Abdi Boru Onion Farm Assciation
Abdi Boru Onion Farm Assciation
Abdi Boru Onion Farm Assciation
Group member
1. Belete Abera--------------0012/11
2. Bogale Teferi------------0013/11
4. Chaltu Nuguse-----------0015/11
5. Degarege Simeene-------0016/11
6. Deribe Guda--------------0017/11
7. Dessalegn Tadese--------0018/11
8. Ehadig Gulilat------------0019/11
9. Fikadu Getu---------------0020/11
0939173857
1. EXECUTIVE SUMMARY 3
2. BUSINESS DESCRIPTION 4
3. OUR PRODUCTS AND SERVICES 7
4. SWOT ANALYSIS 8
5. MARKET ANALYSIS 9
6. MARKETING AND OPERATING PLAN 11
7. STARTUP EXPENDITURE (BUDGET) 14
8. GENERATING FUNDS/STARTUP ABDI BORU ONION FARM ASSOCIATION. 16
9. SUSTAINABILITY AND EXPANSION STRATEGY 17
10. CHECK LIST OF CURRENT BUSINESS PLANT STATUS 18
1. EXECUTIVE SUMMARY
Abdi Boru Onion Farm Association is a commercial farm that will be based in the outskirts of
Sude, central Ethiopia. We have done our detailed market research and feasibility studies and
we were able to secure a well – situated and suitable farm land to start our commercial onion
farming. Our commercial onion farm is going to be a standard commercial onion farm hence
will be involved in cultivating other vegetable such as potatoes, lettuce, tomatoes and all
other vegetables. We will be involved in both organic commercial farming and non–organic
(packed) commercial farming. We are in the commercial onion farming business because we
want to leverage on the vast opportunities available in the commercial farming industry to
contribute our quota in growing the Ethiopian economy, in national food production, raw
materials production for industries, to export agriculture produce from the Ethiopia to other
countries and over and above to make profit.
Abdi Boru Onion Farm Association is well positioned to become one of the leading
commercial onion farms in the Ethiopia, which is why we have been able to source for the
best hands and farm machinery to run the farm with. We have put processes and strategies in
place that will help us employ best practices when it comes to commercial onion farming as
required by the regulating bodies in the Ethiopia. Abdi Boru Onion Farm Association is a
family business that is owned by Mr. Abdi Boru and his immediate friend members. The
farm cumulative business will be fully and singlehandedly financed by Abdi Boru and his
immediate friend members.
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2. BUSINESS DESCRIPTION
Abdi Boru Onion Farm Association is a commercial onion production farm that intends
starting small in Sude, central Ethiopia, but hope to grow big in order to compete favorably
with leading commercial vegetable farms in the commercial farming industry both in the
Ethiopia and on a neighbor country stage. We are aware of the importance of building a solid
business structure that can support the picture of the kind of world class business we want to
own.
Our Mission and Vision Statement
Our Vision is to become one of the leading onions producer body in Ethiopia
Our mission statement as a commercial farm is to go into full – time cultivation of
onions and other vegetables that will not only be consumed in the Ethiopia, but also
exported to other parts of the world.
Responsible for the cultivation of onions and if necessary ,other vegetables such,
tomatoes, lettuce, cabbage, potato, sweet potato and peppers et al
Supervises other workers within the department
Works closely with the General Manager to achieve the organizations’ goals and
objectives
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Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts;
participates in the structuring and financing of projects; assures the completion of
relevant projects
Writes winning proposal documents, negotiate fees and rates in line with company
policy
Responsible for handling business research, marker surveys and feasibility studies for
clients
Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with customers
Develops, executes and evaluates new plans for expanding increase sales
Documents all customer contact and information
Represents the company in strategic meetings
Helps to increase sales and growth for the farm
Welcomes guests and clients to the farm by greeting them in person or on the
telephone; answering or directing inquiries.
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides
the client with a personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s
interest in the company’s products and services
Manages administrative duties assigned by the manager in an effective and timely
manner
Consistently stays abreast of any new information on the farm’s products,
promotional campaigns etc. to ensure accurate and helpful information is supplied to
clients
Receives parcels/documents for Abdi Boru Onion producer Farm association.
Distributes mails in Abdi Boru Onion producer Farm association.
Handles any other duties as assigned by the line manager
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3. OUR PRODUCTS AND SERVICES
Abdi Boru Onion Farm Association is a commercial farm that will be involved in cultivating
onions and other vegetables via the greenhouse farming model and land farming for both the
Ethiopia’ market and the horn of Africa market. We are in business to cultivate onions and
other vegetables in commercial quantities.
We are in this line of business to make profit, and we will ensure that we do all that is
allowed by the law of Ethiopia to achieve our business goals and objectives. These are the
areas we will concentrate on in our onion farms. If need arises we will definitely add more
agricultural produce to our list;
Cultivation of onions and other vegetables such as; shallots, tomatoes, lettuce, chilies,
cabbage, peppers, coriander, strawberries, potato, and sweet potato et al
Both organic product (fresh vegetables) and processed (packed vegetable product) are
supplied for our customers
Greenhouse construction, consultancy and advisory services
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4. SWOT ANALYSIS
Abdi Boru Onion producer Farm association does not intend to launch out with trial and error
hence the need to conduct a proper SWOT analysis. We know that if we get it right from the
onset, we would have succeeded in creating the foundation that will help us build a standard
onion farm that will favorably compete with leading commercial onion farms in the Ethiopia
and horn of Africa.
We are quite aware that there are several large, medium and small scale onion producer farm
association, individual and or PLC all over Ethiopia and even in the same location where we
intend locating ours, which is why we are following the due process of establishing a
business.
We employed the services of an expert HR and Business Analyst with bias in the commercial
farming industry to help us conduct a thorough SWOT analysis and to help us create a
Business model that will help us achieve our business goals and objectives.
Here is a summary of the result of the SWOT analysis that was conducted on behalf of Abdi
Boru Onion Farms.;
Strength:
Our strength as an onion farm producer agent is that we have healthy relationships with loads
of major players (agriculture merchants) in the agriculture industry; both suppliers and buyers
within and outside of the Ethiopia. We have professional and expert of onion and vegetable
production that will help us cultivate crops (onions and other vegetables) in commercial
quantities with less stress. Aside from our relationship (network) and equipment, we can
confidently boast that we have some the most experienced hands in the onion farming line of
business.
Weakness:
Our major weakness is that we are a new vegetable farming industry in the Ethiopia; it might
take some time for our organization to break into the market and gain acceptance especially
from international markets in the already saturated and highly competitive commercial
farming industry. Another weakness is that we may not have the required cash to promote our
business the way we would want to.
Opportunities:
The opportunities that are available to us cannot be quantified; we know that everybody on
planet earth eats onions and other types of vegetables. We are ready to take advantage of
every opportunity that is available in the vegetable farming industry.
Threat:
The number of small local farms and the number of larger commercial farms have been
growing. Increasing importation of fresh produce will slightly constrain demand for onions
and other vegetables. Just like any other business, one of the major threats that we are likely
to face is economic downturn.
It is a fact that economic downturn affects purchasing/spending power. Another threat that
may likely confront us is the arrival of a new vegetable farms or commercial greenhouse farm
in same location where our target market exists and who may want to adopt same business
model like us.
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5. MARKET ANALYSIS
Market Trends
Greenhouse commercial farming is rapidly gaining entrance in our world today. Greenhouse
farming gives room for greater control over the growing environment of various crops.
Dependent upon the technicality and specification of a greenhouse design, some of the
important factors which may be controlled include temperature, levels of light and shade,
irrigation, fertilizer application, and atmospheric humidity et al.
Basically, Greenhouses are used to overcome shortcomings in the growing qualities of a
piece of land, such as a short growing season or poor light levels. In essence, they are
designed to improve food production in marginal environments.
So also, if you are a close observer of the trends in the vegetable farming industry, you will
agree that the vegetable farming industry is anticipated to increase due to increasing
consumer health consciousness, which has led to increasing demand for fresh produce. While
per capita onion and vegetable consumption has remained stable over in recent time, the price
of onions and other vegetables have increased as consumers demand premium, fresh
vegetables.
So also, the number of both small and large farms has been increasing. Small, local farms are
benefiting from the organic, local movement, while large, commercial farms are improving
labor efficiency. Going forward, players in the vegetable farming industry will continue to
increase revenue generation for their business.
Our Target Market
Naturally, the target market of those who are the end consumer of onion and other vegetable
farm produce and also those who benefits from the business value chain of the vegetable
farming industry is all encompassing; it is far – reaching. Every household consumes produce
from onions and other vegetable farms. In essence a vegetable and onion farmer should be
able to sell his or her farm produce to as many people as possible.
We will ensure that we position our business to attract consumers of fresh vegetables and
onions not just in Ethiopia alone but also horn of Africa which is why we will be exporting
some of our vegetables and onions either in raw form or processed form to other countries of
the horn.
Our competitive advantage
It is easier to find entrepreneurs flocking towards an industry that is known to generate
consistent income which is why there are more commercial farmers in Ethiopia and of course
in most parts of the horn of Africa.
As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial
farming. This is so because part of the success of any nation is her ability to cultivate her own
food and also export foods to other nations of the world.
Abdi Boru Onion Farm Association is fully aware that there are competitions when it comes
to selling onions and other vegetables all over the globe, which is why we decided to carry
out thorough research so as to know how to take advantage of the available market in the
Ethiopia and in other parts of the world.
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We have done our homework and we have been able to highlight some factors that will give
us competitive advantage in the marketplace; some of the factors are effective and reliable
farming processes that can help us sell our produce at competitive prices, good network and
excellent relationship management.
Our competitive advantage lies in the power of our team; our workforce. We have a team of
hardworking and highly proficient farmers, a team with excellent qualifications and
experience in various niche areas in the vegetable farming industry. Aside from the synergy
that exists in our carefully selected team members, we have some of the latest and efficient
vegetable and greenhouse farm machines and equipment and we will be guided by best
practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among
the best within our category (start–ups onions and other vegetable farms in Ethiopia) in the
industry. It will enable them to be more than willing to build the business with us and help
deliver our set goals and achieve all our business aims and objectives.
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6. MARKETING AND OPERATING PLAN
Sources of Income
Abdi Boru Onion Farm Association is in the vegetable farming industry for the purpose of
maximizing profits hence we have decided to explore all the available opportunities within
the industry to achieve our corporate goals and objectives. In essence we are not going to rely
only on the sale of our farm produce to generate income for the business.
Below are the sources we intend exploring to generate income for Abdi Boru Onion Farms
Association;
Sale of onions and other vegetables such as; shallots, tomatoes, lettuce, cabbage,
roses, peppers, coriander, strawberries, potato, carrot, and sweet potato et al
Greenhouse construction, consultancy and advisory services
Sales Forecast
From the survey conducted, we were able to discover that the sales generated by an onion
cum vegetable farm depend on the size of the farm, and the nature of the onion cum vegetable
farm (greenhouse vegetable farms or land cultivation of vegetables).
We have perfected our sales and marketing strategies and we are quite optimistic that we will
meet or even surpass our set sales target of generating enough income/profits from the first
year of operation and build the business from survival to sustainability.
We have been able to critically examine the vegetable farming industry and we have analyzed
our chances in the industry and we have been able to come up with the following sales
forecast. The sales projections are based on information gathered in the field and some
workable assumptions with respect to the nature of onion cum vegetable farm that we run.
Below are the projections that we were able to come up with for the first three years of
running Abdi Boru Onion Farm Association;
First Year-: 1,050,000
Second Year-: 2,000,000
Third Year-: 4,000,000
N.B: This projection is done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown that can impact negatively on
household spending, bad weather cum natural disasters (draughts, epidemics), and
unfavorable government policies. Please note that the above projection might be lower and at
the same time it might be higher.
We have put plans in place to set up a standard food processing plant to help us maximize
profits.
Our sales and marketing team will be recruited based on their vast experience in the
vegetable farms industry and they will be trained on a regular basis so as to be well equipped
to meet their set targets and the overall business goal of Abdi Boru Onion Farms Association.
Our goal is to grow Abdi Boru Onion Farm Association to become one of the leading onion
and other vegetable farms in Ethiopia which is why we have mapped out strategies that will
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help us take advantage of the available market and grow to become a major force to reckon
with not only in Sude– central Ethiopia but also in other cities in Ethiopia and the horn of
Africa at large.
Over and above, we have perfected our sale and marketing strategies first by networking with
agriculture merchants, hotels, restaurants, supermarkets, grocery stores and companies that
rely on raw materials from the onion and other vegetable farming industry who are likely to
become our customers.
In summary, Abdi Boru Onion Farm Association will adopt the following strategies in
marketing our commercial farm produce;
Introduce our farming business by sending introductory letters alongside our brochure
to stakeholders in the agriculture industry, companies that rely on the agriculture
industry for their raw materials, supermarkets, grocery stores, hotels and restaurants
and agriculture produce merchants et al.
Advertise our business and agriculture produce in agro–allied and food related
magazines and websites
List our onion and vegetable farms on yellow pages ads
Attend related agriculture and food expos, seminars, and business fairs et al
Leverage on the internet to promote our business
Engage in direct marketing
Encourage the use of Word of mouth marketing (referrals)
Place adverts on both print (newspapers and magazines) and electronic media
platforms
Sponsor relevant community based events/programs
Leverage on the internet and social media platforms like; Instagram, Facebook,
twitter, YouTube, Google + et al to promote our business
Install our billboards in strategic locations all around Sude – central Ethiopia
Engage in roadshows from time to time in targeted neighborhoods
Distribute our fliers and handbills in target areas
Contact corporate organizations and residents in our target areas by calling them up
and informing them of Abdi Boru Onion Farm Association and the farm produce we
sell
List our vegetable farms in local directories/yellow pages
Advertise our onion and vegetable farms in our official website and employ strategies
that will help us pull traffic to the site.
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Ensure that all our staff wears our branded shirts and all our vehicles and trucks are
well branded with our company logo et al.
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7. STARTUP EXPENDITURE (BUDGET)
When it comes to calculating the cost of starting an onion production farm, there are some
key factors that should serve as a guide, factors such as the types of vegetables to be
cultivated and the size and capacity of the onion farm.
Besides, in setting up any business, the amount or cost will depend on the approach and scale
you want to undertake. If you intend to start a world – class commercial farm, then you
would need a good amount of capital as you would need to ensure that your employees are
well taken care of, and that your farm is conducive enough for workers to be creative and
productive.
This means that the start-up can either be low or high depending on your goals, vision and
aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any
difference in prices would be minimal and can be overlooked. As for the detailed cost
analysis for starting an onion cum vegetable farm; it might differ in other countries due to the
value of their money.
Below are some of the basic areas we will spend our start – up capital in setting up our onion
cum vegetable farm;
Area to be spent ETB
The total fee for incorporating the business in Ethiopia 1,000
The total cost for payment of insurance policy covers (general liability, 20,000
workers’ compensation and property casualty) coverage at a total premium
The amount needed to acquire/lease a farm land 500,000
The amount required for preparing the farm land 150,000
The cost for acquiring the required work tools and 120,000
equipment/machines/fencing et al
The amount required for purchase of the first set of onion and other vegetable 55,000
seedlings et al
Operational cost for the first 3 months (payment of bills et al) 50,000
The cost of launching an official website 2,000
The amount required for payment of workers for a period of 3 months 100,000
Additional Expenditure (Business cards, Signage, Adverts and Promotions et 2,000
al)
Contingency budget (5%) 50000
Total 1,050,000
Going by the report from detailed research and feasibility studies conducted, we will need an
average of 1050,000 to start a standard onion farming business in Ethiopia. These are some of
the equipment that we would need to fully launch our onion farm,
Tractor
Soil cultivator
Plough
Harrow (e.g. Spike harrow, Drag harrow, Disk harrow)
Stone/Rock/Debris removal implement (e.g. Destoner, Rock windrower/rock rake,
Stone picker/picker)
Broadcast seeder (alternatively: broadcast spreader, fertilizer spreader, or Air seeder)
Planter
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Plastic mulch layer
Transplanter
Sprinkler system irrigation
Mower
Sickle
Wheel Barrow
Truck
Basically, the nature of onion farms does not require an office space; most people that run
commercial farms operate directly from their farms. But we have decided to open a small
liaison office; a place where administrative jobs will be carried out on behalf of the business.
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8. GENERATING FUNDS/STARTUP ABDI BORU ONION FARM
ASSOCIATION.
No matter how fantastic your business idea might be, if you don’t have the required money to
finance the business, the business might not become a reality. Finance is a very important
factor when it comes to starting a business such as onion cum vegetable farming. No doubt
raising start–up capital for a business might not come cheap, but it is a task that an
entrepreneur must go through.
Abdi Boru Onion Farm Association is a family business that will be owned and managed by
Abdi Boru and his immediate family members. They are the sole financiers of the firm, but
may likely welcome other partners later which is why they decided to restrict the sourcing of
the start–up capital for the business to just three major sources.
These are the areas where we intend sourcing for fund for Abdi Boru Onion Farm
Association.
Generate part of the start–up capital from personal savings and sale of his stocks
Generate part of the start–up capital from friends and other extended family members
Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about 1050,000 (Personal savings 500,000 and soft loan
from family members 200,000) and we are at the final stages of obtaining a loan facility of
350,000 from bank. All the papers and documents have been duly signed and submitted, the
loan has been approved and any moment from now our account will be credited.
Operating cost strategy
It includes lists of fixed expense incurred regardless of sales volume such as rent, utilities,
salaries, advertising, depreciation and insurance
Abdi Boru onion farm association has operational cost strategy of four months as follows
Expense March April May June
Salaries 3000 3000 3000 4000
Rent 2000 2000 2000 2000
Utilities 1000 1000 1000 1000
Advertising 4000 4000 4000 4500
Selling expense 0 0 2000 5000
Insurance 1000 1000 1000 1000
Payroll taxes 800 800 850 1000
Depreciation 800 800 800 800
Office expenses 1500 1500 1500 1500
Total expense 14100 14100 16150 20800
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9. SUSTAINABILITY AND EXPANSION STRATEGY
The future of a business lies in the number of loyal customers that they have the capacity and
competence of the employees, their investment strategy and the business structure. If all of
these factors are missing from a business (company), then it won’t be too long before the
business closes shop.
One of our major goals of starting Abdi Boru Onion Farm Association is to build a business
that will survive off its own cash flow without the need for injecting finance from external
sources once the business is officially running. We know that one of the ways of gaining
approval and winning customers over is to sell our farm produce (onions and other
vegetables) a little bit cheaper than what is obtainable in the market and we are well prepared
to survive on lower profit margin for a while.
Abdi Boru Onion Farm Association will make sure that the right foundation, structures and
processes are put in place to ensure that our staff welfare are well taken of. Our company’s
corporate culture is designed to drive our business to greater heights and training and re –
training of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management
staff and it will be based on their performance for a period of three years or more as
determined by the board of the organization. We know that if that is put in place, we will be
able to successfully hire and retain the best hands we can get in the industry; they will be
more committed to help us build the business of our dreams.
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10. CHECK LIST OF CURRENT BUSINESS PLANT STATUS
Business Name Availability Check: Completed
Business Incorporation: Completed
Opening of Corporate Bank Accounts in various banks in the United
States: Completed
Opening Online Payment Platforms: In Progress
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of All forms of Insurance for the Business: In Progress
Leasing of farm land in Sude district (preparing the farm land inclusive): In Progress
Conducting Feasibility Studies: Completed
Start – up Capital generation: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Design of The Company’s Logo: Completed
Graphic Designs and Printing of Packaging, Marketing/Promotional Materials: In
Progress
Recruitment of employees: In Progress
Building/construction of greenhouse and hothouse facility: In Progress
Purchase of the needed farming tools, machines and equipment: In Progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business (Business PR): In Progress
Farm land Treatment, Health and Safety Arrangement: In Progress
Establishing business relationship with key players in the industry (agriculture farm
produce merchants, transporters and suppliers of seeds, fertilizers, pesticides and
insecticides):
Completed
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