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Steel Storage Bins


  1. Product Description: Bins are used for storing anything from grains to commercial products both in houses, stores, shops, etc. Storing in steel bins replaces or is an alternative to storing in mud pots, gunny bags, underground pits or other forms of traditional storage facilities for grains.


  1. Market Potential: In the Amhara Region the traditional storage system for grains is the use of large or small pots made from mud, barns made form wood or underground pits. The mud pots do not usually contain large volume of grains and they do not last long. Barns made from wood and plastered with mud are kept outside the houses and as such are liable to be infested by rodents with a substantial loss of grain every year. Underground pits are used in the highland areas of the region usually used for storing barley. These pits are usually flooded with water during the rainy season, and the loss of grain is quite large. It has been said many times that more than 25 percent of the country’s grains production is lost/wasted every year due to the traditional storage system practiced by farmers. This huge annual loss of grains can be substantially reduced if steel storage bins are used. In addition, due to shortages of wood because of wide spread deforestation in the Region, it has become almost impossible to construct grain stores from wood. Mud posts can not be used for storing grains which are more than 5 quintals as their structure are weak to withstand load.

Of the 3.6 million farming families living in the Amhara Region, at least some “well-to-do” families might be interested in using steel storage bins instead of the traditional storage facilities. If we assume that for the initial phase at least 3 percent of the farming families will use steel storage bins, total initial demand for the bins will be 108,000 units and this conservative demand estimate is more than the production capacities of a number of plants which produce steel storage bins.


  1. Source of Raw Material: Steel sheets or galvanized iron sheets is the main input for producing steel storage bins. Either of the inputs will be imported.


  1. Process and Technology: The sheet is first cut to the required size. It is then rolled to cylindrical shape and the ends are seamed. Circular sheets are cut and fixed to the cylindrical section of the bin and later the lid is fixed. The final process involves revetting of handles and latches. Main machinery required includes shearing machine, side seaming machine, bending machine, driving machine and punching machine.


  1. Estimated Investment: For a plant which will produce about 200 bins per month, the investment requirement will be

Ÿ   Building/ shade 150 m2 at Br 2000/m2=          300,000

Ÿ   Machinery                                                       200,000

Ÿ   Working Capital                                                200,000



  1.  Benefits: Saves grains from being destroyed by rodents, increase food supply to the populations


  1. Locations: Debre markos, and other grain Surplus producing areas