SUMMARY

 This profile envisages the establishment of a plant for the production of roasted, grounded
and packed coffee with a capacity of 5000 tons per annum S e v e r a l v a r i e t i e s o f
p r o c e s s e d g r e e n c o f f e e u s u a l l y a r e b l e n d e d a n d r o a s t e d together to produce
the tastes, aromas and flavors popular with consumers.
G r o u n d e d   c o f f e e   i s   c o n s u m e d   b y   h o t e l s ,   b a r s ,   c a f e t e r i a s   a n d   h o u s e h o l d s . Al
though coffee is now grown in many countries around the world,
Ethiopiar e m a i n s   o n e   o f   t h e   c h i e f   p l a y e r s   i n   t h e   g l o b a l   m a
r k e t ,   b y   e x p o r t i n g exceptionally flavorful gourmet coffees to the world.
Ethiopia is reported to Bethe largest coffee producer in Africa. The present export demand
for locally produced non decaffeinated roasted
andm i l l e d   c o f f e e   i s   e s t i m a t e d   a t   9 , 3 9 5   t o n s .   T h e   e x p o r t   d e m a n d   f o r  
l o c a l l y   produced non decaffeinated roasted and milled coffee is projected to
increase from 14,768 tons in 2020 to 21,529 tons and 31,384 tons by the years
2025and 2030 respectively. The main raw material for coffee processing plant is pre-
cleaned green coffeewhich is available locally. The product can get its market outlet
through
thee x i s t i n g   w h o l e s a l e   a n d   r e t a i l   n e t w o r k   t h a t   i n c l u d e s   d e p a r t m e n t   s
t o r e s , merchandise shops and supermarkets The establishment of such plant will
have a foreign exchange earning effect by exporting its product to the
globalmarket. The total investment cost of the project is estimated at Birr 25 million. Fromthe
total investment cost the highest share is accounted by fixed investment cost
followed by initial working capital and pre operation cost. The project is
financially viable with an internal rate of return (IRR) of 20.98% and a
n e t present value (NPV) of Birr 12.29 million, discounted at 10%.The project can
create employment for 22 persons.
1. GENERAL INFOMATION
 The Promoter of the project (Owner): W/ro Seble Niguse Gugussa
 Name of the project- WET COFFEE PROCESSING INDUSTRY
Address/site/:
Region- Oromia
Zone – West Guji
District/City- Hamballa Wamana
Kebele – Alaka Korchana PA
Legal form of Business : Private
Sector of the Project : Commercial Services
Distance from International Asphalt Road- Woreda : 27Km to East direction
Distance from Woreda – the Project site : 22Km to East direction
Altitude of the district ranges from 1500m-2000m above sea level.
Topography of the Project : Slightly slope
Temperature ranges from 15oc- 30 oc
Total area required : 0.67 Ha(6700m
2)
Total investment cost: 6,000,000ETB is required, out of which amount
1,800,000ETB (30%)from owner equity and the rest 4,200,000(70%) will be from bank loan.
E m p l o y m e n t O p p o r t u n i t y : 3 5 i n d i v i d u a l s o n p e r m a n e n t a n d a 4 o n c a u s a l
b a s i s f r o m b o t h qualified and unqualified (skilled and un skilled) people.
 Social and Economic Benefit: Provides better employment opportunities for local
communityincome generation through taxation for the country for and foreign currency
L a b o r s a f e t y : T h e e n v i s a g e d p r o j e c t i s a s s u m e d t o b e u n d e r t a k e n b y
considering workerssafety. The promoter will provide all the necessary
s a f e t y m a t e r i a l s f o r t h e p e r m a n e n t a n d temporary employees, based on the nature of
the activities.
Environmental Considerations: the proposed project has its own environmental protection
planand budget. So all the necessary actions will be undertaken on right timely before affecting
theenvironment.

2.INTRODUCTION

Agriculture is the main stay of Ethiopian`s economy providing employment

opportunities to85% of the population and back bone of Ethiopian`s economy. Ethiopia has
one of the fastest-g r o w i n g e c o n o m i e s i n t h e w o r l d a n d A f r i c a ` s s e c o n d
m o s t p o p u l o u s c o u n t r y . C o f f e e  production in Ethiopia is a longstanding tradition
and is where coffee Arabica, the coffee plantm originates. The plant is now grown in various
parts of the world; Ethiopia itself accounts for a r o u n d 3 % o f t h e g l o b a l c o f f e e
m a r k e t . C o f f e e i s i m p o r t a n t t o t h e economy of Ethiopia ;a r o u n d 6 0 % o f
foreign income comes from coffee, with an estimated 15 million of
t h e  population relying on some aspect of coffee production for their livelihood. In 2006, coffee
exports brought in $350 million, equivalent to 34% of that year's total exports.Many other
economic activities depend on agriculture, including marketing, processing,
andexport of agricultural products. Production is overwhelmingly of a subsistence
nature, and al a r g e p a r t o f c o m m o d i t y e x p o r t s a r e p r o v i d e d b y t h e s m a l l
a g r i c u l t u r a l c a s h - c r o p s e c t o r . P r i n c i p a l c r o p s i n c l u d e coffee,  pulses (

e.g.

  b e a n s ) . I n g e n e r a l , E x p o r t s a r e a l m o s t e n t i r e l y agricultural commodities, and

coffee is the largest foreign exchange earner. An approach to bring a viable project in
Hamballa Wamana Woreda is chosen with speciale m p h a s i s t o w e t c o f f e e
processing industry (production). As an agricultural
i n d u s t r y endeavors the project, which here after will be promoted by W/ro Seble
Niguse Gugussa WetCoffee Processing Industry. In addition, most importantly it is all good a
motivation: obtaininga socio-economically acceptable and technically sound return from the
invested resources.Therefore, it has become a menu of the rational proposal to forward
the likely options thate n s u r e a quality yield as well as satisfactory
equilibrium between the investments and theexpected benefits, attractive
profit for that matter. Thus, the promoter of this project isenvisaged for
operations to undergo reducing of challenges without losing the
a v a i l a b l e opportunities in the proposed project area and woreda as well.Furthermore, the
project is planned to undergo different methods that will enable to overcomethe hitherto existing
problems of wet coffee processing system and to transform the processings y s t e m s o f
market-oriented nature with step-by- step value addition as well as
p r o c e s s i n g ventures. Generally, it serves country in generating income to the
government by the form of taxation. Hence, its advantage can be concluded as
technically, economically and financially practicable and acceptable

3.BACKGROUND AND OBJECTVES

Ethiopian’s economy is based on agricultural sector which employees over 85% of
the population and contributes the highest share to the GDP.
 Coffee export generated 41% of f o r e i g n e x c h a n g e e a r n i n g s a n d p r o v i d e s i n c o m e
f o r a p p r o x i m a t e l y 8 m i l l i o n s t o c k h o l d e r   households. Policy attention to the
sector was always considerable, and its importance has been renewed in the latest
poverty Reduction Strategy, the plan for Accelerated and AbstainedDevelopment to End poverty
(PASDEP). PASDEP puts forward a development strategy basedon accelerated economic
growth, part of which is hope to be achieved via increased privatecommercialization
and market integration. On the average, farmers ranked 84% of their farm production
overall, coffee contributed 70%to the total value of output sold. There is, however,
a high inter-household differentiation: the85% highly coffee small holders
generated over 95% of their cash income from coffee sales,w h i l e t h e c o t t o n
15% earned 63% of their cash income from Daly labor food
f r o m  preprocessing. Although in Hambela Wamana Wereda, particulary in Alaka korchana
kebelecoffee production immense agricultural potential exists for the dry coffee
processing is leftinactive.
3.1. Coffee in Ethiopia Economy
When we look at Historical background of coffee in Ethiopia economy, After the
downfall of Dergue regime, coffee acreage increased tremendously. For instance,
the acreage increasedt h r e e - f o l d f r o m 3 0 0 , 0 0 0 h e c t a r e s i n 2 0 0 6 t o 7 0 4 , 0 0 0
h e c t a r e s i n 2 0 1 0 . S i m i l a r l y , c o f f e e  production has followed the same trend, 308,568
tons of green coffee in 2006 to 480,621 tons i n 2010 (ICO, 2009). Coffee
m a r k e t i n g a c t i v i t i e s m a k e c o f f e e o n e o f E t h i o p i a ’ s m o s t important
sources of farm income and government revenues. Table 1 illustrates the
evolutionof foreign exchange earrings as contributed by coffee and the injection of
cash towards thecountry in the last five years. The Government, with strong support
from development partners, has made different tragici n t e r v e n t i o n t o e n h a n c e
the delivery of improved production technologies and
s u p p o r t services. Over the past several years, the Ethiopian Government
h a s d e m o n s t r a t e d s t r o n g commitment to agriculture and rural development through
allocations of more than 10 per centof the total budget. Despite these achievements,
however, the Government recognizes much