FITSUM DESTA HOUSEHOLD

FARM MECHANIZATION
PROJECT PROPOSAL

A HOUSEHOLD LEVEL FARM POWER SOURCE SHIFT TO MECHANICAL TECHNOLOGY

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 CHAPTER 1: INTRODUCTION

1.1 GENERAL BACKGROUND

Agricultural mechanization is generally defined as the use of hand tools, implements, and
machinery for farm activities in all stages of agricultural production (FAO, 2016; Van Loon et
al., 2020). A vast body of literature emphasized that mechanization contributes to ecient
utilization of resources and increased factor productivity due to the benets of higher precision,
timely operation, reduced drudgery, and saving of labor (Clarke, 2000; Clarke & Bishop, 2002b;
Sims & Kienzle, 2016). Mechanization is an important element of agricultural growth (Daum &
Birner, 2020) and the factor for the transformation of agricultural production or the rural
communities at large (Schmitz & Moss, 2015).
Traditional farms that are predominantly dependent on the productivity of agricultural labor were
not able to meet the dynamic food and nutrition security needs of the society (Fuglie & Rada,
2013). Donors and policymakers granted continued support for the sector though the efforts
come up with less fruitful results (Mrema et al., 2008; Pingali et al., 1988b; Mrema, 2014; FAO,
2008). A large mass of land is brought under cultivation in Sub-Saharan Africa, Latin America,
and South Asia but utilization of mechanical power and tractors, in particular, is considerably
low (Baudron et al., 2015; Mrema et al., 2008).
Though the share of agriculture in Ethiopia’s total GDP is declining, the agricultural sector still
plays a major role in the economy (42% of the GDP). The sector is a main source of employment
for 80-85% of the labor force. Close to 15 million rural farm families are directly depending on
agriculture for their livelihood and operating a total crop area of 13.5 million ha mainly under
rain-fed system. Agriculture is mostly smallholder based where about 90% of the farmers own
less or equal to 2 ha per household. In addition to human muscle, in most cases and particularly
in cereal based systems, oxen-draft is the main source of farm power for land preparation and
planting. In agroforestry systems, where hand-hoe is the dominant farm implement, human
muscles are used for all farm operations. In wheat-based systems of Arsi and Bale highlands,
wheat harvesting and threshing are mainly done using combine harvesters. Smallholder farmers
in these areas are relatively better in terms of agricultural mechanization level.
Agricultural mechanization in Ethiopia has undergone a structural change from the state of
government-subsidized provision of hiring services in the 1980s, which experienced a collapse in
similar ways to other Asian and African countries. After the market liberalization, the majority of
the farmers in the Arsi area obtain services from private service providers whereas there has been
a limited role of the government and state farms (Hassena et al., 2000). The relatively free
market operation at least permitted the involvement of the private sector, however, farm
machinery and the hiring service became too expensive (World Bank, 2014). The government
posed no clear direction for maintaining favorable institutional and infrastructural facilities that
are important for the success of mechanization service through the involvement of private
operators. Due to the underdevelopment of agricultural mechanization in Ethiopia, agriculture
remained largely dependent on draught and human sources of farm power.
Smallholder farms predominate in the Ethiopian economy and society and account for over 90
percent of Ethiopia’s agricultural production (NPC2016). For over a decade, Ethiopia’s
agriculture has grown by an average 6.5 per cent a year, contributing to reducing poverty and
under nutrition (NPC 2016; Ayele et al. 2020). Nonetheless, agricultural production has not
reached its full potential (NPC 2016), and millions of Ethiopians remain dependent on either
food assistance or social safety-net programs (WFP2019). Agricultural mechanization is argued
to be a key instrument to reduce harvest and post-harvest losses put the figure as high as 24 per
cent for cereals and contribute to food security. Mechanization also reduces drudgery and
improves the timeliness and efficiency of farm operations (Kelemu 2015; Mrema, Mpagalile,
and Kienzle 2018; Sims, Hilmi, and Kienzle 2016). Mechanical tools themselves, particularly
those originating from the global south, have become increasingly suited to Africa both in
specification and price (Hanlin and Kaplinsky 2016). Despite this, from the time Ethiopia started
implementing development plans and strategies in the 1950s, mechanization by smallholder
farmers in Ethiopia has been sidelined and, over 1991– 2013, de-prioritized. Consequently, there
is a severe shortage of farm power on smallholder farms. In 2014, at the national level, available
farm power stood at only 0.5 hp/ha – 50 per cent of the minimum recommended level for
optimum operation (MoA/ATA 2014, 2017), causing production constraints such as delays in
operations and production losses, leaving Ethiopia far behind other countries, including its close
neighbors (MoA/ATA 2014; Berhane et al. 2017).
Why smallholder mechanization now? There are a number of interrelated motivations and factors
as well. These include the exogenous pushing factors of agricultural intensification, rising rural
wages, urbanization, population pressure, and better market access emerging demand for
mechanization is observed (Diao et al., 2012, 2014; Cossar, 2016). The rapid migration of the
youth from rural to urban areas has a consequence of shortage of farm labor and increased
pressure on remaining household members (Biggs & Justice, 2015; Baudron et al., 2015;
Goldsmith et al., 2004; FAO, 2018; Rosegrant et al., 2014). Similarly, the cost of labor and draft
animals is the push factor for the changing pattern of mechanization in Ethiopia (Berhane et al.,
2017).
Triggered by smallholder farmers’ increased demand for mechanization, it re-emerged as a
policy imperative in 2013, and a national mechanization strategy was launched in 2014
(MoA/ATA 2014). Increased attention has also been given to agricultural mechanization since
Prime Minister Abiy Ahmed came to power in 20183, and the African Union recently pledged to
‘banish the hand hoe’ by 2025 (FAO & AUC 2018).
Thus, the demand for mechanization in the country has gained a revival in the recent decade.
Recognizing the benefits of agricultural mechanization and the ongoing dynamics, the
formulation of the Agricultural Mechanization Strategy (AMS) and amendment of import duty
on machinery are the steps taken to encourage the development of mechanized farming in
Ethiopia. For transformation of the agricultural production through the promotion of crop and
livestock technology packages, the extension system further incorporated row planters, threshers,
and post-harvest technologies (MoANR & ATA, 2014). As a result, various public and private
institutions plus smallholder farms nowadays have shown interest to make the necessary
interference for the development of the sector.
The emerging interest in mechanization has led to the formation of the Agricultural
Mechanization Strategy in 2014. The strategy has a mission for raising the current mechanical
power uses from 0.13 kW/ha to 1 kW/ha, improving smallholders’ access to mechanization by
30%, and reduction of animal power by 50% (MoANR & ATA, 2014). A policy appraisal raises
an agenda of the mechanization policy that guides and sets full-edged targets and priorities at
various levels. The import policy gives a special advantage to investors while cooperatives and
smallholder farmers hardly get any of the benets (Deribe & Jaleta, 2019). On this account, the
advocacy and ongoing dialogue has induced a reexamination of the circumstances and currently,
the policy has waived import taxes on agricultural machinery, irrigation technologies, and
livestock feed ingredients.
The agricultural development program has targeted to enhance agricultural productivity through
integrated support and access to complimentary services to selected Agricultural
Commercialization Clusters (ACC) (ATA, 2019). Cluster farming is expected to be attractive for
mechanization hiring service providers as compared to fragmented plots. The rural job creation
schemes have introduced youth-based hiring services and access to credit for the purchase of
tractors, threshers, and water pumps. The first private capital goods lease financing company has
entered the market, which could enhance the access to finance in the mechanization supply
system.
Consequently, FITSUM DESTA is a smallholder farmer who has the aim to mechanize more
than five hectare of own farm land located in GAMO ZONE of SNNPR and WUZETE
KEBELE of KUCHA WOREDA; to contribute its share as role player in agricultural
development endeavors of the locality as well as the nation. To this end, this firm is seeking
objectives that are consistent with the Agricultural Mechanization vision of agricultural
production transformation and ‘banish the hand hoe’ as pledged by the African Union.

1.1.1 Project Identification

 Project Name: Fitsum Desta Smallholder Farm Mechanization

 Project Type: Agricultural; Sub-Sector: Smallholder Farm Mechanization
 Project Location: SNNPR, Gamo Zone Kucha Woreda, Wuzete Kebele
 Owner of the Project: Fitsum Desta
 Address: SNNPR, Gamo Zone Kucha Woreda, Selamber City Administration
 Operator of the Project: project Owner.
 Project Capital (Budget): 3,000,000 ETB
 Requested Investment Land: No
 Source of Budget: Birr 900,000 or 30% from owners (finance) and Birr 2,100,000 or 70%
from bank loan
 Employment Opportunity: 2 permanent & 2 temporary (casual) workers
 1.1.2 Goals of the Project

The main goals of the proposed project are:

i. Support Agricultural Mechanization Strategy’s mission for raising the current mechanical
power uses.
ii. Establish better learning ground for the young and educate communities on modern
agricultural farming methods and technologies.

1.1.3 Objectives of the Project

Objective of the project is production of high quality mung bean through mechanization for
domestic and foreign market as per the government policy framework which gives emphasis to
market oriented production. In line with this the following are specific objectives of the project:
 Take advantage of policy initiatives to overcome severe shortage of farm power on
smallholder farms via mechanization.
 Develop 5 hectares of land with quality mung bean plant so that to generate attractive
return for the household and also contribute to tax revenue for the government.
 Provide Agricultural Mechanization Services to neighboring smallholder communities.

1.1.4 Project Activities

The affirmed goals and consequential objectives will only be achieved through proper planning
and organization of the activities that should be carried out. The Activities include:
 Preparing smallholder mechanization project proposal and design.
 Submission of the project proposal to concerned institution for approval.
 Obtaining acceptance of smallholder mechanization project proposal.
 Obtaining the intended Bank loan for the proposed project.
 Budgeting own fund for actual implementation.
 Purchasing of agricultural machinery, tools, selected planting material and transporting to the
site.
 Getting well qualified tractor operator, technical, and professional advice and daily laborers
for starting the actual implementation of the project.
 Clearing the land, plowing and planting mung bean seeds.
 Managing over all activities of the project work and keep record of achievements and failures
for future lesson.

1.1.5 Project Inputs

The implementation of the project requires man power, material, and financial inputs.
A. Personnel: new project personnel will be employed as per the demand. These include farm
manager, professional and supportive stuff, technical workers and daily laborers.
B. Material inputs: these inputs are agricultural equipment, tools, machineries, generators,
construction materials and furniture, office equipment, fuel and rosemary seedlings.
C. Financial inputs: financial resources are required to cover both personnel and material needs
of the project. It is the back bone of the overall activities of the project.

1.2 Initiatives for the Project Establishment

The owner of this project has been engaged in different kinds of medium to large scale business
activities including grain marketing of pulses and cereal crops for more than 10 years.
Considering the government’s development commitment to expand investment in the country
through GTP-iii that puts investment at center of development, the ambition of the owner of this
project is to increase the volume of production in terms of quantity and quality by cultivating the
selected spice& medicinal crop in best interest of local as well as foreign demand.
 CHAPTER 2: MARKET ANALYSIS

2.1. AN OVERVIEW

Ethiopia is one of the developing countries in Africa whose economy heavily depends on
subsistence agricultural production by smallholders. The agricultural sector accounts for 46% of
gross domestic production (GDP) estimated at Birr 14.86 billion at market prices, 85% of
employment and 75% of foreign exchange earnings of the country. The country has huge
potential for agricultural development.

1.2.1 Rosemary Production

Domestic and Global Scenario: Ethiopia rosemary (Rosmarinus officianalis L.) comes in the
same aromatic, sweetly scented purple-flower bearing shrubs like the native Mediterranean herb
of the same name. The plant’s Greek term just means flower while in Italian, it is celebrated as
dew of the sea. Both a decorative houseplant and a medicinal herb, it is common to find the plant
in the arid parts of Ethiopia due to its adaptation to dry areas. In Ethiopia, Rosemary is popular
by its local name ‘’Yetebes Ketel” which means a leaf used for roasting; the name arises from its
widespread use for seasoning meat while roasting. It is also known by an alternative local name
as ‘’Azmerino”.
Utilization: Rosemary is a perennial shrub; if it is managed properly, it can give economical
yield from 4 to 7 years. Because of its attractiveness and pleasant aroma rosemary is used as a
ground cover and garden plant. It can also be planted as a hedge. It is a good source of nectar for
bees. The plant is used as an insect repellent and in some cases used as a holiday pot plant at
Christmas. Moreover, the fresh and dried leaves of rosemary and its essential oil has several
uses. Fresh and dried rosemary leaves, whole or ground, are used as seasonings for soups, stews,
sausages, meat, fish, and poultry.
In Ethiopia, rosemary has much medicinal equality. The most common include healing swelled
skins, treating burns, overcoming pain and treating headache among others. It is also a spice used
in the preparation of traditional food ingredients like Berebere and Shero etc. It’s essential oil is
used as an ingredient in various industries. For instance, the oil is used for meat and other food
processing. Rosemary acts on the hair follicles by stimulating hair growth, thus it is used for the
preparation of hair foods. It is used in preparation of massage oils and ointments for massage and
aromatherapy purposes. It is used for relief from depression and sleepy feelings. It is also used as
an ingredient in soaps, creams, candles, deodorants, hair tonics, shampoos, fresheners and
organic pesticides. It is an excellent fixative material and contributes a strong, fresh oil odour,
which blends well with various other oils odour and serves to mask the unpleasant smells of
certain other ingredients.
Nutritional value: Rosemary consists of essential nutrients including dietary fibre serving of 14
grams or 56 percent of the daily value, for improved digestion. The herb is also suitable for
fighting eye-related problems for its carotene-rich vitamin A is 58 percent of the daily
requirements. For immunity against diseases, the leaves give 36 percent of the daily needs.
Mineral composition is made up of 22 percent magnesium and iron for stopping bleeding from
wounds, at 37 percent of the daily value. Calcium, for strong teeth enamel and bone formation is
31 percent of the daily requirements. There is also a monounsaturated fat content of around 1.2
grams.
Production and Processing: Ethiopia source rosemary from the lush fields of Wondogenet in
southern Ethiopia. Family growers here own small and medium plots of land of up to 1.5
hectares. They grow the crops next to other cash crops like basil and red onions. Rosemary
leaves are harvested by cutting off two to three inches of every spring. These cuttings usually
have the oil content that not only spices up meals but serves as medicine. Stems are then dried so
that they can undergo processing for the oil. The needle like leaves are waited until they mature
and picked up the same way as any other leafy plant. All of the harvesting methods include sharp
sterilized pruning equipment and harvesting scissors.
Fresh rosemary is packed in tied bunches of half a dozen to 24 stems per half a bushel box. The
herbs are first inserted in polyethylene lined bags for keeping the hydration levels optimal, and
then put the bags into cartons for fast portability. Rosemary can also be processed for sale as a
dried tinned product. Soon after harvesting, dry the leaves and stems using the sun or an
industrial dehydrator. Mechanical trays remove excess moisture under high temperatures in just a
few minutes. Only keep single layers of rosemary leaves on the trays so as to ensure uniform
drying. In a few minutes, experienced workers take off the leaves and place them on sheets for
settling in anticipation for packing.
The final step involves hanging the dry rosemary leaves upside down so that the pointed needles
will come off the leaves. Finally, workers under the supervision of a food safety representative
oversee the removal of the naturally dry leaves off the hangers. They then rub them off the stems
before putting the now powdery leaves into jute bags or tins. Dried rosemary is packed in bulk
cartons of 25 kilograms as well as woven custom bags that keep the herb well aerated. There are
also small to large size sachets of different grams. Each packet or carton consists of whole and
split dry leaves with some powdery elements.
Rosemary is stored soon after harvesting or drying in 0° Celsius temperatures. This keeps the
fresh or dried produce for between 21 to 30 days unspoiled. It can also be kept under humidity
levels that peak at 95 percent. Transportation process for both raw and dried rosemary should
conform to international guidelines. The produce can be kept at the back of the vehicle under
pre-cooled conditions.

1.2.2 Demand and Supply Analysis

Because of ever growing population, increase of income and ecological changes at global level,
market opportunities for the country's agricultural products particularly spice and medicinal
crops are very attractive. Globally, these products are used as preservatives, flavor, cosmetics,
medicines, detergents and industrial raw materials. Though these products have been the
conventional and major export commodities of Ethiopia, they need substantial improvement in
the quality and quantity to adhere to the international and national market requirements to earn
much more foreign exchange proceeds, to poverty reduction, to fetch better prices and reliable
market for the producers.

1.2.3 Past supply and Present Demand of Rosemary

Ethiopia produces rosemary for both domestic consumption and export. Rosemary in the country
is mostly grown on small farms although commercial farms are also beginning to emerge and get
involved in the production activity. The export quantity and value of rosemary in the past recent
year is given in Table 1.

Table 1: Export of Rosemary to selected countries in January 2020

 Destination Net Weight Value ($)

Netherland 2590 5233

UK 3855 11457

Germany 3053 6169

Russia 2340 8141

Total 11838 31000

Source: Customs Authority

1.2.4 Pricing and Distribution for Rosemary Product

Current average farm gate price of dried rosemary leaves in the country is about Birr 8,000 per
quintal (Eighty birr per kilogram). This price is adopted for sales forecast of the project. The
farm is recommended to use the existing spices distributing enterprises to supply both local and
central markets.
 CHAPTER 3: TECHNICAL ANALYSIS

3.1. PROJECT AREA

1.2.5 Project Location, Climate and Physical Features

The project site is located in Kucha Woreda in Gamo Zone of the SNNPRS Regional State
specific locality of Dana Kebele. The total area of the project is 50 hectares. The proposed
investment area is new. It is dominantly covered with open shrub lands. The area is free from
settlement and any sort of agricultural activities including livestock and grazing land. The site
can therefore be used for Crop cultivation without any complication that could result from land
use.

1.2.6 Topography and Agro-Ecology

Agro- ecologically the area is characterized by sub-tropical low land type of climate. The altitude
of the area is ranging from 1,500 to 1,600 meters above sea level within the range of ecology
recommended in Ethiopia for the targeted crop.
With regard to topography, the locality of the site falls within a slight to moderately gentle slop
that is suitable for spices production. The land is well drained and not exposed to flooding
hazards. Ragged land and steep slopes account for less than 10%. The soil of the project locality
is fertile with a high nutrient-holding capacity for clay minerals indicating that it is fair and
loamy with a good depth for cultivation of crops like rosemary. The topsoil is dominantly dark
brown or brownish in color, and fertility is maintained by organic recycling through litter fall
from the numerous perennial plants in the project site.

1.2.7 Rainfall

Rainfall of the site is mono-modal type, which begins usually in mid-April and continues up to
mid-September and is non-uniformly distributed in most years. Thus utilization of scientific
irrigation technology by extraction of underground water is must for the production of most
crops including spices. The annual rainfall is well over 1,450 mm and the climatic condition of
the locality is pleasant for spice production. The intended crop is a wide-range agro-ecology
crops; the optimum temperature for its growth is about 240c, while bio-mass growth of this plant
is favored at 20oc.

1.2.8 Technical Feasibility

The Gamo Zone in general and the project area in particular is an ideal place for spices like
rosemary production. Even though the average annual temperature of 24 ocand the existence of
insufficient annual rainfall with un-fair distribution over months, introduction of irrigation
technology by bringing out underground water will create favorable condition for the selected
crop in the future. Furthermore, altitude of about 1,400 m above sea level, the type and quality of
soil, suitability of the slope for drainage, and the permanent river (River Hamessa) crossing the
area in near distance justifies the suitability of the area for different types of high-value crops
production. On the other hand, concerned government line offices have long ago demarcated the
area as one of the places where private investors could invest and participate in the development
endeavors already underway in the region.

1.2.9 Reason for Selecting the Area

The owner of this business has been searching convenient area for the purpose till October, 2021
and thus major reasons for decision of the company that enforce to request the land are:
 The selected land hasn't been utilized and acquired by the local farmers for any type of
agricultural production.
 Its suitability for the intended plan of the company and its agro-ecological factors that enable
to make any diversification of product.
 The availability of ample source of ground water and the existence of perennial river (River
Hamessa) and Lake Abaya in near distance to be utilized in sophisticated irrigation
technology in the future.
 Suitability of the soil for the current and future plan of production. Besides to this, the owner
of the project has plan to develop the farm via irrigation by bringing water from under-
ground after completion of land development such as bush clearing and leveling in one year
period.
Therefore, once the farm is developed and irrigation system installed, bringing out water from
underground by digging one borrow hole, it can be utilized for irrigating rosemary and cultivate
other high value spices for trial as well.

1.2.10 Cropping Pattern and Land Allocation

Though the agro-ecological situation of the area is convenient to produce different type of spice
verities, the owner of the project has planned to produce rosemary on total land. The total land to
be developed by the project is 40 hectares with an effective plantation. An Area of 10 hectare
will be used for infrastructure development such as offices, residence, farm road and store.
Rosemary will be grown on the remaining 40 hectares within three to four years period as shown
on table 2 below.
Table 2: Land development plan for rosemary plantation in hectare

Crop type Years

1 2 3 4-10

Rosemary 1 10 20 40

Infrastructure 5 5 10 10

Total 6 15 30 50

1.2.11 Crop Yield and Productivity

At any location, crop production and yield is impacted by a combination of different factors.
Among the factors soil type, the environmental situation especially moisture, night temperature,
hour of day light and the number of cloudy chins have a significant effect on yields of rosemary
production. The yield is assumed to be maximized by practicing improved production techniques
and applying organic farming techniques as shown in table 3 below.

Table 3: Estimates of rosemary yield by years of development

 Description Years

1 2 3 4 & above
Rosemary area in ha 1 10 20 40

Productivity of Rosemary q/ha 32 32 32 32

Total production of Rosemary 32 320 640 1,280

3.2. MATERIAL REQUIREMENT OF THE FARM

1.2.12 Seed Requirement

Rosemary is a perennial plant mainly multiplied through vegetative propagation (stem cutting).
Thus initial plantation can serve 6 to 10 years depending on the field management. Available
information on plant density indicates that 74,074 rosemary stem cuttings (seedlings) on average
are required for one hectare. Once established on 1 hectare of land in the beginning year, stem
cuttings can later be multiplied to the rest of the land from there easily. This will avoid high
initial investment on planting material plus minimize risks associated with this high value crop
seedlings failure to adapt the new environment. Therefore, in total for 1 hectare of land 74,074
seedlings are required initially. Accordingly, the cost for seedling purchase is 74,074*5=370,370
birr and best quality seedlings will be purchased from Wodogenet Research Center.

1.2.13 Fuel Requirement

Fuel Requirement for machineries is determined by the total working hours required to perform
different operational activities and the consumption of fuel is based on the actual selling price of
fuel at Selamber and Arbaminch towns.

1.2.14 Fertilizer and Chemical Requirement

Rosemary is a spice and medicinal crop produced mainly as export commodity for foreign
market. Hence, rosemary growers are expected to come from Global Good Agricultural Practices
(GAP) locations and thus maintain low minimum residual levels in the herbs. As a result,
rosemary yield is assumed to be maximized by practicing improved production techniques and
 applying organic farming techniques. Therefore, there is no need to consider inorganic fertilizer
and chemical pesticides at this stage of production.

1.2.15 Land Development

The pre-requisite for starting modern commercial production is preparation of land, selection of
technology and human resource and proper combination of land, machinery and manpower. The
development of land, the farm and associated costs are tabulated here in below:
Table 4: Land development cost estimate

No. Description Unit Quantity Unit cost Total price

1 Land surveying Ha 50 1200 60,000

2 Bush clearing& disposing Ha 10 2000 20,000

3 Land leveling Ha 15 2000 30,000

4 Farm roads Km 1 25,000 25,000

Sub-total (Birr) 30200

1.2.16 Physical Layout (Buildings and constructions)

For an intended project (farm) to succeed, construction of necessary buildings is vital in order to
have appropriate handling of employees and provide suitable facility for farm input and output.
Therefore, to construct buildings that can provide better shelf-life for the product and have the
capability to reduce the impact of adverse situations, construction work has got necessary
emphasis. Thus to these end the company has allotted enough fund for the construction as stated
here in below.

Table 5: Physical facilities needed for the planed farm

No. Description Unit Quantity Unit cost Total price

1 Offices m2 40 5,000 200,000

2 Residence for workers m2 60 4,000 240,000

3 Storage houses m2 100 2,000 200,000

4 Guard houses m2 20 2,000 40,000

5 Underground water development M3 200 500 100,000

Sub-total 13500

1.2.17 Machinery and Equipment

Commercial agriculture without mechanized machinery has no use for the country and also to the
owners due to its bulkiness of operation along with the long period it takes to cover the total land
for the intended crop production. So due to these facts, the company will procure mainly a tractor
and tractor implements which have the capacity to cover at least 45 hectare of land per annum.
Additionally, other necessary farm implements (accessories) and auxiliary machineries will be
purchased at the period assigned for the operation at total cost of Birr 3,034,000. Details of each
item and allocated fund are stated in the table below.

Table 6: Machinery and equipments needed for the planed farm

No. Description Unit Quantity Unit cost Total price

 1 Tractor SONALICA 90HP No. 1 1,950,000 1,950,000

2 Disc plough No. 1 250,000 250,000

3 Disc harrow No. 1 200,000 200,000

4 Planter No. 1 365,000 365,000

5 Trailer No. 1 250,000 250,000

6 Shovel Pieces 10 100 1,000

7 Rake Pieces 10 100 1,000

8 Axe Pieces 10 200 2,000

9 Sickle Pieces 10 200 2,000

10 Hoe Pieces 20 100 2,000

11 Wheel barrow Pieces 1 1,000 1,000

12 Manual sprayer Pieces 5 2,000 10,000

Sub-total 1068700

1.2.18 Motor Vehicles

To be successful in getting the company employees to get to work on time and make ease of field
inspection for the farm manager, the company has planned to procure a mini-van and a motor
cycle with total Birr of 1,680,000.

Table 7: Motor vehicles needed for the planed farm

No Description Unit Quantity Unit cost Total price

.

1 Mini-van No. 1 1,500,000 1,500,000

 2 Motor cycle No. 1 180,000 180,000

Sub-total 180000

1.2.19 Office Furniture and Fixtures

Though the company has planned to hire the required manpower, without convenient office
facility, the targeted revenue and production cannot be attained. So, to alleviate these problems
and to make successful operational activities towards generation of estimated quantity of yield
and revenue, the company has allotted the required fund for the procurement of the following
office furniture and equipments.
Table 8: Office furniture and fixtures needed for the planed farm

No. Description Unit Quantity Unit cost Total price

1 Office Table No. 6 3,500 21,000
2 Swivel chair/medium back No. 6 2,500 15,000
3 Guests chair No. 12 500 6,000
4 Computer & printer No. 1 14,000 14,000
5 Shelf No. 1 10,000 10,000
Sub-total 30500

3.3. OPERATION SCHEDULE OF THE FARM

Based on the expectation of the company owner, the support of government to allot the required
land for the purpose is very critical. Then after, the company’s investment activities which
include land development, construction of necessary buildings, procurement of machinery and
routine farm operation will most presumably be completed within 18 months of period. The
detail investment activity towards fulfilling and beginning of production of the intended product
is illustrated herein below.
Table 9: Implementation plan of the farm
Activities 2022 20023
A M J J A S O N D J F M A M J J A S O N D A
P A U L U P C V C A B A P A U L U P C V C P

Land accusation X

Bush clearing X X

Trash removal & disposal X X

In-farm road construction X X

Building construction X X

Farm machinery equipment X X X X

Vehicles X X X

Operational activities X X X

Plowing X X X X X X

Crop management
Harvesting, packing and storing X X X X X

Marketing X X X X

NB: Operational activities plan is prepared based on the cropping calendar

3.4. PROPOSED ORGANIZATIONAL STRUCTURE OF THE FARM

Owner

General
Manager

Farm Manager Finance &

Admin Head

Machinery
Horticulture Sales & Marketing Finance Officer Personnel
Officer
Officer Officer
Officer
 Nursery site Sales Person Secretary
Coordinator
Tractor Cashier
Operator

Casual workers Driver, Security

Irrigation Purchaser
guard
Expert

Office Boy,
Casual workers
Casual worker

CHAPTER 4: MAN POWER ANALYSIS

4.1. MANPOWER REQUIREMENT AND AVAILABILITY

As per the intention of the investor and planned organizational structure, the company will
recruit professionals, semi-skilled and enormous unskilled laborers. Besides, based on the current
and actual human development strategy of the farm, the company has planned to pay attractive
salary and benefits along with provision of residence.
The permanent manpower requirement of the envisioned farm is 10 and 35 casual laborers. The
required manpower will be obtained from the local community as they have adequate experience
in crop production. Ten of the workers will be permanent when the farm starts its full operation
where as twenty five of the workers will be added as needed when seasonal demand for hiring
more people arises.
Table 10: Man power requirement and cost

S/N Description Required No. Monthly Salary Annual Salary

1 Farm manager 1 10,000 120,000

2 Administration head 1 8,000 96,000

3 Accountant 1 5,000 60,000

4 Agronomist 1 6,000 72,000

5 Cashier 1 3,000 36,000

6 Store keeper 1 3,000 36,000

 7 Sales person 1 3,000 36,000

8 Driver/Operator 1 3,000 36,000

9 Guards 2 4,000 48,000

Sub total 10 45000 540000

Casual workers 35 70,000 490,000

TOTAL 45 1,354,000
NB: wage rate for casual workers is 100 birr per day and at average 35 daily laborers will be
employed at the farm for 20 days in a month and 7 months in a year on average.

CHAPTER 5: INVESTMENT COST OF THE FARM

1.2.20 FIXED COST

This cost comprises of land development, buildings and constructions, machinery, furniture and
vehicles costs.

1.2.21 Land Development Cost

Land development cost is fixed since it is a onetime outlay lasting for a long time even after
project expires. Such costs may include feeder road construction costs. This may be depicted as
below:-
 Road construction (about 1 km): _________________25,000Birr
 Farm Land Preparation: ________________________110,000 Birr
Total: ______________________________________135,000 Birr

1.2.22 Machinery and equipments

All the necessary machinery and equipment used to develop crop production are depicted in table
6 above. The total cost for machinery is Birr 3,034,000.
1.2.23 Buildings

The necessity of constructing buildings at the project site is out of question. Employee’s resident
and office buildings, workshop shads, stores and the likes are very important. The type and cost
of buildings to be built are depicted in Table 5. It is estimated to cost Birr 780,000 throughout the
whole investment period.

1.2.24 Furniture and Fixture

Offices, residential houses, cafeteria and even the store require furniture equipment. The type
and cost are shown in the table 8. The total cost will be Birr 66,000.

1.2.25 Vehicles

Vehicles are necessary to efficiently manage and run the project. These include mini-van and
motorcycle for farm experts. The type and cost are also indicated in table 7 and cost Birr
1,680,000 at the end of the investment period.
The total fixed project cost may be summarized as below:
▪ Land Development: _______________________________ Birr 135,000
▪ Farm Machinery: _________________________________ Birr 3,034,000
▪ Buildings: _______________________________________ Birr 780,000
▪ Furniture: _______________________________________ Birr 66,000
▪ Vehicles: _______________________________________ Birr 1,680,000
Sub-total: _________________________________________ Birr 5,695,000

1.2.26 PRE-OPERATING COSTS

To implement the farming activities, the company may incur cost of Birr 60,000 before starting
the actual farm operation and investment activities.
Table 11: List of pre-operating costs needed for the planed farm

S/N Description Amount

1 Licensing fee 10,000
2 Project mini pre-implementation costs 15,000
 3 Land holding fee of the first year 20,000
4 Project proposal preparation fee 15,000
Total 0

1.2.27 INITIAL WORKING CAPITAL

This cost comprises direct and indirect cost used to run the project. During the initial year of
implantation, usually working capitals are included in the project cost. The initial working
capital is Birr 1,762,725.

1.2.28 Direct costs

These costs are costs that are incurred in the direct operation of the farming activity and they
include direct machine operation, labor operation and input costs. To calculate these costs data
are gathered from different institutions and also current unit price of fuel, oil and lubricants are
obtained from the nearby Arba Minch and Wolaita Sodo towns. Wage rate of direct labor is
obtained from the nearby investment projects of Daramalo Woreda that have already
implemented their project activities before.
 A. Machinery fuel cost for production
Table 12: Machinery fuel cost for production

Diesel Unit fuel Fuel cost for tractor/Birr/year

Description Unit Fuel TH Ha 1 2 3 4
price/l/b cost in require
con.hr./lit
irr birr/hr. d/ ha

1st Plough TH 13.75 36 495 1.5 742.5 742.5 7,425 14,850 29,700

1st Disking TH 13.75 36 495 0.5 247.5 247.5 2,475 4,950 9,900

Leveling TH 13.75 36 495 0.5 247.5 247.5 2,475 4,950 9,900

Planting/ Seeding TH 13.75 36 495 0.82 0 0 0 0 0

Chemical spraying for disease TH 13.75 36 495 0.5 0 0 0 0 0

Input/produce transporting TH 13.75 36 495 0.35 173.3 173.3 1,733 3,465 6,930

Water transporting TH 13.75 36 495 0.5 247.5 247.5 2,475 4,950 9,900

Total cost/ha/1st year 1658.3 1659.3 - - -

st
Total cost for 1 year & after 16585 33168 66334

NB; diesel price as of May 7, 2022 is = 36 per liter. Consumption of fuel by a tractor> 80 Hp =12.5 lit/hr. Hence,
expected consumption of fuel per hr. for 110 HP = 13.75 per hectare. So the total fuel cost of the machinery for
rosemary is 1,658.3/ha/annum. Therefore, the total annual cost of fuel for machine for year 1, year 2, year 3 and year
4 is Birr 1,658.3; 16,583; 33,165; 66,330 respectively.

B. Direct labor cost for production

Table 13: Direct labor cost for production

MD Cost/Year
Description Unit Cost/ha
requirement Year 1 Year 2 Year 3 Year 4 & >
Field sanitation/clearing of the harvest MD/HA 10 1,000 1,000 10,000 20,000 40,000

Slashing and trash disposal MD/HA - - - - - -

Disking MD/HA - - - - - -

Fertilizer application MD/HA - - - - - -

Planting MD/HA 20 2,000 2,000 20,000 40,000 80,000

1st weeding MD/HA 20 2,000 2,000 20,000 40,000 80,000

2nd weeding MD/HA 20 2,000 2,000 20,000 40,000 80,000

3rd weeding MD/HA 20 2,000 2,000 20,000 40,000 80,000

Seedling supervision MD/HA 20 2,000 2,000 20,000 40,000 80,000

Harvesting MD/HA 20 2,000 2,000 20,000 40,000 80,000

Drying MD/HA 10 1,000 0 10,000 20,000 40,000

Mowing/Threshing MD/HA 20 2,000 0 20,000 40,000 80,000

Bagging MD/Qt 5 500 0 5,000 10,000 20,000

Loading & unloading MD/Qt 5 500 0 5,000 10,000 20,000
Total 0 160 16000 12000 160000 320000
Cost/MD 100 Birr

C. Material input requirement of the project

I. Planting material/seed requirement and associated cost
Table 14: Planting material requirement and cost of the project

Description Unit Area/ha to be Unit price Quantity

Total cost
covered required
Rosemary Seedling No. 0.5 5 37,037 185,185

Rosemary Stem cutting No. 0.5 2.5 74,074 185,185

Total 1 7.5
NB: Purchasing price of seedlings, stem cuttings and quantity required per hectare are taken from
Wondogenet Research Center. There will be no purchasing cost of planting material after the initial year,
 because planting materials will be allocated to the rest of the land from the farm itself. So total seed cost of
the farm will be Birr 370,370.
II. Packing sacks for rosemary
Table 15: Drying and packing material cost for rosemary product

Quantity and Cost/Project Year

Unit price 1 2 3 4&>

Description Unit
in Birr
Qty. Cost Qty. Cost Qty Cost Qty. Cost
.

Drying mat M2 100 0 0 30 30,000 40 40,000 50 50,000

Packing sack No. 30 0 0 350 10,500 700 21,000 1300 39,000

Total cost 0 130 0 0

III. Summary of direct costs

Table 16: Summary of direct costs of the project

Description Project Year

1 2 3 4 & above
Wage salary 96,000 2 3 0

Annual machine fuel cost 96001 4 3 0

Annual direct labor cost 192002 8 6 0

Seed cost 192002 0.00 0.00 0.00

Drying material cost 0 30,000 40,000 50,000

Packing material cost 0 10,500 21,000 39,000

Total cost 384004 40516 61012 89000

1.2.29 Indirect costs

I. Overhead costs
These costs are costs that will be incurred indirectly in the course of production process. To
compute these costs percentage share of costs that are directly related to these are listed below.
Table 17: Overhead costs

Description Costs Remark

Employee benefit 54,000 10% wage salary

Travel and per diem 27,000 5% wage salary

Office supplies 27,000 5% wage salary

Workers uniforms 5,000 Birr 500 per staff

Miscellaneous expenses 4,800 Birr 400 per month

Total 117800

II. Insurance
Table 18: Insurance cost of the project

Description Rate Fixed investment cost Total cost

 Fixed investment of 0.5% of fixed cost 5,695,000 28,475
Rosemary farm

III. Repair and maintenance

Table 19: Repair and maintenance cost of the project

Description Rate Investment cost Rep. & main. cost

Building and construction 2% 780,000 15,600
Tractor 5% 1,950,000 97,500
Disc plough 2% 250,000 5,000
Disc Harrow 2% 200,000 4,000
Trailer 2% 250,000 5,000
Planter 2% 365,000 7,300
Mini-van 2% 1,500,000 30,000
Motor cycle 2% 180,000 3,600
Office furniture and equipment 5% 66,000 3,300
Farm tools 2% 19,000 380
Total 5,560,000 171,680
 IV. Fuel, oil and lubricants
Table 20: Fuel, oil and lubricants cost of the project

Description Quantity Km/year(hrs./year) Lt/km (lit/hr.) Cost/ Total cost

lit(birr)

Mini-van 1 25,000 0.08 36 72,000

Motorcycle 150 CC 1 12,000 0.04 40 19,200

Sub-total 91,200

Oil & lubricants cost 18,240

20% of fuel cost
Total 109,440

NB: motor bicycle is expected to travel with in farm land that is 40 km per one trip for 300
days/year; 12,000km/annum per bike.
Table 21: Summary of indirect cost estimation of the project

Description Annual cost estimation

Over-head cost 0

Annual insurance cost 28,475

Repair and maintenance cost 171,680

Fuel oil and lubricants cost 109,440

Total 309595

V. Annual depreciation and amortization cost estimation

Table 22: Annual depreciation and amortization estimation of the project

Item Initial cost Depreciation

Service year Rate % Annual dep.
Building construction 0 20 20 156,000

Machinery and equipment 0 10 10 303,400

Vehicles 0 20 20 336,000

Office furniture 0 - 10 6,600

Land development 0 - 5 6,750

Pre-production costs 0 - 10 6,000

Total depreciable cost 0 814750

V.4. TOTAL PROJECT COST SUMMARY

The total project cost may be summarized as:

 Pre operating costs ______________________________ Birr 60,000
 Fixed cost _____________________________________ Birr 5,695,000
 Initial Working Capital ___________________________ Birr 1,762,725
Total Project cost ______________________________ Birr 7,517,725

V.5. TOTAL COST AND SOURCE OF FUND OF THE PROJECT

The proposed project is estimated to cost about Birr 7,517,725. From this total cost of project,
Birr 2,517,725 (two million five hundred seventeen thousand seven hundred twenty-five birr) or
33.5 % is expected from the owner of this project and the remaining Birr 5,000,000 (five million
Ethiopian Birr) or 66.5% is required from bank loan with 11.5% interest rate to be paid back
within 10 years to complete the implementation of the farm activities.
The bank loan repayment and disbursement schedule may be depicted as below:
Table 23: Bank loan repayment and disbursements schedule
Project Year Principal repayment Interest 11.5% Total repayment Outstanding balance

0 - - - 5,575,000
1 500,000 575,000 1,075,000 5,017,500
2 500,000 517,500 1,017,500 4,460,000
3 500,000 460,000 960,000 3,902,500
4 500,000 402,500 902,500 3,345,000
5 500,000 345,000 845,000 2,787,500
6 500,000 287,500 787,500 2,230,000
7 500,000 230,000 730,000 1,672,500
8 500,000 172,500 672,500 1,115,000
9 500,000 115,000 615,000 557,500
10 500,000 57,500 557,500 0

CHAPTER SIX: FINANCIAL ANALYSIS

6.1. REVENUE ANALYSIS

Due to high price of rosemary seedlings/stem cuttings, it is difficult to cover large area of the
farm initially. Thus, in the beginning, the project will develop rosemary in one hectare of land
for the purpose of rosemary planting material multiplication and start to have a certain amount of
revenue from the sale of its farm crop marking second year of the project life. As stated in
chapter 2 of this project analysis, the project's major source of revenue will be drawn from the
sale of its farm produce. The total revenue is expected to reach from Birr 2,560,000 in the 2 nd
year to Birr 10,240,000 marking full production capacity at the end of fourth year.
Table 24: Annual output volume and revenue estimation of the project

Description Allocated ha/Year Output in Qt. /Year Total revenue in Birr/Year

1 2 3 4&> 1 2 3 4&> 1 2 3 4&>

Rosemary 1 10 20 40 - 320 640 1280 - 2,400,000 5,120,000 10,240,000

 NB: Initial year rosemary development is for the purpose of planting material propagation.

1.2.30 FINANCIAL OUTCOME OF THE FARM OPERATION

Taking in to consideration the operational activity costs and its income, the project’s financial
viability testing criterion shows the following status with respect to profitability, liquidity and
rate of return along the projected period.
I. Profitability: As we can see from the projected income statement on cost and revenue
statement, the project generates a sound financial benefit in its life. As indicated in revenue
and loss statement (Annex1), paying a substantial amount of obligations to concerned parties
the outcome of the projects operation will result in loss of more than 1.2 million birr in the
first two years of operation but generates more than 4.9 million birr net profit every year at
full operation. Generally the project will be profitable for the whole project year just starting
from year three to its entire life.
II. Liquidity: The projected cash flow statement (Annex 2) indicates that the project will
generate sufficient cash during the projected period. It will grow from Birr 698,020 in the
first year of operation to more than Birr 5.2 million (Annex 2), through 10 year's operation
after covering all necessary costs and other obligations.
III. Payback period (PP): indicates the number of years to recover the investment made. It
indicates the rapidity with which the investment would replenish the capital fund. In this
regard the proposed project will cover its initial investment in 5 years period. To determine
the payback period of the project the investment cost and income statement section of the
document are used (see Annex 1).
Therefore, in all above agents of financial feasibility yardsticks the project is viable, profitable,
liquid, returns the initial investment in short period of time.

1.2.31 BENEFITS OF THE PROJECT

6.3.1 Socio-Economic Benefits of the Proposed Project

Spices are of vital economic importance to not only Gomo Zone and SNNP region but to the
nation of Ethiopia and the whole world. They are becoming high value exportable commodities
to which the country has significant potential to grow and earn considerable benefit.
Accordingly, the establishment of the farm is meant to increase the country's foreign exchange
by producing quality products in large quantities.
The proposed project is expected to offer an employment opportunity to a minimum of 45
personnel (10 permanent and the rest temporary). The employment of casual laborers during pick
seasons could be as many as 100. The project is expected to introduce a totally new crop along
with its improved agronomic practice skills to the surrounding farmers through the
demonstration effect of the plantation as well as the employment opportunity to be created in the
farm. The improvement of road access around the farm will also be beneficial to the community
in various forms.
The project, furthermore, has the intention of distributing high quality and productive rosemary
planting material to the neighborhood farmers so that to create out-growers and serve as a bulk
buyer of the product thereby diversifying the farmers’ livelihood and increasing their income.
The Federal as well as Regional government will also receive substantial amount of revenue in
the form of different taxes including profit tax. The land lease is also another income to the
region.

6.3.2 Expected Positive Social Impacts

 It would help in the introduction of new techniques and technologies that increase
productivity;
 Development of off-farm activities associated with the project is expected to increase income
of the communities;
 There will be expansion of infrastructure like roads, clinic, etc.
 Crop diversification in line with market oriented system;
 The project contributes to farmers' capacity building through skill transfer, training and
technical knowledge transfer.

6.3.3 Expected Positive Economic Impacts

 Introduction of the project will help the local community to improve production and
productivity and access to different livelihood means and income source that adds change to
their standards of living;
 The project will help framers produce a totally new cash crop which would consequently
increase production of high-value export crop and their income.
 There would be better utilization of water and land resource as a result of the introduction of
modem farming practices.

1.2.32 ENVIRONMENTAL FRIENDLY

The technology of production that we use in the production of the intended farm products has
zero potential negative impact on the environment. Good agricultural practice diminishes the use
of fertilizer and pesticides while erosion and fertility depletion will be minimized via the
introduction of various agro-forestry techniques. Rosemary plantation has many agronomical
benefits such as soil conservation, improve soil texture, serve as windbreak and lessoning soil
erosion and increase resistance to drought. To end with, the project has a positive impact on
environment.

1.2.33 REPORTING, MONITORING AND EVALUATION

Monitoring and evaluation will be an integral part of the process of implementation. Periodic
monitoring will be conducted by the project. Periodic monitoring focuses on follow up of the day
to day tasks of each activity while project evaluation focuses on the impacts based on its
achievements and will be assessed in participation with project stakeholders.

6.5.1 Monitoring
Monitoring activities include measuring the physical performance and quantity of work done in
correlation with the plan and time table.

6.5.2 Reporting
The project will report major accomplishments of the months to respective government bodies
every six month. The report will be submitted to Gamo Zone Investment Expansion work
process.
 6.5.3 Evaluation
Evaluation will be conducted three times during the project life time; at the Beginning, in meddle
and at the end of project life. The evaluation is based on the overall goal and purpose. The scope
of the evaluation will be;
 The extent to which purposes of the project have become fulfilled,
 The expected profit has been maximized,
 Impact contributed to socio-economic development of the region and the nation as a
whole.
 ANNEX 1: PROFIT AND LOSS STATEMENT OF THE FARM

Project Year

Description 1 2 3 4 5 6 7 8 9 10
10,240,00 10,240,00
Gross Revenue 0 2,400,000 5,120,000 10,240,000 10,240,000 0 10,240,000 0 10,240,000 10,240,000

Less: Operating Cost 508,503 1,184,480 1,381,563 1,762,725 1,762,725 1,762,725 1,762,725 1,762,725 1,762,725 1,762,725

Income Before Dep and inter -508,503 1,215,520 3,738,437 8,477,275 8,477,275 8,477,275 8,477,275 8,477,275 8,477,275 8,477,275

Less: Depreciation 0 814,750 814,750 814,750 814,750 814,750 814,750 814,750 814,750 814,750

Income before int -508,503 400,770 2,923,687 7,662,525 7,662,525 7,662,525 7,662,525 7,662,525 7,662,525 7,662,525

Less interest exp 575,000 517,500 460,000 402,500 345,000 287,500 230,000 172,500 115,000 57,500
-
Profit before tax 1,083,503 -116,730 2,463,687 7,260,025 7,317,525 7,375,025 7,432,525 7,490,025 7,547,525 7,605,025

Less tax (35%) 0 0 862290.45 2541008.7 2561133.7 2581258.7 2601383.7 2621508.7 2641633.7 2661758.7
-
Net Profit(loss) 1,083,503 -116,730 1,601,397 4,719,016 4,756,391 4,793,766 4,831,141 4,868,516 4,905,891 4,943,266
 ANNEX 2: CASH FLOIW STATEMENT OF THE FARM

Project Year

Description 0 1 2 3 4 5 6 7 8 9 10

Cash Inflows

Owner's Equity 2,517,725 0 0 0 0 0 0 0 0 0 0

Bank loan 5,000,000 0 0 0 0 0 0 0 0 0 0

Net profit 0 -1,083,503 -116,730 1,601,397 4,719,016 4,756,391 4,793,766 4,831,141 4,868,516 4,905,891 4,943,266

Deprecation 0 0 814,750 814,750 814,750 814,750 814,750 814,750 814,750 814,750 814,750

Total Cash Inflows 7,517,725 -1,083,503 698,020 2,416,147 5,533,766 5,571,141 5,608,516 5,645,891 5,683,266 5,720,641 5,758,016

Cash Outflows

Investment on fixed asset 5,695,000 0 0 0 0 0 0 0 0 0 0

Working capital 1,762,725 0 0 0 0 0 0 0 0 0 0

Pre production cost 60,000 0 0 0 0 0 0 0 0 0 0

Withdrawal 10% 0 0 0 160139.655 471901.625 475639.125 479376.625 483114.125 486851.625 490589.125 494326.625

Total Cash outflow 7,517,725 0 0 160,140 471,902 475,639 479,377 483,114 486,852 490,589 494,327

Net cash flow 0 -1,083,503 698,020 2,256,007 5,061,865 5,095,502 5,129,140 5,162,777 5,196,415 5,230,052 5,263,690

Cum. Cash balance 0 -1,083,503 -385,483 1,870,524 6,932,389 12,027,891 17,157,031 22,319,808 27,516,223 32,746,275 38,009,965

ANNEX-3: OPERATING COST OF THE PROPOSED FARM

Description Project Year

 1 2 3 4 5 6 7 8 9 10

Direct cost

Machine operation 1,658.30 16,583 33,165 66,330 66,330 66,330 66,330 66,330 66,330 66,330
Labor operation 12,000 160,000 320,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000
Input cost 370,370 40,500 61,000 89,000 89,000 89,000 89,000 89,000 89,000 89,000
Sub-total 384,028.3
0 217,083.00 414,165.00 795,330.00 795,330.00 795,330.00 795,330.00 795,330.00 795,330.00 795,330.00

Indirect costs
Salary 96,000 540,000 540,000 540,000 540,000 540,000 540,000 540,000 540,000 540,000
Employee benefit 0 54,000 54,000 54,000 54,000 54,000 54,000 54,000 54,000 54,000
Travel Perdiem 0 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000
Office Supplies 0 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000
Uniforms 0 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Repair &maintenance 0 171,680 171,680 171,680 171,680 171,680 171,680 171,680 171,680 171,680
Fuel, oil & lubricant 0 109,440 109,440 109,440 109,440 109,440 109,440 109,440 109,440 109,440
Insurance 28,475 28,475 28,475 28,475 28,475 28,475 28,475 28,475 28,475 28,475
Sub Total 124,475 962,595 962,595 962,595 962,595 962,595 962,595 962,595 962,595 962,595
Total 508,503.3 1,179,678.0 1,376,760.0 1,757,925.0 1,757,925.0 1,757,925.0 1,757,925.0 1,757,925.0 1,757,925.0 1,757,925.0
0 0 0 0 0 0 0 0 0 0