PROJECT PROPOSAL ON MODERN

INGTEGRATED CATTLE FATTING PROJECT

PROJECT LOCATION:- WEST GUJI ZONE

ABBAYA DISTRICTDIBICHA KEBELE

PROMOTER :- DEMISE TURI

PHONE 0930667014

SUBMITTED TO:- ABBAYA DISTRICT ADMINISTRATION

PREPARED BY Teshome Zewde

Phone 0922152421

April ,2025

ABBAYA,

ETHIOPIA

Prepared by Teshome Zewde Economy Consultants i

 I. Executive Summary
The country named Ethiopia is one of the largest in area coverage and population holdings
about 110 million. Ethiopia experienced wide altitudinal variations from 1000 to 3000 meter.
Ethiopia is a country located in East Africa bordered by Kenya in South direction, Somalia by
East Direction, Djibouti in the north east, Eritrea in north and Sudan in west and north
direction. There is also wide climatic variations like high rain fall areas in the central, western,
southern and south western pars of the country, though there is only two distinct seasons dry
and rainy seasons which is common to tropical counters of the of the world. To the country,
there are dry or arid areas in the northern eastern and eastern parts of the country. The country
is governed by Federal State System, where as president, prime minister and parliamentary
system is the ruling system
Agriculture is the main stay of Ethiopia economy, contribution 50% share in the gross
domestic product GDP. ABOUT 85% of population is engaged in agriculture about 75% of the
Ethiopia industry is engaged in processing of farm product (Yohanis 1991). From the total area
in the country, 69% is estimated to be suitable for agricultural purposes. Export crops such as
coffee, oilseed and pulses are also mostly rained, but industrial crops such as sugar cane, cotton
and fruit are irrigated. Other important irrigated crops include vegetables and fruit trees in
medium-and large –scale schemes and maize, wheat, vegetables, sweet potato and bananas I
small scale schemes under private and governmental farms. There is a marked value added in
irrigated agriculture. A case study carried out in 2001 estimated that average yields of cereals
under irrigation and rain fed condition conditions are 1.75 and 1.15tonnes per hectare
respectively. Ethiopia has an important opportunity in water led development, but it needs to
address critical challenges in the planning, design, delivery, and maintenance of its irrigation
systems if it is to capture its full potential. River basin master plan studies and related surveys
indicate a maximum irrigation potential of about 5.7 million hectare, but about 3.6 million
hectares commonly quoted.
Ethiopia is one of the east African countries with the diversified climatic conditions, natural
scenery and resource bases. Currently the country has a total population of about 110 million
and nearly 40 million inhabit at oromia regional state. Oromiya is one of the regional states of
Ethiopia with very fertile land, very conductive weather condition both for horticulture
production and animal husbandry. To day the world is becoming one village because of the
advent of the information technology and computer science. In line with this the inhabitable

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globalization movement exerting its pressure on all man kids livelihoods. Notwithstanding
these all Ethiopian as a sovereign nation, member of the UN, founder member of the former
OAU and now AU is ancient but least developed country.
Though the share of service and industry is growing in recent years, the Ethiopian economy
still remains heavily dependent on agriculture, in terms of share of GDP, export revenue and
employment. The agriculture sector, however suffers from frequent drought poor cultivation
and marketing practices. The Ethiopia government has so far taken a number of steps to deal
with these problems in its agriculture and rural development policy under the frame work of
agricultural development led industrialization strategy. The growth and transformation plan of
Ethiopia also underlines the importance of marked led agriculture. As stated in the plan
document, the agricultural strategy places major effort to support the intensification of
marketable farm products both for domestic and export markets by small and large farmers.
Fundamentals of the strategy include the shift to produce high value crops a special focus on
high potential area facilitating the commercialization of agriculture supporting the development
of large scale commercial agriculture where it is feasible GTP 2010. The Establishment of
Ethiopia Commodity Exchange is in line with the above mentioned policies with a view to
transform the age old traditional agricultural marketing in to a modern one. The Ethiopia
commodity exchange authority was also established with the responsibility of ensuring the
establishment of modern commodity exchange system that is fair transparent and efficient to
ascertain the protection of the interests of the different factors to the system and the public at
large. According to FDRE council of ministers has endorsed sesame and white pea beans
transaction regulation no 178/2010 which laid a legal ground for a new domestic trading of the
said commodities on the ECX trading plat form. Hence this commodity profile analysis of
sesame is aimed at revising the profile study conducted in 2007 to take account of recent trends
in to production system, the issues related to the supply, demand and marketing as well as the
changes in the legal frame work.
Ethiopia is known for its livestock resource potential but, the country has not been able to
benefit from the potentialities of its resource in general and from livestock resources in
particular. A total of 486 thousand live animals including livestock, camels, sheep and goats
were exported though formal trade channels to the neighboring and the middle eastern
countries. In the subsistence sector, farmers and pastoralists depend on small ruminants for
much of their livelihood, often to a greater extent than on livestock, because sheep and goats

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are generally owned by the poorer sectors of the community. Any intervention that improves
the productivity of sheep and goats is important in creating wealth and improving the standard
of living of resource poor farmers. The short generation interval of sheep and goats coupled
with high frequency of multiple births allow for rapid increases in animal numbers. This builds
financial capital and allows the sale of surplus animals for cash that can be used for other
agricultural enterprises, school fees, medical bills, etc. sheep and goats are among the major
economically important livestock in Ethiopia. There are about 26.3 million sheep 24 million
goats and 44 million cattle (IBC 2004) in the country playing an important role in the
livelihood of resource poor farmers. They provide their owners with a vast range of products
and services such as meat, milk, skin, hair, horns, bones , manure and urine for cash, security,
gifts, religious, rituals, and medicine etc.
Ethiopia is a developing country with an emerging liberalized market economic system
agriculture is characterized by production of primary food crops mainly for subsistence
purposes and it the mainstay of the economy accounting for about 50% of GDP. 85% of total
exports and 85% of total employment. The industrial sector produces mainly agro processed
goods example textile, garments and leather products contributing to about 12% of GDP and
15% export earnings.
The present economic policy of our country is hugely inviting the private sector to respond to
the government invitation, there by contributing their share to the development process. In line
with this the envisaged project is identified by the owner. The project is identified because of a
highly growing population of the country as a great potential market for modern and quality
affordable live animals.
This project proposal is prepared based on the existing natural, financial and human resources
with reference to its marketing situation and profitability. Therefore, this proposal has analyzed
the socio economic justifications, commercial feasibility and the financial variability of modern
integrated farm of both crops and livestock’s, which is planned to be established in oromia
region, west Guji zone Dibicha Keble on total land of 1.82 hectars with the total Capital
9,600,000 birr 8,000,000 (80%) coverd by bank loan and 1,600,000 birr 20% coverd by
owner equity while giving job opportunity 100 permanent and temporary.

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Chapter one
1. Introduction
Ethiopia is known for its livestock resource potential but, has not been able to benefit from the
potentialities of its resources in general and from livestock resources in particular. The
demographic indicator of livestock reveals that the country has considerable amount of
livestock and is the leading in live livestock population in Africa. According to CSA(2008) the
estimated livestock population kept by farmers in rural areas was about 44million cattele,27
million sheep,19 million goats 620,000 camels, 34.5 million chicken, 4.8 million beehives, 6.7
million equine and 40,0000 ton of annually harvestable fish.
The total number of sheep and goat in Ethiopians estimated to be nearly 48million (CSA,2008)
sheep and goats are widely adapted to different climates and are found in all production
systems. They also have lower feed requirements compared to livestock because of their small
body size. This allows easy integration of small ruminants into different farming systems.
Human population growth in Ethiopia is forcing the conversions of many former grazing areas
into croplands needed for increased food production. Raising large ruminants is becoming
increasingly difficult as a result of the ensuing lack of grazing area. land holdings in densely
populated areas are below0.5 ha. In such places, the importance of sheep and goats in fulfilling
the role once played by livestock for meat, milk and manure production is being increasingly
recognized. The increased demand for sheep and goat meat has also increased their importance
in lowland pastoral areas as a source of cash income, food security. Tec. The share of livestock
in GDP is about 18 and to over 30%to agriculture. More over livestock and livestock product
contribute 17-20% of foreing earning.
Similarly, during the same period (2001-2007) a total of 486 thousand live animals including
livestock, camels, sheep and goats were exported through formal trade channels to the
neighboring and the Middle Eastern countries. The annual average exported quality and growth
was respectively 69 thousand animals and 148 percent. Over period of 2003-2007 was a
steady live animal export growth from merely 10 thousands to 233 thousand animals per year
As compared to goat 19% and camels 11%livestock 67% are by far the largest number of live
animals that the country has been exporting mainly as result of inadequate beef fabrication
facilities. An increase in the volume of livestock export greatly impacts on the meat export
market. For instance, converting the number of live livestock 156,295 sheep and goats 44,322

Prepared by Teshome Zewde Economy Consultants 5

exported in 2007 is estimate at 20,318tons of beef and 443 tons of goat table 1 shows 2007
exports of livestock
Table 1. live animals export trend thousand heads year
Year Qt of exported live animals Growth
2001 4.92 -
2002 32.38 558.4
2003 10.4 67.9
2004 42.02 304.7
2005 103.9 147.6
2006 163.37 57.2
2007 233.3 42.8
Total 486.3 1,042.59
Average 69.47 148.94

Source computed from the data of the Ethiopia customs authority various years
Ethiopia is one of the east Africa countries with the diversified climatic conditions natural
scenery and resource bases. Currently the country has a total population of about 110 million
and 44 million inhabit at oromia regional state. Oromia is one of the regional states of Ethiopia
with a very fertile land, very conducive weather condition both for crop production and animal
husbandry. The government of Ethiopia has developed a suitable investment policy packages
and other sectorial reforms at federal and regional level to attract a huge private investment of
the wellbeing of the nation and is citizens as a whole.
When one starts to invest on a given area it is must to consider the existing conditions of the
country. From this point, this project studied the existing favorable condition as for cooperative
company and to exploit the existing potential of the agriculture sector in country, decided to
invest in the area of livestock fattening and breeding project. The farm and cattle livestock is
planned to produce more quality of crop production and cattle fattening were highly
competitive in domestic and foreign markets with environmentally friendly.
The cooperative must have to make internal control mechanisms and work out towards to cost
effective, update schedule, positive to environmental and best technologies in order to maintain
the supper quality of its product both at local and international markets. There should be good
relationship between the society around the project and the project by conducting regular

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meeting with local community to develop a strong relationship with them as a mechanism of
conflict resolution. The project should collaborate and support the stakeholder in development
endeavors undertaken around the project site. The livestock fattening project plant will process
and produce good quality affordable life animals and animal product from Ethiopia to other
country.
This Demise Turi Cattle Fatting planned to generate products which do no have impacts on
the environment. It will contribute to the delivery of Ethiopians sustainable development and
poverty reduction development of the country. For the last few years MoARD and the export
coordinating national committee have been exerting maximum efforts towards increasing both
the volume and value of Ethiopians meat export. However the volume of export has not been
not up to the expected growth level.
This livestock fattening and breeding farm will address the viability of the livestock fattening
and farm development to be established at Abbaya District. While the investment takes place
on areas with good infrastructure like road, water, electricity and security, they should be
fulfilled tor better expansion and its works. The project is clear in having great contribution of
profitable and has significant socio economic benefits. It is to be noted that the implementation
of this project is mean to introduce livestock farm and a health nutritious food items to meet
local and international demand, quality crop farm provide job opportunity for the society those
who are working around the project to enhance agricultural production through creation of
market facilities to farm and supply livestock farms include rational use of potentially available
resources and plays great contribution for the economic growth of the country including foreing
country.
1.1. The Livestock Status
The total number of sheep and goats in Ethiopia is estimated to be nearly 49 million CSA,2008.
Sheep and goats are widely adapted to different climates and are found in all production
systems. They also have lower feed requirement compared to livestock because of their small
body size. This allows easy integration of small ruminants in to different farming systems.
Human population growth in Ethiopia is forcing the conversion of many former grazing areas
in to cropland needed for increasing food production. Raising large ruminants is becoming
increasing difficult as a result of the ensuing lack of grazing areas. Land holdings in densely
populated areas are below 0.5 ha. In such places, the importance of sheep and goats in fulfilling
the role once played by livestock for meat, milk and manure production is being increasingly

7
recognized. The increased demand for sheep and goat meat has also increased their importance
in low pastoral areas as a source of cash income, food security, etc. the share of livestock in
GDP is about 18% and to over 30% to agriculture. More over livestock and livestock product
contribute 20% foreign currency.
Ethiopia has large livestock resource, which puts the country fist in Africa and tenth in the
world. Livestock production accounts for about on third of agricultural GDP and 15%of the
total GDP. The livestock resource of the country are estimated to consist of about 28.8 million
livestock, 20.7 million sheep, 147 million goats, 7million equine, 1 million camels and 58
million of poultry. In Ethiopia, livestock population is an important economic component in the
farming system. Income derived from the sector has been small as compared to the livestock
number. The productivity measured in terms of meat, milk, egg, and other product was very
low. The major technical constraints associated with these are nutrition, health and low genetic
quality of most indigenous breeds. Other constrains to development of the livestock sub sector
include lack of infrastructure and services lack of proper livestock meat processing facilities,
and recurrent drought. Livestock trading is almost entirely traditional with minimum
involvement of private investors. High proportion of livestock sheep and goat sold to local
market for so the number of animal leaving the country through illegal trades to neighboring
countries is also high.
Objectives
Objective of the study is to ensure that the proposed farm and livestock project is
environmentally sound and contributes to the socio-economic development of the regional state
and local communities. The project is promoted by Demise Turi Cattle Fatting
Expected beneficiaries
Permanent
 National economy through increased of taxation
 Local and regional areas through increased services
 Full time employees taken from the local and regional areas including manager up
administration staff
Temporary
 Farming food of cattle
 Trading companies through the purchase of equipment such as technology material and
equipment form local and outside of Abbaya District

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Vision
Demise Turi Cattle Fatting vision is to been a renewed brand name in the heart of West Guji
Zone. Being renowned means providing unparalleled quality, cleanliness, services and value
which satisfies national economy by farm productive and livelihood
Mission statement
Demise Turi Cattle Fatting create Besides creating job opportunity right from the time of
operation to given services, the project treats employees’ welfare seriously and provides
training and rewards for those who join the project which encourage long term, satisfying
growth employment. The project believes in suitability of the agriculture development business
and adopts fair trade policy as a key to drive its business forward.
Goal
Demise Turi Cattle Fatting aims to prove all its services at reasonable price, the price of
service according to ministry of trade and economic development. Besides creating job
opportunity right form licensing to service, employees welfare seriously and provides training
and rewards for those who join the project which encourages long term, satisfying, growth
employment. The planned project premise will be designed aesthetical to create an environment
to encourage customers.
Generally, it’s our strong conviction that this planned project would benefit the owner to the
project and local community in terms of transferring modern technologies and create job
opportunities for skilled and unskilled citizens. It also serves country in generating income to
the government by the form of taxation. Hence, its advantage can be expressed technically,.
1.2. Company Description
A country look into agriculture development in general livestock farm in particular reveal that
activities are found at a very low level and the livestock industry is at a start up life cycle. More
of the existing livestock industries are concentrated around centeral part of the country but here
to start around West Guji zone livestock development and marketing have not been able to
generate positive results to the people engaged in livestock rearing. As a result the country
livestock and crop farm resources are being unwisely used. This project proposal is prepared
based on the existing natural, financial and human resources with reference to its marketing
situation and profitability.
Therefore, this proposal has analyzed the socio economic justifications, commercial feasibility
and the financial variability of modern integrated farm of both crops and livestock’s, which is

9
planned to be established in oromia region, west Guji zone Dibicha Keble on total land of 1.82
hectars with the total Capital 9,600,000birr 8,000,000(80%)coverd by bank loan and
1,600,000birr 20% coverd by owner equity while giving job opportunity 100 permanent and
temporary.
The owner of the project has been undertaking different business operation for many years.
While working in their existing business they are doing it in the best way with maximum
potential and profit. They has been working with different citizens of different nations. The
work experience what they have been help them to run this project in a simple way in west Guji
zone Abbaya District Dibicha Kebele
This integrated agricultural farm development was chosen to be established in Abbaya
Districtand its surrounding areas by creating a differentiated experience capitalizing on
personal services. The proposed project will have total area 15 ha designed to run a business,
which will in turn plays significant role towards solving shortage crop farm and livestock in
country.
When we look at Abbaya District administration historical background, the Abbaya
administration is ranked among that have the fastest growing economy like other Oromia
region. It is one of the most attractive and has fertile ground for future promising growth of
crop farm and livestock. The major plans of the project are to provide high quality class to
satisfy the interest of customers and to generate foreign currency. Base on subject matter
specialist has carried out the type and size of the agricultural production, which is already
determined by the site conceptual planning and preliminary analysis.
1.3. Project Rationale
Abbaya District market study we have tried to identity the gaps between demand and supply of
the related production in the Abbaya administration. Even if this Abbaya District
administration is in its emerging stage of development these project this is the first in kind in
the Abbaya District administration are feasible and would be a model development in
promoting and attracting different type of crop and farm development in order to respond to the
create environment green economy the Abbaya District administration is need of major, basic
and feasible green Economy projects to be developed.
The existing promising investment opportunities, the demands of production needs along with
relatively sound investment support made by the government in such kinds of feasible projects,
compelled the project owner to initiate the multipurpose oriented business project to be

10
established. Despite the promising business opportunities of the Abbaya District administration,
on such kinds of modern integrated agricultural development, facilities and business station in
the Abbaya District administration to accommodate the existing demand of these integrated
farm in the Abbaya District administration and the surrounding areas. The mismatch between
the demand for and supply of such kind of agriculture in easily observed in the West Guji Zone
and around other zone like Abbaya District administration.
Therefore, the existing shortage or absence in the supply of these production, along with its
commercial and administrative access, better location and infrastructure access, escalating trend
of green economy and business activities, thus it is with such reason that this project is
identified and proposed and assumed to be more profitable.
In general, the country’s decentralized state based economy; privatized and free market
economy good governance creates a favorable environment for the development of investment
for private and cooperative investors.
1.4. The Significance of the Project

The envisaged project is believed to add to the economic development of the West Guji Zone
and Abbaya District administration, district and zone specifically and country at large with
following ways
I. Source Of Revenue
According to federal democratic of Ethiopia’ policy, the government collects different forms of
taxes from different business organizations and individuals. Among the different forms of
taxes, business income taxes, payroll income tax and VAT are collected from undertaking
business activities. Therefore, this business will serve as sources of revenue for the Abbaya
District administration as well as for the region and nation in similar ways.
II. Employment Opportunity
It’s known that unemployment is the common problems that most of developing countries’ are
facing. So, the current objective of the government is working on tackling the problem of
unemployment and fostering the development process either through creating self-employment
or employment in other organization. Hence, this project will hire 30 in individuals in
permanent employee and more than 70 individual in contract.
III. Sources of social service

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In addition to serving as a source of employment and income for the region the project renders
social for different group of people. Hence, it also provide the following services,
A, serve as a source of mental satisfaction for the different exporters
B, since, the center encompasses different recreational areas; it will divert the attention of the
users from different evil deeds.
C, it deemed to minimize the demand for agricultural production and other bundles of
production in the area.
Furthermore, it services as the pilot experience and ground for other investor to enter in to such
kinds of green economy development. It also contributes on the efforts made on as a character
given building for physical development pattern of the Abbaya District administration scope.
1.5. Project Location
The project area is found at a distance of 368 km from the capital city of Ethiopia Addis the
above identified location of the project is well attracted site area for influencing and satisfying
both the customer and the owner of the project due to its access to service seeking population.
Thus, the owner of the project identified an appropriate area for the intended project. Beside
these, the realization of the project has no negative impact on the lives of its surrounding
population except promoting economic development to combat local povertyThe above
identified location of the project is well attractive area for influencing and satisfying both the
customer and the owner of the project due to its access to service seeking population. Beside
these, the realization of the project has no negative impact on the lives of its surrounding
population except promoting economic development to combat locate poverty.

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 1.6. Physical Feature of the Project Area
1.6.1. Topography Of The Project Area

The geographical information of the project area shows that the location of the site falls within
a flat and suitable topography for proposed project. The project area does not expose for
flooding and others natural disasters. Form practical point of view, the area is very suitable
cattle fatting and undertake the activities mentioned in this document
1.6.2. Agro Ecology

The Argo- ecology of the proposed project area can be characterized by midland type of
climate. The altitude of the area of the Abbaya District 1600-1900 sl. The range of altitude,
agro-ecology, temperature and the amount of rainfall distribution registered in and around the
project area is suitable particularly for intended.
1.6.3. Rainfall Pattern
concerning rainfall distribution, the proposes project area is characterized by bi-modal type
which begins usually from February to April continues up to June to September distributed in a
uniform manner, and is suitable for most of agricultural production. The annual rainfall is
mostly measured from 120mm-800mm in most of district area and specifically in the project
local.
1.6.4. Temperature
Temperature is the most important factor as rainfall for all living things. The mean annual
temperature of the district and the project area is ranging between 18 oc-30oc. therefore it is
favorable for this planned project
1.6.5. Altitude
The average altitude of the proposed project district is measured from1600m – 1800m above
sea level. However, the average altitude of the project area is ranging from 1650-1900 above
sea level. Therefore it is the most favorable for the proposed project
2. The Market Study
There are several factors, which affect the demand of standardized integrated agricultural
development Of these sectors, the most important to have influence are population growth and
the level of income. The currently expanding agricultural led industrial expanding is one

13
In general, one of the fastest growing of Ethiopian economic level the market demand and
supply gap for crop and livestock in Abbaya is not clearly understand, there is wider gap for
such demand and supply as many merchants, organizations are flouring to the Abbaya District
administration every day, from prior business experiences, the demand of crop and livestock in
Ethiopia is very high and at the same time demand and supply gap is very wide
2.1. The demand-supply gap
Abbaya District administration is a major business center and commercial route that attracts
thousands of business traveler’s merchant. These are also the most important groups of
potential customers that include both the local and foreign merchants and the modern business
community who choose livestock and crop that range from economic to high class standards.
These groups would also choose a healthy and comfortable productions that combines a more
traditional type with that of modern.
The project will solve the serious demand problem in the regional and national. Over the last
decades, there has been a significant growth in the number of local and international traders
across the country. This increase is mainly associated with the stimulation of economic activist
and partly due to an increase in the flow of international and local traders in to the Abbaya
District administration.
Since, Abbaya District administration is an important commercial center in west Guji Zone, in
addition, there is a significant increase in business activities and hence increasing the number
of traders to the Abbaya District administration. Even though there is a lack of quantitative
estimate that depict the actual demand and the annual growth rate crop and livestock facilities
and green commercial facilities are scarce in the District
So far in the Abbaya District, there is no development of such kind standard modern
agricultural integrated farm and it is the first of its kind in the Abbaya District and will promote
other investors from different region of Ethiopia and the surrounding areas. As a result, there is
large gap between the developed and that of the supply for modern integrated farm production,
hence this project would not face any problem of demand scarcity for it business center and it
would provide good service to customer and currency exchange
Table 3. table number of livestock in District
Livestock 2014 2015 2016 2017
Cattle 72990 87490 90889 91339
Goat 50000 60080 40025 49039

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 Sheep 30000 33500 35212 36211
Mule 220 241 121
Donkey 840 900 842 873
Poultry 4535 5655 33115 30335

Source:- Abbaya woreda Agriculture Office

Table 3:- Types of livestock disease and treatments from 2014-2017
Types of treatment 2014 2015 2016 2017
Trypanso miasis 495 518 5841 1073
Internal parasite 921 964 905 1209
External parasite 380 376 306 550

Source Abbaya woreda agricultural and ruala office 2017

2.2. Target customer
The target customers of this envisaged project include
1. Foreign merchant
2. National level merchant
3. Exporters and supplier
4. business organization

5. government organization
6. non governmental organization
2.3. Marketing Promotion and Strategy
This project is design to proved quality production in all direction and attracts customers in a
considerable and sustainable manner. Due emphasis must be place on improving quality of
production and facilities. The major marketing strategy to promoter the project and gain
considerable market share include
 advertising services and facilities in publicized place
 promote in association to the key location and nearly business
 Working on public relations to reach and influence key personal and organization with a
capacity of making decision.

15
  Keeping the quality of its production and service facilities and consistently improving
with changing situations.
2.4. Competition
This project is planned to be competent in all directions, both in price and non-price base
competition. In terms of price allocation, it’s planned to allocate reasonable price in all service
in order to attract a number of foreigner merchant and maximize the number of beneficiaries.
Moreover there are different competition that will compete with the project either directly of
indirectly.
The Project Facilities and Service Plan
This integrated agricultural farm project is aimed to provide high standard product for all
beneficiaries equally. It also has been planned to develop foreigners exchange and develop the
infrastructure and facilities what would viable to meet the requirements to an international
standard business center. The owner also has planned to expand the current activities based on
demand of customers and its market value gradually.
Since the project is planned to be engaged in multipurpose service the main sources of its
annual revenue would be from the sale of production
2.5. land use plan
The total land required for the envisage project is estimated to be 1.82 hectare the total area
for the farm site of this proposed site
Table 4 land use plan
Description Unit Area required
Land Livestock development Hectars .05
Office and store hectars 0.01
Employees house 0.1
Cattle food production 1.12
Total hectares 1.82

2.6. Machinery and Equipment

In this profile, it is assumed that the envisaged integrated agricultural farm will handle the
construction office works by out- sourcing competent construction contractors, as per the
design made by the investigated enterprise, within of Abbaya District administration. The total
cost of machinery and equipment are listed cost of production

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 3. utilities
A number of utilities would be put in place in order to ensure smooth functioning of the project.
The utilities include
 Water supply
 Supplementary electricity supply
 Drainage facility
 Facility of network
 Facility of road

Chapter 2
2.1. Organizational Structure
The organizational structure should be in a way that the company able to achieve its objectives
as well as the satisfaction of standard requirement. In addition to this, the structure should fit
the dynamics of all organization ranging from small business to large tenants.
2.2. Organizational Structure
The organizational structure of the project is designed by including all the necessary personnel
under the right division. At the top of the organization structure, there will be manager with the
responsibility of supervising the overall activity in industry. Depending up on the nature of the
center and the amount of work to be performed, there exist auxiliary units under the general
manager

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 owner
General manager
HRM
AccoutanT
finance and marketing
Gaurd
techinacial developer
farmacyic proffesional
quality conctrol

Fig: organizational structure

As clearly indicated in the organization structure, the center organization has one genera
manage and two main sections. Under general manager there are the, marketing department and
human resource department. Under human resource department there are four sections and
under marketing department there is one section
A, General Manager
He/she will plan, organize, direct and quality control the all over activity of the farm production
and human resource service
B, she/he will devise policies and strategies that will enable the center to be profitable
C, she/he, will incorporate modern technological innovation that will facilitate the service
delivery of the farm land to increases customer’s satisfaction
B, Marketing department
1. Will handle the overall marketing activities of the organization which include planning,
organizing, directing, and controlling
2. Will develop the marketing strategy for future production supply
3. Will develop effective customer handling strategy
4. Execute the promotion methods
C, Human Resource department

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Will manage all human resources activity with matching work and allocate at the right place, to
manage account, cashier, guard and waiter.
D The shared service department
The general service of the project encompasses the following activities
 Will manage the human resource services of the project
 The information technology service of the project
 The logistic service of all the project
 The security service and devise strategies of controlling against fraud and
damage
Table 5 cost of human power per year
No Description Number Monthly Annual
1 General manager 1 6000 72,000
2 Accountant 1 5000 60,000
3 Animal Science 1 6000 72,000
4 Animal care 1 2500 30,000
5 Store keeper 1 2200 26,400
6 Marketing 1 5500 66,000
7 Cleaner 2 1000 36,000
8 General manager 1 28200 362,400

Chapter 3
3. Challenges, opportunity and strategy
3.1. Challenges
The livestock and crop production management is mainly base on extensive grazing of
communal grazing lands and arable lands. Animals grazing communal lands are believed to
perform poorly growth rate which is a reflection of nutrition health and breeding related
problems. So having cattle fattening at a given feedlot in intensive way is major advantageous
than the extensive one
Diseases and disease causing agents cause heavy losses through deaths and reduced
productivity. It is known that livestock productivity is highly affected by poor genetic makeup
on most animals in country. Use range land is hampered by seasonal variation of quality and
quantity of forage and water and it can expose the animals for different diseases. Getting credit

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from credit associations by farmers in country is a major challenge risks associated with agri
business coupled with tenure system the use of land as collateral. In case of investors some of
the challenges
 Land ownership that is communal is a hindrance to investment
 Low funding levels in the considering the contributing of the sub sector to county
economy
 Unfavorable environment to attract investors being harsh climatic conditions, recurring
droughts, dilapidated roads network and poor infrastructure
 Insecurity airs in from banditry and livestock rustling.
 Inadequate supply of feeds to sustain processing of livestock production
3.2. Opportunity
In the dergue regime the investment environment has been radically changed to encourage the
growth and development of the country private sector. According over the past sixteen years a
number of favorable measures has been taken and laid the foundation for conductive
investment. In this regards, realizing the importance of promoting both local and foreign
investment participation for accelerated socio economic development of the country, the
government has issued a number of investment proclamation and regulations. The investment
proclamation and regulations issued include proclamation no 373/2003 and regulation84/2003
to amend proclamation no 280/2002. These investment proclamation provide incentives for the
investment activities and activities restricted to local investor. For the purpose of providing
incentives investment activity has been divided into pioneer and promoted investment
activities, the project under discussion may probably fail under promoted investment activates.
All allowed investment activity are allowed income tax exemption up to three years depending
on their location.
According to the council of ministers regulations join 84/2003 , providing investment
incentives, investment which exports above 50% of their production or supplies at least 75%
product to exporters are allowed and income tax exemption for 3 years they can get VAT
exemption tax rebate on imported inputs.
The project under study is a cattle fatting project where its products are going to be mainly for
export. Hence the project will be entitled for a tax exemption from import duty, duty drawback
on import of raw materials, exemption of income tax up to 3 years and loss carry for ward up to
2.5 years after the tax exemption period lapse.

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Other common opportunities are.
 Availability of recruited livestock
 Existing of livestock market with in the country a abroad
 Ongoing disease and pest control measures and programmers
 There is political good will peace building initiatives, government and community
security apparatus
 Good weather condition for cultivating crop.
3.3. Strategies
 Identification of the age and size of livestock for fatting
 Strengthen peace building initiatives, improve security coverage in the area of the
investment site
 Develop country based livestock and crop market data bade and utilized existing
production marketing information
 Developing marketing information
Chapter 4
4. Financial Requirement and Analysis
The financial resource is a prime resource for undertaking any activities. Hence, for
implementing this integrated farm total capital 9,600,000ETB is required. Out of which
1,600,000(20%) will covered by the owner of project while the rest birr 8,000,000(80%) ETB
will be covered through loan from bank at the prevailing interest rate. Therefore, the said
amount of finance is needed for undertaking the follow
6.1. Fixed Investment
Table 1:- land and building construction
S/N Description of work Total cost in birr
1 Construction of fence 1800m 3m high 1,350,000

2 Site development 230,100

Total 1,580,000

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 Table 4 Office equipment
SN Description Measu Quanti Unit cost in birr Total cost in
rement ty birr
1 Managerial table Unit 1 3500 3500
2 Managerial chair Unit 1 2500 2500
3 Office chair and table Unit 2 1500 1500
4 Secretarial chair with table Unit 1 1500 1500
5 Computer with printer Unit 1 15,000 15,000
6 Shelf Unit 1 2000 2000
7 File folder Pack 1 600 600
8 Guest chair Unit 3 1000 3000
10 Fax and telephone machine Unit 1 3500 3500
Total 33,100

Table 5 Annual salary expense for permanent employer

No Description Number Monthly Annual
1 General manager 1 6000 72,000
2 Accountant 1 5000 60,000
3 Animal Science 1 6000 72,000
4 Animal care 1 2500 30,000
5 Store keeper 1 2200 26,400
6 Marketing 1 5500 66,000
7 Cleaner 2 1000 36,000
General manager 1 28200 362,400

Operation cost plan to harvesting

Purchasing of raw material and animal
Year Unit Price

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Capacity Lump sum Total price
Cattle in four quarter 120*40,000 4,800,000
Goat in four quarter 100*5000 500,000
Sheep in four quarter 100*4500 450,000
Total 5,750,000
Molasess and fagulo Lump sum 1,352,313
Total cost of purchasing material 7,102,313

Table 6 Operational cost plan

SN List of item Annual cost in birr Total cost
Stationary 7000 7000
Promotional cost 8000 8000
Sanitation expense 18,000 18,000
Uniform 2000 2000
Water consumption 20000 20000
Electric consumption 97,000 97,000
Fuel consumption 57,000 57,000

Telephone and internet 3,000 3,000

Repair expense 81,000 81,000
Salary 362400
Miscellaneous expense 133,100
Total 678,500

Table 8 summary of total initial investment cost

SN Description Amount in birr
1 Land divert and building construction 1,580,000
3 Office equipment 33,100
Total fixed investment cost 1,613,100
7 Operation expense purchasing of material and cattle 5,750,000
sheep and goat

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 Molases and Fagulo 1,352,313
Common operational cost 678,500

8 Pre service expense 20,000

Operational cost 7,800,813
9 Total working capital J9,413,913
Contingency 186,087
Total initial investment capital 9.600,000
Grand total 9.600,000
The table 10 shows source initial investment capital budget
No source initial investment capital budget Equity/loan Total amount
1 Owner equity 20% 1,600,000
2 Bank loan 80% 8,000,000
Total initial capital budget 100 9,600,000

8, Revenue For First Fiscal Year

Description Unit Quantity Unit Price Total price

Cattle in four quarter No. 120 88,000 10,560,000
Goat in four quarter No. 100 12000 1,200,000
Sheep in four quarter No. 100 11,550 1,1550,00
Total sales 11,760,000

Financial analysis
The financial analysis of the integrated agricultural farm development project is based on the
data presented in the previous chapters and the following assumptions:-
Construction period 1year
Source of finance 20 % equity
Equity 80 % loan

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 Tax holidays 3 years
Bank interest 16.5 %
Discount cash flow 8.5%
Accounts receivable 30 days
Raw material local 30 days]
Work in progress 90 days
Finished products 30 days
Cash in hand 5 days
Accounts payable 30 days

Mr. Desalegn Samu’el

Projected Balance Sheet
For the Coming 2025/26
Particular Amount
Current Asset
Cash on bank 1,600,000
Cash on hand 50,000
Inventery 2,736,950
Total current asset 4,386,900
Fixed asset
Residential House 2,500,000
Construction 1,580,000
Office equipment 33100
Total 4,113,100
Total fixed asset 8,500,000
Liability
Bank loan 8,000,000
Total liability 8,000,000
Capital
Owner equity 500,000
Total capital 500,000
Liability and capital 8,500,000

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 4.2 project profit and loss statements for the project ending.

Year 1
Income from Selling Cattle 11,760,000
Cattle purchasing cost 5,750,000
Gross profit 6,010,000
Less total over head and administrative cost 3,039,813
Income Before tax 3,970,187 , Income or loss
Less Profit tax 1,191,056 Regarding profit and loss
Net profit 2,779,131 statement, starting from
first year of the project
operation, the project is expected to generate a reasonable amount of net profit for the owner
throughout its life period. Profit and loss statement shows that the project will generate net
profit of ETB birr 2,779,131 first year and increase to ETB 5,640,3000 starting from the fourth
year of the project life and hence it is found to be profitable.
5, Environmental Impact of the Project
The project activities was determined by identifying the environmental aspects and then under
an environmental risk assessment to determine the significant environment aspects. The
environmental impact assessment has include all phases of the project namely construction
phase and operational phase
Positive impact
 Generation of employment opportunity
 Source income for the government through business income tax
 Being exemplary for other investors who want to engage in the same business line
ECONOMIC BENEFITS
The project can create employment for 100 persons. In addition to supply of the domestic
needs, the project will generate 1,191,056 Birr per annum in terms of tax revenue. The
establishment of such coffee processing will have a foreign exchange saving effect to the
country by substituting the current imports.
Project Implication Schedule

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The project’s implementation is expected to take 12 months. The major activities include bank
loan processing and coffee preparing, cleaning the area around the site, procurement of
equipment and start rendering service.

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Prepared by Teshome Zewde Economy Consultants 28
Prepared by Teshome Zewde Economy Consultants 29
,

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