Pistachio, Cashew, and Coffee Processing Plant

FEASIBILITY STUDY

Aices Salvador
APS Business Solutions
Table of Contents
Introduction......................................................................................................................3
The Company......................................................................................................................... 3
Business Objectives.............................................................................................................. 4
Value Proposition.................................................................................................................. 4
Reasons to Invest in the Industry..................................................................................5
Reasons to Invest in Bahadi Company for Trading.....................................................5
Core Competencies.........................................................................................................6
Project Description.........................................................................................................7
Project Pistachio....................................................................................................................7
Project Cashew...................................................................................................................... 8
Project Coffee........................................................................................................................ 9
Plant Location (Ethiopia, Addis Baba)........................................................................10
Market Feasibility..........................................................................................................11
Global Market Overview......................................................................................................11
Pistachio........................................................................................................................................... 11
Cashew............................................................................................................................................. 12
Pricing............................................................................................................................................... 15
Customer/Target Market Profile..........................................................................................16
Marketing and Sales Channels...........................................................................................16
Pistachio........................................................................................................................................... 16
Cashew............................................................................................................................................. 17
Coffee............................................................................................................................................... 17
Technical Feasibility.....................................................................................................19
Financial/Economic Feasibility....................................................................................20
Manpower Plan.................................................................................................................... 20
Capital Investment............................................................................................................... 21
Operating Expenses Assumptions.....................................................................................22
Sales Estimate..................................................................................................................... 22
Pistachio: Financial Projections......................................................................................................... 22
Sales Market......................................................................................................................... 23
Pistachio: Product Category Breakdown........................................................................................... 23
Projected Profit and Loss Statement.................................................................................24
Pistachio........................................................................................................................................... 24
Key Risks Identification and Mitigation......................................................................25
Investment Highlights...................................................................................................26
 Pistachio............................................................................................................................... 26
Cashew................................................................................................................................. 26
Coffee................................................................................................................................... 26
References.....................................................................................................................26
Introduction
This feasibility study aims to determine the viability of having a processing plant
in Ethiopia, specifically one that is strategically located in Addis Ababa, the capital and
largest city in Ethiopia. The processing plant will focus on three (3) major projects
namely: Project Pistachio, Project Cashew, and Project Coffee, all of which will be
integrated into one processing plant to be handled and managed by Bahadi Company
for Trading.

This paper evaluates the three (3) projects’ potential for success, taking into
consideration the projects’ market feasibility, technical feasibility, feasibility, financial
and economic feasibility. For market feasibility, the current industry trends, the market
potential, the competition, and marketing and sales channels shall be analyzed. With
technical feasibility, the details on how the company will deliver the goods, including
transportation, business location, equipment needed, materials and labor shall be taken
into consideration. As for financial and economic feasibility, a projection of the amount
of funding or startup capital needed, the sources of capital the business can and will
use, the return on investment, sales estimate, and the potential percentage growth of
revenue will be looked into.

In addition, identification and mitigation of the corresponding risks, limitations,

and possible restrictions related to pursuing this venture will be tackled in detail as part
of the primary goal of this study. Other common factors affecting this business venture
will be assessed thoroughly to ensure that investing in this kind of business will reap
positive returns.

The Company
Bahadi Company for Trading is a
limited liability company owned by
Saeed Bahadi. Since 1957, the
company has been in operation
involving the business of exporting,
importing, and manual roasting of coffee
and nuts.

It is the primary goal of Bahadi

Company to supply high quality products
(pistachio, cashew, and coffee) at a very
affordable price to consumers located in
the Ethiopia, Middle East and Europe on
wholesale and retail and even those on
Business Objectives

O ffer Pistachios-C ashew -C offee of the H ighest Q uality and

required sizes in adherence w ith the regional Standards and
dem and of International M arket.

G ain adequate m arket share in the B ulk T rading B usiness

of Pistachios-C ashew -C offee in the M iddle E ast, A frica
and E urope M arket in the next 5 years.

L everage E thiopia as the H ub for N uts T rading in the M iddle

E ast, A frica, Europe and A sia Pacific R egion by 2020.

Value Proposition
Hig
h
Lower Defect Ratio, Large sizes will be
Qu
available.
alit
y Right size and grade.
Pro
duc
t Experience since 1957
Know-How

Direct Sourcing from

Competitive Pricing Farmers

Several Near Export

Ease of Export Logistics Hubs
Reasons to Invest in the Industry
 Nuts (specifically pistachio,
cashew), and coffee beans
are heavily consumed in
temperate countries.
 Good source of foreign
exchange through import and
exports.
 Local and foreign demand for
these nuts are on the rise.
 North America and Europe
are known as the largest
consumers of cashew nut.
Both will be part of the target
consumer of Bahadi
Company.
 Great potential to provide
source of livelihood for the
nuts growers, empower rural
women in the processing
sector, and create
employment opportunities.

Reasons to Invest in Bahadi Company for Trading

Core Competencies

Pistachio Cashew Coffee

Cashew nut is the
only cash crop that
investors can rely
on all-year-round.
The global cashew
market was valued
at up to $7.8 billion
last year and is
projected to grow
by 15% this year. 
Either prepared as
delicacies or used
in confectionery. 
The shell contains
skin blistering oil
which is highly
valued for its many
industrial
applications.
Project Description

Project Pistachio

 Establish an integrated Cleaning,

Sorting, Grading, Processing and
Packing Facility of the Pistachios.
 Apply highest international quality
standards to introduce high quality
product that matches the European
standards.
 Overcome logistics and financial
difficulties that facing current
exporters from Iran compare to U.S
exporters.
 Overcome distance barrier
between USA and Middle East.
 Benefit of the 5% duties exemption
between ARAB countries.
 Enter into Long Term Contracts
with Pistachio Farms in Iran & U.S.
to secure Supply at Competitive
Prices.
 Control the Pistachio market by
providing high quality & freshly
packed product at very competitive
price (bulk and packed).

Product Sourcing
 The crop harvest occurs once a
year in the months of August and
September;
 The Annual Crop Volume targeted
is 3,600 MT to be shipped over 12
months period;
 The Product Sourcing Process will
have to be initiated in coordination
with the Pistachio Association by
March every year (includes Farm
Inspection, Price Negotiations,
Annual Volume Commitments,
Agreement on Payment Terms and
Contract Sign-Off).
 Outsourced from Iran and USA at
least 50% if Iran can handle the
needed quantities.
Project Cashew

 For this project, Bahadi Company for Trading plans to enter into long-term contracts
with cashew farmers for continuous supply and maintain competitive pricing for bulk
and packed orders.
 Use cashew processing equipment with higher production and processing capacity.
 Produce high quality cashew nuts and maintain international standards in producing
and processing the same.
 Keep a minimum output capacity of 5,000 MT per year with consistent quality and
supply to export processed cashew.
 Maintain at least 30% profit margin after a year of operation.

Product Sourcing
 Harvest of mature cashew
fruits takes place between
February or early March up
till April.
 Initial processing capacity
of 5,000 tonnes. Expected
to reach its full capacity of
20,000 tonnes in 5 years.
 Partner with African
Cashew Alliance and the
others to get strong
connection with
international cashew
industry stakeholders.
 Outsourced raw materials
from African Countries.
Project Coffee
Plant Location (Ethiopia, Addis Baba)
Currently, Ethiopia was named among the top 10 fastest growing economies in
the world.1 According to the World Bank, Ethiopia’s “strong and broad-based growth
over the past decade” has lifted its GDP to an impressive average of 10% per year. In
fact, last year, Ethiopia attracted $1.2 billion in foreign direct investments, and this year
it expects a record $1.5 billion, according to the Financial Times, a UK business daily. 2

The processing plant will be strategically located in Ethiopia, Addis Ababa with a
total area size of 20,000 sq. meters. The said processing plant will be divided into three
(3) facilities covering the three (3) major projects of Bahadi Company: pistachio,
cashew, and coffee. For each facility, there will have a clean, standardized, and
designated area with customized processing equipment for each project. There will
likewise be an assigned management team and trained staffs who will oversee,
manage, and ensure smooth processing operations that meet targeted quality and
quantity goals. Below shows the basic procedure for processing the nuts:

1
https://www.un.org/africarenewal/magazine/august-2015/ethiopia’s-development-mostly-people-driven
2
https://www.un.org/africarenewal/magazine/august-2015/changing-face-ethiopia
Market Feasibility

Global Market Overview

Pistachio

SUPPLY OVERVIEW

Ira n

US

Non-Yielded harvest volume

Source: Administrative Committee for Pistachios (ACP), International Nut Congress, Iranian Pistachio
Association
Cashew

The global cashew market was valued at up to $7.8 billion last year and is
projected to grow by 15% this year. African countries produce about 45% or 1.2 million
tonnes of global cashew nuts annually. However, only 10% of this is processed locally.
Moreover, the development of a larger middle class with higher purchasing power
stimulates the growth of cashew consumption in Middle East, North Africa, Russia and
Eastern European countries.3

Global Consumption

The global cashew consumption attained 561,000 tons kernel equivalent in 2012
and neared 675,350 tons in 2013, according to estimations of the International Cashew
Council and the Foretell Business Solutions Pvt Ltd.

*Global Consumption (MT)

2012 2013 2014 2015 2016
Israel 4,041 2,840 4,490 4,349 4,001
Saudi 6,203 5,310 7,977 8,541 7,854
Arabia
India 289,677 230,278 224,384 257,190 301,719
USA 109,448 130,477 128,342 141,119 143,256
Germany 26,177 25,591 23,016 23,810 35,930
Netherland 12,366 23,005 20,796 23,536 17,236
s
UK 12,381 9,636 16,052 19,854 16,772
France 8,416 8,698 10,027 10,418 8,649
Italy 5,410 4,744 7,000 6,745 7,060
Spain 4,383 4,935 4,511 5,303 3,498

As for the European market for cashew nuts, the same is expected to grow
steadily. This growth is likely to be driven by changes in consumption patterns of
European consumers including rising demand for vegetable sources of protein to
replace meat. Central and Eastern European countries are increasing imports of
cashew nuts faster than Western Europe. Within Europe, the countries with the highest
annual import growth in quantity of cashew nuts in the last five years were Poland
(40%), Slovenia (39%), Croatia (37%) and Lithuania. European imports of cashew nuts
into Europe increased annually by an average rate of 17% in value in the last five years
and reached €1.3 billion.

3
http://www.intracen.org/uploadedFiles/intracenorg/Blogs/Cashew_Nuts_-_Main/Cashew%20quarterly
%20bulletin%20Q2%20Final.pdf
 Looking at the percentages, the assessment for world cashew consumption was
31% in India, 23% in USA, 17% in the EU, 8% in China, 2.5% in Australia and the
remaining 16% elsewhere.

Consumption of edible nuts in Europe is increasing by an average annual rate of

12%, although there was a decrease in consumption value in 2016 compared to 2015.
The largest increase in the consumption value of nuts was in Romania, where value
increased from €15 million in 2012 to €54 million in 2016. The largest European
consumer of cashew nuts in Europe is Germany, which had a total consumption of
23,810 tonnes and estimated consumption of 1.18 kg of cashew nuts per capita in 2015.
However, the Netherlands is the largest European consumer of cashew nuts per capita,
at 1.74 kg. Other major consuming countries are the United Kingdom (with a total
consumption of 19,800 tonnes), France (10,400 tonnes) and Italy (6,700 tonnes).
Production

World Cashew Production4

Global production of cashew nuts in the 2016/17 season reached 754,700 metric
tonnes, an increase of 30 thousand tonnes (4%) from the previous season. The main
producing cashew country in 2016/17 was Côte d’Ivoire with 167,000 metric tons of
cashew kernels (22%), followed by India with 160,000 MT (21%) and Vietnam with
96,000 MT (13%). West African countries (Benin, Côte d’Ivoire and Ghana) produced
15% below the previous season, although for the next season an increase of 15–30% is
expected compared to the current season. The estimated crop for Vietnam and India is
expected to be higher than in the previous season.

4
https://www.nutfruit.org/files/tech/1524481168_INC_Statistical_Yearbook_2017-2018.pdf
Import/Export Opportunities

India and Vietnam are the

two major producers and exporters
of cashew, accounting for 40%
and 33% market shares,
respectively. Brazil is another
major exporter that supplies to the Top Exporters Top Importers
United States. The largest cashew India Vietnam
importers in terms of value are Vietnam India
Vietnam, India, and the US. These Nigeria United States
countries together account for Côte d'Ivoire European Union
85% of the total cashew import Benin China
share, which signifies a Brazil Japan
concentrated nature of import Saudi Arabia
trends. Other importers of cashew
kernel are European Union, China,
Japan and Saudi Arabia.

Pricing

The latest global average price is at $1.43USD per kg with a price volatility of
+13.23%. International prices for cashews have dropped by nearly half since March
after consumers in the United States and Saudi Arabia objected to high prices. Price
elasticity of demand for cashew is high. Increases in kernel prices are passed on to
consumers, who can shift rather easily to other types of edible nuts. Cashew nuts
belong to the more premium segment of nut snacks and reach much higher prices than,
for instance, peanuts.

Customer/Target Market Profile

The primary target market

of Bahadi Company for Trading
are wholesalers and retailers
from Ethiopia, Middle East, add
Middle Ethiopi
Europe who are looking for East a
suppliers of processed nuts,
specifically pistachio, cashew,
and coffee beans.

Secondarily, Iran and US

will be the target market to
import pistachio from. African
Countries to import Cashew.
Europe
Ethiopian coffee to be processed
for Coffee project.

Marketing and Sales Channels

Pistachio

Local Market Distribution / Year

Wholesalers 500 MT
Roasters/ Private Labels 500 MT

Established Distribution Network Distribution / Year

Middle East Export
 KSA Major Distributors 3,500 MT
 Roasters/ Private Labels 3,100 MT

Europe Export
 Roasters 1,400 MT

ASIA USA Export

 Roasters 3,000 MT
Cashew

Local Market Distribution / Year

Wholesalers 3000 MT
Roasters/ Private Labels 3000 MT

Established Distribution Network Distribution / Year

Ethiopia Export 5,000 MT

Middle East Export

 KSA Major Distributors 3,500 MT
 Roasters/ Private Labels 3,500 MT

Europe Export
 Roasters 2,500 MT

Coffee
Participate in B2B Exhibitions - Enhance Brand & Quality Assurance

Gulf Foods

Fruit Logistica (Germany)

Anuga (Germany)

SIAL (Paris)

SIAL (China)
Technical Feasibility

 Processing plant with

Pistachio
an area size of
20,000 sq. meters.
 Small-Medium
Product Type scale Size/Grade Product Volume Product Volume
export-oriented (%) (MT)
pistachio-cashew-
Inshell 18/20 10% 40
coffee factory with 20/22 30% 120
over 120 600 22/24 30% 120
employees
Closed shell
considered. Assorted 20% 80
Defectiveof the plant
 Capacity 5% 20
is approximately
3,000-5,000 metric
Cashewtons of pistachio-
cashew-coffee per
Assetannum.
Description Capacity Space Requirement
(kg/h) (mm)
Cleaning and Calibration 958 14600x6200x7000
Washing and Humidification 800 12400x9100x6600
Bath Roasting 800 9100x4100x7600
Automatic Shelling and Shell-Kerne 800 26800x18000x7600
Separation
Drying 800 6200x12400x4800
Mechanical Peeling, Grading, and 800 11400x17300x3700
Sorting
Cleaning, Weighing, and Packing 800 5400x13700x4200

Financial/Economic Feasibility

Manpower Plan

Job Function # of Monthly Total Total Monthly Annual

FTEs Salary Monthly Employee Employee
Benefits Expense
President 1 $13,500 $13,500 $2,000 $162,000
Commercial 1 $9,000 $9,000 $1,200 $108,000
Director
Secretary 1 $1,200 $1,200 $300 $14,400
Production 3 $6,000 $18,000 $850 $216,000
Manager
Quality 3 $6,000 $18,000 $650 $216,000
Control
Manager
Food 3 $4,000 $12,000 $550 $144,000
Technologist
Sales 12 $1,200 $14,400 $800 $172,800
Executives
Admin Staff 3 $3,000 $9,000 $1,200 $108,000
Production 6 $2,500 $15,000 $600 $180,000
Supervisor
Purchase 3 $1,500 $4,500 $600 $54,000
Executives
HR & Pro 3 $2,500 $7,500 $300 $90,000
Specialist
Production 18 $700 $12,600 $420 $151,200
Skilled Labor
Store Keeper 3 $1,500 $4,500 $150 $54,000
Hand Sorting 18 $500 $9,000 $300 $108,000
Labor
Helpers/ 18 $500 $9,000 $340 $108,000
Cleaners
Total 96 $157,200 $10,260 $1,886,400
Finance 11% $207,504
Charges
Grand Total $2,093,904
Capital Investment

Pistachio

Asset Country Capital Depreciation/ Depreciation

Description of Origin Investment Years Timeline Expenses $ (Annual)
Silos China $60,000 10 $6,000
Dryers Europe $40,000 5 $8,000
Conveyors Turkey $40,000 5 $8,000
Sorting China $200,000 8 $25,000
Machine
Hand Germany $40,000 5 $8,000
Sorting
Built
Roasting Turkey $70,000 8 $8,750
Machines
Packing China $60,000 8 $7,500
Machines
Tools & Global $40,000 5 $8,000
Accessories
Food USA $50,000 5 $10,000
Technology
Lab
Total $600,000 $89,250
Finance 11% $66,000
Charges
Grand Total $155,250
Cashew

Asset Description Capital Depreciation/ Depreciation

Investment Years Timeline Expenses $
(Annual)
Cleaning and Calibration $180,421 5 $36,084
Washing and $98,587 5 $19,717
Humidification
Bath Roasting $190,834 5 $38,167
Automatic Shelling and $896,135 5 $179,227
Shell-Kerne Separation
Drying $167,240 5 $33,448
Mechanical Peeling, $252,080 5 $50,416
Grading, and Sorting
Cleaning, Weighing, and $122,447 5 $24,489
Packing
Total $1,907,745   $381,549

Operating Expenses Assumptions

Pistachio

Operating Expenses Monthly Expenses Annual Expenses

Factory Rent $12,500 $150,000
Electricity Expenses $8,000 $96,000
Water Expenses $2,000 $24,000
Marketing Expenses $40,000 $480,000
Other Operating Expenses $40,000 $480,000
Total $102,500 $1,230,000
Finance Charges 11% $135,300
Grand Total $11,275 $1,365,300
Cashew

Operating Expenses Monthly Expenses Annual Expenses

Factory Rent $12,500 $150,000
Electricity Expenses $10,000 $120,000
Water Expenses $5,000 $60,000
Marketing Expenses $60,000 $720,000
Other Operating Expenses $60,000 $720,000
Total $147,500 $1,770,000
Finance Charges 11% $194,700
Grand Total $16,225 $1,964,700

Sales Estimate

Pistachio

Size / Product Product Sales Total

Product Type Price ($ per
Grade Volume (%) Volume (MT) Revenue $
MT)
18/20 10% 40 10,500 420,000

Inshell 20/22 30% 120 10,000 1,200,000

22/24 30% 120 9,600 1,152,000
28/30 20% 80 8,800 704,000
Closed Shell Assorted 5% 20 6,900 138,000
Defective - 5% 20 4,000 80,000
Total Revenue/ month - 100% 400 - 3,694,000
Total Revenue/ CY - 44,328,000
For every 1,000 MT of Pistachio Procured it is assumed that 900 MT will be In shell Pistachios, 50 MT will
be Closed Shell Pistachios and the remaining 50 MT to be Defective Pistachios. Crop Procurement is
assumed to be active only for 1 Month in a Year.
Cashew

Market Product Type Annual Sales Annual Sales Sales Price

Volume (MT) Volume (%) ($ per MT)
Ethiopia In-shell/Closed shell 2000 20% $2,860,000
Ethiopia No shell 2500 16% $3,575,000
Middle In-shell/Closed shell 500 12% $715,000
East
Middle No shell 1000 18% $1,430,000
East
Europe In-shell/Closed shell 500 14% $715,000
Europe No shell 2500 20% $3,575,000
Grand 9000 100% $12,870,000
Total

Sales Market

Pistachio

Market Product Type Annual Sales Volume Annual Sales Volume

(MT) (%)
Ethiopia In-shell 1000 12%
KSA In-shell 2400 27%
KSA Closed shell 1100 12%
Kuwait In-shell 400 4%
Bahrain In-shell 400 4%
Qatar In-shell 200 2%
Oman In-shell 200 2%
Lebanon In-shell 400 4%
Jordan In-shell 400 4%
Eqypt In-shell 500 6%
Eqypt Closed shell 250 3%
North In-shell 350 4%
Africa Roasted
Europe In-shell 1400 16%
Grand 9000 100%
Total
*Of the 10,000 MT procured Annually only 9,000 MT will be sold while 1,000 MT is
considered Wastage.

Cashew

Market Product Type Annual Sales Volume Annual Sales Volume

(MT) (%)
Ethiopia In-shell/Closed 2000 20%
shell
Ethiopia No shell 2500 16%
Middle In-shell/Closed 500 12%
East shell
Middle No shell 1000 18%
East
Europe In-shell/Closed 500 14%
shell
Europe No shell 2500 20%
Grand 9000 100%
Total

Projected Profit and Loss Statement

Pistachio
 Description Amount ($)
Product Cost / MT 8,400
Annual Production (MT) 4,800
Revenue ($) 44,328,000
Cost of Goods Sold ($) 40,320,000
Gross Profit ($) 4,008,000
Gross Profit Margin 9%
Staff Salary Expenses ($) 826,584
Land Rent & Running Exp. ($) 1,279,200
Depreciation Expenses ($) 95,250
Total Operating Expenses ($) 2,201,034
Net Profit ($) 1,806,966
Payback Period ~ 1 Months

Key Risks Identification and Mitigation

Pistachio

Risk Risk Definition Risk Mitigation

Type

Supplier Scattered Farming Land. Secure Long-Term Sourcing

Risk Outsourcing of raw materials Contracts with Pistachio
mainly from US (at least 50%) and Associations/ Large Farmers
Iran if the latter cannot handle
quantity needed.
Hesitation from Farmers to enter Appoint Iranian Agent to
into long-term contracts successfully engage with Pistachio
Associations/ Large Farmers
Unwilling to accept Bahadi Negotiate and Agree on the Bahadi
Company supervision in the Company Requirement via the
Harvest Process. Iranian Agent
Failure to honor Long-term Monitor and Control Product
Contracts in terms of Price, Volume Sourcing Operations under the
and Produce Quality guidance of the Iranian Agent
Quality Presence of high proportion of Bahadi Companyin Iran to monitor
 Risk Closed Shell and Blank Pistachios. and control the end-to-end
Product Damage (Insects, Black Pistachio Harvesting.
Shells and Deformation)
Failure to meet Produce Quality Bahadi Companyin Iran to monitor
Requirements and control the Quality Assurance
prior to Product Shipment from
Iran.
Payment Currency (Foreign Exchange) Adopt Hedging Techniques, in
Risk Fluctuations coordination with MFI Finance, to
mitigate Forex Loss
Payment Transfer and Settlement Process Payment Transfer and
with Farmers Settlement via Iranian Agent.
Credit Hesitation from Farmers / Pistachio Negotiate and Agree on the Bahadi
Risk Association to accept Bahadi Company Requirement via the
Company Payment Terms Iranian Agent
Logistics Shipping & Logistics Related Delay Bahadi Company in Iran to monitor
Risk and control the Quality Assurance
Product Storage & Handling in Iran and Supply Chain in Iran.

Cashew

Risk Risk Definition Risk Mitigation

Type

Supplier Raw materials will primarily come Secure Long-Term product

Risk from different farm lands in African sourcing Contracts with cashew
countries. farmers
Difficulty in entering and Appoint an agent or create a sales
maintaining long-term contracts negotiation team to handle and deal
with local farmers with farmers
Harvest Process will govern by Enter into partnership agreement
local farmers/suppliers with with terms relating to harvesting
minimal supervision from Bahadi process.
Company
Possible breach of contract along Monitor and Control Product
the way in terms of Price, Volume Sourcing Operations under an
and Produce Quality exclusive agreement with farmers
Quality Presence of high proportion of Bahadi Company in Ethiopia to
Risk damaged and blank Cashew nuts. monitor and control the end-to-end
Product Damage (may cause by Cashew Harvesting.
insects, deformation, etc.)
Failure to meet Produce Quality Bahadi Company in Ethiopia to
Requirements monitor and control the Quality
 Assurance prior to Product
Shipment to target markets.
Payment Currency (Foreign Exchange) Will adopt the foreign exchange
Risk Fluctuations rate/price as of purchase.

Payment Transfer and Settlement Will partner with Process Payment

with Farmers and Consumers Transfer and Settlement agencies
to have a smooth transaction.
Credit Hesitation from Farmers / Enter into payment and credit
Risk Association to accept Bahadi arrangement with
Company Payment Terms farmers/associations to address
this problem.
Logistics Shipping & Logistics Related Delay Bahadi Company in Ethiopia to
Risk monitor and control the Quality
Product Storage & Handling Assurance and Supply Chain
including storage, handling, and
delivery to target markets.

Investment Highlights

Pistachio

Monthly Product Cycle Total

Description
Expenses ($) (Month) Expenditure($)
a. Salaries 74,600 12 895,200
b. Factory setup (utilities and Machineries) 690,000 1 690,000
c. Working Capital 102,500 12 1,230,000
e. 3 months Crop Purchase Instalments 6,000,000 3 18,000,000
Total 20,815,200

Cashew
Coffee

Consolidated Pre-Need Capital

Estimated Needed Investment Capital Budget (USD)
Equipment
Pistachio $3,776,250
Cashew $11,446,471
Coffee $15,222,721

Operating Expenses (projected)

Pistachio $1,365,300
Cashew $1,964,700
Coffee

Consolidated Manpower $3,330,000

Working Capital
Pistachio $102,500 $1,230,000
Cashew $100,000 $1,200,000
Coffee

Crop Purchase Installments (3 months)

Pistachio $6,000,000 $18,000,000
 Cashew $5,000,000 $15,000,000
Coffee

TOTAL $53,982,721

References