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Product Description:
Coffee beans are sold to the consumer either as “raw” beans or roasted, ground (made to powder) and packed. Usually roasted coffee is sold to hotels, coffee shops, restaurants, pastries, etc. and “raw” coffee beans are sold to households where the roasting aspect of coffee making is as important as the coffee drinking itself. This project idea is to establish coffee roasting … enterprises in the Amhara region where roasting of coffee on commercial scale is virtually unknown.
Market Potential:
The main consumers of roasted coffee are restaurants, hotels, coffee and tea shops, etc. While there are hundred of coffee roasting, grinding and packing enterprises in Addis Ababa and in areas south of Addis Ababa, there are no such enterprises in the Amhara region. Like the “raw” coffee, the Amhara Region also imports roasted coffee from other regions of the country.
With 2.1 million people living in the urban areas of the Region, the consumption of processed coffee (roasted and ground) is substantial. It is understandable why the Region imports the “green” coffee beans, but it does not give economic sense to import the processed coffee while it is possible to do the processing in the region. The present consumption of processed coffee in the urban centers of the Amhara Region is estimated to be about 4015 tons, and this consumption level will grow with further urbanization and increased population.
SUPPLY OF MILLED COFFEE (TONNES)
Sources: Customs Authority, External Trade Statistics, 2000- 2006.
CSA, Statistical Abstract, various years.
Source of Raw Material:
The principal raw materials are coffee beans; and the beans will be imported from other parts of the country. Until the Region becomes self – sufficient in coffee production.
Process and Technology: Major processing stages include cleaning of the beans, grading, roasting grinding and packaging. Major machinery units will include cleaning machine, roasting, grinding and packing machines.
Estimated Investment: For a plant that will process about 25 quintals of coffee beans per day and 900 tons per year, the investment requirement will be
Building/ shade 300 m2 at Br 2500/m2……= 750,000
Machinery (Tools)………………………….=1,000,000
Working Capital …….……………………=300,000
Total……………………. 2,050,000
Benefits: More value added, promotes self sufficiency, saves financial resources
Location: Debre Birhan, Combolcha, Bahir Dar, Debre Markos