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  1. Product Description: Sugar has become one of the essential food consumption items in the country especially in urban areas.  Though per capita sugar consumption in Ethiopia is one of the lowest in the world, the volume of consumption has been growing steadily since the establishment of the first sugar cane plantations-cum-sugar mills in the Awash Valley in the early 1950’s.  As a sweetening food item, sugar is used in preparing all types of drinks (coffee, tea, soft drinks, beer, juices-) and foods (pastries, bread of special types, etc).


  1. Rationale: Between 2000 and 2004 average annual production of sugar in our country was 243,428 tons; and the average annual consumption of the Amhara Region during the same period was estimated to be 63,291 tons.  This volume of consumption is equal to the annual production quantity of Wonji Sugar Mill.  The Amhara Region has many areas where the climate, soil and other natural characteristics are suitable for sugar cane plantations and sugar production.  With t4he continuous increase in transportation cost, the time will not be too far when the cost of transporting one quintal of sugar from the existing factories to the Amhara Region will constitute more than one-half of the price of the sugar.  If the Amhara Region has suitable land for growing sugar cane, if the consumption of sugar in the Region justifies the establishment of a large medium size sugar mill, it seems logical that the establishment of the plantation and mill should be promoted by the Regional government.


  1. Market Potential: Estimated consumption of sugar in the Amhara Region range from 65,000 to 75,000 tons (3.4 kg-3.9 kg per person) per year. 

      This consumption level will grow in the future at the minimum due to population increase.  The current level of sugar consumption in the Region will make the establishment of a sugar cane plantation- cum- sugar mill a viable venture.  The total land requirement for the cane plantation may be about 5000 to 6000 hectares of land.


  1. Source of Raw Material: A sugar mill is one of those agro-processing industries where the production of the raw material and the final product should be established together.  Hence the main source of the raw material for the sugar mill will come from the plantation (farm) that will be established along the mill.  There might be a possibility where sugar cane could be obtained from out-growers who live around the sugar mill.


  1. Production Process and Technology: The sugar cane plantation part of the project will involve land preparation, planting irrigating and harvesting the sugar cane and transporting the cane to the sugar mill for crushing.


The sugar milling part of the project involves- Crushing of the cane, juice clarification and boiling, crystallization and separation from molasses, drying and bagging.


  1. Estimated Investment: For as small sugar mill whose annual production capacity will be between 1000 tons to 6000 tons, the investment cost will be Birr 15 million.


  1. Benefits: Makes the region self-sufficient in the production of a basic consumption item- sugar; keeps the financial resources of the Region within the Region, creates employment opportunities in the agricultural and manufacturing sectors, introduces a new technology to the Region, supplies molasses for alcohol and cattle feed factories.


  1. Location: If plants are to be small sizes which require 1000, 2000, 3000, 4000, hectare of land, the project could be located in different parts of the Region; example Derra and Fogera, areas near rivers in Metemma, some valleys in South and North Wollos,