Coffee Plantation Farm Proposal

PROJECT PROPOSAL FOR COFFEE PLANTATION FARM
PROJECT PROPOSAL FOR COFFEE PLANTATION

FARMING
PROJECT OWNER: SEIFU ABA JEBAL
PROJECT LOCATION: CHEFE ILFATA KEBELE, LIMU

KOSA DISTRICT, JIMMA ZONE, OROMIA REGIONAL STATE
FEBRUARY, 2020
Table of Content Pages
1. Executive summary.................................................................................................................................1
1.1. Brief of the promoters business profile.........................................................................................1
2. Product description and application.........................................................................................................2
2.1. The significance of the project......................................................................................................3
2.2. Project location.............................................................................................................................4
2.3. Project objectives..........................................................................................................................4
2.4. Project demand.............................................................................................................................5
3. Hauling Plant Capacity and Production Programme................................................................................8
3.1. Hauling Plant Capacity.................................................................................................................8
3.2. Production Programme...............................................................................................................10
3.3. Material and inputs.....................................................................................................................10
3.3.1. Raw and auxiliary materials.............................................................................................10
4. Technology and engineering..................................................................................................................11
4.1. Production Process......................................................................................................................11
4.2. Source of Technology.................................................................................................................12
4.3. Land use plan..............................................................................................................................12
5. Financial Requirement and Analysis......................................................................................................13
5.1. Fixed Capital...............................................................................................................................13
5.2. Working Capital..........................................................................................................................14
5.2.1. Operating Expense at full Capacity2.................................................................................14
5.2.1 Operating Expense............................................................................................................15
5.2.2.Pre-Service Expense..........................................................................................................15
5.2.3. Summary of investment cost............................................................................................15
III
5.3. Financial analysis and Statements...............................................................................................16
5.3.1. Underlying Assumption...................................................................................................16
5.3.2. Sources of Fund...............................................................................................................16
5.3.3.Depreciation Schedule......................................................................................................17
5.4. Financial Statement.....................................................................................................................17
5.4.1. Income loss/statement......................................................................................................17
5.4.2. Cash flow Statement........................................................................................................18
5.5. Financial analysis........................................................................................................................19
6. Environmental impact of the project......................................................................................................20
IV
LISTS OF TABLE
Table 1 .Project Profile...............................................................................Error! Bookmark not defined.
Table 2 milled coffee Production(tone).......................................................................................................5
Table 3: Gross domestic product of industrial sector 1980/81.....................................................................6
Table 4projected demand for roasted, ground and packed coffee (tones)....................................................7
Table 5 PRODUCTION Programme.........................................................................................................10
Table 6: proposed share of coffee bean suppliers......................................................................................10
Table 7Annual sacks bag requirement and cost estimates..........................................................................11
Table 8: Man power requirement and annual estimated cost.....................................................................14
Table 9.Summary of Total initial investment cost.....................................................................................16
Table 10wet coffee processing income/loss statement...............................................................................18
Table 11: Repayment schedule..................................................................................................................19
V
VI
1 Project name coffee plantation farm

2 Project owner Seifu Aba Jebal
3 Nationality Ethiopian
4 Project location Chefe Ilfata kebele, Limu Kosa district Jimma Zone,
Oromia regional state
5 Project composition coffee plantation farm
6 Premises required 33.5 hectares
7 Initial investment A total investment of the project is estimated to be birr 2.3
cost million, From this 20% will be covered by the promoter
of the project while the rest 80 % will be covered by
financial institutions.
8 Employment At full capacity the farm will hire a total of Workers 151
opportunity labor force. From the total employee 6 are permanent and
145 temporary or seasonal
9 Technology Modern plantation
10 Market share 100% for export
11 Benefits of the Source of income ,employment, value add in agricultural
project sector, foreign currency earning and transformation of
agricultural technology etc
Table 1.Project Profile
VII
1. Executive summary
This proposed project belongs to Seifu Aba Jebal aiming at engaging in Coffee plantation farm and
producing about 368.5 quintal of coffee bean per annum. The total investment requirement of the project
including the working capital is estimated at about Birr 2 million birr; of which 30% is owners equity,
while the remaining 70% from bank loan. The proposed project implemented in Limmu kossa wereda in
Chefe Ilfata kebele. The total area of land required for the proposed project is 33.5 ha of land in which the
owner of this project has Rural land certification from Limu Kossa Land administration and use office. At
ful capacity the project will produce 11 kuntal of coffee bean from 1 ha of land.
The proposed project will earn 2,359,357.70 profit in it’s the forth year of establishment. The
proposed project will create 6 permanent and 100 causal job opportunities for the local people.
The proposed Coffee plantation project will target this economic advantage and is thus striving
to achieve the planned benefits from wet coffee processing industry by giving due emphasis to
variety selection, production process, harvesting, storing and processing of coffee products.
1.1. Brief of the promoters business profile
The promoter of this project has a broader rural life and has coffee plantation experience. Being
in the business, it has able to create employment access to a minimum of 6 persons which are
regularly earning their income from the business performance. Taking into account his rural
background, business experience and staff management experience in the current business the
promoter has decided to engage in the coffee plantation business to diversify income sources, to
create employment to the able body labor, to generate revenue to the public, to develop an idle
land and resources in the project area.
His rural background, and the aspiration to diversify sources of income made the promoter to
establish the proposal to guide its vision to involve in an improved coffee plantation intensifying
the meager resources he owned from the former business. The desire to undertake processing
investment made the promoter has suitable land of his own land and producing quality of coffee
bean and supply quality coffee to the domestic and foreign markets. Hence, this proposal has
been prepared to elaborate the nature of the intended business, types of business to be managed,
proposed manpower and investment cost, projected revenue and the like to state the rationale to
implement the project in the stated area.
1
2. Product description and application

Ethiopia is probably the original source of Arabica coffee. Estimates of production today 'vary
from some 10,000 to 20,000 tons per annum. In Ethiopia about 60% of coffee production is
harvested from wild coffee growing in western Ethiopia, with an additional 30-35% coming from
small plots around dwellings, principally in Sidamo Province, and the remainder from
plantations in Kaffa Province. While the intrinsic quality of Ethiopian coffee is good, the low but
slowly improving standards of harvesting and subsequent handling result in low prices for much
of it.
Ethiopia has huge potential to increase coffee production as it is endowed with suitable
elevation, temperature and soil fertility, indigenous quality planting materials, and sufficient
rainfall in the coffee growing belt of the country. Coffee is a shade-loving tree that grows well
under the large indigenous trees such as Cordia Abyssinica and Acacia species. Despite
Ethiopia’s immense potential for increasing coffee production, the land area dedicated to coffee
remains limited at about 3.7 per cent of the total area under crop4 and the average yield remains
very low, 0.73t/ha
The Ethiopian coffee sector, is very important for the country and for its economic development
due to the reasons that: (i) as a major source of cash income and provider of employment, it
supports millions of farming families (for instance, those estimated as dependent on coffee
production and marketing for livelihood are about 20 million) and, (ii) coffee is the first item in
terms of revenue generated from expo rt with a share of about 25 per cent. The coffee sector can
contribute to the growth of the industrial sector share in the national GDP, owing to its high
potential of creating industrial roasting capacity that, at present, is rather marginal. Although the
Ethiopian Government has implemented important reforms, such as the introduction of the
Ethiopian Commodity Exchange for grading and auctioning, the problems of the sector need to be
tackled through a “value chain” approach. In this regard, to Increase the social, environmental and
economic sustainability of the coffee value chain and its export revenue requires an integrated yet
modular value chain approach focusing on: (i) Increase in productivity and sustainability (cultivated
area and yield), (ii) improvement of quality, (iii) increase export and, (iv) Recognition in
international markets of the intrinsic qualities of the Ethiopian Arabica coffee. Increasing
production is important, but the real asset of the Ethiopian coffee resides in its quality that, by
2
obtaining premium prices, could allow avoiding the competition with the “coffee giant”, like
Brazil and Vietnam.
2.1. The significance of the project

The envisaged project deemed to add to the economic development of the nation in general and
zone and district in specific with following ways:
A. Source of Revenue
As public policy of any nation, 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,
the project will serve as sources of revenue for the district as well as for the region.
B. Employment opportunity
One of the problems that our country faced is unemployment. Therefore, 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 6 individuals in permanent and 100 casual and more
than 45 individual during construction.
C. Sources of social service

In addition to serving as a source of employment and income for the region, the project renders
services for different group of people and farmers who participate on coffee productions.
2.2. Project location

The proposed project is found in Limmu Kossa district of chafe Ilfata kebele; the district is
bordered with Limmu Seka district in the north, Tiro Afata district in the east, Kersa in the south
and Manna district in the south-west,Chora Botor in the North-East and Ilu Ababar Zone in the
North-west. Astronomically it extends between 7050’-8036’N latitudes and 36044’-37029’ E
longitudes. Total area of the district is 1462.46 Km2 at actual. The Agro- climatic or Traditional
3
thermal zones of the district is cool (Dega), whichcover 25% ,65% sub-tropical (Weina Dega),
and the rest 10% tropical (Kolla).
Recently the district was divided in to 44 kebeles. From this, 40 kebeles are peasant associations
and the rest 4 are urban centers. Limuu Genet is the capital town of the district. The population
of peasant associations counted as 175,161 percentages cover 90.48% of the total population and
the rest 18,432 percentages cover 9.52%of the population is urban dwellers.
The proposed project belongs to Seife A/Jebal which is located in Jimma Zone, Limu Kosa
district, and Chefe Ilfata Kebele.T he project site is about 460 km distant from Finfine/Addis
Abeba, the capital city, and 70 km from the capital Town of the Jimma Zone. The project site is
only about 10 km away from all-weather road connecting jimma to Limu genet town. The total
land been proposed for the coffee plantation is is 33.5 ha of land. The total initial investment
capital for the project is 2.3 million Ethiopia Birr.
2.3. Project objectives

The project is basically planned to be established with an objective of generating profit for the
promoter. However, its initiations will benefits the public by planning its significant part in
solving the existing social and economic problems. In this respect the project is aimed to
promote the following objectives:-
 To provide value adding service to the area by using coffee as primary product
 To satisfy customer need by creating utility to the product
 Provide direct and indirect employment to working labor force,
 Facilitate the transfer of improved technologies and bases for the national industrial
development.
 Increase government revenue through the different forms of taxes to facilitate social
economic developments.
4
Table2 milled coffee Production (tone)
Year Milled coffee Growth Rate%

production
1989 16 -
1990 31 94
1991 34 10
1992 28 18
1993 156 457
1994 300 92
Total 565 -
Mean-94
Source:CSA
2.4.Project demand
Ethiopians are heavy coffee drinkers, ranked among the largest coffee consumers in the world,
such that about half of Ethiopia’s coffee production is locally consumed. Coffee in Ethiopia has
both social and cultural value. It is mainly consumed during social events such as family
gatherings, spiritual celebrations, and at times of mourning. A new development in the Ethiopian
major cities regarding coffee consumption is the increase in regular coffee shops and the
emergence of small roadside stalls selling coffee to passer-by customers. These small roadside
stalls serve coffee in a traditional manner. The demand for coffee also increased with the increment of
world population growth and increment of urbanization in world wide.
Table 3 Gross domestic product of industrial sector 1980/81
Year Million birr Growth Rate

1983 760.8 -
1984 648.4 14.77
1985 887.1 36.81
1986 945.2 6.55
1987 1027.7 8.73
5
Year Million birr Growth Rate

1988 11 15.5 8.54
1989 1208.9 8.37
1990 1263.3 4.5
1991 1343.9 6.38
1992 1396.6 3.92
1993 1469,2 5.2
1994 1519.3 3.41
1995 1528.4 0.6
As can be seen from Table 2, the sector achieved an average of about 7% growth rate between
1983 1985. In the projection of the demand for packed coffee only the recent five years are
considered. The growth achieved during the period 1991- 1992 by the trade, hotels and
restaurants sector was about 4% and it is applied on the current effective demand. The projected
packed coffee demand is presented in Table 3
Table 4 projected demand for roasted, ground and packed coffee (tones)
6
Year Projected demand Unsatisfied demand

2010 337 37
2011 350 50
2012 364 64
2013 3 79 79
2014 394 94
2015 410 I110
2016 426 126
2017 443 143
2018 46 161
2019 480 180
7
3. Hauling Plant Capacity and Production Programme

3.1. Hauling Plant Capacity
8
9
3.2.Production Programmed
The annual production programme is formulated on the basis of the market forecast and selected
plant capacity and production potential of the project locality. It is assumed that the plant will
achieve 80% and 100% capacity utilization rate in the third and forth year. Full capacity will be
reached in the second year and onwards. The production programme for Wet milled coffee is
shown in below table.
table 5. production programme
S/N Description production programme

Year1 Year2 Year3 Year 4
1 Coffee Production 7500kg 11900kg 22000 37400
2 Capacity utilization rate % 40 60 80 100
3.3. Material and inputs

3.3.1. Raw and auxiliary materials
The major raw material required for coffee plantation is mainly ffarming equipment, machinery.
Seed, fertilizer, different chemical for controlling weeds
The major auxiliary Materials in the production of milled coffee comprise packing materials of
various type and size. The packing materials to be used by the plant are sacks bag. The proposed
package sizes of sacks bag for packing of coffee are 50kg and 1 quintal which are planned to
Constitute 75% and 25% of bags, respectively.
The estimated annual requirement for bag at 100% capacity utilization rate and the
corresponding cost estimates are given in below table. Bag of required size, quality and desired
number of colors can be available from local private factories on an order basis
Table 7Annual sacks bag requirement and cost estimates
Type Unit Price/unit Quantity total

50kg packing size No 10 15000 150000
100kg packin S1ze No 20 2500 50000
B. Utilities
10
The major utility required by the plant electricity, water and telephone. Annual utility
consumption of the plant at 100 per cent capacity utilization rate is estimated at 12,360 Birr and
expected to increase overtime subject to price adjustment on service use.
Potable water will be required for personal use and quality control laboratory. To promote
frequent contact to the central market and customers at a distant location, the project will install
telephone and ICT appliance to modernize the plant and to access updated information to
enhance capacity.
4. Technology and engineering

4.1. Production Process
Coffee plantation involves different operations such as land preparation, seedling area
preparation, Wetting and aeration, sorting, Hauling, packing and storing. Wet coffee will be
milled and sorted out with desired proportions. Based on the agreement to be reached with the
plant owner and service takers, the milled coffee will be owned and kept in the store by the
promoter to offer to the central market and Customers.
On the other hand, certain proportion of service taker is expected to take back the milled product
to display to the local market for local consumers at ongoing price. However, the amount to be
produced at full capacity of 10,000 quintals will be owned by the investor and offered to the
market under its full control to sustain the Hauling service to the community and to earn viable
income.
4.2. Source of Technology

Even though, the promoter is expected to assess the different potential suppliers of the envisaged
technology for while a company based in Ethiopia will be among potential client to avail the
intended technology.
4.3. Land use plan

The major portion of the plot will be allocated to Coffee plantation, warehouse and shade with
opens pace to work comfortably.
11
5. Financial Requirement and Analysis

5. Financial Requirement and Analysis
The financial resource is a prime resource for undertaking any activities. Hence for implementing this
coffee plantation farm a total of 2,317,946 ETB is required. From this 20% ( 463589)birr will be
covered by the promoter of the project while the rest 80% ( 1,854,357) will be covered through loan from
bank at the prevailing interest rate.
Therefore the said amount of finance is needed for undertaking the following.
5.1. Fixed Capital

A. Land development, buildings and Construction
The total land area required for coffee plantation farm is 33.5 ha of land. The cost of buildings
and construction is estimated at 411,484.00. On the other hand, the total cost of land development,
is estimated at 50,000.00.
A. Land, Building & Construction

S.N Description of works Total Cost in birr
1 Building construction 300,000.00
2 Site Development 50,000.00
3 Design and supervision 50,000.00
st
4 1 Year land lease & 11484
(10%) down payment
Total 411,484.00
B. Machinery and Equipment
The total cost of machinery and equipment required for Coffee plantation is estimated at
868,500.00 birr.
12
SN Description Measurement Qty Unit cost in

Birr
1 Generator Unit 1 120,000.00
2 Tractor Set 1 600,000.00
Farmig eqipment 100,000.00
3 Electrician tools box Set 1 18,500.00
4 (Security Equipment) 30,000.00
Total 868,500.00
C. Office Equipments
SN Description Measurement Qty Unit cost in birr
1 Managerial tables Unit 1 2,600.00

2 Managerial chairs Unit 1 1,950.00
3 Office table with chair Unit 2 1,350.00
6 Shelf Unit 1 3,500.00
7 Filing cabinets Unit 1 1,500.00
8 Guest chairs Unit 1 900
9 Fax & Telephone Unit 1 1,300.00
machine
Total 25,500.00
5.2. Working Capital

5.2.1. Operating Expense at full Capacity
Salary Expense
Coffee plantation farming will create job opportunity for more than 100 labor force. From the
total employee 6 are permanent and 145 are causal workers that are planned to be drawn from
local community. Accordingly from permanent workers 3 are female and 3 are male employee.
The proposed manpower requirement and the estimated annual labor cost including fringe
benefits is presented in the table below.
13
Table 8 Man power requirement and annual estimated cost

SN Position No Qualification Monthly Yearly
salary in Sallary
Birr
1 Agronomist 1 BA in 4500
management 54000
3 Secretary 1 10+2 in 2000
secretariat
science 24000
harvests of red coffee (1kg=2bir) 250000 250000
beans (170000kg*2=340000)
10 Guards/Security 3 Basic 1000 12000
16 Cleaner 1 Unskilled 750 9000
Total 258250 349000
Benefit (20%) 69800
Grand Total 11340 418800
5.2.1 Operating Expense
SN List of Items Annual Assumptions Used Annual cost in

cost in birr
birr
SN List of Items
Raw material(seediling,
Fertilizer and chemical) 150,000.00
1 Audit and legal fee 1 Audit and legal fee 24,000.00
2 Stationery supplies 2 Stationery supplies 6,000.00
3 Promotional Cost 3 Promotional Cost 6,000.00
14
4
Property Insurance 4 Property Insurance 3,000.00
5
Electric consumption 8 Electric consumption 6,000.00
6
Fuel 9 Fuel 42,672.00
7
Oil & Iubricants 10 Oil & Iubricants 10,000.00
8
Telephone & fax 11 Telephone & fax 1000
Loading Coast 10000
Transportation coast 50000
9 Repair expense 12 Repair expense 600
Total Total 309,272.00
5.2.2. Pre-Service Expense
SN Description Cost in birr

1 Project proposal and EIA 30,000.00
2 Licensing fee and others

Total 30,000.00
5.2.3. Summary of investment cost

The total initial investment cost of the project including working capital is estimated at Birr 2.3
million. The major breakdown of the total initial investment cost is shown in Table 7.
Table 7.Summary of Total initial investment cost
SN Description Cost in Birr

1 Land, building &
construction 411,484.00
2 machines & Equipments 868,500.00
4 Office Equipment 25,500.00
Total fixed investment 1,305,484.00
cost
6 Salary expense 418,800.00
7 Operation Expense 309,272.00
8 Pre service Expense 30000
Total Working capital 758,072.00
Sub total 2,107,224.00
15
11 Contingency (10%) 210,722.00

Total initial investment 2,317,946.00
capital
5.3. Financial analysis and Statements

5.3.1. Underlying Assumption
The financial analysis of the wet coffee processing is based on the data provided in the preceding
sections and the following assumptions.
A. construction and finance
-Total years required for plantation 3 Years
-source of finance 30% equity and 70 loan
-Bank interest rate 10%

depreciation 10%
-Building machinery and equipment 10%
-Office Equipments 10%
5.3.2. Sources of Fund

The source of fund to finance the project is planned to be from two sources. These are promoter’s
equty and bank loan. The loan is expected to be obtained from one of the local lending institutions.
Since the project is expected to take some times to repay all its debts, the bank loan is assumed to
obtain on long term credit basis. Taking the financial position of the promoters into account, equity
contribution and bank loan to finance the total investment outlays of the project are assumed to be
20% and 80% respectively. Accordingly, the total financial requirement from the two sources will
be;
SN Description Percentage share Amount
1 Owners equity 20% 463589
2 Bank Loan 80% 1,854,357
Total 100% 2,317,946
16
5.3.3.Depreciation Schedule
SN Description Original Value Depreciation Depreciation per

in Birr rate in % year in Birr
1 Construction and 1 6,300.00

Building 300,000.00
2 machines &Equipment 868,500.00 10 86,850.00
Total 1,168,500.00 93,150.00
5.4. Financial Statement

5.4.1. Income loss/statement
Project revenue and production costs are listed and compared to see whether the project generate
profits or not. Starting from first year of the project operation, the project will generate a
reasonable amount of net profit for the owners starting from 4 rd year. During the first three years
the project also earns some profit from the sales from existing coffee plantation but expanse
coast such as capital fand the The project can expance Profit and loss statement shows that the
project will generate net profit from starting years since there is some coffee plantation before.
ETB 49,461.30in the 4th years year and increase to ETB 2,359,357.70 starting from the third
year of the project life and hence it is found to be profitable.
Table 10. Coffee plantation farm income/loss statement
Revenue Year 1 Year 2 Year 3 year 4 and after

Sales from Coffee bean 870,000.00 1,113,600.00 1,380,400.00 4,338,400.00

Expenses
Salary Expense 200,000.00 200,000.00 200,000.00 418,800.00
Operating Expenses 309,272.00 309,272.00 309,272.00 309,272.00
Deprecation Bld. Machineries 6,300.00 6,300.00 6,300.00 6,300.00
and Equip.
Deprecation of Vehicle 86,850.00 86,850.00 86,850.00 86,850.00
17
Interest Expense3 185,435.00 166,892.00 150,200.00 135,183.00

Lease payment4 11,484.00 11,484.00 11,484.00 11,484.00
Total Expense 799,341.00 780,798.00 764,106.00 967,889.00
Profit before Tax 70,659.00 332,802.00 616,294.00 3,370,511.00
Tax (30%) 21,197.70 99,840.60 184,888.20 1011153.3
Net profit 49,461.30 232,961.40 431,405.80 2,359,357.70
Year Year 0 Year 1 Year 2 Year 3 and year 4

after
Equity Capital 463589
Loan principal 1,854,357
Net sale 0 870,000.00 1,113,600.00 1,380,400.00 4,338,400.00
Total Cash in 2,317,946 870,000.00 1,113,600.00 1,380,400.00 4,338,400.00
flow
Cash payment
Salary Expense 0 200,000.00 200,000.00 200,000.00 418,800.00
Investment 411,484 0 0 0 0.00
Pre operating 30,000 0 0 0 0.00
Expense
Operating Cost 0 309,272.00 309,272.00 309,272.00 309,272.00
Loan repayment 0 185,435.00 166,892.00 150,200.00 135,183.00
Lease payment 0 11,484.00 11,484.00 11,484.00 11,484.00
Tax payment 0 21,197.00 99,840.00 184,882.00 1011153.3
Total payment 441,484.00 727,388 787,488.00 855,838 1,885,892.30
Cash surplus/ 1,876,461.80 142,612.00 326,112.00 524,562.00
deficit 2,452,507.70
Cumulative 1,412,872.80 1,555,484.80 1,881,596.80 2,406,158.80
cash flow 4,858,666.50
5.5. Financial analysis

Profitability
According to the projected income statement, the farm will start generating profit in the 1 nd year
of operation. Important ration such as profit to total sales, net profit to equity (Return on equity)
and net profit plus interest on total investment (return on total investment) show as increasing
18
trend during the lifetime of the project. The income statement and the other indicators of
profitability show that the project is viable.
i. Pay-Back periods
The investment cost and income statement projection are used to project the pay-back period.
The building’s total investment will be fully recovered at the 5.2 year of operation.
6. Environmental impact of the project

The coffee processing industry is one of the major agro-based industries contributing
significantly to national income of a country. Coffee effluents are the main source of organic
pollution in environment where intensive coffee processing is practiced without appropriate by
product management systems. Environments that are exposed to the effluents generated from
coffee processing plants show change in terms of its physical, biological and chemical behavior
(JARC and EIARC, 2007).
The EIA of the project activities was determined by identifying the environmental aspects and
then undertaking an environmental risk assessment to determine the significant environmental
aspects. The environmental impact assessment has included all phases of the project namely
construction phase and operational phase.
The positive impact of the project is:-
 Generation of employment opportunity

 Source income for the government through business income tax
 Income generation for the promoter
Negative impact of the project
The project has the following negative impacts:
a) Noise and Dust emission during Construction

There are some noises during the construction due to the construction operation and the company
will use construct the construction during the day time. Again there is the emission of dust which
will be mitigated by sprinkling water on the service.
19
b) Problem on workers on construction

During construction and operation there are some problems that will materialize on workers.
These are: damage on operation by using machines, construction materials and others. To
mitigate such impact the company will provide safety insurance and safety equipment’s.
c) Swages during operation
During operation there are some solid and liquid wastes emitting from the factory and will be
mitigated by using modern recycling technology, concrete construction of lagoon, EM
technology etc..
d) Liquid wastes
The wet coffee processing has needed more water consumption during this phase. The source of
this water is stream located in the area. The processing of this method is follow the following
procedure that discharges the wastewater at each step that will affects the environment. The most
impact is odour and stagnant water leads to different communicable diseases. Generation of
liquid wastes from coffee beans, coat released from coffee processing industry It is anticipated
that the water used at the facility for the AD will be cycled within the process and minimal
amount of water will level the site.
e) Solid waste
The bulk of the solid waste generated during the operation of the plant will consist of coffee
pulping during the process. Waste receptacles will be placed at strategic points to discourage
littering. The incineration method is very appropriate to control solid wastes.
The plant will be erected in such a ways that its adverse effects to the society and environment
are adequately managed. Basically, the project shall be ideal to the environment. To attest
environmental soundness of the project, it requires carrying out the project implication to the
environment and society around. Hence, the promoter is expected to produce ESIA that
elaborates the project environmental viability and associated mitigation measures to sustainable
operate the Wet coffee Hauling plant and provided the envisaged services to the society's
satisfaction.
20

Coffee Plantation Farm Proposal

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Coffee Plantation Farm Proposal

Uploaded by

Copyright:

Available Formats

PROJECT PROPOSAL FOR COFFEE PLANTATION FARM

PROJECT PROPOSAL FOR COFFEE PLANTATION

PROJECT OWNER: SEIFU ABA JEBAL

PROJECT LOCATION: CHEFE ILFATA KEBELE, LIMU

Table of Content Pages

1.1. Brief of the promoters business profile.........................................................................................1

2. Product description and application.........................................................................................................2

2.1. The significance of the project......................................................................................................3

2.2. Project location.............................................................................................................................4

2.3. Project objectives..........................................................................................................................4

2.4. Project demand.............................................................................................................................5

3. Hauling Plant Capacity and Production Programme................................................................................8

3.1. Hauling Plant Capacity.................................................................................................................8

3.2. Production Programme...............................................................................................................10

3.3. Material and inputs.....................................................................................................................10

3.3.1. Raw and auxiliary materials.............................................................................................10

4. Technology and engineering..................................................................................................................11

4.1. Production Process......................................................................................................................11

4.2. Source of Technology.................................................................................................................12

4.3. Land use plan..............................................................................................................................12

5. Financial Requirement and Analysis......................................................................................................13

5.1. Fixed Capital...............................................................................................................................13

5.2. Working Capital..........................................................................................................................14

5.2.1. Operating Expense at full Capacity2.................................................................................14

5.2.1 Operating Expense............................................................................................................15

5.2.3. Summary of investment cost............................................................................................15

5.3. Financial analysis and Statements...............................................................................................16

5.3.1. Underlying Assumption...................................................................................................16

5.3.2. Sources of Fund...............................................................................................................16

5.4. Financial Statement.....................................................................................................................17

5.4.1. Income loss/statement......................................................................................................17

5.4.2. Cash flow Statement........................................................................................................18

5.5. Financial analysis........................................................................................................................19

6. Environmental impact of the project......................................................................................................20

Table 1 .Project Profile...............................................................................Error! Bookmark not defined.

Table 2 milled coffee Production(tone).......................................................................................................5

Table 3: Gross domestic product of industrial sector 1980/81.....................................................................6

Table 5 PRODUCTION Programme.........................................................................................................10

Table 6: proposed share of coffee bean suppliers......................................................................................10

Table 7Annual sacks bag requirement and cost estimates..........................................................................11

Table 8: Man power requirement and annual estimated cost.....................................................................14

Table 9.Summary of Total initial investment cost.....................................................................................16

Table 10wet coffee processing income/loss statement...............................................................................18

Table 11: Repayment schedule..................................................................................................................19

1 Project name coffee plantation farm

2. Product description and application

2.1. The significance of the project

C. Sources of social service

2.2. Project location

2.3. Project objectives

Table2 milled coffee Production (tone)

Year Milled coffee Growth Rate%

Table 3 Gross domestic product of industrial sector 1980/81

Year Million birr Growth Rate

Year Million birr Growth Rate

Year Projected demand Unsatisfied demand

3. Hauling Plant Capacity and Production Programme

table 5. production programme

S/N Description production programme

3.3. Material and inputs

Table 7Annual sacks bag requirement and cost estimates

Type Unit Price/unit Quantity total

4. Technology and engineering