BUSINESS PLAN OF WEAT FARM

UNIVERSITY OF GONDAR
INSTITUTE OF TECHNOLOGY
DEPARTMENT OF MECHANICAL
ENGINEERING
Course: Entrepreneurship
BUSINESS PLAN: WHEAT FARM ING

GROUP MEMBER ID NO.

1. EYU KALEB GUR/01054/12

2. YOHANES ASSEFA GUR/02301/12
3. TESEMA ELIGO GUR/01666/12
4. REDIET HAIMANOT GUR/05193/12
5. MINTESNOT BEKELE GUR/01136/12
6. HENOK ALEMAYE GUR/05974/12
7. ASHEBIR MATHEWOS GUR/00633/12
BUSINESS PLAN OF WEAT FARM

ዘለላ ስንዴ

ZELELA WHEAT

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 BUSINESS PLAN OF WEAT FARM

Contents
1. Executive summary...................................................................................1
2. Business model..........................................................................................2
3. FUND REQUIREMENT................................................................................5
4. PRODUCT OR SERVICES.............................................................................8
5. Plan.........................................................................................................10
5.1 Marketing (plan) Feasibility...................................................................10
5.2 Technical & Operational Feasibility.......................................................18
5.3 Organizational Plan:..............................................................................24
5.4Financial and economic Plan..................................................................29
5.4.1Financing Plan and Loan Requirement.............................................29
5.4.2 Projected sale..................................................................................32
5.4.3 Projected Income and Expenditure Statement...............................32
5.4.4 Projected break-even point.............................................................33
5.4.5 Projected Cash Flows.......................................................................34
5 .4.6 Payback period...............................................................................35
5.4.7 Profitability index............................................................................36
6) Critical risks.............................................................................................36
7) Exit strategy.............................................................................................37
8) Appendix.................................................................................................39

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 BUSINESS PLAN OF WEAT FARM

1. Executive summary
ZELELA wheat farm is a commercial farm that will be based in the outskirts of Arsi,
Negele, Oromia, Ethiopia. We have done our detailed market research and feasibility
studies and we were able to secure a well – situated and suitable farm land to start our
commercial wheat, barley and sorghum farm.

Our commercial wheat farm is a going to be a standard commercial farm, and it will be
involved in commercial wheat cultivation, processing and packaging. We will involve in
organic and non-organic commercial wheat farming.

We have put plans in place that will help us launch a standard and world – class wheat
processing plant within the first three years of officially running ZELELA wheat farm. We
will process and package wheat and ensure that they flood the market both in the Oromia and
in other region of Ethiopia.

We want to compete with the best in the industry, that is why aside from the fact that we
have secured the required farm land and most of the farming equipment and machines, we
have also hired some key employees who are currently undergoing training so as to fit into
the ideal picture of the 21st century commercial wheat farm workforce that we want to build.

We are in the wheat farming business because we want to leverage on the vast opportunities
available in the commercial farming industry to contribute our quota in growing the
Ethiopian economy, in national food production, raw materials production for industries, to
export agriculture produce from the Ethiopia to other countries and over and above to make
profit.

ZELELA Wheat Farms is well positioned to become one of the leading wheat, barley and
sorghum farms in the ETHIOPIA, which is why we have been able to source for the best
hands and farm machinery to run the farm with. We have put processes and strategies in
place that will help us employ best practices when it comes to wheat, barley and sorghum
farming as required by the regulating bodies in the ETHIOPIA.

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 BUSINESS PLAN OF WEAT FARM

2. Business model
Introduction

 Name of the company; ZELELA WHEAT FARM..

 Address: ARSI NEGELE, OROMIA, ETHIOPIA.
 Legal form: share company
 Types of business: WHEAT FARM.
 Amount of finance: 1,300,000birr.
 Sources of finance; selling of stock.

For several years, Ethiopia has had to import wheat because the supply within the country is
in no way commensurate to the demand. This makes it important that new wheat farms are
established in different parts of the country to meet this demand. ZELELA Wheat Farm is
being established to respond to this call for the establishment of wheat farms.

The importance of wheat in our daily food consumption cannot be overemphasized. Man can
hardly do without consuming flour daily, especially in Nigeria. To this end, ZELELA
Wheat Farm has acquired a 10-hectare piece of land around the outskirts ARSI, OROMIA,
ETHIOPIA.

This location was seen as desirable after much research and a detailed feasibility study. We
must rise to the challenge of wheat production considering how much the country spends on
wheat importation already. There is no doubt that if nothing is done on the home front,
Ethiopia may be exposed to several risks in the nearest future.

As a result, the government has set in place several policies to encourage new wheat farms to
spring up. We at ZELELA Wheat Farm have recognized the opportunities available in this
sector and we seek to exploit them for profit and to meet the needs of Ethiopia.

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 BUSINESS PLAN OF WEAT FARM

BACKGROUND INFORMATION

Opening wheat farming is known as a hot business project with high returns in recent years,
especially in big wheat producer and countries in problem of food supply. The TOP 10 wheat
producers are China, India, Russia, United States, France, Austrialia, Canada, Pakistan,
Ukraine and Germany. Ethiopia also has a severe shortage of wheat milling capacity, which
has created a market for surplus flour from abroad. Grain storage, marketing, milling, baking
and processing infrastructure are all grossly inadequate. Development of these capacities will
strongly encourage local wheat production while reducing Ethiopians dependency on flour
imports and international food assistance. The Ethiopian commercial wheat market is
dominated by Asian to the extent that wheat is priced and sold in Ethiopian birr. Even so,
surplus flour is not available on a regular basis, and quality is not consistent. Therefore wheat
farming and grain storage requirements of Ethiopia are issues of national food security.

Location of the project This project will be located in Oromia Regional National State Arsi
Zone. Oromia Regional National State is one of the ten ethnically based regional states of

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 BUSINESS PLAN OF WEAT FARM

Ethiopia, covering 286,612 square kilometers. It is bordered by the Somali Region to the
east; the Amhara Region, the Afar Region and the Benishangul-Gumuz Region to the north;
South Sudan, Gambela Region, and Southern Nations, Nationalities, and Peoples' Region to
the west; and Kenya to the south. The 2012 census reported Oromia Region population is
55,000,000; making it the largest state in population. Arsi is one of the zones of the Oromia
Region National State in Ethiopia. Arsi is bordered on the south by Bale, on the southwest by
the West Arsi Zone, on the northwest by East Shewa, on the north by the Afar Region and on
the east by West Hararghe. The administrative centre of this zone is in Asella; other towns in
this zone include Abomsa, Assasa, Bokoji, Sagure, Kersa, Dhera, Etaya, Arsi Robe, Huruta
etc. Asella is the capital of Arsi zone located Tiyo woreda of Arsi zone in Oromia Regional
National State in Ethiopia. This town is highly populated and surrounded by productive
producer of crops woredas like hetosa, munessa, digalu tijo and near to bale zone.. The lion
share goes to Wheat and Barley crops.

Arsi is one of the zones of the Oromia Region National State in Ethiopia. Arsi is bordered on
the south by Bale, on the southwest by the West Arsi Zone, on the northwest by East Shewa,
on the north by the Afar Region and on the east by West Hararghe. The administrative centre
of this zone is in Asella; other towns in this zone include Abomsa, Assasa, Bokoji, Sagure,
Kersa, Dhera, Etaya, Arsi Robe, Huruta etc. Lode Hexosa woreda is located in the Arsi zone
in Oromia Regional National State in Ethiopia. The center of the woreda is Kersa town. This
woreda is known by the production of different crops. The lion share goes to Wheat and
Barley crops.

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 BUSINESS PLAN OF WEAT FARM

Business objectives

After careful consideration of the current state of the market and the underlying
opportunities, Stoke Wheat Farm has enumerated these objectives:

 To invest in the cultivation of the exact variety of wheat required in high demand in
Ethiopia and surrounding countries.
 Establishing a strong and growing relationship with the customers as well as bulk
purchasers.
 Attaining a considerable net profit that will grow geometrically each year from the
first year of operation.
 Providing top-quality healthy products that will be fit for human consumption
through the use of the best farm practices for wheat.
 Investing in our employees to ensure that they provide efficient sales services and
customer care.

Our Mission and Vision

 Our Vision is to become one of the leading commercial wheat processing and packing
brand not only just in the Ethiopia but also on the global stage.
 ZELELA Wheat Farms is a world class wheat farm that is in business to cultivate
organic, non – organic and processed wheat for both the Ethiopia and the international
market. We want our well – packaged wheat, to flood every nooks and crannies of the
Ethiopia and other countries of the world.

3. FUND REQUIREMENT
In setting up any business, the amount or cost will depend on the approach and scale you
want to undertake. If you intend to start a world – class commercial farm, then you would
need a good amount of capital as you would need to ensure that your employees are well
taken care of, and that your farm is conducive enough for workers to be creative and
productive.

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 BUSINESS PLAN OF WEAT FARM

This means that the start-up can either be low or high depending on your goals, vision and
aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any
difference in prices would be minimal and can be overlooked. As for the detailed cost
analysis for starting a wheat farm; it might differ in other countries due to the value of their
money.

The business plan is prepared to obtain funds amounting 1.300,000 birr. The supplementary
financing is required to being work on site preparation, equipment purchases and to cover
expense in the first year of operations. Additional financing has already been secured in the
form of:-

 Birr 6,000,000 birr Government Grants or Loans

 Birr 700,000 birr from personal saving &closed relatives

Below are some of the basic areas we will spend our start – up capital in setting up our
wheat farm;

 The total fee for incorporating the business in Ethiopia – 50,000 birr
 The total cost of payment for insurance policy covers (general liability, workers’
compensation and property casualty) at a total premium – 50,000 birr
 The amount needed to lease a farm land – 300,000 birr
 The amount required for preparing the farm land – 50,000 birr
 The cost for acquiring the required working tools and equipment/machines/fencing et al
– 250,000 birr
 The amount required to purchase the first set of wheat, seedlings et al – 100,000 birr
 The amount required to set up a standard wheat processing plant within the farm facility
– 100,000 birr
 Operational cost for the first 3 months (salaries of employees, payments of bills et al)
– 200,000 birr
 The amount required for payment of workers for a period of 3 months – 200,000 birr

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 BUSINESS PLAN OF WEAT FARM

 Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – 50,000
birr

Going by the report from the detailed research and feasibility studies conducted, we will need
an average of 1,300,000 birr to start a standard wheat farm with a wheat, barley and sorghum
processing plant business in the Ethiopia. The remaining 50,000 birr using as an emergency
exit. These are some of the equipment that we would need to fully launch our wheat farm,

 Tractor
 Soil cultivator
 Plough
 Harrow (e.g. Spike harrow, Drag harrow, Disk harrow)
 Stone/Rock/Debris removal implement (e.g. DE stoner, Rock windrower/rock rake, Stone
picker/picker)
 Broadcast seeder (alternatively: broadcast spreader, fertilizer spreader, or Air seeder)
 Planter
 Plastic mulch layer
 Trans planter
 Sprinkler system irrigation
 Mower
 Sickle
 Wheel Barrow
 Truck

Basically, wheat farms do not require an office space, most people that run commercial farms
operate directly from their farms. But we have decided to open a small liaison office; a place
where administrative jobs will be carried out on behalf of the business.

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 BUSINESS PLAN OF WEAT FARM

4. PRODUCT OR SERVICES
ZELELA Wheat Farms, is a world class commercial farm that is committed to cultivating
organic and non – organic wheat for both the Ethiopia market and the global market. We are
in business to produce both food and raw materials for people and industries in commercial
quantities. We will also ensure that we operate a standard wheat processing and packaging
plant as part of our complimentary business.

These are the areas we will concentrate on in our wheat If need arises we will definitely
cultivate related crops;

 Growing hard red wheat

 Growing soft red wheat
 Growing white wheat
 Growing Durum wheat

 Wheat farm business produces and sells two main products: wheat grain and
wheat flour.

1. Wheat grain: Wheat grain is the raw material that is harvested from your wheat farm. It
can be sold to a variety of customers, including food manufacturers, livestock feed
producers, and individuals who grind their own flour. We may choose to sell your wheat
grain in bulk or packaged form, depending on our target market. You could also
differentiate your product by offering organic or non-GMO wheat grain.

2. Wheat flour: Wheat flour is a value-added product that is produced by milling wheat
grain into flour. We can sell wheat flour to bakeries, restaurants, and individuals who use
flour in their home cooking. We could offer different types of wheat flour, such as all-
purpose, whole wheat, or specialty flours, to cater to different customer needs. We could
also differentiate your product by offering high-quality, freshly milled flour or by using
unique wheat varieties.

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 BUSINESS PLAN OF WEAT FARM

 The key components or raw materials for a wheat farm business primarily
include the following

 Wheat seeds: The primary raw material for a wheat farm business is wheat seeds,
which are used to grow wheat crops. There are different varieties of wheat seeds
available, and the choice of seeds will depend on factors such as climate, soil type,
and intended use.
 Fertilizers and soil amendments: To ensure healthy growth and yield of the wheat
crops, fertilizers and soil amendments such as nitrogen, phosphorus, and potassium,
are often used. These nutrients are essential for plant growth and development.
 Pesticides and herbicides: To protect the wheat crop from pests and weeds, pesticides
and herbicides are often used. These chemicals can help control pests and weeds that
can damage the crops, but it's important to use them responsibly, following safety
guidelines and regulations.
 Equipment and machinery: Farming equipment and machinery are essential
components of a wheat farm business. Tractors, plows, planters, harvesters, and grain
storage bins are some of the common equipment and machinery used in wheat
farming.
 Labor: Wheat farming requires a significant amount of labor, from planting and
harvesting to maintaining the crops and operating machinery. The size of the labor
force will depend on the size of the farm and the level of mechanization.
 Water: Adequate water supply is critical for wheat farming, and irrigation systems
may be necessary in areas with limited rainfall.
 Land: Land is a key component for a wheat farm business, as it provides the space to
grow the crops. The choice of land will depend on factors such as soil type,
availability of water, and climate conditions.
 Transportation and logistics: Once the wheat crops are harvested, they need to be
transported to buyers or processing facilities. Transportation and logistics are
therefore an important component of the business, and may include trucks, railcars, or
ships.

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 BUSINESS PLAN OF WEAT FARM

 Energy: Energy is needed to operate machinery and equipment, as well as to power

irrigation systems and storage facilities. Renewable energy sources such as solar or
wind could also be used to reduce energy costs and environmental impact.

 Packaging and labeling: If the wheat farm business sells value-added products such as
wheat flour or baked goods, packaging and labeling materials will also be necessary.
These may include bags, labels, and packaging equipment.

5. Plan

5.1 Marketing (plan) Feasibility

 Product or service description

Our wheat flour product is unique for several reasons. Firstly, we use only high-quality,
locally sourced wheat grains that are carefully selected for their protein content and milling
properties. This ensures that our flour has a consistent quality and performance.

Secondly, we use a unique milling process that preserves the natural flavor and nutrients of
the wheat grains. Unlike traditional milling methods that strip away the bran and germ, our
milling process retains these important components, resulting in a flour that is richer in fiber
and nutrients.

Thirdly, we offer a range of specialty flours that cater to specific dietary needs and
preferences. Our product line includes whole wheat flour, gluten-free flour, and organic
flour, among others. This allows us to serve a wider range of customers and meet their
specific needs.

Lastly, we prioritize sustainability and environmental responsibility in our operations. We

use renewable energy sources such as solar power to reduce our carbon footprint, and we
work with local farmers to promote sustainable farming practices that protect the
environment and preserve soil health.

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 BUSINESS PLAN OF WEAT FARM

Overall, our wheat flour product stands out in the market for its quality, flavor, and
nutritional value, as well as our commitment to sustainability and local sourcing.

Table could be used to compare competitors in the wheat flour market:

Competitor Business Size Product Features Market Share Price (per Kg)

Yirgalem Large High protein 55

content, 30%
Integrated
bleached,
Wheat
enriched
Farm

Ethiopian Medium Unbleached, 20% 60

Wheat whole wheat,

organic
Initiative

Habru Small Gluten-free, 10% 50

Wheat specialty flours

Farm

Ethio-Wheat Large High gluten 25% 60

Farm content, bread

flour
PLC

Agro Prom Medium Organic, stone 15% 65

Wheat ground, artisanal

Farm

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 BUSINESS PLAN OF WEAT FARM

 Our competitive advantage

The truth is that it is easier to find entrepreneurs flocking towards an industry that is known to
generate consistent income which is why there are more commercial farmers in the Ethiopia and
of course in most parts of the world.

As a matter of fact, entrepreneurs are encouraged by government to embrace commercial

farming. This is because part of the success of any nation is her ability to cultivate her own food
and also export foods to other nations of the world.

ZELELA Wheat Farms. Is fully aware that there are competitions when it comes to selling
commercial farm produce including wheat all over the globe, which is why we decided to carry
out thorough research so as to know how to take advantage of the available market in the
Ethiopia and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us
competitive advantage in the marketplace; some of the factors are effective and reliable wheat
farming processes that can help us sell our produce at competitive prices, good network and
excellent relationship management.

Another competitive advantage that we are bringing to the industry is that we have designed our
business in such a way that we will operate an all – round standard commercial wheat farm that
will also include wheat processing plant. With this, we will be able to take advantage of all the
available opportunities within the industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the
best within our category in the industry, meaning that they will be more than willing to build the
business with us and help deliver our set goals.

 Location

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 BUSINESS PLAN OF WEAT FARM

The success of growing wheat is closely linked to the location therefore; a significant amount of
time needs to be spent in the evaluation and selection of the site. When evaluating a site for
growing wheat, it is important to consider the climates, topography and soil properties. The
climate in both summer and winter has significant influence on the wheat. Wheat are very
sensitive to extreme temperatures in the winter. When considering soil as part of selection it is
important that the soil be well drained. A naturally well drained soil is ideal. However, in the
case where drainage is not ideal and other site factors are favorable the soil drainage can be
improved with the installation of tile drainage (watering the land by using pipeline).Our
company will be situated at arsi, Oromia, Ethiopia.

Soil of arsi is also favorable for growing of wheat. In addition the place has easy accessibility of
facilities (light, water, transportation, telephone, etc. are easily accessible in the area).

The company will purchase land by lease from land administration of the area. And, will have
our own building that serves as office of administration, ware house, in order to store materials
and equipment, packaging place, laboratory and finally home for human resource, such as labor
workers, professionals, guards etc.

 Marketing area

To reach our target market all over Ethiopia, we develop a multi-channel marketing strategy
that includes both traditional and digital advertising. We plan to advertise through local
newspapers and radio stations in Bahir Dar, Adama, and Addis Ababa to reach a broad
audience, while also using social media and targeted digital ads to reach more specific
demographics.

To further increase brand awareness and showcase our products, we decide to participate in
local fashion shows and events in these cities. This allows us to introduce your products to
potential customers and network with other businesses in the area.

To distribute our products, we establish relationships with local retailers and distributors who
can help you reach customers all over Ethiopia. This includes partnering with local boutique
stores and fashion retailers to feature our products on their racks, as well as working with
online marketplaces to reach customers in more remote areas.

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 BUSINESS PLAN OF WEAT FARM

In addition to advertising and distribution, we also prioritize customer service and

engagement. We offer free shipping and returns for online orders and encourage customers to
provide feedback and reviews of your products. We also use social media to showcase
customer photos and testimonials, and offer discounts and promotions to encourage repeat
business.

Overall, our marketing area covers Bahir Dar, Adama, Addis Ababa, and all over Ethiopia.
By developing a targeted marketing strategy that reaches our specific target market and
partnering with local retailers and distributors, we can effectively expand your business and
reach new customers in these areas. Additionally, by prioritizing customer service and
engagement, we can build a loyal customer base and grow our business over time.

 Main customers

The main customers of a wheat are typically businesses or organizations that require wheat as
an input for their own products or services. Here are some wheat farm customers:

1. Food manufacturers: Wheat is a key ingredient in many food products, including bread,
pasta, and baked goods. Food manufacturers such as bakeries, pasta makers, and cereal
producers are major customers of wheat farms.

2. Animal feed producers: Wheat is also used as a feed for livestock, including cattle, pigs,
and poultry. Animal feed producers are another important customer group for wheat
farms.

3. Exporters: Wheat is a major crop that is traded on the international market. Exporters may
purchase wheat from farms to sell to foreign buyers, such as other governments or food
manufacturers in other countries.

4. Flour mills: Wheat is milled into flour, which is then used to produce a variety of food
products. Flour mills are another important customer group for wheat farms.

5. Government agencies: Some government agencies may purchase wheat from farms for use
in food aid programs or other humanitarian efforts.

 Market share
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 BUSINESS PLAN OF WEAT FARM

A company has 2.4million in sales and the total sales of all companies within the market is
100 million, the company's market share would be 2.4 %.

 Sales Forecast

We conducted a thorough market survey and feasibility studies and we were able to discover that
the sales generated by a commercial farm depends on the size of the farm and the nature of the
commercial farm.

We have perfected our sales and marketing strategies and we are quite optimistic that we will
meet or even surpass our set sales target of generating enough income/profits from the first year
of operation and build the business from survival to sustainability.

We have been able to critically examine the agriculture industry cum wheat farm line of
business, we have analyzed our chances in the industry and we have been able to come up with
the following sales forecast.

 First 6 month -birr 2,400,000 birr

 Second 6 months -: 2,400,000 birr
 Total Fiscal Year-: 4,800,000 birr
 Marketing Strategy and Sales Strategy

We are quite aware that the reason why some wheat farms hardly make good profits is their
inability to sell off their wheat as at when due. In view of that, we decided to set up a standard
wheat processing plant to help us maximize profits.

Our sales and marketing team will be recruited based on their vast experience in the industry and
they will be trained on a regular basis so as to be well equipped to meet their targets and the
overall goal of the organization. We want to build a standard and world – class wheat farm that
will leverage on word of mouth advertisement from our satisfied clients (both individuals and
businesses).

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Over and above, we have perfected our sale and marketing strategies first by networking with
agriculture merchants and companies that rely on wheat, barley and sorghum as their major raw
materials. In summary, ZELELA Wheat Farms, will adopt the following strategies in marketing
our wheat farm produce;

 Introduce our business by sending introductory letters alongside our brochure to

stakeholders in the agricultural industry and production companies that rely on the supply
of wheat, barley and sorghum as raw materials.
 Advertise our business in agriculture and food related magazines and websites
 List our wheat farms on yellow pages ads
 Attend related agriculture and food expos, seminars, and business fairs
 Leverage on the internet to promote our business
 Engage in direct marketing
 Encourage the use of Word of mouth marketing (referrals)

 Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating
from must be ready and willing to utilize every available means to advertise and promote the
business. We intend growing our business which is why we have perfected plans to build our
brand via every available means.

Below are the platforms we will leverage on to boost our wheat farm, and promote and advertise
our business;

 Place adverts on both print (newspapers and magazines) and electronic media platforms
 Sponsor relevant community based events/programs
 Leverage on the internet and social media platforms like; Instagram, Facebook, twitter,
YouTube, Google + et al to promote our business
 Install our billboards in strategic locations all around Des Moines – Iowa
 Engage in roadshows from time to time in targeted neighborhoods
 Distribute our fliers and handbills in target areas

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 BUSINESS PLAN OF WEAT FARM

 Contact production companies that rely on the supply of wheat, barley and sorghum as
raw materials, and agricultural produce merchants in our target areas by calling them up
and informing them of BSM Wheat Farms, and the farm produce we sell
 List our wheat farms in local directories/yellow pages
 Advertise our wheat farms in our official website and employ strategies that will help us
pull traffic to the site.
 Ensure that all our staff members wear our branded shirts and all our vehicles and trucks
are well branded with our company logo et al.

  Pricing Strategy
Some of the factors that will help you sell your wheat at the right price that will guarantee that
you make profits is dependent on your strategy while some of the factors are beyond your
control. For example, if the climatic condition is unfavorable and if there are natural disasters in
the location where you have your wheat farm, then it will directly affect the harvest of wheat and
also the prices of your farm produce.

Over and above, if you want to get the right pricing for your farm produce, then you should
ensure that you choose a good location for your commercial farm, choose a good breed/seeds
that will guarantee bountiful harvest, cut the cost of running your farm to the barest minimum
and of course try as much as possible to attract buyers to your farm as against taking your farm
produce to the market to source for buyers; with this, you would have successfully eliminated the
cost of transporting your harvest to the market and other logistics.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of
customers for our wheat is to sell them at competitive prices hence we will do all we can to
ensure that the prices of our wheat are going to be what other wheat farmers would look towards
beating.

One thing is certain, the nature of commercial farming makes it possible for farmers to place
prices for their farm produces based on their discretion without following the benchmark in the
industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell
off your harvested wheat the better for your business.

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 Payment Options

The payment policy adopted by ZELELA Wheat Farms, Inc. is all inclusive because we are quite
aware that different customers prefer different payment options as it suits them but at the same
time, we will ensure that we abide by the financial rules and regulation of the Ethiopia.

Here are the payment options that ZELELA Wheat Farms, Inc. will make available to her clients;

 Payment via bank transfer

 Payment with cash
 Payment via online bank transfer
 Payment via check
 Payment via Point of Sale Machines (POS Machines)
 Payment via mobile money transfer
 Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make
payment for farm produce purchases without any stress on their part. Our bank account numbers
will be made available on our website and promotional material too.

5.2 Technical & Operational Feasibility

 Machines and tools

1. Tractor: A tractor is commonly used on a wheat farm for tasks such as plowing, planting,
and harvesting. You could purchase a tractor from a manufacturer such as John Deere, or
from a used equipment dealer or auction. A John Deere 6M Series tractor with 110-195
horsepower could cost around 4,240,000 birr & we less by 70,000 birr. The production
capacity of a tractor will depend on the specific tasks it is used for, but it could be around
10-15 acres per day. The size of a tractor will depend on the specific model, but it could

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be around 15-20 feet long by 6-8 feet wide. The power usage of a tractor can range from
40 to 200 horsepower, depending on the horsepower of the engine and the tasks it is
performing.

2. Seed drill: A seed drill is a machine used to plant wheat seeds. You could purchase a seed
drill from a manufacturer such as Great Plains or Case IH, or from a used equipment
dealer. A Great Plains 3P806NT drill with an 8-foot working width could cost around
1,060,000 birr & we it less by 30,000. The production capacity of a seed drill will
depend on the specific model and the planting density, but it could be around 10-15 acres
per day. The size of a seed drill will depend on the specific model, but it could be around
12-15 feet long by 6-8 feet wide. The power usage of a seed drill will depend on the size
of the engine and the specific model, but it could be around 40-60 horsepower.

3. Combine harvester: A combine harvester is a machine used to harvest wheat. You could
purchase a combine harvester from a manufacturer such as Claas or New Holland, or
from a used equipment dealer. a John Deere S-Series combine with a 300-bushel grain
tank could cost around 18,550,000 birr & we less by 70,000 birr. The production
capacity of a combine harvester will depend on the specific model and the crop
conditions, but it could be around 100-200 acres per day. The size of a combine harvester
will depend on the specific model, but it could be around 30-40 feet long by 10-15 feet
wide. The power usage of a combine harvester will depend on the size of the engine and
the specific model, but it could be around 350-500 horsepower.

4. Grain dryer: A grain dryer is used to dry the harvested wheat before it is stored or sold.
You could purchase a grain dryer from a manufacturer such as GSI or Farm Fans, or from
a used equipment dealer. A GSI 1112 dryer with a 1,100 bushel capacity could cost
around 1,325,000 birr & we less by 20,0000. The production capacity of a grain dryer
will depend on the specific model and the moisture content of the grain, but it could be
around 100-200 bushels per hour. The size of a grain dryer will depend on the specific
model, but it could be around 20-30 feet long by 10-15 feet wide. The power usage of a
grain dryer will depend on the size of the fan and the specific model, but it could be
around 10-20 horsepower

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 BUSINESS PLAN OF WEAT FARM

5. Grain silo: A grain silo is used to store the harvested wheat. You could purchase a grain
silo from a manufacturer such as Suk up or Brock, or from a used equipment dealer. A
Suk up 24-foot diameter grain bin with a capacity of 15,000 bushels could cost around
1,590,000 & we less by 10,000 birr. The production capacity of a grain silo will depend
on the specific model and the amount of grain being stored, but it could be around 500-
1,000 bushels per hour. The size of a grain silo will depend on the specific model, but it
could be around 30-40 feet tall by 20-30 feet wide. The power usage of a grain silo will
depend on the size of the fan and the specific model, but it could be around 5-10
horsepower.

 Input materials & availability, packaging, transport, &

working area (land) with their cost source.
 Seed: Wheat seed is the primary input material for planting a wheat crop. It is typically
sold by seed dealers and agricultural supply stores. The availability of seed will depend
on the specific variety and the demand in the local market. Wheat seed is usually
packaged in bags or bulk containers, and can be transported using trucks or other farm
equipment. The cost of wheat seed can vary depending on the variety and the supplier,
but it typically ranges from 1060 birr per bag.

 Fertilizer: Fertilizer is used to provide essential nutrients to the wheat crop. It is typically
sold by agricultural supply stores and can be sourced from local suppliers or national
brands. Fertilizer is usually packaged in bags or bulk containers, and can be transported
using trucks or other farm equipment. The cost of fertilizer can vary depending on the
specific type and the supplier, but it typically ranges from 15900 per ton.
 Pesticides and herbicides: Pesticides and herbicides are used to control pests and weeds
that can damage the wheat crop. They are typically sold by agricultural supply stores and
can be sourced from local suppliers or national brands. Pesticides and herbicides are

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 BUSINESS PLAN OF WEAT FARM

usually packaged in bottles or bags, and can be transported using trucks or other farm
equipment. The cost of pesticides and herbicides can vary depending on the specific type
and the supplier, but it typically ranges from 1060 birr per acre.
 Fuel: Fuel is used to power the farm equipment, such as tractors and combines, needed
for planting, harvesting, and processing the wheat crop. Fuel can be sourced from local
gas stations or fuel distributors. It is usually transported using trucks or other farm
equipment. The cost of fuel can vary depending on the specific type and the supplier, but
it typically ranges from 1080 birr per gallon.
 Packaging materials: Once the wheat crop is harvested, it needs to be packaged for
storage or transport. Packaging materials can include bags, containers, or bulk storage
systems. These materials can be sourced from agricultural supply stores or online
retailers. The cost of packaging materials can vary depending on the specific type and the
supplier, but it typically ranges from 5.3 birr per pound of wheat.
 Land: Land is the working area for a wheat farm. It is typically purchased or leased from
landowners or other farmers. The cost of land can vary depending on the location, size,
and quality of the land,.

 Quality control procedures

Quality control procedures are used to ensure that the wheat produced by the farm meets certain
standards of quality, safety, and consistency. Some common quality control procedures used on a
wheat farm include:

1. Soil testing: Soil testing can be used to determine the nutrient levels and pH of the soil, which
can affect the growth and quality of the wheat crop. Soil testing can also detect any contaminants
that may be present in the soil, such as heavy metals or pesticides.

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 BUSINESS PLAN OF WEAT FARM

2. Seed selection: Choosing high-quality wheat seed can help ensure that the crop is healthy and
productive. Wheat seed should be tested for purity and germination rate to ensure that it will
grow well and produce a high-quality crop.

3. Pest and disease management: Regular monitoring and control of pests and diseases can
help prevent damage to the wheat crop and ensure that the wheat is safe for consumption. This
can include using integrated pest management strategies, such as crop rotation and natural
predators, as well as applying pesticides and fungicides as needed.

4. Harvesting and storage: Proper harvesting and storage practices can help ensure that the
wheat is not damaged or contaminated during these processes. This can include using appropriate
equipment and techniques for harvesting and threshing the wheat, as well as using proper storage
facilities and techniques to prevent mold, pests, and moisture buildup.

5. Testing and analysis: Regular testing and analysis of the wheat crop can help ensure that it
meets certain standards of quality and safety. This can include testing for factors such as protein
content, moisture content, and mycotoxin levels. Tests can be performed by on-site or off-site
laboratories.

 Maintenance & repairs

Maintenance and repairs are essential for keeping the machines and equipment on a wheat farm
in good working condition. Regular maintenance can help prevent breakdowns and extend the
life of the equipment, while prompt repairs can help minimize downtime and prevent further
damage. Here are some key considerations for maintenance and repairs on a wheat farm:

1. Maintenance schedule: Establishing a regular maintenance schedule for each piece of

equipment can help ensure that it is kept in good working condition. This can include tasks such
as oil changes, filter replacements, and lubrication of moving parts. The maintenance schedule
should be based on the recommendations of the manufacturer and the specific use of the
equipment.

2. Inspection and monitoring: Regular inspection and monitoring of the equipment can help
detect any potential issues before they become major problems. This can include checking for

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signs of wear and tear, leaks, and unusual noises or vibrations. Inspections should be conducted
before and after each use, as well as periodically throughout the season.

3. Repair procedures: When repairs are needed, it's important to follow the appropriate repair
procedures for each piece of equipment. This can include replacing damaged parts, cleaning and
lubricating components, and adjusting settings or calibration. Repairs should be performed by
trained and experienced technicians using the appropriate tools and equipment.

4. Spare parts inventory: Maintaining an inventory of spare parts can help ensure that repairs
can be made quickly and efficiently when needed. Spare parts should be kept on hand for each
piece of equipment, and should include common wear and tear items such as filters, belts, and
hoses, as well as less common replacement parts.

5. Record keeping: Keeping detailed records of maintenance and repairs can help track the
history of each piece of equipment and identify any recurring issues. This can also be useful for
scheduling future maintenance and repairs.

6. Training and education: Providing training and education to farm workers on proper
maintenance and repair procedures can help ensure that equipment is kept in good working
condition and repairs are made promptly. This can include training on basic maintenance tasks,
such as oil changes and filter replacements, as well as more complex repairs.

7. Weather-related maintenance: In areas where wheat farms are exposed to harsh weather
conditions, it is important to conduct maintenance to ensure that the equipment can withstand
these conditions. This can include tasks such as cleaning equipment after use, storing equipment
in a dry place, and checking for rust or corrosion.

Overall, maintenance and repairs are essential for keeping the machines and equipment on a
wheat farm in good working condition.

 Labor skill & availability

Labor skill and availability are crucial factors in the success and productivity of a wheat
farm. Here are some key considerations for labor skill and availability on a wheat farm:

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1. Labor skill: It's important to ensure that the farm workers have the necessary skills and
experience to operate the machinery and perform the tasks required on a wheat farm. This
can include skills such as planting, harvesting, irrigation, and equipment maintenance.
Providing training and education to workers can also help improve their skills and ensure
that they are able to perform their tasks effectively.

2. Labor availability: Availability of labor can vary depending on the location of the farm and
the time of year. Some areas may have a large pool of available workers, while others
may face labor shortages.

3. Labor costs: Labor costs can be a significant expense for a wheat farm. It's important to
ensure that workers are paid a fair wage for their work, while also managing costs to
ensure the profitability of the farm.

4. Labor regulations: There may be regulations and laws in place related to labor practices,
such as minimum wage laws, overtime regulations, and workplace safety regulations.

5. Labor management: Effective labor management can help ensure that workers are
organized and working efficiently. This can include tasks such as scheduling, delegating
tasks, and providing feedback and support to workers. It's also important to foster a
positive work environment, with clear communication and a culture of teamwork and
respect.

6. Seasonal labor: Many wheat farms rely on seasonal labor, particularly during planting and
harvesting seasons. It's important to plan ahead and ensure that there is enough labor
available during these peak seasons. This may involve hiring additional workers or using
temporary labor agencies.

7. Mechanization: Advances in agricultural technology have led to the increased use of

mechanization on wheat farms, which can reduce the need for manual labor. However,
this also means that workers need to have the skills and knowledge to operate and
maintain these machines.

5.3 Organizational Plan:

5.3.1 Chief Operating Officer:
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 Increases management’s effectiveness by recruiting, selecting, orienting, training,

coaching, counseling, and disciplining managers; communicating values, strategies, and
objectives; assigning accountabilities; planning, monitoring, and appraising job results;
developing incentives; developing a climate for offering information and opinions;
providing educational opportunities

 Creates, communicates, and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy

 Responsible for fixing prices and signing business deals

 Responsible for providing direction for the business

 Responsible for signing checks and documents on behalf of the company

 Evaluates the success of the organization

5.3.2 General Farm Manager

 Responsible for the planning, management and coordinating all farm activities across the
various sections on behalf of the organization

 Supervises other section managers (wheat cultivation manager and wheat, processing and
packaging manager)

 Ensures compliance during project executions

 Provides advice on the management of farming activities across all section

 Responsible for carrying out risk assessment

 Uses IT systems and software to keep track of people and progress of the growth of crops
(wheat)

 Responsible for overseeing the accounting, costing and sale of farm produce after harvest

 Represents the organization’s interest at various stakeholders’ meetings

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 BUSINESS PLAN OF WEAT FARM

 Ensures that farming goals and desired result are achieved, the most efficient resources
(manpower, equipment, tools and chemicals et al) are utilized and different interests
involved are satisfied. Responsible for preparing financial reports, budgets, and financial
statements for the organization

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization

 Handles all financial transactions for the company

 Defines job positions for recruitment and managing interviewing process

 Carries out staff induction for new team members

 Responsible for training, evaluation and assessment of employees

 Oversees the smooth running of the daily farming activities across the various farming
sections.

5.3.3 .Administrator/Accountant

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization

 Defines job positions for recruitment and managing interviewing process

 Carries out staff induction for new team members

 Responsible for training, evaluation and assessment of employees

 Responsible for preparing financial reports, budgets, and financial statements for the
organization

 Responsible for financial forecasting and risks analysis

 Responsible for developing and managing financial systems and policies

 Responsible for administering payrolls

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 Ensures compliance with taxation legislation

 Handles all financial transactions for the farm

 Serves as an internal auditor for the farm

5.3.4 .Wheat Cultivation Manager/Supervisor

 Responsible for managing the wheat, barley and sorghum cultivation section of the wheat
farm

 Supervises other workers within the department

 Works closely with the General Manager to achieve the organizations’ goals and
objectives

5.3.5 .Wheat Processing and Packaging Manager/Supervisor

 Responsible for managing the wheat, barley and sorghum processing and packaging
section of the commercial farm

 Supervises other workers within the department

 Works closely with the General Manager to achieve the organizations’ goals and
objectives

5.3.6 Sales and Marketing Officer

 Identifies, prioritizes, and reaches out to new partners, and business opportunities et al

 Identifies development opportunities; follows up on development leads and contacts;

participates in the structuring and financing of projects; assures the completion of
relevant projects

 Writes winning proposal documents, negotiate fees and rates in line with company policy

 Responsible for handling business research, market surveys and feasibility studies for
clients

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 BUSINESS PLAN OF WEAT FARM

 Responsible for supervising implementation, advocates for the customer’s needs, and
communicates with clients

 Develops, executes and evaluates new plans for increasing sales

 Documents all customer contact and information

 Represents the company in strategic meetings

 Helps to increase sales and growth for the farm

15.3.7 Field Workers/Contract Staff

 Responsible for preparing farm lands for wheat, cultivation

 Responsible for watering the crop

 Weeds or fertilizer and/or pest control application

 Handles farm implements and machines as instructed by the section manager/supervisor

 Assist in handling the harvest of wheat

 Carries out task in line with the stated job description

 Assists to transport working tools and equipment from the farm and back to the
designated store room

 Handles any other duties as assigned by the line manager

5.3.8 Client Service Executive/Front Desk Officer

 Welcomes guests and clients to the farm by greeting them in person or on the telephone;
answering or directing inquiries.

 Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the
client with a personalized customer service experience of the highest level

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 Through interaction with clients on the phone, uses every opportunity to build client’s
interest in the company’s products and services

 Manages administrative duties assigned by the manager in an effective and timely

manner

 Consistently stays abreast of any new information on the company’s products,

promotional campaigns etc. to ensure accurate and helpful information is supplied to
clients

 Receives parcels/documents for the organization

 Distributes mails in the organization

 Handles any other duties as assigned by the line mana

5.4Financial and economic Plan

5.4.1Financing Plan and Loan Requirement
A financing plan and secure a loan for your wheat farm:
Start-Up Capital

Startup Costs for Wheat Farm Estimated Cost/6 month

Land Lease 200,000 birr

Tractor and Equipment 250,000

Seeds and Fertilizers 150,000

Operational cost and preparation 200,000

of land

Labor Costs 200,000

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Legal and Permitting Fees& tax 100,000

Insurance 50,000

Marketing and Advertising 100,000

wheat processing Expenses 50,000

Total Estimated Startup Costs 1,300,000

Sources of Start-Up Capital.

Source of Start-Up Type of Funding Conditions Estimated Amount

Capital

Personal Savings Equity Financing No repayment required, 500,000 birr

but higher risk

Family and Friends Equity Financing Repayment terms and 300,000 birr
interest rates negotiable

Government Grants or Debt or Equity Repayment terms and 400,000 birr

Loans Financing interest rates 12%, may
require specific
qualifications

Venture Capital Equity Financing Repayment through 200,000 birr

percentage of profits or
ownership stake in the
company

TOTAL FUNDING 1,400,000 birr

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List fixed assets needed and their cost

Fixed Asset Quantity Estimated Cost

Farm Tools and Equipment Varies 70,000

Storage Shed 2 50,000

Irrigation System -- 50,000

Total cost 160,000

List of raw materials needed

Raw Material Dimension Quantity Unit Cost Total Cost

Wheat Seeds kg 1500 60 90,000

Fertilizers (urea) kg 133 3000 40,000

Pesticides and Liters 50 40 20,000

Herbicides

Fuel Liters 100 65 6500

Water Varies Varies Varies Varies

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 BUSINESS PLAN OF WEAT FARM

Soil Amendments Varies Varies Varies Varies

MONTHLY OVERHEADS

Overhead Items Cost per month

Labor Wages for farm workers 2,200 birr

Equipment maintenance and Maintenance and repair 10,000 birr

repairs costs for tractors,
combines, and irrigation
systems

Rent or land ownership costs Rent or ownership costs 33,333.3 birr

for farmland

Utilities (electricity and water) Electricity and water used 2,000 birr
on the farm

Insurance Crop insurance, liability 8,333 birr

insurance, and other
insurance costs

Taxes Property taxes, income 8,333 birr

taxes, and other taxes

Total Overheads 64,199 birr

5.4.2 Projected sale

A wheat farm produces 40,000 kilograms of wheat per 6 months, and the current market
price for wheat is 60 birr per kilogram, the projected sales for the year would be:

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Projected Sales = Quantity x Price per unit

Projected Sales = 40,000 kilograms x 60 birr/kilogram
Projected Sales = 2,400,000 birr per 6 months
Projected Seles=4,800,000 birr per years

5.4.3 Projected Income and Expenditure Statement

Income/year
Item Amount
Wheat Sales 4,800,000
Total Income 4,800,000
Expenditure/year
Tractor and Equipment 500,000
Labor Costs 400,000
Wheat processing 100,000
Marketing and Advertising 200,000
Rent or Land Ownership Costs 400,000
Seeds and Fertilizers 300,000
Operational cost and preparation of land 400,000

|Insurance 100,000
Taxes& legal permitting fees 200,000
Total Expenditure 2,600,000
Net Income (Revenue - Expenses) (4,800,000- 2,600,000)= 2,200,000 per year

5.4.4 Projected break-even point

Based on the total estimated startup costs for the wheat farm are 1,300,000 birr. We can break
down the costs into fixed and variable costs as follows:

Fixed Costs = (Land Lease + Tractor and Equipment + Legal and Permitting Fees & Tax +
Insurance)

Fixed Costs = 200,000 birr + 250,000 birr + 100,000 birr +100 birr

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 BUSINESS PLAN OF WEAT FARM

Fixed Costs = 650,000 birr

Variable Costs = (Seeds and Fertilizers + Operational Cost and Preparation of Land + Labor
Costs + Insurance + Wheat Processing Expenses+ Marketing and Advertising)

Variable Costs = 150,000 birr + 200,000 birr + 200,000 birr +100,000 + 50,000 birr + 50,000
birr

Variable Costs = 650,000 birr

Total Cost per Unit = Fixed Cost per Unit + Variable Cost per Unit

Total Cost per Unit = (Fixed Costs / Units Produced) + (Variable Costs / Units Produced)

Total Cost per Unit = (650,000 birr / 40,000 kg) + (650,000 birr / 40,000 kg)

Total Cost per Unit = 16.25 birr/kg + 16.25 birr/kg

Total Cost per Unit = 32.5 birr/kg

Sales Price = 60 birr/kg

To calculate the break-even point, we can use the formula:

Break-even Point = Fixed Costs / (Sales Price per Unit – Variable Cost per Unit)

Break-even Point = 650,000 birr / (60 birr/kg – 32.5 birr/kg)

Break-even Point = 22,000 kg

Therefore, the break-even point for this wheat farm would be 22,000 kilograms of wheat
produced and sold. This means that the farm needs to produce and sell at least 22,000 kilograms
of wheat to cover its total costs and break even. Sales beyond this point would generate profit
for our farm.

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5.4.5 Projected Cash Flows

Interest Expense = Loan Amount x Interest Rate

Interest Expense = 600,000 birr x 0.12

Interest Expense = 72,000 birr per year

- The wheat farm produces and sells 40,000 kilograms of wheat per year.

- The sales price of wheat is 60 birr per kilogram.

- Fixed costs are 650,000 birr per year Variable costs are 650,000 birr per year.

- The farm borrows 600,000 birr at a 12% interest rate for 5 years to cover land lease, operational
cost and preparation of land, and labor costs.

- The loan is repaid in equal monthly installments over 5 years.

Time Period Cash Inflows Cash Outflows Net Cash Flow

0 -1,300,000 -72,000 -1,372,000

1st Half-Year (6 2,400,000 1,314,000 1,086,000

months)
2nd Half-Year (6 2,400,000 1,314,000 1,086,000
months)
Total Year 1 4,800,000 2,628,000 2,172,000

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The wheat farm borrows 600,000 birr at a 12% interest rate for 5 years to cover land lease,
operational cost and preparation of land, and labor costs. The loan proceeds of 600,000 birr are
added to the initial cash balance of -1,300,000 birr, resulting in a net cash outflow of -1,372,000
birr. The farm incurs startup costs of 1,372,000 birr and makes the first monthly installment
payment of 14,552 birr (based on a 5-year loan term and equal monthly installments).

5 .4.6 Payback period

amount invested
Payback period for uniform flow = net cash inflow

1,300,000
= 2,400,000 =0.54 year

Payback period for uniform flow=0.54 year (6months+14 days)

5.4.7 Profitability index

Our discount rate is 10%, the present value of the cash inflows in each 6-month
period can be calculated as follows:

PV of cash inflows in the first 6 months = 2,400,000 / (1 + 0.10)^0.5

= 2,277,608.59

PV of cash inflows in the second 6 months = 2,400,000 / (1 + 0.10)^1

= 2,181,818.18

Total present value of cash inflows every 6 months = (2,277,608.59 +

2,181,818.18) = 4,459,426.77

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 BUSINESS PLAN OF WEAT FARM

Using the initial investment of 1,300,000, the profitability index can be calculated
every 6 months as:

PI = 4,459,426.77 / (1,300,000) = 3.43

Since the profitability index is positive, it suggests that the investment is profitable

6) Critical risks
Wheat farming has its own set of risks that need to be carefully considered and managed.

Here are some critical risks that our wheat farming business might face:

1. Weather and climate: Wheat is a crop that is heavily influenced by weather and climate

conditions. Drought, excessive rain, frost, and extreme temperatures can all impact crop

yields and quality.

2. Pest and disease management: Wheat is vulnerable to a variety of pests and diseases that

can significantly reduce crop yields and quality. Effective pest and disease management

is critical for the success of a wheat farming business.

3. Market conditions: The price of wheat can be volatile, and market conditions can change

quickly. A wheat farming business needs to be able to adapt to changes in demand and

price fluctuations to remain profitable.

4. Equipment breakdowns: Farm equipment is essential for a wheat farming business, and

breakdowns can lead to costly delays and downtime. Regular maintenance and repairs are

important to keep equipment operating at peak performance.

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 BUSINESS PLAN OF WEAT FARM

5. Labor shortages: Wheat farming requires a significant amount of labor, and a shortage of

workers can impact crop yields and profitability. This risk can be mitigated by

implementing effective labor management practices and investing in technology to

reduce labor requirements.

6. Environmental regulations: Wheat farming is subject to a variety of environmental

regulations, such as water usage restrictions and pesticide usage limits. Failure to comply

with these regulations can lead to fines and other penalties.

7) Exit strategy
Here are some possibilities:

1. Sale of the business: we could sell the business to a larger agricultural company or to an

individual interested in buying a farm.

2. Liquidation: we could sell off the assets of the business, such as land and equipment, and

wind down operations.

3. Merger or acquisition: we could merge our business with another wheat farming operation

or be acquired by a larger agricultural company.

4. Initial Public Offering (IPO): If the business is large enough and has a strong financial

track record, we could take the company public by issuing shares of stock to the general

public.

5. Franchising: If the wheat farming business has developed a successful model, we could

consider franchising the business to other farmers who want to replicate their success.

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 BUSINESS PLAN OF WEAT FARM

6. Transition to a different crop: we can change the farm to a different crop that may be more

profitable or better suited to our goals.

8) Appendix

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 BUSINESS PLAN OF WEAT FARM

Fig Wheat production in Ethiopia and estimated financial losses caused by wheat rust outbreaks during years
2010–2019.
Blue: FAO data; grey: wheat stem rust; yellow: wheat stripe rust; red/brown: wheat leaf rust. (A-D) show national
wheat production statistics of Ethiopia obtained from FAOSTAT [1]. (E-H) illustrate our estimates of the damage
caused by wheat rusts during years 2010–2019. (E) shows the estimated area infected with wheat rusts; (F) shows
the estimated fraction of yield lost due to wheat rusts; (G) shows the approximate total financial loss caused by
wheat rusts; and (H) shows the approximate loss relative to the national total financial value of wheat produce at
market price per year. As no FAO statistics were available for year 2019 at the time of this study (last checked on
the 20th of June 2020), we use the mean of years 2010–2018 as input for our estimates of yield losses in year 2019.

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BUSINESS PLAN OF WEAT FARM

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