Business Plan: Lemi NutriFeed Solutions
1. Executive Summary
Lemi NutriFeed Solutions is a purpose-driven animal feed production company located in
Lemi Kura Sub-City, Addis Ababa. Our mission is to empower local farmers and livestock
producers by delivering affordable, high-quality, and nutritionally balanced animal feed. We
aim to address the growing demand for consistent and safe feed as Ethiopia’s livestock
sector expands.
Our initial investment of 1.5 million Birr will be used to establish a modest production
facility, purchase raw materials and machinery, and support early-stage operations. Within
three years, we anticipate reaching profitability and supporting over 100 farms in and
around Addis Ababa.
2. Company Description
Lemi NutriFeed Solutions will be registered as a Private Limited Company (PLC) and owned
by a group of partners with backgrounds in agriculture, business, and nutrition. We are
strategically located in Lemi Kura due to its access to both urban markets and rural supply
chains.
Our long-term goal is to become a leading regional brand that supports food security and
livestock productivity through innovative and sustainable feed solutions.
3. Market Analysis
Industry Overview:
Ethiopia’s livestock population is among the largest in Africa. However, the productivity of
these animals is often limited by poor-quality feed and traditional feeding practices.
Target Market:
- Small to medium-scale livestock farmers
- Urban and peri-urban dairy farms
- Poultry farms in Addis Ababa and surrounding towns
Customer Needs:
- Reliable and affordable feed supply
- Balanced nutritional content to improve animal health
- Professional advice on animal feeding and health
Competitor Analysis:
While a few large players exist, many farmers still rely on informal, inconsistent sources of
feed. Our competitive edge lies in our localized approach, community engagement, and
consistent product quality.
4. Products and Services
We will produce and distribute:
- Cattle Feed (for dairy and beef cattle)
- Poultry Feed (for layers and broilers)
- Sheep and Goat Pellets
- Feed Supplements and Additives
We also plan to offer free feeding consultations to our customers, empowering them with
the knowledge to maximize productivity.
All our products will be based on local ingredients such as maize, wheat bran, cottonseed
cake, and molasses, ensuring affordability and sustainability.
5. Marketing and Sales Strategy
Brand Positioning:
“Feeding Growth, Nourishing Ethiopia” – our brand speaks to transformation and local
empowerment.
Marketing Channels:
- Social media (Facebook, Telegram) campaigns targeting farmers
- Partnerships with agricultural offices and cooperatives
- Flyers and product demos in local markets
Sales Strategy:
- Direct sales through our outlet at Lemi Kura
- Mobile sales team reaching nearby rural areas
- Discounts for bulk purchases and loyal customers
6. Operational Plan
Location and Facilities:
Our facility will be located in an accessible area of Lemi Kura Sub-City with enough space for
raw material storage, processing, packaging, and loading.
Production Process:
1. Raw material sourcing from local suppliers
2. Grinding, mixing, and pelletizing
3. Quality control and packaging
4. Distribution
Key Equipment:
- Feed grinder and mixer
- Pelletizer
- Weighing and packaging machines
Suppliers:
We will work with smallholder farmers and cooperatives to procure maize, wheat bran, and
other inputs.
7. Organizational Structure and Management
Management Team:
- General Manager – Yigzaw Ayele Tegegne (MBA, Community Development background)
- Production Manager – Animal nutritionist
- Marketing and Sales Manager
- Finance and Admin Officer
We will start with a team of 10 employees including machine operators, loaders, and sales
agents.
8. Financial Plan
Startup Capital Requirement: 1.5 million Birr
Estimated Allocation:
- Equipment & Machines: 600,000 Birr
- Facility Setup: 250,000 Birr
- Initial Raw Materials: 200,000 Birr
- Staff Salaries (3 months): 150,000 Birr
- Marketing and Legal: 100,000 Birr
- Working Capital: 200,000 Birr
Revenue Projections (Year 1 – Year 3):
Year 1: Revenue – 1.8M, Expenses – 1.5M, Profit – 300K
Year 2: Revenue – 2.5M, Expenses – 1.9M, Profit – 600K
Year 3: Revenue – 3.6M, Expenses – 2.4M, Profit – 1.2M
Break-Even Analysis:
We expect to break even by the 15th month of operation, with cash flow turning positive by
the end of Year 1.
The chart below presents the projected revenue and profit for the next three years.
Visual Representation
9. Risk Analysis
Key Risks and Mitigation:
- Fluctuating raw material prices: Build long-term supply contracts with local farmers
- Machinery breakdowns: Regular maintenance and local technician network
- Low market awareness: Aggressive community-based marketing and demos
- Regulatory delays: Early engagement with relevant government bodies
10. Appendices
- Owner and team resumes
- Sample feed formulations
- Machinery quotations
- Photos of proposed site layout
- Letters of intent from local farmers and cooperatives
