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Coffee Plantations

1.      Product Description:- Coffee plantation a commercial farm where coffee trees are grown for harvesting coffee beans for the domestic and for foreign markets. The plantation is run on the basis of modern farm management system with the purpose of maximizing production and profitability. 

 

2.      Markets Potential:- According to some estimates, the Amhara Region has more than 400,000 hectares of land suitable for coffee production. But only a tiny fraction of this land is under coffee cultivation and coffee production of the Region is negligible. As a result the Region is a net importer of coffee. Every year huge amount of money leaves the Region for buying coffee. This is a negative factor in the trade balance between the Region and other parts of the country. Traditionally, the Amhara Region has been a cereals growing region. In fact more than one-third of the cereals is produced in this Region. Cereals, important they are, are not cash crops as coffee and this negatively affects the income level of the population. Besides bringing cash to its growers, coffee growing protects the soil from erosion as the coffee trees prevent rain drops from hitting the ground directly. If the Amhara Region has the land which is naturally suited for growing coffee, it is high time that this land be made grow coffee. In the structure of the country's agriculture based economy, there is no crop better than coffee for generating cash for its growers. Potential investors in the Amhara Region should be encouraged to establish coffee plantations to produce coffee to meet at least the regional demand for the crop. The fact that there will be enough demand for the crop is too obvious too analyzes.   

 

3.      Inputs:- The main inputs for coffee plantations are land, coffee seeds/seedlings, and farm machinery and labor. All these inputs can be obtained within the Region and in the country.

 

4.      Process and Technology: - Choosing the most suitable localities, securing the land, preparing the land, planting the coffee seedlings, nurturing the trees, harvesting and marketing the coffee beans. Machinery required includes one or two tractors, and other farm tools.

 

5.      Estimated Investment:-  For a plantation of 200 hectares, the investment requirement will be

 

·         Building/shade 200m2 at Birr 1500/ m2 =   300,000

·         Machinery  and equipment …….……….  =   200,000

·         Working Capital ………………………… =    400,000

Total …. =           900,000

 

6.      Benefits: -   self sufficiency, saving of financial resources, possibility of export.

 

7.      Location:- Localities suitable for coffee plantions.

 

 

 


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