Small Scale Oil Seeds Processing

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Project

Training of user groups in Tigray, © TAMPA

The Sustainable Land Management Program (GIZ SLMP) began in 2012 the promotion of small scale oil seeds processing in Tigray. The Tigray Agricultural Marketing Promotion Agency (TAMPA) started a collaboration with GIZ SLMP in 2013 for the promotion in Western, North Western and Central Zone of Tigray.

The target groups are oil seeds producing farmers organized in user groups. Actually, about 30 user groups (=300 households) were provided with one processing unit (manually operated oil expeller) for each group in the following 13 Woredas in Tigray:Raya Azebo, Enda Mehoni, Alaje, Kola Tembien, Tahtay Koraro, Tahtay Maichew, Medebay Zana, Laeley Adiabo, Kafta Humera, Wolkait, Tsegede, Alamata and Ofla.

The project enhances oil seed farmers to add value on their raw products. The final product is a healthy virgin oil from Noug (Niger Seed) or Suff (Safflower) which will improve nutrition of the farmer families and generate income.

The by-product is oil cake which serves as protein concentrate for animal feed.



Annual performance data

Annual performance data for 1 manually operated oil expeller (run as a business in team work):

  • Production capacity per day: 5 liter oil (5 hours daily expelling work)
  • Production capacity per year = 7,200 kg seeds processed = 1,800 kg edible oil + 5,400 kg oil cake
  • Net profit per year: 7,200 kg x ETB 4.28 = ETB 30,816 (see below: | quantified value chain design)



Financing

Investments & Depreciation
Description
 Purchase cost per unit
 Years of depreciation
 ETB/kg
 ETB/a
Oil mill
 2.200
 10
 0.030
 220
Workbench
 550
 10
 0.007
 55
Small material, balance
 1000
 2
 0.069
 500
Iron tools
 200
 10
 0.002
 20
Oil container with water top
 500
 5
 0.013
 100
Total (ETB)
 4450
0.121
 895


Credit costs / Opportunity costs

Microfinance 12.5 % / a = ETB 4,450 / 12.5 % interest = ETB 556,25

Calculation due to the annual seeds processing quantity (7,200 kg) = 0.07 / kg


Repairs, maintenance

(Oil mills, 10 % / year = ETB 220 or per kg = (220: 7,200 kg/year) = 0.03 / kg


Depreciation

Calculation due to the annual seeds processing quantity (7,200 kg) = 0.12 / kg





Value Chain

Oil Seeds Processing Value Chain




Further Information


Reference

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