in pharmaceuticals, creams and
beverages. Bamboo gas can be used as a substitute for petroleum. Bamboo
charcoal is an excellent fuel for cooking and barbequing. Activated charcoal is
used as a deodorant, purifier, disinfectant, medicine, agricultural chemical and
absorbent of pollution and excessive moisture.

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REFERENCES

1. Maxim Loboviskov, "World Bamboo Resources, A Thematic study prepared

in the framework of the Global Forest resources assessment-2005", Rome,
2007
2. Eastern Africa Bamboo Project, "Priority to the millennium grass – Bamboo,
for its superior products", Ethiopia
3. Francis E, Brink, "Bamboo Reinforced Concrete Construction", US Naval
Civil Engineering Laboratory, Port Huenema, California, Feb, 1966
4. Seyoum Kelemework, "Anatomical Characteristics of Ethiopian Lowland
Bamboo", International Center for Bamboo and Rattan, Jan 16, 2008, Beijing,
China
5. Bernard Kigomo, "Guidelines for Growing Bamboo (Based on Guidelines
Establishment and Managing plantation of Bamboo in Kenya", March 2007
6. The Yankee Group Inc, "Western Juniper Harvest Systems Trial (Final
Report)", Oregon, December 2001.
7. UNIDO, "Bamboo Market Study in Ethiopia, prepared for UNIDO,
Technical Report", 20 Jan 2007
8. Minda Teshome, ANRS, Bureau of Agriculture & Rural Development, "Regional
Bamboo Resource Potential and Development Program", 2008, Bahir Dar
(unpublished)
9. Agricultural Research Center, "Fiber and Paper Making Characteristics of
Bamboo", Technical Report Bulletin No. 1361, US Department of Agriculture ,
Washington DC, August 1966
10. Minda Teshome, "Bamboo Development Strategy for Amhara Region,
submitted to regional Micro and Snmall Trade and Industry Enterprise
Promotion Agency," December 2007, Bahir Dar (unpublished)
11. Million Bekele, "Data Collection and Analysis for Sustainable Forest
Management in ACP Countries linking national and International efforts",
August 2000, Addis Ababa

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12. Ensermu Kelbessa, "A socio-Economic Case study of the Bamboo Sector in
Ethiopia: An Analysis of the Production to Customption System", March
2000, Addis Ababa
13. Donald Waters, "Logistics: An Introduction to Supply Chain Management",
Palgrave MacMillan, 2003
14. FDRE, Central Statistical Agency, "Statistical Abstract 2007", January 2008,
Addis Ababa
15. Thompson, A, "Business Feasibility Study: Dimensions of Business Viability",
Perth, Best Entrepreur, 2003
16. FAO, "Wood Preservation Manual", Rome, 1986
17. N, Imboden, "A Management Approach to Project Appraisal and
Evaluation", Paris, 1978
18. Amlaku Asres, "An Economic Evaluation of Soil Conservation in Amhara
Region", University of Jordan, August 2002

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ANNEX – A: Regional Map and Bamboo Resource

Distribution
ANNEX – A 1: Map of Amhara Regional State by Zones and Woredas, 2008

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ANNEX – A 2: Highland Bamboo Distribution in Awi Zone

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ANNEX – A 3: Highland Bamboo Distribution in West Gojjam Zone

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ANNEX – A 4: Highland Bamboo Distribution in East Gojjam Zone

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ANNEX – A 5: Highland Bamboo Distribution in South Gondor Zone

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ANNEX – A 6: Highland Bamboo Distribution in North Shewa Zone

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ANNEX – A 7: Lowland Bamboo Distribution in Awi Zone

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ANNEX – A 8: Lowland Bamboo Distribution in North Gondor Zone

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ANNEX – B: Detail Specification of Bamboo Processing

Machines
1. ORIGINAL BAMBOO SAWING TABLE

MODEL PC-W101
Motor Power 2HP
Spindle Speed 1032R.P.M.
Productivity 120 pcs/hr
N.W. 85kg
G.W. 145kg
Machine Size (LxWxH) 100X70X155cm
Packing Size (LxWxH) 110X80X165m

2. SPLITTING MACHINE

MODEL PC-W102
Motor Power 3-5HP
Spindle Speed 368R.P.M.
Productivity 103 pcs/hr
N.W. 580kg
G.W. 750kg
Machine Size (LxWxH) 410x100x120cm
Packing Size (LxWxH) 420x110x138cm

3. KNOB SPLITTING MACHINE

MODEL PC-W103
Motor Power 5-8HP
Spindle Speed 553R.P.M.
Productivity 253 ft/sec
N.W. 360kg
G.W. 480kg
Machine Size
180X70X135cm
(LxWxH)
Packing Size
190X80X145cm
(LxWxH)

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4. POLLING TABLE (4-CUTTER TYPE)

MODEL PC-W106-1
Motor Power 3,3,2HP
Spindle Speed 4013 RPM
Productivity 135-405 ft/sec
N.W. 460kg
G.W. 620kg
Machine Size (LxWxH) 110x100x100cm
Packing Size (LxWxH) 120x110x110cm

5.1. POLISHING MACHINE (MAT LICED)

MODEL PC-W109-1
Motor Power 2.5M
Spindle Speed 76 R.P.M.
Productivity 8000 pcs
N.W. 230kg
G.W. 310kg
Machine Size (LxWxH) 270x76x89cm
Packing Size (LxWxH) 280x86x107cm

5.2. POLISHING MACHINE (INCENSE STICK)

MODEL PC-
Motor Power 1H
Spindle Speed P
368
Productivity RPM
90k
N.W. g
230k
G.W. g
345k
Machine Size (LxWxH) g
380x64x120cm
Packing Size (LxWxH) 390x74x138cm

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6. DRYING MACHINE

MODEL PC-W107
Motor Power 3,3HP
Productivity 150000 pcs
N.W. 1500kg
G.W. 1620kg
Machine Size (LxWxH) 105x250x220cm
Packing Size (LxWxH) 115x260x230m

7. AUTO HIGH-CUTTER GRINDER

MODEL PC-Q311
Motor Power 1HP
Productivity 3400R.P.M.
N.W. 305kg
G.W. 350kg
Machine Size (LxWxH) 85x75x135cm
Packing Size (LxWxH) 90x80x145m

8. WEAVING MACHINE

MODEL PC-W112-2
Motor Power 1/2,1/4HP
Specifications 212c
Productivity m
50-160M
(8hr)
N.W. 1000kg
Machine Size
2757x1333x1454
(LxWxH)
Packing Size
2850x1550x1670
(LxWxH)

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9. PRESSING TABLE

MODEL PC-W113-1
Motor Power 7 1/2HP
Specification 212cm
sProductivity 700-1100M
N.W. 18000kg
Machine Size
3212x1061x300
(LxWxH)
0
Packing Size
open container
(LxWxH)

10. BAMBOO MAT PASTING MACHINE

MODEL PC-W115-1
Motor Power 1HP
Specifications 212cm
Productivity 1800-2500M
N.W. 1800kg
Machine Size (LxWxH) 2879x758x1515
Packing Size (LxWxH) 2820x1000x1760

11. AUTO SPRAYER

MODE PC-W114-1
Motor Power L 3,1/2,1,1,30HP
Specifications 212cm
Produce Capacity (Daily) 200-300Y
N.W. 1850kg
G.W. 1900kg
Machine Size (LxWxH) 10605x2273x2575
Packing Size (LxWxH) A 3850x 900x1500

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12. SCISSION NACHINE

MODEL PC-W116
Motor Power 1/2HP
Capacity Per Min 100-150 pcs

Productivity 120 pcs/hr

N.W. 500kg

G.W. 550kg
Machine Size 252x130x80cm
Packing Size 262x140x90cm

13. OPEN SIDE AUTO FOUR SIDES MOULDER

MODEL PC-C601
Moulding capacity 180x75mm
Working capacity for plane 150mm
Lower spindle power 3HP
Front vert. spindle power
Front upper spindle power 5HP
Rear upper spindle power
Left vert. spindle power 2HP
Right vert. spindle power 2HP
Feeding power 1HP
Machine size 2400x1200x1200 mm
Measurement 2460x1260x1450 mm
N.W./G.W. 1100/1400 kgs

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14. AUTOMATIC CUT-OFF SAW

MODEL PC-B901
Saw blade speed 3630/3050 RPM
Saw blade size 1"x18"x3.4mmx120T
Cycle speed 81 cuts per minute
Working air pressure 4-5 kg/cm
Table height from 890mm
floor
Table surface area 660x700mm
Dust outlet diameter 4
Motor " optional)
7.5HP (10HP
Net Weight 350kgs
Gross weight 410kgs
Packing measure ment 950x850x1350mm

15. ROLL COATER GLUE SPREADER

16. HIGH-FREQUENCY BOARD JOINING MACHINES

MODEL PC-K091
Mains voltage 220-380V
Input power 10KVA
HF output 6KW
5-8MHZ
Oscillating frequency
13.56MHZ
Rectifier Silicon diode
Press Pneumatic/Hydraulic
Max capacity 650x1000x65
Belt conveyor Motorized
Control Electronic
Dimensions 1500x4000x1600

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17. HYD. COLD PRESSES

MODEL PC-K003
Platen size (mm) 2500x1250
Daylight (mm) 1000
Total thrust (Ton) 50
Hyd. cyl. 125x2
Stroke (mm) 500
Pressure (kg/cm) 1.6
Hyd. power (HP) 5
Machine size (mm) 3300x1400x2400

18. FOUR SIDE MOULDER

MODE PC-C611
Max. working width 200mm
Max. working height 125mm
Upper spindle motor 10HP
Lower spindle motor 7.5HP
R-Vertical spindle 7.5HP
L-Vertical spindle 7.5HP
Feeding motor 5HP
Up & down motor 1HP
Spindle speed 6000RPM
Spindle diameter 40mm
Feeding speed 6-25M/min
First bottom spindle 160mm
Max. R-vertical spindle 180mm
cutter L-vertical spindle 180mm
dia. Top spindle 180mm
Rear bottom spindle -
Packing size 2800x1500x1650m
N.W. m 2000 kgs
G.W. 2500 kgs

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19. AUTOMATIC DOUBLE END MITER SAW WITH MOULDING HEAD MACHINE

MODEL PC-B421
Number of rails 2
Width of cut (mm) 280-1200
Length of cut (mm) 540
Sawblade dia. (optional) 10"-12"(

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20. REVERSIBLE ROLLER COATER

MODEL PC-M013
Eff. coating width (mm) 600
Workpiece thickness
1-35
(mm)
Min. workpiece
300
coating length (mm)
Feeding speed (m/min) 15-40
Feeding power (HP) 2
No. of roller 2
Machine size (mm) 1340x1240x1250
Measurement (mm) 1440x1340x1550
N.W. (kgs) 500
G.W. (kgs) 620
21. INCENSE STICK SIZING MACHINE

MODEL PC-W108
Motor Power 1HP
Spindle Speed 2293 RPM
Productivity 12 pcs/sec
N.W. 110kg
G.W. 165kg
Machine Size 213x77x110cm
(LxWxH)
Packing Size (LxWxH) 223x87x128cm

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22. UV CURING MACHINE

MODEL PC-M401
Eff. irradiant width (mm)
No. of UV lamp
(kw/pcs)
Feeding speed (m/min)
Power 7KVA/220V 3

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ANNEX – D: Scheduling Implementation Plan

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ANNEX – E: Bamboo Plantation Guidelines

E1. THE GROWTH HABIT OF BAMBOO

The bamboo plant (Figure E1) is made up of an underground axis and above ground axis. The
underground axis is comprised of rhizomes, roots, and buds. The above ground axis is comprised
of stems, branches, and foliage. Buds on the rhizomes may develop into shoots that emerge from
the ground. The new shoot elongates vertically into a main stem or culm until it attains its full
height. The growth of a culm is completed in one growing season. In large bamboo species, new
culms may grow to a height of more than 20 meters within 3 months.

Figure E1 Parts of the bamboo plant

The bamboo culm is cylindrical and is divided into sections by diaphragms or nodes. The section
between two nodes is called an internode. Internodes are hollow in most bamboos, but solid in
some species. The new culm is protected by sheaths that are attached to each node. The culm
gradually develops branches and leaves. As the culm matures, it lignifies and becomes harder and
stronger. The bamboo culm does not get thicker each year. Unlike trees, bamboos do not have
any secondary growth. Rather, as the rhizome system develops and matures, new and larger
shoots emerge annually until the maximum size of the species has been reached. The life of a
culm varies from species to species. Usually a culm is fully mature after 3 or 4 years. As mature

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culms grow older, they deteriorate and eventually die and rot. The life of the bamboo plant is
however sustained by the new shoots and culms.

Silvicultural management of bamboo is heavily based on its growth habit, particularly the way the
underground rhizome develops leading to the formation of culms. Effective management involves
systematic but selective cutting of mature culms, thereby harvesting a crop that is valuable and
useful. The removal of mature culms also maintains the vigour of the plant and allows for the
continuous generation of new shoots.

Two main systems of rhizome formation are predominant in bamboos, namely clump forming
rhizomes and running or creeping rhizomes. Clump forming bamboos have rhizomes that exhibit
a sympodial branching pattern. Running bamboos, on the other hand, have rhizomes with a
monopodial branching pattern.

In sympodial branching, each branch or axis, becomes dominant. In the case of bamboos with
sympodial rhizomes, each new rhizome turns upward and develops into a culm. On the other
hand, bamboos with monopodial rhizomes have a single, dominant subterranean stem, or axis that
develops secondary stems that either extend laterally or turn upward to become culms. The lateral
extension of the monopodial bamboos may exceed hundreds of meters.

E2. TYPES OF PLANTATIONS

The term ‘plantation’ can mean different things and it is useful to explain the various senses of
the term in relation to different bamboo plantation systems. This can at the same time help to
illustrate various applications for bamboo in relation to forestry and farming. It is useful to
distinguish, for instance, between homestead, commercial plantations, agroforestry, and forestry
programs.

Homestead Farms
A homestead farm is a small property with a dwelling house where a family resides and adjoining
land where cash crops and trees are planted. Planting bamboo clumps in a homestead can foster
self-sufficiency of woody materials as well as fiber for producing domestic implements such as
baskets and mats. It is common to see this kind of plantation in Amhara region. In Awi-zone it is
considered as alternative income source in addition to their primary source.

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Commercial Plantations
Bamboo can be planted as a commercial crop in areas of farms of just a few hectares to large
estates of thousands of hectares. Plantations have a well defined structure and a selection of crops
that are cultivated mainly for generating economic gain. A bamboo plantation need not be a
monoculture RQ WKH FRQWUDU\ LW LV DGYLVDEOH WR KDYH DQ DVVRUWPHQW RI EDPERR VSHFLHV LQ WKH
plantation.

Agro forestry
The term ‘agroforestry’ broadly refers to land use systems and agrarian practices that involve the
cultivation of woody species in combination or rotation with agricultural crops and/or animals on
the same land management unit. Agroforestry systems are driven by economic and ecological
goals. The aim is to generate a sustainable use of land for the benefit of livelihood and the
environment. The use of bamboo in agroforestry systems involves intercropping of cash crops
and the planting of hardwood trees. In this way cash crops can generate income in the short term,
bamboo can generate income in the medium term, while the trees can generate high value in the
long term. The use of numerous species with different rotations has a beneficial impact on the
soil. Knowledge, careful selection and good management of species are needed to maximize the
production and positive environmental effects while avoiding the shortcomings of monoculture
plantations.

Conservation Programmes
Bamboos can be integrated in forestry programs, primarily as fast growing woody species that
can generate a green canopy in a short period of time. In forest environments, bamboo provides
many environmental benefits, especially in relation to erosion control and protection of soil.

E3. RAISING OF PLANTING MATERIALS

Growing bamboo starts with obtaining the materials for planting. Such materials may come in the
form of seeds, wildings, offsets or cuttings that may be gathered from forests. Tissue-cultured
plantlets provide other forms of planting materials. Such planting materials can be obtained and
raised in the nursery as described below.

Propagation by seed
Bamboos generate seeds when they flower. For many tropical bamboos, flowering intervals range
from 40 to 80 years. There are two types of flowering in bamboos, gregarious flowering and
sporadic flowering. When gregarious flowering occurs, the clumps of an entire species flower,

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produce seed, and then die. Although large quantities of seed are produced during gregarious
flowering, they are viable only for a short period, sometimes only for a few days or months.
Sporadic flowering occurs in many species, including Yushania alpina, Dendrocalamus
giganteus, Dendrocalamus strictus, Dendrocalamus hamiltonii, Bambusa tulda, and Guadua
angustifolia, among many others. In this type of flowering, seeds are produced but the clumps
generally survive. What triggers the flowering of bamboo is not yet scientifically understood and
the onset of flowering is therefore not predictable.
Because of the long flowering intervals of bamboo, seeds are very seldom available and not
always a viable method for large scale propagation. If seeds of a certain bamboo species become
available, it is highly advisable to buy only from reputable vendors or specialized organizations
that can guarantee the provenance and viability of the seeds.

Use of Wildings
Apart from raised seedlings, wildings of bamboo from indigenous forest stands can be collected
and used for raising a bamboo plantation.
Young clusters of bamboo wildings can be scooped using a spade and taken to the nursery for
individual pricking into polyethylene tubes. Care should be taken to avoid disturbing intact small
wildings which resemble a mass of grass in the field. Small wildings of bamboo that are pricked
into tubes and kept under shade generally establish well. This method can raise many seedlings.
Once in the nursery and under shade, watering can be done regularly using a fine rose-can. Most
likely establishment would be poor due to disturbance of the rooting system during the uprooting
from the forest.

Vegetative Propagation
When seeds or wildings are not available, bamboos can be propagated vegetatively. This offers a
better source of planting material. Offsets (rhizome with attached section of stem) are commonly
used but their extraction is laborious and time consuming, and it is difficult to collect large
quantities of planting materials.
During extraction, damage may also occur to the roots, buds and rhizomes of mother clumps.
Offsets are bulky and also difficult to transport. Only small annual planting programmes may
therefore be possible when using offset materials.
Use of culm cuttings is a viable alternative and has several advantages. Multiplication of several
clumping species is possible by this method. When outplanted, vegetative materials raised from
cuttings develop to clumps much faster than offsets and even seedlings. The local species of

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bamboo, Yushania alpina and Oxytenanthera abyssinica, have however proved difficult to
propagate in this manner.

Using Culm Cuttings

• Good cuttings are obtained from 2 to 3 years old culms of healthy clumps.
• Double node or triple node cuttings are then prepared from the cut culms. The cuttings
should be made leaving a space of 5-7 cm away from the nodes. A sharp cutting knife is
necessary. For bamboos with thin walls the use of a saw is recommended to avoid
splitting of the cut ends.
• The best culm cuttings are generally those that are obtained from the lower and thicker
part of the culm, which has the vigor to generate roots and shoots. Successful rooting and
shooting is generally harder to achieve with cuttings from the upper and thinner part of
the culm.
• It is essential that the cuttings have either buds on the culm nodes or buds on the culm
branches. All branches and leaves of the cutting should be cut off down to the first or
second branch node.
• The cuttings should then be buried 6 – 10 cm horizontally on a raised nursery bed
prepared with a light soil and sand mixture (Figure E2). For some species, there is a
higher rate of success when a section of the branch with a bud is left emerging vertically
from the ground. Buds at the nodes or branches should always be placed on the sideways
or facing upwards and never downwards. Under warm or hot propagation conditions,
buds facing downwards will normally not grow.

Figure E2 Planting depth

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• Remember that for many species, the propagation success rate by culm cuttings can be
difficult or very low. As for the local species, Yushania alpina and Oxytenanthera
abyssinica, the success rate is extremely low.

• For many species, the rate of rooting and sprouting of cuttings can be enhanced by some
form of treatment. For these, an opening of about 2 cm in length and 1 cm in width is
made in the centre of the internodes (Figure E3).

Figure E3 Culm enhancing treatment

• The most recommended treatment for root induction is the use of 1-Naphthalene acetic
acid (NAA). This is prepared by dissolving 10 g of NAA in 250 ml of ethyl alcohol (95
%) in a container and stirring the solution gently. The solution is poured into a clean
container and water added to make up 100 litres. Stir thoroughly to mix. The final
concentration will be 100 mg/l of water or equivalent 100 parts per million (ppm). This
quantity of solution is sufficient to treat 1000 cuttings. Small volumes can be prepared by
use of equivalent amount of NAA.
• Pour about 100 ml of the solution into the culm cavity through the opening using a wash
bottle or any other convenient apparatus to avoid spillage (Figure E4). Note that culm
cuttings should be treated with NAA as soon as possible (preferably the same day). If this
is not possible due to distance from the extraction site, the cuttings may be preserved by
keeping them in moist sawdust, but for no longer than 3 days.

Figure E4 Pouring Solutions into culm

• Close the hole by wrapping and tying it with a polythene strip, ensuring that the wrapper
is tight to prevent the solution from leaking (Figure E5).

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Figure E5 Wrapping the hole

• The cuttings are then transferred into a raised 1-m wide nursery bed filled with a mixture
of soil and sand. The cuttings should be placed horizontally across the nursery bed, with
the opening facing upwards (Figure E6). One week prior to planting, the nursery bed is
drenched with an effective insecticide (e.g. Aldrin or any other) and a fungicide to
prevent termite and fungal attack respectively.

Figure E6 Plantation arrangement

Using Multiple Node Culm Cuttings

• Using the same preparation methods described above, culms cuttings of more than three
nodes maybe used for propagation. This is especially successful with species that are easy
to propagate. The preparation and arrangements in the propagation beds would be as
illustrated in Figure E6 only that the culm cuttings are continuous. In preparing these
long cuttings, great care has to be taken to avoid damaging the buds. These multiple node
culm cuttings are then buried 6-10 cm below ground and incubated for a length of time to
facilitate shoot and root development.
• In cold climatic conditions, roof cover with polythene sheets on top and sides improve
the temperature and humidity levels, giving better results for the multiple node cuttings.
Furthermore, covering the top soil during the incubation period with polythene sheet
reduces evaporation and the frequency of watering the buried culms.

Using Offsets
At the onset of the rainy season and just before the emergence of new shoots, offsets can be
obtained from bamboo stands as outlined below:

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• Dig out about 30-60 cm below ground for a rhizome of one to two years old culm (for the
indigenous bamboo). This can be recognized by the dark green colour and smooth downy
stems.
• Once a rhizome is exposed, cut back the aerial culm to 60 cm in length and cut the
rhizome off from the parent clump. Avoid injuring the junction of the culm and rhizome
and the underground dormant buds at the base of-the culm (Figure E7).

Figure E7 Point of separation of offset

• Extracted offsets should be transported to the planting site without any delay (preferably
the same day or the next) and planted immediately.

Using Tissue Culture Plantlets

Tissue culture (TC) is an essential method of propagating certain plant species on a large scale.
Commercial TC production is done in laboratories that need to produce and sell mass quantities
of plants in order to be economically viable.
Presently, only a few commercial tissue culture labs around the world produce bamboos. A very
important step prior to TC is the selection of elite mother plants with desired characteristics.
When bamboos are micropropagated from the tissue of a mature plant, the result will be a clone
of the mother plant. On the other hand, when seeds or the tissue of young plants are used as
propagules, the properties of the resultant clones will not be predictable.
TC bamboo plantlets are small and generally more vigorous than bamboos propagated by more
traditional methods. They can be grown to a size of up to 50 cm and planted into the field.
Alternatively, they can be further subdivided by means of rhizome division. Mass propagation of
small tissue culture plants is easily achieved and much less labour intensive than propagating
large cuttings. Each TC plant can be multiplied into 4 to 6 plants within a year. This allows for a
rapid development of nurseries stocks. When effective nursery management techniques are
applied, an investment of, for example, 10,000 young TC plants supplied in the form of rooted

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plugs can be easily multiplied by division of small plants to produce 40,000 to 60,000 planting
materials in one year.
Bamboo produced by TC may be widely used to develop large scale industrial plantations for
timber, biomass, or pulp and paper. Cloning bamboo plants with superior traits opens
opportunities for achieving a better quality crop, either in culms or in high quality edible shoots.
There are two indigenous species of bamboo in Ethiopia, Oxytenanthera abyssinica and
Yushania alpine. They can both be propagated by using rhizome offset, which is labor
intensive, or by using seeds that can be found from natural sources in Ethiopia, Sudan, and
other countries.

E4. NURSERY TECHNIQUES AND MANAGEMENT

Nursery Layout
Growing plants in a nursery becomes more efficient when the nursery is well organized in
straight rows and blocks that are separated by paths. Each block or section should be clearly
demarcated and small signboards on the ground should indicate the botanical name of the plants
in each location.

Figure E8 Bamboo nursery

Since different species of young bamboos are not easily identifiable or distinguishable from each
other, it is advisable to label or tag each and every plant. This obviously implies extra costs but it
reduces the risk of mixing up species in the nursery. It also facilitates the sales and distribution of
plants and allows planters to distinguish the young plants when they are eventually taken to the
field for planting.

Labeling
When labeling the plants, it is advisable to use a coding system that not only refers to the species,
but also to the provenance of the mother plant.

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Figure E9 Labeling

Separation of Seedlings
When propagating by seed, it is advisable to place the seedlings of a particular species in a
separate nursery block or location. Seedlings should be separated from plants of the same species
that were vegetatively propagated. The reason for this is that it is hard to tell if the seeds really are
of the species. Seed suppliers make mistakes and sometimes packets of seeds are marked
incorrectly. All precautions should therefore be taken to prevent mixing up plants and to allow for
a clear identification of plants in the nursery at any time.

Weeding
Weeding in the nursery is essential for the health and vigor of the young plants. Competition from
weeds should be minimized.

Shading
Whatever planting stock is used (seedlings, wildings, offsets, or cuttings) shade must initially be
provided to protect them from direct sunlight. The shade, mostly of thatch or any other material
could be removed during the onset of cool weather.

Figure E10 Shading

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Watering
Water is needed by young seedlings and cuttings in beds or polythene tubes. During cold weather,
watering may be done once per day. In the dry season, watering should be done twice a day. As a
rule, plants in the nursery should be watered regularly.

Treatments
After one month, it is recommended that sprouts from cuttings are treated with some effective
fungicide (e.g., Copper Sulphate) to avoid fungal attack. If necessary, farmyard manure may be
applied to increase the vigor of the sprouts.

Mass Production (Proliferation) of Seedlings

Growth of bamboo is supported by the development of a system of rhizomes. Establishment of
planting materials depend very much on how well the rhizome system of a planting material is
developed.
Development of the rhizome system starts early in seedlings and buried cuttings, and at some
stage in the nursery and can be separated into several individual shoots. Proliferation is the
method of separating developed system of rhizome in young nursery materials into many
individuals. Such individuals are transplanted into polyethylene tubes that give them ‘new’ vigour
of growth.
Where procurement of bamboo seed is difficult, available seedlings in the nursery are maintained
through proliferation (mass production) while still carrying out annual planting programmes.
Each seedling with sufficient stems can be cut down the middle and multiplied by 2 (Figure E11).
Cuttings are also proliferated through initial separation of sprouted and rooted nodes (Figure E12)
done by cutting at the middle. There are transplanted into separate containers and further
proliferation can then be undertaken in the same way as seedlings.

Figure E11 Seedling Division Figure E12 Separation of culm Cuttings

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E5. FIELD PLANTING AND ESTABLISHMENT

Selecting the Planting Site

Site selection for various species of bamboo is important in order to enhance management, field
operations and healthy growth. The selected area of planting should be one that is not prone to
grazing and fire. The planting area should be selected and demarcated early, preferably 2 – 3
months prior to the onset of rainfall in the year of planting. Bamboo prefers loamy and sandy
loamy soils, but what is more critical is good drainage since the crop cannot withstand water
logging. Sloping land is thus preferable.
Species such as Dendrocalamus strictus and Oxytenanthera abyssinica are draught resistance and
withstand areas having annual rainfall of less than 800 mm. For reasonably good growth most
bamboos require annual rainfall of more than 1000 mm.

Plantation Layout
It is important to plan the field layout so that harvesting and hauling of culms is facilitated when
the clumps have matured. Planning the field layout in north-south rows is advisable to have an
even distribution of sunlight in the plantation. Planting in lines and rows makes management of
the plantation easier. The direction of rows and lines should however be planned with full
consideration of the characteristics of the terrain. This is especially important when intercropping
is to be done in slopes or hillsides. When furrows are ploughed for cash crops between the
bamboos, they should be done across the slope, following the contour of the land, and never in an
uphill-downhill direction. Furrowing across the slope will prevent the water runoff and thereby
control erosion.
A well planned field layout is essential to facilitate the management and enhance the yield of a
bamboo plantation. Field layout should take into account the habit and size of the bamboos, such
that small species are spaced more closely and large species are afforded wider spaces. A spacing
of 4.5m x 4.5m to 5m x 5m may be sufficient for many bamboos. For larger species, spacing
should be widened and plants per hectare should be reduced, especially when the objective of the
plantation is to harvest bamboo timber. Spacing of up to 10 x 10m (100 clumps/ha) are suitable
for large bamboos ZLGHU VSDFLQJ ZLOO DOORZ WKH FOXPSV WR UHDFK WKHLU IXOO SRWHQWLDO
When determining the spacing of plants, it is advisable to provide extra space between rows. The
spacing of plants in-line may be reduced while the spacing between-lines can be increased. The
aim is to have easy access and mobility between rows of clumps so that felled culms can easily be
stacked and hauled to the farm gate.

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The following table (Table E1) shows spacing that may be considered for small, medium, to large
bamboos.
Table E1 Plant spacing for plantation

Plant spacing (m) and plants per hectare

In line Between Lines Plants Per hectare
4 5 500
4 6 417
5 6 333
5 7 286
6 7 238
6 8 208
7 8 179
7 9 159
8 9 139
8 10 125
9 10 111
10 10 100

If the main purpose of the plantation is to cultivate edible shoots, the spacing can be reduced
significantly. Since most of the new shoots will be harvested, only a few shoots are left to grow
into mature culms. A well maintained bamboo clump that is thinned down to about 15-20 culms
of various ages will vigorously direct the plant’s energy towards the production of new shoots.
Thinning the clump also implies that it will require less space than it otherwise would.

Site and Ground Preparation

The preparation of the plantation site should only begin after a plantation layout has been clearly
planned and defined.
The planting site must be cleared of bush, grasses and other unwanted vegetation. Clean
cultivation may also be carried out especially where intercropping of bamboo with other crops is
to be done.
After ground clearing, planting spots are dug at spacing suitable for the species to be planted, in
accordance with the plantation layout and design. The size of the planting holes will depend on
the type of planting material as well as on rainfall and climatic conditions of the planting site. As
a rule, larger and deeper planting holes are always better and allow for easier establishment of
newly planted bamboos. Usually holes of 60 cm diameter and 60 cm depth should be dug around
each stake in areas of medium to high rainfall. Well rooted seedlings or TC bamboos may be

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planted in small holes of 30 cm diameter and 30 cm depth. Wider planting holes of up to 1 meter
in diameter allow for improved micro-catchment and are preferred in areas where annual rainfall
is less than 1000 mm. In all cases the holes must be refilled with soil up to 10 cm below the
ground surface. Where necessary mix up to 2 kg phosphoric fertilizer or organic manure in the
top soil of each pit. Filling should be completed one month before the rainy season.

Field Planting
• Seedlings should be transported at the onset of the rainy season to ensure good survival.
The rains also keep the soil moist enough to provide them with enough water.
• Planting of container or potted transplants from the nursery should be done immediately
at the start of the rainy season.
• For offsets removed from the forest, planting must be done the same day with a
maximum delay of one night.
• When planting, the potting material (plastic or tin containers, polyethylene bags, etc.)
should be removed before placing the seedling in the planting hole.
• The rhizome portion of the offset should be placed 10-20 cm below the ground level and
covered with soil.
• After placing the plant (either seedling or offset) in the hole, cover with soil and always
lightly press the soil around the plant.

E6. PLANTATION MAINTENANCE AND HARVESTING

Proper maintenance and protection of the plantation is highly important. This involves replanting,
plant protection, weeding, general tending and sustainable harvesting of culms (bamboo stems).

Harvesting
The clumping habit enables the plant to regenerate naturally after harvesting: Harvesting of
bamboo is therefore through selection rather than clear felling.
The planted area should normally be ready for first harvesting in about six to eight years.
Thereafter, cutting of mature stems can be done at intervals of four or more years.
The cutting cycles and methods of extraction of stems from a bamboo clump entail an important
management system of the entire bamboo plantation. Success or failure of sustainability of crop
production will therefore depend on how best stem extractions are carried out.

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Cutting Cycles and Methods of Cutting

After the first cutting in a plantation, subsequent selective extraction of bamboo stems should be
done at intervals of 4 years. This cycle of cutting is considered suitable for a number of clumping
bamboo species.
Unless properly managed, clumping bamboos tend to become congested, resulting in
deterioration both in quality and in quantity. It is difficult to extract bamboo from congested
clumps. If left untended, clumps of some species become extremely congested.
Congestion should never be allowed to occur in a clump. Clump congestion decreases the
productivity of the clump and the quality of the bamboo culms.

Cutting Rules
The following bamboo cutting rules are to be followed for a well established bamboo area.
• Culms growing on the periphery of the clump should not be cut. Cutting should be
restricted to the oldest culms in the centre of the clump.
• All dead and dry culms should be cut and removed.
• All broken, live stems, less than 2.5 m in length, should be removed except in clumps
containing less than 10 culms. In the latter case, even shorter broken culms may be
retained for support of new culms.
• Heavily congested clumps may not be salvaged to productive state and should be clear-
felled.
• Current year’s and one-year old culms should never be cut unless in cases where they
are curved and twining around other culms or are infested by disease or insects.
• The number of older culms retained should not be less than the number of current
year’s culms.
• Rhizomes should not be dug out.
• In order to avoid future congestion, all clumps should be worked, even though they may
not produce usable or saleable material.
• Culms should be cut between 15 and 45 cm from the ground, but not below the first
prominent node above the ground.
• Cutting should be made with a sharp tool-bill-hook, a sharp panga or saw so that the
stump is not split.
• All cutting debris should be collected and removed away from the clump.
• Lopping of bamboos should be prohibited.

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• No cutting of culms should be done during the growing season, i.e. during the rains.
Culm cutting should be done only during the dry seasons.
• In case of sporadic or gregarious flowering, all flowered clumps which have shed their
seeds should be clear felled.
• The areas under bamboo should be strictly fire-protected.
It is necessary that sharp implements, are used in order to avoid splitting of stumps and the cut
culms. A long sharp knife or preferably a curved saw may be used

E7. POST-HARVEST TREATMENTS

Methods for Protecting Bamboo

Bamboo poles are susceptible to decay and attack by fungi or insects especially powder
post beetles. Such attacks give bamboo low natural durability. One way to extend the life
of bamboo under use is through preservation treatments. Processing and construction
methods may also minimize attack by fungi and insect.

Figure 6. 2 Bamboo Protection after harvesting

When bamboo culms have been preserved, and particularly when they will be used for construction or for
value added products, it is strongly advisable to store them in an elevated and covered area to protect them
so that their quality can be maintained.

Techniques used to increase the durability of bamboo include non-chemical and chemical
methods. The most useful and economical methods are listed below.

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Non-Chemical Methods

Clump curing: culms are cut at the bottom, but are left standing on the clump for some
time with branches and leaves still on. Because the assimilation of the leaves still goes
on, the starch content in the culm is reduced and as a result, the durability against
infestation by borers is increased. This treatment does not influence attack by termites or
fungi.

Smoking: culms are stored above fireplaces inside houses for some time so that the
smoke blackens the culm.
Due to heating, the starch within the stem cells may be destroyed. In Japan, the bamboo
materials are kept in a heating chamber at 120 -150° C for 20 minutes. The treatment is
effective against insect attacks.

White-washing: bamboo culms and bamboo mats for housing construction are often
painted with slaked lime (white wash). This delays water absorption, leading to a higher
resistance against fungi.
Plastering: cow dung is mixed either with lime or with mortar and plastered onto the
surface of bamboo. This is a common method used in the construction of bamboo houses.
Soaking in water: Freshly cut, green, culms are put into stagnant or running water or
mud for several weeks.
Subsequently, the bamboo is dried in shade. During the soaking period, starch is reduced
and the method therefore improves the resistance against borers which are usually
attracted by the high amount of starch in bamboo culms.

Simple construction method: In constructions using bamboo, the upright culms that
provide structural support should be elevated on stones, cement, or concrete blocks, and
never directly on the bare ground or soil. This will reduce the risk of rotting and insect
attack. Painting the culms with water repellent formulations helps to reduce mould.

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Chemical Preservation Methods

Chemical preservation methods of bamboo generally provide more effective protection

than non-chemical methods, but are not always economical. The following treatments are
used.

Fumigation: application of methyl bromide or some other chemical to bamboo for insect
control.

Steeping or sap displacement: green bamboo culms are allowed to stand vertically in a
container of preservative solution till adequate chemical is picked up. At times, the culm
may be freshly cut with branches and leaves on.

The open-tank treatment: culms prepared to size are soaked in a solution of a water
soluble preservative for several days. The solution gets into the culm by diffusion through
the ends and partly through the sides.
Where a big drum is not available-due to cost limitation, a trough in the ground can be
used as follows:
• Dig a pit measuring 4 to 5 m long, 60 cm wide and 1 m deep. Line the pit with
plastic sheet, holding it firm with posts or stones at the surface of the ground.
• This pit will serve as the container of the chemical solution and as the dipping
tank for the cut bamboo poles.
• The poles are left in the preservative for several days.
• It is always advisable for the workers to wear gloves, waterproof aprons, and
protective masks as precautionary measures.

Butt treatment: the bottom part of green bamboo or dried bamboo is immersed in a
container of preservative, for example, an old oil drum. The culms are left for about one
week. The open-tank and the butt methods are effective, economical and more popular.
Using these methods, 10% Copper sulphate solution extends the service life in the ground
extensively. For out-of-ground contact poles or strips, treatment with 10% boric acid will
give extended service life.

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