1.1.
Price and Distribution Channels
Marketing channel as the path the goods follow from their sources of original production to their
ultimate destination for final use. Hence, the analysis of marketing channels is intended to
provide a systematic knowledge of the flow of goods and services from their origin (producer) to
their final destination (consumer).
They are planning to prepare 30 tones per day’s teff by 35%; moreover, there is anecdotal
evidence that nominal teff prices have increased rapidly since. A number of factors help explain
this pattern: Overall inflation has been high both for food and non-food items. This general high
inflation is linked to macro factors related to broad money and credit growth; overall
Changes in prices for inputs, labor, and transport have important impacts on production costs for
agricultural products, thereby putting upward pressure on prices. The promoter set the selling
price for three products for teff, in quintals 5,390, by taking into account competitor’s price.
Cost of Forecasted Production and schedules purchase
The promoter will be made plan to supply (purchased quantity, and Tone of teff production by
reaching capacity of supply to local and export market.
Table 2; 2 Schedules of promoter purchase from Farmers
Scheduled Quantity Purchased
Description Unit Total Yr-1 Yr-2 Yr-3
Sr. of Unit
No meas. price
Capacity of 100% 75% 85% 100%
purchased
1 White Teff Quintal 5,200 22,420 4,560 7,760 10,100
2 Red Teff quintal 4,500 15,906 5,540 6,303 9,063
Total 38,326.00 10,100 14,063 19,163
The most place of Cereal Teff operated location of Ethiopia
White and Red Teff is more operated in Ethiopian different regionals but especially in oromia
region is revolved to operating and supply ensure of urban and rural most public so, the promoter
(purchased from farmers Bishoftu Adeha, West shoa Zone Bora Woreda, Bacho, from Amahara
Region purchased Debere Berehan, Gojam, Near of Bahir dar ,Minjar and etc.
Unit of Cost of price to Location
Sr. No Description
meas purchased
Capacity Utilization
1 Quintal 5340 Oromia region
Bach White Teff
Quintal 5320 Oromia region
2 Bacho Red Teff
3 Adeha White Teff Quintal 5200 Oromia region
4 Gojjam White Teff Quintal 5400 Amahara
5 Gojjam Red Teff Quintal 4800 Amahara
6 Minjahar White Teff Quintal 5450 Amahara
7 Bora WhiteTeff Quintal 5530 Oromia region
Total
Flow of processes of cereals Teff structures to starting from Purchased from farmers to
sold
Purchased
Sa
Loading les
Store/Warehouse
Washing
Flour
Packed
Flour
stages
3.2. General and Administrative Expense
The organization will be used birr 593,197.25 for general and administrative expense at full
capacity end of year three as presented in table 3.2 below.
Table 3.2.General and administrative expense at full capacity
Amount of expense in Birr
S/No Discretion Base Yr-1 Yr-2 Yr-3
Year
1 Loading and unloading 1,54,000.00 1,56,700.00 2,59,535.00 3,620,511.75
2 Cost of washing 10,000.00 10,000.00 10,500.00 11,025.00
3 Cost of out flour 18,000.00 18,000.00 18,900.00 19,845.00
4 Cost of packing 4,200.00 4,200.00 4,410.00 4,630.50
5 Electric Expense 42,000.00 42,000.00 44,100.00 46,305.00
6 Miscellaneous Expense 72,000.00 72,000.00 75,600.00 79,380.00
7 Cost Labor 54,000.00 54,000.00 65,200 69,500.00
Total 200200 202,900.00 213,045.00 223,697.25
Cost of sales Cereal Teff flour on Tones /kg
Description Unit of meas. Cost of price
Sr. No
Capacity Sales flour
Teff
100 kg
1 White Teff
50 kg
20 kg
10 kg
5kg
Red Teff 100k
2
50 kg
20 kg
10 kg
5 kg
Total
