Table of content

INTRODUCTION
BACKGROUND

oils are recognized as essential nutrients in human diets.

Nutritionally, it is concentrated sources of energy (9
calories/gram); it is one of the five essential ingredients of
human diet and the others are protein, carbohydrates, minerals
and vitamins. in a balanced diet, the oils and fats requirement per
person per day is 35 g for vegetarians, 39 g for non-vegetarian
and 38 g for average diet. which provide essential fatty acids
which are the building blocks for the hormones needed to
regulate bodily systems; and are a carrier for the oil soluble
vitamins A, D, E, and K. and also enhance the foods we eat by
providing texture and mouth feel, imparting flavor, and
contributing to the feeling of satiety after eating. Oils are also
important functionally in the preparation of many food products.
It act as tenderizing agents, facilitate aeration, carry flavors and
colors, and provide a heating medium for food preparation. oils
are present naturally in many foods, such as meats, dairy
products, poultry, fish, and nuts, and in prepared foods, such as
baked goods, margarines, and dressings and sauces . oils are
constructed of building blocks called “triglycerides” resulting
from the combination of one unit of glycerol and three units of
fatty acids. It is insoluble in water but soluble in most organic
solvents. It have lower densities than water, and may have
consistencies at ambient temperature of solid, semisolid, or clear
liquid. When they are solid-appearing at a normal room
temperature, they are referred to as “fats,” and when they are
liquid at that temperature, they are called “oils. This profile
envisages the establishment of a plant for the production of
sesame seed oil with a capacity of blank tonnes per annum. The
plant will also produce blank tonnes of expeller cake per annum
that can be used for animal feed as by production. becouse The
demand o f edible and industrial vegetable oil in Ethiopia is
satisfied through imports. for example. During 2005-2008,
Ethiopia exported sesame, linseed, noug safflower, blackcumin,
and gomenzer at the same time, the amount of export decreased
and significant amount o f palm, sunflower, soybean, groundnut,
and olive oil was imported For example in 2008 import of all oil
products amounted 2,228,551,000 Birr (C1F value), while export
of sesame was only 1,954,544,000 Birr (FOB value), indicating
the huge trade deficit. Currently, Ethiopia meets 78% o f the
domestic oil demand through imports, largely of palm oil. This is
observed in every shop o f both rural and urban towns. The
government o f Ethiopia has also lifted the duty on palm oil to
lower the price. . Therefore, the local crushers and factories that
pay Value Added Tax (VAT) and other government duties could
not compete with palm oil and went out o f business. Many became palm
oil importers. And also Oilseeds are produced in all regions of Ethiopia,
mainly in Gojam, Gonder, Shewa, Arsi, Bale and Wellega (Getnet and
Nigussie, 1991). Ethiopia has a huge potential for production and export of
high-value specialty oilseeds. It is in the top live producing countries for
sesame seed, linseed, and noug (Wijnands el al. 2 0 0 7) In addition,
specialty seeds like safflower seed and castor beans are grown in Ethiopia.
Other oilseeds produced in Ethiopia include soybeans, cottonseed, and
rapeseed.
Statement of the problem
Most of edible oils are imported from foreign country .which fulfill the
characteristic of the oil that acceptable to consumer, In Ethiopia the edible
oil production is few in a number .(), All the world community need
highly edible oil for all and every food product preparation this mean the
consumption of oil is increase , Due to low quality of edible oil most of
the consumer affected or unmasked by different disease , From foreign
country there is import of high cholesterol content oil, Ethiopia has
emerged as one of the largest importer of edible oil in the world market
and more than 85 percent of domestic demand is met through imports ,
which is of great concern when international prices are increasing, Most of
Ethiopian agricultural product including oil plant product are vast
production but the progressive harnessing of the resources will result in
substantial improvement in output, Oil plant product is one of major
agricultural product of Ethiopia .
General objective
Establishing edible oil Extraction Company
Specific objective
 Production of low cholesterol and high quality edible oil with minimum cost
that cover for all community by using localy available raw material .
 For creating job for unemployment.(to create jobs on farms, oil processing
mills and to substitute imports of oil,
 This company offer significant employment opportunities for many
Ethiopians In production, cleaning , transportation , processing and export
businesses .
 Using effectively and efficiently local agricultural plant oil product (using
available raw material effectively and efficiently )
 Improving some extraction equipment of the plant
 For improving productivity , quality ,and marketing of oil seeds in Ethiopia
 To reduce exporting raw agricultural product but to export the processed and
final end oil .or to increase the export potential of the countries processed oil
product rather than exporting raw material.
 Ethiopia is among the top five leading oilseed producing countries of the
world. Next to coffee, oilseeds are the second largest export commodities
that earn hard currency for the country.
 Oil extraction company only need local raw material no need of dolar
($)(example brothers food complex due to shortage or lake of essence) there
is no work .
Literature review
According to the CSA (2013), sesame represents, on average, 32 percent
of the total cultivated area under oilseed production for the period 2005-
2012 (Figure 2), which represents 3 percent of the total cultivated area for
major crops.
Figure 2: Area Under Production by Oilseed Type in Ethiopia (average
2005-2012)

Source: CSA, 2013

Sesame is produced mainly in the northern and northwestern lowlands of

Ethiopia adjacent to the borders with Sudan and Eritrea. Some of the major
producing areas are found in and around the locations of Humera, Metema,
Benshungul Gumuz, Wollo and Wellega. The two most widely known
sesame varieties – Humera and Wollega – derive their names from the
areas where they are planted. The major competitive advantage of the
Wellega type is its high oil content. Planting is done in late June and
early July and harvesting is done from early October to mid-November.
About two-thirds of production comes from smallholder farmers on
holdings less than five hectares with the remainder coming from medium
to large-scale commercial farm.

Figure : Major Production Areas of Sesame in Ethiopia.

Source: Alemu and Menjerink, 2010

As average production statistics (2005-2012) obtained from CSA (2013)

depict, almost 37 percent of the country's total sesame seed production
comes from the Amhara regional state, with 30 percent coming from
Tigray and 16 percent from Oromia. However, for the stated period, the
highest average productivity for Tigray was about 9 quintal/hectare,
followed by Amhara region about 8 quintal/hectare.

the future, production is likely to expand as more land is cultivated in

sesame. In fact, according to National Sesame Sector Development
Strategy, the climate and geographies in some locations in the eastern half
and southern parts of the country in Afar, Somali, and SNNP regions are
conducive to growing sesame.

Figure : Suitable Areas for Sesame Cultivation in Ethiopia

Source: National Sesame Sector Development Strategy (2015-2019)

Average oil contents of different oilseeds

& oil bearing materials

Oil bearing Oil content(%)

material
Cotton seed 18-20
Safflower 30-35
Soy bean 35-45
palm 45-50
canola 45-50
Sesame seed 55-60
Seed Characteristics
In order to enable the best possible conditions for seed processing, storing
and transportation, information on their characteristics are needed. The
important required in design and development of processing equipment are
size, shape, bulk density, specific gravity, porosity, static coefficient of
friction, angle of repose, rheological properties etc.
Oil Moistur Length( Thick Size( Bulk Spec Coeffici Specific Porosity(
see e.c mm) ness mm) density ific ent of heat(cal/ %)
d mm() () gravi internal gc*)
ty friction
Se
sa
me

Composition of Oil and their Characteristics

Fats and oils are basically esters of glycerol and fatty acids, mosit of which have an
even number of carbon atoms. The fatty acids found in the oils may be either
saturated, i.e., each carbon atoms in the chain is linked by a single bond to other
carbon atoms or to hydrogen atoms or they may be unsaturated having one or more
carbon atoms in the chain joined by double bond.
The natural flavour and odour of oils are due to the presence of non-fatty matter.
Their colour is due to the presence of small amounts of fat, soluble pigments such
as cartoenoids and chlorophyll or some— times due to oxidation and
polymerisation products of the fatty acids.

Saturated fatty acid unsaturated fatty acids(%)

Oil seed Palmitic = 7-9 Oleic =48-49
Steric =4-5
Sesame Linoleic =35-47
seed

The oil also carry the essential fatty acids and fat soluble vitamins A, D
and K required by the human body. The oil taken up by the body serve
three purposes : (i) they are stored for future use as a reserve lood in
adipose tissues, the important depots being subcutaneous tissue, liver and
intra muscular connective tissues (ii) the fatty acids combine with proteins
in the formation of cellular protoplasm, cell membrane, etc., and (iii) the
fatty acids are oxidised immediately to carbon dioxide and water. The
energy, thus liberated is used to produce work ard maintain the body
temperature.The importance of poly—unsaturated fatty acids in the diet is
now well recognised. They are reported to possess the property of
lowering abnormally high chclestrol levels in blocd vessels, and are
recommended for patients with a high risk of coronory artery diseases.
Safflower, sunflower and sesamum seed oils are rich sources of
unsaturated fatty acids. Modern nutritionists therefore, recommend a diet
rich in vegetable oil in its natural form and low in animal fat while keeping
the total calories intake constant.
SESAME OIL SECTOR
The Sesame Sector of Ethiopia is dominated by raw Sesame Seed
exporters as opposed to processors. There are currently more than 190
entities with a license to export Sesame while there are only three that are
actively engaged in Processing. However, there are no organizations that
have engaged in Commercial production of Sesame Oil. Despite the
numerous health benefits of consuming Sesame oil, it has still not been
adopted into the local cuisine. Rather, the edible oil that is available in the
market includes Vegetable oil, Sunflower Oil, Palm Oil and others. As a
result, I deciede to work this project in the sector of processing the sesame
seed .

PRODUCT DESCRIPTION
Yields of sesame seed range from 250 to 1250 kg/ha, depending on
location and growing conditions. The main fatty acids of sesame oil are
oleic and linoleic acids. as I descoused in the above table However, it is
not the fatty acids which impart special characteristics to sesame oil. The
presence of sesamin, sesamolin, and sesamol in the oil help make the oil
highly resistant to oxidation. Its main edible use is as a substitute for olive
oil, as an extender for olive oil, or in high quality salad and cooking oils.
Sesame oil can be used in margarine and shortenings, but for these
products it is not competitive with other, cheaper vegetable oils. Sesame
Seed is one the oldest oilseeds known to man. There are a number of
health benefits that can be drawn from the oil extracted from Sesame
Seeds. Some of the benefits include lower blood glucose level; lowering
effects on blood pressure; lowering the level of Sodium in blood stream;
skin benefits from antioxidants in Sesame Oil.

PRICING

There is no commercial production of Sesame oil in Ethiopia. However,

there is a practice of extracting Sesame Oil in small amounts for home-use.
Recent market survey of Sesame Oil in international markets has shown
that Sesame Oil is available at a price of $ 8 – 16, and Sesame Oil Cake is
available in the local market at prices ranging between $21.79 and $23.08
per Quintal. The price for one liter locally manufactured edible oil in
Addis Ababa is Birr 50, while imported brands are sold at Birr 50. Taking
into account mark-ups by distributors and retailers the factory gate price
recommended for the new project is Birr /litre. Edible oil distribution is
becoming easy due to the use of tight and attractive packaging materials.
The envisaged project can appoint agents in the major market areas of the
country.
PLANT CAPACITY AND PRODUCTION PROGRAMME
PLANT CAPACITY

Based on the market study the annual processing capacity of the envisaged
plant is blank tones () of edible oil assuming that the plant covers blank %
of the market share of year 2030 (two year construction period and eight
years full capacity attainment period). Based on 300 working days and
single shift of 8 hours per day.
The company will be operating with a cleaning machine, roasting
machine, milling and pressing machine , filtering machine and filing
machine , and . The cleaning machine is able to clean blank tons () of
Sesame Seed per hour while a single oil press machine is able to press
blank kg of Sesame Seed per hour. The organization will be launching its
operation at blank % capacity which will increase to reach blank % in the
blank th Year. Based on the market study the annual processing capacity
of the envisaged plant is blank tones( lt.) of edible oil assuming that the
plant covers blank % of the market share of year blank (blank years
construction period and blank years full capacity attainment period),

Production Programme
At the initial stage of the production period, the plant would require some
years to penetrate into the market and develop production skill. Therefore,
in the first, second and third …… year of production, the capacity
utilization rate will be 70%, 85% and 95%, respectively. In the blank year
and thereafter, full capacity (100%) production shall be attained. Table
shows the production programme of the project.

Sr product production year

NO 1 2 3 4 5 6 7 8 9 10
1 Edible oil
2 Cake
3 Capacity
utilization

*The plant generates income by the sale of the expeller cake for animal
feed. By taking the price of Birr blank per ton of expeller cake, the
envisaged plant gets Birr ,,000 annually.

RAW MATERIALS
The principal raw material required for the production of Sesame Oil is
sesame seed. which are produced locally in different regions such as
Oromia, amhara, tgiray,wello, etc. The seed gives 55-60% oil, 50-55%
meal. All the other raw materials are also found locally.The raw material,
refining chemicals(caustic soda and bleaching earth ,furness) these
chemicals are used in small quantities and they are available in the local
market .sesame covered 2.92% (about 370,141.06 hectares)of the grain
crop area and 0.84% (about 2,559,034.30 quintals) of the grain production
and packing materials requirement of the envisaged plant is indicated in
Table . The total annual cost of raw and auxiliary materials is estimated to
be nBirr.

Sr raw & auxiliary unit of Qty. cost (000 birr)

N materials meas. F LC Total
o C
1 Sesame seed tonnes
2 Caustic soda kg
3 Bleaching earth tones
4 Barrel (200 lt)

Grand total

The drum number is calculated by assuming that the drum is recyclable

and 10% loss annually.
table : annual production sesame oil seed (metric tons)

Crop/Year 2017/18 2018/19 Year-to- %

Year Change
Variation
Sesame 390,000 415,000 25,000 6%
seed

In order to ensure the quality of the product is maintained while

maintaining a marketable status , the Sesame oil will be packed in sealed
clear plastic bottles.

UTILITIES
The major utilities required by the company project are electric power and
water. . The annual consumption and cost of utilities is indicated in Table.
The total annual cost of utilities is estimated at Birr .

Sr. Utility unit of Qty. Unit price cost (birr)

N measur
O e
1 Electric KWh
city
2 Water M3
 PRODUCTION PROCESS
As in any Sesame Processing line, the Sesame is primarily cleaned. The
cleaned Sesame is then roasted and moves on to oil presser.

Extracted Sesame Oil is liquid at room temperature and can be extracted

either through mechanical pressing and solvent extraction.
Edible oil technology can be grouped into two: mechanical pressing and
solvent extraction. Sometimes the latter compliments the former. For
oilseeds with high oil content such as sesame seed, first mechanical
pressing will be applied and over 85% of the oil will be extracted. The
remaining oil in the expeller cake will then be extracted with solvent. For
some other oilseed with low oil content, solvent extraction is generally
considered as the best alternative. However, the initial investment cost of
solvent extraction is much higher than mechanical pressing. In addition,
solvent extraction is more appropriate for large scale processing than small
scale edible oil plants. Therefore, in this study the mechanical pressing
technology has been selected.
Sesame seed oil production process, based on mechanical pressing
technology, can be grouped into three stages: seed preparation, pressing
and crude oil refining.
The seed requires undergoing a thorough cleaning process to remove sand,
stalk, plant debris and any other foreign matters by rotary or table sieve.
Usually, the screening process is 5-10 assisted by air aspiration unit. After
cleaning, the seeds have to be prepared for efficient oil recovery by
pressing. The stages involved are size reduction of the seeds by breaking
them and then conditioning the seeds by adjusting their moisture content
and temperature, while keeping the seeds hot (say 90-95ºc) for a period of
30-60 minute. Then the prepared seed shall be conveyed to the screw
pressing machine where it is pressed by the action of worm and outer
shell.
The crude oil so obtained from the pressing will be first clarified in a
settling tank and then shall be pumped through the filter press.The filtered
crude sesame seed oil will be pumped to the refinery where it shall pass
through three stages of refining: neutralization, bleaching and
deodorization. To reduce the level of free fatty acid (FFA) in the oil,
caustic soda will be mixed with the crude oil. The neutralized oil may have
trace of soap which is a by-product of the neutralization process.
Therefore, the oil will be washed with water. It will then be pumped to the
bleacher in which it will be mixed with bleaching earth to improve the
color of oil by the process called adsorption. The bleached oil, after being
filtered, will be pumped to the deodorizer to avoid substances which are
responsible for the odor of edible oil. In some very small plant the three
stages of refining crude oil shall be executed in a single vessel. The plant
requires a containment vessel for the collection and treatment of wastes to
be generated in the process.

ENVIRONMENTAL IMPACT
Generally, mechanical presses, has the advantage no danger of fire from
combustible solvent, and more controllable production process with
smaller number of skilled staff over solvent extraction process. As a result,
the hydraulic oil press machine, which has been selected by the envisioned
organization, will not emit pollutants which will be harmful to the
environment.

MACHINERY AND EQUIPMENT

The plant machinery and equipment required for the project is estimated to
cost $blank . This cost includes the cleaning machine and oil pressing
machines.
The list of machinery and equipment of the project is in table blank .
Sr. Description qty Cost (birr)
no LC FC TC
1 Seed cleaning unit
2 Dust blower （5600$
）
3 Cyclone
4 Hammer mill
5 Screw conveyor
6 Bucket elevator
7 Roller crusher
8 Screw press
9 Filter press
10 Holding tank (54300$)
11 Pumps (12900$_)
12 Neutralizer
13 Bleacher
14 Vacuum pump
15 Condenser
16 Deodorizing
17 Water treatment
18 Boiler(1332100$)
Total

LAND, BUILDINGS AND CIVIL WORKS

A small size food processing plant would require an area of about 6,000
m2. This small size processing plants of about 50 tons/day raw material
are usually built. which will be housing the Sesame Cleaning Plant,
Sesame Oil Press Machines, and the warehouse for the input (raw Sesame
Seed) and output (Sesame Oil).Land can be leased from the City
Administration, and the cost of leasing land in the outskirts of kemisse
zone is estimated to be $blank per m2. The total cost of leasing the land
for 50 years is $blank.

MANPOWER AND TRAINING REQUIREMENT

STAFFING
The total human resource required for the envisaged plant is blank
persons. The estimated annual salary requirement is anticipated to be
$blank . At time of processing machine installation, training will be
provided to operators and management team on how to properly operate
and maintain equipment.
Table : MANPOWER REQUIREMENT AND ANNUAL LABOUR COST

Sr.No Description Req.No Monthly salary () Annual salary

1 General manager
2 Secretary
3 Purchaser
4 Production and technic
head
5 Personnel
6 Sales man
7 Accountant
8 Cashier
9 Chemist
10 Electrician
11 Mechanic
12 Production supervisor
13 operators
14 Laborers
16 Store keeper
17 Security
 FINANCIAL ASSUMPTIONS
The financial model of the project is based on the following assumption :

Quantity( Year 1 Year Year 3 Year Year Year Year Year Year 9 Year
L) 2 4 5 6 7 8 10
Sesame
oil

Price
(birr)

Revenue
Sesame
oil

Quantity
(kg)
Animal
feed

Price
(birr)
Animal
feed

revenue
Animal
feed
 1. Blower capacity =750ft^3/minute
Pressure : atmospheric
Blower type =axial ,small,1atm,0.5atm vac
2.tank volume:= 20000 gallons
Pressure =atmospheric
Material carbon steel
Tank type =apl, cone roof, shop fab
2. Vacuum pump =flow rate 500 inlet cubic feet per minute
Material =cast iron
Atmosphericpressure dischatge
Flow should be between 350 and 2000 cfm
Vaccum pump type = blower , 1-stage liquid seal, medium

3. Boiler
Boiler type oil/gas fired, packge, 150 psi sat
Flowrate should be between 50000 and 200000lb/hr
Boiler capacity =100000lb/hr
Material :carbon steel