Business Plan for Addis Cereal Trading
PLC
Business Plan for Addis Cereal Trading PLC
1. Executive Summary
Business Name: Addis Cereal Trading PLC
Location: Addis Ababa, Ethiopia
Business Type: Cereal Trading (wholesale and retail)
Vision: To become a leading, trusted supplier of high-quality cereals across Ethiopia and
neighboring markets.
Mission: To ensure reliable sourcing and supply of cereal products while supporting
farmers and ensuring food security.
Objectives:
- Achieve revenue of ETB 5 million in the first year.
- Build partnerships with 500 farmers/cooperatives by Year 2.
- Establish three storage facilities in major grain-producing areas by Year 3.
2. Business Description
Addis Cereal Trading PLC will engage in the procurement, storage, grading, and distribution
of cereals such as wheat, maize, barley, teff, and sorghum. We will work directly with
farmers and cooperatives, ensuring a fair price and consistent quality, while targeting both
local markets and export opportunities.
3. Market Analysis
Industry Overview: Ethiopia's agricultural sector contributes over 30% to GDP, with cereals
being the staple food and a significant part of local trade.
Target Market:
- Urban wholesalers and retailers
- Government procurement agencies
- Institutional buyers (schools, hotels, NGOs)
- Exporters of raw agricultural commodities
Market Trends:
- Increasing demand due to urban population growth
- Government support for agricultural commercialization
- Rising interest in agro-processing and exports
Competitive Analysis:
- Competitors include established traders, cooperatives, and unions
- Our competitive edge includes direct farmer sourcing, transparent pricing, and quality
control
4. Organization and Management
Ownership: Privately held by founder(s)
Management Team:
- General Manager: Oversees strategy and operations
- Procurement Officer: Handles sourcing and farmer relations
- Sales and Marketing Officer: Manages distribution and customer relations
- Finance Officer: Maintains accounts and financial reports
- Warehouse Supervisor: Oversees inventory and logistics
5. Products and Services
- Unprocessed Grains: Teff, Maize, Wheat, Barley, Sorghum
- Cleaned & Graded Cereals: For higher market value
- Custom Packaging: For institutional and retail customers
- Delivery Services: For large-volume clients
6. Marketing Strategy
Branding: Promote Addis Cereal Trading as a reliable and ethical brand
Pricing: Competitive pricing with flexible payment terms for bulk buyers
Promotion:
- Participation in trade fairs
- Use of radio and community meetings in rural sourcing areas
- Online marketing for urban B2B customers
Distribution Channels:
- Direct sales via agents and mobile teams
- Partnerships with wholesalers and cooperatives
7. Operational Plan
Procurement:
- Seasonal purchase from smallholder farmers and unions
- Use of mobile collection teams
Storage:
- Secure, rented warehouses with ventilation
- Regular fumigation and quality checks
Transportation:
- Contracting local logistics providers
Sales Operations:
- Weekly delivery schedules
- Use of CRM software for order tracking
8. Financial Plan (Projections in ETB)
| Item | Year 1 | Year 2 | Year 3 |
|-----------------------|-------------|-------------|-------------|
| Revenue | 5,000,000 | 6,500,000 | 8,000,000 |
| Cost of Goods Sold | 3,000,000 | 3,900,000 | 4,800,000 |
| Gross Profit | 2,000,000 | 2,600,000 | 3,200,000 |
| Operating Expenses | 800,000 | 1,000,000 | 1,200,000 |
| Net Profit | 1,200,000 | 1,600,000 | 2,000,000 |
Break-even Point: Estimated in month 11 of Year 1
Funding Requirements: ETB 2 million
- Inventory: 1.2 million
- Equipment & Storage: 500,000
- Marketing & Working Capital: 300,000
9. Risk Analysis
- Price Fluctuations: Mitigated through contracts and forward agreements
- Supply Chain Disruptions: Managed through diverse sourcing and buffer stock
- Weather Dependency: Insurance and crop diversification
10. Appendix
- Founders' CVs
- Draft supplier agreements
- Preliminary customer interest letters
- Financial statements and projections
