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School of Postgraduate Studies

Establishing ABC Milk Production Company

Prepared By:

Name ID no
1.

Submitted to: …….your instructor

July, 2023

Addis Ababa, Ethiopia

Contents
Background of the Project .............................................................................................................. 1
1.1 Introduction ...................................................................................................................... 1
1.2 Vision and Mission of the Organization .......................................................................... 2
1.2.1 Vision ........................................................................................................................ 2
1.2.2 Mission...................................................................................................................... 2
1.3 Objective of the Project .................................................................................................... 2
1.4 Brief Description of the Project and Product ................................................................... 2
1.5 Name and Type of Business (the Owners) ............................................................................... 3
1.6 Brief Information on the Owners ......................................................................................... 3
1.7 Specific goals ....................................................................................................................... 3
2 Product of service design ........................................................................................................ 4
2.1 Market Study .................................................................................................................... 4
2.2 Marketing Strategies ........................................................................................................ 4
2.3 Plant Capacity and Production Programmed ................................................................... 6
3 Process design ......................................................................................................................... 6
3.1 Production Process ........................................................................................................... 7
3.2 Location and Environmental Analysis ............................................................................. 7
3.3 Customers ......................................................................................................................... 7
3.4 Competitors ...................................................................................................................... 8
3.5 Suppliers ........................................................................................................................... 8
4 Organizational Structure and Human Resources .................................................................... 8
4.1 Main Organizational Structure ......................................................................................... 8
4.2 Job design ......................................................................................................................... 9
4.3 Job description and Qualifications ................................................................................... 9
5. Business plan ........................................................................................................................ 10
4.4 Capital Cost of Project ................................................................................................... 10
4.5 Financial Analysis .......................................................................................................... 12
4.6 Financial Evaluation ....................................................................................................... 14
5 Implementation Scheduling .................................................................................................. 14
6 Summary ............................................................................................................................... 15
References ..................................................................................................................................... 16
 Background of the Project
1.1 Introduction
This project paper deals with the feasibility study of “Establishment of ABC milk Production
Company would be located around in Dire Dawa city. The company is assumed to be starting its
operation in the near future after fulfilling the necessary requirements from the Ethiopian
Investment Authority. A future milk surplus could be realized through investment in better
genetics, feed and health services, improving both traditional dairy farms and commercial-scale
specialized dairy production units. Milk product currently sold in the Ethiopian market can be
categorized into milk products, such as raw, pasteurized and powder milk butter products such as
fermented and pasteurized butter and other products, such as cottage and other type of cheese,
sour milk and yogurt. Among these products powder milk is not produce in Ethiopia at the
moment, and are usually imported. Pasteurized butter, yogurt and various type of cheese apart
from cottage cheese are both imported and locally produced. The country, the Ethiopian
government provides various packages of regulatory fiscal incentives to both foreign and
domestic investors engaged in establishing new enterprises and expansion. Ethiopia’s priority is
to supply enough milk and dairy products for its population though own production Due to the
important nutritional value of milk, increasing consumption of milk either directly or through
fortified foods is often a priority of national health and nutrition programs. Geographical
potential for the investment Ethiopia is ecologically suitable where there is enough manpower,
potential of good market, well fertile soil to produce animal feed and suitable climatic condition
for the production of good quality and quantity products. Markets backgrounds the volume and
price of milk and other dairy product sales is increasing. For instance, couple with inflation the
price of raw milk per liter has increased from about birr 2 per liter to about birr 15 at produced
level with in the last fifteen years. As a result of this many dairy cooperatives established, some
cooperatives collectedly formed unions for better marketing capability. In the past increases in
milk demand have been mainly driven by population growth, whereas nowadays they are
increasingly also fueled by rising per capita milk consumption in Ethiopia. Current situation of
the sector and industry structure there are thirty-two formal sector dairy processors in Ethiopia
and new processing facilities in various stages of development. This is a great opportunity for the
entrants to collect and process raw milk into different milk products, and supply for domestic and
export market.

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 1.2 Vision and Mission of the Organization

1.2.1 Vision
 To be premium milk production in Ethiopia, by 2030.

1.2.2 Mission
 To build branded milk production business, to improve quality of life by offering
tasty, affordable and highly nutritional products to our consumers while
maximizing the micro production capacity.

1.3 Objective of the Project

 To improve establishing milk production products by implementing new technologies.
 To generate income for the owner of the project by supplying and Products so that it can
fill the demand supply gap existing in the market.
 Contributing in the development of the country by creating employment Opportunity
both skilled and unskilled labours on casual and permanent basis.
 Contributing to minimize the country’s dependence on food aid and imports, and
Thereby, helping spare the nation sizable foreign currency outflows.
 Partnering with local and foreign technologist and centre of excellence to help Foster
innovations in the sector, so that agro-processing could replace raw agricultural
commodities.
 Upholding the utmost sense of Corporate Social Responsibility so as to help foster socio-
economic harmony, wealth creation and environmental friendly.
 Generating government revenue in form of income tax.

1.4 Brief Description of the Project and Product

milk products currently sold in the Ethiopian market can be categorized into as raw, pasteurized,
and powder milk; butter products, such as fermented and pasteurized butter; and other products,
such as cottage and other type of cheese, sour milk and yogurt. Among these products powder
milk are not produced in Ethiopia at the moment, and are usually imported. Pasteurized
(table/bread) butter, yogurt and various type of cheese (apart from cottage cheese) are both
imported and locally produced. Development of successful and sustainable dairy industry will be
realized by strategic interventions of the investors in to all parts of possible entry points along the

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 milk value chain especially on the innovation of new products. Accordingly, several entry points
to produce new products can be considered as intervention opportunity in the dairy industry
value chain with varied degree of resource requirement and level of competitions.

1.5 Name and Type of Business (the Owners)

Name : ABC Milk production Private Limited Company
Address : Dire Dawa, Ethiopia
Business Type : Milk production
Form of Project : PLC
Registration : On Process
Business License : On process
Status of the project : New

1.6 Brief Information on the Owners

The Shareholders and their respective shareholding are shown in the following table.
Table 1 Shareholders & their shares
No Partner name Amount/share birr No. of share Total amount of contribution/birr
1 Molla 2,420 100 242,000
2 Abebe 2,420 100 242,000
3 Bezawit 2,420 100 242,000
4 Natnael 2,420 100 242,000
5 Lidiya 2,420 100 242,000
Total 12,100/share 500 1,210,000

1.7 Specific goals

Short-term goals
 Launch the business in January 2023.
 To creating employment opportunities at the commencement of its operation and
continually increasing the numbers.
Long-term goals
 Make the business economically viable in to two and half years.
 Establish its own Research and Development center around the operation area.
 Increase the depth of the product mix.

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2 Product of service design
2.1 Market Study
Almost all over the country of Ethiopia, it involves a vast number of small or medium or large-
sized, subsistence or market-oriented farms. Of the total milk produced in the country only 5% is
marketed as processed fluid milk due to the underdevelopment of the infrastructure in rural
areas. The volume and price of milk and other dairy product sales is increasing. For instance
couple with inflation, the price of raw milk per liter has increased from about Birr 2 per liter to
about Birr 15 at produced level within the last fifteen years. As a result of this many dairy
cooperatives established, some cooperatives collectedly formed unions for better marketing
capability. In the past, increases in milk demand have been mainly driven by population growth,
whereas nowadays they are increasingly also fuelled by rising per capita milk consumption in
Ethiopia. A variety of locally processed as well as imported milk products (fresh milk,
pasteurized milk, UHT milk, cream, cheese, butter, butter-cook, butter-table, Gouda cheese,
cottage cheese, mozzarella cheese, provolone cheese, cream cheese, fermented milk, and natural
and flavored yoghurt) (Yilma et al., 2011).
There are thirty two formal sector dairy processors in Ethiopia and new processing facilities in
various stages of development. Most processors benefit from urban and per-urban milk supply
systems, and in several cases have invested in their own dairy farms to ensure adequate milk
supply and quality. Value chain actors are already investing in milk production, collection and
processing, and increased demand would likely lead to increased investment. Market opportunity
would lead to value chain deepening and upgrading, more solid horizontal and vertical
relationships with the value chain, and investment in core value chain operations as well as
needed services and inputs. The legal system allows new entrants into business to setup
businesses in different options. Depending on the resources, there are incentives for investors to
start up their business. New businesses required to have certification of competency to get trade
license for certain business. The entry of private firms in the formal milk-market is a significant
development indicating the profitability and potential of private investment in the dairy sector in
Ethiopia and that the policy environment is facilitating such entry.
2.2 Marketing Strategies
The company dealing with community, super market and other agricultural offices for
facilitating the distribution of the products of the project i.e. milk, yoghurt, cheese, butter.

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Milk is directly sold to local peoples, hotels and cafes, super markets and shops those need to
distribute them to the community. The p r o d u c t s will be supplied to the local communities
living in Ambo town. Besides there are NGOs who need to enhance the capabilities of the small
holders by facilitating the supply of the good milk cow’s variety to them. Therefore, the
company communicates with them to raise the demand for the product. In order to achieve the
target, the promoter has developed appropriate marketing strategies to generate the sales from the
target market. There are four factors to be considered which are as follows;
Product
The farm will be operated by the skilled man power to ensure that always satisfy its customers
demand. The feedback will be acquired from the customers to adjust the next production.
Pricing
The price of the products depends on the market condition and the company delivers its products
at reasonable price to its customer. The company based on competition based pricing strategy.
Now the prevailing price of milk is between 20-24 Birr per Littre, the company planned to start
selling Milk at birr. 20 birr/ Littre and to increase it by 10% over the next years. Furthermore, the
price of cheese yoghurt and butter is 100Br/kg, 15Br in a bottle, and 280Br/kg respectively.
Table
Items Price/unit
Milk 20/Littre
Cheese 100/kg
Yoghurt 15
Butter 280/kg
Place/Distribution
The chosen site for the project implementation is dire dawa town and the distribution will be
confined in the town for the time being until the capacity is grown to send the product to central
market area of dire dawa and export the products by processing which is planned to be
undertaken in the second phase of project implementation. Distribution is made through the
super market and at in farm gate of the project as deemed necessary.
Promotion
An impressive promotion is needed to ensure the missions of the company to be achieved. The
promotion will be made by using Posters and public relation by sponsoring bathers and

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participating in it. As the need arise home to home selling may follows. Besides, business card
will be distributed to the potential customer.

2.3 Plant Capacity and Production Programmed

Plant Capacity
The milk processing plant to be established will have a capacity of 120,000 liters of pasteurized
milk producing at full operation capacity.
Production programed

As it is stated in market study, currently there is a huge market gap in the processed milk
production. Based on the market study and investment requirement, the envisaged plant is
expected to produce 400 liter milk/day. So the installed plant capacity will produce 120,000 liter
milk assuming a total of 300 days in a year (400/day*300 days = 120,000 liter milk).

Assuming the plat capacity is increased at 50% in the second year, 70% in the third and 90% in
the fourth year considering the time necessary for market penetration and production skill
development. As the processing of raw milk facilitates alternative products like butter and cheese
as well as other milk products the production programmer are not produce in the next four year.
The processed milk production programmers are shown in Table 2.

Table 2 Production Programmer

Years Capacity utilization (%) Yearly contribution units Total price/birr total
100% capacity
Total unit Cost
Year 1 - 400*300 120,000*4.00 480,000
Year 2 70% 120,000*50% 84,000*4.00 336,000
Year 3 80% 120,000*70% 96,000*4.00 384,000
Year 4 90% 120,000*90% 108,000*4.00 432,000

3 Process design
The major components of milk are water, fat, protein, carbohydrate (lactose), and minerals (ash).
However, there are numerous other highly important micronutrients such as vitamins, essential
amino acids, and trace minerals. Indeed, more than 250 chemical compounds have been
identified in milk.

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Milk is the most important raw material for Hoch land: There’s no cheese without milk. And
there’s no milk without cows.
Consumers and customers are increasingly asking critical questions about sustainable milk
production. They are not just concerned with the quality of the milk and dairy products they
consume, but they also want to know under which conditions the animals live that supply the
valuable raw material for our products.
The principal raw material required for the production of pasteurized milk, butter, cheese and
cream is raw milk. In addition, small quantities of coagulation enzymes and salt are also required
for the production process. The raw (whole) cow milk and salt are available locally while the
coagulation enzymes have to be imported. The auxiliary materials required for the envisaged
plant comprise packing materials like plastic bags, glycine paper and carton box. The plastic
bags and carton boxes can be acquired from the local market while the glycine paper has to be
imported.
3.1 Production Process
The milk will be taken directly from the milking collection center to a cooling tank for temporary
storage and processed immediately. After cream separation process, the milk is filtered and
sealed with plastic bags or bottled and distributed to the market. Pasteurized milk would be
packed into 500 milliliter plastic containers, so two plastic containers would be used to package
one liter of pasteurized milk. Cheese and butter would be packed into 250 and 500gram paper
packages. Whole milk is partially or totally separated to produce standardized whole milk with
3% milk fat. After separation, cream is held in stainless steel tanks and refrigerated at (4oC).
3.2 Location and Environmental Analysis
The environmental analysis deals with current prevailing in the environment in which ABC Milk
production PLC will be located in around Dire Dawa city. If our project is implemented in this
area no doubt about the marketability of the product as the situational analysis in the market
planning reveals. The row material availability is no doubt could be obtained without any
significant difficulties.
3.3 Customers
Customers in Dire Dawa city area are not that much loyal to a specific brand in the current
market. Therefore, customers will have a lesser (lowest) switching costs.

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3.4 Competitors
The main competitors of the ABC Milk production PLC’s are Shola, Mama and Mamet milk
production PLCs’. However, those companies are not in a position to satisfy the quantity
demanded by the market in Dire Dawa city.
3.5 Suppliers
ABC Milk production PLC main milk suppliers are from kulbie and around dire dawa city those
how are cattle feed at a reasonable cost prevailing in the market consistently as the company
requires.

4 Organizational Structure and Human Resources

4.1 Main Organizational Structure

General Manager

Supply and Research and

Promotion Development
Division Division

Production Marketing Human Finance and

Department department Resource Procurement
Department Department

ABC Milk production PLC organizational structure is composed of one General Manager
who is responsible for to make critical decisions in the company such as increasing
production capacity, acquiring a new plant and machinery. The Production Department is
responsible to the production quality and quantities. The Marketing Department is
responsible to distributed the product, price and as the like. The Human Resource
Department is responsible to training, recruitment and preparing rule and directives. The
Finance and Procurement Department is responsible to control financial flow, facilitate
finance and make financial reports. The Research and Development Division is responsible
to conducting researches about related to innovating new type of milk products, market

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 situation and market competitors. The Supply and Promotion Division is responsible to
finding new Milk product supplier, introducing the existing and new milk products of the
company.
4.2 Job design
Total number of manpower required is 21 persons. Details of the manpower requirement and the
corresponding annual labour cost including fringe benefits are shown in Table 6.1. The total
annual cost of man power is estimated at Birr 138,600.

Table 3 Manpower Requirement and Annual Labor Cost

Sr. No. of Salary, Birr
No. Description Persons Monthly Annually
1. Manager 1 21,500 258,000
2. Accountant 1 11,200 134,400
3. Cashier 1 4,450 53,400
3. Secretary 1 3,600 43,200
4. Storekeeper 1 4,600 55,200
5. Salesperson/Purchaser 1 4,600 55,200
6. Cleaner and Messenger 2 5,500 66,000
7. Guards 2 4,500 54,000
8. Production Head 1 1,200 14,400
9. Chemist 1 2900 34,800
10. Operator technicians 1 2,300 27,600
Total - 13 66,350 796,200

4.3 Job description and Qualifications

Position qualification responsibility

Manager Masters  To manage the all day to day activity and look how
the services are go on.
 Co-ordinate the work of all the employees in the
organization and to bring about the best results that
ensures the growth of the organization. There are
various roles and responsibilities that managers
hold in order to bring about the best outcomes from
the employees.
Accountant Degree A person who cans skill and responsibility to give service
to customer and reconciling statements, and ensuring
financial records are accurate throughout the year.
Cashier Degree A person who can responsibility to clean the house.

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Secretary Degree  answering calls, taking messages and handling
correspondence
 maintaining diaries and arranging appointments
 typing, preparing and collating reports and filing
 organising and servicing meetings
Storekeeper Diploma Collect, process, and document all merchandise received
and paid for, assisting with inventory activities as
necessary. Assist in receiving all merchandise from
suppliers. Check all merchandise for discrepancies and
damages. Sort merchandise according to pricing and
location at store.
Salesperson/Purchaser Diploma  Greet customers.
 Help customers find items in the store.
 Check for stock at other branches or order requested
stock for customers and Provide customers with
information about items.
 Ring up purchases.
Cleaner and Diploma A person who can responsibility to clean the room.
Messenger
Guards Diploma Prevent a crime from happening by proactively watching
for suspicious behavior, mitigating risks as they appear and
contacting the proper authorities when an incident occurs.
Production Head Diploma Oversees the production process and coordinates all
activities to ensure enough resources on hand. They can
plan workers' schedules, estimate costs and prepare
budgets to ensure workflow meets required deadlines.
Chemist Diploma Analyze substances to determine their composition and
concentration of elements. Conduct tests on materials and
other substances to ensure that safety and quality standards
are met.
Operator technicians Diploma Maintain and operate equipment in an assigned
department. The position is responsible for maintaining
optimum levels of production efficiency, spoilage and
quality levels while working in a safe manner and
complying with all Safety and Quality procedures.

5. Business plan
4.4 Capital Cost of Project
Broadly the capital cost includes the cost of land, development of land, fencing, internal roads,
civil works (Plant building, office, quarters etc.), plant and machinery, preliminary and
preoperative expenses, margin money for working capital, etc. The project cost of 1,412,500.

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LPD model Component Cost for each
component
1 Land
2 Land and Site Development 155,600
3 Civil Works(building,office) 436,500
4 Plant & Machinery 130,000
5 Misc. Fixed Assets 240,000
6 Vehicles 44,000
7 Preliminary & Pre-Operative Expenses 245,400
8 Contingency @ 5% 101,100
9 Margin For working capital 59,900
Total 1,412,500
Raw and Auxiliary Materials

The basic raw material for milk, butter and cheese production is raw milk. Other materials such
as milk coagulating enzymes and salts are also required in relatively small quantity. In addition
to raw materials, auxiliary materials like containers and glycine papers are required.

Except glycine paper and coagulating enzymes, the other major raw materials can be obtained
from the local market. The list and costs of the above mentioned materials are indicated in Table
5. The total cost of raw material is estimated at Birr 313,015.00

Table 4 Raw and Auxiliary Materials Requirements and Cost

No. Description Qty/birr Cost, Birr
Unit cost/birr Local Cost Total
1. Raw milk, l liter 120,000*1.5 1.50 180,000 180,000
2. Plastic bags (200cc), pcs. 400,000*0.3 0.3 120,000 120,000
3. Glycine paper (40 g), Kg. 21.8 125.00 408.75 2,725
4. Coagulating enzymes, kg 686*15 15.00 1,543.5 10,290
Total - - 301,952.25 313,015

Utilities

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 The major utilities required by the envisaged project are electric power, water & fuel oil. The
annual requirement of utilities and the corresponding cost is indicated in Table 4.2. The total cost
of utilities is estimated at Birr 20,711.00
Table 5 Annual Requirements of Utilities and Cost (Birr)
No. Utilities Qty. Unit/price Total Cost
1. Electric power, kWh 7,000 0.156 1,092
2. Water, m3 1,222 2.0 2,444
3. Fuel oil, l liter. 5,725 3.00 17,175
Grand Total - - 20,711.00
4.5 Financial Analysis
Milk collection volume and sales
Particulars Year 1 Year 2 Year 3 Year 4ear 5
Purchase Volume
Milk Purchase 2,723,400 3,270,803 3,650,000 3,650,000 3,650,000
Y
Milk Loss 27,234 32,708 36,500 36,500 36,500
Net milk available 2,696,166 3,238,095 3,613,500 3,613,500 3,613,500
Sales Volume
Pasteurized milk 2,426,549 2,914,286 3,252,150 3,252,150 3,252,150
Butter 10,785 12,952 14,454 14,454 14,454
Cheese 21,569 25,905 28,908 28,908 28,908
Cream 15,099 18,133.33 20,236 20,236 20,236
Sales in Birr
Pasteurized milk 53,384,087 64,114,288 71,547,300 1,547,300 1,547,300
Butter 1,941,240 2,331,429 2,601,720 2,601,720 2,601,720

Cheese 1,509,853 1,813,333 2,023,560 2,023,560 2,023,560

Cream 1,207,882 1,450,667 1,618,848 1,618,848 1,618,848

Total Sales 58,043,062 69,709,717 77,791,428 7,791,428 7,791,428

Purchase Cost 40,851,000 49,062,051 54,750,000 4,750,000 54,750,000

Total Initial Investment Cost

The total investment cost of the project including working capital is estimated at Birr 2.2 million.
The major breakdown of the total initial investment cost is shown in Table 7.1.
No. Cost Items Total Cost/birr No. Cost Items

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1. Land lease value 4,890.00 1. Land lease value
2. Building and Civil Work 150,000.00 2. Building and Civil Work
3. Plant Machinery and Equipment 1,120,000.00 3. Plant Machinery and Equipment
4. Office Furniture and Equipment 150,000.00 4. Office Furniture and Equipment
Production Cost
The annual production cost at full operation capacity is estimated at Birr 2.343 million (see Table
7). The material and utility cost accounts for 14.35 per cent of production cost.
Table 6Annual Production Cost at Full Capacity ('000 Birr)
Items Cost % Items Cost
Raw Material and Inputs 313,015.00 24.46 Raw Material and Inputs 313,015.00
Utilities 20,711.00 1.62 Utilities 20,711.00
Labor direct 138,600.00 10.83 Labor direct 138,600.00
Loan Amortization
ABC milk production PLC used finance sources from total initial investment of about 45% loan
which means birr 990,000 from commercial bank of Ethiopia at 10% of interest rate and agree to
make equal annual end of year payment over (4) four years.
We calculate: this as follows

PU= R 1  (1  i) 
n

 i 

811250 = R 1  (1  1) 
4

 01 

R = 990,000

3.170

R= 312,302.84

Loan amortization schedule

End years Loan payment Interest rate (10%) Principal (2-3) End of year balance (4-5)
0 - - - 213,302.84
1 312,302.84 990,000x 10% = 99,000 213,302.84 234,633.12
2 312,302.84 776,697.16x10% = 77,669.72 234,633.12 258,096.44
3 312,302.84 542,064.04 x 10% = 54,206.40 258,096.44 283,967.06
4 312,302.84 193,967.60 x 10% = 19,396.76 283,967.06 0
Sales Forecast
Years Yearly sales price/units

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 Amount of units Unit price Total price/birr
1st years 120,000 liter Birr 14 1,680,000
2nd years 84,000 liter Birr 14 1,176,000
3rd years 96,000 litter Birr 14 1,344,000
4th years 108,000 litter Birr 14 1,512,000
4.6 Financial Evaluation
Profitability
Based pm the income statement to, the project will generate a profit throughout is operation life-
time. Annual net profit after tax will grow, at the end of the project life the accumulated cash
flow amounts to birr 1,105,077.97. So that the income statement and the other indicators of
profitability show that the project is viable.
Ratios
According to the projected income statement, the project will start generating profit in the second
year of operation. Important ratios such as profit to total sales, net profit to equity (Return on
equity) and net profit plus interest on total investment (return on total investment) show an
increasing trend during the life-time of the project.
Net present value (NPV)
Net present value (NPV) is defined as the total present (discounted) value of a time series of cash
flows.
It is a standard method for using the time value of money to appraise long term value an
investment or project dire dawa city to the capital invested. Generally, a project is accepted if the
NPV is positive or on-negative.
Accordingly, the NPV of the project 12% discount rate is found to be 1.5 thousands then, the
project is acceptable.

5 Implementation Scheduling
Generally, it takes about 2 to 4 months period for getting the DPR, obtaining loan sanctions,
approval of plans, finalizing the suppliers and construction of various civil structures and
installation of plant and machinery. Hence, during first year of operations, only six months of
milk procurement can be assumed. Proper planning needs to be done so as to take up various
activities without any break. The activity wise schedule of implementation is to be given in the

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project. The major activities to be undertaking on this project are building and construction
acquisition of vehicles, purchase of cows, Taking care for cows, marketing and the like.

6 Summary
The general project idea will be economically feasible as it was shown in the previous parts of
the feasibility studies. The technical, market and demand analysis estimated based on our
estimation and current prevailing situations and facts gathered from the people around Dire
Dawa city area suppliers and central statistics agency websites. The requirements of raw
materials in the technical analysis part are inclusive of a certain amount of safety margins in case
there are fluctuations in the market.
From the above constraints mentioned, however; we are confident that the proposed project is
profitable and will maximize the wealth of the firms, if implemented at the appropriate and right
time. There are qualitative factors, which support this argument. First, Ethiopia is an agro-
economic based leads industrialization country. Second, the experience of existing firms in the
industry shows the profitability of the sector and its yet unexploited opportunities. Third, the
supports from Government in the form of incentive and tax relief is technical supports are
encouraged to start the investment decision as will. Finally, our project contribute job
opportunities and other related advantages to those who are working in our company as a
permanent and wage workers, farmers and increase the GDP of the countries.

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 References

 Harvey Maylor, project management, 4th ed., 1992, prentice hall Inc.
 Karpagam M. (1999).Environmental Economics. Sterling publishing private limited, New
Delhi
 Keown, Scott, Martin, and Petty (1996).Basic Financial management, 7th ed, prentice-
Hall, INC
 Prasanna Chandra (2002), project, analysis, financing, implementation, and review, 5th
ed. McGraw-Hill, New Delhi
 R.G. Ghattas and Sandra L, McKee (2010).practical project management, activities and
test items file. Prentice Hall, New Jersey, USA
 UNIDO (1972), Guideline for project evaluation, New York

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