PROMOTER: HUSEN AHMED

November, 2022

OROMIA, ADAMA
 1. Executive Summary
This business plan is a plan to rising of a number of exporting livestock animals in his own land of

fatting farms with a capacity exporting of 2,000 heads of cattle, 1,000 of Camels and 1,000 of Goats

and Sheep per annum respectively. Fattening means controlling what the animals eat so that valuable

high quality feed is used where it will generate better production.

The major inputs required are cattle and feed which are locally available.

Demand for cattle meat increase with the growth of population and income. The supply gap is

expected to reach 172,762 heads of cattle by the year 2021.

The proposer of this idea is Mr. Husen Ahmed also takes over all business with full responsibility and

accountability that was born and grown up in Oromia. Mr.. Husen Ahmed is married and got kids.

Mr. Husen Ahmed has been fully engaged in different business and Fattening businesses. Especially

Mr. Husen Ahmed is the owner of this livestock export in Adama city which is found in Lume district,

Jogo kebele.

The total working capital requirement for exporting livestock animals is estimated at about Birr 98.803

million, out of which Birr 27,226,899.89 working capital is required for fattening Cattle, Medication

and for animals feed. The plant will create employment opportunities for 21 persons.

The farm will have a forward linkage effect on food industries and a back ward linkage effect on the

animal feed plants and the agriculture sector. The establishment of such farm will also have a foreign

exchange earning effect to the country by supplying well fattened as well as export market standard

oxen to exporter.

The marketing research and tailored marketing strategy described in this business plan will result in
after-tax profits of 3,554,697.24 in Year 1 and increasing to nearly 7,181,118.91 in after-tax profits
within three years, and profit from sister company of school income after tax 365,870.00 despite
significant new advertising and renovation expenses.

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 2. Background and Description of the project

At present the Government of Ethiopia is aggressively working towards achieving the Development

Goals through all round and sustainable economic development. The central goal of the country’s

poverty Reduction Strategy is to build a free-market economic system which will enable the economy

to develop rapidly in order to extricate itself from dependence on food aid and render the poor the

main benefits of economic growth.

The major strategies devised by the government to achieve this objective, inter alias, include:

 Agriculture Development –more benefiting farmer

 judiciary and civil service reform,

 decentralization and empowerment ,and

 Capacity building.

Although the Government is still playing a leading role in the implementation of Agriculture

Development –Led industrialization (ADLI) strategy, the key role of the private sector in this regard is

also paramount. Export are the major components of Agriculture Development –Led industrialization

(ADLI).

It is with all this justifiable facts and the conducive government policy that pushed the promoter of
this proposal to establish export and import at Adama city which is intended to engage into export
livestock animals.

Livestock export is one of the eight priority sectors outlined by the Ethiopian government in its

growth and transformation plan (GTP), from which the government aims to collect half a billion

dollars in export revenue at the end of 2014/15 fiscal year. Last year, the country earned Above USD

250 million from MEAT AND LIVESTOCK EXPORT; ACCOURDING TO REPORT FROM THE MINISTRY

OF AGRICULTURE (MOA) 71 percent of this revenue (USB 177 million) was from the export of

26
livestock. Meat export during the same period accounted for only 29 percent of the total. The export

market for Ethiopian livestock is currently limited to the Middle East while there will be huge demand

in other part of the world in near future.

The promoter and owner of this livestock export obbo Husen Ahmed located at Lume district, East

Shoa Zone, Oromia Region. It was established in 28/01/2007 E.C with initial capital of birr 700,000

Before legally registered as exporter he was engaged in animal fattening and animal feed local sales

business for 6 years starting from 2007 E.C, Since its establishment the owner has been involved in

cattle fattening and export business and its operation has been expanding over the period. For

instance, the exported livestock items raised from one items (live cattle) at the start to four items (live

sheep, goat, camel and cattle) in 2007, and the countries that live stocks exported has increased from

Yemen to nine countries (Djibouti, Kuwait, Jordan, South Sudan, Lebanon, Egypt, Dubai, Saudi

Arabia). Therefore now Ato Husen’s business is one of the best performing and the most efficient live

stocks exporter in the country.

Fattening is the process by which cattle are fed, watered and medicated so that the cattle grow bigger,

costlier and meat consumers may have healthy beef.

The process involves the purchase of cattle in the rural market or here in Adama at comparably lower

prices and holding them in a well protected environment well equipped with feeding and medical

facilities.

Hence, this document is prepared to be submitted to banks; to obtain expansion loans intending to
finance working capital.

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 3. Organization and Management Plan

3.1. MANPOWER REQUIREMENT

The manpower requirement of the envisaged Export project has 21 persons. The list of required

manpower and corresponding labor cost for fatting project is given in Table 3.1.

Table 3.1

MANPOWER REQUIREMENT AND LABOUR COST

Salary ( Birr)
Sr. No. Description Req. No. Monthly Annual
1 General Manager 1 15,000.00 180,000.00
2 Export Manager 1 10,000.00 120,000.00
3 Secretary/ Cashier 1 1,500.00 18,000.00
4 Cattle Attendant 2 5,000.00 120,000.00
5 Salesperson 1 2,500.00 30,000.00
6 Ass. Feed Specialist 2 3,000.00 72,000.00
7 Veterinarian 2 5,000.00 120,000.00
8 Finance and Admin 1 3,500.00 42,000.00
9 Store Keeper 1 1,500.00 18,000.00
10 Accountant 1 3,000.00 36,000.00
11 Feeder 2 1,500.00 36,000.00
12 Janitor 2 1,000.00 24,000.00
13 Guard 4 1,200.00 57,600.00
Grand Total 21   873,600.00

3.2. TRAINING REQUIREMENT

Feeder

No Special training is required for the envisaged project

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 3.3. Organizational structure

General Manager

Deputy Manager

Secretary

Export Import
Finance & Admin
Department department

Store Cattle
Accountant Secretary/ Cashier
Attendant

Export of Live Stock, Hotel and Cereal Crops Performance (for the last 4 years)

Ato Husen has many potential foreign customers from different countries like from Dubai, Djibouti,

Kuwait, Jordan, Sudan, Lebanon, Egypt and Saudi Arabia. Being so, Ato Husen has registered on

outstanding export performance in supply live stocks to those foreign buyers and Hotel service

performance. This confirms that Ato Husen has sufficient experience on this business.

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 4. Market Study, Farm Capacity and Production Program

4.1. Market Study

4.1.1. Past Supply and Current Demand

Fattening

Livestock productivity depends on access to concentrated feed and fodder. Animal Feed production

and Animal Fattening have direct correlation. The range of possible uses of feed is limitless and new

ways of using it are being devised daily.

Cattle supply

In Ethiopia there are 47,570,675 total cattle supply 99.25 percent of the total cattle in the country

are local breeds. The remaining are hybrid and exotic breeds (CSA 2007).

Sheep supply

In Ethiopia there are 26.12 million Sheep supply about 74 percent are females, and about 26

percent are males (CSA 2007).

Goat supply

In Ethiopia there are 21.71 million goats’ supplies. Out of these total goats, about 69 percent are

females and 31 percent are males (CSA 2007).

Supply of feed

The supply of feed in Ethiopia is dominated by local products. Due to the limited production

capacity and supply of the country's producer, plan to establish Animal feed processing project to

minimize the gap in the project area.

Table below show relation of feed supply and number of fattening, which indicate low production

of animal feed compare with fattening, hence the country imports high feed from oversee market.

Table 4.1.1:- Supply of fattening and feed estimation of East Shoa zone based on (CSA 2007)

Years Fattening in millions Feed ( ton in thousands)

Cattle Sheep Goat Cattle Sheep Goat
2007 1.5 1.1 0.72 28,470 8,351 5,466

2008 1.84 1.6 1.4 34,923 12,147 10,628

2009 2.08 2.1 1.9 39,478 15,943 14,424

2010 2.4 2.6 2.4 45,552 19,739 18,220

2011 2.56 3.1 2.9 48,588 23,535 22,016

2012 2.88 3.6 3.4 54,662 27,331 25,812

2013 3.2 4.1 3.9 60,736 31,127 29,608

2014 3.36 4.6 4.4 63,772 34,923 33,404

2015 3.68 5.1 4.9 69,846 38,719 37,200

2016 4 5.6 5.4 75,920 42,515 40,996

2017 4.4 6.1 5.9 83,512 46,311 44,792

4.2. Projected Demand

Demand projection is made on the assumption that the demand for animal feed should grow with

the growth in size of livestock population, income of farmers and the attitude of farmers towards

the product. Hence, a modest growth rate of 10 percent is used to project the demand for animal

feed in the country.

For every 100 kg live weight, cattle will eat an average of 2.7–3 kg of dry matter daily if the ration is

palatable, but this will vary throughout the feeding period. For example, one 300 kg steer will eat 9–

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10 kg of feed a day, then the same 300 kg cattle could eat between 12 kg and 14 kg daily (12.3–

13.9 kg) for the same dry matter intake. (NSA government, department of primary industries, 2018)

Table 4.2:- Demand of fattening and feed estimation of East shoa zone based on (CSA 2007)

Years Fattening in millions Feed ( ton in thousands)

Cattle Sheep Goat Cattle Sheep Goat
2007 1.65 1.21 0.79 31,317 9,186 6,012

2008 1.99 1.76 1.54 38,415 13,361 11,690

2009 2.28 2.31 2 43,425 17,539 15,866

2010 2.28 2.86 2.64 50,107 21,712 20,042

2011 2.82 3.41 3.12 53,446 25,888 24,217

2012 3 3.96 3.74 60,128 30,064 28,393

2013 3.3 4.5 4.3 66,809 34,239 32,568

2014 3.9 4.95 4.73 70,149 38,415 36,744

2015 4 5.5 5.13 76,830 42,590 40,920

2016 4.4 6.1 5.64 83,512 46,766 45,065

2017 4.84 6.71 6.5 91,863 50,942 49,264

Remark, annual consumption needs 85 birr for cattle per day per head 85 birr for Camel per day

per head and 45 birr for sheep and goat per day per head.

Past Supply and Present Demand

Table depicts total exports of meat and meat products during the period of 1997-2006. Recent

development reveals remarkable growth in the export of meat from the country. According to the

Ethiopians Meat Producers and Exporters Association, on average 2979.21 tons of meat and

6,396.19 tone of livestock were exported annually of the middle east from 1997-2006. The

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Association expects continued increases in the meat and live animal in the coming years.

(Gebrehiwot Kebede, (2007) Haramaya University, Sheep and Goat Fattening and Breeding Project)

Table 4.2.A. Export of meat and live animals

Cattle, sheep and goat meat export Cattle, sheep and goat live animal
(metric tons) export (metric tons)

1997 1716.4 1304.7

1998 1529.4 1323.6

1999 2078.3 918.9

2000 1976.8 1766.3

2001 869.7 214.1

2002 662.5 165.7

2003 1722.2 607.1

2004 4007 3141.4

2005 7274.5 21226

2006 7955.3 33294.1

Total 29,792.1 63,961.9

Average 2979.21 6396.19

Source, National Bank of Ethiopia Annual Report 2006

4.3. Pricing and Distribution

The price of processed animal feed depends upon the availability and value of raw materials. In this

profile, the ex-factory price of animal feed to be produced by the project under consideration is

estimated to be average 85 Birr for each kind of feed per kilogram and selling price for animal will

be cattle 85 birr, camel 85 birr, sheep 45 birr and goat 45 birr per day. At the first year there will

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be 2,000 cattle, 1,000 Live Camel, 10,000 sheep and goats for exporting purpose and after a year it

will be increased by 10% every years. Price will be rise considering inflation rate by 10%.

4.4. Feature of the sector

Agriculture is the backbone of the economy and the most volatile sector mainly owing to its

dependency on rainfall and the associated seasonal shocks that affect productivity. More than 85%

of the Ethiopian population depends on agriculture for their livelihood. Within the context of the

Ethiopian economy, the Agriculture sector traditionally includes economic activities such as crop

and livestock production in which the crop sector has been the major driving element.

The Ethiopian economy is basically comprised of smallholder farming as well as medium and large

scale commercial farming. Relatively speaking, commercial farms are not significant in terms of

area cultivated and volume of production, even though the role has slightly increase in view of the

recent phenomena associated with the establishment of flourishing cut flower farms in the country

which is largely dominated by foreign investment.

Ethiopia is potentially a wealthy country, endowed with abundant resource conducive to the

agricultural development such as fertile soil and good rainfall over large regions suitable for

livestock fodder production and crop. Agriculture accounts for the lion share of the foreign

exchange earnings. The sector contributes about 90% for the total export of commodities. The

country’s industrial development programs are closely tied to value-added processing of

agricultural outputs with equal emphasis to both large & medium scale as well as small scale

manufacturing industries.

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 4.5. Beneficiaries

The country will get the contribution in its national income through domestic consumption and

export. This project will provide employment opportunity to the local population, this will raise the

living standards of the people working in this project, and they also learn the latest technologies in

animal feed production and fattening and also make use of them in their own farm. The regional

government will also generate the revenue in the form of land rent will be an additional source of

income on land resources.

The company, which is making investment on the land and doing lot of agricultural production

(production of grass and alfalfa for feed processing) activities in developing the land will be

benefitted in terms of return on their investment during the lease period.

4.6. Past and Present intervention

Fattening and animal feed production project has a technically strong, knowledgeable and

experienced team to execute the project on time. With the vast knowledge base in agri-business

activities, the company has tangible experience in making this project a success. Conflict in the area

may retard plan of project.

4.7. Justification of the project

Ethiopia has huge investment potentials for agricultural development and its processing including

livestock production and feed processing. Currently investment in agriculture sector is found to be

more attractive and profitable in diverse sub-sectors ranging from food products, industrial raw

materials to bio-fuel. The agriculture sector accounts for 47% of the Gross Domestic Products of the

country, provides 85% of employment and 90% of foreign currency earning.

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Moreover, the country has huge market potential for crop and livestock produced with comparative

advantage to the Middle East, Europe and Asia. For the past five consecutive years the agriculture

sector was growing faster with more than 11% average annual growth. In addition of the

contribution to the national growth, the growth has triggered to the increase in domestic market

has for both livestock and food crops.

Looking at the agro climatic condition i.e. average temperature, rainfall, physic-chemical properties

of the soil and the distribution of the rain fall give indication that the proposed land is suitable for

cultivation of various crops but especially fodder and grass. The physic-chemical properties of the

soil indicated in the information sheet provide further confidence for the success of the project.

Moreover, the planning on the financial part of the project i.e. investment, cash flow, return on

investment, profitability and cost benefit ratio will show a positive trend.

The expertise in marketing of farm produced in the local, national and international market will

provide an additional benefit to improve the financial health of the organization. The statistic

indicated in the financial report will provide us confidence in the project. It justifies the

investment and returns on the investment.

Promotion

To promote its products, the project will use different promotion means such as handbills and

posters, press releases in local newspapers and magazines, and on radio and TV. In addition,

seasonal promotions will be done especially for religious holidays. The promotion will be based on

particular types of products prepared for each occasion.

Generally speaking, cattle procurement is the initial stage of exporting firm. The second step is

keeping cattle in holding areas for quarantine and treatment purposes. Treatment includes

weighting, vaccination, Deeping, etc. Since animals in the quarantine programme receive adequate

26
treatment against parasite and diseases (external and internal), it is the most important practice in

the production process.

The envisaged livestock animals export quarantine project area will have a capacity of more than

2,250 heads once but at this time no cattle is in compound and will buy new cattle purchase from

market, in the first year and the objective is to export four batches per year with forty five days

feeding period per batch. These levels of operation at four developmental stages, is proposed for

proper management and efficient resources utilization in general. An average weight of each

animal after 90 days feeding period is assumed to be about 300 kilogram’s.

The exporting project requires Educated Farm Manager, Ass. Feed Specialist and veterinary and

other labors.

4.8. Farming Programme

The fattening firm output is expected to be about 70 per cent of its full capacity in the first year and

will grow to 80 and 90 per cent in the second and third year, respectively.

4.9. MATERIALS AND INPUTS

The required materials and their corresponding costs for the envisaged fattening firm and
importing are described in Table 5.4. As can be observed from above, the materials and inputs for
the project and vehicles include cattle, feed, vaccines and treatment materials for injection. The
cattle and feed are available locally while vehicles and vaccines and treatment chemicals are
imported outside of our country. The total cost of materials and inputs at full operation capacity of
the firm is estimated to be Birr 159,231,000.00 in the first year

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 4.10. UTILITIES

Electricity and water are the predominant utilities required for any fattening programme. The

utilities required and the corresponding cost is given in Table6. 5.5.

Table 5.5

UTILITIES REQUIREMENT & COST

Sr. No. Utility Qty. Unit Price Cost

1 Electricity[kWh] 40,000 0.4736 18,944

3 Water[m3] 10,000 3.25 32,500

  Total     51,444

5. FARM TECHNOLOGY AND ENGINEERING

5.1. FARM TECHNOLOGY

5.1.1. Production Process

Generally speaking, cattle procurement is the initial stage of fattening farm. The second step is

keeping cattle in holding areas for quarantine and treatment purposes. Treatment includes

weighing, vaccination, Deeping, etc. Since animals in the fattening programme receive adequate

treatment against parasite and diseases (external and internal), it is the most important practice in

the production process. Unhealthy and unproductive animals do not make good use of high quality

feed, which is scarce, therefore, animals poorly performing after 2 weeks, needs to be culled from

feed lots and sold in the local market. Well performing animals kept for three months are expected

to gain an average weight of 300 kilo grammes.

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 5.1.2. Source of Technology

The machinery and equipment required can be supplied by Hagbes Ethiopia, Moenco, if necessary

Nazareth Tractors Assembly PLC, etc.

5.2. Machinery and Equipment

The required machinery, equipment and tools are shown in Table 6.2. Accordingly the total costs of

machinery and equipment is estimated at Birr 363,540 is required in local currency.

6. Land, Building and Civil Works

In general terms, the total area required for quarantine the envisaged exporting livestock firm is

estimated at 1 hectares on rent.

However, the project under consideration is an urban agriculture project. Therefore, it is assumed

that the project will be located outside the industrial zones.

7. Financial Plan

The financial analysis of export and import project is based on the data presented in the previous

chapters and the following assumptions:-

Bank interest 15.50%

Discount cash flow 11%

Accounts receivable 30 days

Raw material local 30 days

Work in progress 90 days

Finished products 15 days

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Cash in hand 5 days

Accounts payable 30 days

Repair and maintenance 5% of machinery cost

7.1. TOTAL INVESTMENT COST

The total investment cost of the project including working capital is estimated at Birr

157,649,000.00 of which 31.72% per cent will be covered by bank and the rest had been covered by

the owner. The major breakdown of the total initial investment cost is shown in Table 8.1.

Table 7.1

INVESTMENT COST (Birr)

Description Total Financial Requirements (Birr) Bank Loan Owner Equity

Building & Construction 48,000,000.00 0.00 48,000,000.00
Vehicles 7,000,000.00 0.00 7,000,000.00
Equipments 299,000.00 0.00 299,000.00
Furniture and Fixture 850,000.00 0.00 850,000.00
Sub Total 106,149,000.00 0.00 106,149,000.00
2.Working capital 101,500,000.00 50,000,000.00 51,500,000.00
Sub Total 101,500,000.00 50,000,000.00 51,500,000.00
Total 157,649,000.00 50,000,000.00 157,649,000.00

Hence, this document is prepared to be submitted to Wugagen Bank to obtain working capital loans

intending to finance working capital, purchase of some necessary equipments and facilities that is

required to purchase 2,000 cattle, 10,000 live sheep & Goat, and 1,000 Live Camel for livestock

export and there feed to upgrade their exporting capacity for sell per year.

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 7.2. FINANCIAL PLAN

7.2.1. Profitability

Based on the projected profit and loss statement attached in the annex part, the project of livestock
exporting will generate a profit throughout its operation life. Annual net profit after tax will grow
from Birr 965,786.07 to Birr 2,836,545.42 Moreover, at the end of the project life the accumulated
cash flow amounts to Birr 250.630 million.

7.2.2. Ratios

In financial analysis financial ratios and efficiency ratios are used as an index or yardstick for

evaluating the financial position of a firm. It is also an indicator for the strength and weakness of

the firm or a project. Using the year-end balance sheet figures and other relevant data, the most

important ratios such as return on sales which is computed by dividing net income by revenue,

return on assets (operating income divided by assets), return on equity (net profit divided by equity)

and return on total investment (net profit plus interest divided by total investment) has been carried

out over the period of the project life and all the results are found to be satisfactory for farther

please refer from Annex.

7.2.3. Break-even Analysis

The break-even analysis establishes a relationship between operation costs and revenues. It

indicates the level at which costs and revenue are in equilibrium. To this end, the break-even point

of the project including cost of finance when it starts to operate at full capacity (year 2) is estimated

by using income statement projection.

7.2.4. Internal Rate of Return

The internal rate of return (IRR) is the annualized effective compounded return rate that can be

earned on the invested capital, i.e., the yield on the investment. Put another way, the internal rate of

26
return for an investment is the discount rate that makes the net present value of the investment's

income stream total to zero. It is an indicator of the efficiency or quality of an investment. A project

is a good investment proposition if its IRR is greater than the rate of return that could be earned by

alternate investments or putting the money in a bank account. Accordingly, the IRR of this porject

is computed to be 21 % indicating the vaiability of the project.

7.2.5. Net Present Value

Net present value (NPV) is defined as the total present (discounted) value of a time series of cash

flows. NPV aggregates cash flows that occur during different periods of time during the life of a

project in to a common measuring unit i.e. present value. It is a standard method for using the

time value of money to appraise long-term projects. NPV is an indicator of how much value an

investment or project adds to the capital invested. In principal a project is accepted if the NPV is

non-negative.

7.2.6. ECONOMIC BENEFITS

The project can create employment for 21 persons. In addition to supply of the domestic needs, the

project will generate Birr 4,933,265.26 in terms of tax revenue. The establishment of such farm

will also have a foreign exchange earning effect to the country by exporting its products. The farm

will have a forward linkage effect on food industries and a back ward linkage effect on the animal

feed plants and the agriculture sector

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8. ANNEX

26
 HUSEN AHMED BUSINESS
5 YEARS Projected Income Statement
Ended on June 30…..
Table 8.1
Project Years
Description 1 2 3 4 5
Sales revenue 162,000,000.00 178,200,000.00 196,020,000.00 215,622,000.00 237,184,200.00

Cost of sales          
Purchase of cattle 155,225,000.00 170,747,500.00 187,822,250.00 206,604,475.00 227,264,922.50
Gross profit 6,775,000.00 7,452,500.00 8,197,750.00 9,017,525.00 9,919,277.50
Wages & Salaries 873,600 960,960 1,057,056 1,162,762 1,279,038
Travel & perdiem 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Postal, Telephone and Telex. 5,000.00 5,500.00 6,050.00 6,655.00 7,320.50
Fuel & Lubricants 41,000.00 45,100.00 49,610.00 54,571.00 60,028.10
Utilities 51,444.00 56,588.40 62,247.24 68,471.96 75,319.16
Legal & Audit fee 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
Transportation cost 85,000.00 89,250.00 93,712.50 98,398.13 103,318.03
Deprec &Amort 980,000.00 980,000.00 980,000.00 980,000.00 980,000.00
Miscellaneous Expanse 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Promotion expense 6,000.00 6,600.00 7,260.00 7,986.00 8,784.60
Total Operating cost 2,107,044.00 2,208,998.40 2,320,935.74 2,443,843.69 2,578,808.15
Profit Before int.& tax 4,667,956.00 5,243,501.60 5,876,814.26 6,573,681.31 7,340,469.35
Interest Expense 3,288,261.61 3,288,261.61 3,288,261.61 3,288,261.61 3,288,261.61
Profit before tax 1,379,694.39 1,955,239.99 2,588,552.65 3,285,419.70 4,052,207.74
Profit tax 413,908.32 586,572.00 776,565.80 985,625.91 1,215,662.32
Net profit 965,786.07 1,368,667.99 1,811,986.86 2,299,793.79 2,836,545.42

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 Appendix 8.2

HUSEN AHMED BUSINESS

Balance sheet
FOR THE YEAR ENDED SENE 30,
Assets   YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Current assets      
Cash 250,000.00 965,786.07 1,368,667.99 1,811,986.86 2,299,793.79
Merchandise Inventory 2,129,292.32 2,150,585.24 2,365,643.77 2,602,208.14 2,862,428.96
  2,379,292.32 3,116,371.32 3,734,311.76 4,414,195.00 5,162,222.75
Fixed assets      
Office furniture 850,000.00 850,000.00 850,000.00 850,000.00 850,000.00
Vehicle 7,000,000.00 7,000,000.00 7,000,000.00 7,000,000.00 7,000,000.00
Building 98,000,000.00 98,000,000.00 98,000,000.00 98,000,000.00 98,000,000.00
Total Fixed Assets 105,850,000.00 105,850,000.00 105,850,000.00 105,850,000.00 105,850,000.00
  Total Assets 108,229,292.32 108,966,371.32 109,584,311.76 110,264,195.00 111,012,222.75
Liabilitie
s        
Bank loan 50,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00
  Total Liabilities 50,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00
Capital        
CAPITAL 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Additional Investment 57,243,506.25 57,577,703.32 57,752,324.21 57,944,401.21 58,155,677.33
Net Income 965,786.07 1,368,667.99 1,811,986.86 2,299,793.79 2,836,545.42
Total Capital 58,229,292.32 58,966,371.31 59,584,311.07 60,264,195.00 61,012,222.75
  Total Liabilities and Capital 108,229,292.32 108,966,371.31 109,584,311.07 110,264,195.00 111,012,222.75

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 Appendix 8.3

HUSEN AHMED BUSINESS

5 Years Projected Cash Flow Statement

  YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Beginning Cash Balance 50,000.00 54,110,546.12 58,573,974.17 63,480,721.07 68,875,274.91
Plus - Cash from revenue collection 162,000,000.00 178,200,000.00 196,020,000.00 215,622,000.00 237,184,200.00
Plus - Cash from bank loan 100,000,000.00 0 0 0 0
Plus- Depreciation Expense 0.00 0.00 0.00 0.00 0.00
Total Inflow 212,050,000.00 232,310,546.12 254,593,974.17 279,102,721.07 306,059,474.91
Less- Operating Expenses 2,107,044.00 2,208,998.40 2,320,935.74 2,443,843.69 2,578,808.15
Less - Loan repayment 193,501.56 193,501.56 193,501.56 193,501.56 193,501.56
Less- Cost of goods sold 155,225,000.00 170,747,500.00 187,822,250.00 206,604,475.00 227,264,922.50
Profit taxes 413,908.32 586,572.00 776,565.80 985,625.91 1,215,662.32
Total Outflow 157,939,453.88 173,736,571.96 191,113,253.10 210,227,446.16 231,252,894.53
Ending Balance ( Net ) 54,110,546.12 58,573,974.17 63,480,721.07 68,875,274.91 74,806,580.38

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 Appendix 8.4

SELLING PRICE OF THE BUSINESS

DESCRIPTION SALES
Sr. No. 1 2 3
1 Live sheep & Goat (heads) 10,000.00 11,000.00 12,100.00
  Selling Prices 5,700.00 5,700.00 5,700.00
  57,000,000.00 62,700,000.00 68,970,000.00
2 Live Camel 2,000.00 2,200.00 2,420.00
  Selling Prices 35,000.00 35,000.00 35,000.00
  70,000,000.00 77,000,000.00 84,700,000.00
3 Live Cattle 1,000.00 1,100.00 1,210.00
  Selling Prices 35,000.00 35,000.00 35,000.00
  35,000,000.00 38,500,000.00 42,350,000.00
TOTAL REVENUE 162,000,000.00 178,200,000.00 196,020,000.00
 Appendix 8.5

PURCHASING COST OF THE BUSINESS

 Sr 1st year 2nd year 3st year

.
No
. Items Unit Cost Qty Total cost Qty Total cost Qty Total cost
1 Live sheep & Goat 4,150.00 10,000.00 41,500,000.00 11,000.00 45,650,000.00 12,100.00 50,215,000.00
1.1
. Transportation Cost 10.03 10,000.00 100,300.00 11,000.00 110,330.00 12,100.00 121,363.00
Feeding cost per head/day
1.2 (birr) 85 birr/day*30 45 10,000.00 13,500,000.00 11,000.00 14,850,000.00 12,100.00 16,335,000.00
2 Live Camel 25,500.00 2000 51,000,000.00 2200 56,100,000.00 2,420.00 61,710,000.00

2.1 Transportation Cost 500/head 150 2000 300,000.00 2200 330,000.00 2,420.00 363,000.00
Feeding cost per head/day
2.2 (birr) 85 birr/day*30 85 2000 5,100,000.00 2200 5,610,000.00 2,420.00 6,171,000.00
3 Live Cattle 20,000.00 1,000.00 20,000,000.00 1,100.00 22,000,000.00 1,210.00 24,200,000.00
3.1
. Transportation Cost 100.00 1,000.00 100,000.00 1,100.00 110,000.00 1,210.00 121,000.00
3.2 Feed (85 birr/day/ox) 85birr *
. ox*270days 85 1,000.00 22,950,000.00 1,100.00 25,245,000.00 1,210.00 27,769,500.00
Vaccine and Treatment
Injection
4 8.65birr/head/2Months 51.9 13,000.00 674,700.00   638,000.00   701,800.00
  Grand Total 155,225,000   170,643,330   187,707,663

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Table of Contents

26
1. Executive Summary.....................................................................................................................................2

2. Background and Description of the project................................................................................................3

3. Organization and Management Plan..........................................................................................................5

3.1. MANPOWER REQUIREMENT..............................................................................................................5

3.2. TRAINING REQUIREMENT..................................................................................................................5

4. Market Study, Farm Capacity and Production Program..............................................................................7

4.1. Market Study.......................................................................................................................................7

4.1.1. Past Supply and Current Demand...............................................................................................7

4.2. Projected Demand...............................................................................................................................8

4.3. Pricing and Distribution....................................................................................................................10

4.4. Feature of the sector..........................................................................................................................11

4.5. Beneficiaries......................................................................................................................................12

4.6. Past and Present intervention............................................................................................................12

4.7. Justification of the project.................................................................................................................12

4.8. Farming Programme..........................................................................................................................14

4.9. MATERIALS AND INPUTS..................................................................................................................14

4.10. UTILITIES.......................................................................................................................................15

5. FARM TECHNOLOGY AND ENGINEERING...............................................................................................15

5.1. FARM TECHNOLOGY........................................................................................................................15

5.1.1. Production Process.....................................................................................................................15

5.1.2. Source of Technology................................................................................................................16

5.2. Machinery and Equipment................................................................................................................16

6. Land, Building and Civil Works........................................................................................................16

7. Financial Plan............................................................................................................................................16

7.1. TOTAL INVESTMENT COST...............................................................................................................17

7.2. FINANCIAL PLAN...............................................................................................................................18

8. ANNEX.......................................................................................................................................................20

Appendix 8.2.....................................................................................................................................................22
Appendix 8.3.....................................................................................................................................................23

Appendix 8.4.....................................................................................................................................................24

SELLING PRICE OF THE BUSINESS....................................................................................................................24

Appendix 8.5.....................................................................................................................................................25

PURCHASING COST OF THE BUSINESS............................................................................................................25

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