ENTREPRENEURSHIP ASSIGNMENT ON BUSINESS

PLAN DEVELOPMENT AND IMPACT OF BUSINESS

ON ANIMAL WELFARE

PREPARED BY BETHELHEM
BEHAILU…..UGR/6073/12

SUBMITTED TO: ALEMAYEHU FANTA (DAH, BSc, MPA,

MA)

SUBMISSION DATE: DECEMBER, 2023

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TABEL OF CONTENTS PAGE

1. Business plan for dairy farm production………………………………………………2

2. Cover sheet…………………………………………………………………….....…………………….2

3. Executive summary………………………………………………...………………………………3

4. The business……………………………………………………..…………………………………...4

5. Funding requirement…………………………………………………...…………………………4

6. The product and services………………………………………………………………………5

7. The plan………………………………………………………...………………………………………..7

7.1. Marketing plan…………………..…………………………………………………………….7

7.2. Operational plan…………………………………………………………..………………….8

7.3. Organizational plan………………………………………………………………………..10

7.4. Financial plan………………………………………………………………………………….13

8. Critical risks…………………………………………………………………………………………..14

8.1. Market risks………………………………………………………………………………14

8.2. Operational risks…………………………………………………………..………….15

8.3. Financial risks……………………………………………………………………………15

8.4. Regulatory risks………………………………………………………………………..16

8.5. External risks…………………………………………………………………………….16

9. Exit strategy……………………………………………….………………………………………….16

10. Appendix…………………………………………………………………………………..…………...17

11. The impact of business on animal welfare……………………………….………18

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BUSINESS PLAN FOR DAIRY FARM PRODUCTION

1. COVER SHEET

BUSINESS NAME: ZEWDITU DAIRY FARM

The objective of zewditu dairy farm production is to construct dairy farm with high-quality milk
and milk products in Adama city. I am Dr. Bethelhem Behailu and we wanted to establish dairy
farm with my brothers( Solomon Behailu, Biniam Behailu and Eyob Behailu) in Adama city.

Our proposed Milk Production Partnership aims to establish a robust and sustainable venture in
the dairy industry. We envision becoming a leading provider of high-quality milk products,
leveraging modern technology and ethical farming practices.

I graduated from Addis Ababa University collage of veterinary medicine and agriculture in 2017
E.C. My brothers Solomon and biniam have their own job but they really wanted to start this
business with me and my younger brother eyob.

Adama is a city in central Ethiopia. It is located in the East Shewa Zone of the Oromia Region,
approximately 99 kilometers southeast of the capital city, Addis Ababa. Adama is a major
transportation hub with well-developed road and rail connections. Adama is a rapidly growing
city with a developing economy. It has become a center for trade, commerce, and industry.
There are various businesses, industries, and markets contributing to the city's economic
vibrancy.

Phone number: 0973026644 or 0919603234

Email: [email protected]

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 2. EXECUTIVE SUMMARY

Welcome to Zewditu Dairy Co. Ltd., your trusted partner in premium milk production! Nestled in
the heart of Adama City, our state-of-the-art dairy farm is dedicated to delivering high-quality
dairy products to meet the diverse needs of our community.

Zewditu dairy farm is milk and milk product Production Company that is found in the Oromia
regional state in adama city.

Our Milk Production Company aims to revolutionize the dairy industry by combining innovation,
sustainability, and a commitment to quality. With a clear vision and strategic implementation,
we anticipate achieving both financial success and positive contributions to the community and
environment.

Our primary product offerings will include fresh milk, pasteurized milk, and various dairy
derivatives. We'll also explore opportunities to introduce value-added products such as yogurt,
cheese, and butter, providing a diversified product portfolio.

Our Farm:

At zewditu Dairy, we pride ourselves on our modern and sustainable farming practices. Our dairy
farm boasts lush pastures where our content and healthy cows graze freely, ensuring the
highest quality milk production. We prioritize animal welfare, utilizing advanced technologies to
monitor and enhance the well-being of our herd.

Quality Assurance:

We adhere to stringent quality control measures throughout the entire milk production process.
From the cow's diet to the milking process, every step is carefully monitored to ensure the
production of pure, nutritious, and delicious milk. Our commitment to quality has earned us the
trust of our customers.

Product Range:

Discover a diverse range of dairy products at zewditu Dairy. Whether you're looking for fresh,
pasteurized milk, creamy yogurt, or rich cheese, our product lineup is designed to cater to
various tastes and preferences. We prioritize freshness and flavor, offering products that stand
out for their superior taste and nutritional value.

Sustainability:

As a responsible member of the community, we are dedicated to sustainable and eco-friendly

practices. Our commitment to environmental conservation extends to waste management,
energy efficiency, and ethical sourcing. We strive to reduce our ecological footprint while
contributing positively to the local community.

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Community Engagement:

Zewditu Dairy is more than just a business; it's a part of the community. We actively engage with
local farmers, support educational initiatives, and contribute to community development
projects. Our goal is to create a positive impact on the lives of those around us.

Customer Satisfaction:

Customer satisfaction is our priority. We continuously strive to exceed our customer

expectations by delivering products that not only meet but exceed the highest standards. Our
customer service team is always ready to assist customer, ensuring a seamless experience
from farm to table.

3. THE BUSINESS

Zewditu Milk Production is a local company dedicated to the production and distribution of high-
quality dairy products. Established in [2018E.C], our company has a strong commitment to
providing wholesome and nutritious dairy options to our customers.

Zewditu Milk Production specializes in the production of a diverse range of dairy products,
including fresh milk, yogurt, cheese, and other dairy derivatives. We prioritize quality at every
stage of our production process.

Mission: To provide nutritious and premium-quality milk products while promoting sustainable
and humane dairy farming practices.

Vision: To be the preferred choice for consumers seeking wholesome dairy products,
recognized for our commitment to quality, sustainability, and community well-being.

4. FUNDING REQUIRMENT

The funding requirement for a milk production company can vary based on various factors such
as the scale of operations, infrastructure needs, technology adoption, marketing strategies, and
regional considerations. So we have 2,000,000ETB on our hand and we found 2,000,000ETB
from family and relatives and 1,000,000ETB from Bank by loan. To establish this farm we need
7,000,000ETB. We need extra 2,000,000 to establish the farm from somebody or organization
who has ability to support us based on our plan and vision. Here are some key aspects we
considered when determining the funding requirement for our milk production company:

1. Infrastructure and Equipment:2,000,000ETB

 Dairy farms: Costs for acquiring or setting up dairy farms, including land, barns,
and milking equipment.

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  Processing facilities: Expenses for establishing or upgrading processing units for
pasteurization, packaging, and storage.

2. Livestock:1,200,000ETB

 Purchase or maintenance costs for dairy cows or other milk-producing animals.

 Veterinary care and animal welfare measures.

3. Technology and Automation:1,000,000ETB

 Investment in modern technologies for efficient milking, processing, and

packaging.

 Automation systems for monitoring and managing the herd, processing, and
distribution.

4. Distribution and Logistics:1,500,000ETB

 Vehicles and transportation infrastructure for milk collection and distribution.

 Cold storage facilities and equipment to maintain the quality of dairy products
during transportation.

5. Marketing and Branding:100,000ETB

 Advertising and promotional activities to create brand awareness.

 Packaging design and labeling.

6. Working Capital:600,000ETB

 Adequate funds to cover day-to-day operational expenses such as feed, utilities,

labor, and other miscellaneous costs.

7. Contingency Fund:600,000ETB

 Reserve funds for unforeseen circumstances or emergencies.

5. THE PRODUCT AND SERVICES

1. Fresh Milk Products:

Pasteurized Milk: Offer pasteurized milk in various fat percentages to cater to different
preferences.

Organic Milk: Provide organic milk options for health-conscious consumers.

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 2. Processed Dairy Products:

Cheese: Introduce a range of cheeses, such as cheddar, mozzarella, and feta.

Yogurt: Offer different flavors and types of yogurt, including Greek yogurt and probiotic varieties.

Butter: Provide high-quality butter products.

3. Value-Added Products:

Flavored Milk: Develop flavored milk options like chocolate, strawberry, and vanilla.

Milkshakes: Create ready-to-drink milkshake products in various flavors.

4. Packaging Options:

Eco-Friendly Packaging: Consider environmentally friendly packaging options to appeal to eco-

conscious consumers.

Different Sizes: Provide milk in various sizes, catering to both single individuals and families.

5. Home Delivery Services:

Subscription Services: Offer subscription services for regular milk deliveries to customers'
doorsteps.

Online Ordering: Develop a user-friendly website or mobile app for online orders.

6. Educational Programs:

Farm Tours: Arrange tours of your dairy farm to educate the public about milk production.

Workshops: Conduct workshops on dairy farming, milk processing, and nutrition.

7. Collaborations and Partnerships:

Local Cafes and Restaurants: Collaborate with local eateries to supply them with your dairy
products.

Schools and Institutions: Partner with schools and institutions to supply milk for their cafeteria
or nutrition programs.

8. Quality Assurance and Certification:

Quality Standards: Adhere to and promote high-quality production standards to build consumer
trust.

Certifications: Obtain relevant certifications, such as organic or animal welfare certifications.

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 9. Community Engagement:

Sponsorship: Sponsor local events, sports teams, or community gatherings.

Community Initiatives: Engage in community outreach programs to showcase your commitment

to the local area.

10. Customer Feedback and Loyalty Programs:

Feedback Mechanism: Implement a system for gathering customer feedback and suggestions.

Loyalty Programs: Introduce loyalty programs or discounts for regular customers.

6. THE PLAN

 Marketing plan

The primary focus will be on delivering fresh and nutritious milk to consumers while building a
strong brand presence in the local market.

SWOT Analysis:

 Strengths:

 High-quality milk production

 Locally sourced and fresh ingredients

 Modern production facilities

 Weaknesses:

 Limited brand awareness

 Distribution challenges

 Opportunities:

 Growing health consciousness

 Collaborations with local businesses

 Expansion of product line

 Threats:

 Competition from established brands

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  Economic fluctuations

Marketing Objectives:

1. Increase Brand Awareness:

 Achieve a 20% increase in brand recognition within the first six months.

2. Expand Market Share:

 Capture a 15% share of the local milk market within the first year.

3. Enhance Customer Loyalty:

 Implement a customer loyalty program to increase repeat purchases by 25%.

Marketing Strategies:

1. Product Positioning:

 Position the brand as a provider of fresh, locally sourced, and high-quality milk.

2. Digital Marketing:

 Utilize social media platforms and online advertising to reach the target audience.

3. Partnerships:

 Form partnerships with local retailers and cafes to expand distribution channels.

4. Promotions:

 Offer promotions, discounts, and bundle deals to attract new customers and
encourage repeat business.

5. Community Engagement:

 Sponsor local events, participate in community programs, and engage with local
influencers.

6. Educational Campaigns:

 Launch campaigns emphasizing the health benefits of consuming fresh milk.

Sales and Distribution:

1. Retail Partnerships:

 Establish partnerships with supermarkets, grocery stores, and convenience

stores.

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 2. Direct Sales:

 Explore the option of selling directly to consumers through a website or physical

store.

 Operational plan

Creating an operational plan for a milk production company in Adama involves outlining the day-
to-day processes, resources, and activities required to meet production goals efficiently. Here's
an operational plan

1. Facility and Equipment:

Location: Secure a suitable production facility in Adama, considering factors like proximity to
raw materials, transportation, and compliance with regulatory standards.

Equipment: Acquire modern dairy processing equipment for milk pasteurization,

homogenization, and packaging. Ensure regular maintenance and inspections.

2. Supply Chain Management:

Raw Materials: Establish relationships with local dairy farmers for a steady supply of high-
quality milk.

Inventory Management: Implement an inventory tracking system to manage raw materials and
finished goods efficiently.

3. Production Process:

Quality Control: Implement strict quality control measures at every stage of the production
process to ensure compliance with health and safety standards.

Production Schedule: Develop a production schedule that optimizes equipment usage and
ensures a continuous supply of products.

4. Regulatory Compliance:

Permits and Licenses: Obtain all necessary permits and licenses for operating a milk production
facility in Adama.

Quality Assurance: Establish a quality assurance program to meet regulatory and industry
standards.

5. Staffing:

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Recruitment: Hire skilled staff for production, quality control, and administrative roles.

Training: Provide regular training to employees on safety procedures, quality standards, and
operational protocols.

6. Health and Safety:

Safety Protocols: Develop and enforce strict safety protocols to ensure the well-being of
employees and compliance with occupational health and safety regulations.

Emergency Response: Establish emergency response plans for potential accidents or incidents.

7. Packaging and Distribution:

Packaging: Select suitable and attractive packaging materials for milk products.

Distribution Channels: Develop a distribution strategy that includes partnerships with local
retailers, supermarkets, and potentially direct-to-consumer options.

8. Technology Integration:

Automation: Integrate automation where possible to streamline processes and improve

efficiency.

Data Management: Implement a robust data management system to track production metrics,
sales, and inventory levels.

9. Sustainability:

Environmentally Friendly Practices: Adopt environmentally friendly practices in production and

packaging.

Waste Management: Implement effective waste management systems.

10. Continuous Improvement:

Feedback Mechanisms: Establish channels for receiving feedback from customers, employees,
and suppliers.

Regular Audits: Conduct regular internal audits to identify areas for improvement in operations.

11. Contingency Plans:

Risk Assessment: Identify potential risks to the operation and develop contingency plans.

Business Continuity: Plan for business continuity in the face of unforeseen events or disruptions.

12. Marketing and Sales Coordination:

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Communication Channels: Ensure close coordination between production, marketing, and sales
teams to meet demand and capitalize on market opportunities.

 Organizational plan

Developing an organizational plan for a milk production company in Adama involves outlining
the structure, roles, and responsibilities of the company's staff. Below is a sample
organizational plan:

Organizational Structure:

2.1. Leadership Team:

CEO/Managing Director: Responsible for overall company strategy, vision, and decision-making.

Operations Manager: Oversees day-to-day production activities, ensuring efficiency and quality.

Sales and Marketing Manager: Develops and executes marketing strategies and manages sales
efforts.

Finance Manager: Handles financial planning, budgeting, and reporting.

2.2. Departmental Structure:

Production Department:

Production Supervisor: Manages daily production activities and ensures compliance with quality
standards.

Quality Control Officer: Monitors and maintains product quality throughout the production
process.

Maintenance Technician: Responsible for the maintenance and repair of production equipment.

Sales and Marketing Department:

Sales Representatives: Engage with retailers, supermarkets, and potential customers to

increase product distribution.

Marketing Coordinator: Develops and implements marketing campaigns to promote the brand
and products.

Finance and Administration Department:

Accountant: Manages financial transactions, prepares financial reports, and ensures

compliance with accounting standards.

Administrative Assistant: Provides administrative support to various departments.

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3. Roles and Responsibilities:

Clearly outline the roles and responsibilities of each position within the company.

Encourage collaboration and communication between departments.

4. Recruitment and Training:

Define a recruitment process for hiring skilled and qualified employees.

Develop an orientation and training program for new hires to ensure they understand company
policies and procedures.

5. Company Culture:

Define the company's culture and values.

Promote a positive and inclusive work environment.

6. Communication Plan:

Establish regular communication channels for effective internal communication.

Encourage open communication between management and employees.

7. Performance Evaluation:

Implement a performance evaluation system to assess employee performance and set goals
for improvement.

Recognize and reward outstanding performance.

8. Employee Development:

Offer opportunities for ongoing training and development to enhance employee skills.

Encourage career growth within the company.

9. Health and Safety:

Implement health and safety policies to ensure a safe working environment.

Provide necessary training on safety protocols.

10. Employee Benefits and Welfare:

Outline employee benefits, including health insurance, retirement plans, and other perks.

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Establish employee support programs to enhance well-being.

11. Diversity and Inclusion:

Promote diversity and inclusion within the company.

Foster an environment that values different perspectives and backgrounds.

12. Succession Planning:

Develop a succession plan to identify and groom employees for leadership positions.

Ensure a smooth transition in case of key personnel changes.

By establishing a well-defined organizational plan, the milk production company can create a
solid foundation for efficient operations, employee satisfaction, and overall success in Adama.
Regular reviews and adjustments to the plan will be essential as the company grows and adapts
to market dynamics.

 Financial plan

1. Start-up Costs:

1.1 Facility and Equipment:

Facility Acquisition: 2,000,000 ETB

Equipment Purchase: 3,500,000 ETB

Licenses and Permits: 200,000 ETB

1.2 Initial Operating Expenses:

Raw Materials: 500,000 ETB

Utilities and Maintenance: 150,000 ETB

Marketing and Advertising: 300,000 ETB

Administrative Costs: 250,000 ETB

2. Funding Sources:

Equity: 4,000,000 ETB (Founders/Investors)

Loan: 3,000,000 ETB

3. Revenue Projections:

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 3.1 Sales Forecast:

Projected Monthly Sales (after 6 months): 1,500,000 ETB

Yearly Sales (after 1 year): 18,000,000 ETB

3.2 Revenue Streams:

Wholesale Distribution: 60%

Retail Sales: 30%

Direct-to-Consumer (e.g., local markets, online): 10%

4. Expense Projections:

4.1 Monthly Operational Expenses:

Raw Materials: 100,000 ETB

Labor: 200,000 ETB

Utilities and Maintenance: 50,000 ETB

Marketing and Advertising: 25,000 ETB

Administrative Costs: 30,000 ETB

4.2 Loan Repayment:

Monthly Loan Repayment: 75,000 ETB (estimated)

5. Cash Flow Management:

Working Capital Reserve: 500,000 ETB

Contingency Fund: 300,000 ETB

6. Profit and Loss Statement:

6.1 Monthly Income Statement (Example):

Total Revenue: 150,000 ETB

Cost of Goods Sold (COGS): 60,000 ETB

Gross Profit: 90,000 ETB

Operational Expenses: 305,000 ETB (including loan repayment)

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 Net Profit/(Loss): (215,000) ETB

7. Break-Even Analysis:

Break-Even Point: Approximately 250,000 ETB in monthly sales (excluding loan

repayment).

Time to Break Even: Estimated 10-12 months

7. CRITICAL RISKS

1. Market Risks:

a. Demand Fluctuations:

 Risk: Sudden changes in consumer preferences or economic downturns affecting the

demand for dairy products.

 Mitigation: Conduct thorough market research to understand consumer behavior.

Diversify product offerings and have contingency plans for market fluctuations.

b. Intense Competition:

 Risk: Increased competition from existing or new entrants in the dairy industry.

 Mitigation: Develop a unique value proposition, build a strong brand, and continuously
monitor the competitive landscape.

2. Operational Risks:

a. Supply Chain Disruptions:

 Risk: Issues with the supply of raw materials

 Mitigation: Establish reliable relationships with multiple suppliers and implement a robust
supply chain management system.

b. Equipment Breakdown:

 Risk: Malfunctions or breakdowns in production equipment.

 Mitigation: Regular maintenance schedules, contingency plans for equipment failure, and
investing in quality equipment.

c. Quality Control Issues:

 Risk: Contamination or quality issues in the production process.

 Mitigation: Implement strict quality control measures, adhere to regulatory standards, and

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 invest in employee training.

3. Financial Risks:

a. Capital Shortfall:

 Risk: Insufficient funds to cover start-up and operational costs.

 Mitigation: Careful financial planning, regularly monitor cash flow, and have contingency
plans for unexpected expenses.

b. Price Volatility:

 Risk: Fluctuations in the prices of raw materials or dairy products.

 Mitigation: Negotiate stable pricing agreements with suppliers and consider hedging
strategies.

c. Debt Burden:

 Risk: Difficulty in repaying loans due to unexpected financial challenges.

 Mitigation: Develop a realistic repayment plan, negotiate favorable loan terms, and explore
alternative financing options.

4. Regulatory Risks:

a. Compliance Issues:

 Risk: Failure to comply with local or national regulations for food safety and dairy
production.

 Mitigation: Stay informed about regulatory requirements, implement robust compliance

procedures, and conduct regular audits.

b. Regulatory Changes:

 Risk: Changes in regulations impacting the dairy industry.

 Mitigation: Stay updated on regulatory developments, engage with industry associations,

and adapt operations accordingly.

5. External Risks:

a. Health Pandemics:

 Risk: Outbreaks affecting supply chains, distribution, and consumer behavior.

 Mitigation: Develop contingency plans for business continuity, prioritize employee safety,

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 and diversify suppliers.

b. Environmental Factors:

 Risk: Natural disasters affecting production facilities or agricultural operations.

 Mitigation: Implement sustainability measures, assess environmental risks, and have

disaster recovery plans.

8. EXIT STRATEGY

Considerations for Family-Centric Exit Planning:

Communication: Open and transparent communication with family members about the
exit strategy and their roles in the future.

Family Agreement: Establish a family agreement or constitution outlining the roles,

responsibilities, and rights of family members in the business.

Succession Planning: Carefully plan and execute the succession of family members to
maintain business continuity.

Professional Advisors: Engage legal, financial, and business advisors to ensure a smooth
transition and fair valuation.

Flexibility: Be open to adjusting the exit strategy based on the evolving needs and
aspirations of family members.

 Customizing the exit strategy to involve family members ensures a smooth transition
while preserving the legacy of the business. Regularly revisit the plan and make
adjustments as needed based on family dynamics and market conditions.

9. APPENDIX

Curriculum vitae for the company owners

 Dr. Bethelhem Behailu graduate of veterinary medicine from addis ababa university collage
of veterinary medicine

Email: [email protected]

Phone: 0973026644

Marital status: Unmarried

Citizenship: Ethiopian

Address: Adama

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 Solomon Behailu graduated from Hawasa university

Email: [email protected]

Phone: 0921008706

Marital status: Unmarried

Citizenship: Ethiopian

Address: Adama

 Biniam Behailu graduated from Bahirdar university

Email: [email protected]

Phone: 0923457688

Marital status: Unmarried

Citizenship: Ethiopian

Address: Adama

 Eyob Behailu learning at Adama Science and Technology University

Email: [email protected]

Phone: 0902335678

Marital Status: Unmarried

Citizenship: Ethiopian

Address: Adama

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THE IMPACT OF BUSINESS ON ANIMAL WELFARE

The impact of business on animal welfare can vary widely depending on the industry, practices,
and regulations in place. Here are some key considerations:

1. Farming Practices:

 Factory Farming: Intensive farming practices can lead to poor living conditions,
overcrowding, and the use of hormones and antibiotics. These factors can
negatively impact the welfare of animals raised for food.

 Free-Range and Organic Farming: Some businesses adopt more humane

practices, such as free-range or organic farming, providing animals with more
space and access to natural behaviors.

2. Animal Testing:

 Many industries, particularly pharmaceuticals and cosmetics, have historically

used animals for testing. This has raised ethical concerns regarding the well-
being of animals subjected to experiments.

3. Entertainment Industry:

 Animals in entertainment, such as circuses, zoos, and aquariums, may face

challenges related to confinement, training methods, and overall well-being.
There's an ongoing debate about the ethics of using animals for entertainment
purposes.

4. Fashion Industry:

 The use of animal products in the fashion industry, such as fur, leather, and wool,
has been a source of controversy. Some businesses have shifted towards cruelty
-free alternatives and sustainable practices.

5. Supply Chains:

 Companies with extensive supply chains may indirectly impact animal welfare
through sourcing practices. For example, businesses involved in deforestation or
habitat destruction can harm wildlife.

6. Regulations and Standards:

 The level of government regulations and industry standards can significantly

influence how businesses treat animals. Strong regulations and ethical
standards can incentivize businesses to adopt more humane practices.

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 7. Technological Innovations:

 Advancements in technology, such as lab-grown meat and alternative testing

methods, offer alternatives that can potentially reduce the need for traditional
animal-related practices.

8. Global Impact:

 As businesses operate on a global scale, the impact on animal welfare can vary
across different regions based on local regulations, cultural attitudes, and
economic conditions.

Overall, the impact of business on animal welfare is complex and multifaceted. Ethical and
sustainable business practices, along with increased awareness and regulatory measures, can
contribute to positive changes in the treatment of animals.

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