Green Farm Trading Import-Export-BUSINESS-PLAN-2024

“Green Farm Trading P.L.
C Export & Import Business Plan”
Contents
List of table ......................................................................................................................... 3
List of Figure....................................................................................................................... 3
EXECUTIVESUMMARY ................................................................................................. 4
1. Introduction ................................................................................................................. 6
2. Background and Description of the business .................................................................. 9
2.1 Products and services .............................................................................................. 10
2.2 Mission, vision and objective of our company ....................................................... 10
2.2.1 Vision ............................................................................................................... 10
2.2.2 Mission............................................................................................................. 10
2.2.3 OBJECTIVE OF THE COMPANY ................................................................ 10
2.2.3 COMPANY VALUES AND CULTURE ........................................................ 11
2.3 Keys to success ....................................................................................................... 12
2.4 Company Strategy................................................................................................... 13
2.5 Competitive Comparison ........................................................................................ 13
2.6 Sales Literature ....................................................................................................... 14
2.7 Industry Analysis .................................................................................................... 14
2.8 Competition and Buying Patterns ........................................................................... 14
3. Organization & Management ........................................................................................ 15
3.1 Organization & Management .................................................................................. 15
3.2 Organizational Structure of Green Farm Trading P.L.C, Company ....................... 16
4. Marketing Plan .............................................................................................................. 17
4.1 Marketing Budget .............................................................................................. 17
4.2 Marketing strategies .............................................................................................. 17
4.3 Target market segment strategy .............................................................................. 18
4.4 Competitive advantage............................................................................................ 20
4.5 SWOT Analysis ...................................................................................................... 21
4.6 Marketing Strategies ............................................................................................... 22
4.7 Value proposition .................................................................................................... 22
4.8 Competitive Edge.................................................................................................... 23
4.9 Promotion Strategy ................................................................................................. 23
4.10 Distribution Strategy ............................................................................................. 24
4.11 Pricing Strategy..................................................................................................... 24
4.12 Sales Strategy ........................................................................................................ 24
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“Green Farm Trading P.L.C Export & Import Business Plan”
5. Financial Study ............................................................................................................. 25

5.1 Financial Assumption ............................................................................................. 25
5.2 Export plan .............................................................................................................. 25
5.2.1 Sales forecast ................................................................................................... 26
5.2.1.1 Export Sale Forecast ................................................................................. 26
5.2.2.2 Import Sales Forecast ................................................................................ 27
5.3 Projected cost of Goods .......................................................................................... 28
5.3.1 Production Cost................................................................................................ 28
5.3.2 Planned cost of goods sold............................................................................... 28
5.4 Working capital Requirement and Menes of Financing ......................................... 29
5.5 Loan repayment Schedule ....................................................................................... 30
5.6 Financial Study ....................................................................................................... 30
5.6.1 Assumptions..................................................................................................... 30
5.7 Financial Evaluation ............................................................................................... 31
5.7.1 Profit and loss statement .................................................................................. 31
5.8 Projected Cash Flow ............................................................................................... 32
5.10 Projected Balance Sheet ........................................................................................ 32
6.CONCLUSION .............................................................................................................. 34
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List of table
Table 1: Value of coffee exports as a share of total exports (in billions USD) ................. 7
Table 2: Company Planned Export sales for next four years(2025-2028)........................ 27
Table 3: Company Planned Import sales for next four years(2025-2028)........................ 27
Table 3: Company Projected purchase cost for next four years(2025-2028) .................. 28
Table 4: Company Cost of goods sold for next four years(2025-2028) ........................... 29
Table 6: Working Capital Requirement & Means of Financing for next first years ........ 29
Table 7: Loan Repayment Schedule ................................................................................... 30
Table 8: Projected profit and Loss statement(in USD) ..................................................... 31
Table 9: Projected Cash flow statement(in USD) ............................................................. 32
Table 10: Projected Balance Sheet (in USD/birr) ............................................................. 32
List of Figure
Figure 1: Export seals Selected Commodities in year 2021/2022 ...................................... 7
Figure 2: Organization Structure of the company............................................................. 16
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EXECUTIVESUMMARY
The Ethiopian economy continued to register a notable growth similar with the growth
registered during the past one decade. A remarkable performance has been registered in the
GDP and per capita income. Besides, the export performance of the country has also shown
a robust performance though a slight decrement has been registered recently due to
international market fluctuation in coffee and other exportable items.
Green Farm Trading P.L.C import and export is a private limited company established in
the year 2015 E.C with the objective of exporting coffee commodities: washed, Specialty
coffee and Roasted coffee to oversee markets with competitive prices and import medical
equipment and Medical drug for domestic sales.
The company has registered a significant improvement in its export performance and
running a profitable venture since its establishment. The sales amount has drastically will
increased in the year 2025 where the company has exported quality exportable items to the
different parts of the world. Besides, significant amount revenue has been also generated
from the import business. In the next fiscal year of the country, our company will be export,
washed, specialty sun-dry coffee, anaerobic, carbonic and honey coffee and value added
roasted coffee and import items where the company will be generated a sale of more than
USD 5.421 million. The company will make significant contribution to the national
economy through foreign currency generation and creation of employment opportunity
which vital ingredient to the national economy.
In the year 2025/2017 E.C budget year the company has planned to procure different coffee
products exportable items at a cost of birr 37,040,047 (USD 649,825.39) and planned to
generate a sale of birr 309.037 USD 5.421 million. The gross profit or operating of the
company expected to be around Birr 275.88(USD 4.840) million and to pay tax around birr
266.19(USD 4.670) million to the government. The products are expected to reach the
common destinations of the company where a strong relationship has been created with
Kodancha Import Export & Distributor Company (America origin). However, the
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commitment of the company to rich new market centers will continue through participating
in different international trade fairs.
Working capital requirement and Menes of Financing:
The business has been operating its export business from the own source and debt finance
obtained from banks. A similar approach is going to be implemented in order to maximize
the export proceed that has been in the previous periods. As described above, the business is
expected to incur a total cost of goods sold amount of birr 37.040 million. This amount is
expected to be covered from own source is about 7.040 million (19%) and bank finance is
30 million (81%). As a result, the total working capital amount is expected to be financed
by debt source of finance from a bank taking the reasonable working capital cycle. Hence,
the business requires a working capital of birr 37.040 million so as to support its plan is
given below figure.
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1. Introduction
The Ethiopian economy continued to register a notable growth similar with the growth
registered during the past one decade. As per NBE report, in recent fiscal year, the real
GDP grew by10.2 percent, higher in the sub Saharan African countries. The growth was
majorly registered in the industrial sector (21.6%) and the growth registered in the service
and agricultural sector was 10.2% and 4.4% respectively. Besides, it is stated in the NBE
report that Nominal GDP per capita went up to USD 691 from USD 639.6 and real per
capita GDP to USD 418 against the preceding year.
It is hardly factual that Ethiopia is endowed with high potential for agricultural production.
Ethiopia is becoming the hub of agricultural production in Africa due to its continual
economic growth and unreserved effort made by the government to boost the agricultural
sector in particular and the whole economy in general. As per NBE report, in the recent
fiscal year, the agricultural sector depicted a moderate growth rate of 6.4 percent mainly due
to 7.2 percent increase in agriculture production, in general and 6.3 percent expansion in
grain coffee production in particular.
As per the report of United state agriculture Department in 2023, Ethiopia is Africa’s largest coffee
producer and the world’s fifth largest exporter of Arabica coffee. Coffee is Ethiopia’s number one
source of export revenue generating about 30-35 percent of the country’s total export earnings. All
the coffee produced in Ethiopia is of the coffee Arabica variety. In 2023/24 total production is
forecasted to be 8.35 million 60 kg bags (501,000 MT). The coffee industry in Ethiopia is the driving
force of the country’s economy, socio-cultural, and spiritual life of the people. The livelihood of 25
percent of the country’s population is directly or indirectly dependent on the coffee value chain will
remain so in the years to come.
Recently, Ethiopia is exporting different types of agricultural products with a progressive
increment in volume and value during the last four years. The share of coffee to the total
agriculture export of the country is immensely increased in range 34-46% from 2018/19 to
2021/22 while, coffee exports share of total exports range from 29-46 % from 2018/19 to
2021/22. The result is due to the interest of foreign buyers on the coffee of Ethiopia has
increased due to the organic quality of the products offered to the international market.
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However, a slight decrement in the export of coffee were registered. The detailed
information is presented in table 1.
Table 1: Value of coffee exports as a share of total exports (in billions USD)
Item 2018/19 2019/20 2020/21 2021/22

Total Country export value 2.7 2.67 3.41 3.6
Total value of Agricultural export 2.3 1.94 3.16 3.3
Agricultural exports share out of the total exports (%) 85 73 93 92
Coffee export value 0.789 0.82 1.1 1.52
Coffee exports share of the total agricultural exports (%) 34 42 35 46
Coffee exports share of total exports (%) 29 31 32 42
Source: United state agriculture Department in 2023

The overall volume of export has not significantly declined. However, the proceeds
generated has decline due to lower international commodity price. When we look at the
composition of export commodities, coffee has taken the major share which has covered
62% of the total export proceed of the country. Next to coffee, oil seeds covered 21% of
the proceed, gold 8%, and pulses 9%. For the detailed information is given below Figure 1.
Export seals selected Commodties 2021/22 years

Gold, 8%
Pulses, 9%
Oilseeds,
21% Coffee, 62%
Figure 1: Export seals Selected Commodities in year 2021/2022
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Despite the reduction in the value of export, the consumption of coffee has increased
dramatically in Europe and south Asia. Europeans are the largest importers and processors
of coffee. The various usage potential of coffee makes them a valuable commodity in
Europe, especially for the beverage industry, but also for cosmetics and industrial purposes.
It is needless to state that the enormous growth potential of the Ethiopian coffee sector in
combination with Europe’s and Asia increasing demand of quality coffee products bring
great opportunities. Hence, there is an appealing market for the agricultural commodities of
Ethiopia.
In addition to the favorable international market, the working policy of the government and
the due attention given to the export business is another opportunity for the Ethiopian export
business. Moreover, the government has taken the following measures so as to bring
economic growth:
a) Abolishing of almost all export taxes
b) Strengthening and enhancing institutional support for the transport sector
c) Liberalization of the foreign exchange
d) Enhancing private sector development and private public partnership through
providing effective industry association and creating a forum for consultation
between the private sector and development
The country favorable policies and attractive incentive of the government on the one
hand and untapped business opportunities of the export sector on the other hand, the
founder and owner Green Farm Trading P.L.C has strongly engaged in the export
sector.
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2. Background and Description of the business
Green Farm Trading P.L.C export and import is a Private Limed company established in
the year 2015 E.C with the objective of exporting various coffee products washed, specialty
sun-dry coffee, anaerobic, carbonic and honey coffee and value added roasted coffee
products to oversee markets with competitive prices.
The company is managed by the PLC founder members with KODANCHA IMPORT
EXPORT & DISTRIBUTOR LLC (America origin) together with other supportive
qualified and experienced management team. The owner/manager of the business has
acquired adequate experience in both the import and export business and the remarkable
performance registered is the witness for the caliber of the founder.
KODANCHA IMPORT EXPORT & DISTRIBUTOR, LLC work with Green Farm
Trading P.L.C company. The company originated North America at Atlanta Georgia, direct
distributors specially Ethiopia coffee in USA for gas station food and beverage for coffee
shop in different events we have also online sales platform. The company has a big
agreement with food marketing company and wholesalers and specialty coffee roasters in
America and othe world market.
Green Farm Trading P.L.C has located its head office in Addis Ababa, Sub-city (Zone):
woreda Kirkos kebele 08 and room No: 03/14. The facility of the head office includes
reception areas and office rooms. Moreover, the company has rent warehouses and branch
offices at Kality sub-city.
Our company also owns two primary coffee processing industries at sidama regional
state and a Coffee Out-Growers farm at Sidam Regional State, Est Zone Bona Woreda, at
Kemasho kebele which specialize produces high land coffee. The farm is 300 ha. The farm
is well mange with the necessary coffee cultivation technology.
Coffee being one of Ethiopia’s best known and largest export commodities among
agricultural crops, they have always been of interest to our company. Prior to entering the
Coffee export business, we conducted a study that revealed there are gaps throughout the
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entire quality coffee supply chain, from farm export, that can be filled to create efficiency
and cut costs within the local market in Ethiopia. Doing so has made us competitive and a
top choice from Ethiopia for exporters globally.
2.1 Products and services

Our company is fully engaged in import and export business. Some of the import and export
items of the company are stated below.
Export
a) Arabica Coffee
 Washed coffee,
 specialty sun-dry coffee,
 value added roasted coffee.
b) Future Products
 anaerobic coffee,
 carbonic coffee
 honey coffee and
a) Import
 Medical equipment
 Medicine drugs
2.2 Mission, vision and objective of our company

2.2.1 Vision
To be a leading importer to Ethiopian market and exporter of commodity products to the
global market by 2028.
2.2.2 Mission
To provide the best products and services to our customers; the best working environment to
our employees and a good return to our stakeholders
2.2.3 OBJECTIVE OF THE COMPANY

The Ethiopian export market holds significant potential. The current free market system of
economy has encouraged private investments in the export industry. Therefore, the
increasing numbers of such business enterprises gives an indication that there will be a
growing demand for exportable items.
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It is this conviction that has initiated the owners to continue Out-growers Contract
farming and export. The principle objectives of this garment industry are;
 To open a new export destination to North America, Asia and Europe for our
commodity products
 Establish strategic relationships with 10-15 American importers in Atlanta
Georgia, San Francisco, & Seattle etc;
 to achieve compound annual growth rate of 26%;
 to be one of the top five importer of medical equipment and medicine drugs
of commodities,
 To enhance productivity, value addition and competitiveness of farm
products;
 To contribute and strengthen the development of the export industry sub-
sector;
 To generate foreign currency;
 Increase gross margins in the next four years;
 To transfer the latest technology in the respective field;
 To generate revenues in the form taxes for the government;
 To provide additional employment opportunities; and
 To explore domestic and foreign markets.
Having those objectives, the company will contribute much in meeting the countries
demand for various coffee products and raising employment rate. It will also enable the
owners of the company to increase their business effort and to re-invest on potential
investment areas.
2.2.3 COMPANY VALUES AND CULTURE

The following are components of the company’s values and cultures.
The company respects the values and contributions of every employee as

essential for its success.
The company communicates openly and honestly.
Unethical and dishonest practices have no place in the company
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The company recognizes and rewards performance

The company believes that staff development is integral part of its success
The company strongly believes that teams, not individuals are the essential
unit of the organization for achieving high performance and accelerating
growth.
The company believes in societal support and community development,
hence, all its personnel will obey to this core value.
2.3 Keys to success

Trading and management experience: Green Farm Trading P.L.C export-
import has two divisions one export coffee, the other importing medical
equipment and medicine drugs. It has grown the company from zero to half a
million-birr turnover in short period of time.
Financial strength: Green Farm Trading P.L.C export-import has cash and has
been working with different banks and financial institutions and till time, it has a
good credit history among them, moreover, it is successful on making profits and
is able to raise funds.
Product quality and customer satisfaction: the experience that our company
has accumulated over the last one years has made it highly efficient in meeting
customers need and lead time. We closely monitor the quality of imported items
and exported commodities. We have an enduring relationship with key suppliers
that have enabled the company to respond to customers enquiries quickly and
effectively.
Improved manpower and fair labor cost: Ethiopia has more educated graduate
in its educational system, which will provide an abundance of easily trainable
promoters and sales graduates that will earn a substantial income.
Government regulations: Devaluation of currency, abolishing of almost all
export taxes, duty free privileges and financially support.
Export market: Green Farm Trading P.L.C export-import has a successful
export company that generate foreign currency that will be used to finance import
and capital expenditure for the hotel and manufacturing business
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2.4 Company Strategy

We aim to add value to Ethiopian coffee products by becoming dependable and professional
partners. To do so we have the following strategy:
Ensure that we purchase quality coffee at market price
Track the volumes, qualities and prices of coffee being traded globally in general,
but more specifically Ethiopian coffee such as washed, specialty sun-dry coffee,
anaerobic, carbonic and honey coffee and value added roasted coffee, etc
Use our subscriptions to coffee industry specific publications such as Agri Money
&AG Look to gather data
improve our productive working relationship with out-growers farmers and
cooperatives
Develop a successful relationship with all the stakeholders of the Ethiopian coffee
vertical integration and other market linkage & implement an analytical
purchasing strategy based on all pertinent variables.
2.5 Competitive Comparison

In order to differentiate our product, coffee, which is a commodity, from the product
offering of competitors, all beans are guaranteed fresh and are shipped within seven days
of preparation. In addition, all beans are sorted at ninety-five percent screen 18 and above
compared to the industry standard ninety percent screen of 17 and above. The beans
shipped by Green Farm Trading P.L.C is therefore larger than most and are guaranteed
fresh. In addition, all of the farms from which Green Farm Trading P.L.C purchases
coffee adhere to environmentally sound farming practices and avoid the use of pesticides
and chemicals in crop production.
There are approximately more than sixty competitors who offer a product similar to ours.
Our research indicates that with the additional capacity we would become one of the top
nine, in terms of quantity, providers. We have the advantage of established distribution
channels and reputation. In addition, improvements to our marketing efforts will further
separate us from the larger market and from our close competitors.
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2.6 Sales Literature

Green Farm Trading P.L.C currently works with one company in the United States
who handle all of our shipments and distribution. Likewise, we have dealt with the same
America wholesalers, for internal sales, each year. Sales to this point have been handled
through personal selling. Additional sales literature will include a website, direct mail to
specialty roasters and importers, and print advertising in several trade publications
including “Green Coffee Farm Trading Coffee Times’’, a monthly publication which
targets American business dealing with issues relevant to the coffee industry.
2.7 Industry Analysis

Coffee has been a growing industry for the past five years. The most notable growth has
been in the American market where imports have increased almost one-hundred percent
and the market price has nearly doubled. The number of specialty roasters has increased
from a handful of well-known companies to thousands of independent entities. There is a
constant struggle within this market to produce the best coffee and serve one or more
niches within the larger market. Ethiopian coffee producers and exporters have made
great efforts to improve coffee cultivation and post-harvest handling techniques,
processing methods, and distribution in order to better serve this growing market.
Demand for Ethiopian coffee is currently greater than supply.
2.8 Competition and Buying Patterns

The purchase decision for our customer is based on trust in our process and bean
selection. We have established relationships with our customers which extend beyond
that of the buyer/seller. The Green Farm Trading P.L.C label means that the product
has been chosen and prepared with the highest quality standards in mind. Our beans are
priced up to nine percent higher than similar products. Our customers are willing to
pay more for our product because they are familiar with us and trust in the quality of our
beans. This is the result of their success in the marketplace with our product.
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3. Organization & Management

3.1 Organization & Management
It is clear that the organization structure of a certain business should be designed in a view
of accomplishing the mission and vision of that business. Accordingly, the overall
organizational structure set up of the company is tailored to distribute a high competitive
agricultural commodities based on customers’ requirement.
Functional departments which have a direct role linked to the objective of the organization
and the support units are identified and organized accordingly. In this connection, the
human resource planning is conducted considering the required complexity, volume of
production capacity and general production flow. The business has already established a
governing structure in order to accomplish the pre-determined objectives of the
organization.
At the apex of the Organization Chart there is a General Manager who supervises and
manages the overall activities of the company. Under the General Manager there are
functional departments so as to accomplish the objectives of the company. Moreover, in
order to meet the opportunities of the growing export market and import to strengthen the
strong relationship created with the foreign buyers, the company has broaden its staff base
and employed qualified and experienced employees. The management composition and
Organizational Structure is presented below.
No. Name Position Academic Experience

1 Mss. Mintamir Teesfay Tesiso G/Manager BA in Accounting 6 years
2 Depute BA in business 7 years

Bereket Alemayhu Manager Administration
3 Kalikidan Wonidmu Accountant BA in Accounting 7 years
Abrham Astatike Import and BA in Master of in 10 Years
export business
4 coordinator Administration
5 Rahel Dibekulu HR manager Ba in HR managment 7Years
As indicated in the table above, the company’s staff profile in general and management
members in particular has an acquired ample experience in the line of export and import
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which will contribute significantly to the success of the company. Moreover, in order to
create self-belongingness among the employees and the management members, an intensive
work has been made to build a shared vision and mission.
The dramatic performance shift registered during the last years is the realistic witness for
the work done in enhancing the work culture and commitment of the employees. Upgrading
the efficiency of the employees and the management members through intensive training
and education is one of the pillars of the company aiming to keep the success journey of the
company.
3.2 Organizational Structure of Green Farm Trading P.L.C, Company
As depicted below the organization structure of the company is designed so as to achieve

the vision and mission of the company. The general manager is responsible for all activities
of the organization and supported by procurement, marketing and export, finance and
administration heads. The governing structure of the company is indicted below.
Figure 2: Organization Structure of the company
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4. Marketing Plan
4.1 Marketing Budget
In the budget year the company has allocated a significant amount of Birr for Export
business promotion from its own source. Aggressive marketing strategies will be deployed
so as to accomplish the stretched plan of the company. Besides, the company will continue
its effort to get sponsors who have an intention to support Export or companies to promote
their business.
4.2 Marketing strategies

 On line marketing and sales: Green Farm Trading P.L.C has been developing a
fully interactive website where all the company brand coffee (Sidama type) will
be posted, with detail production profile. Customer could browse through the
website to find the product they need. The online marketing and sales platform
will create transparency and visibility of products. Customers can compare our
company product against the competitors.
 work with Green Farm Trading P.L.C has make an agreement with FOREIGN
company KODANCHA IMPORT EXPORT & DISTRIBUTOR, LLC, which
is originated in North America at Atlanta Georgia, a direct distributors Green
Farm Trading P.L.C coffee in USA for food and beverage company and coffee
shop in different events and online sales platform for different countries.
 To use the media: TV, radio and print Medias are the strategic channels to reach
the customers. The company has allocated sufficient fund for creative and
targeted marketing campaign emphasizing the company’s strong points such as
the quality of products it will import.
 Use recruited distributors to reach the customers easily
 Use the company’s marketing staff
 To subscribe and contact, globally known market promoting companies that give
business opportunity to their members.
 To explore market opportunities through the use of ICT and enhancing our
accessibility through the company wbesite.
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 To use buyers e-mail & web address to offer to them our prices & products on
daily basis.
 Contact Ethiopia mission in abroad to bridge us to coffee buyers.
 To travel to some important trade fairs & locations where we can able to contact
the buyers face to face.
 Give special attention to the quality & quantity all coffee types, we offer to
buyers.
 We have to focus on Research & Development (RD) program which enable us to
maintain the cleanliness and quality of our products which may maximize the
buyers’ satisfaction.
 To keep our documentation service up to date, clear & timely.
 Avoid long sales contract, to keep away from high stock carrying costs, interest
rate and also carefully to observe the availability of the supply in the market for
the goods we plan to sell in short span of time.
 To make an effort to match the purchasing price of the raw material & the rest of
production costs & profitability of the company in the meantime strengthen our
cost control mechanism.
 To strengthen coffee out-grower fo quality supply of coffee cherries.
 To exploit our networking skills to build the reputation & image of our company
and country.
4.3 Target market segment strategy

Target market segmentation strategy is crucial to bring customer satisfaction that is
considered as the foundations of any business venture. Accordingly, our company has
three market segments
Individual consumers: the first are individual customers who need export items and
imported goods for new businesses. These customers are concerned about the quality
and price of products, whether the products can be trouble free, whether the product can
feet in to their needs and above all they want to know whether it is good value for money.
The marketing strategy of our company is first to let its self known to these category of
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customers through media advertising, testimonials and words of mouth from new
customers who are satisfied with the product they bought and the service they received.
One of the major client complaints-particularly who come from advanced economies is to
do business. Our company is quite aware that customer experience is vital for purchase
decision. Hence, it will select its sales team to understand the product completely to
answer the entire range of questions that the customer might raise, and help the customer
to select the right product, to achieve that the company will provide extended training to
sales team on building relationship, understanding the customer need and help the
customer to make the right decision for its particular needs. It will also provide after sales
follow up to avoid post purchase anxiety or what is known as buyer’s remorse.
Distributors: the second customers are distributors. Our company cannot have show
rooms all over the country. The distributors are living in different cities of the countries.
Hence, Green Farm Trading P.L.C does not expect all the distributors, individual
buyers or Medical equipment and drugs wholesalers to travel its show rooms. Our
company will have marketing promotions through TV, printing media and Radio but also
make its products easily accessible through agents and distributors in selected regional
big towns like Mekele, Gonder, Humera, Bahirdar, Semera, Hawassa, Diredawa, Jimma,
Gambella, Assela etc.
Institutional buyers: the third categories are institutional buyer at the local and
international level. There are a number of hospital and clinics, service providers,
government owned institution and private health sectors etc. these companies usually buy
through competitive bidding. They consider two things for purchase. The first is
technical evaluation of the products by buying committee. This often account between 50
to 70%. However, under Ethiopian procurement principle, companies assembling or
manufacturing inside the country get 25% compared to importers. Hence, this is a big
help to win the bid. Our company has Chinese products with European standard product
compared to other Asian suppliers.
American importers of green Arabica beans: Market research suggests that there are
approximately 200 importers of green Arabica coffee on the West and East Coasts of the
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United States that would be able to handle the quantities of our shipments and are in our
target market. Combined, they import a total of three to four million/60kg bags of
Ethiopia Arabica coffee per year.
4.4 Competitive advantage
Threat of new
entrants
Threat of new
entrants
Bargaining
Bargaining power Rivalry among power of
of suppliers the existing buyers
competitors
Threat of
substitute
products or
services
Barraging power of suppliers: our company secured a reliable source of suppliers for
the exported items and import itesms. The relationship maintained with the suppliers is
based on win-win approach.
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Bargaining power of buyers: bargaining power of buyers is very low. The sector is not
new and our company is not going to be dependent on a single or few big buyers.
However, a maximum possible effort is exerted to retain potential buyers of the company.
Threats from new entrants: threat from new import and export entrants could be higher
when the business becomes attractive and the industry develops. More local and
international companies may come to join the market to compete the same level as our
company. Nevertheless, our company will have early start advantage to create a market
brand, which will be recognized for quality products, good customer service at an
affordable price.
Rivalry among exiting competitors: currently, there are hundreds of existing importers
and exporters in Ethiopia. Being that there are some 15 to 20 competitors, and if they
attempt to, our company will easily win by providing superior products and excellent
customer experience at the lowest price.
4.5 SWOT Analysis
Strengths
 The company has strong financial resource
 Strong supplier relationship
 Healthy relationship with creditors and financial institutions
 Strong commitment of the owner and top level management
 Strategic office and warehouse location
 Personalized customer handling and treatment
 Sufficient number of warehouse and resources
 Selling modern quality medical equipment & drugs to satisfy the customer
need
Weaknesses
 Traditional organizational structure and owner dependent decision
making system
 Lack of branding, promotion advertisement
 Highly centralized controlling and decision making system
 No formal delegation of duties and responsibilities among staffs
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Opportunities
 Highest international demand to Ethiopia Organic Arabica Coffee
products
 Highest international demand to Ethiopian organic products
 Attractive government policy towards exporting local products
 High demand and supply gap in both import and export items
 Willingness of financial institutions and creditors to give loans
Threats
 Foreign currency limitations
 Existing competitors capacity
 New business entrants
 Price competition among competitors
All the above issues being the case, the company has adjusted itself to curve the
weakness and to maximize the strength and opportunities.
4.6 Marketing Strategies

The main strategy of the company is to broaden customer base and enhance customer
satisfaction. The following are the tactics to grow customer base.
 Promoting and marketing our imported products and export products
 Providing consistently high quality exportable and imported items
 Offering good value products and fast treatment to our customers
4.7 Value proposition

Green Farm Trading P.L.C Export and import will use their branch offices and
warehouse to promote and increase sales at their market centers. Its value proposition is
to have high quality, competitive price and excellent customer base services.
Quality Low Excellent

product price customer
service
22
4.8 Competitive Edge

with American importers, and Ethiopian coffee growers, washed and sun-dry coffee
suppliers. Our Company has received affirmation of the demand for their product in the
form of requests from importers for larger product shipments. Ours is a superior product
offering because of the larger average size of the bean and because we purchase from
growers who rely on the use of chemicals and pesticides less than two percent of the
time. In addition, prompt preparation and shipment provides importers with a product that
is up to one month fresher than beans sold by many exporters.
To run our successful business, the following competitive edges are to be considered;
 Be first in the market
 Customer service
 Price
 Quality of products
4.9 Promotion Strategy

Relationships are key to success in the export business. Importers in Florida have on
several occasions visited the Green Farm Trading P.L.C facility, family home, and
farms from which coffee is purchased. Additional accounts and contacts with West Coast
importers have all been established and maintained through personal contact. Personal
selling will remain our most important means of promotion. KODANCHA IMPORT
EXPORT & DISTRIBUTOR LLC (America origin) will continue to lead this effort.
In addition to personal selling Green Farm Trading P.L.C has identified several
specialty publications within which print advertisements will run. Direct mail, in the form
of personal letters will also be used to communicate with existing and potential clients.
Our budget for promotion activities is as follows:
 Personal Selling which includes phone expenses, travel for our comopany
employees and for importers who we invite to Ethiopia: ($USD) 5,000 annually.
 Print Advertising in three specialty publications and direct mail: ($USD) 2,000
monthly.
 World Wide Web presence: ($USD) 5,000 to produce a new site and $500
annually to maintain the site.
23
4.10 Distribution Strategy

Distribution is one of the greatest challenges faced by Green Farm Trading P.L.C. The
distribution system of Ethiopia is largely insufficient. Moreover, taxes, specifically excise
taxes are high. However, the distribution costs for exports will be absorbed by us.
Increasing the volume of our exports makes us eligible to receive reduced fees and helps
ensure that trucks and rail cars are running at maximum capacity.
4.11 Pricing Strategy

Because Green Farm Trading P.L.C adheres to higher quality standards, the price of
our coffee is slightly higher (four to nine percent) than the market average. The import
market largely determines the price of imported coffee in the United States. Beans that do
not meet Green Farm Trading P.L.C quality standards are resold on the Brazilian
market at the current market price. Organic Arabica Green coffee, on the import market,
now sells range from US$ 213.56-670/60kg bag. According to Green Farm Trading
P.L.C pricing strategy, washed coffee would sell for approximately US$ 664/60kg bag,
sun-dry specialty coffee. Would be sell US$ 750/60kg bag and roasted coffee 3/85 per
kg. Importers have to this point been willing to pay the additional cost.
4.12 Sales Strategy

Green Farm Trading P.L.C strategy focuses first on meeting the increased demand
from importers with whom we have established relationships for larger orders. These
importers are critical to our ability to acquire additional accounts on both the East and
West coasts of the United States without having to spend a great deal on sales efforts.
Secondly we will focus on increasing the volume, while maintaining the percentage of
sales, of beans sold to the internal Ethiopian market. When we have reached maximum
sales to existing channels we can then shift the majority of our focus to securing
additional import accounts.
24
5. Financial Study
5.1 Financial Assumption
We want to finance growth through a combination of long-term debt and cash flow.
Purchase of the larger facility and equipment will require approximately sixty percent
debt financing. Additional technology will be primarily financed with cash-flow.
Inventory turnover must remain at or above four or we run the risk of backing up orders
and jeopardizing our freshness guarantees. We have had no problems with accounts
receivable and we expect to maintain our collection days at 30 with thirty percent of sales
on credit. In addition, we must achieve gross margins of fortiy-five percent and hold
operating costs no more than sixty-five percent of sales.
5.2 Export plan

As it is described above, the company has set all the necessary preconditions so as to boost
its export performance. The strategic objectives are designed so as to fulfill the broader
vision and mission of the company. A maximum effort has been exerted so as to create a
shared vision among the employees and management members of the company. The
manpower is furnished with employees who have possessed the necessary experience and
qualification in which the financial performance achieved so far is the witness. The export
products are clearly defined based on product specification and packaging. As part of its
diversification strategy, the company was exporting and is going to export the following
items to the foreign market
Export Products
a) Arabica Coffee
 Washed coffee,
 specialty sun-dry coffee,
 value added roasted coffee.
b) Future Products
 anaerobic coffee,
 carbonic coffee
25
 honey coffee and

b) Import
 Medical equipment
 Medicine drugs
5.2.1 Sales forecast
5.2.1.1 Export Sale Forecast

The company has been exporting different three type of coffee products to the different parts
of the world. The business has been exporting washed, sun-dry specialty and roasted coffee
North America and Europe. As stated above, a significant amount of foreign exchange has
been generated from the exported coffee. After accumulating the necessary experience and
maintain the required reputation, Green Farm Trading P.L.C, export-import has planned
to enhance his export business. The following basic assumptions are being deployed in order
to enhance the export in a drastic manner:
a) Ample experience has been acquired so far from the export business
b) The business has got the necessary reputation from the well-known North
America and Europe coffee commodity importers
c) The business is established and operated by qualified and experienced personnel
and foreign sales partnership company
d) Our company is dedicated to finding new markets and new customers by
participating in trade fairs. Trade fairs help us stay in touch with the global
industry and find new opportunities. So far we have been participating in different
trade fairs and recruited potential customers.
e) We have contracts at hand in North America with KODANCHA IMPORT
EXPORT & DISTRIBUTOR LLC (America origin)
f) The export market of the country has shown favorable improvement after the
foreign exchange devaluation made by the government.
Considering all the above assumptions in to account, the company is going to deploy its full
effort so as to enhance its sales performance. Hence, for the coming four years the business
has intended to accomplish the following export sales performance. is given below table 1.
26
Table 2: Company Planned Export sales for next four years(2025-2028)
Production years Unit Y-1 Y-2 Y-3 Y-4

Planned export volume(Kg)
Company Parchment Coffee Export Kg/Year 60,480 69,120 77,760 86,400
Company Su-dry Coffee Export Kg/Year 272,160 311,040 349,920 388,800
Company roasted Coffee Kg/Year 39,600 41,580 43,659 45,842
Total Export Plan kg 372,240 421,740 471,339 521,042
Sales Price ( Birr)
Company Parchment Coffee Birr/Kg 650.00 682.50 716.63 752.46
Company Su-dry Coffee Birr/Kg 760.00 798.00 837.90 879.80
Roasted coffee Birr/Kg 220.00 231.00 242.55 254.68
Revenue Assumption
Company Parchment Coffee Birr/Year 39,312,000 47,174,400 55,724,760 65,012,220
Company Su-dry Coffee Birr/Year 206,841,600 248,209,920 293,197,968 342,064,296
Company roasted Coffee Birr/Year 8,712,000 9,604,980 10,589,490 11,674,913
Total Revenue in Eth.birr Birr/Year 254,865,600 304,989,300 359,512,218 418,751,429
Total revenue in USD 4,471,326.32 5,350,689.47 6,307,231.90 7,346,516.30
NB: it is assumed that 50% of the export sales is going to be purchased import medical
equipment and medical drugs for domestic market.
5.2.2.2 Import Sales Forecast

As can be seen above, our plan is to export 372.240 MT of various commodities and
generate revenue of birr 254.865 million (4.471USD) to the business. Besides, it plays a
pivotal role in curving the foreign exchange problem of the country since it has a potential
to generate a significant amount of foreign exchange. Based on the government incentive
export policy, it is assumed that 50% of the export sales (USD 2.025million) is going to be
purchased import medical equipment and medical drugs for domestic market. Hence, for the
coming four years the business has intended to accomplish the following import sales
performance is given below table 3.
Table 3: Company Planned Import sales for next four years(2025-2028)
IMPORTED SALES REVENUE Unit 2025 2026 2027 2028
Item 01(Medical Equipment) Birr/year 90,135,971 90,135,971 90,135,971 90,135,971

Item 02(Medical drugs) Birr/year 90,135,971 90,135,971 90,135,971 90,135,971
Total Imported Revenue (40% Birr/Year 180,271,942 180,271,942 180,271,942 180,271,942

Margin)
Total Imported Revenue USD/Year 3,162,665.64 3,162,665.64 3,162,665.64 3,162,665.64
27
5.3 Projected cost of Goods

5.3.1 Production Cost
An equivalent volume of commodities has to be procured in order to meet the above
stated planned export, washed, sun-dry specialty and roasted coffee the items to be
exported in the coming export periods of the business. The overall purchasing raw
material, packing material and processing cost is estimated Eth.birr 33,022,665 at the
first year of the business.
Table 4: Company Projected purchase cost for next four years(2025-2028)
Planned purchase volume 2025 2026 2027 2028
Red cherries kg/year 372,240 421,740 471,339 521,042
Sacks/Jute Bag Pices 10,080 11,520 12,960 14,400
Price per units

Red cherries birr/kg 58.00 67.90 68.40 68.42
Sacks/Jute Bag birr/pieces 250.00 262.50 275.63 289.41
Cost Of Goods
Red cherries Cost Birr/year 21,589,920 28,636,146 32,237,231 35,649,560
Sacks/Jute Bag Cost Birr/year 2,520,000 3,024,000 3,572,100 4,167,450
Sub-total Raw Meatal cost Birr/year 24,109,920 31,660,146 35,809,331 39,817,010
Processing Cost
Processing cost Birr/year 423,360 483,840 544,320 604,800
Shipment Cost Birr/year 3,931,200 4,492,800 5,054,400 5,616,000
Salary cost Birr/year 3,542,400 3,719,520 3,905,496 4,100,771
Labour Cost Birr/year 299,100 314,055 329,758 346,246
Utilities Cost Birr/year 716,685 716,685 716,685 716,685
Sub-total Processing Cost Birr/year 8,912,745 9,726,900 10,550,659 11,384,502
Total Operating Cost Birr/year 33,022,665 41,387,046 46,359,990 51,201,512

Total Operating Cost in USD 579,345 726,089 813,333 898,272
5.3.2 Planned cost of goods sold

It is well known that there are additional costs every exporter bears in addition to the main
purchase cost of the commodities. Hence, the following assumptions are deployed in order
to determine the total planned cost of goods sold of the business.
 Packing cost is assumed to be birr 250 per pices of the purchase cost
 Loading and unloading cost is assumed to be 1% of the purchase cost
 Clearing cost is assumed to be 1.5% of purchase cost
 Market expense to be birr 1% of purchase cost
 Transit charge is assumed to be 2% of purchase cost
28
Taking in to account the above stated assumptions, the annual cost of goods sold of the
business can be depicted in the following table 4 beneath
Table 5: Company Cost of goods sold for next four years(2025-2028)
Cost of goods sold Units Business year

Y-1 Y-2 Y-3 Y-4
Administration & selling expenses
Utilities Birr/year 150,000 150,000 150,000 150,000
Repairs & renewals Birr/year 1,422,120 1,422,120 1,422,120 1,422,120
Stationary and printing Birr/year 50,000 50,000 50,000 50,000
Marketing Expenses Birr/year 1,545,188 1,545,188 1,545,188 1,545,188
Insurance expense Birr/year 717,993 717,993 717,993 717,993
Professional fees (legal, audit, etc.) Birr/year 50,000 50,000 50,000 50,000
Total of Adm and Selling Exp USD/Year 3,935,302 3,935,302 3,935,302 3,935,302
As disclosed above, the total cost of goods sold is assumed to be birr 3.935 million in the
first year of the plan period.
5.4 Working capital Requirement and Menes of Financing

The business has been operating its export business from the own source and debt finance
obtained from banks. A similar approach is going to be implemented in order to maximize
the export proceed that has been in the previous periods. As described above, the business is
expected to incur a total cost of goods sold amount of birr 37.040 million. This amount is
expected to be covered from own source is about 7.040 million (19%) and bank finance
is 30 million (81%). As a result, the total working capital amount is expected to be
financed by debt source of finance from a bank taking the reasonable working capital cycle.
Hence, the business requires a working capital of birr 37.040 million so as to support its
plan is given below table 6..
Table 6: Working Capital Requirement & Means of Financing for next first years
Working Capital Requirement 2025
Production Cost UOM
Raw material cost Birr/year 24,192,000
Packing Material Cost Birr/year 2,520,000
Shipment Cost Birr/year 3,931,200
Salary cost Birr/year 3,542,400
Labour Cost Birr/year 299,100
Utilities Cost Birr/year 716,685
Sub-total of Production Cost Birr/year 33,104,745
Administrative(Cost of Good Sola)
29
Utilities Birr/year 150,000

Repairs & renewals Birr/year 1,422,120
Stationary and printing Birr/year 50,000
Marketing Expenses Birr/year 1,545,188
Insurance expense Birr/year 717,993
Professional fees (legal, audit, etc.) Birr/year 50,000
Sub-total of Cost of Good Sold Birr/year 3,935,302
Total Working Capital Cost Birr/year 37,040,047
5.5 Loan repayment Schedule
The total investment capital of the project is to be financed from the promoter’s equity
and bank loan. Out of the total capital birr 30 million (81%) is contributed by the
promoter, Mr.Biruke Meles while the remaining balance of birr 7.040 million
(19%) is to be financed by local banks. The bank loan will be repaid based on the
following terms and conditions:
 Loan amount = birr 30 million
 Installment period/ term = 5years
 Interest on loan (including service charge) = 7.5%

Table 7: Loan Repayment Schedule
year Amount of Principal Instalment Interest (monthly) Total
Outstanding due Payable at 7.5% Amount
1 30,002,438 6,000,488 2,250,183 8,250,670
2 24,001,950 6,000,488 1,800,146 7,800,634
3 18,001,463 6,000,488 1,350,110 7,350,597
4 12,000,975 6,000,488 900,073 6,900,561
5 6,000,488 6,000,488 450,037 6,450,524
Total 24,001,950 6,750,549 36,752,986.64
5.6 Financial Study

5.6.1 Assumptions
The following assumptions are developed considering the historical performance of the
business and other market parameters
 The plan life is assumed to be 4 years
30
 The export volume of the business is expected to increase by 5% on wards the

second year and, the cost of procuring the exported items and the selling price is
assumed to increase similarly by 5%
 Salary and wage is assumed to be birr 3,542,400 per annum which is covered by
owners and assumed to increase by 5% per annum
 Marketing and communication cost is assumed to be 1% of sales
 Administrative costs are 11% of working capital expense
 Office rent is assumed to be 180,000 and expected to increase by 5%.
 Interest rate is assumed to be 7.5% per annum
 Income tax is assumed to be 30%
5.7 Financial Evaluation
5.7.1 Profit and loss statement

As per the projected profit and loss statement, the business is profitable in all the periods
considered.
Table 8: Projected profit and Loss statement(in USD)
INCOME STATEMENTS( USD)
Year Units Y-1 Y-2 Y-3 Y-4
Gross revenue
Revenue From Export USD/Year 2,259,047 2,703,327 3,186,601 3,711,678
Revenue From Import USD/year 3,162,666 3,784,658 4,461,241 5,196,349
Total Revenue USD/year 5,421,713 6,487,985 7,647,842 8,908,028
Green Coffee Processing Cost
Production cost USD/Year 580,785 616,289 653,023 691,049
Sub-total of processing plant cost USD/Year 580,785 616,289 653,023 691,049
Gross margin USD/Year 4,840,928 5,871,696 6,994,819 8,216,979
General administration & selling expenses
Utilities USD/Year 2,632 2,895 3,184 3,503
Repairs & renewals USD/Year 24,949 27,444 30,189 33,208
Stationary and printing USD/Year 877 921 967 1,015
Marketing Expenses USD/Year 27,109 32,440 38,239 44,540
Insurance expense USD/Year 12,596 13,226 13,888 14,582
Professional fees (legal, audit, etc.) USD/Year 877 921 967 1,015
Depreciation expense USD/Year 20,032 20,032 20,032 20,032
Total of Adm and Selling Exp USD/Year 89,072 97,879 107,466 117,895
Earnings before interest and taxes USD/Year 4,751,855 5,773,817 6,887,353 8,099,084
Less interest expense USD/Year 81,310 64,787 45,952 24,479
Pre-tax income USD/Year 4,670,545 5,709,029 6,841,401 8,074,605
Cumulative pre-tax income (NOL) USD/Year 4,670,545 10,379,575 17,220,976 25,295,581
Earnings before taxes USD/Year 4,670,545 5,709,029 6,841,401 8,074,605
31
Less taxes USD/Year 1,401,164 1,712,709 2,052,420 2,422,381

Net income USD/Year 3,269,382 3,996,321 4,788,981 5,652,223
5.8 Projected Cash Flow

Green Farm Trading P.P.C expects to manage cash flow over the next four years with the
assistance of a loan supported by the Financial Bank. This financing assistance is
required to provide the working capital to meet the current needs for the purchasein of
raw material red coffee cherry and packing material, processing cost, distribution costs,
and other related expenses
Table 9: Projected Cash flow statement(in USD)
Items per year 2025 2026 2027 2028

cash inflow
Beg. Cash Bal. 832,360.07 9,285,675 243,193,744 431,695,576
Sales 5,421,713 6,487,985 7,647,842 8,908,028
Total Inflow 6,254,072.60 15,773,660.39 250,841,586.05 440,603,603.57
Cash outflow
Processing Cost 580785.0079 616289.4816 653023.4947 691048.5243
Utilites 2,632 2,895 3,184 3,503
Repairs & renewals 24,949 27,444 30,189 33,208
Stationary and printing 877 921 967 1,015
Marketing Expensses 27,109 32,440 38,239 44,540
Insurance expense 12,596 13,226 13,888 14,582
Professional fees (legal, audit, etc.) 877 921 967 1,015
Depreciation expense 20,032 20,032 20,032 20,032
Interest -81,309.90 -64,787.34 -45,951.62 -24,478.90
Tax 1,401,164 1,712,709 2,052,420 2,422,381
Total outflow 1,989,711 2,362,090 2,766,958 3,206,846
Net cash flow(USD) 4,264,362 13,411,570 248,074,628 437,396,757
5.10 Projected Balance Sheet

As shown in the balance sheet in the following table, our net will grow quickly by the end of
2025 and to continue steadily through the end of the plan period. For detailed information is
presented below table 9.
Table 10: Projected Balance Sheet (in USD/birr)
BALANCE SHEETS
32
Production Year Y1 Y2 Y3 Y4
Assets
Cash 180,148 3,051,418 6,878,141 11,473,948
Inventory - 46,463 49,303 52,242
Accounts receivable - 271,086 324,399 382,392
Total current assets 180,148 3,368,967 7,251,843 11,908,582
Gross property, plant & equipment/Fixed 400,637 400,637 400,637 400,637
Assets
Less: Accumulated depreciation expense - -20,032 -40,064 -60,096
Net property/equipment 400,637 380,605 360,573 340,542
Total assets(USD) 580,785 3,749,572 7,612,417 12,249,123
Total assets(Birr) 33,104,745.45 213,725,606.27 433,907,760.56 698,200,014.22
Liabilities
Accounts payable - 17,424 18,489 19,591
Notes payable/short-term debt - 0 0 0
Total current liabilities - 17,424 18,489 19,591
Long-term debt from 580,785 462,767 328,226 174,849
Shareholders equity - 3,269,382 7,265,702 12,054,683
Total long-term debt and shareholders equity 580,785 3,732,148 7,593,928 12,229,532
Total liabilities(USD) 580,785 3,749,572 7,612,417 12,249,123
Total liabilities(Birr) 33,104,745.45 213,725,606.27 433,907,760.56 698,200,014.22
33
6.CONCLUSION
Conclusion: Conclusively, this coffee export business by Green Farm Trading P.L.C will
yield more profit. As calculated in the financial plans and going by the considerations,
concentration of factors to improve the export of coffee in the future.
The Project is found to be operationally profitable & has significant socio-economic
benefits. According to the projected income statement, the envisaged business plan starts
earning profit from the first year of exporting. The income statement and other profitability
indicators show that the project is viable. The project is believed to have significant social
and economic benefits that accrue to the society beyond those financial returns to its
owner. The most remarkable social benefits can be expressed in terms of job creation that
leads to reduction in the level of unemployment.
Recommendation: The company directly employs 34 and casual labor 165 persons;
therefore, considering the attractive financial and economic benefits the project is to
produce, the promoter has made the necessary preparation hoping that all the concerned
offices & financial institutions should give their support to facilitate the implementation of
this plan.
34

Green Farm Trading Import-Export-BUSINESS-PLAN-2024

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“Green Farm Trading P.L.

C Export & Import Business Plan”

5. Financial Study ............................................................................................................. 25

Item 2018/19 2019/20 2020/21 2021/22

Source: United state agriculture Department in 2023

Export seals selected Commodties 2021/22 years

Figure 1: Export seals Selected Commodities in year 2021/2022

2. Background and Description of the business

2.1 Products and services

2.2 Mission, vision and objective of our company

2.2.3 OBJECTIVE OF THE COMPANY

2.2.3 COMPANY VALUES AND CULTURE

The company respects the values and contributions of every employee as

The company recognizes and rewards performance

2.3 Keys to success

2.4 Company Strategy

2.5 Competitive Comparison

2.6 Sales Literature

2.7 Industry Analysis

2.8 Competition and Buying Patterns

3. Organization & Management

No. Name Position Academic Experience

2 Depute BA in business 7 years

3.2 Organizational Structure of Green Farm Trading P.L.C, Company

As depicted below the organization structure of the company is designed so as to achieve

Figure 2: Organization Structure of the company

4.2 Marketing strategies

4.3 Target market segment strategy

4.4 Competitive advantage

4.5 SWOT Analysis

4.6 Marketing Strategies

4.7 Value proposition

Quality Low Excellent

4.8 Competitive Edge

4.9 Promotion Strategy

4.10 Distribution Strategy

4.11 Pricing Strategy

4.12 Sales Strategy

5.2 Export plan

 honey coffee and

5.2.1 Sales forecast

5.2.1.1 Export Sale Forecast

Table 2: Company Planned Export sales for next four years(2025-2028)

Production years Unit Y-1 Y-2 Y-3 Y-4

5.2.2.2 Import Sales Forecast

Item 01(Medical Equipment) Birr/year 90,135,971 90,135,971 90,135,971 90,135,971

Total Imported Revenue (40% Birr/Year 180,271,942 180,271,942 180,271,942 180,271,942

5.3 Projected cost of Goods

Price per units

Total Operating Cost Birr/year 33,022,665 41,387,046 46,359,990 51,201,512

5.3.2 Planned cost of goods sold

Cost of goods sold Units Business year

5.4 Working capital Requirement and Menes of Financing

Utilities Birr/year 150,000

Total Working Capital Cost Birr/year 37,040,047

5.5 Loan repayment Schedule

 Loan amount = birr 30 million

 Installment period/ term = 5years

 Interest on loan (including service charge) = 7.5%

Total 24,001,950 6,750,549 36,752,986.64

5.6 Financial Study

 The export volume of the business is expected to increase by 5% on wards the

5.7 Financial Evaluation

5.7.1 Profit and loss statement