The soils of the Great Rift Valley often are conducive to agriculture if water is available for irrigation. Source: Source: USDA/Foreign Agriculture Service, Addis Ababa, Total Market Size = (Total Local Production + Total Imports) (Total Exports). Oilseeds of lesser significance include castor beans, rapeseed, peanuts, and safflower and sunflower seeds. Approximately 25% of Ethiopia's population depended directly or indirectly on coffee for its livelihood. [23], Ethiopia has great potential for increased livestock production, both for local use and for export. [10], Until the 1974 revolution, Ethiopia had a complex land tenure system, which some have described as feudal. Much of the food deficit was covered through food aid. Since then, export earnings from this sector have grown to about US$65 million in 200607 and are projected to double over the next few years. Grain yields are relatively low due to the countrys rugged topography, poor land management, small-scale landholdings, irregular rainfall, limited mechanization, and insufficient supplies of fertilizer and improved seed. In addition, the GOE is looking to the agro-processing sector (also a best prospect sector detailed below) as one engine to spur future economic growth. Their resistance to this change increased when Zemecha members campaigned for collectivization of land and oxen. The GOE has an ambitious plan to attain wheat self-sufficiency and halt importations. Mengistu and his advisers believed that state farms would produce grain for urban areas, raw materials for domestic industry, and also increase production of cash crops such as coffee to generate badly needed foreign exchange. With support from the African Development Banks agricultural Technologies for African Agricultural Transformation program. @article{Haile1988CausesAC, title={Causes and Characteristics of Drought in Ethiopia. The clearing of land for agricultural use and the cutting of trees for fuel gradually changed the scene, and today forest areas have dwindled to less than 4% of Ethiopia's total land. A Review of Ethiopian Agriculture Roles Policy and Small Scale Farming . The two dominant agricultural systems in Ethiopia are the mixed agriculture of the highlands, where both crops and livestock production are integrated, and pastoralism in the lowlands. [5] Ethiopia's livestock population is believed to be the largest in Africa, and in 20062007 livestock accounted for 10.6% of Ethiopia's export income, with leather and leather products making up 7.5% and live animals 3.1%. The ten-year plan called for an increase in the size of state farms producing coffee from 14,000 to 15,000 hectares to 50,000 hectares by 1994. Despite the Derg's efforts to reassure farmers that land reform would not affect them negatively, northerners remained suspicious of the new government's intentions. Agriculture is the backbone of the economy of the country as the following facts indicate. The industry began in 2004, when the government made an aggressive push for foreign investments by establishing a presence at major international floricultural events. Export sales of U.S. cotton are expected as demand increases. juice processing, milling machines, extruders for soybean oil). <i>Methods</i>. Grain production is one of the most important sub-sectors in the countrys agriculture-based economy. In fact, over 50% of the daily caloric intake of an average household is from wheat, sorghum, and corn. This article is the second in a series that seek to examine the role of agriculture as a developmental opportunity for Africa. Households spend an average of 40% of their total food budget on cereals. Some informal trade is most likely occurring in production areas located along borders. The pilot areas selected for establishment of the Agro-Industrial Parks are mainly based on the potential of existing agricultural resources and allied sectors, infrastructure, and facilities. The GOE is focusing on expanding chicken meat production in order to reduce the countrys longstanding dependence on the livestock sector, minimize the sectors environmental footprint, and provide more affordable protein to the masses. The farmers continued to utilize their ancient system of production despite changing ecological and population pressures. <i>Results . It is cultivated principally by the Gurage, Sidama, and several other ethnic groups in the region. Ethiopia is well positioned because highland temperatures make it ideal for horticulture, the average wage rate is US$20 per month (compared to US$60 a month in India), the price of leased land is about US$13 per hectare, and the government has tremendously aided the entry of new businesses into this sector in recent years. For instance, according to the World Bank between 1980 and 1987 agricultural production dropped at an annual rate of 2.1 percent, while the population grew at an annual rate of 2.4 percent. The Government of Ethiopia (GOE) has embarked on a ten-year economic development plan (2021-2030) where agriculture is on the top of priority sectors. "Roles of extension and ethno-religious networks in acceptance of resource-conserving agriculture among Ethiopian farmers." Ethiopia is also Africa's second biggest maize producer. [7], Pulses are the second most important element in the national diet and a principal protein source. [7] Since the fall of the Derg, there have been a number of initiatives to improve the food supply, which include research and training by the Ethiopian Institute of Agricultural Research. The Mengistu regime encouraged fruit and vegetable production. The major binding constraints of the sector are insufficient yields due to inefficient provision of inputs and services, unclear land lease rights, limited investment in R&D and irrigation, marketing and logistics related problems, and lack of agriculture-specific financial services. For this to happen, the government will need to guarantee sufficient allocations of foreign exchange. Agriculture. However, the expected level was not achieved. Hence, fewer people send their cattle in transhumance.[29]. agriculture, poverty and illiteracy are important causes of land and environmental degradation in Ethiopia. Between 198485 and 198687, at the height of the drought, Ethiopia received more than 1.7 million tons of grain, about 14 percent of the total food aid for Africa. [24] As Ethiopia increasingly experiences the effects of climate change, drought, and desertification, experts predict that "Ethiopia will have to open its markets to grain imports in order to keep up with the growing demand for meat, milk, and eggs.". J. The agricultural production trends throughout the 1980's up to mid-1990's were characterized by wide fluctuations in total output and weak growth, with grain production increasing at rate of 1.37% annually compared to population growth of 2.9 % (World Bank, 2004). The government mobilized farmers and organized "food for work" projects to build terraces and plant trees. Agro-processed products, such as chicken, cheese, butter, eggs, biscuits, bread, juice, etc. Ethiopia is home to abundant livestock resources. Put in perspective, Ethiopia's key agricultural sector has grown at an annual . [7], In 1984 the founding congress of the Workers' Party of Ethiopia (WPE) emphasized the need for a coordinated strategy based on socialist principles to accelerate agricultural development. The Ethiopian Government set up the Growth and Transformation Plan (GTP) to reach certain goals between 2011 and 2015. Grain imports are almost exclusively limited to wheat, nearly all of which the GOEs state-trading arm (i.e., Ethiopian Trading Business Corporation) purchases off the international market and later distributes in the local market at a subsidized price. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. This is a best prospect industry sector for this country. Among the popular games on the grasslands, football (introduced via schools) tends to replace the traditional qarsa game. Per capita meat consumption was high by developing countries' standards, an estimated thirteen kilograms annually. Agriculture is one of the best prospect sectors for growth in Ethiopia. Ethiopia's agriculture is plagued by periodic drought, soil degradation[1] caused by overgrazing, deforestation, high levels of taxation and poor infrastructure (making it difficult and expensive to get goods to market). It is roughly 7 and a half years behind the Gregorian calendar. The first, found in areas with relatively good drainage, consists of red-to-reddish-brown clayey loams that hold moisture and are well endowed with needed minerals, with the exception of phosphorus. In addition, some of Ethiopias cash crops show potential for growth and offer possible investment opportunities in areas such as coffee, oilseeds, pulses, fruits and vegetables, honey, cut flowers, tea, and spices. Additionally, camels provide pastoralists in those areas with milk and meat. These types of soils are found in much of the Southern Nations, Nationalities, and People's Region (SNNPR). Washington, DC 20230. In addition, the rugged topography of the highlands, the brief but extremely heavy rainfalls that characterize many areas, and centuries-old farming practices that do not include conservation measures have accelerated soil erosion in much of Ethiopia's highland areas. Second, because peasants faced food shortages, they gave priority to cereal staples to sustain themselves. Among the top priorities identified by the GOE include: small and large-scale irrigation development, financing agricultural inputs, increasing productivity of crops and livestock, improving agricultural production methods using mechanization, post-harvest loss reduction, developing a research-based food security system, and natural resource management. It focusses on Ethiopia and provides a broad overview of some of the key developments in agriculture. [7], The plains and low foothills west of the highlands have sandy and gray-to-black clay soils. Blue Nile makes about 80% by volume of the Great Nile River. Most of these farmers lived in the Ethiopian Highlands, mainly at elevations of 1,500 to 3,000 meters. y's natural potential, the agricultural performance remains weak; high dependency on rain-fed In Ethiopia, agriculture is the mainstay of the majority of the population and major driver of the national economy. In addition, it is hoped that the number of key crops are doubled from 18.1m metric to 39.5m metric tonnes. Section D. Productivity and technology. There is a functional relationship between the use of ove. For the later two Regions, estimated numbers vary greatly between conventional and aerial censuses, but total less than 15% of the non-nomadic Regions. Such wide price variations created food shortages because farmers as well as private merchants withheld crops to sell on the black market at higher prices.[7]. Among the overall agricultural output produced by an Ethiopian family farm, only 21 percent are sold, highlighting the subsistence-oriented nature of the country's smallholders. The government and the international community are working together to address many of these challenges. In the dry lowlands, persistent winds also contribute to soil erosion. Develop a legal framework for agriculture-specific financial services such as micro-lending, crop insurance and forward contracts. [7], The effect of the Derg's land reform program on food production and its marketing and distribution policies were among two of the major controversies surrounding the revolution. Furthermore, the ten-year plan envisages to build a climate resilient green economy. This site contains PDF documents. Since the 2000s, Ethiopia has emerged as one of the fastest-growing economies in Africa. During 1983-84 the Ministry of Agriculture used "food for work" projects to raise 65 million tree seedlings, plant 18,000 hectares of land, and terrace 9,500 hectares of land. In the future, the government intends to work with the private sector to develop capacity to process some of these commodities, like fruits and vegetables, in order to add value and capture higher export prices. The AMC was a government agency whose objective was to influence the supply and price of crops. Where the topography permits, they are suitable for farming. Contagious diseases and parasitic infections are major causes of death, factors that are exacerbated by malnutrition and starvation. It is a major subsistence crop and it is used as food. Agriculture accounts for most of (30-42%)t of the Gross Domestic Product (GDP) of the country. Mia MacDonald and Justine Simon (2010) Climate, Food Security, & Growth: Ethiopia's Complex Relationship with Livestock. Prior to the Revolution, urbanization increased the demand for fruit, leading to the establishment of citrus orchards in areas with access to irrigation in Shewa, Arsi, Hararghe, and Eritrea. The problem became so serious that Mengistu lashed out against the peasantry on the occasion of the fourth anniversary of military rule in September 1978. The anticipated growth in these subsectors could open niche opportunities for sales of U.S. grain and oilseed commodities in the future, as well as processing and storage equipment, such as feed mills and soybean extruders. Commercial Imports from the United States, Source: USDA/Foreign Agriculture Service, Addis Ababa, (Total market size = (total local production + imports) - exports). There was much debate as to whether or not these reforms were genuine and how effectively they could be implemented. Despite this potential, however, Ethiopian agriculture has remained underdeveloped. In June, 1997, the Ethiopian Agricultural Research Organization (EARO), today's Ethiopian Institute of Agricultural Research (EIAR) was established and merged all the existing agricultural research institutions which included: 1. [7], Ethiopia's estimated livestock population is often said to be the largest in Africa. Grains - Grains are the most important field crops and the main element in the diet of most Ethiopians. The mixed agriculture exhibits several subsystems. As reviewed from different literatures household demographic characteristics, household resource endowments, social, cultural, infrastructural, institutional and economic factors influence the . To achieve this, the GOE seeks to leverage on developing huge unutilized arable land, modernizing production systems, and improving uptake of technology. Land Utilization (Private Peasant Holdings, Meher Season) 2020/21 (2013 E.C.) An estimated 85 percent of the population are engaged in agricultural production. Pulses were a particularly important export item before the revolution. In view of this, a study was conducted to characterize the landscape features and related biophysical settings and to identify the local soil . Textile and apparel manufacturing and equipment. Ethiopia is endowed with abundant agricultural resources and has diverse agro-ecological zones. [7], Wheat stem rust threatens the Ethiopian harvest every year and recently that especially means Ug99. As a result, a number of Indian entrepreneurs are relocating to Ethiopia to develop its thriving flower industry which has led to gains in market share at the expense of neighboring countries. Domestically, coffee contributed about 20% of the government's revenue. In addition to red meat, there are emerging opportunities in chicken, egg, and dairy production and processing. Sorghum and millet, which are drought resistant, grow well at low elevations where rainfall is less reliable. To promote commercial-scale farming, the Ministry of Agriculture (MOA) created the Ethiopian Agricultural Land and Investment Administration Agency dedicated to overseeing any new large-scale commercial farm deals. This can be attributed to two factors. Facing a Foreign Trade AD/CVD or Safeguard Investigation? 2. Agro-processing equipment (e.g. [8], During the imperial period, the development of the agricultural sector was retarded by a number of factors, including tenancy and land reform problems, the government's neglect of the agricultural sector (agriculture received less than 2 percent of budget allocations even though the vast majority of the population depended on agriculture), low productivity, and lack of technological development. . Furthermore, the GOE vowed to begin exporting wheat to neibhouring countries by 2023 by tapping into the huge production potential due to its various favorable agro-ecologies and through expansion of wheat production area under irrigation to achieve self-sufficiency and reduce wheat imports. In fact, the Ethiopia Investment Commission considers the textile and garment sector as a strategic sector. To that end, the government has made significant investments in cotton production in order to support manufacturing, including the recent establishment of industrial zones, and has gone to great lengths to provide incentives to attract foreign manufacturers to set up operations in the country. Between 1976 and 1985, the government constructed 600,000 kilometers of agricultural embankments on cultivated land and 470,000 kilometers of hillside terraces, and it closed 80,000 hectares of steep slopes for regeneration. The major product in are teff, wheat, maize, sesame, Niger, linseed etc.