Flour Production Project Mifita Kedere 2014

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Flour Production Project Mifita Kedere 2014
Business Research Methods (Hawassa University)
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FLOUR MILLING FACTORY

FEASIBILITY STUDY
OWNER-MIFITA KEDIRE
Location: SIDAMA REGEON, DARA WOREDA,

MECHEISO-MILLENNIUM TOWN
September- 2020
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Table of Contents
List of ANNEX.............................................................................................................................................5
List of Figure..............................................................................................................................................5
List of Table.................................................................................................................................................5
I. EXECUTIVE SUMMARY...................................................................................................................6
2. INTRODUCTION....................................................................................................................................7
2.1 RATIONAL BEHIND THE PROJECT.................................................................................................8
2.2 SOCIO-ECONOMIC JUSTIFICATIONS............................................................................................9
2.3 COMPANY / APPLICANT PROFILE..................................................................................................9
2.4 PROMOTER’S PROFILE..................................................................................................................10
3. BACKGROUND INFORMATION....................................................................................................11
3.1 ETHIOPIA FLOUR PRODUCTIONS AND MARKETING.............................................................11
3.1.1 ETHIOPIA FLOUR PRODUCTION STATUS.......................................11
3.1.2 ETHIOPIA FLOUR MARKETING........................................................11
4. GENERAL DESCRIPTION 0F THE PROJECT...........................................................................13

4.1 LOCATION OF PROJECT AREA.....................................................................................................13
4.2 PHYSICAL AND NATURAL CONDITION OF PROJECT SITE...................................................13
4.4.1 TOPOGRAPHIC FEATURES...............................................................13
4.4.2 CLIMATE.............................................................................................13
4.3 THE SOIL............................................................................................................................................14

4.4 WATER RESOURCES.......................................................................................................................14
4.5 SOCIO-ECONOMIC ENVIRONMENT............................................................................................14
4.5.1 POPULATION PROFILE.....................................................................14
4.5.2 INFRASTRUCTURE AND SERVICES.................................................14
4.5.3. SETTLEMENT PATTERN...................................................................15
4.5.4 HEALTH FACILITIES...........................................................................15
4.5.5 EDUCATION.......................................................................................15
5. THE PROJECT......................................................................................................................................16
5.1 PROJECT DESCRIPTION.................................................................................................................16
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5.2 PRODUCT AND APPLICATIONS....................................................................................................16

5.3 JUSTIFICATION OF THE PROJECT: WHY IT IS PROPOSED?..................................................17
5.4 SUPPORT FOR THE PROJECT.......................................................................................................18
5.5 PURPOSE OF THE PROJECT..........................................................................................................18
5.6 BUSINESS OBJECTIVES..................................................................................................................18
5.6.1 MAIN AND SPECIFIC OBJECTIVE.....................................................19
5.7 TECHNOLOGY AND ENGINEERING............................................................................................19

5.7.1 TECHNOLOGY AND PROCESSING...................................................19
5.7.2 GENERAL LAYOUT OF PLANTS........................................................26
5.7.3 SOURCE OF TECHNOLOGY..............................................................27
5.7.4 ENGINEERING...................................................................................28
5.8 FLOUR PRODUCTION.....................................................................................................................28

5.8.1 PLANT CAPACITY AND PRODUCTION PROGRAM.........................28
5.9. MATERIALS AND INPUTS.............................................................................................................29

5.9.1 RAW MATERIAL AND AUXILIRY MATERIALS.................................29
5.9.2 UTILITIES REQUIREMENT................................................................30
5.10 FURNITURE AND FIXTURES COST...........................................................................................30

5.11 TRANSPORT MACHINERIES REQUIREMENT AND COST.................................................31
6.1 PAST SUPPLY AND PRESENT DEMAND.....................................................................................32
6.1.2 PAST SUPPLY AND PRESENT DEMAND ANALYSIS........................32
6.1.3 DEMAND PROJECTIONS...................................................................34
6.1.4 THE MARKET PROSPECT (DEMAND – SUPPLY GAP)....................35
6.2 MARKETING PLAN...........................................................................................................................35

6.2.1 PRODUCTS OF PLANT......................................................................35
6.2.2. MARKETING SELLING PRICE PLAN...............................................35
7. LAND USE, INFRASTRUCTURES, BUILDING AND CIVIL WORKS..............................37

7.1 LAND REQUIREMEN........................................................................................................................37
7.2 INFRASTRUCTURES AND COSTS RELATED TO INSTALLATIONS.......................................37
7.3 BUILDING CIVIL WORKS AND ACTION PLAN..........................................................................38
7.3.1 LAND USE PLAN OF FLOUR MILL PLANT BUILDING COST..........38
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7.4 OPERATING ACTIVITIES.................................................................................................................39

7.4.1 PRE-OPERATING ACTIVITIES...........................................................39
7.5 PRE- PRODUCTION EXPENSES....................................................................................................39

8. HUMAN RESOURCE AND PROJECT MANAGEMENT..........................................................41
8.1 HUMAN RESOURCES REQUIREMENTS.....................................................................................41
8.2 ORGANIZATIONAL STRUCTURE..................................................................................................41
8.3 HUMAN RESOURCE REQUIREMENT..........................................................................................41
8.4 TRAINING REQUIREMENT.............................................................................................................42
10. PROJECT FINANCIAL STUDY.....................................................................................................43
10.1 TOTAL INVESTMENT COST.........................................................................................................43
10.2 VARIABLE OPERATING COST.....................................................................................................43
10.3 CONTINGENCIES...........................................................................................................................43
10.4 SOURCE OF FUND........................................................................................................................43
10.5 FINANCIAL ANALYSIS KEY ASSUMPTIONS.............................................................................44
10.6 FINANCIAL VIABILITY...................................................................................................................46
10.6.1 INCOME STATEMENT......................................................................46
10.6.2 CASH FLOW STATEMENT AND BALANCE SHEET........................47
10.7 REVENUE PROJECTIONS.............................................................................................................48

11. FINANCIAL EVALUATION.............................................................................................................49
11.1 PROFITABILITY...............................................................................................................................49
11.2. PAY BACK PERIOD.......................................................................................................................49
11.3. INTERNAL RATE OF RETURN AND NET PRESENT VALUE...............................................49
11.4 NET PRESENT VALUE (NPV)......................................................................................................49
11.5 LOAN REPAYMENT SCHEDULE.................................................................................................50
11.6 SENSITIVITY ANALYSIS................................................................................................................50
11.7 ECONOMIC BENEFITS...............................................................................................................51
12. ENVIRONMENTAL IMPACT ASSESSMENT...........................................................................52
13. CONCLUSIONS AND RECOMMENDATIONS........................................................................53
14. ANNEXURE.............................................................................................................................................54
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List of ANNEX
Annex 1: PROJECTED INCOME STATEMENT (BIRR’000).......................................54
Annex 2: PROJECTED BALANCE SHEET (Birr’000).....................................55
Annex 3: PROJECTED CASH FLOW STATEMENT (Birr ‘000)......................56
Annex 4: PROJECTED PROJRCT WORTH MAESURE (NPV, IRR, and PB) AFTER TAX.
Birr '000).............................................................................................................57
List of Figure
Figure 1: Flour Mill Process Flow Chart..............................................................21
Figure 2: Flour milling block flow diagram.........................................................27
Figure 3 : Organizational Charts.........................................................................41
List of Table
Table 1: Flour Production Machinery...................................................................28
Table 2: Production Capacity Utilization of Flour Mill Plant................................29
Table 3: PRODUCTION PROGRAMME.....................................................................29
Table 4: Annual Requirement for Raw materials at Flour Plant...........................29
Table 5: Utilities Requirement for Factory...........................................................30
Table 6: Furniture and Fixtures Requirement for the Factory.............................31
Table 7: Transportation Vehicle Requirement for the Factory............................31
Table 8: APPARENT CONSUMPTION OF WHEAT FLOUR.......................................33
Table 9: Demand projections (tons)....................................................................34
Table 10: Demand – supply gap (Tons)...............................................................35
Table 11: Flour Plant Production Plan by years and varieties..............................35
Table 12: Annual Land Rent cost (THI.BIRR).......................................................37
Table 13: Infrastructures and Costs Related to Installations...............................37
Table 14: Land Use Plan and Related Cost..........................................................38
Table 15: Pre-Operation Plan of the project........................................................39
Table 16: PRE – OPERATING EXPENSE...........................................................40
Table 17: Human Resource Requirements..........................................................42
Table 18: Summary of Investment Costs for project (in Birr)..............................43
Table 19: Summary of Operating Costs for project (in Birr)................................43
Table 20: Project Investment and Working cost by Source of the Fund..............44
Table 21: loan repayment Schedule....................................................................50
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I. EXECUTIVE SUMMARY
This profile envisages the establishment of a plant for the production of wheat
flour with a capacity of 48,000 tons per annum at full production year. The
present demand for the proposed product is estimated at 399,710 tons per
annum. The demand is expected to reach at 799,023 tons by the year 2020 The
project is financially viable with an internal rate of return (IRR) of 94% and a net
present value (NPV) of Birr 264.3 million before tax and an internal rate of
return (IRR) of 103% and a net present value (NPV) of Birr 2681.5 million, after
government tax discounted at 10%.
This feasibility study envisages the establishment of a plant for the production
of wheat flour with a capacity of 8-150 tons per day at full production period.
The produce the best flour is one that corresponds exactly to the needs of the
customers. Is the flour which gives the maximum extraction (flour from wheat)
in the mill?
The country`s requirement of wheat flour is met through local production and
import. The present (2020) demand for flour is estimated at 399,710 tons. The
demand for the product is projected to reach 739,836 tons and 799,023 tons by
the years 2028 and 2029, respectively. The demand and supply gap is higher
due to the estimated current production of product is about 29,608 tones/year
(2021) and the demand is reached 428,921 tomes/year (2029).
The principal raw material required is wheat PP bag, electricity, water, Sewing
thread and utilities (fuel, Oil and lubricants). All are locally available while the
remaining raw materials have to be imported.
The total investment cost requirement is estimated including working capital is

estimated 44.536 Million Birr, out of which Birr 27,944,400 million is required for
fixed investments of plant and machinery. From the total investment cost the
highest share (Birr 27.944 million or 63%) is accounted by fixed investment cost
followed by initial working capital (Birr 15.395 million). From the total
investment cost Birr 27,944,400 million or 63% is required in foreign currency.
The project can create employment for 56 skilled people and 37 casual labor
and totally 93 work opportunities for the project area. The establishment of
such factory will have a foreign exchange saving effect to the country by
substituting the current imports. The project will also create backward linkage
with the agricultural sector and also generates income for the Government in
terms of tax revenue and payroll tax.
To full fill his desire after looking the gaps and opportunities Mifita Kedire
company has Proposed new investment on Flour Mill Processing Plant
establishment over 5,680 square meter area and investment of Et. Birr
44.536 Million Birr for the envisaged project
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2. INTRODUCTION
Ethiopia is one of the largest grain producers in Africa, there are still large
pockets of food insecurity, and it is a net importer of grains. The principal grain
crops grown in Ethiopia are teff, wheat, and barley, which are primarily cool-
weather crops; and corn, sorghum, and millet, which are warm weather grain
crops. All grains in Ethiopia are consumed as food, with crop residues and by-
products commonly fed to livestock. It is estimated that farmers hold about 10
percent of their grain production for planting (included in the FSI Consumption
category in the PSD). Despite Ethiopia’s large livestock population (the largest in
Africa), the commercial feed industry is just beginning, mostly located around
Addis Ababa and slightly to the south. Feed is by far the biggest constraint to
the livestock sector. There are about 20 feed millers in the country, but most of
them produce primarily for their own consumption. Only about half produce feed
solely for sale.
Flour is a food item, which is finely ground meal of cereals such as wheat,
maize, sorghum, rice, etc. obtained by milling and blending various streams of
different quality. It mainly contains endosperm and certain quantity of bran.
Wheat flour on average contains from 14% to 16.5% moisture. Based on its
baking quality and other quality indices such as gluten quality and content,
colour, moisture content, granular size of particles and others, flour is divided
into different grades. The basic application of flour is for bread making, cakes
and biscuits, and porridge at household level. Semolina, a product obtained by
milling extra hard (durum) wheat, is also used in pasta and macaroni making.
The byproduct bran is used as animal feed preparation and composite
preparation for the urban and rural agricultural inputs.
The investor is planning to invest on the establishment of manufacturing plant

for the production of wheat flour. These products are currently one of the most
importable value added biscuit and other testy food in Ethiopia and the project
is in line with government interest and policy which focuses on value addition
market oriented products. It is also in line with agricultural marketing value
addition strategy of the Sidama National Peoples Reginal government and
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contributes to the recent undertakings of the region on agricultural

development corridors plan.
The country`s requirement of flour product like biscuit is met through local
production and import. The present (2020) demand for flour is estimated at
399,710 tons. The demand for the product is projected to reach 739,836 tons
and 799,023 million tons by the years 2028 and 2029, respectively.
The principal raw material required is wheat PP bag, electricity, water, Sewing
thread and utilities (fuel, Oil and lubricants). Wheat flour are locally available
while the remaining raw materials have to be imported.
The proposed project is will flour production of export standard products. The
flour production manufacturing targets import substitute market after
production of the processed wheat products at the investment of flour mill
industry plantation studied by the investor at 2700 square meters. This flour
production industry project average production capacity is 48,000 tons per
annum at full production year (year three). The proposed investment area for
the envisage project found at Sidama National Peoples Reginal state, at Dara
Woreda Mechsio-Millennium town. Location of the Project area is situated
between a latitude and longitude of 7°3′N 38°28′E and 7.050°N 38.467°E, an
elevation of 1708 meters above sea level.
2.1 RATIONAL BEHIND THE PROJECT

The some of the rational for establishment of the envisage project for the
production of exportable standard flour with using high value added technology
which will established top quality flour that are sustainably supply for the local
market are,
Policy: Government the second five years strategic plan, which promotes new
investment in agro-industrial sector and specially encourages agro processing
using high value added technology introduction for the production of high
standard flour which have a great advantage for others investment
development currency generating directly or indirectly contributes to fill full the
Ethiopia supply gape to local market ones.
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Labor: There is plenty of skilled and semi-skilled labor in Ethiopia. The country
has a good education system that churns out a number of graduates in most
key professions at all levels. Therefore for this project there is an opportunity to
employees’ cheap labor.
Availability of raw materials: The principal row materials are wheat PP bag,
electricity, water, Sewing thread and utilities (fuel, Oil and lubricants) currently
were available at domestically, at Hwassa Administrative town which processed
by this company and marketing according to Ethiopia industry product
marketing legislation at domestic levels.
Market: High market demand supply gap at the national levels and to fill full
this gape there is availability of high potential of flour supply of raw materials
for this envisage project at the local level.
2.2 SOCIO-ECONOMIC JUSTIFICATIONS

The project is expected to fill full the Ethiopian flour demand supply gape to
national market. It is important for the country to contribute foreign exchange
substitution and partly through the employment opportunity for the non-job
women’s and youths to generate their income. The project will totally employ 93
workers of which 43 skilled workers for technical and production staff and 13 for
management and marketing workers for the marketing and administrative staff
totally 56 employees in permanent employment bases and for more than 37
casual laborers in daily base for more than eight months.
The Federal as well as the Regional governments would also receive substantial
amount of revenue in the form of different taxes including profit tax. The project
will at average will generate tax revenue of 29.51 million birr per annum at the
project ten year life.
2.3 COMPANY / APPLICANT PROFILE

2.1.1 Name of Owner Ato. Mifita Kedire
2.1.2 Nationality: Ethiopian
2.1.3 Owner(s): Ato. Mifita Kedire
2.1.4 Type of business: Wheat and Maize Flour Production
2.1.5 Full Address : Addres Mobile: 09-16-33-34-00
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2.1.6 Project Name: FLOUR MILL FACTORY

2.1.7 Status of the Project: New
2.1.8 Proposed Site: Dara woreda Administrative, Sidama Regional State
2.1.9 Specific location: Mechiso- Millennium Town
Size of proposed land/Shade: 5680M2
Total estimated capital: 44.536 Million Birr
Legal Form of organization: Sole/Proprietor
Registering office: Sidam Regional state Investment Office
Taxpayer Identification No.: ----------------
Right of Occupancy: Own Property
2.4 PROMOTER’S PROFILE

The anticipated “Wheat Flour Production Project” is initiated by the newly
established FLOUR MILL FACTORY by Mr. Mifita Kedire. The share of the
ownership is held by Mr. Mifita Kedire. He was born in Ethiopian-and currently
he has an Ethiopia citizenship. The project envisages establishment of a new
Flour Mill enterprise with specific focus on wheat flour value addition processing
as its immediate objective. In view of their education and work experiences, he
brings a wealth of experience to the Company. Mr. Mifita Kedire is the general
manager of the project. His educational back ground and more than 10 years of
work experience in the area of processing flour marketing, and vastly involved in
money management and administrations. This is fesible for the current wheat
flour mill and marketing. Thus, the project will create better employment
opportunities for the local communities and facilitates a good deal of
technological transfer to the country.
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3. BACKGROUND INFORMATION
3.1 ETHIOPIA FLOUR PRODUCTIONS AND MARKETING
3.1.1 ETHIOPIA FLOUR PRODUCTION STATUS
Processing of food grains and other agricultural products is the most important
stage in preparing them for the ultimate consumption. Almost all the
agricultural commodities have to undergo one or more stages of processing
before they reach the consumer. At present the work of processing is largely
done by middle men owning the processing units and a good chunk of the
ultimate price paid by the consumer goes to these intermediaries. This can be
eliminated if the processing activities are organized on a private sector so that
they call get better return on their produce and in some cases bring down the
sales price.
Policy attention to the sector was always considerable, and its importance has
been renewed in the latest Poverty Reduction Strategy, the Plan for Accelerated
and Sustained Development to End Poverty (PASDEP). PASDEP puts forward a
development strategy based on accelerated economic growth, part of which is
hoped to be achieved via increased private commercialisation and market
integration. On the average, farmers marketed 84% of their farm production.
Overall, industry contributed 10% to the total value of output sold. Although in
Hawassa and the surrounding town, there is high bread flour demand, flour
milling establishments in Mechiso Millennium Town and the surrounding town
immense flour supply to the surrounding community is left idle
Though flour industry in Ethiopia has been in existence since long, real fillip
came only in the later part of 20th century. The contributing factors were
urbanization, resulting in increased demand for ready to eat profiles at
reasonable costs etc. The Ethiopia flour industry can, therefore, explore this
aspect for batter food value and product quality. The use of soy flours and soy
products in bakery products not only improve nutritional quality of bakery
product, but also increase profit margins of an entrepreneur due to improved
product quality.
3.1.2 ETHIOPIA FLOUR MARKETING
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3.1.2.1 FLOUR MILLING PROCESSES IN ETHIOPIA ECONOMY

Currently, there are around 300 flour mills in Ethiopia with a total of 3.7 million
tons of milling capacity per year. The flour mills are able to obtain the required
wheat from the Ethiopia Grain Trade Enterprise (EGTE), which controls all
commercial wheat imports and makes wheat available to flour mills at a
government subsidized rate (CSA, 2014).
Wheat imports account for roughly thirty-three percent of the wheat market.
The flour mills get the remainder of the wheat supply from the local market. In
current fiscal year, the wheat price in the local market is about forty two percent
higher than EGTE wheat prices and its quality is much better than imported
wheat (EMA, 2016).
The small and marginal farmer cannot afford to take up this aspect of
agriculture because of limited resources in terms of finance, technical skill,
knowledge and limited marketable surplus. Consequently, it is being undertaken
by the middle men in the private sector. For achieving maximum economy,
processing units may be set up close to the sources of supply. A processing unit
or society can offer a number of advantages to the rural people.
1. It can help in the decentralization of industries.

2. It may be cheaper because of low wages of labour, low rent of building and
low cost of transportation.
3. The by-products can also be used in the urban and rural areas.
4. It helps in reducing unemployment among the urban and rural masses.
Processing can be done either by indigenous methods or by mechanical power.
The farmer can be of advantage only in those areas where unemployment and
under employment is rampant. But, in areas where there is shortage of man-
power and where the problem is one reducing the cost, processing by
mechanical power would be economical
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4. GENERAL DESCRIPTION 0F THE PROJECT

4.1 LOCATION OF PROJECT AREA
Mifita Kedire Flour-Mill Factory project area is located in Dara Woreda. Dara
Woreda is one of the woreda in the Sidam reginal state region. The woreda is one of the
major coffee producer woredas of the Sidam reginal state. Dara woreda is located at
about 350 km South of Addis Ababa and about 75 km south of the Hwassa town Sidama
Reginal State capital city. The specific location of Mechiso-Millennium town which is
lies in the East direction of Hawassa to Dilla international road route. The geographical
location of Dara woreda is 6° 30′ 0″North Latitude and 38° 25 0″ East Longitude with an
elevation of 1500m to 1811M meters above sea level. The specific feature of the
project area in terms of temperature is from 28 to 24oC and a rainfall pattern range is
average 1200-1300 mm per annum.
4.2 PHYSICAL AND NATURAL CONDITION OF PROJECT SITE

4.4.1 TOPOGRAPHIC FEATURES
The project site is located within the Leak Abya water basin. The topographic
features of the proposed project area are characterized by slightly too gently
sloping terrain. The average altitude of the project area is ranging from 1500m
to 1811M m.a.s.l; with general land gradient of 1.2 to 1.5%. The topography of
the project area generally indicates availability of favorable opportunity for low
cost installation of infrastructures and site development requirements.
4.4.2 CLIMATE
Dara Woreda has a tropical savanna climate (Köppen Aw) though it borders on a
subtropical highland climate. There are two seasons: a lengthy though not
intense wet season from March to October and a short dry season from
November to February. The extra cloudiness of the wet season is sufficient to
make it substantially cooler than the dry season despite a higher sun angle;
however, the coolest morning temperatures, often close to freezing, occur
during the dry season
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Temperature: According to the climatic data obtained from the Ethiopian

Meteorology Agency (Hawassa Branch); the average minimum and maximum
temperatures of the project area are 25 o C and 30 o C respectively.
Rainfall Trends: The project area has average annual rainfall of 1200-1300
mm; which is higher than the average precipitation requirements of most
agricultural production.
4.3 THE SOIL

Soils are the most essential factor for the living things in this world including to
human being directly and indirectly. The characteristics of soil play a vital part in
the plant’s ability to extract water and nutrients for their growth. If plants are to
grow to their potential, the soil must provide a satisfactory nutrition and
environment for plant growth.
4.4 WATER RESOURCES

The project is situated distance from the river, more than 1000m away. So water
is not a big problem in this area since many homes depend on water from
ground water. The project is not expected to have any adverse impact on
ground water quality as the level of waste emanating from the project will be
low and directed to the properly installed waste hip tank
4.5 SOCIO-ECONOMIC ENVIRONMENT

4.5.1 POPULATION PROFILE
Based on the 2007 national census reported a total population for this woreda of
155,265, of whom 76,475 were men and 78,790 were women; 10,660 or 6.87%
of its population were urban dwellers. The majority of the inhabitants were
protestants, with 85.54% of the population reporting they observed this belief,
while 7.04% of the population said they practiced Ethiopian Orthodox
Christianity, and 2.55% of the population were muslim.
4.5.2 INFRASTRUCTURE AND SERVICES

When compared with others Woreda town, Mechiso-Millennium town has good
infrastructure services, such as Electricity, Mobile networks and access to water.
The other good things are, road networks are in a very good condition, and most
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of kebele are interconnected by asphalt and all-weather road while the remains
are under construction.
Telecommunication: According to the data collected from the Bureau of

Finance and Economy, the town and the surrounding Mechiso-Millennium town
in the project area have access to different telephone services, such as, wire
line, mobile telephone service, and wireless.
Financial Institutions: There are several Government Bank, Dashen Bank

Ormia Cooperatives Bank and Nibe Bank and other 5km at dilla town.
4.5.3. SETTLEMENT PATTERN

Most of inhabitants of Mechiso-Millennium town can be characterized as crop
growers and agro pastoralist. As usual trend on the same agro ecology of
Ethiopia, Crops producers lives in a closest manner. Whereas population the
others are engaged in mixed agricultural productions including livestock
production.
4.5.4 HEALTH FACILITIES

Regarding community’s health facility, health post and private clinics are
available in the project area. In addition to that, Referral Hospital and Health
centers as well as private clinics are accessible within short distance at Dilla
town. Therefore, most of the locality people have access for medium level
health services in their area.
4.5.5 EDUCATION
Hawassa University, established in 1999 through the merger of a number of
higher education institutions, is based in the city and Dilla University found near
distance to Mechiso-Millennium town.
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5. THE PROJECT
5.1 PROJECT DESCRIPTION

Flour is a food item, which is finely ground meal of cereals such as wheat,
maize, sorghum, rice, etc. obtained by milling and blending various streams of
different quality. It mainly contains endosperm and certain quantity of bran.
Wheat flour on average contains from 14% to 16.5% moisture. Based on its
baking quality and other quality indices such as gluten quality and content,
colour, moisture content, granular size of particles and others, flour is divided
into different grades.
For this project quality baked products, may define flour by the following
characteristics such as Colour (whiteness), Strength: is the ability of the flour to
be made into large “well-piled” loaves, provided any deficiency in the rate of
gas production in the dough is adjusted in suitable manner, tolerance: the
ability to produce satisfactory results over an extended fermentation period,
absorption: the ability of flour to carry maximum amount of moisture in the
dough and uniformity” shipment of the same type o flour from the same mill are
expected to be uniform in quality
5.2 PRODUCT AND APPLICATIONS

The basic application of flour is for bread making, cakes and biscuits, and
porridge at household level. Semolina, a product obtained by milling extra hard
(durum) wheat, is also used in pasta and macaroni making. The by-product bran
is used as animal feed preparation.
Food grain processing involves transforming the harvested produce to

consumptive produce. The principal types of processing of wreath flour are
drying, parboiling, husking, polishing, grinding, separating, cooling etc. Rice,
wheat, pulses and millets are some food crops which are processed for use.
After harvesting the wheat grains are separated from the ears / either by hand
or by weighted wood frame drawn by bullocks. The beaten stuff is then
winnowed. Nearly started the wheat in Ethiopia is milled and cleaned before it
is consumed. This can be done both commercially as well as in home. Wheat
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milling involves grinding the kernel into a whole wheat flour and if desired
separating the bran and germ from the more digestible white endosperm.
Flour making is a conventional activity in many parts of the country. Despite the
advent of modern, large capacity and automatic flour making plants, large
section of people especially in semi-urban and rural areas still prefer fresh bared
and biscuits from local bakery as they are cheap and offer many varieties. These
manufacturers are able to cater to some typical local palate as well. Thus, they
are able to withstand competition from organized sector units.
Wheat flour have a good food value with substantial energy, protein,
carbohydrates and minerals apart from pleasing texture and taste. Baking
industry occupies an important position among Ethiopia food processing
industries. Wheat flour products are ready to eat and convenient to use.
Biscuits and Bread form the major baked foods accounting for over 70% of total
bakery products produced. The industry largely continues to be in the
unorganized sector contributing to over 70% of the total production. Bakery
products once considered as sick man's diet have now become an essential food
item of a sizeable segment of society.
5.3 JUSTIFICATION OF THE PROJECT: WHY IT IS PROPOSED?

There are a number of reasons that led Mifita Kedier flour Production
Project to opt for the specific project: Firstly, Ethiopia’s climate is suitable for
most industrials including crops of grains coffee, oil seeds and fiver crops.
Secondly, the Country is among the major producers of wheat in Africa and has
a well-established linkage to the major local markets. The growing trends of the
establishment of manufacturing industries in the country as a whole and flour
milling factories in particular, and their demand for raw material inputs food
grains for manufacturing of flour has made the business very important. The
enabling policy environment prevailing in Ethiopia; which encourages investors
to fully participate by investing in the industrial sector, is also another important
factor to initiate the project. Besides the suitable climate of Ethiopia grains
cultivation; Mifita Kedire flour Production Project has a distinct
comparative advantage from the very beginning by adopting a modern milling
machine. The establishment of ECX and its trade facilitation was also another
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factor we looked at. Different articles on the production of flour were used as a
reference while writing this Business Plan.
5.4 SUPPORT FOR THE PROJECT

There are some supportive roles expected from the Sidam National Peoples
Regional states and wereda administrative in ensuring smooth and effective
implementation as well as long-run sustainability of the anticipated project.
Particularly important roles for the states are establishing and adjudicating
industry requirements. This includes, among others, monitoring and regulating
externalities and third party effects on industry establishment and subsequent
implementation of the project, maintaining a supportive legal framework,
providing relevant technical and organizational supports towards facilitating
effective and smooth implementation of the project. The latter particularly
involves access and use of data/information and technical advice from
government institutions and line bureaus/agencies
5.5 PURPOSE OF THE PROJECT

This profile envisages the establishment of flour milling of exportable standard
by applying good industrial management standards and marketing the product
to national flour marketing. The overall goal of the project is to contribute
towards the economic development of Ethiopia through using the existing
investment opportunities in the Country and taking advantage of the expressed
policy incentives that emphasize on greater commercialization of agriculture
industry and enhancing private sector development.
5.6 BUSINESS OBJECTIVES

The overall goal of the project is to contribute towards the economic
development of Ethiopia through using the existing investment opportunities in
the Country and taking advantage of the expressed policy incentives that
emphasize on greater commercialization of agriculture and enhancing private
sector development.
The project's contributions to the economy, upon realization of a full production
level within three years; include creation of jobs and permanent employment
opportunities to the local people as well as bringing considerable annual income
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in hard currency and tax revenues; part of which will be reinvested in the
immediate community infrastructure
 The business objectives of the envisaged industry are profitable production
of flour mill for national market
 As a business firm one of objective of the Company is to earn higher income
from the demand supply gap exists in the sector at large and at the
international markets.
5.6.1 MAIN AND SPECIFIC OBJECTIVE

Main objective: The project’s main objective is to implement an industrial
investment project using modern milling machine for the production of export
and local-focused flour milling with high standards and quality of production;
while ensuring optimal economic returns as well as socially and
environmentally acceptable processing system that will attain full production
level within three years starting from the 2013 production season. Through
ascertaining high standards and quality of its production; the anticipated
project will provide to the consumer.
Specific objective: The specific objectives of the project are:

 The production of flour milling in a socially and environmentally
acceptable way;
 To enhance the production of standard flour and reduced the demand of

bread flour;
 The production of flour in a socially and environmentally acceptable

way;
 To raise the standard and quality of flour supplying nutritive product
through collaboration with the country’s research and development
organizations;
 Reduce the environmental impact of our operation by devising methods
industrial waste disposal method and use of Bio-fuel;
 To allocate 2% of our profit to reinvest in the community; and,
 Create jobs and help locals acquire skill through training.
5.7 TECHNOLOGY AND ENGINEERING
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5.7.1 TECHNOLOGY AND PROCESSING

5. 7.1.1 GENERAL PRODUCTION PROCESS OF FLOUR MILL PLANT
The flour milling process starts with the receiving and storage of whole grain.
Grain is stored in groups of steel or concrete silos laid out very similar to grain
elevators. The grain is the moved through the cleaning system which is housed
in the cleaning tower. A variety of cleaning equipment is housed in the multi-
story cleaning tower, and cleaning is done with machinery using air currents,
magnets and screens to separate the wheat from stones, sticks, other grains
and undesirable elements. Equipment typically consists of separators,
destoners, magnets, aspirators and other cleaning machinery. After cleaning,
the grain is moved to temporary storage silos (known as clean storage) prior to
tempering.
Immediately prior to milling the wheat is moved to tempering bins at one end of
the milling tower where the clean wheat (or other grain) moisture content is
adjusted to approximately 16%. The milling process is ready to begin. The flour
milling process consists of the break system, purification or sizing system, the
reduction system, and the tailing system. The mill tower usually consists of 4 to
7 levels with integral bins at each end of the tower. At one end are the
tempering bins, and at the other end are the finished flour bins. Between the bin
clusters are many levels housing the various systems that complete the milling
process. The tower is usually constructed from precast or slips form concrete.
Sometimes smaller mills (which are part of a larger process) are constructed
using only steel.
Milling is the process by which wheat is ground into flour. Separating the wheat
grain into its constituents (bran, germ and endosperm) involves the following
processes
 Storing as Wheat arrives in the mill it is passed through a cleaning
process to remove coarse impurities and is then stored according to its
quality. This is mainly determined by the hardness, protein content and
gluten quality of the wheat
 Wheat Intake and Pre-cleaning:- The major unit operations are
dumping, conveying, weighing, pre-cleaning and conveying to storage
silos or transferring to the working bins of the cleaning room.
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 Wheat Cleaning and Preparation: Cleaning begins with screening to

remove coarse and fine materials and the grain is separated by size,
shape and weight. The main unit operations involved are weighing,
screening, destoning, impurity separation, ferromagnetic separation,
scouring, aspiration, dampening, tempering and etiolating. The finished
product, whole pure wheat, is then passed into conditioning bins.
 Conditioning: - Takes place before milling to produce uniform moisture
content through the grain.
 Gritting; - after conditioning, different batches of whet are balanced
together (gristle) to make a mix capable of producing the required flour
quality
 Milling: - Major operations involved are weighing, breaking open,
scalping, scratching, detaching, sifting, purifying, milling (grounding),
resifting and entoleting. Essentially this is the separation of the bran and
germ from the endosperm and the reduction of the endosperm to a
uniform particle size (flour). This is done by a sequence of breaking,
grinding and separating operations. The quality of the wheat going into
the mill, e.g. protein content, will determine the types of flour to be
produced. By blending together the many different flour streams
produced by the mill, a miller can create further variations in features
such as flour color.
 Packing and Dispatching: - The major operations involved are
collection of flour streams and bran, mixing and aerating, resifting,
entoleting, packing, sewing, loading and dispatching. The process does
not release any pollutant to the environment
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Figure 1: Flour Mill Process Flow Chart

5. 7.1.2 DESCRIPTION OF THE PLANT UNIT
1.Magnetic Separator: The wheat first passes thru magnet that removes iron
and metal particles
2.Separator: Vibrating screens remove bits of wood and straw and almost
anything bigger or smaller than wheat
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3.Aspirator: Air currents act as a kind of vacuum to remove dust and lighter
impurities
4.De-Stoner: Using gravity, the machine separates the heavy material from
the light to remove stones that may be the same size as wheat kernels
5.Cockle Cylinder: Wheat passes through a separator that identifies the size
of the kernels even more closely. It rejects anything longer, shorter, more round,
more angular or in any way a different shape
6.Scourer: The scourer removes outer husks, crease dirt and polish the outer
surface with an intense scouring action. Currents of air pull all the loosened
material away.
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Conditioning/Tempering: Wheat is conditioned for milling. Moisture is added

in certain amounts to toughen the bran and mellow the inner endosperm. This
help the parts of the kernel to be separated easily and cleanly
•Tempered wheat is stored in bins from 8-24 hours, depending on the type of
wheat -soft, medium or hard
Scanner: Wheat is scanned & discolored kernel are separated
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Grinding (Milling): Milling process is a gradual

reduction of the wheat kernels to produce particles
of endosperm which are then graded & separated
from the bran by sieves & purifiers
•Each size returns to corresponding rollers & the
same process is repeated until the desired flour is
obtained
The rolls are paired & rotate inward against each
other, moving at different speeds
•Just one pass through the corrugated "first break"
rolls begins the separation of bran, endosperm and
germ
Sifting: The broken particles of wheat are
introduced into huge, rotating, box-like sifters where
they are shaken through a series of bolting cloths or
screens to segregate the larger from the smaller
particles
Up to 6 different sizes of particles may come from a
single sifter, including some flour with each sifting.
Larger particles are shaken off from the top, or
"scalped," leaving the finer flour to sift to the
bottom
•These fractions are sent to other roll passages and
particles of endosperm are graded by size and
carried to separate purifiers
Purifiers: In a purifier, a controlled flow of air lifts off bran particles while at the
same time a bolting cloth separates and grades coarser fractions by size and
quality
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Reduction Rolls: Reduction of particle size of semolina into fine flour by

passing it through a pair of smooth rolls
Final Product: The process is repeated over and over again, sifters to purifiers
to reducing rolls, until the maximum amount of flour is separated, consisting of
close to 75 percent of the wheat
5.7.2 GENERAL LAYOUT OF PLANTS

The plant will have the following structured layout to perform the production
objectives of the plant.
After a flow diagram showing major unit operations is developed by the process
engineer, the layout of the plant must be worked out, concurrently, by the
process and building design engineers. The key to successful design of any
process facility should involve the total integration of building layout and
process unit operations. This first begins by laying out the major process
equipment and bins.
The process engineer then designs the secondary process systems layout.
Simultaneously, the building engineer roughs out the building layout based on
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the major unit operations taking into account engineering and building code
limitations. Providing an enclosure for the unit operations and sufficient space
for access and maintenance are key for layout of the processing facility. Human
occupancy considerations, although important, are secondary and are usually a
cursory design will review for this flour milling process facilities. The general lay
out of the factory is shown below in the figure 2.
Figure 2: Flour milling block flow diagram.

5.7.3 SOURCE OF TECHNOLOGY
The technology of flour milling is available in countries like India, China or
Europe. One supplier of machinery and equipment for the production of wheat
flour is stated as follows:
 Jiashengeg Grain Machinery Company
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 No.8 jingim Road, Kaifeng, Henan, China (main land)

 Telephone: 86-378-2850850
 Fax: 86-378-2850850
 Mobile phone: 008613937853263
5.7.4 ENGINEERING
 Address: 412-TI AKASH RATH, B/H PARISEEMA, C.G. ROAD,
 AHMEDABAD 380006, GUJARAT, INDIA Phone: 91-79-26564613/26566149
Mobile: +919824099013 Fax: 91-79-26566149
5.7.4.1 MARHINERY AND EQUIPMENT

Machinery and equipment required by the envisaged plant is given in table 1.
The total cost of machineries and equipment processing 48,480 tons of pure
wheat annually to produce 48,000 tons of flour at 100% full production capacity
year and is estimated at Birr 15,057,900, out of which Birr 14.8 million is
required in foreign currency.
Table 1: Flour Production Machinery

Machinery & equipment (Flour)
Equipment Cap/Unit Qt in Rate Price
No.
Machinery cost ( Complete Set) 120 Ton/24 2,800,0 12,6
Hrs 1 00 00,000
Tools and other equipment required 1 25,000 25,000.00
Consumable items such as Nut, Bolt 1 25,000 25,000.00
Weighing scale 4 Nos. 4 55,000 220,000
12,870,00
Total Machineries Cost 0
Estimated ocean freight (7%of FOB) 900,900
Estimated insurance (5% of FOB) 643,500
Estimated Inland Transport (5% of FOB) 643,500
TOTAL MACHINERIES AND EQUIPMENT 15,057,90
COST 0
5.8 FLOUR PRODUCTION
5.8.1 PLANT CAPACITY AND PRODUCTION PROGRAM
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5. 8.1.1 FLOUR MILLING PLANT CAPACITY

 Based on the market study, capital requirement and minimum economy of
scale, the flour mill plant will have a maximum capacity of 40 tons per
shift. The envisaged plant is expected to operate in double shifts of 8
hours each a day for 300 working days a year.
 Product yield 80% for flour and 20 % for Brian. For the detailed
information the flour milling capacity is shown below table 2.
Table 2: Production Capacity Utilization of Flour Mill Plant

Production Plan and Capacity Utilization of Flour Production Line
Year Y-1 Y-2 Y-3-10
Production capacity single shift( T/12 Hrs) 40 40 40
Production capacity two shift(Tones/24H) 80 80 80
Extraction Efficiency 80% 90% 100%
Project Production annually Flour (%) 80 80 80
Project Production annually Brian (%) 20 20 20
5.8.1.2 PRODUCTION PLAN/PROGRAM

The plant will start operation at 80% of its installed capacity during the first
year, and will increase production to 90% in the second year, and then to
increase at 100% in the third year and then after. The proposed production
programme is given in table 3.
Table 3: PRODUCTION PROGRAMME
Year y1 y2 y3-10
Capacity utilization (%) 80 90 100
Production (tons) Flour 30,720 34,56 38,400
0
Bran 7,680 8,640 9,600
5.9. MATERIALS AND INPUTS

5.9.1 RAW MATERIAL AND AUXILIRY MATERIALS
The principal raw material for flour production is wheat grain. Flour for baking
bread is produced from hard wheat or a blend of hard and soft wheat, while flour
for cakes and biscuits is milled from soft wheat. Wheat can be available in
different part of the region. The impurity rate for local wheat should not exceed 8%.
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Auxiliary materials required are pp bags of different size for packing flour and
sewing thread. These can be easily obtained from local markets. The estimated
annual cost of raw and auxiliary materials is given in table 4 below. The total
annual cost of raw materials is estimated at Birr 350.849 million.
Table 4: Annual Requirement for Raw materials at Flour Plant

Annual requirement for raw materials at Flour Plant
Description Unit of Qty. At Unit Price Cost, ('000 Birr)
Measur Y-3 Birr/Unit F.C. L.C. Total
e
Raw Materials/Wheat/ Tones 48,480 6615 320,695 320,695
50 Kg PP bag Pcs 6,240 13 82.555 82.555
PP bag (10kg) 3,360 8.82 29.635 29.635
PP bag(5kg) 4,800 8.82 42.336 42.336
Sewing thread 30,000 30,000
Total cost 350,849.52 350,849.5
6 26
5.9.2 UTILITIES REQUIREMENT
Main utilities would be electric, fuel and water. From 80-150t/D Electric Maize
Wheat Rice Corn Flour Grinding Mil is:
 Distribution transformer station, loading capacity averaging total power
450 Kw annually and Power consumption 50 kw/hour, 3-phase industrial
meter is estimated to fulfill the requirement of power.
 Water supply would be through ground water drilled at factory compound
and all associated works to supply 10,000 Liter/day of water qualities
which fluffiest WHO water quality requirement
 The estimated annual requirement at full production capacity of the plant
and the corresponding cost are given in table 5.The total annual cost of
utilities is estimated as Birr 536.476.
 The annual quantities and cost of major utilities of factories plants is as
shown at table below
Table 5: Utilities Requirement for Factory

Utilities Requirement for factory
Description Unit of Qt at Y-3 Unit Price, Cost, ('000 Birr)
Measur Birr/Unit
Electricity kW.Year 720,000 0.44 317.520
Water M3/Year 2,400 4.41 10.584
Fuel 208.372
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total 536.476
5.10 FURNITURE AND FIXTURES COST

Furniture and Fixtures equipment required by the envisaged plant is given in
table 6. The total cost of Furniture and Fixtures is estimated at Birr 188,500.00,
all materials are available in the local area and is not required in foreign
currency.
Table 6: Furniture and Fixtures Requirement for the Factory

Description of Work Unit Qty Cost ( Et. Birr)
Plant manager office
Executive Table Pcs 1 15000 15,000.00
Swivel Chair Pcs 2 5000 10,000.00
Chair normal Pcs 7 3000 21,000.00
Guest chair Pcs 7 1500 10,500.00
Computer Table Pcs 1 3000 3,000.00
Filing Cabinet Pcs 1 5,000 5,000.00
Normal table Pcs 5 3000 15,000.00
Shelf with locker Pcs 2 3500 7,000.00
Shelf ( 2 x 2) Pcs 4 4000 16,000.00
Table with sink and Drawer Pcs 2 5000 10,000.00
Computer with printer Set 2 38000 76,000.00
Total 188,500.00
5.11 TRANSPORT MACHINERIES REQUIREMENT AND COST
A loading vehicle would be required for providing services for transportation
and marketing of finished products and supply of some of raw materials(s)
from market to factory or any other destination. For this purpose a
transportation vehicle has been proposed which will cost around Et. Birr
3,100,000. For the detailed information the corresponding cost are given in
table 7.
Table 7: Transportation Vehicle Requirement for the Factory

Equipemnt Use Required Cost
Use Unit Qty LC( Birr)
FSR-Isuzie( 5 Tones) Flour plant use 1 1,500,00 1,500,000
0
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Toyota Double Cub Managing men 1 750,000 750,000

Mini Service Truck( Service 1 850,000 850,000
TOATL VECHEL PURCASE 3,100,000
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6. MARKET STUDAY AND APPLICATION

6.1 PAST SUPPLY AND PRESENT DEMAND
6.1.1 GENERAL OVER VIEW
Commercial imports of wheat have risen in the last couple of years, which is an
indication of the government’s efforts to stabilize wheat prices following a
significant increase in domestic food prices. The government started importing
wheat through Ethiopia Grain Trade Enterprise (EGTE) which increased the
domestic supply of wheat at a subsidized price and lowered the domestic
market price. For importers, wheat importing is no longer a profitable business
due to highly subsidized wheat imports through EGTE, price increases in the
international market, and limitations on obtaining foreign exchange. This
situation will probably continue into the foreseeable future.
Wheat from EGTE is sold to flour mills, consumer associations, and organized
government and privately employed staffs. Food aid wheat is approximately
twenty percent of the total wheat imported into the country and is mainly from
the US.
Only 30 percent of the total 210 major flour mills in the country are getting
subsidized wheat for their mills, and the price of this subsidized flour is capped
by the Ministry of Trade (MOT). Mills located outside of the capital prefer to buy
from the local market due to lower transportation costs and to the fact that the
price of flour made by those mills is not capped.
6.1.2 PAST SUPPLY AND PRESENT DEMAND ANALYSIS
6.1.2.1 PAST SUPPLY ANALYSIS
In Ethiopia, the rural population used to consume flour made from cereals by
traditional means at home. Grain mills, however, are expanding deep into rural
areas reducing labour and time for women, replacing home-made flour
consumption of industrially processed flour, however, is still insignificant in rural
Ethiopia. Urban dwellers, on the other hand, consume more and more flour
produced by flour mills thus shifting to manufactured flour. Urban house-holds
also consume food items like bread, biscuits and cakes prepared at home or in
bakeries and pastries from industrially processed flour. The demand for wheat
flour is met through both local production and imports. The apparent
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consumption of flour, comprising both domestic production and import is shown

in Table 8.
Table 8 shows that both domestic production and import of wheat flour are
characterized by a fluctuating trend which is, however, erratic. The peak level of
local production, 195,437 tonnes, was registered in year 2000, and imports,
122,365 tonnes, in 2003. Given the nature of the historical apparent
consumption, it is reasonable to assume that the average of the past elven
years, i.e, about 173,518.4 tonnes, as the current effective present demand
for flour and with 6% of the average growth rate.
The demand for wheat flour is met through both local production and imports.
The apparent consumption of flour, comprising both domestic production and
import is shown in Table.8
Table 8: APPARENT CONSUMPTION OF WHEAT FLOUR

1995-2005 (TONNES)
Year Domestic Production Import Total Supply GR%
1995 115,968 1,523 117,491
1996 121,160 1588 122,748 4%
1997 140,499 3186 143,685 17%
1998 105157 7,300 112,457 -22%
1999 167,526 10,686 178,212 58%
2000 195,437 23,059 218,496 23%
2001 165,345 60,995 226,340 4%
2002 142,541 53,757 196,298 -13%
2003 136,669 122,365 259,034 32%
2004 155,692 19,662 175,354 -32%
2005 148,786 9801 158,587 -10%
Total 1,594,780 313,922 1,908,702 61%
Average 144980 28538 173518.4 6%
CSA, Report of survey of the Manufacturing & Electricity Industries, annual

issues. And Customs Authority, External Trade Statistics, Annual Issues.
6.1.2.2 PRESENT DEMAND ANALYSIS

The present consumption demand for flour product for the year 2006 is
estimated by adding annual domestic production and import of flour estimated
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as effective level for year 2006, 173,518 tones. As the demand on 2019 reached
370,102 tons, this is effectively supply is consisted as also effective supply and. as
the current effective demand forecast for flour milling. Therefore present
demand at the year 2019 is 173,518 tones. The apparent present demand
consumption of flour, comprising both domestic production and import is shown
in Table.8
6.1.3 DEMAND PROJECTIONS

The demand of such items highly associated with economic and population
growth. The rate of economic growth the country has achieved recently, which
was more than 11% for the past consecutive six years and annual population
growth rate of 2.9%. Therefore the demand for wheat flour is mainly determined
by the growth rate of population and the per capita consumption of flour.
Increased application of wheat flour for industrially processing of food products
such as pasta and macaroni would also have great bearing of future flour
demand.
In view of the likely change in these determining variables, an 8% annual growth
in demand is considered to be reasonable rate to project future demand (see
Table 9).
Table 9: Demand projections (tons)

Domestic
Year Production Import Total
2006 144,980 28,538 173,518
2007 150,779 35,388 183,929
2008 156,810 43,881 194,965
2009 163,083 54,412 206,663
2010 169,606 67,471 219,063
2011 176,390 83,664 232,207
2012 183,446 103,743 246,139
2013 190,784 128,641 260,907
2014 198,415 159,515 276,562
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2015 206,352 197,799 293,156
2016 214,606 245,271 310,745
2017 223,190 304,136 329,390
2018 232,118 377,128 349,153
2019 241,402 467,639 370,102
6.1.4 THE MARKET PROSPECT (DEMAND – SUPPLY GAP)

The supply is estimates by taking current domestic production level for the year
2020, 399,710 tones will continue for the referee period. The demand furcated
above used to evaluate the gap. The total projected demand, existing supply
(assuming full capacity has been attained currently by domestic producer) and
unsatisfied demand is presented in Table 10.
Table 10: Demand – supply gap (Tons)

year Projected Demand Existing Capacity Un Satisfied Demand
2020 399,710 370,102 29,608
2021 431,687 370,102 61,585
2022 466,222 370,102 96,120
2023 503,520 370,102 133,418
2024 543,802 370,102 173,699
2025 587,306 370,102 217,203
2026 634,290 370,102 264,188
2027 685,033 370,102 314,931
2028 739,836 370,102 369,734
2029 799,023 370,102 428,921
The Demand – Supply analysis shows that there exists a wide range of market
that enables this upcoming project to sale its produce without any problem.
6.2 MARKETING PLAN

6.2.1 PRODUCTS OF PLANT
The proposed project with installed machinery will have capability to produce
the product. For the feasibility purpose the following products combinations are
selected.
Table 11: Flour Plant Production Plan by years and varieties
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Flour Plant Production Plan by years and varieties

Description of Products Production Year
unit Y-1 Y-2 Y-3-10
Flour ( 65% Graed-1,75% Geade02, Tones/Year 30,720 34,560 38,400
80% Stamdared)
Brian (20%) Tones/year 7,680 8,640 9,600
Total Tones/year 38,400 43,200 48,000
6.2.2. MARKETING SELLING PRICE PLAN
6.2.2.1 FLOUR PRODUCTS
The current average price of flour at Addis Ababa is Birr 10,000 per tons For this
project, an ex-Factory price of Grade 1, Grade 2, Standard flour and Barn is Birr
10,474, 9,950, 9,453 and 1,103 Birr per tons respectively is proposed after
discounting 10% margin and 5% discount,. Flour is an industrial as well as a
consumer product. Bakeries and pastries could be supplied directly at factory
gate or through intermediaries. Households could be supplied through retailers
as well as with distribution centers to be established by the new project itself.
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7. LAND USE, INFRASTRUCTURES, BUILDING AND CIVIL WORKS
7.1 LAND REQUIREMEN

Land for the proposed business can be acquired on lease or it can be purchased
based on the judgment of the entrepreneur. It is however recommended to
purchase the Land as the availability of the raw material mainly depends upon
this factor.
Table 12: Annual Land Rent cost (THI.BIRR)

Land Rent per Total Birr
Description
Area M2
Land required for Flour Mill Plant Area 5,680 7.5 22,500.00
Total 22,500.00
7.2 INFRASTRUCTURES AND COSTS RELATED TO INSTALLATIONS
Table 13: Infrastructures and Costs Related to Installations
Infrastructures and costs related to installations

Rate Cost
Equipment Unit Qt.
Birr Birr
SITE WORKS
Site Clearing and Leveling 2,100.0
M2
0 20.00 42,000.00
Access Road Ml 100 1,200 120,000.0
0
Fence works Ml 335 600 201,000.0
0
Main and Pedestal Gate Ls 1 25,000 25,000.00
388,000.0
Sub-total
0
UTILITES
Electricity installation (600 KW) Set 1 160,000 160,000
Water Well drilling with Submersible Set 1 750,000 750,000
Pump and pipe works to reservoir ( > 2
Lt/Se
Site Electrification Ls 1 250,000 250,000
Water Tanker 1 25,000 25,000
Water Supply Lines and Systems Ls 1 125,000 125,000
Waste Water Disposal System Ls 1 350,000 350,000
Sub-total 1,660,000
Total 2,048,000
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7.3 BUILDING CIVIL WORKS AND ACTION PLAN

7.3.1 LAND USE PLAN OF FLOUR MILL PLANT BUILDING COST
The total land required for the plant is estimated to be 5680 m 2, and be
purchased based on the judgment of the entrepreneur. The project for
processing facility, storage, office and other facilities a total land area required
for the envisaged plant is 5,680 M2, of which the built-up area will be 3,700 M2.
Out of the total built-up area 3,100 sq.m to use for the construction production
storage facility of which 2,050 M2 for flour mill and 1050M2 for row material and
finished goods store, 600 M2 for office facility, toilet, guard house facility and for
Dry waste Disposal Area at the average rate of birr 3000 per M2, the cost of
building and civil works will be birr 7,550,000. Building will have walls made of
hollow – block linings and properly cement plastered.
The production and storage hangars will have walls covered by corrugated iron
sheets on columns and beams made of metallic bars. The roofs will be of saw –
tooth type with metallic trusses and covered with metal cladding. Other
buildings will be built by hollow-block walls properly finished, but mot cement
plastered. The details breakdown and others details on floor area shown at the
supporting plan and bill of quantities.
Table 14: Land Use Plan and Related Cost
Building-Flour Production(Dimension of workshop (L×W×H) M=30*8*10

Description of Work Unit Qt Rate Cost (Et. Birr)
Production Hall M2 2050 3,000.00 3,150,000.00
Raw Material Store M2 1050 3,000.00 3,150,000.00
Sub Total M2 3100 6,300,000.00
Office and Lab Facilities M2 100 3000 300,000.00
Toilet Facility M2 50 2000 100,000.00
Guard house M2 50 2000 100,000.00
Dry waste Disposal Area M2 100 3000 300,000.00
Garden Area M2 300 1500 450,000.00
Sub-total M2 600 1,250,000.00
Total M2 3700 7,550,000.00
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7.4 OPERATING ACTIVITIES

7.4.1 PRE-OPERATING ACTIVITIES
During the implementation period, the different activities likely to be undertaken

have been classified as follows on the basis of activities category and schedule
in one year period as shown in the activity chart shown at table 15.
Table 15: Pre-Operation Plan of the project

YEAR AND MONTHS
ACTI
VITI
ES 1 2 3 4 5 6 7 8 9 10 11 12
PREPARATION PHASE -1
Preparing Design and BOQ
Building and Site Work Construction
Purchase Machineries and
Equipments
Manpower recruitment (Mangemnt
Staffs)
PREPARATION PHASE -2
Machinery Installatiosn
Commission of machinery
Manpower recruitment ( Production
Staffs)
Training to Technical Staff by
Supplier
Preparation to Production
Purchasing and supplying all inputs
Plant machinery testing and trails
FUEL SCALE PRODUCTION
7.5 PRE- PRODUCTION EXPENSES
It is estimated that an additional amount of 1,195,903 Birr will be required
in cash for pre-production investment expense before starting production
and generate revenue. The table 16 shoe below describes the
assumption and estimated pre-production operational cost estimate of
the envisaged plant.
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Table 16: PRE – OPERATING EXPENSE

TYPE OF EXPENSES ASSUMPTION COST
S
Feasibility Studies and Engineering 50000
Installation Cost 3% Machinery and 451,737
Equipments
Premium Insurance cost 0.50% Fixed Asset 139,722
Training 250,000
Safety Wear& Uniforms One year Performa 25,000
Legal documentation, security deposits, 1% 279,444
stamp duty and other legal
expenses(1%0f bank loan)
Total in Birr 1,195,90
3
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8. HUMAN RESOURCE AND PROJECT MANAGEMENT

8.1 HUMAN RESOURCES REQUIREMENTS
Operating labor, supervisory and managerial staff requirements are given in the
finical assumptions sections below the shift labor and supervisory requirement is
based on 300 days of the year and two shifts.
8.2 ORGANIZATIONAL STRUCTURE

The Owner follows the performance of the organization and gives the general
direction and guidance, but the business will be managed by an experienced
Chief Executive Officer (CEO) having three functional structures. The
organizational structure is depicted in the organization chart, figure 3.
Figure 3 : Organizational Charts

8.3 HUMAN RESOURCE REQUIREMENT
Total approximate manpower requirement(s) for the business operations along
with the respective salaries are given in the table below:
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Table 17: Human Resource Requirements

Human Resource Requirements
Description Qt Salary/Month/Person Annual Salary (Birr)
MANAGER OFFICE
General Manager 1 5000 60,000
Quality Control Manger 1 3000 36,000
Sales and marketing Man 1 3000 36,000
Driver 2 1600 38,400
Secretary 1 1200 14,400
Accountant 1 2,000 24,000
Cashier /Store Keeper 2 1500 36,000
Ware house man 1 1500 18,000
Guards 4 550 26,400
Sub Total 14 289,200
PRODUCTION STAFF
Technical & production Head 1 8,000 96,000
Quality Control manager 1 6,000 72,000
Electrician 3 3,000 108,000
Chemist 2 3000 72,000
Mechanic 3 4000 144,000
Production supervisor 1 3,000 36,000
Operator 10 2,000 240,000
Labour 12 1000 144,000
Grease & oil man 2 2000 48,000
Assistant operators 2 1,500 36,000
Logistics Assistant 1 1,500 18,000
Driver 1 2,500 30,000
Vehicle Assistant 1 1,000 12,000
Janitors 2 2500 60,000
Sub total 42 1,116,000
Employees benefit (25% BS) 351,300
Grand Total 56 1,756,500
8.4 TRAINING REQUIREMENT

Training of key personnel is very essential and shall be conducted in
collaboration with the supplier of the plant machineries and consultants. The
training for production staffs will primarily focus on the production technology,
quality control, sanitation program. Quality Control manager should be trained
to run a modest laboratory, sanitation program, GMP and HACCP. Most often,
this person performs production planning and maintains proper supply of raw
materials and finished products.
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10. PROJECT FINANCIAL STUDY

10.1 TOTAL INVESTMENT COST
The total investment cost of the proposed flour mill factory project is estimated
at Birr 44,536,167. The fixed investment component is estimated at about Birr
27,944,400, the working capital portion is Birr 15,395,864 and Birr 1,195,903 is
a pre-production expenditure. The following table 18 briefly summarizes the
total investment cost of the project.
Table 18: Summary of Investment Costs for project (in Birr)

Ite Preparatio Operation
m Investment Costs n Phase Phase Total
27,944,40 27,944,40
-
1. Fixed Investment Cost 0 0
2. Pre-production Expenditure 1,195,903 - 1,195,903
15,395,86 15,395,86
-
3. working Capital 4 4
43,340,26 44,536,16
1,195,903
Total Investment cost 4 7
10.2 VARIABLE OPERATING COST
The total operating cost is estimated at Birr 322.722 million at third years of the
project. Operating costs are recorded on a year basis. It is only overheads
(Variable Cost). Summary of operating costs are presented on the following
table19.
Table 19: Summary of Operating Costs for project (in Birr)

Production Cost Operation Phase %
FLOUR PLANT VARIABLE OPERATING COST at Full Capacity
Raw Materials 320,695 97%
Auxiliary material and package 155 0.05%
Casual Labor at preparation line 106
Salary and Wage Production Staffs) 1,230
Utilities 536
Sub-total of processing plant cost 322,722 98%
10.3 CONTINGENCIES
Investments costs are estimated with a certain margin of errors. To allow
physical and financial contingencies, a percentage of the initial total cost
estimate usually between 5 and 15% generally used the contingencies.
10.4 SOURCE OF FUND
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The promoter of the project has planned to finance the project through a long-
term loan from the Development Bank of Ethiopia; and, partially from own
contribution. The debt equity ratio is assumed to be 69:31. The following table
briefly summarizes the project financing by source of funds.
Table 20: Project Investment and Working cost by Source of the Fund
Source of Fund
Description
Equity Contribution Bank Loan Total
Investment Cost 7,824,432 20,119,968 27,944,400
Pre-operating cost 1,195,903 - 1,195,903
Working Capital Cost 4,772,718 10,623,146 15,395,864
Total Cost 13,793,053 30,743,114 44,536,167
% Share 31% 69%
10.5 FINANCIAL ANALYSIS KEY ASSUMPTIONS

The project cost estimates for the proposed Flour manufacturing industry have
been formulated on the basis of discussions with industry stakeholders and
experts. The projections cover the cost of infrastructures, building and civil
works construction, machinery and equipment purchase, office furniture and
fixtures, pre-operating expense and working capital for startup of the project.
Assumptions regarding machinery have been provided, however, specific
assumptions relating to individual cost components are given as under
10.5.1 GENERAL ASSUMPTION
10.5.1.1 FINANCIAL ASSUMPTIONS
Project Life (years) 10
Debt Ratio
Bank Financing 69%
Equity Ratio 31%
10.5.1.2 ECONOMIC ASSUMPTIONS
Utilities price growth 5%
Water price growth rate 10% 5%
Wage Growth Rate 5%
Tax rate 35%
10.5.2 CASH FLOW ASSUMPTIONS
Inventory (% of COGS) 5%
Minimum cash balance (% of sales) 4%
Accounts receivable (% of sales) 12%
Accounts payable (% of COGS) 10%
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10.5.3 WORKING CAPITAL ESTIMATIONS

COST (Et Birr '000 ) REQ WORKING
DESCRIPTIONS
ANNUAL MONTHLY CAPITAL
Stock of Raw Material
Flour plant
232,704,00 19,392,00
Raw materials inventory 0 0 1 Months 9,696,000
Packing 112,128 9,344 1 Months 9,344
Cost of Goods Daily 0
Stock of Finished Goods 234,454 782 5 Days 3,907,559
Goods in Process 234,454 782 1 Days 781,512
14,394,41
Cost of Goods Total 5
Administrative and Marketing
Expenses 4,006 334 3 Months 1,001,449
Administrative and Marketing
Expenses 1,001,449
15,395,86
Working Capitals 4
10.5.3.1 WORKING CAPITAL ASSUMPTIONS

Local Raw material 2 Months
Foreign Raw Materials 5 Months
Auxiliary Raw Materials Local 1 Month
Stock of Finished Goods 5 Days
Goods in Process 1 Days
Administrative and Marketing Expenses 3 Months
10.5.4 ADMINISTRATIVE AND SELLING EXPENSE ASSUMPTIONS
General administration & selling expenses Operation Phase
Land Rent 23
Salary and wage 289
Utilities 10
Repairs & renewals 285 0.09%
Travel and perdime 29
Stationary and printing 8
Marketing Expenses 2,959
Insurance expense 140
Professional fees (legal, audit, etc.) 12
Depreciation expense 2,212
Amortization expense 239
Miscellaneous expense 12
Sub-Total of Adm and Selling Expense 6,218 2%
10.5.4.1 REPAIRS & RENEWALS
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Description Parameter Investment Repair and

(%) cost (Birr) maintenance
(Birr/Year)
Civil works & Buildings 0.50% 7,550.00 38
Machinery & 1.00% 15,057.90 151
equipment.
Furniture & Fixture 2.00% 188.50 4
Motor Vehicles 3.00% 3,100.00 93
Total 285.10
10.5.4.2 DEPRECIATIONS
Rate ( % ) y0 y1 y2 y3 -10
DESCRIPTIONS 1-2 3-10
Infrastructures costs 5% 5% 2,048 102 102 102
Civil works & Buildings 5% 5% 7,550 378 378 378
Machinery & equipment. 10% 12% 15,058 1,506 1,506 1,506
Furniture & Fixture 10% 10% 189 19 19 19
Motor Vehicle 10% 10% 3,100 310 310 310
Pre-production costs 20% 20% 1,196 239 239 239
Total 29,140 2,451 2,451 2,451
10.5.4.3 OTHER ASSUMPTIONS

Other Overhead Costs
Utilities 10,000.0 Birr/Year 833 Birr/Month
Traveling Expense 10%
Salary 28,920.0 Birr/Year 2410 Birr/Month
Stationary and printing 8,000.0 Birr/Year 667 Birr/Month
Marketing Expenses 1.0% Revenue/Annum
Insurance expense 0.500% 0f Investment
Professional fees (legal,
audit, etc.) 12,000.0 Birr/Year 1000 Birr/Month
Miscellaneous expense 12,000.0 Birr/Year 1000 Birr/Month
10.6 FINANCIAL VIABILITY

10.6.1 INCOME STATEMENT
It may be seen from the profitability estimates that the unit would earn a net
profit after taxation of birr 33.512 million during the first years of operation at
80% of the capacity. The net profit after tax will increase gradually from to ET.
Birr 40.633 million in the second year and 48.376 million birr in the third year at
100% utilization of capacity. On the above basis, there is adequate generation of
funds out of the farm operation to service the repayment of term loan and
interest liabilities, as also to meet additional requirement of margin money for
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working capital in the second and subsequent years. Further, adequate surplus
cash is available with the unit for promoter withdrawal, Annexure-1.
10.6.2 CASH FLOW STATEMENT AND BALANCE SHEET

Cash flow on hand at a given period in time (i.e., projection) is critical
component of a business initiative. The cash flow is positive starting Year one.
The cash end balance clearly shows that the accumulated or free cash fund is
sufficient to finance the expansion activities, strengthen the biscuit production
and invest on the establishment of other services.
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10.7 REVENUE PROJECTIONS
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11. FINANCIAL EVALUATION

11.1 PROFITABILITY
According to the projected income statement, the project will start
generating profit in the first year of operation. Important ratios such as
profit to total sales, net profit on total investment) show an increasing
trend during the life-time of the project. The income statement and the
other indicators of profitability show that the project is viable.
11.2. PAY BACK PERIOD

The investment cost and income statement projection are used to project
the pay-back period. The project’s initial investment will be fully recovered
within 2.21 years.
11.3. INTERNAL RATE OF RETURN AND NET PRESENT VALUE

Based on the cash flow statement, the calculated IRR of the project is
94% after tax and 103 % before tax and the net present value at 10
% discount rate is Birr 264 million and Birr 381 million after and
before tax respectively
11.4 NET PRESENT VALUE (NPV)

The NPV is calculated by subtracting the present value of all the costs
incurred for the project from the present value of the stream of benefits.
As shown below annexure 4, the resulting NPV value is greater than
zero; which implies that the project is acceptable (profitable). This is
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critical stage for paying out dividends to shareholders who have invested
in the business enterprise. Nevertheless, the payment of dividend is
delayed until the enterprise fully pays out its loan (both interest and
principals).
11.5 LOAN REPAYMENT SCHEDULE

The loan repayment period is simply defined as the period (i.e. the
number of years) required paying the principal and interest of the original
investment cost throughout the project life. The business result obtained
reveals that the investment is financially viable and has a healthy cash
flow forecast. The outcome of the financial analysis reveals that: based on
the following repayment schedule the annual payment was described on
the base of bellow the given table 18 bellows throughout the project life.
Table 21: loan repayment Schedule

Year Amount of Principal Instalment Interest Total
Outstanding due Payable at Amount
12%
1 21,336,567 2,133,657 2,560,388 4,694,045
2 19,202,911 2,133,657 2,304,349 4,438,006
3 17,069,254 2,133,657 2,048,310 4,181,967
4 14,935,597 2,133,657 1,792,272 3,925,928
5 12,801,940 2,133,657 1,536,233 3,669,890
6 10,668,284 2,133,657 1,280,194 3,413,851
7 8,534,627 2,133,657 1,024,155 3,157,812
8 6,400,970 2,133,657 768,116 2,901,773
9 4,267,313 2,133,657 512,078 2,645,734
10 2,133,657 2,133,657 256,039 2,389,696
- -
Total 21,336,567 14,082,135 35,418,701.9
11.6 SENSITIVITY ANALYSIS
For the sensitivity analysis three worst cases has been considered as follows,
Case 1: if the capital cost increases by 20%
Case 2: if the annual revenue decrees by 20 %
Case 3: if the production cost increase by 10%
Project Case-1 Case-2 Case-3
NPV ( Birr’000) after 91,624 64,502 63,000 51,00
tax
IRR (after Tax) 56% 47% 51% 40%
Pay Back Period 4Yers+1m 3Yaers+8 3Yaers+8 4Years+5m
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m m
These results show the viability of the project, especially if it is well-

managed providing quality at affordable prices and best industrial
operation management techniques and to increase production and
decrees operating expense.
11.7 ECONOMIC BENEFITS

The project can create employment for 56 persons and 37 temporary. The
establishment of such factory will have a foreign exchange saving effect
to the country by substituting the current imports. The project will also
create backward linkage with the agricultural sector and also generates
income for the Government in terms of tax revenue and payroll tax, In
addition to supply of the product to domestic market the project will
generate Birr 295.098 million in terms of tax revenue during the ten years of
project periods.
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12. ENVIRONMENTAL IMPACT ASSESSMENT

This project is designed to manufacture and promote the production of
high biscuit by maintaining the existing environmental system. It also
intends to protect the environment from the possible risks. Thus, in order
to establish environmental friendly processing industry, the new project
site has been thoroughly scrutinized particularly for its vegetation cover
and agro ecology to identify the expected negative impacts of the
development.
There in to major expected threats in biscuit production. Therefore, the

environmental management plan realized and minimizes the miss balance
effect on the project area of agro-ecology. The by-product of the industry
will supply to surrounding dwellers to dispose on town farm for the use of
compost to the individual small holder farmers. Furthermore, the project
will apply integrated biscuit industry by-product management which is
more environmentally friend industry of waste control rather than simply
disposed to the project surrounding area.
The project prompter has got approval on environmental compatibly of

the project. Furthermore the following activity will be taken to improve
the environment impact of project activities,
 Sewage Water Outlet
 All wastewater will be collected into drains.
 No wastewater will leave the plant without being treated, to
remove biological matter.
For economic and compliance to environmental waste management
disposal purpose, the solid waste, from the production process, will be
transferred to a bio- digester, to give two outputs; bio gas and natural
manure. The bio gas may be used to subsidize power/energy cost, since it
can be used in providing energy to run the processing plant boiler. The
manure can also be sold off to town farmers at a reasonable price.
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13. CONCLUSIONS AND RECOMMENDATIONS

Based on the framework set out in this feasibility study the following
conclusions were made regarding the feasibility of proposed biscuit and
other tasty food production and commercialized industry enterer prize.
o A market opportunity was identified for the domestic sales and
national market. The demand local trend confirms the products are
marketable
o The analysis of technical feasibility of the proposed biscuit and other
tasty food production industry revealed that the machinery,
equipment’s, production facilities and services and the human
resource could be integrated for efficient dairy and fatting production
industry.
o The analysis on financial feasibility of the proposed enterprise
revealed that based on the assumptions made, the enterprise is
profitable. The enterprise is projected to have a healthy cash flow
and is viable over long term. The positive financial feasibility is,
however, dependent on stable inflation and macro-economic
conditions. The profitability of the biscuit breaking industry can be
further increased by using alternative row material supply costs.
Based on the framework set out in this feasibility study where feasibility is
assessed in three core areas, it can be concluded that the proposed
biscuit and other tasty food production enterprise is feasible. The results
of the feasibility study, however, are heavily dependent upon the
assumptions made during the study and other operating environments
(political, environmental and economic conditions) remain relatively
stable.
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14. ANNEXURE
Annex 1: PROJECTED INCOME STATEMENT (BIRR’000)
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Annex 2: PROJECTED BALANCE SHEET (Birr’000)
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Annex 3: PROJECTED CASH FLOW STATEMENT (Birr ‘000)
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Annex 4: PROJECTED PROJRCT WORTH MAESURE (NPV, IRR, and PB) AFTER TAX. Birr '000)
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Flour Production Project Mifita Kedere 2014

Business Research Methods (Hawassa University)

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FLOUR MILLING FACTORY

Location: SIDAMA REGEON, DARA WOREDA,

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3.1.2 ETHIOPIA FLOUR MARKETING........................................................11

4. GENERAL DESCRIPTION 0F THE PROJECT...........................................................................13

4.3 THE SOIL............................................................................................................................................14

4.5.2 INFRASTRUCTURE AND SERVICES.................................................14

4.5.3. SETTLEMENT PATTERN...................................................................15

4.5.4 HEALTH FACILITIES...........................................................................15

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5.2 PRODUCT AND APPLICATIONS....................................................................................................16

5.7 TECHNOLOGY AND ENGINEERING............................................................................................19

5.7.2 GENERAL LAYOUT OF PLANTS........................................................26

5.7.3 SOURCE OF TECHNOLOGY..............................................................27

5.8 FLOUR PRODUCTION.....................................................................................................................28

5.9. MATERIALS AND INPUTS.............................................................................................................29

5.9.2 UTILITIES REQUIREMENT................................................................30

5.10 FURNITURE AND FIXTURES COST...........................................................................................30

6.1.3 DEMAND PROJECTIONS...................................................................34

6.1.4 THE MARKET PROSPECT (DEMAND – SUPPLY GAP)....................35

6.2 MARKETING PLAN...........................................................................................................................35

6.2.2. MARKETING SELLING PRICE PLAN...............................................35

7. LAND USE, INFRASTRUCTURES, BUILDING AND CIVIL WORKS..............................37

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7.4 OPERATING ACTIVITIES.................................................................................................................39

7.5 PRE- PRODUCTION EXPENSES....................................................................................................39

10.6.2 CASH FLOW STATEMENT AND BALANCE SHEET........................47

10.7 REVENUE PROJECTIONS.............................................................................................................48

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The total investment cost requirement is estimated including working capital is

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The investor is planning to invest on the establishment of manufacturing plant

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contributes to the recent undertakings of the region on agricultural

2.1 RATIONAL BEHIND THE PROJECT

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2.2 SOCIO-ECONOMIC JUSTIFICATIONS

2.3 COMPANY / APPLICANT PROFILE

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2.1.6 Project Name: FLOUR MILL FACTORY

2.4 PROMOTER’S PROFILE

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3.1.2 ETHIOPIA FLOUR MARKETING

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3.1.2.1 FLOUR MILLING PROCESSES IN ETHIOPIA ECONOMY

1. It can help in the decentralization of industries.

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4. GENERAL DESCRIPTION 0F THE PROJECT

4.2 PHYSICAL AND NATURAL CONDITION OF PROJECT SITE

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Temperature: According to the climatic data obtained from the Ethiopian

4.3 THE SOIL

4.4 WATER RESOURCES