KEBEBUSH DAIRY DEVELOPMENT PLC

Prepared by: Abera Feyissa

 Table of Contents

Content page

Project Summary…………………………………………………………….…………..……4

Background…………………………………………………………………..………...…..……6

1. Project area………………………………………………………………….……….………7
Location and size……………………………………..…..…………….………7
Climate and topography………………………….…………………….……7
Soils and pasture……………………………………………..………….….…7
Water resource………………………………………………………..…………8
Disease condition………………………………………………….…..….……8
2. The project……………………………………………………………..………………...…9
Objectives……………………………………………….……….………….……..9
Duration and ownership…………………………………….….……..……9
Outputs………………………………………………………….………...…..……9
Beneficiaries………………………………………………………...….………10
Details and strategies……………………………….……….……….……10
Input collection…………………………………………….……….….….………10
Feeding…………………………………………………………………….……………11
Milking…………………………………………………………………….….…………12
Breeding………………………………………………………………….…….………12
Fencing, Sheltering and guarding……………………….………….……12
3. Product marketing……………………………………………………………..….……15
4. Organization and management………………………..………………….……15
5. Herd projection…………………………………………………………….…….………15
6. Financial study………………………………………………………………..….………16
Investment costs………………………………………..………….…………16
Operating costs…………………………………………..……….……………16
Feeds and feed costs……………………………………….…………………..16
Indirect costs……………………………………………………..………………..16
Total financial requirement & sources of fund…………………17
Production parameters and assumptions…………………………17
Sources and revenue of the farm……………………………….……18
Profit and/or loss statement…………………….…………….……..…18
Cost benefit analysis…………………………………………………………19
Assumptions used in the study…………………………………..……19
List of tables

Tables page

Table 1. Herd projection………………………………………………………………….…21

Table 2. Investment costs…………………………………………..…….……………..22

Table 3. Infrastructure………………………………………………….…………………..22

Table 4. Foundation stock ………………………………………………………….……..23

Table 5. Office furniture and equipment………………………….……....………23

Table 6. Materials and equipment……………………………………….……….……24

Table 7. Manpower, salaries and wages………………………………..….………24

Table 8. Feeds and feed costs………………………………………………………..….25

Table 9. Summary of costs……………………………………………………….……….26

List of Annexes

Annex Page

Annex 1. Source and revenue of the farm-----------------------------27

Annex 2. Profit and/or loss statement----------------------------------28

Annex 3. Cost-Benefit Analysis-----------------------------------------29

 EXCUTIVE SUMMARY

Finna Integrated Dairy Development Plc dairy farm project is designed to be

established in the current year, May 2014 with the aim of production of milk for
consumption and generation of income for the company. The farm will be
constructed on the land which would be used both for construction of farm
structures and forage development. The farm site has good stand of natural pasture
species and gentle slope for dairying.

The farm plans to precede its operation with 40 pregnant cows/heifers and two
breeding bulls of known records. The project will receive its revenue from sale of
milk, processed milk and live animals. Growing bulls will be sold around the last
period of their second year whereas heifers will be transferred to breeding stock.

The financial, economic and technical viability of the project has been assessed
using various financial statements. The project profit and/or loss statement shows
that the project will generate an average net profit of more than 500,000 birr per
year from the second year of the project. In addition, the farm will hire experienced
workers for the over all operation of the farm. The project is, there fore, financially
viable and technically sound.

The proximity of the farm to different social services and infrastructure such as
market, veterinary centers and drug pharmacies, man road, water and electricity
lines are some among many factors contributing to the promising profitability of the
project.

At final year of its first phase the herd projection of the project will be 44 cows, 17
heifers, two breeding bulls and 21 male & 22 female calves of different age. The
next phase of the project will depend on the final evaluation of the farm; i.e. the
final evaluation may lead the farm to continue by expanding its size of operation or
shifting to manufacturing farm . In order to minimize the feed cost specially
concentrate feeds the farm will establish edible oil and flour extracting mill in the
farm compound.

BACK GROUND

Ethiopia’s domestic live stock population of 140 million head ranks first in Africa and
ninth in the world. The cattle population alone is estimated over 35 million; but the
current meat and milk productivity must thus be increased and improved to meet
the increasing demand in the face of the shrinking land area per person. Production
per unit animal must then be increased.

The children of most developing countries are facing the problem of malnutrition,
especially foods of animal origin. Milk is one of those products having full fledged
and high biological value in human food of all age.

In spite of the huge number of our local cattle, their production and productivity is
still low and are unspecialized. Crossing of the local cattle with temperate
specialized dairy breeds is the fastest way of improving the milk production of
indigenous breeds. To change such conditions and to make production reliable it is
necessary to adopt modern dairying system with effective and efficient
management practices.

Taking this in to account, Finna Integrated Dairy Development Plc

project wishes to establish modern dairy farm with dairy products processing in
Oromia region, Finfinne surrounding special zone, sebeta town kebele 02.
 1. PROJECT AREA
Location and size
The project is located in Finfinne surrounding special zone, sebeta town kebele
02district, which is located at 30 kms South west of Finfinne /Addis Ababa/
main road connecting Addis Ababa and Jimma. The project covers an area of
340 M2 land including the site reserved for new farm construction. The area is
bounded by Irrechaa (oromo God’s thanking in the north east, very small
River and road in the west, and by open free space both in north and south
directions. The slope of the land is good for effluent disposal and drainage which
fulfils dairy farm regulation of Ethiopia.

Climate and Topography

The metrological data on temperature and rain fall around the project area
shows that the main rainy season is from May to September accounting for 85%
of the rain fall with uni-modal distribution pattern. The area receives about
2000mm of rain fall on average per annum receiving heavy summer rain in
June, July and August. The average temperature ranges from 9 OC to 25OC. The
project area has an elevation of 2300masl. Based on climatic data and elevation
the area could be classified as “Upper Dega”. The site has a relatively gentle
slope suitable for the farm constructions.

Soil and Pasture

The field observations indicate that black loamy soils prevail in the project area
having good organic content for the production of different species of improved
forages. Setaria and digitaria are the dominant grass species in the natural
pasture of the project site.

Water Resource
In addition to the proximity of the site to the pipe lines of Sebeta town, there is
permanent natural stream nearby the project area. This ample water resource is
thus expected to minimize operating costs in various aspects.
Disease Condition

The disease data from the district Agricultural Development office indicates that
the incidence of serious diseases have not yet been reported except some
internal and exo-parasites. The availability of private and governmental
vet.clinics and vet drug stores in sebeta town are some of the opportunities to
easily alleviate the disease problems that may occur in the farm.

Veterinary services of the project will include routine vaccinations against

anthrax, black leg, pasteurolosis, render pest and contagious bovine pleura
pneumonia, brucellosis, lumpy skin and foot and mouth disease, routine testing
for brucellosis, tuberculosis, mastitis and blood parasites, regular deworming,
chemical spraying against ecto-parasite and fecal sampling for check up of
internal parasites, and fecal sampling for check up of internal parasites,
castration, dehorning and other treatments.

2. THE PROJECT
This dairy farm is a new private investment project with the aim of commercial
purpose and designed with the following objectives:

Objectives
- To generate income for the Company by participating in economic
development of the country through private initiatives;
- To supply good quality whole milk and processed milk of high biological value
for the surrounding community there by to assist the ever increasing demand
for foods of animal origin in domestic consumption
- To create employment opportunities
- To produce and supply cross bred animals for dairy, meat and draught
purpose.
Duration and owner ship of the project
The project will have duration of five years as its first phase.
 Owner’s Name:- Mr. Abera feyissa and Abiot Nigussie

Address:- Finfinne surrounding special zone, sebeta town kebele 02.

Out puts
The major out puts expected from this dairy farm include:

- Raw (Whole ) milk with good quality and sanitation,

- Dairy heifers and breeding bulls,
- Castrated males for meat and/or draught,
- Culled animals for different purposes,
- Manure for fertilizing the soil and etc.

Beneficiaries
The population of Sebeta and Alem Gena town is estimated to be over 100,000
which would be directly or indirectly benefited from the outputs of this project.
More over the project can expand its sphere of product distribution to other
nehibouring towns such as Tafki Tullu bolo Waliso,Finfinne/Addis Abeba/ and
others. The other outputs like steers and culled animals could be sold to the
surrounding small towns and farmers for different purposes at fair price.

Details and strategies.

Input collection
A total of 40 pregnant cross- bred females having similar Exotic blood (Friesian)
of between 62.5 and 75% and in similar lactation will be the foundation stock of
the farm. Moreover two breeding bulls of known pedigree and record will be
purchased from research stations or private farms.

Feeding
The new born calves will be provided with colostrums for the first five days.
There after all calves will be fed whole milk on average of 2 kg a day for the first
2 months. In addition to whole milk, hay and concentrate will be offered to
accustom the rumen microbes in digesting roughages.

Dry cows and breeding bulls will be allowed to graze on pasture land and will not
be supplemented during night, except in time of sickness or bad condition.
 Pregnant cows will be kept in door from the 8 th month until delivery, and each
will be fed a concentrate of 2 kg day -1 until calving. In addition they will be
offered hay. After calving the cows will be kept in door for five days until the
milk changed from colostrums to normal milk. From the 5 th day of parturition
milking will start and cows will join the herd for grazing on the pasture. Each
milking cow will be supplemented with 5 kg of concentrate per day over milking
time. The concentrate mixture will consist of Noug cake, maize flour and salt.
Water will be offered adlibtum for all classes of animals.

Milking
Cows will be hand milked twice per day (morning and evening) in side the night
barn. Well experienced milkers with ability to detect mastitis cases and proper milk
handling will perform the task. Individual towels will be prepared for each milking
cows in order to minimize the dissemination of mastitis among cows.

3.5.4.Breeding

Breeding will be practiced using both natural mating and A.I. services. The breeding
bulls will be allowed to run along with the herd during the day time and will be
fitted with bull nose ring during night time. In order to maintain the exotic blood
level of the herd between 62.5 and 75% A.I. service will be rendered from district
MOA office based on the heat condition of the females. The record history of
animals and their parents will help in the ease of the semen to be used for
insemination during the subsequent breeding seasons.

3.5.5. Fencing, sheltering and Guarding

The area on which the farm constructions carried out will be fenced with barbed
wire and locally available eucalyptus poles. Moreover live fence will be developed
around the farm compound to protect entrance of wild animals.

A/ Sheltering

I/office and store: - One building of size 10x6m will be constructed and its
sections will be sub-divided for office, and store. The sections of feed store should
water proof in order to prevent vermin entry.
II/ Milk room:- A small milk room of size 4x5m is needed for storing milk and
milk utensils. The wall of the room will contain a rack with hooks and pegs. The
windows of the milk room will have wire mesh to keep out flies.

III/ Isolation pen of size 4x10m with manger and trough will be constructed as
separate shed for sick and deformed animals.

IV/ Maternity hall: - this has size of 4x5m constructed as a separate shed.

V/ Calf pen: - A well ventilated closed and separate shed of size 4x20 m will be
constructed. The pen should be 120 cm high with bucket hunger and fresh bedding
provided all the time.

VI/ Cow shed with loafing area: - This will have a total size of 200 m 2 (10x20m)
including the area for loafing. The shed will serve for an over night stay and for
milking of the cows. Feeding trough of 60cm wide and 110 cm long will be
constructed in side the shed.

VII/ Hay shed: - a separate close to cow shed hay store with open sides of size
10x10m and height of 5m will be constructed. It also serves for storing bulky feeds
such as crop residues.

VIII/ Guard house: - A guard house of size 3x4m will be constructed near the
cow shed.

3. Product Marketing
The project is to undertake the production of fresh milk, processed milk and live
animals. Milkand milk products will be marketed to formal channel (DDE and
Mamma), individual household consumers, retailers, local processors and
institutional consumers (hotels, restaurants and offices). Some contractual
agreements will be used to protect interests of both buyers and sellers, as the case
may be. Breeding animals will only be sold to the surrounding farming population
at reasonable price. Since the demand for foods of animal origin is increasing from
time to time, the farm will not face market problems.
 4. Organization and Management

The project will have one manager who will be responsible for the over all operation
of the farm. In addition the farm will have other temporary workers; most of them
carry out non specific activities. The details of their salaries and wages are as
shown in table 7.

5. Herd Projection
Based on production parameters and assumptions the planed herd projection is
shown in table 1. Accordingly, the project will start with 40 breeding females and 2
breeding bulls as foundation stock. At the end of its first phase, i.e, 5 th year the
project will have a total of 179 births, 23 deaths, 34 culls, and 58 sales. The final
balance of the herd projection at the closing period of last year will then be 61
breeding females, 2 breeding bulls, 21 male & 22 female calves.

Milk processing

In rural areas, milk may be processed fresh or sour. The choice depends on
available equipment, productdemand and on the quantities of milk available for
processing. Allowing milk to ferment before processing has a number of advantages
andprocessing sour milk will continue to be important in this sector.Where greater
volumes of milk can be assembled, processing fresh milk gives more product
options,allows greater throughput of milk and, in some instances, greater recovery
of milk solids in products.

In many rural dairy processing plants monitoring equipment may not be available
and, although yields may be maximized by adhering to the prescribed procedures,
all these products can be successfully made byapproximating temperature, time, pH
etc. It is particularly important in cheesemaking to proceed when thecurd is in a
suitable condition. In general the farm will conduct some product processing with
the objective of value adding so as to improve both the shelf life and price.

Milk separation

The fat fraction separates from the skim milk when milk is allowed to stand for at
least 30 to 40 minutes.This is known as ‘‘creaming’’. The creaming process can be
used to remove fat from milk in a moreconcentrated form. A number of methods
are employed to separate cream from milk. An understanding ofthe creaming
process is necessary to maximise the efficiency of the separation process.

6. Financial Study
6.1.Investment cost

The total investment cost of the project during the first year 2015 is Birr 1,323,830
out of which buildings, infrastructure, foundation stock, office furniture & equipment
and materials account for 138180, 36750, 125400, 2972, 20528 birr respectively.
The break down of the amount by the type of investment including the contingency
allowance of 5% is as summarized in table 9.

6.2. Operating costs

6.2.1 Feeds and feed costs (Direct costs)

The estimated feed costs ( concentrate) for milking cows and calves during the year
2015 is Birr 91800, however, the total cost required including the cost for
conservation of other feeds will be 93800 in year 2008 and growing to Birr 123500
in year 2012.

6.2.2.Indirect costs

The estimated indirect costs for the year 2008 is birr 112987. The major indirect
cost items are salaries and wages, repair and maintenance, depreciation. The
indirect costs are assumed to remain constant over the project years.
6.3. Total financial requirement and sources of fund

The total financial requirement of the project during year 2008 will be 547617and
the 30& of the cost will be covered by the promoter where as the remaining 70% is
expected from Bank.

6.4. Production parameters and assumption

A/Cows

Lactation length = 300days

Calving rate =84%

Calving interval =1 year

Milk yield =13lit/day

Culling rate =16%

Death rate = 2%

Lactation yield =3900 lit/cow

Milk spoilage = 2%

B/ Calves

Weaning = 60 days

Death rate = 5%

Milk fed to a calf = 2kg/day for 2 months

C/Concentrate feeding

i. Cow = 5 kg/day over lactation

= 2kg/day for last 2 months of pregnancy

ii. Calves = 1.5 kg/day for first 120 days

6.1. Source and revenue of the farm

The main sources of revenue for the project are sale of milk and milk products, sale
of male calves and culled animals. Moreover, the farm will earn its revenue from
sale of the herd balance at the end of the project phase.

The estimated revenue expected from the sale of milk and animals during year
2012 is Birr 634639and 54000 respectively. These figures will respectively grow to
887390 and 1948000 birr in the last year of the project. The details are presented in

annex 2.

6.2. Profit and /or loss statement

The projected profit and/or loss statement for a period of 5 years, i.e., from year
2012 to 2016 is shown under annex 2. It is estimated that the project will earn a
net profit of Birr 117048 during the 2012 production year. Tax exemption is
assumed only for the first year.

6.3. Cost benefit analysis

The cost benefit analysis for the five production years is given in annex 3.

6.4. Assumptions used in the study

1. Direct production costs
Feed costs (Concentrate )
Lactating cows = 5kg/day/300 days of lactation
= 5*300 = 1500 kg/cow/lactation

Pregnant cows = 2kg/day for last 2 months of pregnancy

= 2*60 days=120 kg/cow
Calves =1.5kg/dayfor 120 days
=180kg/calf/year

Water, telephone and electricity charges estimated at 1000 Birr/month= 12000/yr

Vet drug cost estimated at 5000 Birr/yr.

2. Over head costs
Medicare:28 persons* 500 Birr/person/yr. = 14000 Birr/annum

Workers uniform=28 Person* 200 birr=5600 birr/6 months=11200 birr/yr

Stationeries and office supplies: Birr 100/month = 1200 Birr/ annum

Insurance: 0.75% of investment cost.

Land tax: 135birr/ha.= 540 birr/yr
Repair and maintenance = 2% of investment cost.
Miscellaneous expenses = Birr 5000/annum
A 20,000 km/yr/vehicle is assumed for a mileage = 40000 km/two vehicles
Fuel=6km/lit= 40000km/6*20 birr= 134000ETB
Lubricant: 2% of fuel cost= 2680ETB
 Annual depreciation

Type of asset Rate of 2012 2013-16

dep. (%)

Buildings and Construction 5 16192 64768

Vehicles 5 49500 198000

Office furniture and equipment 10 297 1188

Materials and Equipment 10 2053 8212

Infrastructure 3.3 1213 4852

Total 69255 277020

 Table 1. Herd projection

Project year Opening No Births Deaths Culls Sales Closing No

Year 2012

Breeding Females 40 - 1 6 - 33
Breeding Bulls
2 - - - - 2
Calves

Males
- 17 1 - - 16
Females
- 17 1 - - 16

Year 2013

Breeding Females 33 - 1 5 - 27

Breeding Bulls 2 - - - - 2

Calves

Males 16 14 2 - 15 13

Females 16 14 2 - - 15**+13*

Year 2014

Breeding Females 42 - 1 7 - 34

Breeding bulls 2 - - - - 2

Calves

Males 13 17 2 - 12 16

Females 13 18 2 - 12**+17*

Year 2015

Breeding Females 46 - 1 7 - 38

Breeding bulls 2 - - - - 2

Calves

Males 16 18 2 - 15 17

Females 17 19 2 - 16**+18*
 Herd projection …cont’d

Project year Opening No Births Deaths Culls Sales Closing No

Year 2016

Breeding Females 54 - 1 9 - 44

Breeding bulls 2 - - - - 2

Calves

Males 17 22 2 - 16 21

Females 18 23 2 - 17**+22*

Total 179(a) 23(b) 34(C ) 58(d)

Herd Balance

Total (a) –(B+C+D) + opening No 1st year = Closing No at last year

(179) –(23+34+31)+42 = 44+2+21+17+22

106 = 106

*Number of calves in their 1st year

**Number of calves in their 2nd year

 1. Investment cost, year 2012------------ (Table-2)
Constructions and Buildings

Description Size/Qty. Unit Cost Total cost Remark

Office and store 10x6m 1500 90000

Processing unit 7x4 1000 28000

Milk room 4x5m 500 10000

Maternity hall 4x5m 300 6000

Isolation Pen 4x10m 300 12000

Calf pen 4x20m 350 28000

Cow shed with 10x20m 175 35000

loafing area

Hay shed 10x10m 175 17500 Open shed

Guard House 3x4m 175 2100

Contingency (10%) 22860

Sub-total 251460
1.1.Infrastructure --------- (Table 3)

Description Size (Qty) Unit cost Total cost Remark

Fence - LS 15000

Feed and Watering - ” 7000

trough

Vaccination crush - ” 3000

Electric line installation - ” 5000

Water line installation ” 5000

Contingency (10%) - ” 3500

Sub total - ” 38500

1.2.Foundation stock ------------- (Table 4)

Description Unit Qty Unit cost Total cost

Pregnant cows No 40 15000 600000

Breeding bulls No 2 13000 26000

Sub total 626000

1.3.Office furniture and Equipment ------- (Table 5)

Description Qty Unit Total cost

cost

Computer with printer (desk top) 1 11000 11000

Arm Chair 1 450 450

Chair 5 100 500

Table 2 500 1000

Shelf 1 650 650

Adding Machine 2 80 160

Stapler 1 40 40

Puncher 1 30 30

Contingency (10%) 1383

Sub Total 15213

1.4.Materials and Equipment ------- (Table 6)

Item Qty Unit cost total cost

Milk can (big) 3 1000 3000

Milk can (small) 3 700 2100

Milk Bucket 15 210 3150

Burdizo 2 250 500

Water cane 5 50 250

Water tanker (5000lit) 2 7000 14000

Bull nose ring 5 100 500

Ear tag 100 5 500

Ear tag applicator 1 200 200

Ear tag markers 5 80 400

Wheel barrel 5 350 1750

Sprayer 4 500 2000

Weighing scale (calf) 1 15000 15000

Milk balance (spring) 2 2000 4000

Churner 2 2500 5000

Deep freeze 2 15000 30000

Cream separator 1 12000 12000

(electrical)

Contingency (10%) 9435

Sub Total 103785

Vehicle purchase

Description unit QTY Unit cost Total cost

Minibus No. 1 300000 300000
FSR No. 1 600000 600000
Sub total 900000
Contingency (10%) 90000
Total 2 990000

2. Operating costs

2.1.Man power, salaries and wages ------(Table 7)

Description Qty Monthly Monthly total Annual total

salary

Manager 1 2014 2014 24168

Asst.veterinarian 1 1400 1400 16800

Milkers 8 150 1200 14400

Milk processors 2 980 1960 23520

Sales men 2 150 300 3600

Cleaners 5 150 750 9000

Feeders 4 150 600 7200

Guard 2 150 300 3600

Drivers 2 980 1960 23520

Secretary 1 980 980 11760

Sub Total 28 7104 11464 137568

2.2.Feeds and feed costs -------------(Table 8)

Project years

Cost item description Unit 1 2 3 4 5

1. Pregnant cows No 34 28 35 37 45

(a) concentrate Kg 4080 3360 4200 4440 5400

2. Milk Cows No 34 28 35 37 45

(b) Concentrate Kg 51000 42000 52500 55500 67500

3. Calves No 34 28 35 37 45

(c) Concentrate Kg 6120 5040 6300 6660 8100

Total Concentrate Kg 61200 50400 63000 66600 81000

(a+b+c)

Price of concentrate Birr 91800 75600 94500 99900 121500

(d)

Conservation of other Birr 2000 2000 2000 2000 2000

feeds (e)

Total costs (d+e) Birr 93800 77600 96500 101900 123500

Fuel and lubricant cost

Fuel cost for two vehicles= 40000km/6lit*20birr=134000ETB/yr

Lubricant cost for two vehicles=2% of fuel cost = 2680ETB/yr

Fuel+Lubricant cost= 136680ETB/year

 Summary of costs ----- (Table 9)

Project Years

Description 2012 2013 2014 2015 2016 Total

1. Investment cost

Construction and Buildings 251460 251460

Infrastructure 38500 38500

Foundation Stock 626000 626000

Office furniture & Equipment 15213 15213

Materials & equipment 103785 103785

Vehicle purchase 990000 990000

Sub total (A) 2024958 2024958

2. Operating cost

2.1. Direct costs

Feed 93800 77600 96500 101900 123500 493300

Water, telephone & electricity 12000 12000 12000 12000 12000 60000
charges

Vet. Drug cost 5000 5000 5000 5000 5000 25000

2.2. Indirect costs

Salaries and wages 137568 137568 137568 137568 137568 687840

Medicare 14000 14000 14000 14000 14000 70000

Workers uniform 11200 11200 11200 11200 11200 56000

Stationeries & supplies 1200 1200 1200 1200 1200 6000

Repair & maintenance 40500 40500 40500 40500 40500 202500

Land tax - 540 540 540 540 2160

Insurance 15190 15190 15190 15190 15190 75950

Depreciation 69255 69255 69255 69255 69255 277020

Fuel and lubricant 136680 136680 136680 136680 136680 683400

Miscellaneous expenses 5000 5000 5000 5000 5000 25000

Sub total (B) 541933 525733 544633 550033 571633 2664710

Total (A+B) 2566891 525733 544633 550033 571633 4689668

 Annex 1. Sources and Revenue of the farm.

Source Unit Yr.2012 Yr.2013 Yr.2014 Yr.2015 Yr.2016 Total

A. Heifers No            

Average price/head Birr 20000          

Sub total Birr            

B. Males No   15 12 15 16 58

Average price/head Birr 19000          

Sub total Birr   285000 228000 285000 304000 1102000

C. Culled cows No 6 5 7 7 9 34

Average price/ head Birr 9000          

Sub total Birr 54000 45000 63000 63000 81000 306000

D. Total Milk produced Litr 122046 100074 122028 148680 170652 663480

Milk for sale (80%) Litr 97637 80059 97622 118944 136522 530784

Price /liter Birr 5          

Sub total* Birr 488184 400296 488112 594720 682608 2653920

processed milk(20%) Litr 24409 20015 24406 29736 34130 132696

Price /liter Birr 6          

Subtotal Birr 146455 120089 146434 178416 204782 796176

Total sale of whole Birr 634639 520385 634546 773136 887390 3450096
milk+processed

E. Live animals at the end              

of 5th year

cows (44*20000 birr)           880000 880000

-Bulls (2*19000 birr)           38000 38000

Calves (M+F):43*15000           645000 645000

Sub total 0 0 0 0 0 1563000 1563000

Total Revenue Birr 688639 850384.8 925546 1121136 2835390 6421096

Less: sale tax (5%) Birr 654207 807866 879268 1065079 269362 6100041
Annex 2. Profit and/or loss statement

  Pr o jec t Y ea r s
Description 2012 2013 2014 2015 2016
Revenue- (a)Milk sale (whole 634639 520385 634546 773136 887390
milk + processed)
(b)Sale of animals 54000 330000 291000 348000 1948000
Total 690651 852398 927560 1123151 2837406
Less: Operating cost 148718 326665 382927 573118 2265773
Profit before tax &
depreciation 217973 395920 452182 642373 2335028
Less: depreciation 148718 326665 382927 573118 2265773

Profit before tax 148718 326665 382927 573118 2265773

less income tax   228666 268049 401183 1586041
Net profit after tax 148718 98000 114878 171935 679732
Annex 3. Break down of Fund allocation

Cost category Total financial Contribution Proposed fund

requirement from the from Bank
(Birr) promoter (Birr) (Birr)
1.       Investment 2024958 607487.4 1417471

2.       Direct cost 578300 173490 404810

3.       Indirect costs 2086410 625923 1460487

Total 4689668 1406900 3282768

%age distribution 100% 30% 70%