1. Product Description: Oil crushers are used for extracting oil from oil seeds. These crushers are being used in parts of the Amhara Region where oil seeds are grown. For example, there are hundreds of oil crushers in West Gojam Zone which is an oil seeds growing area. Oil crushers, though not efficient in their extraction rate, are suitable for small scale operation and they can be installed in localities where there are local supplies of oil seeds.
2. Rationale: Next to Ormiya, the Amhara Region is the largest oil seeds producer in the country. Oil seeds are partly exported and partly used for domestic edible oil production. Edible oil and oil seeds are some of the exports of the Amhara Region to other parts of the country and to foreign markets. Most edible oil exports are produced by small scale operators using small oil crushers. Practically all small and large urban centers in the Amhara Region have a number of oil crushing units. But the oil crushers are either imported or bought in modified version from Addis Baba. Most parts and components of an oil crusher can be manufactured in the Region and there is no reason why whole units of oil crushers have to be imported from outside the Region.
3. Market Potential: Though not as numerous as grain mills, there are many (most likely in thousands) oil crushers in the Amhara Region. With increasing population, additional new oil crushers will be needed in the Region. In addition old oil crushers will be replaced by new crushers. The expansion of oil crushing operation and the need for replacing old crushing machines will create enough demand for establishing viable oil crushing fabrication/assembly plant in the Region.
4. Source of Raw Materials: Imports to be imported.
5. Production process & Technology: Initially the project will buy cast iron castings from suppliers. These then are machined at the unit’s workshop. Again for the first phase (3 to 5 years) gears, worms, agitator, side shaft, etc will be acquired from supplier. Hence the first phase of operation will be assembling parts and components of oil crushers. Gradually, as experience is gained parts will be fabricated and manufactured. Main machinery and equipment needed are lathe machine, shaping machine, heavy duty lathe, pillar drill, welding machine, hand drill, flexible shaft grinder, and some accessories.
6. Estimated Investment: For a plant that will assemble about 40 oil crushers per year, estimated investment will be,
Building 300m2 at or 1500/m2 = Br. 450,000
Plant & machinery = Br. 200,000
Working capital = Br. 100,000
= Br. 750,000
7. Benefits: experience in developing basic (machine-building) industries, savings in foreign exchange and regional financial.
8. Location: Bahir Dar, Combolcha