Introductions

Farmers Group Teklemedin Tafese, Zakir Hashim mohammed, lamma Aba Mecha, Meseret
kiflu, Rida Aba Dura, Hamza Shafi and Sofiya Ali are being formed to engage in fruit-
vegetable farms activity.The partners are a combination of cutting edge, highest quality, and
efficient food technology and production. It is committed to the improvement of food taste and
nutritional quality

1.Executive Summary
My business plan is working describing and producing well local product and
service that have not been well distributed in our environment by group farmers
There are many local product and service that have potential to sell much more
than currently selling in the market , but there many reasons why those products
are selling in the market.
Misconceptions about local product and service
Lack of promotion
Lack of knowledge advantage and disadvantaged of local product and
service such as vegetables and fruit
Farmers Group is a Fruit-farm based partnership, located in oromia reagion,the specific place of
in East shoa zone awash melkasa walin guddina rural kebele around Ilike village.Whose mission
is to provide high quality, nutritional, and flavorful vegetables for consumption in both near and
remote areas of the Awash melkasa town and East shoa zone. Additionally the partners will
provide high quality planting materials for use nationwide. The idea behind the business is to
provide healthy and delicious vegetables and fruit to the public

2. Company Description
To describe our business in detail the company plan are widely depend on
- controlling market by local product and service
- Adapting and teaching people about advantage of local product and service
The company found in Awash Malkasa, East Shoa, Oromia.
The reason for specifications this place is that by considering fertility of soil ,great dam for
irrigation,and air condition for agriculture
So this place has many resources of local product and service such as carrot .potato.and other
fruit and vegetables.

2. Market and competition

2.1 Market
With government subsidies and intermediaries, farmers’ market has extended throughout the
year and the number of farmers who sell that product increased. So many local peoples of
East shoa are now getting their fresh food directly from the farmers who grew it. This makes for
acompete in a niche market and be first to the market with new products n excellent environment
for an industry participant such as Farmers Group that is willing tocompete in a niche market and
be first to the market with Farmers Group Will Concentrate on;
 Wholesale live vegetable markets nationwide that sell organic produce.
 Fresh farmers' markets.
 Fall and winter greens market.

2.2. Competitors.
Have the composting system in full production by early spring of the second year. Farmers
Group's main competitive advantages are:
 Efficient production utilizing greenhouses.
 Reduced overhead by fully realizing crop output potential and economies of scale
through joint costs.
2.3. Marketing Segmentation.
Farmers Group will initially market and supply its products to target customers. The partners is
further exploring marketing opportunities on the billboard, newspaper, Fana FM radio assela
Community Radio and magazines but gradually in the future, the partners would like to set up an
mass-media and website to market its products.
The partners will utilize aggressive advertising strategies to further market its products. These
strategies include the promotion of products through the sponsoring of spots on cooking shows
and exhibitions, and also engaging prominent chefs to help promote this fledgling industry.
2.4. Pricing Strategy
Farmers Group's pricing for vegetables will exceed the average market price for the following
reasons:
 Taste sampling at outlets will be encouraged.
 Unparalleled flavor superiority will addict greens tasters.
 Promotion of pesticide-free, fumigant-free cultural techniques of soil, environment,
ozone, and health-friendly production techniques.
2.5. Sales Strategy
As in the past, live cars will be delivered by contract carriers in special oxygenated tanks
carrying, 100 quintals vegetables or more, and will be continued as demanded.
The partner's average sales cycle from first contact to closing of the sale is approximately 3 to 12
days for fruit products. Farmers Group plans to shorten this cycle.
Furthermore, the partner’s estimates that from first contact to sale conclusion, the cycle for fresh
vegetables will run 3 days or less. Composted products sale cycle should run from 3 to 12 days.
Direct sales contacts of vegetable markets by delivery personnel, as well as cold calling by
telephone of potential market outlets, will also be employed.
In and out house sales: - different types of fruit such as potato, tomato, carrot, and white and red
onion are all potentially sales and need to be actively sold new product
Product and Service ;-The company describe many local product and service with good
price for different vegetables and fruit such as potato carrot mango orange tomato and other fresh
fruit special those we use daily in our food preparation.

Our company plan is working with unemployment people special by considering youth around it

Organizational plan

Farmers Group's management team is led by Ato Hashim, Business Manager, who has extensive
knowledge or experiences of the industry. The partnership management philosophy is based on
responsibility and mutual respect . Farmers Group has an environment and structure that
encourages productivity and respect for customers and fellow employees.

Overall, Farmers Group will have seven (7) personnel. The partners expect to employ one (who
has managerial ability) employee on a permanent basis. The Farmers Group team is organized
into three groups:

Management; - Management will be responsible for supervising and participating in the daily
operations of the facility. Management consists of:

 Ato Hashim, Business Manager, Full Time

 Rida, Management Trainee, Full Time
 Hamza, Management Trainee, Full Time

Daily Maintenance; - This group will consist of the rest of group partner fruit-farm employees.

Contract Personnel; - They will be utilized initially for the moving and setting up of the
vegetable farm, greenhouses, and the building of the fruit composting facility.

Business mission

Farmers Group is a Fruit-farm partnership, whose mission is to provide high quality, nutritional,
and flavorful vegetables for consumption in both near and remote regions of the Ethiopia.

1.7.3. Short-term objectives

 To be self-employed.
 Presence of job opportunity to local people in order to reduce unemployment rate.
  Pay tax to government in order to enhance economic growth of the country.
 To attract customer and achieve forcasted sales by advertising and promotion.

1.7.4. Long term objective

To be able to hire full time members of staff to form reliable and healthy team working in the
fruit farming, allowing the partners to meet on the day to day problems, to meet customers and
suppliers, making great promotions and supervising the general function of the fruit-farm in
order to form and expand the business further.

1.8. Key personnel

Manager: - Hashim Mohammed, who is a qualified BA Degree in management, and Practical

experience gained from variety of establishments.
Accountant: - Rida Aba Dura Level of qualification is accountant, and he has a good working
experience of local suppliers, professional adviser and book keeping experience. Then, he is
candidate of graduate by BA degree in Accounting Arsi university since 2012 E.C

Key to success

 Advertising our fruit-farm agriculture for all communities who have the potential power
to purchase the quality fresh products.
 Develop in smooth and attractive relationship with our customer by deliver the right
quality and quantity of vegetable to them.

. Project detail

4.1Project location and Facilities

A.The Project location.

The proposed project is located in Oromia regionEast shoa zone, Awash malkasa walin guddina
rural kebel around Ilike village, away from adamaTown15km and 115 km from the capital city
of Ethiopia,.

B. The project facilities

The operation will utilize:

  One small greenhouse, enclosing the vegetable area.
 Horticultural greenhouse.
 Filters, water treatment devices.
 Backwash facilities.
 Outdoor vegetable facilities.
 Business office building.

4.2. Project cost

4.2.1 Fixed cost

A. Land
The required land covering total area of Seven (7) hectors for the project and its
estimated total cost is birr 350, 000.

4.2.2 Operational cost

A. Man power requirement

The proposed project is estimated to create totally seven (7) all are permanent employment,
opportunity, ranging from manager, accountant and guards. The annual cost of labor in terms of
monthly and weekly salary and fringe benefit is estimated to be birr 127,750.

B. Farming livestock and tractor leasing.

Our fruit-farming are operated by the support of both traditional and advanced technology so we
will estimate the acquiring cost of birr 155,000.

B. Utilities and other operational cost.

The total cost for utilities of telephone calling and other operational cost such as raw material
required by farming activity facilitate modification, seed, organic herbicides/pesticides and
research and development are estimated to birr 22,250.

5. Financial Analysis

The total investment cost of the project is estimated at birr 700,000 out of which birr 400,000 is
capital (fixed) asset and birr 300,000 is working capital. Concerning about the source of finance,
birr 210,000 is covered by family loans and the remaining are financed by members contribution
from this 60% is covered by Hashim and the other five members cover the remaining by equal
chance, i.e birr 39200 for each.
The proposed project generate revenues will be estimated as follows for Year one (1) to Year
three (3) are birr 340,000, birr 350,000, birr 365, 000, annually respectively and commutative net
cash inflow of birr during the projected life of the project. The internal project before tax is 28%
and the net percent value of birr and break-even point of the project point at 3 year

5.1 Projected Cash Flow

The chart and table below contain the cash flow assumptions and projections for Farmers Group
during the first three years of plan implementation.

Year 1 Year 2 Year 3

Cash Received
Cash from Operations
Cash Sales Birr 340,000 Birr 350,000 Birr 365,000
Cash from Receivables Birr 121,250 Birr 124,000 Birr 127,500
Subtotal Cash from Operations Birr 461,250 Birr 474,000 Birr 492,500
Additional Cash Received
Sales Tax, VAT, Received Birr 0 Birr 0 Birr 0
Subtotal Cash Received Birr 461,250 Birr 474,000 Birr 492,500
Expenditures Year 1s Year 2 Year 3
Expenditures from Operations
Cash Spending Birr 117,500 Birr 111,000 Birr 111,000
Subtotal Spent on Operations Birr 117,500 Birr 111,000 Birr 111,000
Additional Cash Spent
Sales Tax, VAT, Paid Out Birr 0 Birr 0 Birr 0
Subtotal Cash Spent Birr 117,500 Birr 111,000 Birr 111,000
Net Cash Flow (birr 5,420) (birr 59,803) Birr 22,073
Cash Balance Birr 343,750 Birr 363,000 Birr 381,500

5.2 Projected Profit and Loss

As the profit and loss table shows, Farmers Group expects a steady growth in profitability over
the next few years.

Year 1 Year 2 Year 3

Sales Birr 340,000 Birr 350,000 Birr 365,000
Direct Cost of Sales Birr 87,750 Birr 84,100 Birr 82,850
Other Birr 160,000 Birr 152,000 Birr 150,000
Total Cost of Sales Birr 247,750 Birr 236,100 Birr 232,850
Gross Margin birr 92,250 Birr 113,900 Birr 132,150
Gross Margin % 27.13% 32.54% 36.20%
 Expenses
Payroll Birr 17,500 Birr 21,000 Birr 21,500
Sales and Marketing and Other Birr 11,400 Birr 11,100 Birr 16,550
Expenses
Depreciation Birr1000 Birr 1000 Birr 1000
Payroll Taxes Birr 0 Birr 0 Birr 0
Other Birr100 Birr175 Birr 150
Total Operating Expenses Birr 30,000 Birr 33,275 Birr 39,200
Profit Before Interest and Taxes Birr 62,250 Birr 80,625 Birr92,950

Interest Expense Birr 31,500 Birr27,000 Birr 22,500

Taxes Incurred Birr 21,787 Birr 39,865 Birr 32,533
Net Profit birr 8,963 Birr 13,760 Birr 37,917

5.3 Projected Balance Sheet

We project solid cash balance and net worth over the years of the plan.

Year 1 Year 2 Year 3

Assets
Current Assets
Cash Birr343,750 Birr363,000 Birr381,500
Accounts Receivable Birr 0 Birr 0 Birr 0
Inventory Birr 55,750 Birr 24,586 Birr 9,767
Accumulated Depreciation Birr 1000 Birr 1000 Birr 1000
Total Assets Birr398,500 Bir386,586 Birr390,267
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable Birr210,000 Birr112,700 Birr 55,960
Total Liabilities Birr210,000 Birr112,700 birr55,960
Paid-in Capital Birr39,200 Birr 123,886 Birr130,000
Retained Earnings birr149,300 birr150,000 birr204307
Total Capital Birr188,500 Birr273,886 Birr334,307
Total Liabilities and Capital Birr398,500 birr 386,586 birr390267
Net Worth Birr188,500 Birr273,886 Birr334,307
 Appendix.
The agricultural fruit-farm required six hectare farm land an estimation cost of birr 350,000.By
using this total farm land area efficiently and effectively to cultivate vegetables as much as our
resource and capacity is permit .
we can try to keep its fertility of soil by rotate cultivation and by using natural fertilizer prepared
from animal dung. We can try to cultivate twice a year up to 200,000 quintal.