1.

EXECUTIVE SUMMARY
 The Project it has been initiated by; Maraki General Trading PLC is proposed to develop

Sesame, rice, and mung bean farming project is a newly established project whose main

objective is to carryout crop farming activities in Bench Sheko zone; Guraferda Woreda ,Kuja

Kebele and the Project involves in large-scale crop production for export.

 Project cost: The total estimated cost of the project is 15,000,000.00 birr (Fifteen million

birr). Of the total Project 25% (3,750,000.00) birr shall be covered by the owner, Maraki

General Trading PLC and the rest 70% (11,250,000.00 )birr shall be secured from bank.

 Land Requirement: The planned development project requires 300 hectares from these 100,

100 and 100 hectares of land for its Sesame, rice, and mung bean farming activities

respectively. The land shall be secured from Bench Sheko zone; Guraferda Woreda ,Kuja

Kebele

 Job opportunities: The planned project shall provide work opportunities for 10 permanent and

for 80 temporary workers

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 2. DESCRIPTION OF THE PROJECT
Ethiopia has huge investment potentials for agricultural development. Currently investment in
agriculture sector is found to be more attractive and profitable in diverse sub-sectors ranging from food
products, industrial raw materials to bio-fuel. The agriculture sector accounts for47% of the Gross
Domestic Products of the country, provides 85% of employment and 90% of foreign currency earning.
Moreover, the country has huge market potential for crop and livestock produced with comparative
advantage to the Middle East, Europe and Asia. For the past five consecutive years the agriculture
sector was growing aster with more than 11% average annual growth. In addition of the contribution to
the national growth, the growth has triggered to the increase in domestic market has for both livestock
and food crops.
Amongst of the target commodities that have received due emphasis in promotion of agricultural
production, sesame is considered as the most important oil crop that has to be given attention for its
potential as a foreign currency earnings and rice is considered as the “Millennium crop” expected to
contribute to ensuring food security in the country. Even though, it is a recent introduction to the
country, rice has shown promise as to be among the major crops that can immensely contribute
towards ensuring food security in Ethiopia. The country has vast suitable ecologies for rice production
along with the possibility of growing it where other food crops do not do well. Rice is compatible with
various traditional food recipes like bread, soup, “enjera”, and local beverages (like “tela” and
“areki”). The country has also a comparative advantage of producing rice due to the availability of
huge and cheap rural labour as the crop is labour intensive. The importance of sesame and rice as a
food security crops, source of income and employment opportunity is recognized by the private
investors and farmers who frequently request for engagement in the production of these crops where
there is suitable agro ecologies and climatic conditions for their cultivation.

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 3. OBJECTIVES OF THE PROJECT
3.1 GENERAL OBJECTIVES
The objects of the project is formulating based on the general policy objectives goals of the central and
regional governments, to words agricultural development, achieving self – sufficiency of food and raw
materials shortage of domestic industries, reduced currency scarcity and to create investment
opportunities by provisions of Maraki General Trading PLC Sesame, Mung bean and Rice cultivation
and to encourage local farms in spreading out of technologies

3.2 SPECIFIC OBJECTIVES

This project feasibility study is designing to meet the following specific objects
 Creating employment opportunities for 10 skilled, 80 semi- skilled and daily labours.
 It will be introduced the modern Sesame, mung bean and Rice quality varieties.
 To play significant role in the economic development of the region there by the economic
development of the country as a whole.
 To change the primitive farming techniques that dependent on rain fall in to modern and
productive system of farming.
 To reduce poverty, raw material and currency scarcity of the country;
4. VISION AND MISSION
4.1 VISION
Toward the leader marketable licensed quality Sesame, Rice and mung bean products inland and
exporter for foreign countries.
4.2 MISSION
 Increase local ability quality; Sesame, Rice and Soybean varieties. Facilitate and hold the effort
of the government to create national level Oil seeds export item.
 Build up international marketable Sesame, Rice and mung bean varieties.
 Develop, recognize and apply the up-do-date technologies for Sesame, Rice and Soybean.
 Exist certified by internationally recognized quality Certification Company as producers of
Sesame, Rice and mung bean varieties.

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4.3 PROFILE OF THE PROMOTER
Mr. Buzayehu Teferacrop farming project is a project initiated by the owner himself. Currently, the
owner, Mr. Buzayehu Tefera, owns various businesses activities most of which are located here in
Bench Sheko Zone.

4.4 PROJECT JUSTIFICATION

In spite of its enormous agricultural potential, Ethiopia’s history, however, is punctuated by food
insecurity and famine due to climatic variability and the poor performance of the agricultural sector.
Cognizant of this problem, the government has been implementing Agricultural Development Led
Industrialization (ADLI) strategy, which has been reflected in the Plan for Accelerated and Sustainable
Development for Eradication of Poverty and in the recent the current Growth and Transformation
Plan (GTP).
The GTP of the government gives recognition to and focus on commercialization as the next step of
agricultural development. It envisages diversification and specialization of crop and livestock
production by farmers to improve a locative efficiency, and intensification of resource use to improve
technical efficiency. Among crops which are given attention by the government include export
commodity crops like sesame and haricot bean which the country is promoting their cultivation to help
increase foreign currency earnings and rice which is expected to be the futures most promising crop in
the struggle Ethiopia is making in food self sufficiency.
Promoting the private sector´s involvement in commercialization of sesame and haricot bean
production is a focus area that has been given attention by the government in the five year growth and
transformation plan (GTP2) of the country The main reason for encouraging the private sector to take
part in commercial production of such cash crops as sesame and haricot bean in Bench Maji can be
justified with the following reasons:
 Large area of potential investment land that suits for sesame, haricot bean, and rice have been
identified for potential investors who want to take part in the development of these crops.
 The market demand and prices of these crops is increasing year after year.
 The agro ecologies and climatic conditions of most parts of the Bench Sheko administration
are proved to have been ideal for cultivation of sesame, haricot bean and rice.
There is relatively cheap labour in Bench Sheko. More over it can also allow the business owners
receive more income and also assist the nation earn increased foreign currency earnings, create work

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opportunities for local people, help local farmers engage in sesame and haricot bean farming and
increase their productivity through transfer of technologies and inputs required for sesame and haricot
bean production.
5. PROFILES OF THE CROPS AND POTENTIAL OF THE COUNTRY FOR THE CROPS
5.1 SESAME
Ethiopia has altitudes from below sea level up to 4500 meter above sea level with different climate
zones which enables to grow a wide variety of oilseeds crops. Sesame is grown from sea level to
altitudes of 1500mt with uniformly distributed rainfall of about 500-800 mm and temperature of 24-
31 Celsius. Currently, production of sesame in Ethiopia is increasing both in area of coverage and
volume for the following main reasons:
o Due to its importance as a major export commodity the area coverage and production has increased in
the last consecutive years,
o There is an enormous potential to expand sesame seed production in Ethiopia through cultivation of
additional new land.
o Despite the traditional way of farming yields for oilseeds are on the same level as other producing
countries.
o The government is enhancing the investment in the oilseeds sector with an extended package of
incentives.
o Hence with the transfer of technology and the provision of inputs, the increment of production and yield
will be achieved strongly.
o Availability of Virgin fertile new areas which can be cultivated on large scale + cheap and abundant
labour are the key indicators of the future potential
Sesame is well adapted to a wide range of soils but requires deep, well-drained, fertile sandy loams. In Ethiopia,
sesame grows well in the semiarid areas of Amhara, Tigray, Benshangul Gumuz, the SNNPRS and Somali
Regions.
Despite the increasing demand and price of sesame in the world market, its productivity is declining from 8 to 3
q/ha in most parts of the country. The major reasons are the lack of knowledge and skill in land preparation and
agronomic practices, weather uncertainties and pest outbreaks. It is thus, anticipated that availing information
on improved agronomic practices, weed and pest management will undoubtedly increase sesame production and
productivity.

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5.1.1 AGRONOMIC PROFILES OF SESAME
Sesame is a broadleaf plant that grows about 5 to 6 feet tall, with height dependent on the variety and
growing conditions. Large, white, bell-shaped flowers, each about an inch long, appear from leaf axils
on the lower stem, then gradually appear up the stem over a period of weeks as the stem keeps
elongating. Depending on the variety, either one or three seed capsules will develop at each leaf axils.
Seed capsules are 1 to 1 1/2 inches long, with 8 rows of seeds in each capsule. Some varieties are
branched, while others are unbranched
The light collared seeds are small and flat, with a point on one end. Seed size varies, but one report
indicates that sesame has roughly 15,000 seeds per pound. Since the flowering occurs in an
indeterminate fashion, seed capsules on the lower stem are ripening while the upper stem is still
flowering. The lowest flowers on a stem may not develop into pods, but pods will generally begin 12
to 24 inches off the ground and continue to the top of the stem. Sesame is a long season crop, taking
about 125 to 135 days from planting to maturity. If planted in early June, leaf drop will usually occur
in early October, and the stem will begin drying down. Plants stand upright reasonably well with
sturdy stems, but strong winds can force the plant into a leaning position late in the season.
5.1.2 OPERATION
The primary market for sesame is use in a variety of baked goods and confections. The taste of sesame
differs among varieties, and can be negatively affected by poor post-harvest processing and storage.
Part of the attraction of sesame for baking is undoubtedly its high fat (50% oil) and high protein
content (up to 25% protein by weight).
Sesame oil carries a premium relative to other cooking oils and is considered more stable than most
vegetable oils due to antioxidants in the oil. After the oil is extracted from the seed, the remaining
meal is a high protein material suitable for feeding to livestock. Although at this time sesame oil is
used almost exclusively for human food consumption, it has potential for a variety of industrial uses,
as do most vegetable oils.
5.1.3 SWELLING SESAME
Sesame will perform best on fertile and well-drained soils, such as silt loams. It is adapted to sandy
loam soils, provided there is adequate moisture during seedling establishment. It has been grown
satisfactorily on silty clay loam soils, but soil crusting can be a problem in establishing sesame when
clay content is higher. Sesame is not adapted to poorly drained soils, and will not tolerate water logged
conditions. Soils close to a neutral pH of 7.0 are recommended. Sesame can fit well with other

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summer annuals in a crop rotation, but may be sensitive to some soil persistent herbicides. Sesame
reportedly can provide some improvement in soil tilt or structure due to extensive rooting.
5.1.4 PLANTING SESAME
Sesame is the most critical phase of its management. Successful establishment of sesame requires
careful seedbed preparation and close attention to soil moisture. Sesame will not emerge from soils
that are even slightly crusted and needs fairly warm soil temperatures of 70°F. or more. Irrigating the
crop up after planting is often unsuccessful because of the weakness of sesame seedlings in breaking
through even a thin soil crust. It's best to plant into moist soil.
Sesame must also be planted shallow, preferably 1/2" deep, which makes getting into moisture
difficult. Ridge till planting would probably be effective, since scraping off the ridge top with a ridge
till planter would expose moist soil. In previous work with sesame in Missouri, the best results were
obtained by preparing a seedbed, waiting for rain, then planting as soon as the soil is able to be
worked. This final passage should leave a fine textured soil so that a consistent shallow planting depth
can be obtained.
A planting rate of 2 to 3 pounds per acre is recommended. A precise rate is not critical, since sesame
will self-thin and compensate for differences in plant population, similar to soybeans. In 30" rows,
anywhere from 6 to 18 seedlings per foot of row is usually appropriate. At maturity, a plant population
of 4 to 8 plants per foot is a good target. Although row spacing of 15" or less have shown some yield
advantage over wide rows, planting in 30" rows
The advantage of planting after cover crops would be to help with weed control, and in the case of
legume covers, to supply nitrogen to the sesame. No-till does offer the advantage of having better
moisture at the soil surface, due to the surface residue reducing evaporation; however, this advantage
is offset by the difficulty of trying to plant a small seeded crop at a consistent shallow depth through
plant residue.
5.1.5 PROMOTE AND FINANCES
Sesame benefits from both a high price and a strong domestic market. Contract price is generally
$0.20 to $0.22 per pound or more for conventionally grown sesame, with significantly higher prices
for organic sesame. This high price, roughly double that of sunflowers or soybeans, is offset by the
relatively low yields of sesame. Typical test plot yields in Missouri during 1992-1994 were 800 to
1000 pounds per acre, with maximum yields of 1200 pounds on small research plots. Thus, gross
return for sesame will be in the ballpark of $200 per acre.

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Production costs are modest, being equal to or less than soybeans or sorghum. Seed costs are similar to
conventional crops. The cost savings from not using herbicides (none are labelled for sesame) is
partially offset by extra tillage for weed control. Fertilizer costs are primarily for nitrogen, which can
be met through organic sources. Harvest costs should be similar to other grains, but transportation to
market will be an extra expense. Producers interested in sesame are encouraged to work out their
marketing in advance of planting the crop.
5.1.6 SESAME MAKING AND MARKETING
The world sesame seed market is a billion dollar industry that supports the livelihoods of millions of
farmers throughout the world.  Next to coffee, sesame seed is the second largest export earner for
Ethiopia, involving more than 600,000 small-holder farmers in its production throughout the nation. 
Ethiopia produces large varieties of sesame seed, among which the Humera, Gondor and Welega type
are well-known in the world market. Owing to their white color, sweet taste and aroma, the Humera
and Gondar sesame seeds are suitable for bakery and confectionary purposes. On the other hand, the
high oil content of the Welega sesame seed gives it a major competitive advantage for edible oil
production.

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5.1.7 WORLDS NATIONAL SESAME PRODUCTION AND DO BUSINESS
Asia and Africa together produce 70 and 26% of the world’s sesame, respectively. About 24% of the
sesame produced in the world goes on export while 44% of Africa’s production goes on export.
Nigeria became the largest supplier of sesame to the largest sesame importer, Japan in 2001.
Asia imports almost twice as much sesame, it produces because the seeds are consumed as tahini or
crushed into toasted oil. It is suggested that Africa should step up her production to meet the ever
increasing demand for sesame particularly in the Asian market. Data on sesame production and trade
on regional basis in the world are presented on Table 1. Below
Table 1. Contently sesame production
Region Area harvested Production Imports Export
(000,000)ha (tones) (tons) (tones)
Asia 4.48 2,547 6901 342
Africa 2.80 953 60 422
South America 0.14 79 4 54
Central America 0.13 81 32 37
North America 0 0 54 3
Europe 0.40 2 146 25
Oceania 0 0 8 0
World 7.55 3,6662 996 884
Source, FOA(2006)

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5.1.8 WORLD SESAME PROVIDE
Table 2. . World’s major sesame producers
Sn Country Area harvested (ha) Production(tones)
1 China 660 800
2 India 1850 750
3 Myanmar 1370 606
4 Sudan 1700 331
5 Uganda 200.8 121
6 Nigeria 165.1 83
7 Pakistan 135.2 75
8 Ethiopia 93.1 72
9 Bangladesh 80.1 55
10 Central African republic 42.1 47
11 Thailand 63.9 46
12 Tanzania 104.8 45
13 Egypt 29.9 41
14 Guatemala 55.8 39
15 Chad 95.1 39
16 Paraguay 67.9 37
Adopted from FAO, 2005
The world sesame seed market is a billion dollar industry that supports the livelihoods of millions of
farmers throughout the world.  Next to coffee, sesame seed is the second largest export earner for
Ethiopia, involving more than 600,000 small-holder farmers in its production throughout the nation. 
India is the biggest producer of sesame seed (704,000 ton), closely followed by Myanmar (682,000
ton) and China (645,049 ton). Together they account for 52% of the total world production. Other
major producers include Sudan (385,000 ton), Ethiopia (205,449 ton) and Uganda (190,300 ton)
having a cumulative share of 19.3% of the total world production in 2008. Ethiopia accounted for
5.1% of the total world sesame seed production in 2008.
 India, Ethiopia and Sudan are the leading exporters of sesame seed accounting for 46.1% (491,790
ton) of the total world export (1,067,512 ton) in 2008. Ethiopia accounted for 12% of the total volume
of world export of sesame seed in 2008.

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5.1.9 SESAME MARKET CONDITION
The major sesame seed production areas in Ethiopia are situated in the northwest and southwest.
According to the Central Statistics Agency (CSA) sample survey in 2009, more than 600,000 small-
holder farmers are engaged in sesame seed production. Ethiopia’s production of sesame seed has
grown rapidly over the last few years. From 2007 to 2009, sesame seed production increased by 81.7%
from 149,388 ton to 271,415 ton.  This growth in the total production is mainly attributed to an
increase in the land under cultivation, as well as some improvement in productivity. Ethiopia’s sesame
seed production in 2010/11 is forecast at 244,273 ton.
The Council of Ministers Regulation No. 178/2010 (the “Regulation”) passed on 22 May 2010,
mandates that sesame seed trading in Ethiopia shall be conducted only at primary transaction centres
and the Ethiopian Commodity Exchange (ECX).  Article 18.2 of the Regulation reserves the right for
any producer to export sesame seed directly, individually or through a cooperative in which he/she is a
member. This Regulation is fully effected as of October 2010.  Although ECX launched sesame
trading in May 2009, the volume traded through has been low.  However, as a result of the
enforcement of the mandatory trading provisions of the Regulation, nearly all of the country’s sesame
will be traded through ECX.
5.1.10 ETHIOPIA’S EXPORT
Having a share of 12.9% of the value of world export of sesame seed in 2008, Ethiopia is the second
largest exporter of sesame seed in the world after India. China is the largest import market for
Ethiopia’s sesame seed, accounting for 56.4% of total export in 2009.  Israel, Turkey and Jordan rank
second, third, and fourth purchasing 12.3%, 5.60% and 5.0% of Ethiopia’s sesame seed in 2009,
respectively.  The value of Ethiopia’s export of sesame seed has more than doubled in the last three
years, from 133 Million USD in 2007 to 335 Million USD in 2009.  During the same period, the
volume of Ethiopia’s export increased by 83.2% from 139,653 ton in 2007 to 255,783 ton in 2009. 
The annual average price of Ethiopia's sesame seed has increased from 791USD/ton in 2005 to
1,308USD/ton in 2009.

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5.1.11 WORLD EXPORT
The value of world sesame seed import more than doubled during the last five years, from 868.8
million USD in 2005 to 1.8 billion USD in 2008. During the same period, the volume of world import
only increased from 1.05 million ton in 2005 to 1.07 million ton in 2009. This shows that the increase
in the value of total world import of sesame seed over the years is mainly the result of price increase.
Average annual price of sesame seed has increased from $893/ton in 2005 to $1,311/ton in 2009.
In 2009, China overtook Japan as the largest importer of sesame seed by purchasing 311,271 ton worth
387.5 million USD. Japan (128,917 ton worth 181.9 million USD) and Turkey (91,954 ton worth
128.4 million USD) were the second and third largest import markets in the world.
5.1.12 FORECAST FOR SESAME PRODUCTION IN ETHIOPIA
Ethiopia’s sesame seed production in 2010/11 is forecasted at 244,273 ton, a fall of 10% when
compared to the previous crop year. The decline in production is attributable to heavy rain in the major
sesame seed production area, Humera. The launch of sesame trading on ECX floor will bring
efficiency to the local market system, although some market disruption may be expected in the early
start up of trading operation. 
Efforts are underway to resume export of sesame seed to Japan after the 2006 ban following the
discovery of chemical residue in Ethiopian shipments of sesame seed. Recent sample tests were
positive and Japan is to shortly commence trial imports. Being the second largest importer of sesame
seed in the world and paying higher than the world average market price, Japan is a very attractive
destination for Ethiopia's sesame seed. Regaining the Japanese market will be a big plus for Ethiopia's
sesame seed export market.
Of the three major sesame seed producers, China has moved from a major exporter to the major
importer. Since China has become the major destination for Ethiopia’s sesame seed exports, increase
in the demand from China is good news to Ethiopian exporters.
The Ethiopian currency, Birr, was devaluated by more than 20% in August 2010, which is conducive
to exports.
 The international market price of sesame seed has made a downward correction in 2009 from its peak
price level in 2008. However, the price of sesame seed has been shifting upwards again. The price of
Humera and Wolega sesame seed has increased by 125USD/ton since July 2010. As of October 2010,
the export price of Humera sesame seed and Wolega sesame seed (FOB Djibouti) is 4,025 USD/ton
and 4,000 USD/ton, respectively.      

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China, the third largest producer of sesame seed in the world, has been hit by the heavy rains and
flooding.  It is projected that this year the new crop in China will be at least 25% less than last year.
Other small producer countries, such as Pakistan, have similarly been affected by inclement weather.
These factors are expected to drive the world market price for sesame seed upwards, at least for this
season. 
Given a production forecast of 244,273 ton (of which 98% is assumed to be exported) and an average
annual price forecast of 1,400 USD/ton, Ethiopia’s export earnings from sesame seed in 2010/11 is
forecast at 335 million USD.
5.2 RICE
Rice was introduced to Ethiopia in the late 1970s and has since been growing in cultivation
particularly in the areas with suitable climatic conditions. Government declared it as a millennium
crop. National Research and Development Strategy has been developed and an implementation plan
prepared and endorsed by the region for implementation. The rice sub sector in the country is
characterized with very poor quality, which is manly consumed as rice flour mixed with teff to make
‘enjera’. It is mainly consumed by the middle and low-income consumers.
The sector is still at the infant stage to furnish the domestic market and far to compete with the
imported rice. This value chain assessment study revealed that local rice production is dominated by
smallholders who have no access to adequate extension services and desired inputs. For these
households, growing rice is major source of income and livelihood; rice produced is used for both
consumption and income to buy household consumables. However, this study explored many
constraints. The major constraints were; Access to quality seeds and other inputs, poor agricultural
practice; Poor perception of local rice, lack of appropriate post-harvesting technologies and lack of
quality control systems.
Rice (Oryza sativa) is a staple food crop for more than half the world’s population and is grown in
an area of 150 million hectares (Reddy 2004). The Asian rice, O. sativa and African rice O.
glaberrima were the two most cultivated species in Ethiopia.
5.2.1 Importance to Ethiopia
In recognition to the importance of rice sector to the country economy, the Government of Ethiopia
(GoE) has developed a National Rice Research and Development Strategy in Ethiopia (NRRDSE) to
guide the integrated and focused promotion of the rice sector in the effort to ensure food security in
the country (MoA, 2010). As a result, rice received due emphasis and is considered as the

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“Millennium crop”. Even though, introduced recently, rice has proven to be a crop that can assure
food security in Ethiopia. The research and development activities so far undertaken on rice in the
country, though at limited scale have shown good productivity level and also shows the existence of
considerably vast suitable ecologies for production along with the possibility of growing, where
other food crops do not do well.
As per the NRRDSE the country has about 20-million-hectare suitable land for the production of
rice under rain-fed and irrigation conditions. The area covered by rice during 2014/15 Meher
production was 46,832 hectares that is 0.37% of the grain crops with 1.318 million quintal
production volume with 118,079 small-holders engagement with a significant increase over the past
years (CSA, 2015). As per Minilik Tsega, 2013 report, the average cropped area per rice producer
at national level was and 0.76 hectares in 2010 and 2009, respectively. The total cultivated area at
national level has increased from approximately 45,874 in 2009 to 49,021 hectares in 2010. The
cultivated area has increased in 2010 as compared to 2009 by about 7% nationally with considerable
difference across regions.
According to the CSA, rice is grown in 17 administrative zones, but production is mainly
concentrated in 6 zones, including: Borena (41.3%), South Gondar (28.0%), Wolayita (20.9%),
Pawe Special Woreda (2.7%), Kambata and Timbaro (2.3%), and East Gojam (2.1%).
The increase of rice consumption in Ethiopia contributes the boosting of its cultivation. Rice is
consumed in various ways. According to MOARD report on the progress made in the
popularization of the crop, rice is consumed as enjera, bread, porridge, soup, boiled with sauce and
local drinks (like “tela” and “areki”). The domestically produced rice is consumed by the producers
and consumers in small urban areas, while the imported is distributed to major urban consumers
through a network of supermarkets.
5.2.2 Production process of Rice
Production is dominated by smallholders who produce rice for home consumption and sell surplus
directly to processors or cooperatives. Since the expansion and introductions of range of varieties,
the number of smallholders engaged in rice production has been increasing as compared to other
major crops grown in the area. Currently, the sequence is changed that brought rice as first cultivars
followed by maize – finger millet – teff. While the number of smallholders engaged in rice
production and its scope increases from time to time. As per interviewed farmers yields exhibit a
declining trend mainly due to lack of access to improved and alternative seeds, use of the same

14
varieties for more than 36 years, absence of crop rotation and soil fertility, occurrence of pests and
disease and erratic rainfall pattern. More importantly, conventional ways of growing rice, many of
the farmers have not received extension services to apply Good agronomic practices; they just grow
rice after observing practices from other farmers. Existing yield increases and productivity mainly
catalyzed due to upgrading of skills, knowledge, access to improved seeds and also relatively better
market values. Seed supply, other inputs use and agronomic practice of the small-holder farmers
explained below.
1) Seed
Accessing quality seed is a critical input for rice production, nearly all farmers report trouble
accessing quality and alternative seeds. Impurity is too high and quality is very low. As an emerging
crop, cooperatives do not sell rice seed and private sector seed providers also are not engaged in this
business. A private led seed supply system initiated by EDGET project in 2011 through a
contracting mechanism was not successful. The system failed to continue as rice is a self-pollinated
crop farmer’s keep seeds from their own harvest and demand couldn’t continue for the next years.
For cereal crops, most farmers prefer to re-use their own seed for certain years and exchange
informally instead of buying new generation seeds.
a. Inputs use
Seed sources and practice situation described above and other inputs use and supply situation briefly
indicated below.
b. Fertilizer:
chemical fertilizers are supplied solely by multipurpose cooperatives. Based on their capacity to buy
and their assumption (much lesser than the recommendation).
c. Herbicide and insecticide:
The use of herbicide and insecticide for rice farming is not a common practice. However, the recent
occurrence of pests and disease observed in the field such as leaf blast, rice bug, stem borer
(Pyracidae), cut worm (paraponyx) and brown spot (cochliobolus) forces some of the farmers to
apply common pesticide used for rough pea (Dionysian. Malathion). There are a number of small
shops that provide herbicides and insecticides for the most common crops though there is no rice
specific herbicide and insecticide suppliers.

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 d. Farm tools:
There are a number of production tools to improve rice production. This includes weeding tools to
reduce weed infestation, row maker and planter, paddler to level the planting field, harvester,
ploughing machine like tractor etc.
2) Water requirements/irrigation
Water supply is critically important for the production of rice. Farmers used to prepare terracing and
ditches to conserve run-off flood for sometimes as rice love water to grow aggressively. The practice
of preparing soil bund is increasing. This in turn contributes for the geographical expansion of rice.
At the same time, the use of diesel motors for supplementary irrigation is increasing.
3) Harvesting
Proper timing is important in harvesting the crop as losses could be incurred if rice is harvested too
soon or too late. Immature grains due to too early harvest result in high percentage of broken and
low milling recovery. Delayed harvesting exposes the crop to insect, rodent and bird pests, in
addition to increased risks of lodging and grain shattering. The ideal is to be within the window of
optimum harvest period. Harvesting is commonly practiced using scythes/sickles and this takes on
average of 40 MD per hectare and additional 16-person day for collection and piling of rice.
According to the interviewed farmers, harvesting early in the morning or late in the afternoon causes
shattering, the best time is mid-day where the weather gets hot.
Threshing is accomplished by trampling a number of oxen, cows and donkey, sometimes; beating
panicles on the ground through use of human labor is possible for few stocks. In Fogera, threshing is
done on the small fields prepared with straw without using tarpaulins, plastic or canvasses which
intern is causing a mixture with sand, rocks and dirt. Threshing is followed by winnowing, cleaning
and de-stoning at the same field. Cleaning threshed paddy rice by tossing into the air blowing off
most of the light chaffs and other impurities. However, this doesn’t separate stones, soil and weeds
mixed in the paddy.
4) Post-Harvest
A. Handling
Post-harvest handling and processing services are still underdeveloped. The traditional methods of
post-harvest handing cause high losses, poor product quality and substantial reduce of incomes. This
is associated with the serious unavailability and lack of access to appropriate tools and equipment
along with lack of market information about the tools

16
The rice research and development strategy implementation plan as a whole foresees technology
multiplication and extension system to make sure that research outputs will be delivered through
commercialization of those tools. However, mechanizations under the EIAR have limited capacity to
produce options of technology to improve the post-harvest handing.
Farmers thresh the rice using oxen power and human labor.
Post-harvest handling typical practices include the following:
 Allowing rice stalks to fall to the ground after cutting the rice stalks,
 Not using tarpaulins, plastic or other materials to separate the rice from the dirt when threshing
(causing mix of with sand, rocks and dirt),
 Harvesting too late causes shattering,
 nadequate winnowing (causing contamination with sand, rocks and dirt),
 Planting multiple varieties and mixing them at harvest time (reducing marketability and
making milling more difficult)
B. Storage requirements
Rice in either milled or paddy form, is stored to provide a stock for the household consumption or
for later cash need. The amount, form, and sophistication of which depend upon whether the level of
storage is household or own consumption, rice mill, wholesaler, retailer or distributor. At any level
and scale of storage, drying of paddy to the moisture content level of about 14 percent is a basic
requirement to prevent spoilage. Uniform drying and prevention of moisture spots and moisture
migration inside the grain mass by means of aeration is essential especially in large-scale storage
where metal or concrete silos are used.
C. Shelf life
White, wild, arborio, jasmine and basmati rice all have very long shelf life, when kept free from
contaminants. Hermetically sealed in the absence of oxygen, it can be planned for a storage life of 8-
10 years at a stable temperature of 70 degrees F. It should keep proportionately longer if stored at
cooler temperatures. Brown rice is only expected to store for 6 months under average conditions.
This is because of the essential fatty acids in brown rice. These oils quickly go rancid as they
oxidize. It will store much longer if refrigerated. Stored in the absence of oxygen, brown rice will
last longer than if it was stored in air. It can be planned on 1 to 2 years. It is very important to store
brown rice as cool as possible, if the temperature down another ten degrees, it will double the
storage life again.

17
 D. Packaging
Packaging in small-scale production and processing, field-threshed and partially cleaned paddy is
bagged in jute or propylene sacks for handling purposes in transporting paddy from the field to the
roadside or to the house. The weight of each bag ranges the common one is 100 kg bag depending
upon the purpose and trading practice.
E. Transport
Transport methods of paddy from the field to processing areas are mainly by means of vehicles
whichever mode is available and affordable.
5.2.3 Marketing
I. Demand and supply situation
1) Supply
Majority of the white rice is retailed by the wholesalers based in Addis Ababa – ehil berenda
(Mesalemyiya area). As per the processors in Woreta, 70-75% of their rice supplied through this
market channel. In ehil berenda, there are about 300 grain traders out of them 10-15 traders retailing
the local rice produced from Fogera area and also the imported broken white rice from different
countries. One critical development is that broken rice is imported and is distributed through these
traders in Addis; this has a serious implication to rice farmers in Ethiopia. During the interview, the
traders complained about the lack of cleanness of the local rice in contrast to the imported one; this
factor is seen as a major constraint that affected the competitiveness of the local rice. Though
consumers preferred the taste of the local rice yet they have got challenges by the daily laborers to
sort out all impurities from the local rice to mix with teff flour. The breakage level of the imported
broken rice is too high as compared to the local but the absence of impurities outweighed that.
Importations of the broken rice increased at increasing rate since the last three years.
As per traders at ehil berenda (Addis) custom report, the number of importers and volume is
apparently increasing from year to year with large market share against the local rice. As indicated in
Fig 2, the imported rice volume increased more than double in four-year period from 122,884 tons in
2012 to 275,470 tons in 2015. The rice imported includes broken rice, semi-milled or wholly milled,
husked (brown rice) and paddy rice. The value of rice imported reached more than 3.276 Billion Birr
CIF Value (157,645,380 USD) in 2015 as per customs data.

18
 2) Demand
Consumption of rice at rice producer level is increasing in Ethiopia. Farmers use to mix rice with
other cereal crops for household consumption. As per CSA utilization report 52% of rice used for
own consumption (CSA, 2015). The rice consumption and purchase is also increased in the urban
areas. The annual per capita consumption of rice increased from 0.85kg to 1.84kg from 2008 to
20123 116% increase with four years period. The per capita consumption increase coupled with the
population growth of the country the total volume of rice consumed increased during the past
periods.
At global level Rice is a staple for nearly half of the world’s seven billion people. More than 90% of
this rice is consumed in Asia, where it is a staple for a majority of the population, including the
region’s 560 million hungry people. In the past two decades, per capita rice consumption in sub-
Saharan Africa (SSA) has increased by more than 50% as possible future export market.
Even though it is increasing the per capita consumption of rice is quite very low in Ethiopia as

compared to global average that is 61.4kg in 2015/164 while Ethiopia consumption is below 2kg.
The Ethiopian rice market is characterized by two distinct types of markets; Local and imported rice
market which is mainly linked with income levels of consumers. Local rice is mainly consumed by
the rural low-income mixed with teff flour and imported rice mainly consumed by urban high and
middle income markets (MEDA VCA 2010). Accordingly, this previous market assessment and also
the checkups during the present study shows that the existing national market is distinctively
classified based incomes of the consumers and the dimensions of each of the segments. Urban
dwellers with different income groups, teff flour suppliers and hotels use of rice to mix with teff and
other crops is increasing. Mixing use of rice is the important demand push factor with the following

main reasons, 1St rice is relatively cheaper than teff, 2nd when rice flour mix with teff the number of

injera produced from a kilo gram of mixed flour increase by 2 extra injera, 3 rd the injera made from
rice mix looks attractive & stay for long time than injera made only from teff.
3) Quality requirements
Varietal purity, physical cleanliness, and moisture content are important parameters for rice quality.
During the study, a high breakage of milled rice was observed, notably the loss estimated to 32-35%
that attributed to poor technologies and techniques at processing, production and storage levels.
Even with this extraction rate the probability of getting full grain is too minimal. Such poor quality
product can't be used as table rice by competing with the imported rice unless the factors that
19
contributed for breakage are reduced. The breakage is caused due to the combined factors starting
from production stage, post-harvest handling and processing equipment.
The presence of rice processors association didn't contribute to improve the quality of the rice until
now. The processing is so tedious, as it requires boiling the paddy rice, proper drying, processing,
sorting, grading and packaging. A female processer named Momina is supplying parboiled and
brown rice relatively with better price. Such kind of progress will have influential impacts to expand
graded rice that stimulates quality rice production.
5.2.4 Marketing outlets/main segments/areas
All rice producers normally have a choice to sell their rice to processors. Many of the processors
offer de-hulling services for household consumption.
5.3 Mung bean
The center of origin of cultivated mung bean is Asia. Mung bean originated in the India-Burma region
of Asia because evidence provided by archae botanical findings and literary records showed that mung
bean was domesticated in India where wild mung bean is widely distributed. Specifically, it has been
found at Neolithic sites in southern India where wild mung bean exists. The findings also point to both
south-eastern and western Himalayan foothills as likely places where domestication could have taken
place. Mung bean was the central Asian region with India having the widest diversity of domesticated
varieties of the crop.
5.3.1 Distribution of Mung bean
Although native to India, mung bean is also widely cultivated in Africa, Asia and America. The
wild mungbean is widely distributed from tropical Africa and through west, south and Southeast Asia
to Papua New Guinea and Australia.
There is widespread cultivation of mungbean throughout south and Southeast Asia, including India,
Pakistan, Bangladesh, Sri Lanka, Myanmar, Thailand, Philippines, Laos, Cambodia,
Vietnam,Indonesia, Malaysia, South China, Taiwan, West Indies, South America and North America.
Cultivated germplasm spread from south Asia to both west and Southeast Asia at a similar time.It was
introduced into Africa more than once. Currently, mungbean is one of the most important grain
legumes produced for income generation, agricultural improvement, soil conservation and
nourishment. Wild relatives of the crop species possess greater genetic diversity than the cultivated
forms.

20
5.3.2 Historical Perspectives of Mung bean in Ethiopia
According to ECXA (2014), mung bean is being cultivated as a recently introduced crop in Ethiopia. It
is also grown in few areas of North Shewa and hence its consumption is not widespread like the other
pulses. Farmers used mungbean in bordering areas to make soil fertile without providing fertilizer on
the land. So, farmers regard mungbean as traditional crop. Mungbean in Ethiopia were landraces
which are similar from one village to another and cultivated by traditional farming. The recently
introduced mungbean is also grown in limited areas in smaller quantity.
5.3.3 Morphological Description of Mungbean
Mungbean is an annual crop cultivated mostly in rotation with cereals. The growth habit can be dwarf,
erect, determinate and non-branching or indeterminate and semi-prostrate to tendrilous. The leaves are
trifoliate with large, ovate, entire leaflet that are rarely lobed, membranous leaflets with densely
pubescent on stems, peduncles and petioles. Pods are born at or above the leaf canopy with sub
cylindrical, straight or slightly curved shape. Mostly, mungbean is characterized by broader stipules,
pale yellow flowers to greenish yellow with axillary or terminal raceme, more ovules per pod, a
spreading pod with short brown hairs. It is characterized by an upright habit and relatively
synchronous flowering. The mungbean seed coat has two layers containing an outer columnar layer
that may contain deep blue or black pigment and a green parenchyma layer, which contains various
concentrations of chloroplasts. The germination of mung bean is epigeal with the cotyledons and stem
emerging from the seedbed.
5.3.4 Climate Requirements of Mungbean
Mungbean is an important food legume cultivated in many tropical and sub-tropical parts of the
world .It is also cultivated in semi-arid condition of the tropical and warm regions of the world . It is a
warm season crop requiring 90-120 days with optimum temperature ranges form 27 oc-30°c; the time
from sowing to maturity depends on variety of the crop. Adequate rainfall is required from flowering
to late pod filling to achieve high grain yield. It is mostly grown during summer season when the
temperature and light irradiance fluctuate frequently. In some mungbean growing areas of the tropics,
the early summer is characterized by high temperature more than 30 0c, while the late summer has high
temperature and bright sunlight. Among the ecological requirements for mungbean, temperature and
light intensity influence the photosynthetic effectiveness of the leaves of the critical stage of growth.

21
5.3.5 Cropping System of Mungbean
Mungbean is cultivated mostly in intercropping and sole cropping systems. Intercropping is a Practice
of growing two or more crops simultaneously in the same field in a particular growing season. It has
probable advantages for increasing sustainability in crop production and producing two or more crops
in particular cropping season for cultivars. Intercropping mungbean with other crops confers
advantages such as improved soil fertility through nitrogen fixation, shading of the soil surface and
protection against erosion. It is also reduces the risk of damage due to biotic and a biotic factors. The
morphological or physiological differences of the crops’ root systems and canopy structure help to
increase productivity of the crop. Maize and mungbean intercropping is popular with farmers . Other
mungbean intercropping systems include patch cropping, relay cropping and alley cropping.
Growing a single species of a crop in a field at a time is termed as sole cropping or monoculture. Some authors
claim that mungbean is more effective in sole cropping than intercropping system in terms of total yield and
products of the crop this was due to bigger plants, more numerous leaves per plant and abundant shoot
branches. The sole crop also had more root nodules and a deeper roots system, which enabled it to absorb water
from greater soil depths; this encouraged better photosynthetic activity for mungbean due to free from
competition with others.
5.3.6 Crop Rotation System of Mungbean
Crop rotation increases both land and crop productivity particularly and is important for sustainable agriculture.
Annual crop legumes grown in rotation with cereals contribute to total amount of nitrogen in the soil and
improved yield of cereals. But some rotation systems can be problematic. For example, poor soil physical
conditions limits successful cropping of mungbean after rice. If seeds are sown too early after rice harvest,
anaerobic conditions may reduce crop establishment and decrease yield potential.
As it is a short duration legume, it is mainly cultivated between rice-rice, rice-wheat, rice-potato9 wheat, maize-
wheat, cotton, and other cash crop to increase both land and crop productivity. Mungbean has the capability of
accumulating large amounts of vegetation in a short period of time. So it also could be used as compost for the
soil improvement and by combining its remains into the soil after pods have been harvested at maturity. This
can increase soil productivity for succeeding crops. But in other places, such as Ethiopia, these residues are
more highly valued as fodder and are thus fed to animals instead. Adding mungbean to the cereal cropping
system has the potential to increase farm income, improve human health and soil productivity, save irrigation
water, and promote long-term sustainability of agriculture.

22
5.3.7 Use Values of Mungbean
Among pulses, mungbean is the most important cash crops in the world. It is a vital crop in developing
countries where it is consumed as dry seeds, fresh green pods or leaves due to its high protein, vitamin
and mineral content. It is also consumed as forage or green pods and seeds as vegetables.
Primarily, the purposes of this crop are for its protein rich edible seeds and fresh sprout. The seed of
mung bean mainly used for making soups, bread and biscuits. Other than food it is importance to
assistance in normal use of land, water resource and enrichment of the soil through nitrogen fixation.
Adaptation to short growth duration, low water requirement, ability to increase soil fertility and
Usefulness in crop rotation practices are also another significances of mungbean. Capacity of forming
important ecological relationships with majority of invisible soil microbes for the achievement of
limiting macro and micro nutrients especially in the nutrient poor ecosystems increase productivity
of crop and land. Ability of improving soil fertility by fixing atmospheric nitrogen into available form
with the help of rhizobia species for plant’s growth and development are characters of mungbean.
Symbiotic relation of mungbean is mainly affected by soil type, pant growth rate, plant signals, root
geometry, mineral elements level in the soil, shade, light and temperature occurrence result loss of
crop final yield. Precisely symbiotic relation has also a very good ability to enhance the physical,
chemical and biological properties of soil, therefore, it is considered as an important component of
sustainable agricultural production. Bio-organic fertilizer used as foliar spray for improving
quantitative aspects of root and shoots parts growth of mungbean.
Mungbean contain rich in lecithin which reduces the liver fat and regulates the normal functioning of
the liver. It also used to decrease the absorption of toxic substances, reduce the risk of
hypercholesterolemia and coronary heart disease and prevent cancer. Other properties like easy
digestibility and low proportions of flatulence factors also add to its value among the pulse crops. Not
only dry seed but also mungbean sprouts are an important food with excellent source of protein,
calcium and vitamin C.

5.3.8 Constraints of Mungbean Production

The productivity of pulses is very low as compared to cereals, which have been selected for high grain
yield under high input conditions. Productivity of mungbean is decreased through biotic and a biotic
stresses including diseases, insect pests, drought stress, water stress, extreme high temperature, salinity
stress as well as heavy metals.

23
5.3.9 Markets
Mung bean markets in Ethiopia can be differentiated as; the seed market, domestic market, and export
market. The seed and domestic markets constitute about 68 percent of the country Mung bean market
size and the rest is the share of export market. The major market actors in the domestic haricot beans
market are collecting agents, rural assemblers, village traders, brokers, transporters, urban wholesalers,
retailers and exporters. Because of a very strong relationship between village traders, their collecting
agents and farmers through small loans and credit systems to provide inputs and local expenditures
that are required by farmers, price was determined mostly by village traders. Moreover, farmers have
also been cheated in kilograms of their supply by collectors. Similarly, because of absence of formal
contract agreement between buyers and sellers, brokers cheat village trades, wholesalers and exporters,
the price at which beans has been sold. To avoid the aforementioned problems and recently the crop
became the first important crop from pulse category in its export volume as well as its foreign export
earnings. Government has made an intervention by establishing new rule so that white pea beans
should be transacted exclusively through the ECX platform. All stakeholders, ECX, ECEA and MoA
(at regional, zonal and woreda level) have exerted a lot effort up on establishing of primary markets at
the vicinity of the farmers and awareness creation programs should be arranged to all market actors
including farmers and related government institutions. Therefore, all stakeholders should take part to
make a close supervision and follow up to avoid illegal trade and to maintain quality product. The
main market for Ethiopia Mung bean are the domestic market followed by European countries,
Middle East countries, African countries and Far East. Generally there is a huge demand of dry bean in
the Southern and Easter Asia, Southern Europe, Southern and northern America and Caribbean
countries of the world market. Thus, Ethiopia has can get better market opportunity from these Asian
and European countries market due to its geographical proximity.
The country exported to the global market on average 70,009 tonnes of Mung bean during 2005/06 to
2009/10. The trend shows that export of Mung bean grows on average by about 11 percent during the
specified time. The driving force for this bean export growth was the existence of high global demand
and consequently the price increment in the global market. However, due to the global financial and
economic crises there was lack of crop demand in the global market, the price of Mung bean has
declined since August 2008. As a consequence of this, price of Mung bean on the domestic market
has also dropped. In 2008/09 bean was also affected by the unexpected rain and it has also impact on
the bean quality that will result decline in export volume. In 2009/10 Mung bean export volume has

24
increased by 21% from its previous year. ECX has started trading white pea beans in April 2008. In
2008/09 fiscal year there was a little supply of white pea beans (3,650 quintals). And white pea beans
were not traded in ECX market in 2009/10. Currently (2010/11) white pea bean is expected to pass
exclusively through the exchange market. From October 26 to November 15, 2010 about 46 thousand
quintals of white pea beans of value 34.7 million birr were traded. The total annual supply of Mung
bean in the country is estimated by considering annual production, import and stock balance. Mung
bean wasn’t imported in to the country so far unless some donors imported for food security purposes,
remarkably in small amount. It is also difficult to get data on stock balance. Therefore, the annual total
supply of Mung bean is the reflection of its production. According to the CSA 2009/10 Crop and
Livestock Utilization Report, 73.4 percent of the country level Mung bean production was used for
household consumption, 13.3 percent for sale and 11.6 percent for seed the rest was used for wages in
kind and animal feed. (See table 4.1) Of the total Mung bean production 438 thousand quintals of was
supplied for market. At the regional level, the Amhara and Tigray regions provide more produce for
market (22.9%) and (19%) respectively. But the potential producing regions Oromia and SNNPR
provide more than 73% of their produce for household consumption. Therefore, the consumption
pattern of beans in Ethiopia is a mirror of the production areas, with highest consumption occurring in
areas with most beans. This shows that agricultural activities by small holder farmers are mainly
subsistence.

25
5.3.10 Financial Significance
Several varieties of Mung bean are consumed in SNNPR, Eastern Hararge, and Western Ethiopia
usually mixed with other cereals. In recent years, the country's export earnings from haricot bean take
the first rank from pulse category.
According to National Bank of Ethiopia 2008/09 Annual report, a total value 1.45 billion USD was
earned from major export items such as coffee, pulses, oilseed, chat, leather products flowers and
vegetables. Pulses are the third major agricultural commodity next to coffee and oil seeds in the export
market of the country. It contributes 6.3% of the total export earnings. Export revenue earned from
pulses dropped by 36.8% on accounts of 40.8% fall in the volume of production despite price increase
in the international market. Generally pulses volume follows a positive trend starting 1999/2000 to
2007/08 but it sharply drops by 40 % in 2008/09.
According to MoA export data, in 2009/10, 232 thousand tons of pulses was exported to 39 different
countries and earning 138 million USD. Mung bean is the first in export earnings from pulses
category contributing 33% of these export earnings. Mung bean and chickpeas took the second and
the third position having shares 26 and19 percent respectively.
6 THE PROJECT AREA
This project is planned to be established in the SWPRS in Bench Sheko zone in the district of
Guraferda. As it is the zonal trade and investment department which is concerned in preparing
investment land and handing it over to potential investment projects, it is responsible to hand over the
500 hectare of land to the planned project from the already studied and preserved investment site the
department has in the district of Guraferda, kuja kebele..
Guraferda is one of the districts/woreda's in Bench Sheko zone. Biftu, the administrative town of the
district/woreda located at about 42 km from MizanAman, the zonal administrative town. Mean annual
rain fall of the area ranges between 1100- 500mm and its mean annual temperature is 23 degree
centigrade. Documents of the study have shown that Guraferda is ideal for growing sesame, rice,
mung bean and many other crops. Specific site for this project is kuja kebele.

26
7 SOCIO ECONOMIC CONDITION OF THE DISTRICT
Guraferda woreda is one of the six districts/woreda's in Bench Sheko and known for its huge forest
resources, permanent rivers and streams, fertile soils, optimal climatic condition, and a wide range of
agro ecologic conditions that makes it ideal for growing varieties of crops and for keeping of many
species of animals. The vast area of forest cover it has makes it one of the primary coffee growing
districts within the zone. Currently, about 81 investment projects licensed in the agricultural sector are
undertaking investment activities in areas of coffee farming, crop farming, fruits farming, rubber tree
plantation and animal farming activities within the district.
The main ethnic groups in Guraferda include Sheko, Meanits, Bench, and other people who fled
from different parts of the country are also part of the population in the district. The main sector that
supports the economy in Guraferda is agriculture. Coffee, rice, sorghum, maize, and many types of
root crops are the main crop types grown by most farmers in the district. Sesame although is a newly
emerging crop in the district is becoming an important means of earning for many farmers in the
district. In addition to the natives, people who settled in the district government settlement programs
and those who flood to the district for search of work are the main sources of work forces for the
private sector within the district. Guraferda can be considered as one of Bench Sheko districts which
have shown a rapid progress in infrastructural development. Telephone network lines, electric power
lines, and roads stretched throughout Guraferda makes investment projects working there relatively
in advantageous position than those operating in other districts.

27
8 FARM CAPACITY
The farm requires a total of 300 hectares of land for its various development activities. From the total
300 hectares of land 100ha shall be used for sesame production, 100 ha for rice and 100 ha mung bean.
8.1 LAND USE PLAN
The farm requires about 300 hectares of land for its integrated farming activities. The 300 hectare of
land shall be developed within fours.
Table3. Land use plan of the project

S.No Type of crop to be developed /ha/ Years Total

1st 2nd 3rd 4th
1 Sesame 100
2 Mung bean 100
3 Rice 100
Total 300

28
8.2 CALENDAR FOR THE MAIN ACTIVITIES OF THE PROJECT
The main activities to be accomplished and the tentative schedules for implementing the activities is
shown below
Table: 4. Time table of the farm
Time table for implementing main activities of the project
Description Starting date Completion date
Preparation and submission of business plan Dece , 2022 Jan , 2023
Acquiring land March, 2023 June, 2023
Development of infrastructure April, 2023 April, 2024
Land clearing, lowing, cultivation, and harvesting May, 2024 May, 2058
Production and product sell June 2023 June , 2058

8.3 FARM CAPACITY, AND ANNUAL SALES FOR MAIN PRODUCTS

Table: 5 Estimation of Production capacity and sales revenue for sesame
Year Land to be developed Expected Total yield Price/qt Revenue from
by sesame Yield/ha sales
2024 33 14 462 5,000 2,310,000.00
2025 55 14 770 5,000 3,850,000.00
2026 70 14 980 5,000 4,900,000.00
2027 100 14 1,400 5,000 7,000,000.00
Total 18,060,000.00

Table: 6 Estimation of Production capacity and sales revenue for mung bean
Years Land to be developed Expected Total yield Price/qt Revenue from
by mung bean Yield/ha sales
2024 33 18 594 8,000 4,752,000.00

2025 55 18 990 8,000 7,920,000.00

2026 70 18 1,260 8,000 10,080,000.00

2027 100 18 1,800 8,000 14,400,000.00

Total 37,152,000.00

29
Table: 7 Estimation of Production and sales revenue from rice
Year Land to be developed Expected Total yield Price/qt Revenue from sales
by rice Yield/ha
2024 33 40 1,320 3,500 4,620,000.00

2025 55 40 2,200 3,500 7,700,000.00

2026 70 40 2,800 3,500 9,800,000.00

2027 100 40 4,000 3,500 14,000,000.00

Total 36,120,000.00

Table 8. Summary of revenues from product sales

Years Sales from product sales of Total revenue
Sesame Mung bean Rice
2024 2,310,000.00 4,752,000.00 4,620,000.00 11,682,000.00
2025 3,850,000.00 7,920,000.00 7,700,000.00 19,470,000.00
2026 4,900,000.00 10,080,000.00 9,800,000.00 24,780,000.00
2027 7,000,000.00 14,400,000.00 14,000,000.00 35,400,000.00
Total 18,060,000.00 37,152,000.00 36,120,000.00 91,332,000.00

30
 9. FINANCIAL ANALYSIS
The total investment capital of the project is computed to be birr 15,000,000.00 out of which fixed
costs accounts 51% (7,650,000.00 birr) and variable cost accounts 49 % (7,350,000.00 birr )
9.1 FIXED COST
Fixed costs are expenditure on Building and Civil Work; Vehicle and Machinery; and pre-operation cost.
The total fixed costs of the project are outlined as follows.
Table 9 Machinery and Equipment Requirement and Cost Building and Civil Works
Description Qty Unit Cost Total Cost
Building
Workers Dormitory 1 100,000.00 100,000.00
Office 1 100,000.00 100,000.00
Store 1 150,000.00 150,000.00
Guard house 2 3,000.00 6,000.00
Cooking room 1 5,000.00 5,000.00
Staff residence 1 20,000.00 20,000.00
Sub total 381,000.00

Farm Machinery and equipment

Tractor 1 3,700,000.00 3,700,000.00
Welding machine 1 150,000.00 150,000.00
Sickles 100 500 50,000.00
Gejera 80 375 30,000.00
Disc harrow 28 disc 1 200,000.00 200,000.00
Ditcher 1 100,000.00 100,000.00
Trailer 1 50,000.00 50,000.00
Trailed tanker 1 65,000.00 65,000.00
Cultivator 1 100,000.00 100,000.00
Ridges 1 100,000.00 100,000.00
Precession- planter 1 150,000.00 150,000.00
Sub soil 1 60,000.00 60,000.00
Motorized sprayer 1 45,000.00 45,000.00

31
Thresher 1 150,000.00 150,000.00
Corn shelter 1 40,000.00 40,000.00
Compressor 1 100,000.00 100,000.00
Sub total 5,090,000.00

Vehicles
Motor Bycle( Apache RTR-180CC) 1 140,000.00 150,000.00
Truck 1 2,200,000.00 1,500,000.00
Sub total 1,650,000.00

Office furniture
Chairs 10 1,000.00 10,000.00
Tables1 2 1,000.00 2,000.00
Tables2 2 2,000.00 4,000.00
Computer & Printer 1 15,000.00 15,000.00
Shelf 1 15,000.00 15,000.00
Safe box 1 5,000.00 5,000.00
Sub total 51,000.00
Plant and Machinery
Electric line installation 1 50,000.00 50,000.00
Grain mill 1 60,000.00 60,000.00
Weighting scale 1 45,000.00 45,000.00
Sub total 155,000.00

Pre operating cost 323,000.00

Grand total 7,650,000.00

32
 9.2 VARIABLE COST
Variable cost of the farm is estimated 49 % (7,350,000.00 birr ). The major components of the
production cost are farm input, running cost and labour and salary cost.
9.3 Farm inputs
The farm utilizes improved seeds various fertilizers, pesticides and fungicides as inputs. All farm
inputs needed for the project could be purchased from local markets and overseas suppliers. The
required farm inputs and associated costs are detailed as flows:
Table 10 Required Inputs and Cost for sesame and rice farming
Input Items Amount in qt, or lit or kg Unit price Total Cost Birr
Sesame Seeds 10qt 5000 50,000.00
Rice seed 10qt 3000 30,000.00
Mung Bean 10qt 3000 30,000.00
Fertilizers/Dap 100qt 2000 200,000.00
Fertilizer/ urea 100qt 2000 200,000.00
Pesticides 20kg 200 4,000.00
Sub Total 514,000.00

Table 11 Fuel and oil costs

Input Items Required Unit cost/birr/ Total cost
Fuel 5,000 litter 32.00 160,000.00
Oils and grease 40 kg 100.00 4,000.00
Sub Total 164,000.00
Grand Total 678,000.00

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9.4 MANAGEMENT OF MAN POWER
The planned project will have appropriate management system through which the project could
operate smoothly. At the top of the ladder there will be a general manager that will control and
supervise the overall activities of the project. The general manager shall be appointed by Maraki
General Trading PLC, Mr. Tariku Bekele. Under the general manager, there is an operation manager
who will be in charge for managing and directing the remaining work force and the smooth operation
of the farm. The project requires 10 permanent professionals and 80 casual workers. The manpower
required by the farm and salary are shown below

Table: 12. Manpower requirement and labour cost

No Position Qualification Experience Quantity Monthly Annual
Salary Salary(birr)
1. Project Manager Bsc in - 1 5,000 60,000.00
Agronomist
2 Farm Manager Bsc in Min 2 year 1 5000 60,000.00
Agronomist
3 Cashier Certificate Min 1 year 1 4500 54,000.00
4 Time keeper certificate- Min1 year 1 2500 30,000.00
5 Guard >4 - 4 2000 96,000.00
6 Quality Bsc in agriculture Min 2 year 1 4000 48,000.00
supervision
7 Adimn & Finance BA in AcFn,, Min 3 year 1 5000 60,000.00
Division head Management and
related
Total Salary cost 10 408,000.00
Casual workers - 80 80x80x 270 1,728,000.00
workers day
/day
Total labour cost 1,728,000.00
Grand total 2,136,000.00

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9.5 SUMMARY OF VARIABLE COSTS
Table: 13 Summary of variable costs

S.No Cost description Estimated Cost

1 Salary 408,000.00
2 Labour 1,728,000.00

3 Farm imputes/ seeds, fertilizers, pesticides, fungicides, oils and 678,000.00

grease
4 Running cost 4,536,000.00
Grand total 7,350,000.00

10. FINANCIAL EVALUATION

Table: 14. Assumptions used in the financial evaluations of Maraki General Trading PLC project

Source of finance 25 % equity 75 % loan

Loan duration 5 years
Bank interest 11.5%
Depreciation 10% in the initial year with 1% decrease per year thereafter

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 from machinery ,equipment and buildings
Repair and maintenance 5 % of the total farm machinery , equipment and buildings
Labour cost Incur 5% additional cost each year
Tax 20% of the gross profit
Work in progress 270 days 270 days
Cash in hand 5 days
Accounts payable 30 days

11. BANK LOAN SCHEDULE

Table: 15. Bank Loan Schedule
Loan Duration: 5 Years
Number of Payments: 60
Interest Rate: 11.5%
Monthly Payment: Birr 187,500.00

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 No. Payment Total Amount Principle Interest Total
Year Bank Loan Payment Payable Payment
0 2025 11,250,000.00
1 2026 9,000,000.00 2,250,000.00 1,293,750.00
3,543,750.00
2 2027 6,750,000.00 2,250,000.00 1,035,000.00
3,285,000.00
3 2028 4,500,000.00 2,250,000.00 776,250.00
3,026,250.00
4 2029 2,250,000.00 2,250,000.00 517,500.00
2,767,500.00
5 2029 0.00 2,250,000.00 258,750.00
2,508,750.00
Note: the proceed is assumed to be granted with six months elegance period; hence a small
variation in the loan schedule is predictable

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 12. REVENUE ANALYSIS
Based on the projected income statement, the project will generate profit beginning from first year of operation..
The detail analysis is tabulated below.
Table 16. Projected Cash Flow Forecast for five years
Description Y-0 Y-1 Y-2 Y-3 Y-4 Y-5
Sales Income 11,682,000.00 19,470,000.00 24,780,000.00 35,400,000.00 35,400,000.00

Expenses -  - - -  -  - 
Fixed Cost 7,650,000.00 0.00 0.00 0.00 0.00 0.00
Variable Costs 7,350,000.00 5,069,000.00 6,069,000.00 7,350,000.00 7,350,000.00 7,350,000.00
Depreciation 732,700.00 593,487.00 480,065.04 386,452.35 308,057.73

Repair &Maintenance 366,350.00 366,350.00 366,350.00 366,350.00 366,350.00

Bank interest payment

1,293,750.00 1,035,000.00 776,250.00 517,500.00 258,750.00
Total Expense 7,461,800.00 8,063,837.00 8,972,665.04 8,620,302.35 8,283,157.73
15,000,000.00
Gross Profit 4,220,200.00 11,406,163.00 15,807,334.96 26,779,697.65 27,116,842.27

Tax (20%) 844,040.00 2,281,232.6 3,161,466.99 5,355,939.53 5,423,368.454

Net Profit 3,376,160.00 9,124,930.4 12,645,867.97 21,423,758.12 21,693,473.816

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13. ECONOMIC BENEFITS
The mission will create a permanent employment opportunity for 10 individuals and for 80 additional
casual workers. It also contributes in supply of sesame for export. Additionally, the project will
generate tax revenue, which will help the current fast growing economy of the Ethiopia. The project
has a forward linkage effect with food processing and hospitality industries. Then, the farm will
support the surrounding farmers for the production sesame which is marketable in the area with
limited supply. Once the project embarks to full production phase, the surrounding farmers will be
made out growers for the farm after provision of training and extension service by the farm. In
addition of this the farm will also be a demonstration farm in the development and evolution of good
commercial farmers and will cooperate with academic and research institutions to support students
with adequate practical agricultural attachment programs .thus students in the university will get the
opportunity to develop in to practical and commercial–minded experts.
14. Environmental impact assessment and mitigation measures
 Integrated Agriculture is the one of the newly developed idea of farming in rural areas and when
dealing with environmental scope, conservation of the environment, use of agro-chemicals, use of
fertilizers, disposal of wastes, and irrigation (fustigation schemes) are the pillars. Agricultural
Productions will be effective by the use of agrochemicals in combined with IPM (integrated pest
management, the use of cultural practices) .The use of agrochemicals will be based on the current
rules and regulations of the country where there are only allowed lists with the recommended rates ,
and target pests (diseases) which makes limited impact on the environment. The target of production
in the short run is to develop and acquire experience to penetrate the international market thus, the EU
regulations on use of plant protection products (chemicals), MRL, & MPS black lists will be applied.
There will be use of only two basic fertilizers (DAP & Urea) in the normal production of vegetables
to increase productivity. The use of these fertilizers will be based on the result of soil analysis (to
know which quantity of elements are available in sufficient quantity. and will be based on the
recommendations of MOARD and some guidelines of vegetable productions beside capability session
in the ranch.
The potential wastes on the planned farm are Organic wastes (plant materials left over and empty
chemical containers. Organic wastes (plant materials and animal wastes) will be subjected for decay
and be used as a compost fertilizer on the farm thus will not have effect on the environment.

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Chemical containers – use of chemicals is vital in the normal production of any crop. subsequently far
there is no an official system of collection of empty containers in the country after use. However as a
regulation, rinsing at least three times (the reinstate will be used in the spray tank again) and parsing
(no use of containers) will be used. One of the environmental concerns related to commercial farming
is the use of water. Even though water is abundantly available in Ethiopia with the current trend of
growing modern farming it needs to be used wisely and efficiently. In order to address efficient use of
water the proposed project will use various methods including, drip irrigation in combination of flood
irrigation though small-scale river diversions, construction of small ponds and wells. The other
concern is potential Stalinization (accumulation of soluble salts) which can affect the suitability of
soil for farming certain crops. The farm will establish adequate drainage infrastructure during land
development so the salt deposit can be washed from the soil.
15. Source of Technology
The apparatus and tools required by the envisaged farm could be supplied from the various machine
importers in the country.
Nazareth Tractor Assembly Plant, TETRACO. PLC can also be used as an alternate source for
purchasing of machine.
While seeds, fertilizers, and chemicals could be purchased from the different organizations in the
country engaged in the importers of farming inputs.

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