DEVELOPMENT BANK OF ETHIOPIA

APPLIED RESEARCH DIRECTORATE

Raw Data and Information on Pulse and Oil crop Processing
& Marketing (1st update)

Prepared By:
Mekonnen fekadu loan Officer

Anteneh Beziye Sr. market research Officer

Revised By:
Anteneh Mulugeta Team Manager
Million jarso Technical Team Manager

Approved By: commodity and market research Approval committee

NOV, 2023

1. Introduction...................................................................................................................................................7
 1.1. Background...........................................................................................................................................7
1.2. Objectives Of The Study.......................................................................................................................9
1.3. Methodology.........................................................................................................................................9
1.3.1. Sources Of Data.............................................................................................................................9
1.4. Scope And Limitations Of The Study....................................................................................................9
2. Commodity Description..............................................................................................................................10
3. Raw Material Study.....................................................................................................................................11
3.1. Description Of Major Raw Material....................................................................................................11
3.2. Availability Of Raw Materials.............................................................................................................12
3.3. Supply Of Major Raw Material...........................................................................................................13
3.3.1 Domestic Production.......................................................................................................................13
3.3.2 Import..............................................................................................................................................15
3.4. Demand Of Raw Materials..................................................................................................................15
1.2. Marketing Arrangement For Raw Materials And Inputs.....................................................................16
1.3. Price Trend And Current Purchase Price Of Materials And Inputs......................................................16
4. Processing Of Pulse And Oil Crops.............................................................................................................17
4.1. Cleaning Process.................................................................................................................................17
4.2. Drying Process....................................................................................................................................18
4.3. Sorting Process....................................................................................................................................18
4.4. Dehulling Or Decortication Process....................................................................................................19
4.5. Splitting Process..................................................................................................................................19
4.6. Milling.................................................................................................................................................20
4.7. Roasting..............................................................................................................................................22
4.8. Fractionating.......................................................................................................................................23
4.8.1. Wet Method.................................................................................................................................23
4.8.2. Dry Method.................................................................................................................................24
4.9. List Of Required Machineries And Equipment’s.................................................................................24
5. Market Study For Processed Pulse Crop And Oil Crop...............................................................................25
5.1. World Production Of Pulse Crop And Oil Crop Processing Product...................................................25
5.1.1. World Production........................................................................................................................25
 5.2. Market Segmentation Of Pulse Crop And Oil Crop Processing Products............................................29
5.3. Demand Situation................................................................................................................................29
5.3.1. Demand Driving Factors.............................................................................................................29
5.3.2. Domestic Demand.......................................................................................................................30
5.3.3. Domestic Demand Of Pulse Crop And Oil Crop Processing Products.........................................31
5.3.4. Export Demand Of Pulse Crop And Oil Seed Processing............................................................31
5.4. Supply Situation..................................................................................................................................33
5.4.1. Domestic Production...................................................................................................................33
5.4.2. Import Data Of Proceed Pulse Crop And Oil Crop......................................................................34
5.5. Marketing Channels And Value Chain................................................................................................34
6. Pull, Push And Success Factors...................................................................................................................35
6.1. Pull Factors..........................................................................................................................................35
6.2. Push Factors........................................................................................................................................35
6.3. Success Factors...................................................................................................................................36
6.4. Problems..............................................................................................................................................36
7. Basic Assumptions, Technical-Coffecient And Parameters.......................................................................37
7.1. Assumption.........................................................................................................................................37
7.2. Revenue...............................................................................................................................................37
7.3. Operational Cost..................................................................................................................................39
7.4. Machinery And Equipment...............................................................................................................40
7.5. Vehicles..............................................................................................................................................40
7.6. Insurance............................................................................................................................................40
7.7. Working Capital Determination..........................................................................................................42
8. Reference......................................................................................................................................................Ii
List of Tables

Table 1: commercial farm production of pulse and oilseed crops for the year 2017-2021(in tone)......10
Table 2:the peasant farm production of crops for the year 2017-2021 (in tone)....................................10
Table 3: Utilization rate of crop production in Ethiopia.........................................................................10
Table 4 :Peasant Farm total production less quantity utilized for seed, animal feed and other purposes,
2016 - 2020 (in tons)...............................................................................................................................11
Table 5: crop production after reduction of post-harvest lose (in tone).................................................11
Table 6: total domestic supply of pulse &oilseed (sesame) crops for the last five years (in tone)........11
Table 7: Imported quantity of Raw materials, 2017-2021 (in tonnes)...................................................12
Table 8: Total supply of raw materials including imported quantity from abroad (in tone).................12
Table 9: Projected domestic supply of raw materials, 2022 to 2026 (in tone).......................................13
Table 10: Exported quantity of Raw materials (in tons).........................................................................13
Table 11: Projected raw materials export demand (in tons), 2022 – 2026.............................................13
Table 12: Estimated supply demand gap for major raw materials (in tons), 2020 – 2026.....................14
Table 13: List of required machineries and equipment..........................................................................23
Table 14: World Exporter of processed oil seed (Sesame seed)............................................................25
Table 15: World Importer of processed Oil seed (Sesame seed.............................................................26
Table 16: World Importer of pulse crop.................................................................................................26
Table 17: World Exporter of pulse crop.................................................................................................27
Table 18: Export amount of processed oil seed in kg.............................................................................30
Table 19: Export amount of processed Pulse crop in kg........................................................................31
Table 20; Total demand Projection of processed oil crop and pulse crop..............................................31
Table 21; Domestic Production of processed oil Seed in Ethiopia Hs Code (12074090 and 12072100)
................................................................................................................................................................32
Table 22: Import Trend ofPulse Crop and Oil Crop in volume (in ton) (2016-2020)............................32
Table 23: The average domestic production projection.........................................................................33
Table 24: Import projection of processed pulse and oil products in volume in ton (2021/22-2026/27) 33
Table 25: Aggregate Supply Projection of Pulse Crop and Oil Crop Processing in ton........................34
Table 26: manpower Minimum Requirement.........................................................................................37
Table 27: Price of product......................................................................................................................44
Table 28: Price of Material and inputs...................................................................................................45
Table 29: Furniture and fixture requirement..........................................................................................47
Table 30: Uniform and clothing.............................................................................................................47
Table 31: Working capital determination...............................................................................................48

List of figures

Figure 1: Flow chart of pulse process.....................................................................................................24

Figure 2: Flow diagram of milling process.............................................................................................26
Figure 3: Marketing Channel for Pulse Crop and Oil Crop Processing products..................................40
Figure 4: Pulse Crop and Oil Crop Processing products processing commodity study and team surve 37
Acronyms

GDP: Gross Domestic Product

COVID:Corona Virus Disease

USD:United State dollar

FAO: Food and Agricultural Organization

CSA: Central Statistics Agency

ECX:Ethiopian Commodity Exchange

PCC: Per capital Consumption

ITC:International Trade Centre

UAE:United Arab Emirates

E.C.: Ethiopian Calendar

1. INTRODUCTION
1.1. Background
In 2021/22, Ethiopia’s economy grew by 5.3% compared to 5.6% in 2020/21. Growth was negatively
impacted by the effects of drought in much of the country’s eastern and southern regions, Russia’s
invasion of Ukraine, civil conflict in the north, central and west of Ethiopia and the lingering effects of
the COVID-19 pandemic. Growth in 2021/22 was led by services, which grew by 7.6%, above the 6.3%
in 2020/21, as the trade and the real estate sectors recovered. Agriculture grew by 6.1% in 2021/22, above
the 5.5% in 2020/21, mainly due to the expansion of cluster farming and use of improved agricultural
technology. Lastly, industry grew by 4.9% in 2021/22, below the 7.3% in 2020/21, due to COVID-19-
induced disruptions to supply chains, foreign exchange constraints and conflict. Overall, agriculture,
industry, and services accounted for 32.4%, 28.9% and 40% of GDP, respectively, in 2021/22. On the
demand side, growth was driven by private consumption and investment. Comparatively, the recent GDP
growth rates are not bad, but remain below the Pre-COVID growth rates of 6-8%

Agriculture employs 80% of the labor force and accounts for 42% of the GDP, mainly at smallholdings.
The highlands are highly fertile, but are threatened by overpopulation causing deforestation and erosion.
Most of the farming is rainfed and droughts might cause famine. Coffee, oilseeds, chat, and pulses are the
main export products. The export based flower industry is booming. Good growing conditions, low costs
and government investment incentives attract Ethiopian growers as well as those from other countries
such as the Netherlands, Israel and India. The Ethiopian government has indicated that the oilseeds
sesame seed, Niger seed, and safflower seed are high-priority export crops

Ethiopia has an attractive portfolio of high value specialty oilseeds for export markets. It is in the top 5
producing countries for sesame seed, linseed and niger seed. In addition, specialty seeds like safflower
seed and castor beans are grown in Ethiopia. Most other oilseeds produced in Ethiopia (soybeans, cotton
seed, rapeseed etc.) are commodities. For these commodities it will be difficult for Ethiopia to compete on
the world market due to its relatively low volumes, low quality and high handling and transport costs.
These oilseeds are important for local consumption. Oilseeds are the second export earner of Ethiopia.
Growth and improvement of the oilseed sector can substantially contribute to the economic development
at national, regional level and at family level. Oilseeds are considered as high value export products by
the Ethiopian government. The government enhances the oilseeds sector by investment incentives (e.g.
duty and tax income exemptions from 2 to 8 years for foreign investments).
Ethiopia’s pulse and oilseed sector plays an important role in generating foreign exchange earnings and
supporting the livelihoods of market actors across the value chain. Oilseed crops are the third largest
foreign exchange earners, next to coffee and cut flowers, and the oilseeds of sesame, soybean, and Niger
seed contribute to nearly 17 percent of Ethiopia’s agricultural exports. In the 2019/20 marketing year
(October to September), exports of sesame, Niger seed, and soybeans generated $376 million in foreign
exchange earnings. A survey report of Central Statistics Agency (CSA) shows close to 1.4 million
farmers produce oilseed crops in the country.

Pulses are rich and low-cost sources of dietary proteins and nutrients for a large part of the
World’s population. Pulses are consumed in various forms after suitable processing. The terms
“legumes” and “pulses” are used interchangeably because all pulses are considered legumes but
not all legumes are considered pulses. The term “pulse”, as used by the Food and Agriculture
Organization (FAO), is exclusively for crops harvested solely for the dry seed of leguminous
plants. However, the FAO recognizes 11 primary pulse classes as following: dry beans, dry
broad beans, dry peas, chickpea, dry cowpea, pigeon pea, lentil, Bambara groundnut, vetch,
lupines and minor pulses.

Pulse and oil seed processing is one of the earliest and most important of all food technologies
and forms a large and important part of the food production chain. Pulses are well known for
their nutritional and functional value. The nutritional importance of pulses as an economic source
of proteins, carbohydrates, minerals, and vitamins has been recognized throughout the world .In
addition to be the good source of nutrients; pulses reduce the risk of suffering cardiovascular
diseases, diabetes and some types of cancer. Pulse crops were first domesticated at the beginning
of agriculture more than 8,000 years ago in a fertile band of land stretching from Turkey to
Iran.India is the largest producer and consumer of pulse. Other important producers of pulses are
Pakistan, Turkey, Iran, Australia, Canada, US, Myanmar, Bangladesh and Ethiopia.

In general they are methods of transforming whole grains into forms suitable for consumption or
for conversion into consumable products. For converting the raw material to consumption stage,
pulses go through various processing involves: cleaning, grading, conveying, conditioning, DE
husking, drying, grinding, roasting, puffing, husk separation, slitting, polishing etc…
These operations improve the appearance, texture, culinary properties and palatability and
reduces the cooking time .DE husking and cooking are essential and important component of
processing of chickpea at enhance the digestibility of essential nutrients of grains.
Since Development Bank is a government policy bank, it is an institution that provides financial support
to the sectors that the government prioritizes, and to provide financial support to this sector. In line with
this responsibility, the Bank established applied Research Directorate to undertake study and to forward
valuable data and information to its customer. This is a document which comprises 1st updated fasten
basic raw data and information on pulse and oil seed processing and Marketing which could assist during
the course of financing of same.

1.2.Objectives of the Study

The general objective of the study is to produce a document that will serve as a source of data
and information (reference) for appraisal of projects related to the sector and for making proper
decision in the process of delivering credit to prospective borrowers.

1.3. Methodology
1.3.1. Sources of Data

Both primary and secondary sources of data are employed in the study. Primary data was
collected from pulse and oil cropprocessing factory and secondary data were collected from
different sources such as CSA, FAO, report, survey studies were also referred.

1.4. Scope and Limitations of the Study

The scope of the study mainly focused on processed pulses crop mainly clean and sort (soya bean,
Beans, Chickpeas, Sesame,Mengbean,Haricot bean,lentils,gibto,pea’s,and vetch) and Processed
sesame (Tahina) Processing and marketing in Ethiopia.

The main limitations of the study were the lack of adequate production data and the price trend
of raw materials
2. COMMODITY DESCRIPTION
WHO and FAO (2007) and FAO (2016) defined pulses crops as dry seeds of leguminous plants
which are distinguished from leguminous oil seeds by their low fat content. Dried beans, lentils,
chickpeas and peas are the most commonly known and consumed types of pulses. Pulses have
many shapes and sizes and can be found indifferent climatic conditions across Sub-Saharan
Africa. They are the edible seeds of plants of the legume family(grain legumes) and they have in
common that they grow in pods and can be dried and stored for longer periods of time without
refrigeration. Mostly soybean and groundnut are considered as grain legumes, but because
theyare primarily used for oil extraction, though soybean and groundnut are not considered as
pulses they have thesame advantages for human health and environmental sustainability as
pulses (Koromaet al.,2016).

Pulses, or pulse crops are leguminous crops which produce a seed inside a pod, but are not
generally consumed as a green vegetable. A legume refers to any plant from the Fabaceae family
that would include its leaves, stems, and pods. A pulse is the edible seed from a legume plant.
Dry beans, dry peas, lentils, chickpeas, and vetch are some examples. They are important due to
their high protein and essential amino acid content, and for their nitrogen fixing capacity.

Pulses and oilseed go through several processes before they are ready to be used either as a
plated item or as an ingredient in food preparations. These processes can include cleaning,
drying, sorting, splitting, milling, and fractionating. Depending on the pulse and its intended use,
other steps like de-hulling (decorticating), puffing, roasting, and grinding may be included as
well. Oilseeds (sesame) processing is also seems like pulse processing.
3. RAW MATERIAL STUDY
Major raw materials used in the processing of pulse and oilseeds are depicted below.

 Sesame
 Mung bean
 Haricot bean
 Soya bean
 Bean
 Chickpeas
 lentils
 gibto
 peas
 vetch
Packing Materials

 PP bag
 Labelling materials
 Plastic Bucket for packaging of processed sesame(crude)
 Sewing thread

3.1. Description of major raw material

Soya been is a species of legume native to East Asia, widely grown for its edible bean, which
has numerous uses. Soy beans contain significant amounts of phytic acid, dietary minerals B
vitamins and. The soybean (Glycine max) is the most economically important bean in the world,
providing vegetable protein for millions of people and ingredients for hundreds of chemical
products

Bean: is the seed of one of several genera of the flowering plant family Fabaceaewhich are used
as vegetables for human or animal food. Beans are high in protein complex carbohydrates, folate,
and iron.
Sesame: is a flowering plant in the genus Sesamum, also called benne. Numerous wild relatives
occur in Africa and a smaller number in India. Sesame seed is considered to be the oldest oilseed
crop known to humanity.

Chickpeas: Chickpeas are a type of legume which is called shimbra in Ethiopia. Their nutrients
have various health benefits. Chickpeas contain a range of nutrients, including protein, which is
necessary for bone, muscle, and skin health

Haricot beans are small dry white beans which are a staple in baked bean dishes along with
soups and chilli’s.

Lentils: like beans, are legumes? They're high-protein, edible pulses that grow in pods.

Mung beans (masho) are small, green beans that belong to the legume family. It may protect
against heat stroke, promote weight loss and lower cholesterol, blood pressure

3.2. Availability of raw materials

The raw materials are available locally market from Ethiopian commodity exchange (ECX),
primary market (investors) and contract farming. The major raw materials market transaction is
conducted by Ethiopian commodity exchange (ECX). Packaging and labelling materials are
available locally.

Table 1 Pulse producing areas and seasons

Pulse producing areas and seasons

Pulse type Cultivation area Sowing and harvesting season

Amhara ( Eastern Shewa ), Sowing : June

White Pea Bean Oromia ( Western &
Eastern Harergea ), Arusi Harvesting : Sep-October.

Red Pea Bean Oromia ( West Arsi ), Sowing : March

around Shashemane, parts
Harvesting : May/June
of Eastern Shewa Alaba,
 Kenebata
Pinto Bean South Region Segn Zone Sowing : March/April Harvesting : June

Arusi Bale & Northern Sowing : June/July

Horse Bean
Shewa Harvesting : November/December

Benishangul, Metekel Sowing : June

Soya Bean
Zone, around Assosa Harvesting : December/January

Amhara ( Northern Shewa Sowing : Rain Base March/April & Irrigation

Mung bean
Robit ) Harvesting : June/July

Amhara, in the South,

Tigray and Oromia Sowing : half of August/September Harvesting
Chickpea
( potential : Benishangul, : November/January

Somali Afar, Hareri )

Sowing : May
Lupin Gojam
Harvesting : January

Sowing : August/September Harvesting :

Vetch Eastern Gojam
November

Source; ethiopiapulsesbooklet20201016webpdf (intracen.org)

3.3. Supply of major raw material

The major raw materials are produced locally by peasant farmers and commercial farms. The
lion share of domestic production is covered by peasant farms.

3.3.1 Domestic production

Domestic productions of pulse crops are originating mainly from two source; peasant farms and
commercial farms.
  Commercial farm production of Raw materials
The commercial farms total production of crop is shown on the table below.

Table 2: commercial farm production of pulse and oilseed crops for the year 2018-2022(in ton)

year
Description 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022
1,025.1
pulse 1,111.72 1,072.80 1,048.70 4 1,251,79
oilseed(sesame) 2,313.20 2,319.84 2,270.14 2,331,19 2,102,31
Source: CSA, Report on large and medium scale Commercial farm

 Peasant farm Production of Crops (Raw materials)

The peasant farm total production of pulse and oilseed (sesame) crops or raw materials is shown
on the table below.
Table 3 the peasant farm production of crops for the year 2018-2022 (in ton)

year
Description
2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

pulse 29,785,881 30,113.48 30,051.99 29,990.63 32,931,98

oilseed(sesame) 25,590,343 20,166,464 26,272,202 26,025,763 13,780,714

Source, Report on Private peasant farm

Table 4: Utilization rate of crop production in Ethiopia

Description 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Pulse
seed 13.72% 13.98% 14.46% 15% 10.42%
animal feed 0.05% 0.05% 0.40% 3% 0.21%
other 1.59% 2.00% 2.54% 3% 0.89%
Oilseed(sesame)
seed 10.71% 13.05% 14.13% 10.65% 6.51%
animal feed 0.01% 0% 0% 0% 0%
other 1.31% 0.42% 7% 2.02% 2.49%
Source: Source: CSA, Report on Crop and livestock Utilization

 Post-harvest losses
Due to less post-harvest handling practice in Ethiopia there is loss from annual agricultural
production (from both commercial and peasant farms). As indicated in the Journal of Stored
Products and Postharvest Research titled as ‘Post-harvest losses and handling practices of
durable and perishable crops produced in relation with food security of households in Ethiopia:
annual post-harvest loss rate for pulses and oilseed is 8%.

3.3.2 Import
Imported amount of raw materials is shown on the table below.

Table 5: Imported quantity of Raw materials, 2018-2022 (ton)

year
Description HS code
2018 2019 2020 2021 2022

33,044. 88,868. 230,807. 215,008. 219,095.

Pulse 0713
0 0 0 0 0

oilseed(sesame) 120740 3 1 1 1 3

Source: ITC Trade Map

Note: imported quantity is the aggregated of both processed and unprocessed of crops. There is
no segregated import data

3.4. Demand of Raw materials

As the information obtained from field survey export market, Edible oil producing industries
(small scale, medium scale and large scale industries) and household consumption, are main
demanders of locally produced raw materials (pulses and oilseeds).
Estimation of quantity demand for edible oil industries, exporters, household consumption and
other industries requires full-fledged data that shows annual raw materials consumption of each
industry in Ethiopia. But there is no such organized data for entire industries. Hence,
quantification of the raw materials demand done based on export amounts of the raw materials.
The export quantity of crops includes impurities before processed.
Table 6: Exported quantity of Raw materials (in tons)
Description Year

2018 2019 2020 2021 2022

Pulse 343,355 314,552 221,776 182,617 191,826

oilseed(sesame) 228,197 218,334 197,066 145,892 127,581

Source: ITC Trade Map

1.2. Marketing Arrangement for raw materials and inputs

Marketing arrangement of materials and inputs is an agreement made between the two parties’
i.e. the seller and buyer about the means of transportation, ownership transfer and other legal
agreement. The modality of payment is on cash bases.
The raw materials (pulse oilseed) crops are purchased from Ethiopian commodity exchange
(ECX), Primary market (investors) and Contract farming
1.3. Price Trend and Current Purchase Price of Materials and Inputs
According to data from field survey, the market price of raw materials fluctuating over time (it is
lower during January to March and high during August to November). Most farmers are in need
of cash to pay for land tax and other input credit during the harvest season (December to
February). Due to lack of combined data we can’t show price trend but the current purchase price
of major raw materials are stated in the parameter part of the document.
 4. PROCESSING OF PULSE AND OIL CROPS

 Pulse and oil crops go through several processes before they are ready to be used either as
a plated item or as an ingredient in food preparations. There is no common processing method
for all types of pulses. However, some general operations of pulse and oil crops processes can
include cleaning, drying, sorting, splitting, milling, and fractionating. Depending on the crops
and its intended use, other steps like de-hulling (decorticating), puffing, roasting, and grinding
may be included as well.

 Once the field dried pulse product is received at the processing facility it is visually
inspected for color and general quality and then loaded into storage bins. Storage of the newly
received product is key to quality and optimum preservation of the crop. Each crop requires
slightly different storage conditions, so humidity and temperature are controlled to maintain the
best conditions for preservation and to eliminate the possibility of pest or fungal infestation. As
the product is dropped from the receiving bins for initial air cleaning, magnets are used to attract
and remove any metal debris or stones from the product. In addition, many processors conduct a
second and final screening with rare earth magnets to ensure removal of metal before after the
product has been bagged.

 After completion of processing, the product is bagged and shipped to the customer.
Quality checks vary from one processor to another, including inspection and packaging methods
used before shipment. Pulses may be packed and shipped after cleaning or might go under
further processing. The most common practice is de-hulling and splitting. This takes the seed
coat off and makes the pulses easier to digest while improving other qualities.

4.1. Cleaning Process

The first step in the processing regimen of a legume is cleaning. The cleaning process usually
starts with a screen cleaner and aspirator to take out coarse and fine impurities as well as dust.
Screen cleaners are available in different types and sizes but they usually consist of flat sieves
with slotted or round holes to separate fine and coarse impurities based on size.
Most pulse processors then use a de-stoner to take out high density impurities such as stones,
pieces of metal and glass. In a de-stoner, the product will be spread over a perforated deck. The
air passing through the perforated surface will create an air cushion on which the pulses will float
slowly towards the machine outlet by gravity. Heavy particles (i.e. stones) will sink to the bottom
of the stream and pushed upward by the vibratory action of the deck. Stones will be discharged
from the upper side of the machine. Some de-stoners have a stratification step prior to the main
deck.
 Processors run the pulses over gravity tables, which act as a filter to rid them of light
density foreign material like pebbles, dirt and any undeveloped, broken, damaged, or shrunken
pieces. Gravity tables also work on the principle of floating the product over an air cushion and
classifying them based on the difference on density

4.2. Drying process

 Drying of pulse and oil crops is an important unit operation as it affects the ultimate
quality of the crops. Pulses 10-12% and oil seeds 8-10% moisture content is considered to be
safe for storage. Thin layer drying through mechanical dryers are the most common dryers used
in the grain processing industry. Burning agricultural waste generates the heat, which is passed
through heat exchanger. The hot air is blown and mixed with a falling bed of grains to get them
dried.

 In general drying air temperature depends on the type of grain, their moisture content and
end use. For oil seeds and pulses it should be 50-55 oC. Oil seeds are threshed /decorticated when
fully dried. Conditioning is done to get maximum oil recovery. Generally dryers are not used in
the oil industry.
4.3. Sorting Process
Sorting of pulses could be based on size, density and color amongst other criteria. Size sorting of
pulses could be done on separators. Optical sorters are widely used to ensure uniform color of
pulse as well as to improve the cleaning process by removing foreign material and cross
contamination. Gravity tables are typically used to grade pulses based on density (i.e. taking out
immature seeds). The product will then often proceed to a metal detection system prior to a final
air-blast cleaning and bagging. Sending products through additional magnets that act as pre-
screeners enables processors to help ensure absolute food safety prior to final packaging.
 4.4. Dehulling or Decortication Process
 The dehulling of legumes is loosening the hull (by the dry or wet method) and removing
the seed coat to produce polished seed. Dehulling (decortication) produces refined cotyledons
with good appearance, texture, and cooking qualities. Legumes that have gone through this
process are more easily digested and efficiently utilized by the body.

 The process can be a time-consuming procedure depending on how tightly the legume
hull wraps around the endosperm (i.e., the nutritive matter in the seed), because of the thin layer
of gums andmucilages (i.e., the gummy secretions or gelatinous substances present in plants).

 The success with which a legume can be dehulled is influenced by the variety, season
when harvested, and location of cultivation. Larger or bold-grain varieties are easier to dehull
and give a higher yield, making them the preferred variety among millers. Smaller varieties
meanwhile, require repeated pre-dehulling treatments and other complex procedures. Because
their hulls are comparatively easy to remove, dry peas, lentils, and chickpeas require less drying
and fewer oil or water treatments.

 There are a variety of ways to decorticate food legumes. The oldest and most common
technique involves spreading out the seeds to dry in the sun or mixing them with a bit of water
before pounding them in a mortar with a pestle. The hull is winnowed off to get the clean
cotyledons. Similar methods are used in commercial mills, though being much larger in scale
they are adapted for greater yield and operational efficiency. Another method for dehulling is
based on adjusting the moisture of the grain to loosen the hull. The grain is first exposed to
heated air in a tempering bin, for a pre-determined time based on the variety. Through gradual
aeration it reaches a critical moisture level. The hull is then removed in an abrasion type hulling
machine, while efforts are made to minimize scouring or breaking endosperm. If it is to be split,
the whole dehulled grain is then ready to proceed to a splitting machine.

4.5. Splitting Process

 Many of the operations, particularly decorticating and splitting, are mechanized. Splitting
is often carried out in parallel with dehulling, though both are more effective if undertaken as
independent operations. Adding water prior to dehulling helps bring about splitting. Such a step
does, however, often leave portions of hull on the split cotyledons (dhal) that then have to be
removed by polishing machines. After drawing or winnowing off the hull, the split cotyledons
are separated by sieving. Any leftover whole grains that have not been split are similarly
processed until as much of the grain as possible is dehulled.
Figure 1: Flow chart of pulse process

4.6. Milling
 The entire process of dehusking and subsequent splitting of cotyledons, its cleaning,
polishing and grading is known as milling. Essentially milling process involves cleaning,
grading, pitting, treatment milling and polishing operations. Usually milling processes are
described for the toughest to mill pulse grains. Pulses could be further processed to produce
flour. The type of the flour and therefore the milling method will be determined by the final
product which will be made of the flour.

 Milling is usually done by two methods: wet and dry process methods

 Wet process: The wet process has been commonly used with pigeon pea or red gram, as
the skin in this grain is difficult to be removed. The process consists of the following steps:

 soaking the grain in water overnight

 smearing the soaked grain with red earth mixed with water and keeping the grain moist as
a heap by sprinkling water for 16-24 hours

 drying the grain in sun, and

 Dehusking the grain using granite or wooden hullers.

 Dry process after conditioning skin with water or oil:

 Dry process after conditioning skin with water-chickpea, lentils, pea and dried peas.

 Dry process after conditioning skin with oil-pigeon pea or red gram, black gram and
green gram

Figure 2: Flow diagram of milling process

 4.7. Roasting
 It is essential to cook pulses and oil crops before consumption to enhance digestibility,
taste, texture, availability of nutrients, anti-oxidant activity and to reduce anti-nutrient activity
and microbial loads. For this, a variety of cooking methods can be employed like boiling,
grilling, roasting, steaming, etc. The type of cooking depends on the type of food material and its
thermos-sensitivity.

 In roasting, heat is transferred into the food from hot surfaces or from the air in a furnace
or oven. Simultaneously, the moisture is transferred from the food to air that surrounds it and
then is removed from the oven by moving air. In a furnace/oven, the food material gets heated by
a varying combination of conduction, convection, and radiation. Depending on the mode of heat
transfer, the outcome of the roasting process will vary. Roasting is typically a dry heat treatment
which can be done in several ways. Different methods that are used around the world are
oven/microwave roasting, sand roasting, hot salt roasting and infrared roasting.
4.8. Fractionating
 In the search for new food protein and fiber resources, commercial facilities have begun
focusing on extracting protein concentrates from pulses via a process called fractionation that
allows researchers to separate out component ingredients to obtain the desired concentrates and
isolates.
 Dietary fiber in pulses is actually captured as a byproduct of the process by which protein
and starch concentrates are acquired from pulse seeds. The results are generally richer in fiber
when obtained from the hulls. The separation of pure legume starch is difficult because of the
presence of a highly hydrated fine fiber (cotyledon cell wall material) and the strong adherence
of large amounts of insoluble proteins.

 Fractionation typically takes the form of a dry or wet method: air classification or wet
milling. Dry and wet separation processes have been used for some time to fractionate grain
legumes for both experimental purposes and industrial applications.

4.8.1. Wet Method

 The traditional wet process is intended for food applications. Using this method, the hulls
are removed from the seeds and then milled or ground into flour. The legume is pulped using a
decomposing agent like an alkaline solution to pull out the protein, which is then dried. The solid
matter left after the protein has been separated out is screened through a series of sieves to
recover the starch. Like fiber, pea starch is usually made available as a byproduct of protein
extraction.

 Another wet approach includes soaking the whole grain, followed by straining the result,
now slurry, through a cloth. The wet method is particularly useful if the pulse is to be ground
into a paste for further processing. On the other hand, if it is to be dried, the wet method can be
difficult and time consuming, often involving the loss of nutrients in the soak-water.
 4.8.2. Dry Method

 The dry method uses a mill and air classification process to break down the dehulled
seeds and separate out the starch and protein fractions. Dry processes have been employed more
successfully with grain legumes than with other legume varieties because in legumes starch is the
principal storage compound rather than oil.

 Removal of the loosened hulls from the grain in the dry-milling technique is commonly
done in small machines. These usually take the form of under-runner disc shellers or grinders
with emery or stone contact surfaces. A plate mill is sometimes used to both hull and split the
soaked and dried grains.

4.9. List of Required Machineries and Equipment’s

Table 7: List of required machineries and equipment

S.No Machineries/Equipment’s Purpose

1 Vibratory sieve separator For cleaning of raw grains
2 Cleaner with Aspirator For removing lighter impurities such as dust, husk, broken
of insects etc.
3 Destoner To separate mud and stones from raw grains
4 Auger Mixer/Screw For mixing water/oil/red earth during conditioning and
conveyor polishing of grains/dhal
5 Pulse scourer used to obtain cracking and scratching of clean pulses
6 Pulse splitter For splitting and dehusked grains into two halves
7 LSU Drier For conditioning of the grains before milling
8 Emery coated rollers For dehusking and milling of pulses.
9 Rotating reel grader For separating the dhal based on size and soundness, in
which separate compartments with different size screens are
present.
10 Suction fan or blower. To separate Husk and powder
11 polisher To removal of powder from dehusked splits
12 thermometer To control temperature
13 add and weigh scale Used to control Weight
 5. Market Study for processed Pulse Crop and Oil Crop

This new commodity study focuses on the export market for processed pulse crop and oil crop
processing products.

5.1. World Production of Pulse Crop and Oil Crop Processing Product
5.1.1. World production.

5.1.2. World Import and Export of Pulse Crop and Oil Crop

World Exporter of processed Oil seed (Sesame seed)

The world top five exporters of processed oil seed are Sudan, Nigeria, India Tanzania and
Ethiopia and Tanzania.
Table 8: World Exporter of processed oil seed (Sesame seed)

2018 2019 2020 2021 2022

Exporters Exported Exported Exported Exported Exported

quantity, quantity, quantity, quantity, quantity,
Tons Tons Tons Tons Tons

Sudan 252246 468566 513832 289095 356643

Nigeria 225086 518670 248103 427338 297022

India 326828 276358 276265 260463 234764

Tanzania, United
Republic of 66480 126930 161455 133462 120987

Ethiopia 232139 194294 247501 185528 107719

Myanmar 86936 102839 138913 171997 101565

Mozambique 15068 64939 52215 63320 71506

 Chad 22038 26111 57032 92061 70168

Burkina Faso 163559 72230 60770 61202 58858

Source: ITC Trade Map

World Importer of processed Oil seed (Sesame seed)
The world top five Importer of processed oil seed are China, Turkey, Japan ,India and Korea
republic .
Table 9: World Importer of processed Oil seed (Sesame seed

2018 2019 2020 2021 2022

Importers Imported Imported Imported Imported

Imported
quantity, quantity, quantity, quantity,
quantity, Tons
Tons Tons Tons Tons

China 828211 812386 1015877 1173618 1070989

Türkiye 152237 184244 223162 202613 180339

Japan 157170 186161 204864 150975 179067

Korea,
Republic of 72063 76812 77662 86923 84250

Iran, Islamic
Republic of 61997 64591 51936 59025 64015

Israel 53458 56883 50259 54489 48081

Taipei, Chinese 38797 33459 43229 43140 38263

Saudi Arabia 50961 73201 49612 48274 37593

Viet Nam 27941 27992 32858 31834 34670

United States of 36088 33349 36329 37130 34608

America

Source: ITC Trade Map

World Importer of pulse crop

The world top five Importer of pulse crop seed are China, India, Türkiye ,Pakistan and United
Arab Emirates .
Table 10: World Importer of pulse crop

2018 2019 2020 2021 2022

Importers Imported Imported Imported Imported Imported

quantity quantity quantity quantity quantity

China 2249332 2243517 3202464 2633496 2587563

India 2393976 3218067 2518172 2601934 2419205

Türkiye 557211 718667 943475 973278 1224464

Pakistan 974108 954740 1276745 1226232 1087338

United Arab
Emirates 500906 548532 No Quantity 668635 826854

United States of
America 651154 518027 490972 655704 723228

Egypt 539536 No Quantity 407139 443893 498063

Italy 405192 375950 502345 502805 410117

Norway 247320 178524 233780 282356 333024

Iran, Islamic
Republic of 209677 164612 180879 232970 266926

Source: ITC Trade Map

World Exporter of pulse crop
The world top five Exporters of pulse crop seed are Canada, Australia, USA, Myanmar and
Russia. The past five years exported amount of the product had been grown by 4% by geo mean
forecasting method.
Table 11: World Exporter of pulse crop

2018 2019 2020 2021 2022

Exporters Exported Exported Exported Exported Exported

quantity, quantity, quantity, quantity, quantity,
Tons Tons Tons Tons Tons

Canada 5286769 6267114 7468864 5259008 4625313

Australia 1513149 1312803 1729523 2716848 2690736

Russian
Federation 1357757 1219532 1082860 1520829 1430344

Türkiye 489380 688337 797500 804925 1215186

United States
of America 921331 1160060 1451496 1121515 855688

India 315957 204181 284357 343284 641735

United Arab
Emirates 307748 361122 438228 482142 621437

Argentina 548887 598840 607137 573816 549351

Mozambique 19260 200444 148955 292912 492770

United
Kingdom 241161 279321 294095 223129 426052

Source: ITC Trade Map

 5.2. Market Segmentation of Pulse Crop and Oil Crop Processing products

Market processed for Pulse Crop and Oil Crop Processing products can be mainly segmented by
the destination of market as export or domestic market. This market study mainly focused on
Export market because of there is a trend of exporting the products to world market.

5.3. Demand Situation

5.3.1. Demand Driving Factors

The domestic consumption for Pulse Crop and Oil Crop Processing product is affected by
different factors either positively or negatively. These influencing factors are discussed as
follows:

A. Cultural Influence

Food and culture are two different words that go very well side by side. Food is essentially
considered to consist of nutrients that support body growth and metabolism to provide energy.
But apart from all the nutritional value, the food we eat also represents our culture, and is a very
important component of it. Generally; the existing culture affects the demand for Pulse Crop and
Oil Crop Processing products negatively.

B. Real Disposable Income Level

Real household disposable income levels are an important demand factor for products. This
factor can influence the quantity, quality and frequency of Pulse Crop and Oil Crop Processing
product purchases. As the level of real household disposable income increases, it can prompt
greater demand for products.

Accordingly as real household disposable income declines, so too does the frequency at which
consumers purchase discretionary items. In general the continuous increase in an income of the
country contributes positively to the increase in demand for Pulse Crop and Oil Crop Processing
product products.
C. Consumer Perception

This can also create changes in demand and consumer perceptions, especially for locally
produced Pulse Crop and Oil Crop Processing product against import of products categorized as
discretionary purchases. Domestic consumers may prefer local products due to a sense of loyalty
to local firms but due to quality they may prefer for import products.

D. Age Group

Pulse Crop and Oil Crop Processing product is a very special food that can be categorized
according to age group even during production is prepared for any age group and used as easy
for consumption.

E. Taste And Preference for the Product

A growing consumer preference for nutritious and low-fat foods boosted the growth of the
industry, ease of digestive, high protein content leads for consuming of products at any stage and
age group.

F. Population Growth

It is key driver in this industry. A higher global population leads to greater demand for consumer
products, particularly for basic necessities such as food. This can lead to growth in the industry
and further affect the per capita consumption of Pulse Crop and Oil Crop Processing products.

5.3.2. Domestic demand

Pulse and Oilseed crops are the second Ethiopian export product. Sesame seed is the main
oilseed export product. Niger seed, as second, is exported mainly to the US as bird seed. All
other oilseed crops (soybeans, groundnuts, cottonseed etc.) grown in Ethiopia are almost entirely
used domestically. Reliable figures of domestic use are not available. The oilseed crushing and
refining industry produces for the domestic market.

The average annual demand in Ethiopia for Pulse Crop and Oil Crop Processing products is
expected to grow as a result of the a growing number of urban centers and urbanized lifestyles,
improved policy environment of the sub sector and finally steadies economic growth rates
registered by the country and visible increased income levels of the general population.
This increasing demand for products offers great opportunity and potential for the smallholder
farmers and for the development of processing industry in the country.
5.3.3. Domestic Demand of Pulse Crop and Oil Crop Processing products

The updated raw data and information mainly focused on export market. Thus domestic demand
is not consider in this study.

5.3.4. Export Demand of pulse crop and oil seed processing

Ethiopia exported processed Pulse crop and oil crop to world market after cleaning, grinding de
hulling. The product mainly exported to UAE, Israel, Singapore, Vietnam and China. The past
five years exported amount of pulse crop and oil seed indicates that fluctuating year to year.

Table 12: Export amount of processed oil seed in Ton

2017/18 2018/19 2019/20 2020/21 2021/22
Oil Seed
Item No
Type Volume In Volume In Volume In Volume In Volume In
Ton Ton Ton Ton Ton

1 Sesame Seed 228,197.56 218,334.76 197,066.96 145,892.80 127,581.60

2 Niger Seed 20,137.23 13,283.56 29,398.30 18,553.77 13,535.72

3 Castor Seed 10,917.00 6,186.00 10,544.00 6,544.00 5,941.30

Pumpkin
4 577.58 657.85 496.38 174 135.65
Seed

5 Ground Nut 53.47 117.69 15,043.48 65.44 0.94

6 Rape Seed 282.27 5.2 2.83

7 Linseed 5.6 5.27 4.17 4.89 2.46

8 Sunflower 2.22 1.72 2.95 4.17 4.86

9 Others 0.05 0.01

Source: Ethiopian pulses oilseeds and spices processors exporters association Source and
Ethiopian Ministry of Trade and Regional Integration
Table 13: Export amount of processed Pulse crop in Ton

2017/18 2018/19 2019/20 2020/21 2021/22

Item
Oil Seed Type
No Volume Volume Volume Volume Volume In
In Ton In Ton In Ton In Ton Ton

68,512.1 17,170.5 40,853.0 22,769.5

1 Chick Peas 13,921.30
8 4 8 3

57,250.0 60,892.4 49,434.9 38,447.0

2 Green Mung Beans 63,681.52
0 8 5 0

63,441.8 47,583.6 18,853.6 28,817.2

3 Red kidney beans 76,085.28
3 3 4 9

71,715.6 50,765.1 31,906.1 34,552.9

4 White Pea Beans 38,977.51
5 3 6 5

94,523.8 85,364.8 72,854.9 30,361.6 130,665.9

5 Soya beans
0 5 0 0 0

15,068.0 27,403.1 14,338.4 21,747.1

6 Speckled kidney beans 17,611.01
9 0 3 0

12,921.5 14,560.0
7 Light brown kidney beans 6,588.18 8,708.53 14,144.00
6 2

53,702.1 19,552.5
8 Horse Beans 5,224.94 8,536.88 10,875.41
2 7

10,223.4 10,040.5
9 Pinto Beans 8,196.94 8,975.45 392
1 8

10 Lupin 5,265.30 4,168.55 6,534.50 2,222.00 2,430.00

11 Black Kidney Beans 4,047.00 6,435.00 8,723.50 3,640.14

 12 Pigeon Peas 3,077.00 1,724.00 1,329.00 1,884.00 4,837.49

13 Vetch 369 504 240

14 Others 540.65 806.06 120 0.26 0.08

Source: Ethiopian pulses oilseeds and spices processors exporters association and Ethiopian
Ministry of Trade and Regional Integration

5.4. Supply Situation

The supply of Pulse Crop and Oil Crop Processing products originates from domestic production
and import.

5.4.1. Domestic production

According to the data collected from government institution and Ethiopian pulses oilseeds and
spices processors exporters association there are licensed Pulse Crop and Oil Crop Processing
producer and exporter in Ethiopia. The total locally processed pulse crop and oil seed product is
mainly exported to different country in world wide.
The domestic production comes from commercial level (medium and large scale processing
industry) produced in the country. As per the data received from Trade and regional integration
minister, the five years production data of processed pulse crop and oil crop ( sesame seed) listed
here in the table below.
Table 14; Domestic Production of processed oil Seed in Ethiopia

Production Amount of processed Production Amount of

Year oil crop in ton processed pulse crop in
ton
2017/18 260,172.98 458,631.12

2018/19 238,586.86 346,649.34

2019/20 252,561.44 267,305.86

2020/21 171,239.07 207,262.59

 2021/22 147,205.36 377,261.64

Source: Ethiopian pulses oilseeds and spices processors exporters association and Ethiopian
Ministry of Trade and Regional Integration

5.4.2. Import data of proceed pulse crop and oil Crop

Ethiopia imported Pulse Crop and Oil Crop Processing products from Ukraine, UAE, USA, and
Turkey.

Table 15: Import Trend of Pulse Crop and Oil Crop in volume (in ton) (2018-2022)
year
Description HS code
2018 2019 2020 2021 2022

33,044. 88,868. 230,807. 215,008. 219,095.

Pulse 0713
0 0 0 0 0

oilseed(sesame) 120740 3 1 1 1 3

Source: ITC Trade Map

Note: imported quantity is the aggregated of both processed and unprocessed of crops. There is
no segregated import data

5.5. Marketing Channels and Value Chain

The Pulse Crop and Oil Crop Processing processor is a key in creating link in the value chain.
Pulse Crop and Oil Crop Processing products market, most processors distributed their product
in to Export market directly.
 5.6. Price and Price Trend
All the Pulse Crop and Oil Crop Processing Factory products prices are attached at the parameter
part of the document.

6. PULL, PUSH AND SUCCESS FACTORS

6.1. Pull factors

- Diversity of rather unique oilseed crops
- Economic restructuring ;The Government started economic restructuring, invests in
infrastructure (road, telephone and railway) and planned to start WTO-membership negotiations.
The latter means a more open economy, which might attract foreign investors. At this moment
several economic incentives are already available for sectors producing export priority products.
Oilseeds are among them.
- Increase in demand ;Economic development of China and other emerging countries will increase
the demand for edible oils and oilseeds on the world market. The increasing use of oils and fats
for the production of bio energy also leads to higher demand. For these reasons, in the medium
and longer term relatively high prices for oilseeds and oils and fats can be foreseen.
- High quality of sesame seed
- Attractive Investment Packag
- Economic growth: The current growth of the country associated with Rapid growth of many
cities contributes for increasing the demand for products.
- Increased foreign Community: Various supports will be accessible due to the increasing in the
size and number of international organization in Ethiopia.
- Possibilities/capacities of new product development to increase customer selection for
variety of products
- Improve packaging (e.g. out of home usage)

- Large trainable labor force and relatively low wage than other competing countries
 6.2. Push factors
- Subsistence farming; Many smallholders are still focused on food security. Oilseeds as one of
the cash crops are generally grown only to have enough capital to buy some necessities of life.
Food security needs to be enhanced, so that growers feel more comfortable growing oilseeds.
- Availability of capital; Land is state owned and farming is largely based on manual labour.
Collaterals at farms are therefore almost not available. A well functioning credit system would
enhance the production of cash crops: to buy improved seeds and other inputs. Competition from
informal market
- A sudden climatic change as cyclical drought adversely affects the raw materials
production
- Political instability
- Poor image of the country on food items in international market.
- Higher quality product in some exporting countries

6.3. Success factors

The key factors for Pulse Crop and Oil Crop Processing market are:

 Continuous innovation by adopting new technology related to consumers demand.

 Quality Product and packaging material

6.4. Problems
 Logistic problem to deliver the products to Djibouti ports
 Price escalation of the raw materials.
 Political Instability
 Lack of quality paper bag to pack products
7. BASIC ASSUMPTIONS, TECHNICAL-COFFECIENT AND
PARAMETERS

This part of the study is dedicated to estimation of the coefficients and parameters, which are
used to determine costs and revenues of Pulse Crop and Oil Crop Processing products processing
and marketing commodity study. The very important caution which has to be taken by the users
of this study is that the parameters and prices determined are just indicatives, which help
understand where the real parameter lays.

7.1. Assumption
Working days per annum …………………………….270

Working hours per shift ……………………………….8

Number of shifts in a day ………………………………2

7.2. Revenue
Table 16: Price of product
Types of product UOM Selling price in Remark
USD
Hulled Sesame (Tahina) export market kg 2.83

Hulled roasted Sesame kg 2.57

Processed Sesame seed(Humera Type) Qt 1900

Processed Sesame seed(Wollega Type) Qt 1800

Processed Haricot bean white Qt 840

Processed Haricot bean red Qt 800

Processed Haricot bean red Dapple Qt 1000

Processed Haricot bean white Dapple Qt 1200

Processed Haricot bean Grey Qt 840

Processed Haricot bean Black Qt 850

Processed Green Mung bean Qt 1100

Processed Soya bean Qt 800

Processed Bean Qt 750

Processed Chick peas Qt 750

Processed lentils Qt -

Processed gibto Qt 530

Processed peas Qt 850

Processed vetch Qt NA

soya bean by product solvent Qt 425

soya bean by product non solvent Qt 620

Source: Ethiopian Ministry of Trade and Regional Integration, Ethiopian pulses oilseeds and
spices processors exporters association
The Ministry of Trade and Regional Relations sets a low price each week, which exporting
producers can use to sell on the global market. However, they can sell it if they receive a higher
price than the minister has established.

The Ministry of Trade and Regional Relations' minimum pricing, which is displayed in the above
table, is valid from November 21 to November 30.

Conversion Rate/Processed Product Yield

Processed Product Yield
For Processed sesame
Impurity = 6%
Skin removing (de hulling Process) =7-8%
For pulse crop
Impurity= 2% only
Remark: The impurity rate for pulse and oil seed crop is vary based on the quality of the
products (raw materials).

7.3. Operational Cost

Table 17: current Price of Material and inputs

Types of raw Materials Unit Selling Price in birr Description

Sesame Qt 12000

Mungbean Qt 6000

Haricot bean Qt 5000

soya bean Qt 4000

Bean Qt 4500

Chick peas Qt 6000

lentils Qt -

Gibto Qt 3000

peas Qt 6200

vetch Qt 5000

Source: Field survey

Packaging materials

Packaging UOM Price/ birr Remark

PP bag(50KG) Piece 16.75
PP bag(100Kg) Piece 35
Labeling materials Piece 1.5
Plastic bucket (holds 5 kg) piece 32 To pack sesame crude
Sewing thread roll 78

Source: Field survey

7.4. Machinery and Equipment

All required types of machineries are listed at the technical part of the commodity
study

7.5. Vehicles
Type of vehicle Purpose

Isuzu NPR For product transportation

Pickup vehicle For purchasing of raw material and transportation of administrative workers

Automobile For the manager

7.6. Insurance
The following are the major Insurance categories in products processing and marketing.
 Earthquake and fire insurance for buildings
 Fire insurance for machinery &equipment’s and furniture & fixture
 fire, accidents and big loss for products
 Third benefited from property and life insurance for vehicle.
 Personal and group insurance for 24 hrs for managers.
 Work time insurance and work man composition insurance for employee.
Repair & Maintenance
 2% of building
 5% of machinery &equipment’s
 5%of furniture & fixture
 5% of Vehicle
Depreciation and Amortization
 5% of original cost for building
 10% of original cost for machinery and equipment
 10% of original cost for furniture and fixture
 20% of original cost for vehicle
Land lease Cost

It is according to land lease agreement between the project and concerned office from where the
land would be availed.

Uniform and clothing

Table 18: Uniform and clothing

Type of Uniforms and Clothing
Categories of staff
Safety boots Over Coat Upholstery
General manager office
General manager   -
Secretary   
Auditor office
Auditor   
HR and finance department
Administration and finance head   -
Personnel   -
Secretary   -
Accountant   -
Office cleaner & messenger   
Guard   
Production and technique department
Production and Technical head   -
Product processing unit Attendants   

Uniform per employee ……………………………..….as per submitted Performa

Invoice
Other employee benefits……………………………… 0.098% of Salary
 Advertisement Cost----------------- refer cross cutting data 2021 updated
Loading and unloading cost is 30 birr quintal( it covers all costs from unloading raw
materials to loading final products)

7.7. Working Capital Determination

Table 19: Working capital determination

Item Period of Working capital purpose

requirement
Raw material Imported -
local One Month
Salary and wage One Month
Uniform One year
Utilities One Month
Fuel and Lubricant One Month
Stationery and P.T.T One Month
Travel and per diem One Month
Work in progress NA
Stock period finished product One week
8. Reference
- Ethiopian Ministry of Trade and Regional Integration
- Ethiopian pulses oilseeds and spices processors exporters association
- CSA Report on area and production of major crops
- ITC Trade Map
- CSA
- FAO
- ECX
- MSA Pulse and oil seed crop Processing
- Estifanos mekasha Agro Processing plc
- Previous commodity study