Table of Contents

Table of Contents................................................................................................................................................
1. Executive Summary.........................................................................................................................................
2. Introduction......................................................................................................................................................
2.1. Background of The Project........................................................................................................................
2.2. Promoter Background................................................................................................................................
3. The Project.......................................................................................................................................................
4. Market Analysis...............................................................................................................................................
4.2. Competition and Market Trends.................................................................................................................
4.3. Potential Buyers & Distribution Channel....................................................................................................
5. Technical Analysis..........................................................................................................................................
5.1. Farm Size and Production Capacity..........................................................................................................
5.2 Seed Selection...........................................................................................................................................
5.3. Input and Raw Materials............................................................................................................................
5.4. Machineries and Equipments.....................................................................................................................
6. Management.....................................................................................................................................................
6.1.Organisation Structure................................................................................................................................
7. Financial Study................................................................................................................................................
7.1. Classified Investment Cost........................................................................................................................
7.2. Operation Cost...........................................................................................................................................
7.3. Project Capital & Financing........................................................................................................................
7.3.1. Project Capital..................................................................................................................................
7.3.2. Financing..........................................................................................................................................
7.4. Cost-Benefit Analysis:................................................................................................................................
8. Social and Environmental Impact...................................................................................................................
8.1.Potential Negative Effects:..........................................................................................................................
8.2.Mitigation Strategies:..................................................................................................................................
8.3. Positive Impacts and Potential Benefits:....................................................................................................
 1. Executive Summary
This soybean farming project proposal aims to increase the production and export of
soybeans in Ethiopia while promoting sustainable agriculture practices. The project will
be implemented in the south west region of Ethiopia, where there is significant potential
for soybean cultivation due to the favorable climate and soil conditions.
The project will utilize modern farming techniques and technologies, including precision
agriculture, to optimize production and reduce environmental impact. The project will
provide training and technical assistance to smallholder farmers in the region to
promote the adoption of sustainable agriculture practices and increase soybean
production.
The project will also establish a network of buyers and distribution channels to increase
the export of soybean products, including soybean oil, soybean meal, and other soy-
based products. The global market for soybean products is growing, driven by
increasing demand for plant-based proteins and sustainable agriculture practices.
Ethiopia has the potential to become a significant player in the global soybean market,
given its favorable climate and soil conditions.
The project is expected to generate significant social and economic benefits, including
job creation and income generation for smallholder farmers. The project will also
promote sustainable agriculture practices, contributing to the development of a more
resilient and sustainable agricultural sector in Ethiopia.
The initial investment required for the project is 25 million ETB, and the estimated
annual revenue from the export of soybean products is USD 500,000. The project will
seek financing from development bank of Ethiopia and personal fund.
Overall, this soybean farming project proposal has significant potential to contribute to
the development of the agricultural sector and increase the production and export of
soybean products in Ethiopia. The project will promote sustainable agriculture practices
and generate social and economic benefits for smallholder farmers and the wider
community.

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 2. Introduction
2.1. Background of The Project
Ethiopia is a country with vast agricultural potential due to its favorable climate and soil conditions.
However, the agricultural sector has yet to reach its full potential due to a lack of modern
farming techniques, inadequate infrastructure, and limited access to financing. In recent years,
the Ethiopian government has implemented several initiatives to promote the development of the
agricultural sector, including the promotion of sustainable agriculture practices and the
expansion of export markets.
Soybeans are a versatile crop that can be used for a variety of purposes, including the production
of soybean oil, soybean meal, and other soy-based products. The global market for soybean
products is growing, driven by increasing demand for plant-based proteins and sustainable
agriculture practices. Ethiopia has significant potential for soybean cultivation, given its
favorable climate and soil conditions. However, soybean production in Ethiopia is currently
limited due to a lack of modern farming techniques, limited access to financing, and inadequate
infrastructure.
This soybean farming project proposal aims to increase the production and export of soybeans in
Ethiopia while promoting sustainable agriculture practices. The project will be implemented in
the South West region of Ethiopia, where there is significant potential for soybean cultivation.
The project will utilize modern farming techniques and technologies, including precision
agriculture, to optimize production and reduce environmental impact. The project will also
provide training and technical assistance to smallholder farmers in the region to promote the
adoption of sustainable agriculture practices and increase soybean production.

The project will establish a network of buyers and distribution channels to increase the export of
soybean products, including soybean oil, soybean meal, and other soy-based products. The
project will seek financing from international development banks and investors, as well as from
the Ethiopian government and private sector.
Overall, this soybean farming project proposal has significant potential to contribute to the
development of the agricultural sector and increase the production and export of soybean
products in Ethiopia. The project will promote sustainable agriculture practices and generate
social and economic benefits for smallholder farmers and the wider community.

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 2.2. Promoter Background
Binyam Shambel, the promoter of the soybean farm business, brings a wealth of experience and
expertise in the agriculture sector. With a strong passion for farming and a deep understanding of
modern agricultural practices, Binyam Shambel is well-equipped to lead and manage the
proposed soybean farm project in the south west region, Omo one minet woreda.
Binyam Shambel holds a Bachelor's degree in Agriculture from the esteemed Haramaya
University in Ethiopia. He has also completed various specialized training programs in crop
production, soil management, and pest control. Binyam Shambel has gained extensive practical
experience in soybean farming through his involvement in several successful agricultural
projects in Ethiopia over the past decade.
Binyam Shambel's career in agriculture has included roles in farm management, agronomy, and
agricultural consulting. He has successfully managed large-scale farms and implemented
innovative farming techniques to optimize crop yields and ensure sustainable production.
Binyam Shambel has also provided expert advice to farmers and agricultural communities on
best practices for crop cultivation, soil conservation, and integrated pest management.
Apart from his technical expertise, Binyam Shambel has a deep understanding of the local
agricultural landscape in Ethiopia. He has established strong relationships with local farmers,
suppliers, and stakeholders, which will be invaluable in the successful implementation of the
soybean farm project. Binyam Shambel is known for his strong leadership skills, strategic
thinking, and commitment to sustainable agriculture.
With his extensive knowledge, experience, and passion for agriculture, Binyam Shambel is well-
equipped to lead the proposed soybean farm project in Ethiopia. He will ensure the
implementation of best practices, effective management, and the achievement of the project's
social, environmental, and financial goals.

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 3. The Project
3.1. Project Description
The soybean farming project will be implemented on 700 hectares of land in the South West
region of Ethiopia. The project will utilize modern farming methods and techniques to optimize
production and reduce environmental impact, with a focus on promoting sustainable agriculture
practices. The project will be managed by a team of experienced agricultural professionals and
overseen by a project manager who will be responsible for coordinating all project activities.
3.2. Project Objective
The main goal of the project is to increase the production and export of soybean in Ethiopia
while promoting sustainable agriculture practices. The specific objectives of the project are:
● To establish a soybean farm in the Oromia region of Ethiopia, utilizing modern farming
techniques and technologies to optimize production and reduce environmental impact.
● To provide training and technical assistance to smallholder farmers in the region to
promote the adoption of sustainable agriculture practices and increase soybean
production.
● To establish a network of buyers and distribution channels to increase the export of
soybean products and generate income for smallholder farmers.
● To promote the use of soybean in food and feed production, contributing to food security
and the development of the livestock industry in Ethiopia.
3.3. Project Areal Requirement
The project will require approximately 700 hectares of land for soybean cultivation. The land
will be thoroughly surveyed and prepared, including clearing of any vegetation, ploughing,
harrowing, and leveling of the land to create optimal planting conditions.
3.4. Project Capital Requirement
The proposed soybean farm project requires an estimated capital investment of 25,000,000 ETB
to cover various aspects of the project's implementation. The project will be funded through a
combination of 8,500,000.00 ETB(eight million five hundred thousand) from personal finance
and loans 16,500.000 ETB (sixteen million five hundred thousand ) from Development banks
Ethiopia. The personal funding will be provided by the promoter, while the bank loans will be
secured using the land and equipment as collateral. The financing strategy aims to minimize the
project's financial risks and ensure its sustainability in the long termThe capital requirement will

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be utilized for land acquisition, infrastructure development, equipment purchase, initial working
capital, and other project-related expenses.
The breakdown of the estimated capital requirement for the soybean farm project is as follows:
3.5. Project Location and Justification
● Location
The proposed soybean farm project will be located in the South West region of Ethiopia,
specifically in the Omo Zone of MinetShasha Woreda. The farm will be situated in a strategic
location that offers favorable conditions for soybean cultivation and production.
● Climate
The climate in the project location is characterized as a tropical savanna climate, with hot and
dry conditions for most of the year, followed by a short rainy season. The average annual rainfall
in the region ranges from 800 to 1000 mm, which is conducive for soybean cultivation. The
temperature in the area varies from 25 to 35 degrees Celsius, providing suitable temperature
conditions for soybean growth and development.
● Infrastructure and Facilities
The project location is well-connected with basic infrastructural facilities that are essential for
the successful operation of the soybean farm. Some of the infrastructural facilities available in
the area include:
Road Connectivity: The project location is accessible by well-maintained roads, which facilitate
the transportation of farm inputs, produce, and farm personnel to and from the farm.
Water Resources: The project location has access to sufficient water resources for irrigation
purposes. The farm will utilize irrigation systems to ensure a reliable water supply for soybean
cultivation throughout the growing season.
Power Supply: The project location has access to reliable electricity supply, which will be
essential for the operation of farm machinery and other electrical requirements.
Labor Availability: The region has a significant labor force that can be employed for farm
operations, including planting, harvesting, processing, and other farm-related activities.
Market Access: The project location has good market access to nearby local and regional
markets, which provides opportunities for the sale of soybean produce.
Overall, the project location in the South West region of Ethiopia, Omo Zone, Minet Woreda
offers favorable climate conditions, basic infrastructural facilities, and access to labor and
markets, which are essential for the successful implementation of the soybean farm project.

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 4. Market Analysis
The market analysis for the soybean farming project in Ethiopia shows significant potential for
soybean production and export. The global demand for soybean products is growing, driven by
increasing demand for plant-based proteins and sustainable agriculture practices. Ethiopia has
significant potential for soybean cultivation, given its favorable climate and soil conditions.
4.1. Demand
The demand for soybean products is increasing globally, with a growing trend towards plant-
based proteins and sustainable agriculture practices. The demand for soybean products in
Ethiopia is also increasing, driven by the growing population and increasing demand for protein-
rich foods. Soybean oil is the most commonly used oil in Ethiopia, with demand expected to
continue to grow.
4.2. Competition and Market Trends
The soybean market in Ethiopia is still in its early stages, with limited competition. However,
there is increasing interest in soybean production, with several large-scale projects being
developed in recent years. The soybean market is also subject to global price fluctuations, which
can impact the profitability of the project. Therefore, it is important to establish a network of
buyers and distribution channels to ensure stable market access.
4.3. Potential Buyers & Distribution Channel
The project will establish a network of buyers and distribution channels to increase the export of
soybean products. The primary buyers will be local and international food processing companies,
which use soybeans as a raw material for the production of soybean oil, soybean meal, and other
soy-based products. The project will also explore the use of online platforms and e-commerce to
reach potential buyers and expand market access.
The project will establish a distribution network that includes local and international
transportation companies to ensure the timely and efficient delivery of soybean products to
buyers. The project will also establish partnerships with local retailers and distributors to expand
market access and promote the consumption of soybean products in Ethiopia.
Overall, the market analysis for the soybean farming project in Ethiopia shows significant
potential for soybean production and export. The growing demand for soybean products, the
limited competition, and the favorable climate and soil conditions in Ethiopia provide a unique

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opportunity to establish a successful soybean farming project that generates social and economic
benefits for the local community.

5. Technical Analysis
The soybean farming project encompasses various aspects, including land preparation, seed
selection and planting, crop nutrition, pest and disease management, irrigation management,
harvesting and post-harvest management, use of technology and innovation, machinery and
equipment, environmental sustainability, and monitoring and evaluation. By employing modern
and innovative farming techniques, the project aims to achieve optimal crop yield and quality
while promoting sustainable agricultural practices.

5.1. Farm Size and Production Capacity

Farm Size: The project will require approximately 700 hectares of land for soybean cultivation.
The land will be thoroughly surveyed and prepared, including clearing of any vegetation,
ploughing, harrowing, and leveling of the land to create optimal planting conditions.
Production Capacity: The soybean farming project, with a total land area of 700 hectares, is
expected to have a production capacity of Yield per hectare (Y metric tons/hectare) x Total Land
Area (700 hectares) i.e Assuming a yield per hectare of 2 metric tons (Y = 2), the estimated
production capacity would be:
Production Capacity = 2 metric tons/hectare x 700 hectares
Production Capacity = 1400 metric tons of soybeans per year
The production capacity will depend on various factors, including the agronomic practices
employed, weather conditions, seed quality, and pest and disease management.
This projection takes into consideration the optimal use of modern farming techniques, including
seed selection, crop nutrition, irrigation management, pest and disease control, and post-harvest
management.
The production capacity may vary from year to year based on external factors, such as weather
conditions and market demand. The project will continuously monitor and evaluate the
production performance to make necessary adjustments and optimize production capacity.

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It is important to note that the production capacity may also be influenced by the availability of
resources, such as labor, machinery, and inputs, as well as the efficiency and effectiveness of
project management and operations. The project team will ensure proper utilization of resources,
timely implementation of farming practices, and adherence to best agricultural practices to
maximize production capacity and achieve the project's production goals.
5.2 Seed Selection
Seed Selection and Planting: High-quality soybean seeds will be selected, taking into account the
local climate and soil conditions. The seeds will be planted using modern planting equipment,
such as seed drills or planters, to ensure accurate spacing and planting depth for optimal
germination and growth.
5.3. Input and Raw Materials
Soil tests will be conducted to determine the nutrient levels, and appropriate fertilizers will be
applied accordingly. The project will also explore the use of organic and bio-fertilizers to
promote sustainable soil health and fertility.
The project will implement integrated pest management (IPM) practices to control pests and
diseases effectively. This may include the use of natural predators, crop rotation, and judicious
use of chemical pesticides when necessary to minimize environmental impact.
5.4. Machineries and Equipments
Machinery and Equipment: The project will require the use of various machinery and equipment,
such as tractors, planters, harvesters, irrigation systems, and storage facilities. These will be
procured, maintained, and operated by skilled and trained personnel to ensure smooth project
operations.

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Table 5.1 Estimated Costs of the technical analysis of the Project

Item Estimated Cost (ETB)

Soil Testing 250,000.00

Land Preparation 1,800,000.00
Seed Selection and Procurement 400,000.00
Irrigation System Installation 4,600,000.00
Ferilizers and Agro Chemicals 600,000.00
Machinery and Equipments 8,000,000.00
Post Harvest Handling (storage facilities) 5,490,000.00

Total 21,140,000.00

6. Management
The success of a Soybean Farm project depends on the efficiency of its organization and
management. A well-structured organization with clear management roles and responsibilities
can improve productivity, reduce costs, and increase profitability. This section outlines the
organizational structure, management, and manpower requirements for a Soybean production
project.
6.1.Organisation Structure
The organizational structure of a Soybean production project have a simple organisational
structure, with a managing director overseeing all operations. A typical organizational structure
of Soybean Farm require the following departments:
Farm Manager
Manage day-to-day farm operations, including planting, irrigation, pest control, and harvesting.
Supervise farm workers and ensure compliance with farm protocols and best practices. Monitor
crop performance and implement corrective measures as needed. Maintain farm equipment and
machinery.

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Agronomist
Provide technical expertise on agronomic practices, including seed selection, fertilization,
irrigation, and pest management. Develop and implement crop management plans. Conduct soil
analysis and provide recommendations for soil fertility improvement. Stay updated with the
latest agricultural research and innovation in soybean farming
Finance and Accounting Manager
Oversee financial management and budgeting for the farm business. Maintain financial records,
prepare financial statements, and report on financial performance. Manage payroll, accounts
payable and receivable, and tax compliance. Provide financial analysis and recommendations to
support decision-making
Sales and Marketing Manager
Develop and implement sales and marketing strategies to sell soybean produce. Identify and
establish relationships with potential buyers, such as wholesalers, processors, and exporters.
Monitor market trends, prices, and demand for soybeans. Coordinate marketing activities,
including branding, promotions, and market research.
Human Resources Manager
Manage recruitment, hiring, and onboarding of farm employees. Develop and implement human
resources policies and procedures. Administer employee benefits, compensation, and
performance evaluations. Ensure compliance with labor laws and regulations
Administrative Assistant
Provide administrative support to the management team. Manage office operations, including
record-keeping, correspondence, and scheduling. Assist with procurement, inventory
management, and logistics.Handle communication and coordination with internal and external
stakeholders

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 Table 6.1 Manpower Requirement

Department Man power Monthly Salary Annual Salary

Farm Manager 1 12,520.00 150,240.00

Agronomist 1 10,120.00 121,440.00
Finance & Adminstration 2 6,120.00 73,440.00
Sales and Marketing 2 5,875.00 70,500.00
Human Resource 1 6,120.00 73,440.00
Adminstrative Asistance 1 4,500.00 54,000
Labor 300 1,500.00 450,000

Total 308 993,060.00

7. Financial Study
The total estimated cost of the project is 25,000,000 million. This includes the cost of land,
storage facilities, Land preparation, irrigation installation, salary and benefits, machinery and
equipment, raw materials, and labor costs, and contingency.
7.1. Classified Investment Cost
Fixed investment costs are those expenses that are incurred at the beginning of the project
and are not affected by changes in the level of output or production. In this case, the fixed
investment costs include the costs of land preparation, storage facility construction, machinery
and equipment, input and raw materials. These costs are expected to remain constant regardless
of the amount of soybean produced.

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 Item Cost (ETB)

Land Preparation 1,800,000

Soil Testing 250,000.00
Storage Building 5,490,000
Irrigation Installation 4,600,000.
Machinery & Equipment 8,000,000
Input Seed and Agrochemicals 1,000,000.00

Total Fixed Investment Cost 21,140,000.00

7.2. Operation Cost

Operational costs are those expenses that are incurred during the normal course of the project
operations. In this case, the operational costs include salaries and benefits for employees, utilities
and maintenance costs, marketing and sales expenses, miscellaneous expenses, and a
contingency fund for unexpected expenses. These costs are expected to vary based on the level
of output or production.

Item Cost (ETB)

Salaries and Benefits 993,060.00

Utilities and Maintenance 400,000.00
Marketing and Sales 400,000.00
Miscellaneous Expenses 66,940.00
Contingency 10% 2,000,000

Total Fixed Investment Cost 3,860,000.00

7.3. Project Capital & Financing

7.3.1. Project Capital

The total project cost for the soybean production Project in south west region Omo zone minet
woreda is ETB 25,000,000. The project capital represents the amount of money that is needed to
finance the project. In this case, the project capital is ETB 25,000,000.

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 7.3.2. Financing
To finance the project capital, we propose a combination of personal finance and bank loan:
A. Promotor Account:
In this case, we propose to raise 33% of the project capital personal account financing, which
amounts to ETB 8,500,000.
B. Debt Financing:
Debt financing refers to the funds that are borrowed from external sources, such as banks or
financial institutions. In this case, we propose to raise 67% of the project capital through debt
financing, which amounts to ETB 16,500,000. We will approach local banks and financial
institutions to obtain loans with favorable terms and conditions to finance the project.

7.4. Cost-Benefit Analysis:

The cost-benefit analysis for the soybean farming project shows that it is financially viable and
has the potential to generate significant returns. The analysis takes into account the total
investment capital, the operating expenses, the expected yields, and the selling price of soybean
products.
The estimated total investment capital is 25,000,000 ETB, with an expected yield of 1.5 tons per
hectare and a selling price of 3,500 ETB per ton. Based on these assumptions, the project is
expected to generate revenue of 3,150,000 ETB per year, with a net profit of 1,470,000 ETB
after deducting operating expenses.
The financial plan for the soybean farming project shows that it is financially viable and has the
potential to generate significant returns. The combination of personal funding and bank loans,
along with a detailed budget and cost-benefit analysis, will ensure the project's sustainability and
profitability in the long term.

8. Social and Environmental Impact

The soybean farming project in Ethiopia has the potential to have significant social and
environmental impacts, both positive and negative. In this section, we will assess these impacts
and identify strategies to mitigate any negative effects while maximizing the positive ones.
8.1.Potential Negative Effects:
● Land Use and Biodiversity Loss: The conversion of 700 hectares of land for soybean
farming has the potential to lead to habitat loss and biodiversity reduction. This can
impact local ecosystems and threaten the survival of some plant and animal species.

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 ● Water Use: The project will require significant water use for irrigation, which may lead
to the depletion of water resources and impact local communities' access to water.
● Pesticide and Fertilizer Use: The use of pesticides and fertilizers in soybean farming can
have negative impacts on soil and water quality, as well as human and animal health.
8.2.Mitigation Strategies:
● Land Use and Biodiversity Conservation: The project will implement measures to
conserve and restore natural habitats on the farm, such as leaving some areas uncultivated
and planting indigenous trees and plants. Additionally, the project will implement
sustainable agricultural practices, such as crop rotation and intercropping, to reduce the
impact on local biodiversity.
● Water Management: The project will implement efficient water management practices,
such as drip irrigation and rainwater harvesting, to minimize water use and ensure that
local communities' access to water is not impacted.
● Sustainable Use of Pesticides and Fertilizers: The project will use integrated pest
management and organic fertilizers to minimize the use of pesticides and fertilizers while
ensuring that the crop yields remain high.
8.3. Positive Impacts and Potential Benefits:
● Job Creation and Income Generation: The project will create jobs for local communities,
including both skilled and unskilled labor. This will generate income for the workers and
contribute to poverty reduction in the area.
● Sustainable Production: The project will promote sustainable agriculture practices, such
as crop rotation and intercropping, to ensure that the soil and water resources are
preserved for future generations.
● Food Security: The soybean produced by the project will contribute to the local food
supply and help address food insecurity in the area.
The soybean farming project has the potential to generate significant social and environmental
impacts, both positive and negative. By implementing mitigation strategies to reduce negative
impacts and maximize positive ones, the project can be a sustainable and responsible agricultural
venture that benefits local communities and contributes to the local economy.

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