COLLEGE OF PERFORMING AND VISUAL ARTS

DEPARTMENT: Yared Music School

Entrepreneurship Assignment , Business plan
Title: Lem hager wheat production and agro
processing

Name: Teyobstia Wossen

Id: UGR/5263/16

Submitted to: Wubliker Ayalew

Submission date: 22/Mar/2024

1|Page
Executive Summary
LEM HAGER Company is a pioneering agricultural enterprise dedicated to the production and
agro-processing of wheat in the fertile lands of the Hararghe region. My mission is to harness
the region's agricultural potential to cultivate and process high-quality wheat products while
promoting sustainable and environmentally conscious practices.

With a focus on innovation, quality, and community development, I aim to become a leading
producer and supplier of wheat and wheat-based products in the region. My commitment to
excellence, coupled with my dedication to the well-being of our customers, employees, and the
environment, sets us apart in the industry.

Through strategic partnerships, state-of-the-art technology, and a customer-centric approach, I

strive to deliver superior products that meet the diverse needs of my customers. My vision is to
contribute to the economic growth of the region, empower local farmers, and provide nutritious
and affordable food products to our community and beyond.

At Lem Hager Company, I am driven by a passion for agriculture, a commitment to

sustainability, and a vision for a prosperous and food-secure future. I invite you to join on this
journey as I work towards a sustainable and thriving agricultural sector in the Hararghe region.

Lem Hager Company is a dynamic agricultural enterprise that is dedicated to the production and
agro-processing of wheat in the fertile lands of the Hararghe region. My mission is to harness
the region's agricultural potential to cultivate and process high-quality wheat products while
promoting sustainable and environmentally conscious practices.

My product line will include a variety of wheat-based products, including wheat flour, semolina,
wheat bran, and other value-added products. I will also offer agro-processing services to local
farmers, providing them with the opportunity to add value to their wheat crops and access new
markets.

My products and services will be of the highest quality, and I will be committed to meeting the
diverse needs of our customers. I will also be dedicated to providing excellent customer service
and building strong relationships with my customers and suppliers.

In addition to my products and services, I will also be committed to giving back to the
community. I will work with local farmers and organizations to promote sustainable agriculture
and provide training and support to help local farmers improve their practices and increase their
yields.

2|Page
Lem Hager Company is a wheat production and agro-processing business located in the
Hararghe region. My mission is to produce high-quality wheat products while promoting
sustainable and environmentally conscious practices.

To achieve my mission, I conducted a thorough market analysis to identify the demand for wheat
products in the region. I found that there is a growing demand for high-quality wheat products,
and that there is ample opportunity for new entrants in the market. I also identified key
competitors in the region and analyzed their strengths and weaknesses.

Based on my market analysis, I have developed a comprehensive business plan that includes a
detailed marketing strategy, production plan, and financial plan. My marketing strategy focuses
on building strong relationships with my customers and suppliers, and promoting my products
through targeted advertising and promotions. My production plan includes the necessary
equipment and resources to produce high-quality wheat products, and my financial plan outlines
our projected revenue and expenses.

My competitive advantages set us apart from other businesses in the wheat production and agro-
processing industry and include:

Expertise and experience: Our management team consists of seasoned professionals with
expertise in agriculture, wheat production, and agro-processing. This experience enables us to
make informed decisions and optimize our operations for maximum efficiency and quality.

Sustainable practices: I am committed to implementing environmentally friendly practices in our

wheat production and agro-processing operations. This not only benefits the environment but
also positions us as a responsible and reputable business in the community.

High-quality products: I will focus on producing high-quality wheat products that meet the needs
and demands of our customers. Our products will be made from locally sourced wheat, ensuring
that we support local farmers and promote sustainable agriculture in the region.

Customer-centric approach: I will build strong relationships with my customers by providing

excellent customer service and support. This will help retain existing customers and attract new
ones, ultimately contributing to the success of our business.

Community involvement: I will give back to the community by providing training and support to
local farmers, promoting sustainable agriculture, and contributing to the economic growth of the
region.

The management team is dedicated to driving the success of the company and is committed to
upholding the highest standards of integrity, innovation, and customer service. Their collective
experience and vision position Lem Hager Company for continued growth and success in the
wheat production and agro-processing industry.

3|Page
Lem Hager Company's financial projections are based on a thorough analysis of the market, the
company's competitive advantages, and the management team's expertise.

The company's financial projections include revenue forecasts, expense forecasts, and cash flow
projections for the next three to five years. The company's financial projections are based on
conservative assumptions and take into account potential risks and challenges.

The company's financial goals include achieving profitability within the first three years of
operation, maintaining a healthy cash flow, and achieving a return on investment for the
company's shareholders. The company's financial goals are aligned with its overall business
goals and are designed to ensure the company's long-term success and sustainability.

Lem Hager Company's marketing and sales strategies are designed to promote the company's
products and services, attract new customers, and retain existing customers. The company's
marketing strategy includes a mix of online and offline marketing tactics, including social media
marketing, content marketing, and email marketing. The company's sales strategy includes a
focus on building strong relationships with customers, providing excellent customer service, and
offering competitive pricing.

The company's marketing and sales strategies are designed to support the company's overall
business goals and are aligned with the company's mission and values. The company's marketing
and sales strategies are also designed to be flexible and adaptable, allowing the company to
respond to changes in the market and the competitive landscape.

Lem Hager Company is a wheat production and agro-processing business founded by [midwife
students] in [2024]. The company is based in the Hararghe region, a fertile agricultural area that
offers significant potential for wheat production and processing. The company's mission is to
produce high-quality wheat products while promoting sustainable and environmentally conscious
practices.

Lem Hager Company's competitive advantages will include its expertise and experience in the
agricultural sector, its commitment to sustainable practices, and its focus on providing high-
quality wheat products to its customers. The company's products and services are designed to
meet the diverse needs of its customers, and its community involvement initiatives aim to
promote sustainable agriculture and support local farmers.

The company's financial projections are based on a thorough analysis of the market, the
company's competitive advantages, and the management team's expertise. The company's
financial goals include achieving profitability within the first three years of operation,
maintaining a healthy cash flow, and achieving a return on investment for the company's
shareholders.

4|Page
Lem Hager Company is a wheat production and agro-processing business located in the
Hararghe region. Our mission is to produce high-quality wheat products while promoting
sustainable and environmentally conscious practices.

Our product line includes a variety of wheat-based products, including wheat flour, semolina,
wheat bran, and other value-added products. We will also offer agro-processing services to local
farmers, providing them with the opportunity to add value to their wheat crops and access new
markets.

Our location in the Hararghe region provides us with access to fertile agricultural lands and a
skilled workforce. We will leverage our location to source high-quality wheat from local farmers
and promote sustainable agriculture in the region.

Our marketing and sales strategies are designed to promote our products and services, attract
new customers, and retain existing customers. Our marketing strategy includes a mix of online
and offline marketing tactics, including social media marketing, content marketing, and email
marketing. Our sales strategy includes a focus on building strong relationships with customers,
providing excellent customer service, and offering competitive pricing.

INDUSTRIAL ANALYSIS
Future Outlooks and Trends

The future outlook of LEM HAGER wheat production and agro-processing in Ethiopia's Harerge
region presents promising opportunities and evolving trends that can shape the industry's
trajectory.

 Growing Demand and Government Support

Ethiopia's growing population and changing dietary habits are driving an increasing demand for
wheat and wheat-based products. The government's initiatives to promote self-sufficiency in
wheat production through land area expansion, irrigation advancements, and yield gap closure
demonstrate a commitment to supporting the sector's growth.

 Technological Advancements

The adoption of modern agricultural technologies and agronomic management packages is

expected to enhance productivity and efficiency in wheat cultivation. This trend aligns with the
government's focus on improving technology adoption and agro-clustering of smallholder
farmers to boost wheat production.

5|Page
  Market Expansion and Export Potential

As Ethiopia aims to achieve self-sufficiency in wheat production, the surplus yield may create
opportunities for export. The strategic location of Ethiopia provides access to regional and
international markets, offering potential for export activities and market expansion beyond
domestic consumption.

 Sustainability and Environmental Concerns

Our company's future trends also emphasize sustainable practices and environmental
considerations. As consumer awareness of sustainability grows, there is an increasing preference
for products cultivated and processed using environmentally friendly methods. Embracing
sustainable practices can position businesses for long-term success and market competitiveness.

 Market Analysis

The wheat production and agro-processing industry in Ethiopia is a growing sector with
significant potential for expansion. Ethiopia is the largest wheat producer in sub-Saharan Africa,
with an estimated production of 4.6 million metric tons in 2020. The Harerge region, in
particular, offers abundant arable land and a conducive climate for wheat cultivation, presenting
an excellent opportunity for large-scale wheat production for our company. The demand for
wheat and wheat products in Ethiopia is steadily increasing due to population growth,
urbanization, and changing dietary habits. Moreover, Ethiopia's strategic location provides
access to regional and international markets, offering opportunities for export and expansion.

 Competitive Analysis

The wheat production and agro-processing industry in Ethiopia is relatively competitive, with
several established players in the market. However, the industry is still in its early stages of
development, and there is room for new entrants to establish a foothold in the market. Our
competitive advantage lies in the integration of production and processing, allowing us to ensure
the quality and consistency of our products. Furthermore, our commitment to sustainable and
environmentally friendly practices will resonate with increasingly conscientious consumers and
give us an edge in the market.

In conclusion, our business plan outlines a compelling opportunity to establish a prominent

presence in the wheat production and agro-processing sector in the Harerge region of Ethiopia.
By leveraging the region's agricultural potential and addressing the increasing demand for wheat
and its derivatives, we aim to create a sustainable and profitable venture that contributes to the
local economy and meets the needs of domestic and international markets.

6|Page
Analysis of Competitors

In the Hararge region of Ethiopia, the industrial analysis of competitors in the wheat production
and agro-processing sector reveals several key insights.

 Competitor Landscape

The wheat production and agro-processing industry in the Hararge region features a mix of
established players and potential new entrants. Existing competitors may include large-scale
wheat producers, agro-processing companies, and local agricultural cooperatives. Understanding
the strategies, strengths, and weaknesses of these competitors is crucial for positioning our
company, LEM HAGER, effectively in the market.

 Competitive Strategies

Competitors in the region may employ various strategies, such as vertical integration, quality
differentiation, and market segmentation. By analyzing the strategies adopted by existing
players, we can identify opportunities to differentiate our products and services, optimize our
production processes, and target specific market segments effectively.

 Strengths and Weaknesses

Assessing the strengths and weaknesses of competitors provides valuable insights into the areas
where our company can excel. This analysis can encompass factors such as production capacity,
product quality, distribution networks, technological capabilities, and brand reputation. By
identifying areas where competitors may have weaknesses, we can capitalize on opportunities to
gain a competitive advantage.

 Market Trends and Adaptation

Understanding how competitors adapt to market trends and industry changes is essential for our
business plan. This analysis involves examining how competitors respond to technological
advancements, sustainability initiatives, and shifts in consumer preferences. By staying abreast
of these trends and observing how competitors adapt, we can refine our strategies and ensure our
company remains competitive in the evolving market landscape.

In conclusion, a comprehensive analysis of competitors in the wheat production and agro-

processing industry in the Hararge region is essential for informing our business plan. By
understanding the competitive landscape, strategies, strengths, weaknesses, and adaptation to
market trends, we can develop effective strategies to position LEM HAGER as a prominent and
successful player in the industry.

7|Page
Environmental and Industry analysis

The Hararge Highlands in Eastern Ethiopia are known for their significant contribution to wheat
production in the country. The region has a favourable climate and soil conditions that support
the cultivation of wheat, making it one of the leading wheat-producing areas in Ethiopia. In this
industry analysis, we will explore the key factors driving wheat production in the Hararge
Highlands and the challenges facing the industry.

Firstly, the Hararge Highlands benefit from a temperate climate with adequate rainfall, which is
conducive for wheat cultivation. The region also has fertile soil that is suitable for growing
wheat, contributing to high yields and quality production. These natural advantages have made
the Hararge Highlands a prime location for wheat farming.

Secondly, the government's support for agriculture and wheat production in particular has played
a significant role in the growth of the industry in the Hararge Highlands. The government has
implemented various policies and initiatives to promote wheat farming, including providing
subsidies, access to credit, and agricultural extension services to farmers.

Additionally, the increasing demand for wheat both domestically and internationally has created
opportunities for farmers in the Hararge Highlands to expand their production and market their
products. The rising population and changing dietary preferences have led to higher consumption
of wheat-based products, driving the need for increased production.

Market Segmentation

 Target Market Identification

Local Grain Elevators and Processors: Identify potential customers such as local grain elevators
and processors who require high-quality wheat for further processing and distribution.

Food Manufacturers and Bakeries: Understand the demand for wheat products from food
manufacturers and bakeries in the region, including their specific requirements for flour and
other wheat-based ingredients.

Export Market: Explore the potential for exporting wheat and wheat products to international
markets, considering the quality standards and preferences of overseas buyers.

Customer Needs and Preferences

Quality and Consistency: Assess the demand for consistent and high-quality wheat products,
including flour, pasta, and other derivatives, to meet the needs of local and international
customers.

8|Page
Sustainability and Organic Products: Understand the market's preference for sustainably
produced wheat and organic wheat products, catering to the increasing consumer demand for
environmentally friendly and ethically sourced agricultural products.

Customized Products: Identify any specific requirements or preferences from customers, such as
specialty wheat varieties or customized processing methods, to tailor the product offerings
accordingly.

Competitive Analysis

Existing Suppliers: Analyze the current suppliers of wheat and wheat products in the region,
understanding their market share, pricing strategies, and product offerings to identify potential
areas for differentiation.

Market Trends: Evaluate the market trends related to wheat consumption, agro-processing
technologies, and consumer preferences to align the company's offerings with the evolving
market demands.

Export Potential: Assess the export potential by understanding the requirements and preferences
of international markets, as well as the competitive landscape for exported wheat products.

By conducting a comprehensive market segmentation analysis, our company, LEM HAGER,

aims to identify and understand the diverse customer segments, their specific needs, and the
competitive landscape in the Hararge region. This analysis will guide our product development,
marketing strategies, and overall approach to effectively serve the local and international markets
with high-quality wheat and wheat-based products.

Culture

The Hararge Highlands region has a rich cultural heritage, with a diverse population that
includes various ethnic groups such as the Oromo, Amhara, and Somali people. The cultural
practices and traditions of the region can have a significant impact on the wheat production
industry.

Traditional Agricultural Practices: The cultural practices of the local communities may influence
agricultural techniques and methods used in wheat production. Understanding these traditional
practices can provide insights into the most effective and sustainable farming methods for the
region.

Dietary Preferences: The cultural preferences and dietary habits of the local population can
influence the demand for wheat products. For example, if wheat-based foods are a staple in the
local diet, there may be a consistent and strong demand for wheat in the region.

9|Page
Labor Force: The cultural norms and traditions of the region may also impact the availability and
organization of the labor force for agricultural work. Understanding the cultural factors that
influence labor participation can help in planning and managing workforce needs for wheat
production.

Land Tenure Systems: The cultural norms and land tenure systems in the region may affect land
access and ownership, which can impact the availability of agricultural land for wheat
production.

Environmental Conservation Practices: The cultural values and beliefs of the local communities
may also influence their approach to environmental conservation and sustainability.
Understanding these cultural perspectives can help in implementing environmentally friendly
practices in wheat production.

By considering the cultural aspects of the region, agricultural producers can tailor their
production and marketing strategies to align with the cultural preferences and practices of the
local population, thereby enhancing the overall success of their enterprise in wheat production in
the Hararge Highlands.

Industry Forecasts

In the Hararge region of Ethiopia, our company LEM HAGER forecasts for wheat production
and agro-processing present significant opportunities and evolving trends that can shape the
industry's trajectory.

 Wheat Production Outlook

Ethiopia's position as the primary wheat producer in Sub-Saharan Africa, coupled with the
suitable agro-ecological conditions in the Hararge region, indicates promising prospects for
wheat cultivation. The area under wheat cultivation has almost doubled from 1.02 million
hectares in 2000 to 1.9 million hectares in 2020, reflecting a positive growth trend. The
government's commitment to self-sufficiency through land area expansion, irrigation
advancements, and yield gap closure further underscores the potential for increased wheat
production.

 Agro-Processing Trends

Ethiopia's agro-industries, including the wheat agro-processing sector, have the potential for
significant growth and development. While agro-industries currently account for only five
percent of Ethiopia's GDP, 50% of the total manufacturing production is in food and beverage,
indicating substantial room for expansion. The government's investment in agro-processing
industrial parks and agro-industrial growth corridors demonstrates a strategic focus on boosting
the agro-processing sector, presenting opportunities for value addition and market expansion.

10 | P a g e
  Market Expansion and Export Potential

The strategic location of Ethiopia provides access to regional and international markets, offering
potential for export activities and market expansion beyond domestic consumption. The
government's initiatives to boost exports and trade through investment in agro-processing
industrial parks align with the country's goal to become a top manufacturing hub on the
continent, indicating a favorable environment for export-oriented agro-processing ventures.

The industry forecasts for wheat production and agro-processing in the Hararge region of
Ethiopia indicate a positive outlook characterized by growing production, government support,
agro-processing expansion, and export potential. These forecasts present an opportune
environment for entrepreneurs looking to invest in the wheat and agro-processing industry in the
region. By leveraging these forecasts, our company, LEM HAGER, aims to capitalize on the
evolving industry trends and contribute to the sustainable growth of the wheat production and
agro-processing sector in the Hararge region.

DESCRIPTION OF VENTURE
Description of Venture and Products

Our venture aims to establish a sustainable and viable business in wheat production and agro-
processing within Ethiopia's Hararghe region. The venture will focus on cultivating high-quality
wheat and processing it into value-added products to meet the growing demand for wheat-based
goods. The following details outline the key components of our business plan:

 Wheat Production

Our venture will engage in the cultivation of wheat in the fertile lands of the Hararghe region.
We will leverage modern agricultural practices and technology to ensure optimal yield and
quality. The production process will adhere to sustainable and environmentally friendly methods,
emphasizing soil health, water conservation, and responsible use of inputs.

 Agro-Processing

In addition to wheat cultivation, our business will establish an agro-processing facility to

transform raw wheat into a range of value-added products. This will include wheat flour,
semolina, and other wheat-based goods tailored to meet the diverse needs of consumers and
commercial clients. The agro-processing unit will prioritize quality control, hygiene, and product
innovation.

11 | P a g e
  Market Positioning

Our venture will strategically position itself to cater to the increasing demand for high-quality
wheat and wheat-based products in the local and regional markets. By offering premium
products, maintaining competitive pricing, and ensuring consistent supply, we aim to capture a
significant share of the market and build a strong brand presence.

 Value Proposition

The venture's value proposition lies in its commitment to delivering superior quality wheat and
wheat-based products, contributing to food security, and supporting the local economy. By
integrating sustainable practices, embracing innovation, and fostering community engagement,
we aim to create a positive impact within the region.

In conclusion, our venture in wheat production and agro-processing in Ethiopia's Hararghe

region is poised to contribute to the local economy, meet market demand, and capitalize on the
favorable industry outlook. By focusing on quality, sustainability, and market positioning, we
aim to establish a thriving business that adds value to the agricultural landscape of the region.

Description of Venture and Services:

Our venture in wheat production and agro-processing in Ethiopia's Hararghe region aims to
provide high-quality products and services to meet the growing demand for wheat-based goods.
Our services will include wheat cultivation, agro-processing, and distribution of wheat-based
products. The following details outline the key components of our business plan:

 Wheat Cultivation

Our venture will engage in the cultivation of high-quality wheat in the fertile lands of the
Hararghe region. We will leverage modern agricultural practices and technology to ensure
optimal yield and quality. The production process will adhere to sustainable and environmentally
friendly methods, emphasizing soil health, water conservation, and responsible use of inputs.

 Agro-Processing

In addition to wheat cultivation, our business will establish an agro-processing facility to

transform raw wheat into a range of value-added products. This will include wheat flour,
semolina, and other wheat-based goods tailored to meet the diverse needs of consumers and
commercial clients. The agro-processing unit will prioritize quality control, hygiene, and product
innovation.

12 | P a g e
  Distribution and Sales

Our venture will distribute and sell wheat-based products to local and regional markets,
including supermarkets, bakeries, and other commercial clients. We will leverage our strong
supplier relationships, quality products, and competitive pricing to capture a significant share of
the market and build a strong brand presence.

 Value Proposition

Our venture's value proposition lies in its commitment to delivering superior quality wheat and
wheat-based products, contributing to food security, and supporting the local economy. By
integrating sustainable practices, embracing innovation, and fostering community engagement,
we aim to create a positive impact within the region.

In conclusion, our venture in wheat production and agro-processing in Ethiopia's Hararghe

region is poised to contribute to the local economy, meet market demand, and capitalize on the
favorable industry outlook. By focusing on quality, sustainability, and market positioning, we
aim to establish a thriving business that adds value to the agricultural landscape of the region.

Description of Venture and size of business

Our venture in wheat production and agro-processing in Ethiopia's Hararghe region will be a
medium-sized business that will focus on cultivating high-quality wheat and processing it into
value-added products. The following details outline the key components of our business plan:

 Wheat Production

Our venture will engage in the cultivation of wheat in the fertile lands of the Hararghe region.
We will start with a moderate-sized farm, with the potential for expansion in the future. The
production process will adhere to sustainable and environmentally friendly methods,
emphasizing soil health, water conservation, and responsible use of inputs.

 Agro-Processing

In addition to wheat cultivation, our business will establish an agro-processing facility to

transform raw wheat into a range of value-added products. The agro-processing unit will be of
moderate size, with the potential for expansion in the future. We will prioritize quality control,
hygiene, and product innovation.

 Distribution and Sales

Our venture will distribute and sell wheat-based products to local and regional markets,
including supermarkets, bakeries, and other commercial clients. We will start with a moderate-
sized distribution network, with the potential for expansion in the future.

13 | P a g e
  Value Proposition

Our venture's value proposition lies in its commitment to delivering superior quality wheat and
wheat-based products, contributing to food security, and supporting the local economy. By
integrating sustainable practices, embracing innovation, and fostering community engagement,
we aim to create a positive impact within the region.

In conclusion, our venture in wheat production and agro-processing in Ethiopia's Hararghe

region is poised to contribute to the local economy, meet market demand, and capitalize on the
favorable industry outlook. By focusing on quality, sustainability, and market positioning, we
aim to establish a thriving medium-sized business that adds value to the agricultural landscape of
the region.

Office Equipment and Personnel

In the Hararghe region, our wheat production and agro-processing venture will encompass a
medium-sized operation, focusing on the cultivation of high-quality wheat and its transformation
into value-added products. The venture will be equipped with the necessary office equipment and
personnel to facilitate efficient operations and ensure the delivery of superior products and
services. The following details outline the key components of our business plan:

 Office Equipment

Our venture will be equipped with essential office infrastructure, including computers,
communication systems ,printers and administrative tools to support the management and
operational aspects of the business. This will enable efficient data management, communication,
and administrative functions.

 Personnel

The venture will employ a skilled and dedicated team, including agricultural experts, production
staff, administrative personnel, and agro-processing specialists. Our team will be instrumental in
overseeing the cultivation of wheat, managing the agro-processing facility, and ensuring the
seamless operation of the venture.

 Administrative Support

The administrative team will handle essential functions such as record-keeping, procurement,
customer relations, and regulatory compliance. This support will ensure that the venture operates
smoothly and adheres to industry standards and best practices.

14 | P a g e
  Agro-Processing Specialists

Qualified agro-processing specialists will oversee the processing unit, ensuring the efficient
transformation of raw wheat into high-quality products. Their expertise will be crucial in
maintaining product standards, quality control, and innovation in the agro-processing segment.

 Training and Development

Investing in the training and development of personnel is crucial for ensuring the success and
sustainability of the venture. Providing regular training and development opportunities for the
team will enhance their skills and knowledge, improving the quality of the products and services
offered.

In conclusion, our venture in wheat production and agro-processing in Ethiopia's Hararghe

region will be supported by essential office equipment and a skilled team of personnel. By
focusing on quality, sustainability, and market positioning, we aim to establish a thriving
medium-sized business that adds value to the agricultural landscape of the region.

Background of entrepreneurs

Our venture in wheat production and agro-processing in Ethiopia's Hararghe region is founded
by a midwife student based in Addis Ababa University. The entrepreneur's passion for
agriculture, combined with their educational background in midwifery, provides a unique blend
of skills and knowledge that can contribute to the success of the business. The entrepreneur's
experience in healthcare has equipped them with strong communication, problem-solving, and
multitasking skills, which can be invaluable in managing a farm and agro-processing business.

 Academic Background

The entrepreneur will hold a Bachelor of Science degree in Midwifery from Addis Ababa
University. During their studies, we gained valuable experience in healthcare settings, including
hospitals, clinics, and community health centers. This background has provided us with a strong
foundation in health sciences, communication, and problem-solving.

 Interest in Agriculture

The entrepreneur's interest in agriculture stems from their upbringing in a rural community,
where we observed the challenges faced by local farmers in accessing healthcare services. We
recognized the potential of combining their skills in midwifery with agricultural practices to
create a sustainable and socially impactful business in wheat production and agro-processing.

15 | P a g e
  Entrepreneurial Spirit

The entrepreneur's entrepreneurial spirit is driven by a desire to create a positive impact on our
community and contribute to the local economy. We believe that a successful wheat production
and agro-processing business can provide employment opportunities, support local farmers, and
ensure food security for the region.

In conclusion, our venture in wheat production and agro-processing in Ethiopia's Hararghe

region is founded by a midwife student based in Addis Ababa University. The entrepreneur's
academic background, interest in agriculture, and entrepreneurial spirit make them well-equipped
to succeed in this venture. By focusing on quality, sustainability, and market positioning, we aim
to establish a thriving business that adds value to the agricultural landscape of the region.

PRODUCTION PLAN
Manufacturing process

The production plan for our wheat production and agro-processing venture in Ethiopia's
Hararghe region will involve the following key steps:

 Cultivation of Wheat

Land Preparation: The land will be prepared for cultivation by conducting soil analysis,
amending the soil as needed, and creating a planting plan.

Planting: High-quality wheat seeds will be sourced and planted at the appropriate time and depth,
ensuring optimal growth conditions.

Farming Practices: Sustainable agricultural practices will be employed, including conservation

tillage, crop rotation, and efficient use of inputs such as water, fertilizers, and pesticides.

Harvesting and Threshing: Once the wheat has matured and reached the ideal growth stage, it
will be harvested and threshed to separate the grain from the straw

 Agro-Processing

Receiving and Storage: The harvested wheat will be transported to the agro-processing facility,
where it will be stored in a safe and dry location to prevent moisture damage and contamination.

Cleaning and Grading: The wheat will be cleaned to remove any foreign materials, such as
stones, and graded based on its quality and purity.

Milling: The wheat will be milled into flour using a suitable milling process, such as roller
milling or hammer milling, depending on the desired flour texture.

16 | P a g e
Packaging and Labeling: The flour will be packaged in appropriate containers, such as bags or
boxes, and labeled with the necessary product information, including ingredients, allergen
warnings, and production dates.

 Quality Control and Assurance

Quality Testing: Regular quality tests will be conducted on the flour and wheat-based products to
ensure they meet industry standards and customer expectations.

Certification: Our products will be certified by relevant regulatory bodies to ensure compliance
with food safety and quality standards.

Continuous Improvement: We will continuously monitor and evaluate our production processes
to identify areas for improvement and implement best practices to enhance the quality of our
products.

In summary, our production plan will involve cultivating high-quality wheat and processing it
into wheat-based products using efficient and sustainable manufacturing processes. By adhering
to strict quality control measures and continuous improvement practices, we aim to provide our
customers with superior products that meet their needs and expectations.

The physical plant

Cultivation Facilities : The physical plant will include land for wheat cultivation, equipped with
modern irrigation systems to ensure optimal growing conditions. The cultivation facilities will be
strategically designed to maximize the yield and quality of the wheat produced.

Agro-Processing Plant: The venture will establish an agro-processing plant equipped with
modern machinery for cleaning, milling, and refining the wheat into various products such as
wheat flour, wheat bran, and wheat germ. The agro-processing plant will adhere to industry
standards for food safety and quality control.

Storage Facilities: Adequate storage facilities will be established to preserve the raw materials
and processed products. The storage facilities will be designed to maintain the quality and
freshness of the wheat and its by-products.

Packaging and Distribution Center :The physical plant will include a packaging and distribution
center equipped with modern packaging machinery to ensure the efficient and hygienic
packaging of the products. The distribution center will be strategically located for easy access to
transportation networks.

Quality Control Infrastructure: Quality control measures will be integrated into the physical
plant, including testing equipment and facilities to ensure the production of high-quality wheat-
based products.

17 | P a g e
  Administrative Office

Office Space: The physical plant will include an administrative office to manage day-to-day
operations, handle documentation, and facilitate communication with suppliers, buyers, and
regulatory authorities.

Communication Systems: Adequate communication systems, including telecommunication and

internet connectivity, will be established to support administrative functions and external
communication.

 Quality Control and Assurance

Certification Compliance: The physical plant will adhere to certification standards for food
safety and quality, ensuring compliance with regulatory requirements.

Hygiene and Sanitation: Strict hygiene and sanitation protocols will be implemented throughout
the physical plant to maintain cleanliness and product safety.

In conclusion, the physical plant for our wheat production and agro-processing venture in
Ethiopia's Hararghe region will be equipped with the necessary infrastructure to support
cultivation, agro-processing, and administrative operations. By ensuring efficient and sustainable
manufacturing processes, quality control, and compliance with industry standards, we aim to
establish a thriving business that contributes to the agricultural landscape of the region.

Machinery and Equipment

The machinery and equipment for our wheat production and agro-processing venture in
Ethiopia's Hararghe region will encompass the following key elements:

 Cultivation Machinery

Tractor: A tractor will be utilized for land preparation, planting, and other cultivation activities to
ensure efficient and timely operations.

Irrigation Systems: The physical plant will include modern irrigation systems such as drip or
sprinkler irrigation to ensure optimal water supply for the cultivated wheat, contributing to
healthy growth and yield.

Harvesting and Threshing Equipment: A combine harvester will be employed for harvesting
wheat, which combines reaping, threshing, and winnowing processes, streamlining the
harvesting process and increasing efficiency.

18 | P a g e
  Agro-Processing Machinery

Cleaning, Milling, and Packaging Machinery: The agro-processing facility will be equipped with
cleaning equipment to remove foreign materials, milling machinery to process wheat into flour,
and packaging machinery for efficient and hygienic packaging of the processed wheat products.

Quality Control and Testing Equipment: Essential testing equipment will be integrated into the
physical plant to ensure the production of high-quality wheat-based products, including
equipment for moisture testing, particle size analysis, and quality assessment.

 Administrative Equipment

Office Space: The physical plant will include an administrative office equipped with computers,
communication systems, and administrative tools to support the management and operational
aspects of the business.

Communication Systems: Adequate communication systems, including telecommunication and

internet connectivity, will be established to support administrative functions and external
communication.

 Quality Control and Assurance

Certification Compliance: The physical plant will adhere to certification standards for food
safety and quality, ensuring compliance with regulatory requirements.

Hygiene and Sanitation Equipment: Strict hygiene and sanitation protocols will be implemented
throughout the physical plant to maintain cleanliness and product safety, including handwashing
stations, sanitation supplies, and waste management systems.

In conclusion, the machinery and equipment for our wheat production and agro-processing
venture in Ethiopia's Hararghe region will be carefully selected to ensure efficient cultivation,
agro-processing, and administrative operations. By investing in modern and reliable machinery
and equipment, we aim to establish a thriving business that contributes to the agricultural
landscape of the region.

Raw Material Suppliers

In our wheat production and agro-processing venture in Ethiopia's Hararghe region, we will
require various raw materials to ensure efficient and high-quality production. The following are
the key raw materials we will need:

Seed: High-quality wheat seed will be sourced from reputable seed suppliers to ensure optimal
yield and quality.

19 | P a g e
Fertilizer: Fertilizer is essential for healthy wheat growth and yield. We will source fertilizer
from reliable suppliers to ensure adequate supply and quality.

Packing Material: We will require packaging material for our processed wheat products. We will
source high-quality packaging material from reliable suppliers to ensure product safety and
hygiene.

Other Helpful Materials: Other materials that will be helpful in wheat production and agro-
processing include irrigation systems, cleaning equipment, milling machinery, and quality
control equipment. We will source these materials from reputable suppliers to ensure optimal
performance and quality.

We will establish relationships with reliable suppliers to ensure a steady supply of high-quality
raw materials. We will also implement quality control measures to ensure that all raw materials
meet our standards for quality and safety.

In conclusion, our wheat production and agro-processing venture in Ethiopia's Hararghe region
will require various raw materials to ensure efficient and high-quality production. We will source
these materials from reliable suppliers and implement quality control measures to ensure optimal
performance and quality.

MARKETING PLAN
Pricing

 Pricing

In our wheat production and agro-processing venture in Ethiopia's Hararghe region, we will set
competitive prices for our products to ensure profitability, stabilize the economy of Ethiopia, and
reduce the import of wheat. The following are the key factors that will influence our pricing
strategy:

Production Costs: We will conduct a thorough analysis of our production costs, including the
cost of raw materials, labor, equipment, and overhead expenses. This analysis will help us
determine the minimum price we need to charge to cover our costs and achieve profitability.

Market Demand: We will assess the demand for wheat-based products in our target market and
adjust our prices accordingly. If demand is high, we may be able to charge a premium price for
our products. If demand is low, we may need to lower our prices to attract customers.

Competition: We will analyze the prices of our competitors and set our prices accordingly. If our
competitors are charging a higher price for similar products, we may be able to charge a similar
price. If our competitors are charging a lower price, we may need to lower our prices to remain
competitive.

20 | P a g e
Value Proposition: We will consider the unique value proposition of our products, such as their
quality, nutritional value, and sustainability. If our products offer a higher value proposition than
our competitors, we may be able to charge a premium price.

Economic Factors: We will consider the economic factors that affect the pricing of wheat-based
products in Ethiopia, such as inflation, exchange rates, and government policies. We will adjust
our prices accordingly to ensure that they remain competitive and affordable for our customers.

We will regularly review our pricing strategy to ensure that it remains competitive, profitable,
and contributes to the stabilization of the Ethiopian economy. By offering high-quality wheat-
based products at competitive prices, we aim to reduce the import of wheat and contribute to the
growth of the agricultural sector in Ethiopia.

In conclusion, our wheat production and agro-processing venture in Ethiopia's Hararghe region
will set competitive prices for our products based on a thorough analysis of production costs,
market demand, competition, value proposition, and economic factors. By regularly reviewing
our pricing strategy and contributing to the stabilization of the Ethiopian economy, we aim to
establish a thriving business that contributes to the agricultural landscape of the region

Distribution

The distribution plan for wheat production and agro-processing in Ethiopia's Hararghe region
will leverage our company's own transportation resources to ensure the efficient and timely
delivery of the products to all regions of Ethiopia. This approach will enable us to have greater
control over the distribution process and ensure that the products reach a wide range of
consumers across the country.

 Utilization of Company Transport

Our company will utilize its own transportation resources, including a fleet of vehicles equipped
to transport the products from the production facility to various regions across Ethiopia. This
approach will allow us to have greater flexibility and control over the distribution process,
ensuring that the products reach their destinations in a timely and efficient manner.

 Strategic Distribution Network

By leveraging our own transportation resources, we will establish a strategic distribution network
that covers all regions of Ethiopia. This network will be designed to optimize delivery routes,
minimize transit times, and ensure that the products reach consumers in urban and rural areas
across the country.

21 | P a g e
  Quality Control and Timely Delivery

Utilizing our own transportation resources will enable us to maintain strict quality control
measures throughout the distribution process. This will ensure that the products are delivered in
optimal condition, meeting the highest standards of quality and freshness. Additionally, our
company's transportation capabilities will allow us to ensure timely delivery, meeting the
demands of our customers across Ethiopia.

Transportation Partners: We will collaborate with reputable transportation companies and

trucking firms to ensure safe and timely transportation of our wheat and agro-processed products.
These partners will be responsible for maintaining the vehicles, adhering to traffic regulations,
and ensuring proper handling of our products.

Routes and Schedules: We will establish and maintain a network of transportation routes and
schedules to ensure timely delivery of our products to customers. This will involve coordinating
with our transportation partners to plan and optimize routes, as well as managing schedules and
communication with customers.

Vehicle Maintenance and Safety: We will regularly inspect and maintain our vehicles to ensure
optimal performance and safety during transportation. This will involve checking vehicle
performance, conducting necessary repairs, and ensuring that all drivers and vehicles meet safety
standards.

Tracking and Monitoring: We will implement a tracking system to monitor the transportation
and distribution process in real-time. This will allow us to track vehicle locations, monitor
product temperatures, and ensure timely delivery of our products to customers.

Customer Service: We will provide excellent customer service to our clients, addressing any
issues or concerns promptly and ensuring their satisfaction with our products and transportation
services.

We will regularly review our transportation and distribution strategy to ensure that it remains
efficient and effective. By partnering with reliable transportation companies and implementing a
well-structured distribution plan, we aim to establish a thriving business that contributes to the
agricultural landscape of the region.

In conclusion, our wheat production and agro-processing venture in Ethiopia's Hararghe region
will collaborate with transportation partners, establish and maintain routes and schedules, ensure
vehicle maintenance and safety, implement tracking and monitoring systems, and provide
exceptional customer service to ensure efficient transportation and distribution of our products.
By focusing on these key aspects, we aim to establish a competitive and profitable business that
reduces the import of wheat and contributes to the growth of the agricultural sector in Ethiopia.

22 | P a g e
Promotion

In our wheat production and agro-processing venture in Ethiopia's Hararghe region, we will
focus on promoting our products in both rural and urban areas to increase brand awareness and
customer base. The following are the key aspects of our promotion strategy:

Market Research: We will conduct thorough market research to understand the preferences and
needs of our target customers, which will help us tailor our promotional efforts to their
preferences.

Public Relations: We will develop and maintain strong relationships with the media, bloggers,
and influencers to generate positive coverage and increase brand awareness.

Social Media Marketing: We will leverage social media platforms to engage with our target
audience, share information about our products, and showcase our expertise in wheat production
and agro-processing.

Content Marketing: We will create valuable and informative content, such as blog posts, articles,
and videos, to educate our audience about the benefits of our products and the importance of
local wheat production.

Influencer Marketing: We will collaborate with influencers and thought leaders in the agriculture
and food sectors to promote our products and increase brand visibility.

Event Sponsorship: We will participate in and sponsor relevant events, such as agricultural
shows, conferences, and trade shows, to showcase our products and network with potential
customers and industry professionals.

Community Involvement: We will actively participate in community events and initiatives, such
as local food festivals and agricultural fairs, to engage with our target audience, promote our
products, and establish ourselves as a trusted member of the community.

Referral Program: We will implement a referral program that rewards existing customers for
referring new customers to our business. This will help us expand our customer base and
increase sales.

Loyalty Program: We will develop a loyalty program that rewards our customers for their
continued support. This will help us build long-term relationships with our customers and
encourage repeat business.

We will regularly review and adjust our promotion strategy to ensure that it remains effective
and aligned with our business goals. By focusing on these promotional aspects, we aim to
increase brand awareness, attract new customers, and grow our business in Ethiopia's Hararghe
region.

23 | P a g e
Product Forecasts

In our wheat production and agro-processing venture in Ethiopia's Hararghe region, we will
develop a comprehensive production plan that includes product forecasts to ensure efficient
operations and meet market demand. The following steps will be integral to our production plan:

Market Research and Demand Analysis: We will conduct thorough market research to
understand the demand for wheat-based products in both rural and urban areas of Ethiopia. This
will involve identifying potential customers, such as grain elevators, bakeries, food processing
companies, and individual consumers. By studying the local agriculture industry and assessing
the demand for wheat products in the region, we will gain insights into the specific needs and
preferences of our target market.

Product Development and Diversification: Based on our market research, we will develop a
range of wheat-based products tailored to meet the diverse needs of our customers. This may
include wheat flour, semolina, wheat bran, and other value-added products. By diversifying our
product line, we aim to cater to a wider customer base and enhance our market presence.

Quality Control and Assurance: We will implement stringent quality control measures to ensure
that our products meet industry standards and customer expectations. This will involve
maintaining high standards of cleanliness, hygiene, and product quality throughout the
production process.

Financial Projection and Planning: We will create a comprehensive financial projection to

estimate the production costs, revenue, and profitability of our wheat production and agro-
processing activities. This will enable us to make informed decisions, attract potential investors,
and demonstrate our financial feasibility and profitability to lenders or financial institutions.

Marketing and Promotion: We will develop a marketing and promotion strategy to create
awareness of our products in both rural and urban areas. This may involve advertising,
participation in agricultural events, and collaboration with local distributors and retailers to
ensure widespread availability of our products.

Collaboration with Agricultural Experts: We will consider seeking advice or guidance from
agricultural experts or consultants to ensure that we have accounted for all necessary resources
and investments. This collaboration will help us optimize our production processes and ensure
the quality of our products.

By integrating these steps into our production plan, we aim to establish a thriving wheat
production and agro-processing venture that meets market demand, contributes to the local
economy, and reduces the import of wheat in Ethiopia.

24 | P a g e
Controls

Quality Control in Wheat Production and Agro-Processing

In our wheat production and agro-processing venture in Ethiopia's Hararghe region, we

recognize the critical importance of quality control to ensure the safety, integrity, and
consistency of our products. Our comprehensive quality control plan will encompass the
following key aspects:

Wheat Quality Inspection: We will conduct thorough visual examinations and smell tests to
determine the quality of the grain. This will involve inspecting for discolored kernels, insects,
and any undesirable odors. Additionally, we will utilize advanced testing methods such as
moisture testing, test weight, and experimental milling to ensure the quality and safety of our
wheat products.

Product Forecasting: We will conduct market research and demand analysis to understand the
preferences and needs of our target customers. This will enable us to develop a range of wheat-
based products tailored to meet the diverse needs of our customers, ensuring that our products
align with market demand.

Quality Control and Certification: We will implement stringent quality control measures to
ensure that our products meet industry standards and customer expectations. This will involve
testing for contaminants, pesticide residues, and microbial pathogens to maintain the safety of
our food products. Compliance with quality standards and certification requirements will be a
prerequisite for accessing domestic and international markets, enhancing the competitiveness of
our products.

Biological Control of Insect Pests: We will implement biological control methods to manage
insect pests in wheat production. This will involve the use of natural enemies to control insect
pests, reducing the reliance on chemical pesticides and minimizing the risk of contamination.

Investment in Quality Ingredients: We will carefully evaluate suppliers, test ingredients for
quality and safety, and establish protocols to ensure that only approved ingredients are used. This
will ensure the safety and consistency of our final products.

Water Shortage Management: Given the potential challenge of water shortage, we will
implement water conservation measures and efficient irrigation systems to ensure optimal water
supply for our cultivated wheat, contributing to healthy growth and yield.

By integrating these aspects into our quality control plan, we aim to establish a thriving wheat
production and agro-processing venture that meets market demand, contributes to the local
economy, and reduces the import of wheat in Ethiopia.

25 | P a g e
ORGANIZATIONAL PLAN
Form of ownership

In establishing the form of ownership for our wheat production and agro-processing venture in
Ethiopia's Hararghe region, we aim to ensure a structure that aligns with the strategic objectives
of the business while facilitating efficient operations and decision-making. The form of
ownership will play a crucial role in defining the legal and operational framework of the venture.

 Ownership Structure

Our company will adopt a private ownership structure, ensuring that the business is privately
owned and operated. This structure will provide the flexibility and autonomy needed to make
strategic decisions and manage the operations of the venture effectively.

 Legal Considerations

The private ownership structure will require compliance with Ethiopian business laws and
regulations. Our company will ensure that all legal requirements for private ownership, including
registration, licensing, and tax obligations, are met to operate within the legal framework of the
country.

 Financial Implications

As a privately owned venture, the financial implications of the ownership structure will involve
securing private funding, managing capital investments, and ensuring financial sustainability.
Our company will explore various financing options to support the venture's growth and
development within the private ownership framework.

In conclusion, the private ownership structure will provide our wheat production and agro-
processing venture in Ethiopia's Hararghe region with the autonomy, flexibility, and legal
framework necessary to operate efficiently and contribute to the strategic objectives of the
industry. By ensuring compliance with legal requirements and aligning with the strategic
analysis and intervention plan, our company can establish a solid foundation for success within
the private ownership framework.

The authority of principals

The authority of principals in Lem Hager Company will be clearly defined in the organizational
plan. The management team will be responsible for overseeing the day-to-day operations of the
wheat production and agro-processing venture, ensuring that all activities are conducted in
accordance with the company's mission, vision, and values.

The management team will be accountable for the following key areas:

26 | P a g e
Financial Management: The management team will be responsible for managing the company's
finances, including budgeting, accounting, and financial reporting. They will ensure that the
company's financial resources are utilized efficiently and effectively, and that financial records
are accurate and up-to-date.

Human Resource Management: The management team will be responsible for managing the
company's human resources, including recruitment, training, and performance management.
They will ensure that the company's workforce is skilled, motivated, and aligned with the
company's goals and objectives.

Marketing and Sales: The management team will be responsible for developing and
implementing the company's marketing and sales strategies. They will ensure that the company's
products are effectively promoted and that sales targets are met.

Production and Operations: The management team will be responsible for overseeing the
production and operations of the wheat production and agro-processing venture. They will
ensure that production processes are efficient, effective, and aligned with the company's quality
standards.

Legal and Regulatory Compliance: The management team will be responsible for ensuring that
the company complies with all relevant legal and regulatory requirements. They will ensure that
the company's operations are conducted in accordance with applicable laws and regulations.

In conclusion, the authority of principals in Lem Hager Company will be clearly defined in the
organizational plan, with the management team responsible for overseeing the company's
finances, human resources, marketing and sales, production and operations, and legal and
regulatory compliance. By establishing clear lines of authority and accountability, we aim to
create a well-organized and efficient wheat production and agro-processing venture that meets
market demand and contributes to the local economy.

Responsibilities of the members

The responsibilities of the members of Lem Hager Company in wheat production and agro-
processing will be clearly defined to ensure the efficient and effective operation of the business.
The management team will be responsible for overseeing the day-to-day activities of the
company, including:

Financial Management: The management team will be responsible for managing the company's
finances, including budgeting, accounting, and financial reporting. They will ensure that the
company's financial resources are utilized efficiently and effectively, and that financial records
are accurate and up-to-date.

27 | P a g e
Human Resource Management: The management team will be responsible for managing the
company's human resources, including recruitment, training, and performance management.
They will ensure that the company's workforce is skilled, motivated, and aligned with the
company's goals and objectives.

Marketing and Sales: The management team will be responsible for developing and
implementing the company's marketing and sales strategies. They will ensure that the company's
products are effectively promoted and that sales targets are met.

Production and Operations: The management team will be responsible for overseeing the
production and operations of the wheat production and agro-processing venture. They will
ensure that production processes are efficient, effective, and aligned with the company's quality
standards.

Legal and Regulatory Compliance: The management team will be responsible for ensuring that
the company complies with all relevant legal and regulatory requirements. They will ensure that
the company's operations are conducted in accordance with applicable laws and regulations.

In conclusion, the responsibilities of the members of Lem Hager Company in wheat production
and agro-processing will be clearly defined to ensure the efficient and effective operation of the
business. By establishing clear lines of responsibility, we aim to create a well-organized and
efficient wheat production and agro-processing venture that meets market demand and
contributes to the local economy.

ASSESSMENT OF RISK
Evaluate weakens of business

To evaluate the weaknesses of the business, Lem Hager Company will conduct a thorough risk
assessment. This will involve identifying potential risks and vulnerabilities that could impact the
success of the wheat production and agro-processing venture. Some of the potential weaknesses
that will be evaluated include:

Market Demand: Lem Hager Company will assess the demand for wheat products in the
Hararghe region and identify potential customers, such as grain elevators, processors, and
distributors. The company will also evaluate the competition and determine how to position itself
in the market.

Production Challenges: Lem Hager Company will assess the potential challenges associated with
wheat production, such as weather conditions, pests and diseases, and soil fertility. The company
will develop contingency plans to mitigate these risks and ensure that production processes are
efficient and effective.

28 | P a g e
Financial Risks: Lem Hager Company will assess the financial risks associated with the venture,
such as fluctuations in market prices, currency exchange rates, and financing costs. The company
will develop a financial plan that takes into account these risks and ensures that the venture is
financially sustainable.

Regulatory Compliance: Lem Hager Company will assess the regulatory requirements for wheat
production and agro-processing in the Hararghe region and ensure that the company complies
with all relevant laws and regulations.

Human Resource Management: Lem Hager Company will assess the potential challenges
associated with managing human resources, such as recruitment, training, and performance
management. The company will develop strategies to ensure that the workforce is skilled,
motivated, and aligned with the company's goals and objectives.

In conclusion, Lem Hager Company will conduct a thorough risk assessment to evaluate the
weaknesses of the business and develop strategies to mitigate these risks. By identifying
potential vulnerabilities and developing contingency plans, the company aims to create a
sustainable and successful wheat production and agro-processing venture in the Hararghe region.

New technology adoption

Cost of Technology Adoption: Our company will evaluate the cost of adopting new technology
in wheat production and agro-processing. This will include the initial investment in technology,
as well as ongoing maintenance and operational costs. The company will assess whether the
benefits of the new technology outweigh the costs, and whether the investment is financially
viable.

Technical Expertise: Our company will evaluate whether it has the technical expertise to
successfully adopt and implement new technology in wheat production and agro-processing.
This will include assessing the skills and knowledge of the existing workforce, as well as the
availability of external expertise and training opportunities.

Market Demand and Competition: Our company will assess the market demand for wheat
products, as well as the level of competition in the industry. This will help the company
determine whether new technology adoption is necessary to remain competitive, and whether it
will provide a competitive advantage in the market.

Regulatory and Environmental Considerations: Our company will evaluate the regulatory and
environmental considerations associated with new technology adoption. This will include
assessing whether the new technology complies with industry standards and regulations, as well
as its impact on the environment and sustainability.

29 | P a g e
Risks and Challenges: The company will assess the potential risks and challenges associated
with new technology adoption, such as technical failures, operational disruptions, and the need
for additional resources. This will help the company develop a risk management plan to mitigate
potential weaknesses and challenges.

In conclusion, Lem Hager Company will conduct a thorough risk assessment to evaluate the
weaknesses of new technology adoption in wheat production and agro-processing. By
considering the cost of technology adoption, technical expertise, market demand and
competition, regulatory and environmental considerations, and potential risks and challenges, the
company aims to make informed decisions and develop a successful strategy for new technology
adoption.

Contingency plans

Identification of Potential Risks: The company will identify potential risks that could impact the
success of the wheat production and agro-processing venture. This will include assessing risks
associated with production, marketing, finance, and human resources.

Development of Contingency Plans: The company will develop contingency plans to mitigate
potential risks and ensure the continuity of operations. This will include identifying alternative
suppliers, developing backup production processes, and establishing emergency funds.

Testing of Contingency Plans: The company will test the effectiveness of contingency plans to
ensure that they are viable and effective. This will include conducting simulations and drills to
identify weaknesses and areas for improvement.

Regular Review and Update of Contingency Plans: The company will regularly review and
update contingency plans to ensure that they remain relevant and effective. This will include
assessing changes in the market, regulatory environment, and technology.

Communication and Training: The company will ensure that all employees are aware of
contingency plans and are trained to implement them effectively. This will include regular
communication and training sessions to ensure that employees are prepared to respond to
potential risks.

In conclusion, Lem Hager Company will conduct a thorough risk assessment to identify potential
weaknesses and develop contingency plans to mitigate risks. By testing and regularly reviewing
these plans, the company aims to ensure the continuity of operations and minimize the impact of
potential risks on the wheat production and agro-processing venture in the Hararghe region.

30 | P a g e
FINANCIAL PLAN

Based on the information provided, the financial plan for your wheat producing and agro
processing company can be estimated as follows:

Land acquisition and preparation: The cost of acquiring and preparing land for wheat production
can range from $2,000 to $3,000 per acre. Assuming a land size of 100 acres, the total cost of
land acquisition and preparation can range from $200,000 to $300,000.

Irrigation system installation: Installing an irrigation system can cost between $10,000[553birr]
and $50,000. Assuming an installation cost of $30,000, the total cost of irrigation system
installation would be $30,000.

Purchase of tractors and other farming equipment: Tractors and other farming equipment can
cost between $50,000 and $150,000. Assuming an equipment cost of $100,000the total cost of
purchasing tractors and other farming equipment would be $100,000.

Fertilizer and chemical supplies: The cost of fertilizers and chemicals can range from $10,000 to
$30,000. Assuming a supply cost of $20,000 the total cost of fertilizer and chemical supplies
would be $20,000.

Seed and planting materials: The cost of seeds and planting materials can range from $20,000 to
$50,000. Assuming a supply cost of $35,000, the total cost of seed and planting materials would
be $35,000.

Construction of grain storage facilities: Building grain storage facilities can cost between
$30,000 and $100,000. Assuming a construction cost of $50,000, the total cost of building grain
storage facilities would be $50,000.

Transportation and logistics costs: Transporting crops and other materials can cost between
$10,000 and $50,000. Assuming a transportation cost of $30,000, the total cost of transportation
and logistics would be $30,000.

Based on these estimates, the total project cost for our wheat producing and agro processing
company would be between $465,000 and $615,000.

31 | P a g e