Business Plan for the establishment of Animal Feed storage and retailer warehouse with future expansion to processing factory in Assosa Town Benishangul Gumuz Regional State Ethiopia

Business Plan for the establishment of Animal Feed storage and retailer warehouse with future expansion to processing factory in Assosa Town Benishangul Gumuz Regional State Ethiopia

Cheneke Atomsa Merga (DVM)

General Manager and Entrepreneur

American Journal of Agricultural Research

Background: – The major constraint of animal productivity in Benishangul Gumuz Region State Ethiopia is absence of concentrate feed, breed and presence of epidemic diseases. Trypanosomiasis is the major epidemic disease affecting animals in the region as identified by different literatures. To solve this problem, veterinary clinics established by government almost in each kebeles of the woreda. There are two additional private veterinary clinics. To improve breed of animals cross breeds of Holstein Friesian is increased by artificial insemination service together with required extension service for small scale farmers. However, there was no animal feed distributor until this business organization is established in 2018 E.C by our organization
Objective: – the major objective of this proposal is to get land for constriction of warehouse that enable to reduce cost of rent; store safely and to start mixing according to proportion.
Opportunities: – There is no animal processing company in Assosa area. Owner has required qualification and experience. There are different enterprises and cooperative organizations engaged in livestock getting financial support from government and NGOs. The feed byproduct from oil and food factory can be used and there is plenty of ingredients like maize and oil seeds for future processing.
Significance: -Precence animal feed distributor engages continues supply of concentrate feed that able to improve animal productivity and health so that improve economy of farmers, enterprises and region. In addition to this, farmers get knowledge and skill animal feed preparation.
Source of feed: – the manager of this organization is signed as dealer of Alema Kaudjis Feed PLC located at Debrezeit and other feed processing plants in Addis Abeba. The future project expansion plan is to establish animal feed processing plant within this town
Required capital:- totally 300,000Ethiopian birr)ETB) is needed for this were house construction and running business. 100,000 ETB for construction of feed storage and retailer ware house,100,000 for running business and 50,000 to buy mixer machine and 50,000 for salary and wages.
Source of fund:-80% of capital (240,000) is expected to be obtained by loan from financial institutions, likely from saving and credit, and 20% (60,000) birr is from own equity. For future expansion to establish processing machine source of fund is from developmental bank of Ethiopia as started to deal with Assosa District
Required site and land size:- The requirement site is according to urban plan standard for warehouse construction and Ethiopian Drug and food/feed authority standard approved by proclamation for animal feed storage requirements including availability of utilities and main road and near to market area as introduced by letter written by Assosa Town Administration agricultural office. Around 1hectar is needed with future expansion to processing industry.
Project schedule:-1) Legal permission and preparation of land for warehouse construction, march1-30/2019. 2) Building fence and warehouse, April o1- June-30/2019, 3) Starting the work and progress report to respective organization, July 1-30/2019.
Outcome: – This determines sustainability of the business and users get feed at fair cost, since rental costs become reduced. The feed is maintained in manner reducing loss since the warehouse maintains required ventilation and other required criteria.
Sustainability: – since we are in the work since January 2018. The market study is done practically. The farmers and enterprises already have awareness about the business and started to utilize the feed for their animals. Other farmers also avoid fear of buying animals because of an availability of compound feed.
Monitoring and evaluation;- As already practiced we have got licence for this business after doing required supervision from regional Agriculture bureau livestock and fishery development agency, Assosa town Administration Agricultural Department/office and Assosa Town Trade and Transport department /office and providing report to respective organization monthly and quarterly.

Keywords: establishment of Animal Feed storage, retailer warehouse with future expansion, Assosa Town Benishangul Gumuz Regional State, Ethiopia

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How to cite this article:
Cheneke Atomsa Merga.Business Plan for the establishment of Animal Feed storage and retailer warehouse with future expansion to processing factory in Assosa Town Benishangul Gumuz Regional State Ethiopia. American Journal of Agricultural Research, 2019,4:58.


1. Central Statistical Authority. (2011/12). The animals feed requirement per annum. Addis , Ababa,Ethiopia
2. Ethiopian Plan Commision GTPII plan of the country. (2014/15-2019/20). filling the identified feed deficient gap. Addis Ababa,Ethiopia
3. Ministry of urban & Housing Development Federal Legislation on the Lease Holding of Urban Land (Proclamation No 721/2004).urban land permit by lease on auction or negotiation basis.Addis Ababa,Ethiopia

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