KASAHUN HSHIABAYI CROP FARMING PROJECT March 30, 2016

BUSINESS PLAN: FOR KASAHUN ASHI ABAYI CROP FARMING PROJECT

1. Executive Summary

Project Initiator: It has been initiated by the owner; Kasahun Hshiabayi who is Ethiopian Elders.

Kasahun Hshiabayi ´s Sesame, rice and haricot bean farming project is a newly established project

whose main objective is to carryout crop farming/ Sesame, rice and haricot bean / farming activities

in Bench Maji zone; Guraferda kometa district area.

The Project involves in large-scale crop production (Sesame, rice and haricot bean/ for export.

Project cost: The total estimated cost of the project is 52,000,000 birr (Fifty Tow Million birr). Of

the total Project 30% (15,400,000.00) birr shall be covered by the owner, Kasahun Hshiabayi and

the rest 70% (36,600,000) Thirty million Four hundred thousand birr shall be secured from bank.

Land Requirement: The planned development project requires 400, 400, 200 and 20 hectares of

land for its Rice, Sesame, Haricot bean and farming activities respectively. The land shall be

secured from the district of Gureferda in Bench Maji zone.

Job opportunities: The planned project shall provide work opportunities for 32 permanent and for

1600 temporary workers.

1 BENCHI MAJI GURAFERDA DISCRICT

 2. Introduction

Ethiopia is situated in the tropical zone, but because of its wide range of altitude (from below sea
level to over 2500m above sea level); it is endowed with a broad diversity of climates ranging from
humid tropics to alpine climates suitable for successful growth of most types of both temperate and
tropical crops.

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.

The five year growth and transformation plan (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.

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.

Kasahun Ashi Abayi‘s planned sesame, haricot bean and rice farming project is thus initiated with
the following objectives.

2
 3. OBJECTIVES OF THE PROJECT

The main objectives of the project are:

 To produce sesame on the basis of modern production technologies and inputs and produce
sesame seeds for the purpose of export
 To produce haricot bean on the basis of modern production technologies and inputs and
produce haricot bean seeds for the purpose of export
 To produce rice through enhanced farming technologies and supply the product to domestic
markets
4. VISION AND MISSION
4.1 VISION

Toward the leader marketable licensed quality Sesame, Rice and Soybean 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 Soybean 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 Soybean varieties.
5 PROFILE OF THE PROMOTER

Ato Kasahun Ashi Abayi ´s sesame, haricot bean and rice farming project is a project initiated to be
effected privately by the owner himself, Ato Kasahun Ashi Abayi.

Currently, the owner, Ato Kasahun Ashi Abayi, owns various businesses activities most of which
are located here in Amhara, Tigrai town and some in the Addis Ababa region. Some of the
businesses Ato Ato Kasahun Ashi Abayi owns include; the last business that is being operated by
Ato Kasahun Hshiabayi in Addis Ababa Region is difference businesss sectors.

The income that Ato Ato Kasahun Hshiabayi secures from all the businesses mentioned above will
enable him fund his new planned farming project and thus achieve his desired goals and objectives.

3
6 PROJECT RATIONALE
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:
 The agro ecologies and climatic conditions of most parts of the Bench Maji administration
are proved to have been ideal for cultivation of sesame, haricot bean and rice.
 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.
There is relatively cheap labour in Bench Maji.
More over it can also allow the business owners receive more income and also assist the nation
earn increased foreign currency earnings, create work 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.

4
7 PROFILES OF THE CROPS AND POTENTIAL OF THE COUNTRY FOR THE CROPS

7.1 Sesame

Ethiopia has altitudes from below sea level up to4500 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 25-
30 Celsius. Currently, production of sesame in Ethiopia is increasing both in area of coverage and
volume for the following main reasons:

 Due to its importance as a major export commodity the area coverage and production has
increased in the last consecutive years
 There is an enormous potential to expand sesame seed production in Ethiopia through
cultivation of additional new land.
 Despite the traditional way of farming yields for oilseeds are on the same level as other
producing countries.
 The government is enhancing the investment in the oilseeds sector with an extended
package of incentives.
 Hence with the transfer of technology and the provision of inputs, the increment of
production and yield will be achieved strongly.
 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.

5
7.1.1 AGRONOMIC PROFILES OF SESAME
7.1.1.1 Plant description

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.

7.1.2 UTILIZATION

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.

6
 7.1.3 GROWING 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 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.

7.1.4 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

7
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.

8 MARKET AND ECONOMICS

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.

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.

8.1 SESAME PRODUCTION 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 700,000 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.

8
 8.2 WORLDS REGIONAL SESAME PRODUCTION AND TRADE

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. Regional sesame production

Region Area harvested Production Imports (tons) Export (tones)

(000,000)ha (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)

9
 8.3 WORLD SESAME SUPPLY

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.

10
 8.4 DOMESTIC SUPPLY/ 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.

8.5 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.

11
 8.6 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.

8.7 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

12
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.      

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.
9 HARICOT BEAN
9.1 Haricot Bean Production In Ethiopia

Almost all haricot beans were produced by smallholder farmers. The average farm size for
smallholder farmers were between 0.25 to 0.5hectares. The 2008/09 (CSA) large and medium
commercial farms cultivated area & production report declares that only 0.14% of the country total
production was produced by large and medium commercial farms.

According to the 2009/10 Meher Season Annual Agricultural Sample Survey conducted by CSA,
among the country pulse crops haricot bean is the second both cultivated area and in volume of
production accounting 17% and 19% respectively. Its production mainly depends on soil type,
altitude and agro-ecologic climatic conditions. Moreover, the bean is produced by small holder
farmers on fragmented plots of land for household consumption and sale. The white pea beans are
the major export product and the red beans and other types of beans are mostly used for household
consumption.

13
 9.2 PRODUCTION /PRODUCTIVITY IN QUINTAL

Haricot beans productivity depends on good weather condition and use of appropriate technologies
(fertilizer, improved seed, and herbicide) with the recommended rate and time. The national
agricultural research system has generated a number of improved agricultural technologies and
recommendations such as crop variety, agronomic practices, crop protection measures as well as
other technical advices and practices. The technologies promoted include improved varieties,
recommended fertilizer rates and types, improved agronomic and weed control practices. According
to the official statistics of the country, CSA, the average haricot bean productivity was about 10.58
quintal per hectare during 2003/04 to 2009/10 (See table 3.2). However, the experience from
experimental plots indicates that 25-30 quintal per hectare can be obtained.

Bean production methods and use of productivity enhancing technologies depends upon the
farmers‟ income levels. Farmers with more assets have larger farm sizes, 2-3 hectare, and these
farmers regularly use purchased seed and fertilizer furthermore, these farmers hire labour and either
owns or has access to animal/ traction for production , finally it will result in high productivity.
Most farmers with less than 1.5 hectare rarely use fertilizer or purchase bean seed and use mainly
family labour.

Haricot bean is a very important crop produced well in most of the low and mid altitude agro
ecologies of Ethiopia. It is high in starch, protein, dietary fibber and is an excellent source of
minerals and vitamins. The world dry bean production is estimated to be about 19.7 million metric
tons harvested on 25.2 million hectares land, which makes the crop the most widely utilized
legume. Due to high demand in the international & domestic market Ethiopian haricot bean
production has grown more than double during the last seven years (2003/04 to 2009/10). During
the same period increasing pattern has been observed except for the year 2005/06. This implies that
market supply is also increasing. It is because that market supply is the mirror image of production
in the country.

14
The crop is considered as the main cash crop and food source of the farmers of Ethiopia, mainly in
the rift valley area. These socio-economic factors enable farmers to make rational decision to
increase yearly production of the crop. Around 75 percent of the country haricot bean production
comes from the Rift Valley System. Almost all crops were produced by smallholder farmers.

Haricot beans productivity depends on whether condition and use of appropriate technologies with
the recommended rate and time. The average global productivity of haricot bean was 7
quintals/hectare. In recent years even though the harvested area and production of dry bean was
declining; the global productivity has increased and reaches 7.8 quintals/hectare in 2009. Countries
with high bean productivity are Canada, USA and China.

The average haricot bean productivity of Ethiopian was about 10.58 quintal per hectare during
2003/04 to 2009/10. However, the experience from experimental plots indicates that 25-30 quintal
per hectare can be obtained. Hence, effort should be made to use the available technologies and
strengthening haricot bean research in the country to improve productivity and to make a
mechanism of controlling pest and disease of Haricot bean.

There are different types of beans produced in Ethiopia, including mottled, red, white and black
varieties. The most commercial bean varieties are red bean types and pure white colored beans. The
distribution of this crop and trade for the two bean types revealed two well defined market-sheds,
with the red beans being produced in the south western region of the Rift Valley, below Lake Ziway
and the white types being produced within the north eastern part of the valley, north of Lake Ziway.
Most of the white beans produced are supplied to the market for export where as almost all red
beans are produced for local consumption.

Haricot bean production has been practiced in all regions of the country. Oromia, Amhara,
SNNPR, Benishangul-Gumuz and Tigray regions are the major producing regions that contribute
more than 99 percent of the total haricot bean production. While Oromia took the lion share
accounting 43 percent.

Only 13.3 percent of the country haricot bean production was supplied for market. At the regional
level, the Amhara and Tigray regions provide more produce for market. Among the major beans
producing zones, which provide more than 50 percent of their produce for market are East Gojam
(63%), East Showa(53%). While Arsi, West Arsi, South Gonder and South Wollo provide more

15
than 40% of their produce for market. These areas are the major surplus producing area of white
beans and almost all beans used for export are collected from these areas. About 85% of global dry
beans are consumed in the countries where they are produced. India, Brazil, Mexico, USA and
China are the world's largest consumers of dry beans. In Ethiopia more than 73 percent of haricot
beans harvested annually were consumed locally.

9.3 HARICOT BEAN MARKETS

Haricot 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 Haricot
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 Haricot beans 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.

16
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 Haricot beans during
2005/06 to 2009/10. The trend shows that export of Haricot 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 Haricot bean has declined since August 2008. As a consequence of this, price of Haricot 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
haricot bean export volume has 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 haricot beans in the country is estimated by considering annual
production, import and stock balance. Haricot 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 Haricot beans is the reflection of its
production. According to the CSA 2009/10 Crop and Livestock Utilization Report, 73.4 percent of
the country level haricot 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 haricot 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.

17
 9.4 ECONOMIC SIGNIFICANCE

Several varieties of haricot beans 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 earning. 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. Haricot bean is the first in export earnings from
pulses category contributing 33% of these export earnings. Horse beans and chickpeas took the
second and the third position having shares 26 and19 percent respectively.

10 RICE

The importance of rice crop in the Ethiopian Agriculture is increasing from time to time and
different actors from public and private sectors and donors are showing interest in promoting it. The
public rice related programs are well articulated in the National Rice Research and Development
Strategy developed in early 2010 along with the national implementation plan developed both at
national and regional level for the years 2011 to 2015. Different rice specific research and
development projects are also under implementation

In Ethiopia 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 Based on GIS techniques and agro-
ecological requirements of rice, the

18
Potential rain-fed rice production area in Ethiopia is estimated to be about thirty million hectares.
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 rice as a food security crop, source of income and employment opportunity due to its
relative high productivity as compared to other cereals is recognized by farmers as well as private
investors who frequently request for improved varieties for different ecosystems.

11 THE PROJECT AREA

This project is planned to be established in the SNNPRS in Bench Maji zone in the district of
Guraferda. As it is the Zonal trade and industry department which is concerned in preparing
investment land and handing it over to potential investment projects, it is responsible to hand over
the 100 hectare of land to the planned project from the an already studied and preserved investment
site the department has in the district of Guraferda.

Guraferda is one of the 10 districts in Bench Maji zone. Guraferda Biftu, the administrative city of
the district is located at about 42 km from Mizan Teferi, the zonal 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, haricot bean
and many other crops

12 PRODUCTION PROCESS

As the land is virgin one, preparing it for sesame and rice cultivation requires clearing of bushes,
removing the cleared items ploughing the land using disc ploughs, and finally softening of the soil
using harrows before planting the sesame intended to be cultivated.

The cultivated sesame, haricot bean and rice will be harvested when they are ripe. The harvested
sesame, haricot bean and rice will then be trashed, graded, packed and finally be transported to
central markets, which in turn be exported by the concerned department in central sesame market.

19
13 SOCIO ECONOMIC CONDITION OF THE DISTRICT

Guraferda District, one of the ten districts in Bench Maji is 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 25 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 Meanits, Bench, Dize 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 because of 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 Maji’s districts which have shown a rapid progress in
infrastructural development. Telephone net work lines, electric power lines, and roads stretched
throughout Guraferda makes investment projects working there relatively in advantageous position
than those operating in other districts.

Farm Capacity

The farm requires a total of 1020 hectares of land for its various development activities. Of the
total 1020 hectares of land 400 ha shall be used for sesame production, 200 ha for haricot bean, 400
ha for rice and the rest 20 ha for infrastructure development and for planting of trees, and grasses to
protect the soil from erosion.

20
 13.1 LAND USE PLAN

The farm requires about 500 hectares of land for its integrated farming activities. The 500 hectare of
land shall be developed within fours.

Table3. Land use plan of the project

Total
S.No Type of crop to be developed /ha/ Year
1st 2nd 3rd 4th
1 Sesame 133 222 311 400 400
2 Haricot bean 67 111 155 200 200
3 Rice 133 222 311 400 400
4 Infrastructure and a forestation 6 11 16 20 20
Total 1000

13.2 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 January, 2016 February, 2016

Acquiring land February, 2016 March, 2016

Development of infrastructure April, 2016 April, 2061

Land clearing, lowing, cultivation, and harvesting May, 2016 May, 2061

Production and product sell June 2017 July , 2061

21
 KASAHUN HSHIABAYI CROP FARMING PROJECT March 30, 2016

14 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
2016 133 12 1596 5000
7980000
2017 222 12 2664 5000
13320000
2018 311 12 3732 5000
18660000
2019 400 12 4800 5000
24,000,000
Total 400
63,960,000

Table: 6 Estimation of Production capacity and sales revenue for haricot bean

Year Land to be developed Expected Total yield Price/qt Revenue from

by haricot bean Yield/ha sales
2016 67 40 2680 4000
10720000
2017 111 40 4440 4000
17760000
2018 155 40 6200 4000
24800000
2019 200 40 8000 4000
32,000,000
Total 200 85,280,000

Table: 7 Estimation of Production and sales revenue from rice

Year Land to be developed Expected Total yield Price/qt Revenue from sales
by haricot bean Yield/ha
2016 133 55 7315 2000
14630000
2017 222 55 12210 2000
24420000
2018 311 55 17105 2000
34210000
2019 400 55 22000 2000
44,000,000
Total 400 117,260,000

22 BENCHI MAJI GURAFERDA DISCRICT

Table 8. Summary of Revenues from product sales

Year Sales from product sales of Total revenue

Sesame Haricot bean Rice

2016 7980000 10720000 14630000 33,330,000
2017 13320000 17760000 24420000 55,500,000
2018 18660000 24800000 34210000 77670,000
2019 24,000,000 32,000,000 44,000,000 100,000,000
Grand Total 63,960,000 85,280,000 117,260,000 266,500,000

15 SOURCE OF TECHNOLOGY
The machinery and equipment 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. Whereas seeds, fertilizers, and chemicals could be purchased from the
various organizations in the country engaged in the importers of agricultural inputs.

16 FINANCIAL ANALYSIS
The total investment capital of the project is computed to be birr 52,000,000 out of which fixed
costs accounts 51% /26,520,000.00 birr/and variable cost accounts 49 % /25,480,000.00

16.1 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.

23
Table 9 Machinery and Equipment Requirement and Cost Building and Civil Works
Description Qty Unit Cost Total Cost

 Building construction

Workers Dormitory 3 500,000 1,500,000

Office 3 1000,000 3,000,000

Store 3 500,000 1,500,000

Guard house 3 30,000 90,000

Cooking room 2 90,000 180,000

Staff residence 1 200,000 2,00,000

Sub total 6,270,000

 Farm Machinery and equipment

Tractor with accessories 3 1,300,000 3,900,000

Generator 3 90,000 270,000

Welding machine 3 150,000 450,000

Sickles 300 200 60,000

Gejera 300 250 75,000

Disc harrow 28 disc 3 200,000 600,000.00

Ditcher 2 100,000 200,000.00

Trailer 3 50,000 150,000.00

Trailed tanker 3 50,000 150.000.00

Cultivator 2 100,000 200,000.00

Ridges 2 100,000 200,000.00

Precession- planter 2 150,000 300,000.00

Sub soil 2 60,000 120,000.00

24
 Motorized sprayer 3 45,000 135,000.00

Thresher 2 150,000 300,000.00

Corn shelter 2 40,000 80,000.00

Compressor 1 100,000 100,000

Sub total 7,140,000.00

 Vehicles

Pick up 2 800,000 1,600,000

Truck 2 2,000,000 4,000,000

Sub total 5,600,000

 Office furniture

Chairs 10 2000 20,000.00

Tables1 2 5000 10,000.00

Tables2 2 3000 6,000.00

Computer & Printer 2 10,000 20,000.00

Shelf 3 5000 15000.00

Safe box - - 5000.00

Sub total 76,000.00

 Plant and Machinery

Electric line installation 1 1,414,000 1,414,000

Grain mill 1 50,000 50,000.00

Weighting scale 2 25,000 50,000.00

 Pre operating cost 5,884,000 5,884,000

Grand total 26,520,000

25
16.2 VARIABLE COST

Variable cost of the farm is estimated Birr 25,480,000.00 birr. The major components of the
production cost are farm input, running cost and labour and salary cost.

16.2.1 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 below:

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 50qt 5000 250,000

Rice seed 320qt 3000 960,000

Haricot Bean 50qt 3000 150,000

Fertilizers/Dap 500qt 2000 100,000

Fertilizer/ urea 500qt 2000 100,000

Pesticides 100kg 200 20,000

Sub Total 1,580,000.00

Table 11 Fuel and oil costs

Input Items Required Unit cost/birr/ Total cost

Fuel 50,000 litter 20.00 1,000,000

Oils and grease 5000,kg 200 10,000

Sub Total 1,010,000

Grand Total 2,590,000

26
 KASAHUN HSHIABAYI CROP FARMING PROJECT March 30, 2016

17. 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 the owner of the company, Ato
Kasahun Ashi Abayi. 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 32 permanent professionals and 100 casual workers. Employee salary cost is projected with a 5%
annual increment.

The manpower required by the farm and salary are shown below

Table: 12. Manpower requirement and labour cost

Quantit
No Position Qualification Experience Monthly Salary Annual Salary(birr)
y

2 Manager Bsc in Agronomist - 1 7000 84,000.00

3 Operation manager Bsc in agriculture Min 1 year 2 5000 120,0000.00

4 Cashier Certificate Min 1 year 2 2000 48,000.00

5 Time keeper certificate- Min1 year 3 1500 54,000.00

6 Tractor operator 8th grade Min1 year 3 2000 72,000.00

7 Assistant tractor operator 10+3 Min1 year 3 1800 64,800.00

8 Guard >4 - 12 1500 216,000.00

9 Farm Manager Bsc in Agronomist Min 2 year 2 5000 120,0000.00

10 Quality supervision Bsc in agriculture Min 2 year 2 4000 96,000.00

Adimn & Finance

11 Division head Bsc in Management Min 3 year 2 5000 120,0000.00

Total Salary cost 32 4,234,800.00

1000x40 x
Casual workers - 1000/day 270 day 10,800,000.00

Total labour cost     1600 10,800,000.00

Grand total 15,034,800.00

27 BENCHI MAJI GURAFERDA DISCRICT

18. SUMMARY OF VARIABLE COSTS

Table: 13 Summary of variable costs

S.No Cost description Estimated Cost

1 Salary 4,234,800.00

2 Labour 10,800,000.00

3 Farm imputes/ seeds, fertilizers, pesticides, fungicides, oils and grease 2,590,000.00

4 Running cost 7,855,200.00

Grand total 25,480,000.00

28
 19. FINANCIAL EVALUATION
Table: 14. Assumptions used in the financial evaluations of Woldesenbet Teshome´s project
Source of finance 30 % equity 70 % loan

Loan duration 5 years

Bank interest 9.5%

Depreciation 10%in the initial year with 1% decrease per year there after

Repair and maintenance 5 % of the total farm machinery & equipment and buildings

Farming materials and inputs Incur 5% additional cost each year

Labour cost Incur 5% additional cost each year

Utilities 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

29
 20. BANK LOAN SCHEDULE
Table: 15. Bank Loan Schedule

Loan Duration: 5 Years

Number of Payments: 60

Interest Rate: 9.5%

Monthly Payment: Birr 119,643.5

Schedule of Payments

Year Beginning Balance Principal Interest Payment Ending Year

Balance

0 2016 36,400,000

1 2017 29,120,000 7,280,000 3,033,333 10,313,333

2 2018 21,840,000 7,280,000 2,426,667 9,706,667

3 2019 14,560,000 7,280,000 1,820,000 9,100,000

4 2020 7,280,000 7,280,000 1,213,333 8,493,333

5 2021 0.00 7,280,000 606,667 7,886,667

Note: the loan is assumed to be granted with six months grace period; hence a slight variation in
the loan schedule is expected.

30
 21. PROFITABILITY

Based on the projected income statement, the project will generate profit beginning from first
year of operation. Annual government tax will also grow during the life of the project. 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   33,330,000 55,500,000 77,670,000 100,000,000 100,000,000

Expenses -  - - -  -  - 

36,400,000.0
Fixed Cost 0 0.00. 0.00. 0.00. 0.00. 0.00.
15,600,000.0 15,600,000.0 15,600,000.0 15,600,000.0 15,600,000.0 15,600,000.0
Variable Costs 0 0 0 0 0 0

Depreciation   3,640,000.00 3,276,000.00 2,912,000.00 2,548,000.00 2,184,000.00

Maintenance   1,820,000.00 1,820,000.00 1,820,000.00 1,820,000.00 1,820,000.00

52,000,000.0 21,060,000.0 20,696,000.0 20,332,000.0 19,968,000.0 19,604,000.0
Total Expense 0 0 0 0 0 0

Gross Profit   12270000 34804000 57338000 80032000 80396000

11,467,600.0 16,006,400.0 16,079,200.0
Tax   2,454,000.00 6,960,800.00 0 0 0

Net Profit   9,816,000 278,43,200 45,870,400 64,025,600 64,316,800

31
 22. ECONOMIC BENEFITS

The project will create a permanent employment opportunity for 10 individuals and for 100
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.

Secondly 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.

Thirdly the farm will also be a demonstration farm in the development and evolution of good
commercial farmers and will cooperate with Mizan Tepi University 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.

23. ENVIRONMENTAL IMPACT ASSESSMENT AND MITIGATION MEASURES

  Integrated agriculture is the one of the recently developed concept of farming in rural areas and
when dealing with environmental dimensions, 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.

32
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
expertise consultation in the farm.

The possible 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. Chemical containers – use of chemicals is vital in the normal production of any
crop. So 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. Also, it will use clean source of irrigation in drip irrigation
and farm salt-tolerant vegetation in saline soil areas such as melons and tomato.

33
 24. Annex

Annex1 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 January, 2016 February, 2016

Acquiring land February, 2016 March, 2016

Development of infrastructure April, 2016 April, 2061

Land clearing, lowing, cultivation, and harvesting May, 2016 May, 2061

Production and product sell June 2017 July , 2061

34
 Annex 2 Manpower requirement and labour cost
Position Qualification Experience Quantity Monthly Salary Annual Salary(birr)

Manager Bsc in Agronomist - 1 7000 84,000.00

Operation manager Bsc in agriculture Min 1 year 2 5000 120,0000.00

Cashier Certificate Min 1 year 2 2000 48,000.00

Time keeper certificate- Min1 year 3 1500 54,000.00

Tractor operator 8th grade Min1 year 3 2000 72,000.00

Assistant tractor operator 10+3 Min1 year 3 1800 64,800.00

Guard >4 - 12 1500 216,000.00

Farm Manager Bsc in Agronomist Min 2 year 2 5000 120,0000.00

Quality supervision Bsc in agriculture Min 2 year 2 4000 96,000.00

Adimn & Finance

Division head Bsc in Management Min 3 year 2 5000 120,0000.00

Total Salary cost 32 4,234,800.00

1000x40 x
Casual workers - 1000/day 270 day 10,800,000.00

Total labour cost     1600 10,800,000.00

Grand total 15,034,800.00

35
 Annex 3 Land use plan of the project

Type of crop to be developed /ha/ Year

1st 2nd 3rd 4th

Sesame 133 222 311 400

Haricot bean 67 111 155 200

Rice 133 222 311 400

Infrastructure and a forestation 2 3 2 3

36