DOCTOR KEKALO PINTO BEAN WHOLE SUPPLIER

1. Executive Summary
Ato Doctor Kekalo Pinto bean whole Supplier project is established with the objective of coffee supplier in Darara

district, Sidama region. The firm established by Mrs , Doctor Kikalo , who has good experience on running private

business, the project by introducing modern production technologies and management will produce and supply of

agricultural products for domestic market on an integrated manner.

Ato Doctor Kikalo Pinto bean whole Supplier start with commodities needed in local market where there is ever
growing demand for adequate supply of agricultural products and fast delivery need in the areas of order including the
rural and urban Ethiopian society.

The pinto bean supplying sector now is in its tip of benefits both to the company and the country as a whole. Doctor
Kekalo Pinto bean whole Supplier is planning to supply a total of 60,000 kg of both clean and planning to earn in fiscal
year. The business organization will need one kind of loan that facilitates to easy supply from region to central market on
the vast world market together with the strengths and opportunities prevailing in the business organization, the need for
short term loan will help its operation to be easy and fruit full.

Therefore, Doctor Kekalo Pinto bean whole Supplier requests ETB 3,000,000.00 ( Three million five hundred birr)
additional working capital from our esteem bank which is one of the banks that is working with the business
organization.

2. Introduction
In Ethiopia, more than 85% of the population depends on agriculture for their livelihood, and it indicate the major source
of food, industrial raw material and exportable items are as whole obtained from it. Generally, agriculture account for 70%
of total national economy and over 90% of the country’s export. So, raising the activities of production and processing and
exportable agriculture commodity has a vital role for economic development of the country.
 DOCTOR KEKALO PINTO BEAN WHOLE SUPPLIER

3. Background Information
Export tax on pinto bean has been important source government revenue, and local taxes on processors are becoming
increasingly important in financing local governments. The transport industry is largely Benefited from pinto bean ,
involved in moving it from producers/ processors to auction for marketing, and from auction to port for export. In terms
of its importance to the total population, over a million pinto bean farming households and more than 10% of the total
population, are dependent on pinto bean production, distribution and export.

4. Pinto Bean
4.1. Primary Processing

Primary processing of pinto bean , most of which is exported. . The basic operation of the ‘dry’ method are harvesting,
drying , and of the ‘wet’ method are harvestingn, drying .

The dry process (flowchart 1) involves drying of the whole cherry until the green bean inside separates from the outer
layers than removed by hulling.

The quality pinto bean deteriorates as processing time increases. Unlinked some commodities in which quality is
improved by processing, the aim of pinto bean processing is maintenance of the original bean quality. Only when dry
the bean could be relatively safe from quality deteriorating. However, when the risk of showers or high humidity is
small, slow drying results in better quality and sun drying enhances the color of the green bean.

Flowchart 1:- Pinto bean

CHERRIES
 DOCTOR KEKALO PINTO BEAN WHOLE SUPPLIER

Harvesting

DRY PROCESSING

Packing

HUSK BEAN

GRADING

4.1.1. Sorting and Classification

Before further processing, the harvested cherries would be separated by size and screens with small openings.

Simple systems contain vibrating screens with small openings which remove impurities such as dirt and gravel, and
screens with larger openings screens with larger openings allow the cherries to fall through but not large stones, twigs or
leaves. The cherries fall into a water tank where the heavier ripe fruit (sinkers) settle to the bottom and taken for pulping
(wet process). The partially dry and over-ripe cherries (floaters) are processed separately. Larger systems are more
elaborate and may contain a series of float tanks to provide more complete separation.

4.1.2. Drying
 DOCTOR KEKALO PINTO BEAN WHOLE SUPPLIER

Drying is critical to processing. Flavor, bean color and other quality factors are materially affected at this stage. Production
of high quality beans requires the correct combination of temperatures, duration of heat, ventilation and light. Dry pinto
bean cherries, because of strip harvesting, can vary in moisture content from 25 to 70%.

Sun drying takes from five to ten days. It has high labor and space requirements, and a permanent drying terrace with
protection from rain and insect attack is expensive to construct. Drying direct on the ground results in contamination and
the introduction off-flavors in the liquor. Hence, sun drying should take place on heavy duty polythene sheets spread one
slightly graded ground beds, cement floors, or drying tables.

Over- or under- drying at incorrect temperatures or for inappropriate lengths of time adversely affect both bean quality
and storing qualities. Moisture content should be reduced from to 10-15% as soon after washing as possible. Delayed
drying can result in sourness and must to onion flavors too much heat causes sourness to develop in the liquor; too rapid
drying causes the parchment to crack.

4.2. Assessment

The market for pinto bean is dictated by the quality of final product. Attention to maintenance of quality during the
primary processing operations is critical and the quality of the pinto bean is closely related to processing technique
employed.

The advantages claimed for dry processing are:

 Simplicity;

 Relatively low capital and recurrent costs per unit;

 Unskilled labor.

Although the choice of process (dry or wet processing) is a cost-benefit issue the availability of sun is an important factor
for wet processing .

Quality can be improved by attention to genetics, cultivation practices, and harvesting and processing techniques.
Cultivation factors include shrub spacing, pruning, fertilizing, weeding, and pest and disease control. Quality control with
strip picking is limited; selective picking however should reduce the number of contaminated infected, moldy, or
damaged berries that go for processing. Wet processing is normally associated with higher quality pinto bean than dry
processing.
 DOCTOR KEKALO PINTO BEAN WHOLE SUPPLIER

4.3 Grading and Sorting

Grading and sorting are primarily based on factors which influence the roasting qualities of the pinto bean . The object is
to remove all defective, contaminated, broken, and unshelled beans as well as any foreign matter such as stones, dirt, and
plant matter.

The discarded material is known as’ triage’ grading is by shape, size, density, color, and maturity. Pinto bean graders are
used to separate and grade the bean by according to their width, thickness, and length. Reel grading separates the beans
by size and airlifters separate them by density; the grading by color and maturity is largely by hand although electronic
eyes are increasingly being introduced.

4.4 Shipping / Marketing

Parchment pinto bean from the project will be transported to the central quality control factories for grading, sorting,
and shipping. Green beans are normally stored in the producer countries pending sale to processors in consuming
countries. Pinto bean is shipped in bags on pallets or in containers.

Stages of Seed planting ---- Growing --- Harvesting ------- Hulling ------ Drying -------- Selecting
---- Blending and Roasting ----- Grinding ---- Packaging

5. Socio-Economic Justifications
The employment opportunity generated for all categories of workers (professionals, accountants, management staffs, and
daily laborers) significantly contribute for the national development. The total annual salaries and wages paid for the
above mention permanently employed personnel increased in the first year operation .

The annual payable tax ( 35% profit tax) for the government . Thus the envisaged pinto bean supplying and marketing
project is believed to generate substantial employment opportunity and incomes both to the local and national economy.
The project contributes to the overall economic growth and foreign exchange earnings and also improves the livelihoods
of town dwellers in particular and the community at large.
 DOCTOR KEKALO PINTO BEAN WHOLE SUPPLIER

6. VISION
Doctor kekalo vision is to be a market leader in producing and serving quality of pinto bean and related products to the
world.

7. CORE VALUES
 Professionalism
 Integrity
 Creativity, Innovation and Willingness to change
 Team Work
 Corporate Governance
 Social Responsibility

8. Objectives
The objectives of Doctor kekalo pinto bean supplier:

 Increase the company’s total pinto bean supplying share.

 Create a better job opportunity for unemployed youth in the surrounding community.
 To create source of income for the owner of the project
 Contribute to the economic growth of the region and the country by producing export standard quality pinto bean .

9. Mission
Doctor kekalo mission is to provide enhancement of people’s lives and guarantee our customers: consistent, high
quality, organic and traceable Ethiopian pinto bean supported by efficient, customer focused, friendly and professional
services. Our commitment to our customers and our homeland, Ethiopia, will be reflected through honest and
responsible business.

10.Keys to Success
The keys to success for Doctor kekalo pinto bean supplier are:

Establish and maintain good working relationships and loan agreements with local commercial banks and other
financial institutions.
 DOCTOR KEKALO PINTO BEAN WHOLE SUPPLIER

Undertake targeted promotional activities in domestic pinto bean market.

Increase our profit margin with the use of good and improved practices or technologies in all company’s facilities.
Effective communication`s with potential buyers in the country.
Supply consistent quality pinto bean , assess and study customer tastes to expand market share and work at the
level of clients’ interest.

11.Company Summary
Doctor kekalo pinto bean supplier operates at both processing and supplying levels of Ethiopian pinto bean supply
chains. As a processor, the company buys pinto bean ( dry cherry) from smallholders residing nearby its wet and dry
mills.

The company prepares the raw pinto bean until it fits the quality standard of the country; the pinto bean it buys from
farmers by two widely known methods-dry processing. The outputs of dry (dried green bean and dried parchment
pinto bean ) beans are packaged in 60kg and 85kg jute bags and sold to the central pinto bean auction market (Ethiopian
Commodity Exchange market).

12.Company Ownership
The initiator, Doctor kekalo pinto bean supplier started business nearly 10 years ago. As a son of pinto bean farmer
and someone who grew up working in pinto bean farm he didn’t find it difficult to establish itself in pinto bean business
why he was successful to date from working as a collector to supplier. They were also engaged in pinto bean processing
and transporting from Hawassa district Soidama region to central market now a days Ethiopia commodity exchange
(ECX).

13.Company Locations and Owners Facilities

The company’s head office is located in Darara town, Darara district, western sidama regional government. The
owner of the business organization has one Pinto bean dry mill located at western West Arsi zone of oromiya
 DOCTOR KEKALO PINTO BEAN WHOLE SUPPLIER

region. These facilities are currently operating below their maximum capacity because of insufficient flow of working
capital.

14.Products
Doctor kekalo pinto bean supplier deals exclusively in green , grown in the southern pinto bean growing districts of
the country. Pinto bean wing of the business organization buys fresh cherries directly from smallholders residing nearby
its dry , and are pulped , sundried and packaged into 60kg and 85kg sacks in company’s processing facilities.

15. Competitive Comparison

In order to differentiate our product pinto bean , which is a commodity from the product offering of competitors, the
business organization has developed pinto bean quality control guide that strictly followed by all owners facilities dry.
Unlike many competitors, the business organization purchases fresh pinto bean only from smallholders residing within
3km radius of the wet and dry mills. dry cherries that arrive to the business organization’s rental processing facilities are
sorted before pulping or hulling, and unsuitable cherries are removed. The sorted and clean cherries are pulped within six
hours of harvesting. The business organization ensures consistent supply of high quality pinto beans through integrated
practical trainings and assistance at all levels of operations. It provides to client farmers practical advices on bean
management and processing.

The beans shipped by Doctor kekalo whole supplier are therefore exemplary or premium quality and are guaranteed
fresh. In addition, we are involved in the certification of clients’ good agricultural practices. All of the smallholders’ farms
from which the business organization purchases pinto bean adhere to environmentally sound farming practices and
avoid the use of pesticides and chemicals in agricultural production.

Among different types of Ethiopian pinto bean that the business organization handles, we give more focus to Sidama
conventional pinto bean as we have the advantage of established business relations with many customers in the region
and reputation

Marketing Strategy and Implementation

 DOCTOR KEKALO PINTO BEAN WHOLE SUPPLIER

Doctor kikalo whole supplier’s strategy is to increase its production and sales size in order to fulfill the requests of
clean and conventional pinto bean exporters and roasters. We intend to first maximize quantity of pinto bean sold
within existing channels and second, establish additional accounts through targeted marketing efforts.

18. MARKETING PLAN

18.1 Production

Ethiopia’s pinto bean Production with respect to area

2022/23 2023/24 2024/25

Area (1,000 HA)

Source: Official USDA PSD for MY2022/2023 and Post Estimates for MY2024/25

Ethiopia’s pinto bean production in 2022/23 is estimated at 6510 bags. 7055 bags more than USDA and post
estimate. This situation is due to favorable weather conditions, low disease and pest pressure, enough rainfall in pinto
bean growing areas of the regions and better extension services in some pinto bean growing areas.

Post believes that the government planners are not familiar with the real on the ground situation and given existing
tree management practices and lack of modern inputs, the producers will not be able to make these gains. Post estimated
pinto bean pinto bean productivity at this reporting period to be around 0.80 tons/ha.

To achieve the planed target, the major bottle necks to increase production and productivity must be addressed. For
example, improved seed, proper tree management, and price incentives for pinto bean producers and promotion of
irrigation system in area where irrigation is possible.
 DOCTOR KEKALO PINTO BEAN WHOLE SUPPLIER

One of the major challenges the Ethiopian pinto bean sector is facing is that many pinto bean producers, mostly from
the eastern part of the country are tearing out the pinto bean bushes and replacing them with a plant with stimulant
properties. The plant can withstand drought, diseases and pests. It can also be harvested three to four times a year and
provides better revenue for farmers than other cash crops such as vegetables, oil crops or pinto bean .

18.1 Purchase of pinto bean plan

- The business planed to purchase 1000 qtl of pinto bean .

-The estimated purchase price will be 30 birr per kg .

-Total purchase cost = 3,000,000.00

18.2 Administrative and processing cost

-Estimated to be 10 % of Purchase price .

-Thus Admin and operating cost = 200,000.00

18.3 Sales Forecast

- Thus 1000 qtl of clean pinto bean sale .

- Total Sales of clean pinto bean = 1000 qtl * 4,250= 4,250,000.00

18.5 Source of Finance

- Bank short term loan from CBE birr 3,000,000.00 @ 9.5 % with semi anual Repayment .

- Company contribution birr 200,000.00.00 .

19. Project Income statement

For the year ended 2022/2023

 DOCTOR KEKALO PINTO BEAN WHOLE SUPPLIER

Revenue

-From sales of Pinto bean ----------------------------------------------------------- 4,250,000.00

Cost of Sales

- Purchase of coffee ---------------------------------------------------------------- 3,000,000.00

GrossProfit ---------------------------------------------------------------- 1,250,000.00

Adminstrative and operating cost

- Adminstrative expense -------------------------------------------------- 200,000.00

- Interest expense ----------------------------------------------------- 518,012.08

- Total Expense ---------------------------------------------------------------- 718,012.08

- Income before tax -------------------------------------------------------------- 531,987.92

- Profit tax payable 35 % ------------------------------------------------------ 168,195.77

- Net Income of the year ----------------------------------------------------------- 363792.15

20 . Conclusion and Recommendation

 DOCTOR KEKALO PINTO BEAN WHOLE SUPPLIER

The projected income statement indicates that the project is profitable throughout its life. The projected financial
performance of the project also shows excellent financial capacity and positive cash balance.
The project gauged against various parameters was assessed by varying the most significant parameters and the result
shows that the project can accommodate any price or cost variations without significant implication on the profitability of
the project.
Therefore based on the forecasted overall financial analysis, we can deduce that the Doctor Kekalo pinto bean Supplier
Business that shall results improvement of the development sector is supported and viable and worthwhile for
implementation.

Therefore, this result will encourages both the promoter & financing institution.

In view of the above positive outcomes, which are shown in detail in this bankable business plan it is confirmed that that
the project is financial feasible & economical sound.

Moreover, market analysis undertaken for pinto bean supplying business indicates that there would be unsatisfied
demand for supply of the venture’s product. Hence, the market analysis ascertains the viability & sustainability of the
project in the coming years without market limitation.

As far as the market arrangement is concerned it is a common phenomenon that business organization has sales their
products get directly to exporters by bid in cash base. Doctor Kekamo pinto bean supplier will plan to export its
products.

The project is socially desirable an economically very useful. This can be justified from various angles. To state some of
the benefits of the project:-

It will create annual revenue of to the government treasury in the form of tax & GDP contribution.
 It contributes to the use of the country’s resource potential for value creation.
 The firm has created job opportunities for 25 individuals other temporary employees will also be involved in
direct production process.
Therefore, the establishment of this project has great positive impact for the national economic growth & development. It
could play a significant role in bringing about speedy socio-economic development and poverty reduction.