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. As many as 4.6 million people need food assistance annually and agriculture in Ethiopia is the foundation of the country's economy, accounting for half of the gross domestic product (GDP). That is why per hectare yield of crop is . Agriculture. In particular, demand for cooking oil, sugar, meat, eggs, dairy products, wheat-based products, such as pasta and bread, alcoholic and non-alcoholic beverages, are forecast to climb upward. A 1979 study showed that around Addis Ababa individual holdings ranged from 1.0 to 1.6 hectares and that about 48 percent of the parcels were less than one-fourth of a hectare in size. Niger seed is found mostly in the northern and central highlands at elevations between 1,800 and 2,500 meters. In addition to red meat, there are emerging opportunities in chicken, egg, and dairy production and processing. [27], Poultry farming is widely practiced in Ethiopia; almost every farmstead keeps some poultry for consumption and for cash sale. Accordingly, state farms received a large share of the country's resources for agriculture; from 1982 to 1990, this totaled about 43% of the government's agricultural investment. For instance, the 198485 official procurement price for 100 kilograms of teff was 42 birr at the farm level and 60 birr when the AMC purchased it from wholesalers. While by 1988 a total of 3600 Service Cooperatives were serving 4.4 million households and almost 4000 Producer cooperatives comprising 302,600 households had been founded, in that year they represented only 5.5% of national cereal production. [25], Both the imperial and the Marxist governments tried to improve livestock production by instituting programs such as free vaccination, well-digging, construction of feeder roads, and improvement of pastureland, largely through international organizations such as the World Bank and the African Development Bank. Put in perspective, Ethiopia's key agricultural sector has grown at an annual . Tenant farmers in southern Ethiopia, where the average tenancy was as high as 55% and rural elites exploited farmers, welcomed the land reform. The AMC was a government agency whose objective was to influence the supply and price of crops. When you select "Accept all cookies," you're agreeing to let your browser store that data on your device so that we can provide you with a better, more relevant experience. Grains - Grains are the most important field crops and the main element in the diet of most Ethiopians. In the 20062007 EFY hides, skins and leather products made up 7.5% of the total export value; live animals accounted for 3.1% of the total value of exports during the same period. Demand for vegetables has stimulated truck farming around the main urban areas such as Addis Ababa and Asmera. Teff, indigenous to Ethiopia, furnishes the flour for enjera, an sourdough pancake-like bread that is the principal form in which grain is consumed in the highlands and in urban centers throughout the country. Veterinary Drug and Animal Feed Administration & Control Authority (VDAFACA), NationalAnimalHealthDiagnosticand InvestigationCenter(NAHDIC), Ethiopia Agricultural Business Corporation (EABC), International Trade Administration The first three are primarily cool-weather crops cultivated at altitudes generally above 1,500 meters. [7], By the mid-1960s, many sectors of Ethiopian society favored land reform. Only 15 percent of the roads are paved; this is a problem particularly in the highlands, where there are two rainy seasons causing many roads to be unusable for weeks at a time. During the same period (197387), population increased at an average annual rate of 2.6 percent (2.4 percent for 198087). The country, therefore, is expected to import wheat and soybeans in the coming years. The principal grains are teff, wheat, barley, corn, sorghum, and millet. Section D. Depending on international market conditions and local demand factors, there may be opportunities in the future for U.S. wheat and soybean sales to Ethiopia. There is considerable room for investment when considering that about 95 percent of Ethiopias crop production is rain fed. According to Infomineo (2016), the key agricultural sectors in Ethiopia are the following: Coffee & tea; Ethiopia has a great potential for coffee production, thanks to the country's abundant rainfall, optimum temperatures, conducive altitude, and fertile soil. 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). The agricultural sector is subject to periodic drought, and poor infrastructure constrains the production and marketing of Ethiopia's products. The GOE imposes an export ban on cereal grain and local prices are often higher than what they are on the international market. Beef exports are also growing, with additional market opportunities on the horizon. Consequently, Ethiopia became a net importer of grain worth about 243 million Birr annually from 198384 to, 198788. A large chunk of this commercially produced red meat, most of which is currently mutton and goat meat is exported to the Middle East in order to generate foreign exchange. During the 1970s, coffee exports accounted for 50-60% of the total value of all exports, although coffee's share dropped to 25% as a result of the economic dislocation following the 1974 revolution. Ethiopian Agricultural Research Institute (EIAR), Ethiopian Trading Business Corporation (ETBC). Most of these farmers lived in the Ethiopian Highlands, mainly at elevations of 1,500 to 3,000 meters. For this to happen, the government will need to guarantee sufficient allocations of foreign exchange. Ethiopia: Urban Agriculture and Poverty Alleviation. Farmers' group formation accompanies the reform process. According to Ethiopia farming, this ploughing the land to prepare the soil for sow requires around two quarter of a year. It purchased grain from peasant associations at fixed prices. The AMC set quotas of grain purchases to be delivered by peasant associations and cooperatives and also bought from private wholesalers, who were required to sell half of their purchases at predetermined prices. Research on the constraints, characteristics, and performance of the enterprise sector in low-income countries is often constrained by scarcity . [7] The Blue Nile River. An estimated 85 percent of the . Supply and demand characteristics 2 2.3. Exports are almost entirely agricultural commodities, and coffee is the largest foreign exchange earner. Agron., 16: 180-195. . In pastoral areas, livestock formed the basis of the economy. Share sensitive information only on official, secure websites. to industries; export crops, from whose sales industries infrastructure and the like may be established; and . Feed manufacturing, feed ingredients and feed milling equipment. The soils of the Great Rift Valley often are conducive to agriculture if water is available for irrigation. University students led the land reform movement and campaigned against the government's reluctance to introduce land reform programs and the lack of commitment to integrated rural development. This government-led outreach, combined with low labor and electricity costs, has already yielded fruits with a number of Turkish, Indian, Chinese, Indonesian and other foreign firms opening businesses in Ethiopia in recent years. TheInternational Trade Administration,U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements. Citation: Kehali Jembere, Tekalign Mamo and Kibebew Kibret, 2017. The vision of the CSA is to be a center of excellence in . [7] According to the Central Statistical Agency (CSA), in 2008 the average Ethiopian farmer holds 1.2 hectares of land, with 55.13% of them holding less than 1.0 hectare. Examining the characteristics of stakeholders in Lake Tana Sub-basin resource use, management and Governance -- 21. Agro-processed products, such as chicken, cheese, butter, eggs, biscuits, bread, juice, etc. These programs should also result in Ethiopia getting to middle income status by 2025. 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. However, these cattle do relatively well under the traditional production system. The farmers continued to utilize their ancient system of production despite changing ecological and population pressures. This site contains PDF documents. The GOE has an ambitious plan to attain wheat self-sufficiency and halt importations. Brighter Green, 6. [7], Livestock production plays an important role in Ethiopia's economy. Ethiopia's crop agriculture is complex, involving substantial variation in crops grown across the country's different regions and ecologies. By 1974 the Ministry of Agriculture's Extension and Project Implementation Department had more than twenty-eight areas with more than 200 extension and marketing centers. The contribution of agriculture to growth in the manufacturing and services sectors was not significant between 1978 and 1998. Agriculture in Ethiopia. Crop and Livestock Product Utilization (Private Peasant Holdings . Ploughing the land using these tools is ambiguous and time-consuming. Trade. 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. Most oilseeds are raised by small-scale farmers, but sesame was also grown by large-scale commercial farms before the era of land reform and the nationalization of agribusiness. Taro, yams, and sweet potatoes are commonly grown in the same region as the ensete. Please see below a summary of agricultural focus areas and objectives laid out in Ethiopias ten-year economic development plan (2021-2030). [17], Cotton is grown throughout Ethiopia below elevations of about 1,400 meters. Similarly, the area of cultivation increased from 22,600 hectares in 197475 to 33,900 hectares in 198485.[7]. The Central Statistical Agency of Ethiopia (CSA) is responsible for the statistical data generation related to the socio-economic condition of the country. Official websites use .gov In Wollo Province, for example, there were an estimated 111 types of land tenure. The Mengistu regime encouraged fruit and vegetable production. Agriculture as a key element for the development of other sectors 3 3. It began with the domestication of crops and animals. Some of the land targeted for commercial development is considered marginal, prone to conflict, and/or has limited access to water. [7], While efforts are being made to intensify and industrialize the sector, questions arise as to how Ethiopia can develop and expand its livestock population when Ethiopians already struggle to gain access to good soil, grazing land, and water. Coffee grows wild in many parts of the country, although most Ethiopian coffee is produced in the Oromia Region (63.7%) and in the SNNPR (34.4%), with lesser amounts in the Gambela Region and around the city of Dire Dawa. Ethiopia is also Africa's second biggest maize producer. "Ethiopia: Share of economic sectors in the gross domestic product (GDP) from 2010 to 2020", "Agriculture in Ethiopia: data shows for a large part Agriculture still retained its majority share of the economy", "The Federal Democratic Republic of Ethiopia: Selected Issues Series", "National Statistical Abstract. However, despite substantial investments and subsidies, State Farms provided only 4.2% of the cereal production in 198889. Agricultural equipment and systems, such as tractors, irrigation equipment, and grain handling Infrastructure like, silos, cold storage facilities, etc. It accounts for nearly 80% of the land under cultivation and employs 60% of the rural workforce, most of which work on less than one hectare of land. . [10] This has raised fears of food being exported to more prosperous countries while the local population faces its own shortage. Role Agriculture in Ethiopian economy. [7], The plains and low foothills west of the highlands have sandy and gray-to-black clay soils. In this regard, the CSA conducts, produces, disseminates and administers data generated from surveys and censuses 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. [7], The objectives of villagization included grouping scattered farming communities throughout the country into small village clusters, promoting rational land use, conserving resources, providing access to clean water and to health and education services, and strengthen security. 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. major pulse crops grown in the country are chickpea, haricot beans, lentils, fababean and peas, The Ethiopian Orthodox Church traditionally has forbidden consumption of animal fats on many days of the year. Following their rise to power, on March 4, 1975, the Derg proclaimed their land reform program. Lake Tana Subbasin's Economy and The Role of Natural Resources -- 22. A lock ( A locked padlock ) or https:// means youve safely connected to the .gov website. In EFY 197475, pulses and oilseeds accounted for 34% of export earnings (about 163 million Birr), but this share declined to about 3% (about 30 million Birr) in EFY 198889. Food production had consistently declined throughout the 1980s. It features and analyzes the country's agricultural progress from 1960s to date, and some . Kassaye Tolassa . Agriculture >. Resembling the banana but bearing an inedible fruit, the plant produces large quantities of starch in its underground rhizome and an above-ground stem that can reach a height of several meters. With respect to increasing productivity, the GOE, alongside its international partners, has made a number of interventions to support the development of the agriculture sector. Second, because peasants faced food shortages, they gave priority to cereal staples to sustain themselves. Land use function 2 2.2. The chicken business also shows promising opportunities. This article examines the characteristics of and choice among two production technologies in Ethiopian agriculture, one with fertilizer and the other without, using 1989-90 farm-level data. Land tenure rights as well as natural disasters, such as floods, hamper the countrys ability to quickly expand cotton production. Last edited on 21 February 2023, at 19:04, Southern Nations, Nationalities, and People's Region, Ethiopian Institute of Agricultural Research, List of Goods Produced by Child Labor or Forced Labor. Potential opportunities exist for sales of U.S. livestock genetics and chicken meat. Moreover, the emperor's inability to implement meaningful land reform perpetuated a system in which aristocrats and the church owned most of the farmland and in which most farmers were tenants who had to provide as much as 50% of their crops as rent. USA.gov|FOIA|Privacy Program|EEO Policy|Disclaimer|Information Quality Guidelines |Accessibility, Official Website of the International Trade Administration, Comply with U.S. and Foreign Export Regulations. Thus, this study aimed at investigating the physiographic characteristics of agricultural lands, farmers . There are opportunities to process livestock products for both local and export markets. Commercial agriculture using the river basins, such as the Awash Basin, is a recent phenomenon. One way the government is hoping to improve cotton yields is with Genetically Engineered (GE) cotton. The Tendaho Cotton Plantation in the lower Awash Valley was one of Ethiopia's largest cotton plantations. These areas are used by pastoralists who move back and forth in the area following the availability of pasture for their animals. 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. Farm Management Practices (Private Peasant Holdings, Meher Season) 2020/21 (2013 E.C.) "Roles of extension and ethno-religious networks in acceptance of resource-conserving agriculture among Ethiopian farmers." This growth is expected to create investment and trade opportunities for certain commodities and open doors for veterinary and other livestock services. The GOE has approved two different varieties of Bt cottonseeds for commercial cultivation. 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. Contributions, potentials and characteristics of agriculture in Ethiopia The contributions of agriculture in Ethiopia The Ethiopian economy is an agrarian economy. Merkebu Getachew. The major product in are teff, wheat, maize, sesame, Niger, linseed etc. Yet agriculture is the country's most promising resource. Title. Productivity and technology. With 22% of children aged 5 to 14 working in the informal sector, the Department reported that "government efforts to address child labor have not sufficiently targeted sectors with a high incidence of child labor",[28] and cattle herding still figures among the goods listed in the DOL's List of Goods Produced by Child Labor or Forced Labor published in December 2014. Of an estimated 750,000 hectares of private commercial farms in operation at the time of the 1975 land proclamation, 67,000 hectares were converted into State Farms that, beginning in 1979, were operated by a new Ministry of State Farms. Section D. The government's price controls and the AMC's operations had led to the development of different price systems at various levels. UNJP-RWEE was a five-year long initiative with the objective of accelerating the economic empowerment of rural women . (2013). However, opponents of villagization argued that the scheme was disruptive to agricultural production because the government moved many farmers during the planting and harvesting seasons. Milk and dairy processing, and supporting equipment and systems. The market is segmented by type into food crops, fruits, and vegetables. Ensete flour constitutes the staple food of the local people. As reviewed from different literatures household demographic characteristics, household resource endowments, social, cultural, infrastructural, institutional and economic factors influence the . Source: Source: USDA/Foreign Agriculture Service, Addis Ababa, Total Market Size = (Total Local Production + Total Imports) (Total Exports). [31] ploughing the land to soften the land takes three months and from sowing and seedling to the harvesting of the crops requires three to four months. Agricultural production has been highly dependent on natural resources for centuries [].However, increased human population and other factors have degraded the natural resources in the country thus seriously threatening sustainable agriculture and food security [2, 3]. 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. [27], Most of Ethiopia's estimated 48 million sheep and goats are raised by small farmers who used them as a major source of meat and cash income. "Agriculture" (and subsections), updated with latest figures from the CSA. In the highlands, oxen provided draft power in crop production. Food as a most essential good 3 2.5. Agriculture. Regular and reliable harvests helped generate stable tax income that led to relatively strong governmental structures that were ultimately the reason that Ethiopia was the only country not to be colonized in the late-nineteenth century Scramble for Africa apart from Liberia. Advanced Search Citation Search . For example, during the pre-reform period, sixty-one out of 200 farmer respondents owned three or four parcels of land; after the reform, the corresponding number was 135 farmers. In fact, the soybean crushing and soybean oil refining industry is quickly emerging. However, the sector has always performed poorly; about one-half of the rural residents in Ethiopia live below the national poverty line, and the rural population is endowed with few and poorly provided social amenities. Agriculture accounts for 36% percent of the nation's Gross domestic Product (GDP) as of 2020. Ethiopia has considerable potential for producing cotton. See, for example, Central Statistical Authority of Ethiopia, "National Statistical Abstract. Another study, of Dejen awraja (subregion) in Gojjam, found that land fragmentation had been exacerbated since the revolution. Common vegetables include onions, peppers, squash, and a cabbage similar to kale. With the support of the IMF, the Ethiopian government has developed an ambitious Homegrown Economic Reform Planto propel the countrys economic progress. Private . Ethiopia's economy is based on agriculture, which accounts for 46% of GDP and 85% of total employment. will supply the domestic market. The MPP included credit for the purchase of items such as fertilizers, improved seeds, and pesticides; innovative extension services; the establishment of cooperatives; and the provision of infrastructure, mainly water supply and all-weather roads. It has also enjoyed a considerable attention by the government. In addition to its domestic use, sesame is also the principal export oilseed. 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. Ethiopia sources cotton mainly from India and other international suppliers. Ethiopia's agricultural sector has developed favourably over the past decade, but rapid population growth, limited access to fertile land, and volatile agricultural outcomes pose problems for the . [7], The consumption of vegetables and fruits is relatively limited, largely because of their high cost. Agriculture is the mainstay of Ethiopian economy involving major source of employment and gross national product. The Ethiopian Herald (Addis Ababa) Urban agriculture utilizes resources such as land that have high demand for other urban uses . 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. Some of these products, especially the textiles, apparel, leather goods, and finished meat products are targeted for export markets in order to generate foreign exchange. Section D. Sorghum and millet, which are drought resistant, grow well at low elevations where rainfall is less reliable. Oilseeds of lesser significance include castor beans, rapeseed, peanuts, and safflower and sunflower seeds. The high concentration of animals in the highlands, together with the fact that cattle are often kept for status, reduces the economic potential of Ethiopian livestock. State farms sold their output to the AMC. [11], The primary motive for the expansion of state farms was the desire to reverse the drop in food production that has continued since the revolution. It was also estimated that over 60 percent of the cultivated area was cropland. These conditions include basic agricultural production potentials, access to input and output markets, and local population densities which represent both labor availability and local demand for food. Yet, information regarding its extent, distribution, causes, and lime requirement at a scale relevant to subsistence farming systems is still lacking. Camels also play a key role as pack animals in areas below 1,500 meters in elevation. But the same quantity of teff retailed at 81 birr at food stores belonging to the urban dwellers' associations (kebeles) in Addis Ababa and sold for as much as 181 birr in the open market. [10], Until the 1974 revolution, Ethiopia had a complex land tenure system, which some have described as feudal. Available data on crop production show that land reform and the various government rural programs had a minimal impact on increasing the food supply, as production levels displayed considerable fluctuations and low growth rates at best. However, it is also one of the poorest, with a per capita gross national income of $960. Wubne, Mulatu. Commercial Imports from the United States, Source: USDA/Foreign Agriculture Service, Addis Ababa, (Total market size = (total local production + imports) - exports). Some informal trade is most likely occurring in production areas located along borders. For northwest and central Ethiopia, fertilizer usage determinants are estimated simultaneously with technology-specific production functions. Ethiopia is home to one of the largest livestock populations in Africa. 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. There also was concern that villagization could have a negative impact on fragile local resources, accelerate the spread of communicable diseases, and increase problems with plant pests and diseases. <i>Results . There may also be future opportunities for equipment and systems to process these commodities. Ethiopia has previously imported cotton from various international suppliers. First, the recurring droughts had devastated the country's main areas where pulses and oilseeds were grown. More background information on the cotton situation in Ethiopia can be found in our cotton report from 2019/20. The Ethiopian Socioeconomic Survey (ESS) is a collaborative project between the Central Statistics Agency of Ethiopia (CSA) and the World Bank Living Standards Measurement Study- Integrated Surveys on Agriculture (LSMS-ISA) team. areas like Punjab, Haryana and Chandigarh, elsewhere it is practiced on traditional lines. As the economy grows and the population expands, consumer demand for certain types of foods is expected to increase. Agro-processing, such as beverages, biscuits, bread, milk, meat, chicken, cooking oil, fruit and vegetables, etc. ", Ethiopian Institute of Agricultural Research website, "National Growth and Transformation Plan", "Ethiopia's transforming wheat landscape: tracking variety use through DNA fingerprinting", "Press release: Rust-resistant bread wheat varieties widely adopted in Ethiopia, study shows CGIAR Research Program on WHEAT", "Livestock Sample Survey (AgLVS 2006), version 1.0", USGC Reps Meet With Ethiopian Feed Industry to Assess Market Barriers, "Ethiopia, 2013 Findings on the Worst Forms of Child Labor", "Transhumance in the Tigray highlands (Ethiopia)", https://en.wikipedia.org/w/index.php?title=Agriculture_in_Ethiopia&oldid=1140777650, This page was last edited on 21 February 2023, at 19:04. 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. Although the MPPs improved the agricultural productivity of farmers, particularly in the project areas, there were many problems associated with discrimination against small farmers (because of a restrictive credit system that favored big landowners) and tenant eviction. However, even with this anticipated increase in chicken meat production, demand is expected to outstrip supply, thereby creating potential opportunities for imports. Additionally, camels provide pastoralists in those areas with milk and meat. Local demand for meat, milk and eggs is growing as the economy and population grow. Most of these crops are exported to generate foreign exchange. Land ownership is also a complicating factor. There are two predominant soil types in the highlands. The soil was equilibrated with pH 7.5 buffer solution whereby reserve H is brought into the solution, which results in depression of pH which will be made and . }, author={Tesfaye Haile}, journal={Ethiopian Journal of Agricultural Sciences}, year={1988}, volume={10}, pages={85-97} } T. Haile; Published 14 July 1988; Geography; Ethiopian Journal of Agricultural Sciences [7], Wheat stem rust threatens the Ethiopian harvest every year and recently that especially means Ug99. This can be attributed to two factors. in addition to these cereals, they produce different types of fruits and coffee which are not seasonal.