Professional Documents
Culture Documents
Markos Banana Final
Markos Banana Final
1. Executive Summary
The Project owner; Mr. Markos Banner Mihretu who is an Ethiopian, He is proposed to
develop banana and avocado fruits farming project whose main objective is to carryout fruits
farming activities in Bench Sheko zone; South Bench woreda, Dirita kebele and the surrounding
area/kebele and the Project involves in large-scale production for local and international market
through time go to fruit juice processing.
Project cost: The total estimated cost of the project is 13,685,000.00 (thirteen million six
hundred eighty five thousand birr). From the total Project 4,105,500 (Four million one hundred
five thousand five hundred birr ) shall be covered by the owner Mr. Markos Banner Mihretu
fruits farming project and the rest 9,579,500.00( Nine million five hundred seventy nine
thousand five hundred birr ) shall be secured from bank.
Land Requirement: The planned development project requires 700 hectares of land for its
banana and Avocado fruit s farming activities. The land shall be secured from the district of
South Bench woreda, Dirita kebele and the surrounding area/kebele in Bench Sheko zone.
Job opportunities: The planned project shall provide work opportunities for 20 permanent and
for 200 temporary workers.
2. Introduction
In the past 40 years Ethiopia’s growth performance has also been heavily influenced by the
changes in political regimes with a corresponding shift in the economic policies and
strategies. Since 1991 the Government of Ethiopia has given an utmost priority for
Mr. MARKOS BANNER MIHRETU FRUITS FARM PROJECT
Ethiopia is a country endowed with a wealth of productive land and natural resources. Nearly
32 million hectares of viable agricultural land exists within the country’s landmass of 1.1
million square kilo meters. No one argues that harnessing the potential of these land
resources could take Ethiopia to the level of economic development that it has been dreaming
for. Nevertheless, less than 15 million hectares of arable land (47%) hitherto comes under
cultivation annually. Agriculture is the basis for economic growth, generation of employment
opportunities and earning of foreign exchange; furthermore. Agriculture contributes more
than 45% of Ethiopia’s export earnings and provides employment for 83% of the population.
Hence agriculture remains the country’s most important sector of economic stay. However,
about 96% the cultivated land area is under small holder farming and hence Ethiopian
agriculture remains characterized by small-scale subsistence production systems.
This is a project proposal prepared for Mr. Amin Dino Mohammed Integrated Farm project
which is under the establishment in South West Ethiopia Regional State, Bench Sheko zone,
Guraferda Woreda, and kuja kebele. Koye special place The studies shows that the south
west Ethiopia in generally and the project site in particular is very suitable for integrated
farm. Accordingly, the planned farm is set to produce banana, avocado, sesame and rice.
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The conducive government policy, favorable agro-ecology of the area including fertile soil,
cheap labor around the project site, Availability of infrastructure such as road telephone
service, high demand of agricultural output derives the promoter to engage in agricultural
development sector. The project is assumed to be equipped with advanced technology,
irrigation system, control methods and advanced seed cleaning facility.
The objectives of the project is formulating based on the general policy , goals and objectives of
the central and regional governments, towards agricultural development, achieving self –
sufficiency of food and raw materials shortage of domestic industries, reduced currency scarcity
and to create investment opportunities by provisions of Mr. Markos Banner Mihretu fruits
farming project banana and avocado encourage local farms in spreading out of technologies
The project feasibility study is designing to meet the following specific objectives
Creating employment opportunities for 20 skilled, 200 semi- skilled and daily labours.
It will be introduced the modern banana and avocado quality varieties.
To play significant role in the economic development of the region there by the economic
development of the country as a whole.
To change the fruits farming techniques that dependent on rain fall in to modern and
productive system of farming.
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4.2 MISSION
Increase local ability quality; banana and avocado varieties.
Build up international marketable banana and avocado varieties.
Develop, recognize and apply the up-do-date technologies for banana and avocado.
Exist certified by internationally recognized quality Certification Company as producers
of banana and avocado varieties.
Mr. Markos Banner Mihretu is designed to assist the country's economy by exporting and
importing goods. Mr. Markos Banner Mihretu is well-known by various types of industrial
chemical products as well. Mr. Markos Banner Mihretu by supplying smart services to the
private sector, government and non-government institutions, and other development institutes.
Industrial, agricultural, and construction machinery,private school project in Butajra town as
well as other related works in Minerals & Mineral Products.
Mr. Markos Banner Mihretu has plan to work fruits farming project banana and avocado
encourage local farms business, just for not participation rather than improve by adding value of
businesses.
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In the past 40 years Ethiopia’s growth performance has also been heavily influenced by the
changes in political regimes with a corresponding shift in the economic policies and strategies.
Since 1991 the Government of Ethiopia has given an utmost priority for agriculture because it
considers agriculture as the foundation for initiating structural transformation of the economy
(moard,2007). The agricultural development Led industrialization (ADLI)and plan for
accelerated and sustainable development to End poverty(PASDEP),that lead to an encouraging
average GDP increase of 5% (from 1992/93-2003/4),compared to the 4.5 % for Africa, has been
pursed as the major policy framework for development. These guiding strategic frameworks , in
addition to smallholder agriculture and industrialization, focus on the development of large-scale
private commercial farms. The latter are particularly important in adopting labor -intensive
technologies that are instrumental for achieving food security and overall development. Since
2000, Ethiopia’s economy has begun to perform progressively better than targeted. The average
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annual GTP growth was more than 8% with annual economic growth of 11%. Ethiopian growth
and transformation plan (GTP) currently under.
This is a project proposal prepared for Mr. Mr. Markos Banner Mihretu Integrated Farm which
is under establishment in South West Ethiopia Regional State, Bench Sheko zone, South Bench
woreda, Dirita kebele and the surrounding area/kebele.
The conducive government policy, favorable agro-ecology of the area including fertile soil,
cheap labor around the project site, Availability of infrastructure such as road telephone service,
high demand of agricultural output derives the promoter to engage in agricultural development
sector. The project is assumed to be equipped with advanced technology, irrigation system,
control methods and advanced seed cleaning facility.
The project will be located in South West Ethiopia Regional State, Bench Sheko zone, South
Bench woreda, Dirita kebele and the surrounding area/kebele can be justified with the following
reasons
Large area of potential investment land have been identified for potential investors who
want to take part in the development of fruits production
The agro-ecologies and climate conditions of most parts are proved to have been ideal for
fruit production
Other interesting feature of the site is availability of sample public land and forest land which is
advantageous environment for banana and avocado fruits production the project will be
generally environmentally friendly by conserve and afforest of the forest land.
5. BANANA FRUIT
Banana is one of the most important tropical fruits and evolved in the humid tropical regions of
South East Asia with India as one of its centers of origin. Bananas including dessert and cooking
types, are giant perennial monocotyledonous herbs of the order Zingiberales, a sister group to the
well-studied Poales, which include cereals. It does not originate from Africa it introduced to East
African highland regions between the first and sixth century AD . As a result a wide range of
unique varieties available that are belonging to the East African highland bananas and the region
has been considered as secondary center of Musa diversity. Bananas contribute greatly to the diet
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in large regions of Africa . The crop represents the world’s second largest fruit crop with an
annual production of 129,906,098 metric tons. Banana is the cheapest source of carbohydrate
and a good source of vitamins A, B, C and minerals, which other staple food crops such as
cassava, potato and cereals are lacking. Banana is one of the important fruit crops used both as
staple and dessert. Banana provides a starch staple across some of the poorest parts of the
world in Africa and Asia, while dessert bananas are a major cash crop in many countries.
Local cultivars of banana were under cultivation in Ethiopia for long period of times. These
local varieties are low yielder and less demand on market. As a result a number of high yielding
banana varieties were introduced and adapted in the country. According to MoARD (2006), in
Ethiopia there are seven dessert and five cooking type banana varieties released by the research
system. Besides, different local varieties that are produced in almost all part of the country by
small-scale farmers as garden crop mainly for home consumption and in some cases for sale in
local markets.
In Ethiopia about 59,298.19 ha is covered by Banana and 4,936,022.34 quintals are harvested
annually. CSA (2011) also reported as the national yield potential of the crop is 83.24
quintals per hectare. On the other hand, in 2010 Meher cropping season 1,228,662 house
holders was participated in banana production and about 13,156.6 hectares of land was covered
with this crop, where 881,327.17 quintals were harvested annually in Oromia Regional state.
The average yield potential of banana in Oromia regional state is 66.99 quintals per hectare
and is lower than that of the national yield potential of the crop (CSA, 2017/18
5.1 Overview of Banana Production in World
Over more than 1000 varieties of bananas are produced and consumed in the world, among
those the most commercialized is the Cavendish type banana, which accounts for around 47
percent of global production ( FAO, Banana Market Review, 2020). They are less susceptible
to damage occurred from environmental influences such as disturbance, storm or any war of
words. Caven- dish banana crops are known for their excessively high production rate per
hectare and it is cost benefited. There alert to new changes and quick response to changes
makes Cavendish convalesc- ing from natural disasters quickly. Approximately 50 billion
tonns of Cavendish bananas are pro- duced globally every year.
Table 2-1 world banana production 2019-2016
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production rate 68% of land covered by banana production. Farmers who led their life by
manufacturing banana manly found in southern part (SNNPRS) mainly in Gamo Gofa, Bench
Maji, and Sheka zones (Ambisa, 2019), they counts 22% of total banana producers in the
country.
The establishment of state farms and different large scale plantation paved away for modern
ba- nana production to begin, which is in the beginning of this century. The production system
con- ducted are small plantation in home gardens, which is owned by small farmers mainly
found in areas where the large banana producers occur such as south- western and western
provinces. The second is medium-sized plantations which is not more than 10 hectares and
address local market, the last system is relatively large plantations above 20 ha developed to
supply export markets.
Ethiopia starts exporting banana in 1961, at that time about 5000 tonnes were exported. After
11 years the production shows increment to 60,000 tonnes. Europe, Asia and Africa were
destinations of these products. In 1975 the country reaches 100,000 tonnes for total banana
production (Alemu, 2017). Musa babbisiana and Musa acuminate are the common species of
banana cultivated across the country. Malaysia is birth place of Musa acuminate. On the other
hand Musa babisiana origi- nates from India. East Africa, plantain banana and east Africa
high land banana are the three main banana grouped in the continent. East Africa bananas are
mainly dessert type whereas plantain bananas are found in the central and West Africa lands.
Cooking bananas which is mainly used for beer production are mainly cultivated in east
Africa highlands
They supply for local market and the rest spent it for daily home consumption.
Table 2.2 Types of banana varieties released in Ethiopia
Variety Name Type Potential Average Year of
yield(g/ha) height(m) released
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This is the starting point of postharvest quality management. Therefore, it must be ensured
that properly matured fruits should be harvested. It must be harvested when it attains the
appropriate stage of development based on physiological and horticultural maturity. Harvest
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maturity varies in accordance with the crop concerned. The fruit is harvested at different
stages of maturity de- pending on how far the fruit will be transported, how long it will be
kept in storage and the re- quirements for the specific market. Maturity always has a
considerable influence on the quality of fresh produce as well as the storage potential and
occurrence of many storage disorders. Maturity at harvest has a major impact on quality and
postharvest life potential of fruits and vegetables (Hailu et al., 2013)
5.6.2 Determination of Maturity Stage of Banana Maturity Indices
Maturity of banana can be detected by degree of fullness of the fingers, i.e., disappearance of
angularity in a cross section. Bananas are harvested mature-green and ripened upon arrival at
des- tination markets since fruits ripened on the plant often split and have poor texture.
5.6.3 Quality Indices
Maturity (the more mature the better the quality when ripe)
Finger length (depending on intended use and demand for various sizes)
Freedom from defects, such as insect injury, physical damage, scars, and decay
As bananas ripen their starch content is converted into sugars (increased sweetness).
Other constituents that influence flavor include acids and volatiles.
There are two stages of maturity for green bananas. During the first stage the fruit has an
angular shape, with an average length of 18 cm, an average circumference of 15.5 cm, and an
average weight of 480 grams. In the second stage the sides of the banana become rounded,
and the banana increase in size to a length to an average of 24 cm, a circumference of 16.5
cm, and an average weight of 525 grams. In both stages the banana will have a dark green
color. Maturity of banana can be detected by using color chart as a reference. There are seven
stages of banana which deter- mines the stage of maturity. Those are:
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most avocado varieties grow quite large if the canopy is not managed. If sufficient land is
available a wider spacing is preferred. Planting distances is a much debated subject. A higher
planting density gives higher returns in the early years of the planting, but it can also give more
canopy management problems in later years.
6.2 Input Sources
Agricultural inputs are important elements for production and productivity. As a result the typical
inputs utilized for production of the Avocado were seed/seedling, labor, land, and
compost/manure. The major sources of inputs for Avocado production in Ethiopia are farmers by,
own endeavors, agricultural offices and markets. In general the sources of inputs for Avocado
production are agricultural development offices, markets, agricultural research institutes, own
stocks, IPMS, and other farmers .Woreda Agricultural offices, local planting materials purchased
from unknown market sources. The Agricultural research center and self-production by farmers
and sources of avocado planting materials Local seed production is the major source of seedlings
for distribution .
6.3 Harvesting of Avocado /Fruits Collection
Harvesting is largely executed by child labor by climbing on the tree. But use of picking hooks,
shaking of trees and knocking down fruits with wooden sticks are also exercised. The later
practices cause fruit droppings that may cause physical injury at any time .
6.4 Post Harvest losses of Avocado
Post-harvest losses can be measured both by quality and quantity losses. The losses can appear in
any stage of the supply chain during activities such as harvesting, transportation, packing and at
market places (Hodges et al., 2011; Kader, 2009). According to Humble and Reneby (2014) the
largest losses of avocado in Ethiopia occur at:- Harvest, mainly due to poor harvesting
techniques Transport; mainly due to loading and unloading and Storage; mainly due to over
ripening.
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bearing and marketing information facilitating marketing (Branson and Norvell, 1983).
A marketing chain is used to describe the numerous links that connect all actors and transactions
involved in the movement of agricultural products from the farm to the consumer (Lunndyet al.,
2004). It is the path one good follow from their source of original production to ultimate
destination for final use.
6.6 Marketing Constraints
Marketing constraints are related to prices and demand for the products, market information,
communication, storage and perish ability of the products. According to Mulat (2000) the largest
constraints in Ethiopian agricultural markets are the limited amount of traders that have a scarce
amount of capital together with a large amount of farmers, which leaves the farmers with a weak
bargaining power. The horticulture products in Ethiopia are mainly produced by smallholder
farms, and a small amount of state-owned farms (Emana & Gebremedhin, 2007). Lack of market
to absorb the production; large number of middlemen in the marketing system; absence
(weakness) of marketing institutions safeguarding farmers' interest and rights over their
marketable produces (e.g. cooperatives); lack of coordination among producers to increase their
bargaining power; imperfect pricing system of traders was a major problem to producers.
Traders charge low price at peak supply periods which is not based on the real demand and
supply interaction .this implies, the middlemen decide on the price of fruit products. Producers
cannot negotiate since they may be denied even a low price and their products could be liable to
rotting, since it is perishable, and lack of semi-processing industries (yimer, 2015).
6.7 Avocado Value Chain Actors Function and Value Addition
Market participants along avocado value chain are producer, local collectors, wholesalers,
retailers, processors and final consumers of the product. Producers are the primary or first link
actors who cultivate and supply Avocado to the market. Local collectors are farmers or part time
traders in assembly markets who collect Avocado from farmers in village markets for the
purpose of reselling it to wholesalers, retailers and consumers. They use their financial resources
and their local knowledge to bulk avocado from the surrounding area. Wholesalers are known for
purchase of bulky products with better financial and information capacity. They are major actors
in the channel and they purchase avocado either directly from farmer or local collectors. They
procure and consign large amount of Avocado to the regional market and to terminal markets.
Retailers are the ultimate actors in the market chain that purchase and deliver avocado to
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consumers.
Processors are those value actors like cafeteria, restaurants and juice houses which change
Avocado fruit into processed goods like juice. Consumers are those households who bought and
consume avocado.
The collectors are closely associated with brokers who work at grassroots level as well as with
those coming from bigger marketing centers. In the markets where the producers sell their
products, mainly during the peak supply period, the collectors fix the prices, which is often very
low.
6.8 Avocado value chain are;-
Producers: They are the first actors in the marketing chain of avocado and all of them are
smallholder farmers who produce the avocado and supply to the next agents.
Local Collectors: - These are important actors in the market chain and they collect avocado,
from producers or farmers and they in turn sell it to retailers and consumers.
Retailers: These are also important actors in the avocado that deliver fruits to consumers. That
is, they purchase fruits either directly from producers or local collectors and deliver to
consumers.
Consumers: These are the last actors in the fruit value chain. They are individuals or households
who buy various fruits from fruit producers, local collectors and retailers for their own
consumption only. As last actors in the chain they can buy the fruits from various actors in the
marketing chain. That is either directly from producers or other actors in the channel as local
collectors and retailers.
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farming, crop farming, fruits farming, rubber tree plantation and animal farming activities within
the district.
The main ethnic groups in Debub/south Bench woreda include Sheko, Bench, and other people
who fled from different parts of the country are also part of the population in the district.
The main sector that supports the economy in Guraferda is agriculture. Coffee, rice, sorghum,
maize, honey and many types of root crops are the main crop types grown by most farmers in the
district. Beekeeping /honey/ is becoming an important means of earning many for 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 Sheko districts which have shown a rapid progress in infrastructural development.
Telephone network lines, electric power lines, and roads stretched throughout Debub/south
Bench woreda makes investment projects working there relatively in advantageous position than
those operating in other districts.
9. FARM CAPACITY
The farm requires a total of 700 hectares of land for its various development activities. Of the
total 700 hectares of land 350 hectares shall be used for banana production, 340 hectares of land
for avocado production, 10 hectares of land for infrastructure .
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Total
S.N Type of fruit to be developed /ha/ Year
o 1st 2nd 3rd 4th
1 Banana 350 350
2 Avocado 340 340
3
4
Total
12.FINANCIAL ANALYSIS
The total investment capital of the project is computed to be birr is 13,685,000.00 (thirteen
million six hundred eighty five thousand birr) out of which fixed costs accounts 53% /7,253,050
birr/and variable cost accounts 47 % /6,431,950 birr/
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Fixed costs are expenditure on Building and Civil Work; Vehicle and Machinery; and pre-
operation cost. The total fixed costs of the project are outlined as follows.
Table 9 Machinery and Equipment Requirement and Cost Building and Civil Works
Description Qty Unit Cost Total Cost
Building construction
Workers Dormitory 2 100,000 200,000
Office 2 100,000 200,000
Store 1 500,000 400,000
Guard house 2 15,000 30,000
Cooking room 1 50,000 50,000
Staff residence 1 100,000 100,000
980,000.00
Sub total
Farm Machinery and equipment
Tractor with accessories 1 1,300,000 1,300,000
Generator 1 90,000 90,000
Welding machine 1 150,000 150,000
Sickles 200 200 40,000
Gejera 200 250 50,000
Disc harrow 28 disc 2 200,000 300,000.00
Ditcher 2 100,000 200,000.00
Trailer 3 50,000 150,000.00
Trailed tanker 3 50,000 150.000.00
Cultivator 2 100,000 100,000.00
Ridges 2 100,000 200,000.00
Precession- planter 2 150,000 200,000.00
Sub soil 2 60,000 120,000.00
Motorized sprayer 3 45,000 135,000.00
Thresher 2 150,000 207,500.00
Corn shelter 2 40,000 80,000.00
Compressor 1 100,000 100,000.87
Sub total 3,422,501.00
Vehicles
Pick up 1 1,260,000 1,260,000
Sub total 1,260,000
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 1 414,000 414,000
Grain mill 1 50,000 50,000.00
Weighting scale 2 25,000 50,000.00
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514,000.00
Sub total
Pre operating cost 2,000,000 1,000,549.00
7,253,050.00
Grand total
Variable cost of the farm is estimated Birr 6,431,950.00 birr. The major components of the
production cost are farm input, running cost and labour and salary cost.
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 Banana, Avocado , sesame and rice farming
Input Items Amount in qt, or lit or kg Unit price Total Cost Birr
6000 150,000.00
3000 75,000.00
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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 ,
Mr. Markos Banner Mihretu fruits farming project . 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 20 permanent professionals and 200 casual workers. Employee
salary cost is projected with a 5% annual increment.
The manpower required by the farm and salary are shown below
Monthly Annual
No Position Qualification Experience Quantity
Salary Salary(birr)
Assistant tractor
6 operator 10+3 Min1 year 2 1800 43,200.00
Adimn& Finance
10 Division head Bsc in Management Min 3 year 1 4000 48,000
200x40 x
Casual workers - 200/day 270 day 2,160,000.00
1 Salary 1,153,200.00
2 Labour 2,160,000.00
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6. FINANCIAL EVALUATION
Table: 14. Assumptions used in the financial evaluations of Mr. Markos Banner Mihretu fruits
farming project
Source of finance 30 % equity 70 % loan
Depreciation 10%in the initial year with 1% decrease per year there after
Building construction, Farm Machinery and equipment ,
Vehicles, Plant and Machinery
Repair and maintenance 5 % of the total farm machinery & equipment and buildings
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Number of Payments: 60
Schedule of Payments
2023 9,579,500.00
1,915,900 3,017,543.00
2024 7,663,600.00 1,101,642.5
1,915,900 2,797,214.00
2025 5,747,700.00 881,314.00
Note: the loan is assumed to be granted with six months grace period; hence a slight variation in
the loan schedule is expected.
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Gross Profit 23,939.85 3,079,208.37 3,787,040.6 12,513,454.06 18,174,539.01 20,255,804.28 24,344,237.82 24,390,434.2
Tax (20%) 4,787.97 615,841.674 757,408.12 2,502,690.812 3,634,907.802 4,051,160.856 4,868,847.564 4,878,086.84
Net Profit 19,151.88 2,463,366.69 3,029,632.48 10,010,763.25 14,539,631.208 16,204,643.42 19,475,390.35 19,512,347.36
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9. SOCIO-ECONOMIC BENEFITS
The project will create a permanent employment opportunity for 20 individuals and for 200
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.
The project has many economic benefits either maximizing the return of the company which
enhances the share value of the shareholders. It has positive effect on the environment and
contributes to the development of local society by enhancing the utilization of resources in the
country.
It has immense importance to change the lively hood of local society by teaching them
the best practices
Contributes in the production of tree fruit which has importance in enhancing food
security f the country
Producing frit at commercial scale which enhance domestic consumption and export to
foreign market.
Generate profit for the company and maximizes the return of the shareholders an enable
them to invest more in the country.
The project can create employment opportunities for 20 permanent employee and more
than 200 casual workers for this implementation phase.
It will generate more than ETB 54 million in terms of tax revenue within the coming
fifteen year. The project will generate foreign currency from the sale of oilseed and
fruits and will have a foreign exchange saving effect to the country by substituting the
current important.
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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. 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.
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