User:Ameha
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== Objective of the project
The objective of the project is to produce and supply soybeans both to the consumers and to the processing companies. The project is making its other objective to help the nearby and surrounding farmers in activities related with extension matters and in keeping environment stable, maintaining the present ecological state and upgrading some unhealthy situations.
Significance of the project
This project is designed to contribute a part in the supply of milk to the increasing demand of milk. Besides this, it also gives opportunity in employment on a contract and on a permanent basis. It is aiming to increases its employment rate as the project grows. The other significance is that working on the business alone is not the objective here. It also aims to enhance the participation of farmers on extension activities by giving them new technologies and raising their awareness.
Scope of the Project
Area of the Project The project is supposedly located in the area to the west of Ethiopia, bordering Sudan, in the region Benishangul Gumuz. It is an area that is uninhabited and currently investors are starting to populate the area with investments in Soybean and Sesame plantations.
Introduction Today, agriculture has contributed to human civilization by improving nutrition and living standards. It has ensured the production and distribution of agricultural, fishery and forestry products and enough food to feed everyone on this planet. Seventy percent of the world’s hungry live in rural areas. That is where it is most critical to provide food and employment. The seed planted by a farmer leads to a flourishing agribusinesses that pay taxes, and help build rural schools and roads. Agricultural development is the first step of a long-term sustainable economic growth. Everyone gains from investment in agriculture. The challenge of increasing investment in agriculture is especially great in Africa. Governments in that region have recognized the urgency of committing their own resources to agriculture. In the “Maputo Declaration” in 2003, African Heads of State committed their governments to allocating 10 percent of their national budgets to agriculture and rural development within five years, thus doubling the present level of resources. Recently there has been a significant revival in lending for agriculture. Debt forgiveness programs, strengthened by the G-8 decision in 2005, have begun to release national resources for investment in the sector. But much still remains to be done and innovative actions are welcome. While increased development assistance, public investment and debt relief are key elements, equal importance should be given to private sector investment. Commercial farmers, traders, input suppliers, agro-processors and transnational agribusinesses all contribute to a global system of investment that can help rural people reap profits from agricultural production, marketing and trade. But, importantly, let us not forget that small farmers themselves are the biggest investors in agriculture. Increasing the volume of public investment in agriculture is of absolute necessity and it is crucial to make such assistance more effective. One major mechanism is the Global Donor Platform for Rural Development, a consortium of 26 donor development agencies, which FAO co-chairs with Germany’s Federal Ministry for Economic Cooperation and Development. The platform seeks to improve donor aid effectiveness and focus action on achieving the Millennium Development Goals. “Promoting profitable partnerships” is the new model for cooperation between the public and private sectors. This means finding new ways of bringing together producers – small farmers and cooperatives – with agribusiness and governments to create profitable ventures. It places primary responsibility on governments to create stable socio-political conditions, establish legal frameworks for access to land and water, enforce grades and standards, foster a better climate for private investment and provide essential rural infrastructure. With this in mind, highlighting the role of investment in Agriculture should be supported to improve rural livelihoods by reversing the decline of public investment in agriculture over the last two decades. Since 1964, FAO has been a key player in the UN system in the mobilization of international and domestic financing for agriculture in favour of developing countries and countries in transition. Through its cooperation with financing agencies, FAO has helped 165 member countries to obtain funding for almost 1 600 agricultural and rural investment programs and projects. That represents funding commitments of over US$80 billion! Therefore, the ASNAKU General Agriculture Plc is participating in investing in agriculture with an initiation to develop the economy of the country and improve the livelihood of the Ethiopian people. The investment will be starting by producing Soybean crops. The vision of the company would be achieved by meeting the demands and lowering the life expensiveness, putting more quantity and quality into export products and raw materials and also by introducing processing into the business thereby relieving the cost from importing processed products. Because as it can be seen later in the literature review that Ethiopia pays about 10 million dollars for importing soybean products only from the US. ==
