Ethiopia is one of the best endowed countriesin the world with the number of dairy cattle it has. Dairy farming is one of the agricultural sub sectors with a relatively high potential to be transformed to industrialization through value addition to the dairy products by means of dairy processing. Dairy farming is an agro-based project, which comprises of two aspects: dairy production and dairy technology. Dairy production is an all- inclusive activity, related to dairy animal care, reproduction, feeding, and management and is defined as all those aspects and activities relating to rising of dairy animals during their various phases of life to get wholesome milk. Dairy technology relates to all aspects of processing milk to convert it into various products.

Commercial dairy farmer success depends on land, labor and animals as the major resources. The thrustin modern dairyfarming is on the increased use of capital and management.Successful dairy farming harnesses all available resources into productive and profitableunit.

We want to produces specific dairy products that are pasteurizing milk and yogurt processing. The demand for these dairy products is not yet met and their price is increasing across time. Once the project is implemented in 2022 the company will generate a net profit more than ETB 1.3 million in the first year after the execution of the project. This amount will reach around ETB 6.1 million in the seventh year of the project (2029). Hence processing these dairy products will make the company profitable and it will create a considerable amount of job opportunity to the community. The corporate tax payment to be made by the company will also increase in a way to contribute to the developmental intervention of the regional government. And it enables to help the economy through import substitution.

To this end, the company would like to get financing from bank source. The financial support is deemed to be secured from Bank through long term loan.The estimated project total cost isBirr 41.5 million. Out of which birr 30 million which is 70% of the total investment will be financeby financial institution (bank). The remaining amount, ETB around birr 12 million is the owners’ equity contribution.