Contents………………………………………………………………………………………..

page
ABSTRACT....................................................................................................................................................... 1

DESCRIPTION OF PROJECT......................................................................................................................... 2

1. INTRODUCTION......................................................................................................................................... 3

1.1 VISION........................................................................................................................................................ 4

1.2. MISSION.................................................................................................................................................... 4

1.3. VALUES..................................................................................................................................................... 4
1.4. THE STARTING POINT OF THE PLAN.................................................................................................. 5

1.5. OBJECTIVE OF THE PROJECT.............................................................................................................. 5

1. 6.PROJECT DESCRIPTION.............................................................................................................................. 6

1. 7.PROJECT LOCATION.............................................................................................................................. 6

2. LAND, BUILDING AND CIVIL WORKS.................................................................................................... 7

2.1. MARKET POTENTIAL............................................................................................................................. 7

2.2. MARKETING PROMOTION AND STRATEGY......................................................................................8

2.3. PRODUCT OR SERVICE.......................................................................................................................... 8

2.4. CUSTOMER ANALYSIS........................................................................................................................... 8

3. MANAGEMENT........................................................................................................................................... 9

3.1. HIRING MANPOWER AND COST PLANNING....................................................................................10

TABLE: -1. LABOR FORCE DEMAND DISPLAY.......................................................................................10

3.2. THE ADMINISTRATIVE STRUCTURE OF THE FIRM.......................................................................11

3.3. PRE-SERVICE ACTIVITIES................................................................................................................... 11

TABLE: 2 ACTION PLAN PER WEEK......................................................................................................... 12

3.4. (PRODUCTION PROCESS)..................................................................................................................... 12

4. CALCULATION OF SELLING PRICE...................................................................................................... 13

TABLE: 3 CALCULATING SELLING PRICE.............................................................................................................. 13

4.1.THE FIRM ONE-YEAR SUBSCRIPTION REQUIREMENT SHOWS THE DEMAND FOR RAW
MATERIALS.................................................................................................................................................. 14

SOURCE AND SUPPLY OF RAW MATERIALS.......................................................................................... 15

TABLE :4. BUILDING COAST ANALYSIS................................................................................................................ 15

TABLE:5. LIST OF MACHINERY AND EQUIPMENT................................................................................16

TABLE:6. OVER HEAD COST FOR ONE YEAR........................................................................................................ 18

TABLE: 7.ONE YEAR SERVICE COST COAST DISPLAY.........................................................................19

4.2 THE FIRM’S ONE-YEAR SALES PLAN................................................................................................. 20

4.3.MARKET SIZE............................................................................................................................................... 20

4.4.BULLS THAT WERE TAKEN DURING THE SURVEY..........................................................................................20

4.5 MAIN COMPETITORS OF THE PRODUCT.......................................................................................... 24

4.6. ON AUSPICIOUS OCCASIONS.............................................................................................................. 24

4.7. CUSTOMERS OF THE PRODUCT......................................................................................................... 25

4.8. THE WAYS IN WHICH THE FIRMS DISTRIBUTES ITS PRODUCTS;..............................................25

. 4.9. THE STRONG SIDE............................................................................................................................... 26

4.11. OPPORTUNITIES.................................................................................................................................. 26

4.12. CUSTOMERS OF THE PRODUCT....................................................................................................... 26

Abstract
Cattle are one of the main livestock production components in Ethiopia wherein 70 % of its
populations are engaging in traditional cattle production. Next to coffee export, cattle
substantially contribute to Ethiopian foreign currency exchanges. The objectives of this proposal
were to synthesize available contribute towards the growth of the butcher production in Addis
Ababa City Administration on recent cattle fattening practices, challenges and future perspective
in the city. Various methods of fattening practices, feeding systems and feed treatments are
conducted by the farmers to feed cattle, reduce the length of fattening period and boost profits.
The proposal identified that feed shortage, shortage of initial working capital, disease and output
market and shortage of land as the major constraints of cattle fattening in Ethiopia ranked 1 st , 2
nd , 3 rd and 4 th respectively. The use of mobile drone technology to supply vaccines and
establishment of agro-processing industries could also significantly shift the traditional fattening
to a market-oriented commercial fattening system and enhance the production capacity of the
meat industry.
Description of project

1. Project name: Cattle fatting

2. project Type : Cattle fatting products

3. Nationality: Ethiopian
4. Project Owner: Tilahun Debela Mesekela
5. Project location: Addis Ababa City Administration, Nifas Silk Lafto Sub-city around
Jemo.
6. Area Required: 3000m2
7. Total investment Cost: 15,000000 ETB is required from this amount 30% or
4,500,000ETB from owner equity and the rest 10,500,000 of 70% from bank loan.
8. Employment opportunity: 10 individuals on permanent 5 on casual basis
9. Social and Economic Benefit: provide better Building service, employment opportunities,
generation of income and benefits for the local people.
1. Introduction
In Ethiopia, livestock provides multiple functions including as source of quality food and as
industrial raw materials (FAO, 2015). The livestock sector in Ethiopia play significant
contribution to the economy accounting for 45 % of the agricultural gross domestic product, 18.7
% of the national gross domestic product and between 16 – 19 % to the total foreign exchange
earnings of the country (Eshetie et al., 2018). However, the livestock sector contribution to the
country economy remains disproportionately low due to low productivity of the animals. The
estimated average live weight of cattle is 250 kg with 14 % off take rates and carcass weight is
110 kg with 44 % dressing percentage due to multifaceted challenges related to production,
husbandry and marketing (MARD, 2010; AGPLMD, 2013). The cattle population is Ethiopia
was estimated to be 59.5 million among which 99 % were local cattle and 1 % were cross breeds
(CSA, 2017). Cattle are a very common asset in Ethiopian households and 70 % of the total
population depend on cattle for their livelihoods and the country produces about 1 million tons of
beef per year valued at USD 5.1 billion (ASL, 2018). The annual contribution of ruminants to
meat production in Ethiopia was estimated to be over 3.2 million tones representing over 72 % of
the total meat production (Issack et al., 2017), from which beef accounted for over 70 % of the
total red meat production and over 50 % of the total meat output in Sub-Saharan Africa (Wabalo
and Anja, 2018). According to Bachewe et al. (2017) in Ethiopia the consumption expenditure
on Animal Source Foods (ASF) increased by 13.4 % in 2011 from which beef accounted for 42
%. Bachewe et al. (2017) noted that the value of exported of meat products increased from 18
million USD in 2005 to 107 million USD in 2015 due to the increase in international livestock
trade. Cattle fattening is a very profitable business, and many people are making money all over
the world by starting cattle feedlot business. Cattle pen fattening involves the feeding of beef
cattle with a protein balanced, high-energy diet for a period of 90 days under confinement to
increase live weights and improve degree of finish and thus obtain better grades at the abattoir.
Beef cattle fattening enables the cattle to express fully their genetic potential for growth. To
build a successful, sustainable cattle fattening livestock business, you require sufficient
knowledge of how to efficiently do cattle pen fattening i.e cattle fattening techniques, good
management skills, and a good cattle feedlot business plan. This article will outline how to start
cattle fattening business, and the cattle pen fattening business plan Cattle fattening farming is a
lucrative business, but there are some essential things you need to do before you venture into the
livestock farming business. You have to decide on the size of your cattle livestock project i.e. the
number of cattle you want to keep per cycle; location of the business e.g. a cattle farm, and your
target market. These choices will be affected by the amount of capital you have, and the size of
your target market. If you do not have a lot of capital, you can always start small and grow your
cattle pen fattening business overtime. You also need to carry out market research (Who are you
going to sell the cattle or beef to? At what price?) And write a beef cattle farming business plan
before you venture into the business. If you want to raise capital from investors you will have to
present a good cattle fattening project proposal. Ensure you have done your research before
starting the cattle fattening in 90 days business.

1.1 Vision
Cattle fattening firm in the year 2028 to provide sufficient and quality cattle fattened in the city
to the residents of the city to see that their needs are satisfied.

1.2. Mission

By providing quality and fattened bulls at affordable prices, our aim is to increase the satisfaction

of our customers and create a favorable environment for the expansion of local consumers and

local hotels.
1.3. Values

 Strong work culture

 Hard work

 Working hard for the benefit of the society and

 the public

 Entrepreneurship

 Accountability

 Clarity

 Being ready for change

 Be a role model

1.4. The starting point of the plan

 The focus in the sector is not consistent with demand (demand higher than supply).

 The society's demand for meat is increasing from time to time

 Based on market research, identifying the problems that can be seen in terms of strength
and weakness
 Increase productivity by providing orientation to the members of the association by
preparing a quick change plan
 Identify and solve problems around the product
 Based on the needs of the society, cattle fattening is a minority for consumer providers

1.5. Objective of the project

The major goal of this project is to contribute towards the growth of the butcher production in
Addis Ababa City Administration. Its specific objectives include the following.
 To balance supply and demand of milk in Addis Ababa specifically in jemo facilities that
enable to provide standard services to customers
 To undertake trading and other refuted business activities that enable to generate a reasonable
to the invested capital.
 To develop modern business in milk and milk products centers that would provide services of
international standard in order to attract foreign visitors and thereby contribute towards the
generation of hard currency for the country.
 To create employment opportunities for the population in the country.

1. 6.Project description

The long-term goal of the project is become the best choice in Addis Ababa and its surrounding
areas by creating a differentiated experience capitalizing on personal service. The proposed
project will have a total area of 3000m2, designed to reader a multipurpose giving business,
which will in turn plays significant role towards solving shortage of butcher and butcher product
center in Addis Ababa. The owner plans the project to distribute butcher and butcher products in
the society, restaurants, office and other. Based on environmental and other considerations, the
entrepreneur has determined the type and size of the building which is already determined by the
site; conceptual planning and preliminary analysis have been carried out by analysts, in order to
attract its clients to the service, the project will develop high standard butcher and butchered
products.

A. Source of Revenue
As public policy of any nation, the government collects different forms of taxes from different
business organizations and individuals. Among the different forms of taxes, business income
taxes, payroll income tax and VAT are collected from undertaking business activities. Therefore,
the project will serve as sources of revenue for the sub city as well as for the city administration.

B. Employment opportunity

One of the problems that our country faced is unemployment. Therefore, the current objective of
the government is working on tackling the problem of unemployment and fostering the
development process either through creating self employment or employment in other
organization. Hence, this project will hire 10 individuals and more than eighty individual during
construction.

1. 7.Project Location

As aforementioned on the introductory part the envisioned project is intended to be located in

Addis Ababa Nifas Silk Lafto sub city around jemo.

2. Land, Building and Civil Works

The dairy farm will have farm buildings and shades for cows and calves. In addition, the
farm will have pasture and natural open areas. Areas of building, shades, pasture and
open areas are 500 m2, 500 m2, 400 m2, and 1450 m2, respectively

2.1. Market Potential

Addis Ababa around jemo area is a growing low to middle class area, counting more than
millions residents. Most of these residents are families of three or more. The average
income for the area is 100birr, Similar Dairy service businesses that traditionally do well

with this population have proved the potential for Tilahun Debela Mesekela Dairy Farm
with continued growth in the area, opportunities to serve the Local residents
will Increase. The Company will sell to individuals, but it will also accept some
occasional catering jobs to individuals and companies in the area. We estimate that over
90 percent of our sales will go to individuals (retail customers) and the remaining balance
to existing and future businesses (corporate customers).However, it is important to note
that, typically, corporate customers make larger orders for their employees' needs or
special business events. a) Individuals (retail customers) accounting for more than 90
percent of our sales, and) Local businesses (corporate customers) which, in terms of
purchase orders, typically make larger orders for their employees and business needs’)
Next illustration shows the market segmentation, taking into account, for conservative
purposes, only the potential number of individuals that would order butcher (about 100
 thousand residents, or 10 percent of the population in the city's area, plus 500 businesses),
and less than 5 percent average growth rate. .

2.2. Marketing promotion and Strategy

In order to penetrate and gain considerable market share, one of the major marketing strategies
for the project is consistently rendering quality service to its tenants. Due emphasis must be
placed on improving quality of service and facilities. The major marketing strategies to promote
the project and gain considerable market share include:

 Advertising through different means focusing on the existing service and facilities
 Promote in association to the key location and nearby business
 Working on sustained promotional work.
 Working on public relations to reach and influence key personas and organization with a
capacity of making decision.
 Keeping the quality of its service/ facilities and consistently improving with changing
situations.
 Seasonal discount pricing different others customer centric marketing strategies will be
used by the company.

2.3. Product or Service

Tilahun Debela Mesekela dairy farm will offer a wide service of quality , as well as it is
by product. Plain items on hand, and will be able to provide our customers with various
packing, at the counter, for Dairy Farm, or delivered to the location indicated in our
customer orders. We take orders online, by phone, or at our location. The product is
sealed and the packaging will allow our customers to remove individual product from
their freezers as they need them.

2.4. Customer Analysis

The Farm will focus on its target market, low to middle class residents in the area, along with
local businesses that are located inside or outside the Local. As explained above, individuals
(retail customers) accounting for more than 90 percent of our sales, and local
businesses(corporate customers) which, in terms of purchase orders, typically make larger orders
for their employees and business needs. The demand for butcher depends on many factors
including consumer preference, consumer’s income, population size, price of the product, price
of substitutes and other factors. Our retail and corporate customers are especially sensitive to
service value. The Dairy Farm. Must ensure that price and service are perceived to be a good
value to our customers. High quality product will be offered at a reasonable price, but the price
will certainly not be the lowest in the area. In the limited service dairy industry, one message
rings true: other competitor can always beat you on price.

3. Management
Our management is expected to use resource wisely, operate profitably and abide by law
and regulations. Tilahun Debela Mesekela will be manager of farm. Tilahun Debela
Mesekela over sees the total dairy business operation, with daily responsibilities for
managing Cattle fatting, Cattle house work, book keeping, and fieldwork. Other assists
with all farm responsibilities, with daily responsibilities for maintaining herd health
records, heifer rising, and fieldwork. No other employee’s work on the farm at this time

The personal plan reflect the need to booster our capability to match our position project farm,
will have the following staff Dairy farm
Manager → BSc
Barn worker skilled
Veterinarian diploma
Pasture and worker→ skilled
The ultimate goal of all our employees is to meet or exceed our customers ‘expectations. They
are all empowered to take any reasonable action to avoid customer leaving our premises
dissatisfied. Our continuous improvement policy encourages all employees to continually look
for ways to keep updated with the latest technology, to improve processes, reduce costs and save
time. This approach serves the goal of reducing costs and delivery times, and increasing the
service quality and customer satisfaction.
3.1. Hiring manpower and cost planning

Table: -1. Labor force demand display

S.N Job share Required human power Amount of money to be

Quantit
paid
y

In month In year

Birr birr
1 Cattle He has knowledge about 10 2500 300000
keeper Labor
2 Cleaning 8 part 5 1600 96000
3 Cattle Graduated by Cattle Doctor 2 6500 156000
doctor
4 Protection Able to read and write 5 2000 120000

Total 22 672000

Note: In order for the firm to be effective, a person must have great attention and motivation for
the work
3.2. The administrative structure of the firm

ጠቅ ላላ ጉ ባኤ

ስራ አስኪያ ጅ

የሂሳብ ሹ ም ና የሰው ሃይል አስተ ዳደር

ፅዳት እና
ጥ በቃ በሬ ቀ ላቢ
ተ ንከባካቢ

3.3. Pre-service activities

He plans to carry out the following activities in order to put the firm into operation.

1. Prepare a business plan

2. Choosing the workplace
3. Registering the business/licensing
4. Contact your equipment and material supplier company
5. Fixing, beautifying and promoting the workplace
6. Procurement of equipment and materials
7. Inserting and organizing equipment and supplies;
8. Buying the original
 Table: 2 Action plan per week

ተ Action plan (per week)

ቁ Activities
First year Second year Third year
1 Prepare a business plan
2 Choosing the workplace
3 Registering the business/licensing
4 Applying for a loan
5 Contact the equipment and material supplier
6 Procurement of equipment and materials
7 Fixing, beautifying and promoting the
workplace
8 Entering and organizing equipment and
supplies;
9 Hiring an employee
10 Buying raw materials
11 Completing the remaining tasks to start the
work by completing the preparatory work

3.4. Production process

ህክምና
የስጋ ከብት
ማድረግ፤መድኃኒ
መግዛት የደለቡ ከብቶችን መሸጥ
ት መስጠት
4. Calculation of selling price
The selling price is calculated by taking into account the direct costs, i.e. the cost of raw
materials, the wages of the employees involved in directly providing the service, other
operational costs and the market selling price.

Table: 3 calculating selling price

S.No quantity Unit price Total price መግለጫ
Product type Measure

birr Sa Birr Sa
1 400 50000 20,000000 For one year
Beef cattle Number

Product type Measure

:
Note According to the survey, the price of one bull is 40,000-60,000 birr, and the average price
of two bulls is 50000

4.1. The firm one-year subscription requirement shows the demand for raw
materials

Table: 4. Show raw material

S.N Type of row Unit per Quantity Single price Total price Source of money
o material quintal birr sa Birr Sa Project Loan
1 2000 200 400000 120000 280000
Cattle feed quintal
2 400 20000 8000000 2400000 5600000
Cattle not number
fattened
3 400 700 280000 84000 196000
Fresh quintal
4 300 1600 480,000 144,000 336,000
Nuts quintal
5 500 800 400000 120000 280,000
Molasses quintal
6 1000 5 5000 1500 3,500
Salt per kilo
9,565,000 2869500 6,695,500
Total
Source and supply of raw materials

From the market (from the markets where the bulls came out, for example, Anbo, Salale, North

Shewa)

Molasses, nuts, powder and salt will be available from wholesalers

Table: 4. Building coast analysis

Number Materials Total cost
s

1 Shade (500 meters square ) 221800

2 Building (280 meters square ) 550000
3 Infrastructure 150000
4 Total 921800

Source and supply of production equipment

 From wholesalers,
 From retailers
 Water meter with water and sewage power
 Power of light from light.

Table: 5. List of Machinery and Equipment

Numbers Details of materials Quantity Unit cost Total cost

1 Modern pool 15 5000 75000

2 Car 1 950000 950000

3 Disc harrow 1 65000 65000

4 Dipping vat 1 65000 65000

5 Water pump 2 84000 168000

6 Cruch 1 8000 8000

7 Tools (miscellaneous 1 35000 35000

8 የዉሃ ታንከር Water tank 3 16000 48000

 (10000 lts)

9 የህክምና ቁሳቁሶች Vet. 1 65000 65000

Clinic equipment (set)

10 ባሊ የዉሃ መቅጃ 20 100 2000

11 የዉሃ ቆጣሪ 1 4500 4500
12 ጋሪ የብረት ቆሻሻ ማስወገጃ 20 500 10000
13 የመብራት ቆጣሪ 1 4500 4500
14 1 20000
Tank insulated

15 External reservoirs 1 20000

16 Parallel filters (set) 1 10000

17 Regulator 1 5000

18 Compact plate pasteurizer 1 5000

19 Spiral air compressor 1 10000

20 Water refrigerator 1 1000

21 Centrifugal pump 1 25000

22 Connecting pipes, valves, 1 3500

etc

23 Laboratory equipment 1 2500

24 Balance instrument 1 1000

25 Automatic filter –sealer 1 25000

for
plastic bags

Total
cost 1570000
Table: 6. Over head cost for one year
Numbe Materials Total cost
r
1 Indirect lobar 75000
2 Transport 100000
3 Utilities 45000
4 For utility 10000
5 bull medicine 20000
6 Advertisement 20000
7 Pension 80520
8 Halal Media 15000
9 Electricity 5000
10 Maintenance 8000
11 Misalliance 1600
12 Insurance 36000
Total 344120

Table: 7.One year service cost Coast display

S.N Expense
o quantity
Examination

Birr sa.

1 Raw material 9565000

2 Direct labor 672200 00

 3 Managerial expense and other 963440 00

Expense
00
4 Building coast 00

921800

5 Machinery and equipment coast 1570000 00

6 Over head coast 344120 00

7 Other coast un expected expense 963440 00

= Total 1500000 00
0

Explanation: - Reserve budget is not scheduled because it is a feature of the business plan,
that is, bulls are bought every 3 months, and recycled for every three months.

4.2 The firm’s one-year sales plan

As it is known, there are two big markets in Addis Ababa, they are Yeka and Gulele sub-
districts. Based on this, when the association conducted a survey and market research, in Gulele
sub-district, Shegole cattle market was found and to briefly look at the needs of bull suppliers
and customers, it was understood that they would come as far as Harer, for example, as they had
difficulty finding bulls nearby.

4.3. Market size

If we look at the market size, as mentioned above, during the months of high production,
summer and religious festivals are the most popular. The fact that it is a religious festival is very
motivating for the product.
4.4. Bulls that were taken during the survey
.
4.5 Main competitors of the product
The number of cattle fattening organizations in the city is small. For example, there are cattle
fattening organizations organized by association in Lafto District 5, but if we look at it as a
district, it is understood that there is a few firms in Nifa silk lafto. It is understood that the
production is very scarce. Also, the association receives high monitoring and support from the
government, so it can be more than other producers.

4.6. On opportunity
Availability of appropriate government support

The area is outside the city, so it is suitable for cattle breeding

There is a significant increase in social demand,
Inaccessibility of the number of competitors
What is needed for the work is available through government spending and low interest loans
Due to the fact that the new slaughterhouse will be built in Kefle city, it is possible to provide the
product without abuse.
The fact that all the members of the union are close to the work
The production is increasing from time to time
Concerns
Love of cattle fodder
Fluctuations in market conditions;
The fact that beef is used by most of the community during husbandry
Import of raw material including rice

The problem of production space is in a high place

4.7. Customers of the product
Local residents,

Hotels in the area;

Various merchants in the area
Governmental and non-governmental organizations
Recently started Sikera Company
Methods used by the association to promote the product;
In leaflets,
Hanging a tape on the door of the association
By providing quality and efficient service to customers and fulfilling/satisfying their
needs/word-of-mouth advertising,

4.8. The ways in which the firms distributes its products;

By providing the service directly to the users,

During the summer months in the months when religious festivals are celebrated
Change in time.

. 4.9. The strong side

 The owner of the association has experience,
 Knowledge and competence in agricultural work.
 the owner have received management training and experience

4.11. Opportunities
 Adequate government support
 The area is out of town making it suitable for cattle
 Significantly growing public interest

 Inadequate number of competitors

 The need for the project is available at government expense and low interest loans
  All members of the association are close to the work

 The product is increasing over time

4.12. Customers of the product

 Locals,

 Hotels in the area

 Various merchants in the area

 Governmental and non-governmental organizations