WOLKITE UNIVERSITY
College of Agriculture and Natural Resources
Department of Animal Production and Technology
PROJECT PROPOSAL ON CATTLE FATTENING FARM
Prepared By:
Tesfaye Feyisa (MSc)
Wolkite University
September, 30/2015
1
Table of Contents
Executive summery……………………………………………………………………………..II
Lists of tables………………………………………………………………………...................III
1. INTRODUCTION…………………………………………………………………………….1
2. CATTLE (CULL OXEN) FATTENING………………………………………………..…...2
2.1. The traditional highland practice………………………………………………………2
2.2. By product based fattening of oxen………………………………………………….....2
2.3. The Hararghe fattening system.………………………………………………….……2
3. PROJECT LOCATION………………………...…………………………………………….3
3.1. Agro ecology…………….……………………………………………………………....3
3.2.Watersource….………………………………………………………………………..3
3.3. Cattle breed………………………………………………………………………….....3
3.4. Feed sources..…………………………………………………………………………...3
4. CATTLE FATTENING MANAGEMENT……………………………………….………...4
4.1. Feeding practice…………………………………………………………………….......4
4.2. Deworming and spraying…………………………………………………………...…4
4.3. Disease prevention……………………………………….…………………………..…4
4.4. Housing…………………………………………………………………….....................4
5. FINANCIAL ANALYSIS ………………………………….....................................................5
5.1. Estimation and Assumptions made…………………………………............................5
5.1.1. Cost Estimation………………………………….......................................................5
5.1.2. Capital Investment…………………………………...................................................5
5.1.3. Replacement of capital Items ………………………………….................................5
5.1.4. Operational cost …………………………………......................................................6
5.1.4.1. Direct operation cost …………………………………...........................................6
5.2. Assumptions …………………………………................................................................6
5.3. Implementation Schedule…………………………………...........................................6
5.4. Revenue ………………………………….......................................................................6
Appendixes Breakdown of working capital and design of the house
I
2
Summery
WKU is a newly established University in south western part of Ethiopia. Currently, the
department of Animal production and Technology has 177 students, 42 first year, 32 students
second year, 36 third year and 67 first year summer students. It is a solid fact that these students
should get practical training to enrich their skill so that they will be competent in market.
However, as the department and the University are new, students of Animal production and
technology are not lucky enough to get in depth practical sessions especially in most elite
Animal Science courses such as poultry, dairy, fish farming, beekeeping, beef farming, forage
and pasture production in their university
The main purpose of this particular project paper is just to fill the gap stated above at least in
establishing beef farming in or around the University that will in turn serves as student’s and
farmers demonstration site, will initiate students and instructors of the department to participate
in research activities and to generate income. Fattening program require its own geographical
areas for fattening.
3
II
Lists of tables
Page
Table:1.Total fixed and operational costs of the project…………………………………………5
Table: 2. Assumptions of replacement of fixed capital cost……………………………………6
Table: 3. fixed cost of the Project (Birr) …………………………………………………….…7
Table: 4. Man Power required for the Project………………………………………………..…7
Table: 5. Other Operation Costs required of fattening farm (Financial price)……………...……8
Table: 6. Cost of Animal and Animal feed (Birr)…………………………………………………8
Table: 7. Breakdown of working capital for projection year…………………………………..…9
Table: 8. Production and Revenue projection………………………………………………....10
Table: 9. Projected profit and Loss statement…………………………………………………11
4
1. INTRODUCTION
Livestock play a vital role in supporting the livelihoods of millions of people throughout the
developing world. From the households who keep a few chickens in their backyards, to the
pastoralists who treks their herds vast distances. They provide meat, milk, eggs, skins and hides;
they haul carts and ploughs; they power wells and mills; they bring cash and prestige; they act as
savings and insurance. Some 30% of the total human requirements for food and agriculture and
some 70% of the world’s rural poor depend on livestock as a component of their livelihoods.
The varied and extensive agro ecological zones of Ethiopia make the country suitable for many
kinds of livestock in large numbers. Ethiopia has the largest livestock population in Africa
estimated to be 47.57 million cattle, 26.1 million sheep, 21.7 million goats, 1.78 million horses,
5.57 million donkeys, 380 thousand mules, 1 million camels, 39.6 million chicken and 4.7
million beehives.
Though the country has huge livestock resource, the meat productivity is not still subsidize the
people due to some constraints such as poor animal nutrition, animal disease and lack of
knowledge or skill in changing the traditional production system to modern beef cattle
production system. The production system of beef is mainly traditional which indicated that the
produced meat is below the demand. Guraghe zone is not the exception to this and there is the
problem of meat production. Guraghe zone is known for meat consumption mainly which is
known as “kitfo’’ in Amharic. And also the zone is known for the ceremony of “Meskel” during
which a large (huge) number of livestock is demanded to be slaughtered. But regardless of this,
the zone by far lags back to the production of meat and the fattened cattle came from another
zone like Wolliso and other places. Therefore, the main objective of this particular project paper
is just to fill the gap stated above at least in establishing beef farming in or around the wolkite
that will in turn serves as student’s and farmers demonstration site, hotels and cafeterias as a
source of meat and to generate income. It also creates job opportunities for the jobless newly
graduated students. The priorities will be given for the jobless animal science graduate. But, the
main objectives of this project will be to create job opportunities for jobless peoples as
community service so as they will be sufficient enough to help themselves and return it later on.
Therefore, the objectives of the project proposal will be:
5
Objectives of the project
 To create job opportunities for jobless graduate students by proving them all the
necessary things
 To train the surrounding community (farmers) regarding the fattening system
2. PROJECT LOCATION
Gurage Zone is one of the zones found in Southern Nations Nationalities and Peoples Regional
State (SNNPRS) located between 7.80 - 8.50 North latitude and 37.50C - 38.70 East longitude of
the equator. Wolkite is the administrative city of the zone located 155 km away from Addis
Ababa to south west direction. Gurage zone covers a total area of 5932km2. It has 13 woredas
with a total population estimated about 1343246 (CSA, 2011). The zone comprises altitudes
ranging from 1,001 to 3,500 meters above sea level (m.a.s.l). It is classified into three agroclimatic zones: Dega (high altitude) covers 28.3% of the area and ranges between 2,500-3662
m.a.s.l, Woinadega (mid-altitude) at 1,500-2,500 m.a.s.l, encompasses about 64.9% of the area,
and Kolla (lowland) at 1,000-1,500 m.a.s.l covers 6.8% of the area. The mean annual
temperature of the zone ranges between 13-300c and the mean annual rain fall ranges 6001600mm. The rainfall pattern in the Gurage Zone is bimodal in which 80% of rain falls in the
Kremt period of June to August whereas 20% in the Belg period of February to May. According
to the land utilization data of the region 298,369 ha cultivated land, 67,678ha forest, bushes and
shrub covered land, 70,249.31ha grazing land, and 14,234 ha of land is covered by others
(GZADD, 2011)
2.1. Agro ecology: Guraghe zone is the most suitable places/area for cattle fattening
2.2. Cattle breed: Even though the cattle breeds are not well characterized in the Gurage area
the total cattle populations are 161,612 heads. This will feed to the project (cattle fattening).
2.3. Feed sources
The zone is conducive for development of different forages. Therefore, green feed availability is
found and somewhat not far from Addis Ababa which indicates that there is the possibilities of
transporting agro-industrial by-products to the project area.
6
3. CATTLE FATTENING MANAGEMENT
3.1. Feeding practice
Feed animals daily with concentrates one to two kilograms per day during fattening

period.
Give clean water without limit ad libitum. Provide ordinary table salt about 30-50 grams

per head per day.
Give animals, fresh, palatable feed and clean water at all times. Reduction of intake by

five percent will reduce weight gain by 10 %. Do not overstock feeds in the feed bunk
since the bottom portion will develop heat and make the feed stale
Digestion will be more efficient if roughage is eaten separately from concentrates.

Roughage conception tends to stimulate saliva secretion up to as much as 80-120 liter per
day.
Providing 30.5-36 centimeter bunk space per head will allow cattle to eat slowly. This

will help increase the rumen’s efficiency thereby digestion.
Schedule manure removal. If allowed to remain with animals, deep, wet manure will

reduce both feed intake and weight gain.
3.2. Deworming and spraying

Have fecal examination conducted to determine proper drugs to deworm.

Spray animals to control external parasites such as ticks, lice and flies.
3.3. Disease prevention

Never buy sick cattle. Make sure the animals are not stressed. Provide a good sanitation.

Proper nutrition helps ensure the health of cattle and increase their resistance to disease.

Don’t mix newly arrived animals with cattle already on feed.

Be apart for signs of illness. Isolate sick animals right away
3.4. Housing
 Proper housing is important in successful cattle fattening operation.
 Adequately protect animals against the adverse effect of weather.
 Building height ranges from 2 to 2.5 meters.
 Each animal can be allocated with 1.7 to 4.5 sq. meters.
7
4) EXPECTED OUTPUT
The project will have the following outputs:For the community: - This study will introduce food production in the form of meat to the
farmers and incomes to the community.
Promoting awareness: - This project will create awared society on different aspects of beef
managements (selecting best breed, housing, feeding practices, disease prevention and marketing
of live animal and by products). .
Poverty alleviation and livelihood improvement: - It will contribute to achieving food security
and poverty alleviation through better farming system.
Researchers: The data generated and recommendations made will be utilized at baseline
information by interested researchers in the areas of fish breeding, fish nutrition and fish
production etc.
Students: students will have a good knowledge in several courses as a practical and research
works.
5) Benefits and Beneficiaries
The implementation of this project will be benefiting the students, cooperative, surrounding
community (farmers), and small scale beef producer of the area. The major benefits of the
project will be for the community such as; creating job opportunities for the jobless peoples by
organizing them. It is also evident that the surrounding community will get training (knowledge)
from it.
4. FINANCIAL ANALYSIS
4.1. Estimation and Assumptions made
4.1.1. Cost Estimation
The total fixed and operational costs of the project are summarized in the following Table. The
costs are presented by sub headings that reflect the major components of the project. Breakdown
of the expenditure by items are given for each component. The estimated total cost of the project
for the first year is about 1,958,803 Birr.
Table:1 Total fixed and operational costs of the project
Capital Investment
GOs
NGOs
8
Total
A. Fixed capital
- Farm equipment &tools
- Construction
Sub total
B. Working capital
- Direct Operation cost
- Other operation cost
Sub total
Total
Contingency (10%)
Grand total
3320
114,400
117,720
1541710
121,300
1,663,010
1,780,730
178,073.0
1,958,803
Ratio of source of capital
4.1.2. Capital Investment
The total initial capital investment of the project is 1,958,803 Birr which is to be financed by the
Wolkite University from community service budget. The university will finance the project only
for the first two project years, and after two years the project are sufficient enough to continue by
the profit that came from the project. And also the costs financed by the university should be
returned back for the university after two years. Before the project will begin, there should be
contractual agreement between the university and the cooperated persons to return the expenses
that used for the project after two years and all of the expenses should be returned within ten
years of the project depend up on the agreement. The capital investment is to be used for the
purchase of agricultural machine, farm tools and building construction.
4.1.3. Replacement of Capital Items
The following assumptions have been made regarding replacement of fixed capital cost.
Table: 2 Assumptions of replacement of fixed capital cost
Capital Item
Building construction
Farm equipment and totals
Total Annual depreciation
Replacement
Year
10
10
Rate
of
Annual
Depreciation Depreciation
10%
11,440
10%
332
11,772
9
5.1.4. Operational cost
5.1.4.1. Direct operation cost
The direct production cost is determined on the basis of machinery and labour operation and
material requirements.
1/ Labour Operation
This project is assumed to be carried out by the cooperated persons to whom this project used
for. Because of this there is no labour cost taken in this project.
2/ Material requirements
Daily feed intake and water consumption of the animals were estimated according to national
research council (NRC). Other operation costs are also included under this category.
5.2. Assumptions
The following assumptions are made in the project analysis.
A/ Contingency is calculated at 10% for capital investment and operational cost
B/ A Staff clothing is assumed at birr 200 per person every year.
C/ Repair and maintenance on investment items are assumed to be 1.5% of original value.
D) Peridium rate of Birr 171 per head for 100 days per annum is assumed.
5.3. Implementation Schedule
Implementation of the project is scheduled to take place as soon as the project is approved by
Wolkite University and the budget will be released.
5.4. Revenue
The revenue is obtained through selling fattened stock. The current market price is taken in
calculating revenue from the project. Any increase in expenses is assumed to be compensated by
proportional increase in sales revenue.
Annex A: Financial Analysis of the fattening Project
Table: 3 Fixed Cost of the Project (Birr)
Sr. No
Description
1 Animal Shade (27m x 10.2) = 275.4m2
2 Hay Store (5m x10m) = 50m2
3 Feed Store (5m x 6m)=30m2
10
Unit
Qty
Number
’’
’’
1
1
Unit
price
37,500
20,000
15,000
Total
cost
37,500
20,000
15,000
4
5
6
7
8
9
Feeding trough
Water trough(1m x 2m) = 2m2
Isolation pen (7m x 5m) = 35m2
Guard House (3m x3m) = 9m2
Fence Establishment
Establishment of Silage pit
Subtotal
Equipments
1
Knapsack
2
Bucket
3
Spade
4
Rake
’’
’’
’’
’’
’’
’’
1
1
1
1
1
1
5,000
5,000
5,000
1,500
20,000
5,400
5,000
5,000
5,000
1,500
20,000
5,400
114,400
Number
Number
Number
Number
1
5
4
3
600.00
30.00
50.00
30.00
600.00
150.00
200.00
90.00
5
6
7
Watering Tube
Fire extinguisher
Thermometer
Meter
Number
Number
100
1
2
5.00
300.00
100.00
500.00
300.00
200.00
8
Heart girth meter
Number
2
100.00
200.00
9
10
11
Vaccination string
Different record books
Sickles
Subtotal
Grand total
Number
Number
Number
2
4
12
300.00
30.00
30.00
600.00
120.00
360.00
3320
117,720
Table: 4. Other Operation Costs required for fattening farm (Financial price)
Sr.
No
1
2
3
4
5
6
7
8
9
Description
Unit
Medication Fee
Fuel & Transportation Cost
Electricity
Perdium
Stationary
Uniform & clothing
Communication
Repairing and maintenance
Document preparation and Consultant fee
Quantity
Unit
Price
Total cost per
Annum
1000
52500
1200
17,100
5000
1000
1000
2500
5.1. Project document preparation
15,000
5.2. Production supervisor
15,000
5.3. Health consultant
Subtotal
10,000
121,300
Table: 5. Cost of Animal and Animal feed (Birr)
11
Description
Purchase of steers
Animal feed
Total
Number of
Animals/steers/
Kg of
feed/day
Price/kg
55
Price/animal
No. of
days
Total
8000
55
4.33
300
3
440,000
1320000
214335
214335
1,534,335
Table 6: Training Expense
No
Descriptions
For three
batch
Number of Persons
Number
of Perdium
days
rate/day
Total
1
Trainer
3
5
171
2565
2
Facilitator
2
5
171
1710
3
Trainee
5
5
124
3100
Total
7375
12
Annex; Breakdown of working capital for projection year
Table:7. Breakdown of working capital
Description
Direct production
Feed Purch.
Medication fee
Purchasing cost of steers
Preparation of document
& consultant
Perdium
Electricity
Repair & maintenance
Stationary
Uniform & clothing
Communication
Fuel and transportation
Grand total
1
2
3
4
Project years
5
6
7
8
9
10
214335
1000
214335
1000
214335
1000
214335
1000
214335
1000
214335
1000
214335
1000
214335
1000
214335
1000
214335
1000
1320,000
40,000
1320000
25,000
1320000
25,000
1320000
25,000
1320000
25,000
1320000
25,000
1320000
25,000
1320000
25,000
1320000
25,000
1320000
25,000
17,100
17,100
17,100
17,100
17,100
17,100
17,100
17,100
17,100
17,100
1200
1200
1200
1200
1200
1200
1200
1200
1200
1200
2500
5000
1000
1000
52500
2500
5000
1000
1000
52500
2500
5000
1000
1000
52500
2500
5000
1000
1000
52500
2500
5000
1000
1000
52500
2500
5000
1000
1000
52500
2500
5000
1000
1000
52500
2500
5000
1000
1000
52500
2500
5000
1000
1000
52500
2500
5000
1000
1000
52500
1655635
1640635
1640635
1640635
1640635
1640635
1640635
1640635
1640635
1640635
13
Table: 8 Production and Revenue projection
Ye
ar
1
2
3
4
5
6
7
8
9
10
Expense
No. of Animals Unit
purchased
pric
e
55
55
55
55
55
55
55
55
55
55
8000
8000
8000
8000
8000
8000
8000
8000
8000
8000
Total
price
440,000
440,000
440,000
440,000
440,000
440,000
440,000
440,000
440,000
440,000
No. of
Animals
sold
55
55
55
55
55
55
55
55
55
55
Income
Unit
Total
price
price/batch
18000
18000
18000
18000
18000
18000
18000
18000
18000
18000
1
990000
990000
990000
990000
990000
990000
990000
990000
990000
990000
Total Revenue
Revenu
Revenu
e/batch
e/annu
m
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
550,000
1650000
1650000
1650000
1650000
1650000
1650000
1650000
1650000
1650000
1650000
Remark=one
annum
contains
three batch