CULTIVATION OF RICE & WHEAT COMMERCIAL & MECHANISED DEVELOPMENT
[EIRI/EDPR/1373] J.C. 146
INTRODUCTION
The Federal Democratic Republic of Ethiopia is located in the north-eastern part of Africa commonly known as the Horn of Africa. It is strategically proximate to the Middle East and Europe, together with its easy access to the major ports of the region, enhances its international trade. It is bordered by the Sudan in the west, Somalia and Djibouti in the east, Eritrea in the north and Kenya in the south. The country covers 1,112,000 square kilometres (472,000 sq. miles) making it roughly as large as France and Spain combined and is five times the size of the UK.
From the north and running down the centre are the Abyssinian highlands. To the west of the chain the land drops to the grasslands of Sudan, to the east to the deserts of the Afar. South of Addis Ababa, the land is dominated by the Rift Valley Lakes.
Ethiopia's central plateau varies in height between 2,000 and 3,000 metres. In the north and centre of the country there are some 25 mountains whose peaks rise over 4,000 metres (13,200 ft), the highest being Ras Dashen at 4,543 metres (14,538ft).
Ethiopian economy is mainly based on agriculture; and has vast agricultural land, fertile soil and moderate climatic condition, which is suitable for agricultural production. Realizing the fact, the Ethiopian Government has currently given due consideration to the agricultural development through its agricultural led industrialization development strategy of economic policy. Since 1992, Ethiopia has embarked on structural reform program aimed at reorienting the economy from command to market led economy, rationalizing the role of the state, creating legal, institutional and policy environment to enhance the private sector development.
Moreover, to bring about economic and social development with respect to rural and agricultural led strategy, the government gives special emphasis to the promotion of export agricultural products in kind, quality and quantity. In order to encourage private investments and promote the inflow of foreign capital and technology into Ethiopia, packages of incentives are granted to investors (both domestic and foreign) engaged in new enterprises and expansion in areas qualified for investment incentives. One of these investment incentives is hundred percent duty-free from imported machinery and equipment and vehicles plus spare parts. Export-oriented products (except coffee) are exempted from the payment of any export tax. The investors would also have the right to be exempted from income tax for 1 to 5 years depending on investment type and its location. The aforementioned conducive investment policy and an overall liberalized economic policy would be great assets to potential investors to set up business based on their interests. Capital repatriation and remittance of dividends and interest is guaranteed to foreign investors under the Ethiopian Investment Proclamations and Regulations Code.
COST ESTIMATION
Plant Capacity 4000 Hectare /Season
Land & Building (10,000 Hectare) US$ 42.84 Lac
Plant & Machinery US$ 16.79 Lac
Working Capital for 1 Month US$ 9.79 Lac
Total Capital Investment US$ 83.39 Lac
Rate of Return 11%
Break Even Point 82%
CONTENTS
INTRODUCTION
DEMAND FOR RICE/WHEAT/CEREALS – GLOBALLY
PROSPECTIVE BULK BUYERS GLOBALLY
CLIMATIC CONDITIONS FAVORABLE FOR CULTIVATION
RAINFALL
TEMPERATURE
LIGHT PERIOD
SOIL TYPE
LAND CONTOURING/PREPARATION
CROP VARIETIES (WHEAT/RICE/CEREALS)
CROPPING PATERN
CALENDAR OF OPERATIONS
NO. OF CROP CYCLES IN A YEAR
NURSERY – RAISING
LAND PREPARATION (FROM VIRGIN TO CULTIVABLE LAND)
LAND PREPARATION (FROM CYCLE TO CYCLE)
SPACING
SOWING – TIME, METHORD (MECHANISED) TRANSPALANTING, WATER REQ. WATER STORAGE, ELECTRICITY, ALTERNATE SOURCES OF ENERGY, IRRIGATION/FERTIGATION PESTICIDE/INSECTISIDE
WEED CONTROL
HARVESTING
STORAGE & WAREHOUSING
WATER RESOURVIOURING & STORAGE
SOCIAL FACTOUS AND EMPLOYMENT
TECHNICAL
NON TECHNICAL
APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)
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