PROJECT PROPOSAL
MULLIS WHEAT SEEDS MULTIPLICATION PROJECT
PROPOSAL
Prepared for: MISOMA EGU MULTIPURPOSE COOPERATIVE
SOCIETY
Location: EASTERN HARARGHE, OROMIA REGION,
ETHIOPIA
JULY 2016/2024
EASTERN HARARGHE
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PROJECT PROPOSAL
TABLE OF CONTENTS
1. Executive Summary ..............................................................................................................4
2. Project Background ..............................................................................................................5
2.1. Purpose .............................................................................................................................6
2.2. Context ..............................................................................................................................6
2.3. Stakeholder Needs ..............................................................................................................6
2.4. Project Goals .....................................................................................................................6
2.5. Impact Statement ...............................................................................................................6
3. Statement of Need ....................................................................................................................6
4. Project Objectives ....................................................................................................................7
5. Project Scope ........................................................................................................................8
5.1. Inclusions ......................................................................................................................8
5.2. Exclusions .....................................................................................................................8
5.3. Deliverables ...................................................................................................................8
5.4. Project Overview ...........................................................................................................8
5.4.1. Mission...................................................................................................................9
5.4.2. Objectives ..............................................................................................................9
5.4.3. Goals ....................................................................................................................10
5.5. Project Management Systems .......................................................................................10
5.6. Budget Breakdown ......................................................................................................11
5.7. Human Resources Management ...................................................................................11
5.8. Material Resources Management .................................................................................12
5.9. Financial Resources Management ................................................................................12
5.10. Procurements ...........................................................................................................13
5.11. Statement of Profit and Loss (5-Year Forecast) .........................................................13
5.12. Balance Sheet (End of Year 5)...................................................................................14
5.13. Financial Ratios .......................................................................................................15
5.14. Forecast Summary of 5-Year Forecast ......................................................................15
6. Methodology .......................................................................................................................16
7. Budget ................................................................................................................................16
8. Team and Qualifications .....................................................................................................17
9. Risk Assessment .................................................................................................................17
9.1. Identification of Potential Risks and Challenges ............................................................17
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9.2. Strategies for Mitigating Identified Risks ......................................................................18
9.3. Risk Management Strategy ..........................................................................................19
9.4. Team Member Role and Responsibilities ......................................................................19
9.5. Project Timeline and Schedule .....................................................................................20
10. Project Timeline and Schedule .........................................................................................21
11. Benefits and Deliverables .................................................................................................21
11.1. Expected Benefits .....................................................................................................21
11.2. Deliverables .............................................................................................................21
12. Measurement and Evaluation ..........................................................................................21
13. Conclusion ......................................................................................................................22
14. Appendices and Supporting Materials..............................................................................22
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PROJECT PROPOSAL
1. Executive Summary
The Mullis Wheat Seeds Multiplication Project aims to address food insecurity and enhance
economic potential in Eastern Hararghe, Oromia Region, Ethiopia, through increased wheat
production. By focusing on seed multiplication, quality production, job creation, and
strengthening cooperative capacity, the project seeks to improve the livelihoods of local farmers
and foster sustainable agricultural practices. The initiative is expected to significantly contribute
to regional economic development and food security, ultimately enhancing the quality of life in
the area.
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2. Project Background
Background and History of Misoma Egu Multipurpose Cooperative Society: The Misoma Egu
Multipurpose Cooperative Society was established in 2000 EC in the Eastern Hararghe zone of
Cinaksan woreda, in Mulis Egu local kebele with 37 male and 1 female member, totaling 38
members. The cooperative began with an initial capital of 14,500 birr. Its primary objective was
to collectively address the economic and social challenges faced by local communities by
combining their knowledge and resources. Currently, the cooperative engages in the following
activities:
1. Producing and supplying wheat seeds: The cooperative provides wheat seeds to its members
and surrounding communities.
2. Supplying agricultural inputs: The cooperative distributes fertilizers and improved seeds to
farmers.
3. Providing consumer goods: The cooperative offers consumer goods to its members and the
local community.
The cooperative has grown significantly, now boasting 101 members and a capital of 9 million
birr. Due to the increasing demand for wheat seeds in the area and a shortage of land for seed
production, the cooperative has decided to prepare a project proposal seeking land and funding.
Management Structure
The cooperative's governance is structured as follows:
General Assembly: The General Assembly, comprising all members, is the highest governing
body of the organization that has adopted the cooperative's governing by-laws.
Board of Directors: The Board of Directors, consisting of seven members, oversees the overall
activities of the cooperative.
Controlling Committee: The Controlling Committee, composed of three members, is responsible
for controlling and safeguarding the cooperative's assets.
The duties and responsibilities of the Board of Directors and the Controlling Committee are
clearly outlined in the cooperative's bylaws. In response to the cooperative's growth and
expanding activities, the Board of Directors has decided to hire a competent manager to oversee
the organization and the proposed project.
Attribute Details
Project Name Mullis Wheat Seeds Multiplication Project
MisomaEgu Multipurpose Cooperative
Project Owner
Society
Location Eastern Hararghe, Oromia Region
Project Duration 2017 - 2021 (Ethiopian Calendar)
Total Project Cost 10,000,000.00 Birr
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PROJECT PROPOSAL
MisomaEgu Cooperative: 3,000,000.00 Birr
Funding Sources
Siinqee Bank: 7,000,000.00 Birr
2.1. Purpose
The project responds to the urgent need for increased wheat production to tackle food insecurity
and unlock economic potential in Eastern Hararghe, Oromia Region, Ethiopia.
2.2. Context
The Misoma Egu Multipurpose Cooperative Society supports local farmers and recognizes the
significant potential of wheat cultivation to enhance livelihoods and economic stability.
2.3. Stakeholder Needs
Key stakeholders, including farmers, local businesses, and government entities, require improved
agricultural practices, access to quality seeds, and support for sustainable economic growth.
2.4. Project Goals
● Achieve self-sufficiency in wheat production.
● Contribute to regional economic development.
● Implement environmentally friendly agricultural practices.
2.5. Impact Statement
The project is expected to benefit local farmers by increasing their income, improving food
security, and fostering sustainable agricultural practices, ultimately enhancing the overall quality
of life in the region.
3. Statement of Need
The Mullis Wheat Seeds Multiplication Project addresses several critical challenges hindering
agricultural productivity and economic growth in Eastern Hararghe, Oromia Region, Ethiopia:
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PROJECT PROPOSAL
● Low Wheat Production Levels: Current wheat production is insufficient to meet local
demand, contributing to food insecurity. Many farmers lack access to modern agricultural
techniques and resources, leading to suboptimal yields.
● Limited Access to High-Quality Seeds: Farmers face significant barriers in obtaining
quality seeds, which are essential for improving crop yields and resilience.
● Unemployment Among Youth: High unemployment rates, particularly among youth,
exacerbate economic challenges and contribute to social instability.
Evidence from local data highlights the urgent need for improved agricultural practices and job
creation. Reports indicate prevalent food insecurity, with many households struggling to access
sufficient and nutritious food. Additionally, economic conditions reveal a pressing demand for
initiatives that can enhance agricultural productivity and create employment opportunities in the
region.
By addressing these challenges, the Mullis Wheat Seeds Multiplication Project aims to foster
sustainable agricultural practices, improve food security, and enhance economic prospects for
local farmers and the community at large.
4. Project Objectives
The Mullis Wheat Seeds Multiplication Project has the following key objectives:
1. Seed Multiplication: Multiply high-quality wheat seeds across all woredas in Eastern
Hararghe to ensure a sufficient supply for local farmers, enhancing overall production
capacity.
2. Quality Wheat Production: Enable the region to produce superior-quality wheat by
implementing best agricultural practices, including the use of improved seed varieties and
sustainable farming techniques.
3. Job Creation: Create job opportunities for youth within the zone by involving them in
seed production, training programs, and agricultural activities, thereby addressing
unemployment.
4. Compliance with Government Policies: Adhere to government policies on wheat
export, facilitating legal and efficient market access for locally produced wheat.
5. Strengthening Cooperative Capacity: Strengthen the cooperative's capacity for
exporting wheat nationally and internationally by providing training, resources, and
support for market engagement.
These objectives aim to enhance wheat production, improve food security, and create economic
opportunities in Eastern Hararghe, Oromia Region, Ethiopia.
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PROJECT PROPOSAL
5. Project Scope
The scope of the Mullis Wheat Seeds Multiplication Project focuses on enhancing wheat
production and marketing in Eastern Hararghe, Oromia Region, Ethiopia. The project
encompasses the following key components:
5.1. Inclusions
● Seed Multiplication: Ensure a sufficient supply of high-quality wheat seeds for local
farmers.
● Training Programs for Farmers: Educate farmers on modern agricultural practices,
including sustainable farming techniques and disease management.
● Establishment of Irrigation Systems: Implement irrigation systems to ensure consistent
water supply for wheat crops.
5.2. Exclusions
● Activities unrelated to wheat production and marketing, such as the cultivation of other
crops or livestock farming, are excluded from the project scope.
5.3. Deliverables
● Seed Distribution: Distribute high-quality wheat seeds to participating farmers.
● Training Sessions: Conduct regular training sessions and workshops for farmers.
● Infrastructure Establishment: Set up storage facilities and irrigation systems.
By focusing on these components, the project aims to create a robust and efficient wheat value
chain in Eastern Hararghe.
5.4. Project Overview
Attribute Details
Project Name Mullis Wheat Seeds Multiplication Project
Misoma Egu Multipurpose Cooperative
Project Owner
Society
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PROJECT PROPOSAL
Location Eastern Hararghe, Oromia Region, Ethiopia
Project Duration 2017 - 2021 (Ethiopian Calendar)
Total Project Cost 10,000,000.00 Birr
Misoma Egu Cooperative: 3,000,000.00 Birr
Funding Sources
Siinqee Bank: 7,000,000.00 Birr
5.4.1. Mission
Mission Statement
To enhance wheat production, improve food security, and create economic opportunities in
Eastern Hararghe, Oromia Region.
5.4.2. Objectives
Objective Description
Multiply high-quality wheat seeds across all
Wheat Seed Multiplication
woredas in Eastern Hararghe.
Enable the region to produce superior-quality
Quality Wheat Production
wheat.
Create job opportunities for youth within the
Youth Employment
zone.
Adhere to government policies on wheat
Export Compliance
export.
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PROJECT PROPOSAL
Strengthen the cooperative's capacity for
Capacity Building exporting wheat nationally and
internationally.
5.4.3. Goals
Goal Description
Food Security Achieve self-sufficiency in wheat production.
Contribute to the economic development of
Economic Growth
Eastern Hararghe.
Implement environmentally friendly
Sustainable Practices
agricultural practices.
5.5. Project Management Systems
System Description
Utilize software for planning, execution, and
Project Management Software
monitoring of project activities.
Regular progress reports to stakeholders and
Reporting System
funding sources.
Establish KPIs to measure project success and
Evaluation Framework
impact.
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PROJECT PROPOSAL
5.6. Budget Breakdown
Category Amount (Birr)
Land Preparation 2,000,000.00
Seeds 1,500,000.00
Fertilizers 1,000,000.00
Equipment 2,500,000.00
Labor Costs 1,500,000.00
Operational Costs 1,000,000.00
Miscellaneous 500,000.00
Total 10,000,000.00
5.7. Human Resources Management
Role Responsibilities
Project Manager Oversee project execution and management.
Provide technical support and training to
Agronomists
farmers.
Field Workers Implement seed multiplication activities.
Administrative Staff Manage project documentation and finances.
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5.8. Material Resources Management
Material Description
Seeds High-quality wheat seeds for multiplication.
Fertilizers Nutrient-rich fertilizers to enhance growth.
Tractors, seeders, and necessary tools for
Equipment
farming.
Infrastructure Storage facilities and irrigation systems.
5.9. Financial Resources Management
Aspect Description
Combination of cooperative funds and bank
Funding Sources
loans.
Regular audits and financial reviews to ensure
Financial Monitoring
accountability.
Monthly financial reports to track
Reporting
expenditures and revenues.
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PROJECT PROPOSAL
5.10. Procurements
Item Description Procurement Method
Direct purchase from
Seeds High-quality wheat seeds
certified suppliers
Fertilizers Nutrient-rich fertilizers Bulk purchase agreements
Equipment Tractors and tools Competitive bidding process
Contracting local
Infrastructure Storage and irrigation
construction firms
5.11. Statement of Profit and Loss (5-Year Forecast)
Loan
Total Revenue Operating Repayment Net Profit
Year (Birr) Costs (Birr) (Birr) (Loss) (Birr)
1 131,250,000.00 100,000,000.00 1,000,000.00 30,250,000.00
2 138,562,500.00 105,000,000.00 1,000,000.00 32,562,500.00
3 144,703,125.00 110,000,000.00 1,000,000.00 33,703,125.00
4 151,938,250.00 115,000,000.00 1,000,000.00 35,938,250.00
5 159,183,125.00 120,000,000.00 1,000,000.00 38,183,125.00
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5.12. Balance Sheet (End of Year 5)
Assets Amount (Birr)
Cash 38,183,125.00
Inventory (Wheat) 20,000,000.00
Land and Equipment 5,000,000.00
Total Assets 63,183,125.00
Liabilities Amount (Birr)
Loan Payable 967,222.08
Other Liabilities 5,000,000.00
Total Liabilities 5,967,222.08
Equity Amount (Birr)
Retained Earnings 57,215,902.92
Total Equity 57,215,902.92
Financial Statement Summary
Total Revenue (5 Years): 725,637,000.00 Birr
Total Operating Costs (5 Years): 550,000,000.00 Birr
Total Loan Repayment (5 Years): 5,000,000.00 Birr
Total Net Profit (5 Years): 170,637,000.00 Birr
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5.13. Financial Ratios
Ratio Formula Value
Current Assets / Current 63,183,125.00 / 5,967,222.08
Current Ratio
Liabilities = 10.59
Total Liabilities / Total 5,967,222.08 / 57,215,902.92
Debt to Equity Ratio
Equity = 0.10
170,637,000.00 /
Return on Investment (ROI) Net Profit / Total Investment
10,000,000.00 = 17.06
170,637,000.00 /
Profit Margin Net Profit / Total Revenue 725,637,000.00 = 0.23 or
23%
5.14. Forecast Summary of 5-Year Forecast
Year Total Yield (quintals) Total Revenue (Birr)
1 10,500 131,250,000.00
2 11,025 138,562,500.00
3 11,576.25 144,703,125.00
4 12,155.06 151,938,250.00
5 12,762.81 159,183,125.00
This forecast provides a clear projection of the expected yield and revenue over five years,
considering a steady increase in
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PROJECT PROPOSAL
yield due to improved agricultural practices. Adjustments can be made based on actual
performance and market conditions.
6. Methodology
The methodology for the Mullis Wheat Seeds Multiplication Project comprises three key
components: Agricultural Best Practices, Training Programs, and Monitoring and Evaluation.
1. Agricultural Best Practices
○ Sustainable Farming Techniques: Implement practices such as crop rotation,
conservation tillage, integrated pest management (IPM), and organic fertilization.
2. Training Programs
○ Education for Farmers: Conduct workshops, field demonstrations, and provide
resource materials to equip farmers with modern agricultural knowledge.
3. Monitoring and Evaluation
○ Establishing Key Performance Indicators (KPIs): Develop KPIs to measure
project success, including baseline data collection, regular monitoring, impact
assessments, and feedback mechanisms. By employing this comprehensive
methodology, the project aims to enhance agricultural productivity and foster
sustainable economic development.
7. Budget
Budget Item Estimated Cost (Birr)
Total Estimated Cost 10,000,000.00
Land Preparation 2,000,000.00
Seeds 1,500,000.00
Fertilizers 1,000,000.00
Equipment 2,500,000.00
Labor Costs 1,500,000.00
Operational Costs 1,000,000.00
Miscellaneous 500,000.00
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8. Team and Qualifications
Team Member Role Responsibilities
Ensures timely delivery
Project Manager Oversees project execution
within scope and budget
Provide training and
Agronomists Technical support expertise in agricultural
practices
Carry out seed multiplication
Field Workers Implementation
and field management
Handle documentation and
Administrative Staff Project management
finances
9. Risk Assessment
9.1. Identification of Potential Risks and Challenges
Risk/Challenge Description
Unpredictable weather patterns affecting
Weather Variability
production.
Changes in market prices impacting
Market Fluctuations
profitability.
Outbreaks threatening yields and food
Disease and Pest Outbreaks
security.
Limited Access to Quality Seeds Barriers in obtaining essential seeds.
Insufficient funding jeopardizing
Financial Risks
implementation.
Delays in seed distribution affecting
Supply Chain Disruptions
timelines.
Inadequate training leading to poor adoption
Training and Capacity Gaps
of practices.
Regulatory Challenges Policy changes impacting production and
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PROJECT PROPOSAL
marketing.
9.2. Strategies for Mitigating Identified Risks
Risk Mitigation Strategy
Implement irrigation and select drought-
Weather Variability
resistant varieties.
Diversify markets and establish buyer
Market Fluctuations
contracts.
Promote disease-resistant varieties and IPM
Disease and Pest Outbreaks
practices.
Limited Access to Quality Seeds Strengthen partnerships with seed suppliers.
Maintain a contingency fund and strict
Financial Risks
financial monitoring.
Supply Chain Disruptions Develop relationships with multiple suppliers.
Conduct regular training sessions for farmers
Training and Capacity Gaps
and staff.
Engage with government stakeholders to
Regulatory Challenges
advocate for supportive policies.
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PROJECT PROPOSAL
9.3. Risk Management Strategy
Risk Impact Mitigation Strategy
Implement irrigation systems
Weather Variability High and drought-resistant seed
varieties.
Diversify markets and
Market Fluctuations Medium establish contracts with
buyers.
Maintain a contingency fund
Financial Risks High and monitor cash flow
closely.
Establish relationships with
Supply Chain Disruptions Medium multiple suppliers for critical
materials.
9.4. Team Member Role and Responsibilities
Team Member Role Responsibilities
Ensures the project is
Oversees project execution
Project Manager delivered on time, within
and management.
scope, and budget.
Offer expertise in agricultural
Provide technical support and
Agronomists practices and conduct
training to farmers.
training sessions.
Carry out the practical
Implement seed
Field Workers aspects of seed multiplication
multiplication activities.
and field management.
Handle all administrative
Manage project
Administrative Staff tasks, including budgeting
documentation and finances.
and reporting.
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PROJECT PROPOSAL
Each team member possesses relevant qualifications and experience in agricultural development
and project management, ensuring effective project implementation and success.
9.5. Project Timeline and Schedule
The following table outlines the key milestones and their corresponding timelines for the Mullis
Wheat Seeds Multiplication Project:
Milestone Description Timeline
Official start of the project,
including stakeholder
1. Project Initiation Month 1
meetings and project
planning.
Implementation of seed
2. Seed Multiplication multiplication activities
Month 2 to Month 6
Phases across all woredas, including
planting and maintenance.
Conduct training programs
for farmers on best
3. Training Sessions Month 3 to Month 5
agricultural practices and
seed management.
Evaluate the outcomes of the
seed multiplication, including
4. Harvest Assessments Month 7
yield measurements and
quality assessments.
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PROJECT PROPOSAL
10. Project Timeline and Schedule
Milestone Description Timeline
Official start, stakeholder
Project Initiation Month 1
meetings, project planning.
Implementation of seed
Seed Multiplication Phases Month 2-6
multiplication activities.
Conduct training programs
Training Sessions Month 3-5
for farmers.
Evaluate outcomes of seed
Harvest Assessments Month 7
multiplication.
11. Benefits and Deliverables
11.1. Expected Benefits
● Increased Wheat Production and Quality: Enhanced yield and quality of wheat
through access to quality seeds and best practices.
● Job Creation for Local Youth: Job opportunities created through involvement in project
activities.
● Enhanced Food Security: Improved food security through increased local wheat
production.
11.2. Deliverables
● High-Quality Wheat Seeds: Distribution to farmers across all woredas.
● Trained Farmers: Comprehensive training sessions on modern agricultural practices.
● Improved Agricultural Practices: Establishment of best practices in wheat cultivation.
12. Measurement and Evaluation
The success of the project will be assessed through a comprehensive measurement and
evaluation framework:
1. Regular Monitoring of Yield and Production Rates
○ Continuous data collection on wheat yield and production rates, with monthly
assessments.
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PROJECT PROPOSAL
2. Feedback from Participants in Training Programs
○ Surveys and interviews to evaluate training effectiveness, with feedback collected
immediately after training and post-harvest.
3. Financial Assessments
○ Quarterly financial reviews to monitor project sustainability and assess income
generated by farmers.
By implementing this framework, the project aims to ensure accountability and assess impact.
13. Conclusion
The Mullis Wheat Seeds Multiplication Project presents a significant opportunity to enhance
agricultural productivity and economic stability in Eastern Hararghe, Oromia Region, Ethiopia.
By addressing critical challenges such as low wheat production levels and limited access to
quality seeds, the project aims to improve food security and create sustainable economic
opportunities for local farmers, particularly youth. Stakeholders are encouraged to support this
initiative, as their involvement is crucial for its success and long-term impact on the community.
14. Appendices and Supporting Materials
Additional documents supporting the proposal will include:
● Relevant Charts and Graphs: Visual representations illustrating projected growth in
wheat production and financial forecasts.
● Case Studies: Documentation of similar successful projects highlighting best practices
and lessons learned.
These appendices will provide valuable insights and data to reinforce the project's objectives and
expected outcomes, ensuring stakeholders have comprehensive information to support their
engagement and decision-making processes.
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