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Assorted Vegetable Production Farms

Assorted Vegetable Production Farms

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Published by big john
vegetable production
vegetable production

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Published by: big john on Jun 06, 2013
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06/06/2013

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Investment Office ANRS
Project Profile on the AssortedVegetable Production Farms
Development StudiesAssociates (DSA)
October 2008Addis Ababa
 
Table of Contents
 
1.Executive Summary
This project profile deals with the establishment of an assorted vegetable production farms inAmhara National Regional State. The following presents the main findings of the studyDemand projection divulges that the domestic demand for vegetable products is substantial andis increasing with time. Accordingly, the planned plantation is set to produce 450 quintals of various types of vegetables. The total investment cost of the project including working capital isestimated at Birr 621,349.01 and creates job opportunities for 58 citizens.The financial result indicates that the project will generate profit beginning from the first year of operation. Moreover, the project will break even at 63.25% of capacity utilization and it will payback fully the initial investment less working capital in three years. The result further showthat the calculated IRR of the project is 26.70% and the NPV discounted at annual rate of 18% isBirr 183,953.In addition to this, the proposed project possesses wide range of economic and social benefitssuch as increasing the level of investment, tax revenue, employment creation and better publichealth and nutrition, and modernization and commercialization of agriculture.Generally’ the project is technically feasible, financially and commercially viable as well associally and economically acceptable. Hence the project is worth implementing.
2.Product Description and Application
Horticulture coves a wide range of products which can be grouped into vegetables, herbs,mushroom and flowers. The Amhara region has great potential and suitable natural resources for the production of these groups of horticultural crops. Infact this project refers to only assortedvegetable production which includes cabbages, lettuce, Tomato, Beans, Green pepper, asparagus,Cauliflower, Broccoli, Carrot, Beetroots, Spinach, and Paprika etc. These products can besupplied as green and fresh, chilled or frozen and packed depending on the market location and3

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