In 1971 the Ministry of Agriculture introduced the Minimum Package Program (MPP) to bring about economic and social changes. With support from the African Development Banks agricultural Technologies for African Agricultural Transformation program. Ethiopias development plan has laid out enhancing agricultural production and productivity as one of the major strategic pillars. At the moment, there are a few U.S. and foreign firms that have partnered with local companies in the milk business, which has considerable room for growth, as milk consumption is still very low. Please see below a summary of agricultural focus areas and objectives laid out in Ethiopias ten-year economic development plan (2021-2030). 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]. J. 27 May 2021. By 1989, the area covered by the State Farms had grown to a total of 220,000 hectares. Ethiopian Agricultural Research Institute (EIAR), Ethiopian Trading Business Corporation (ETBC). Contagious diseases and parasitic infections are major causes of death, factors that are exacerbated by malnutrition and starvation. 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. [14], The most important cash crop in Ethiopia was coffee. 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. Rain-fed cotton also grew in Humera, Bilate, and Arba Minch. Agriculture. By 1976 coffee exports had recovered, and in the five years ending in 198889, 44% of the coffee grown was exported, accounting for about 63% of the value of exports. For the foreseeable future, the demand for cotton is expected to outstrip local supplies, making imports necessary. Tenant farmers in southern Ethiopia, where the average tenancy was as high as 55% and rural elites exploited farmers, welcomed the land reform. "National Statistical Abstract. For the later two Regions, estimated numbers vary greatly between conventional and aerial censuses, but total less than 15% of the non-nomadic Regions. agriculture, poverty and illiteracy are important causes of land and environmental degradation in Ethiopia. The study sought to assess the role of smallholder farming in crop productivity and market access . The food deficit estimate for the 198589 period indicated that production averaged about 6 million tons while demand reached about 10 million tons, thus creating an annual deficit of roughly 4 million tons. That is why per hectare yield of crop is . 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. [7] Multinational agribusinesses supply these industrial poultry farms with high yielding breeds, such as Rhode Island Reds and White Leghorns. Under the Homegrown Economic Reform Program,the GOE intends to make the textile and apparel industry one of the economic engines that will propel future growth. 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. [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. 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. Farmers' group formation accompanies the reform process. 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. Share sensitive information only on official, secure websites. y's natural potential, the agricultural performance remains weak; high dependency on rain-fed International Journal of Agricultural Sustainability 11(4): 301-316. The government and the international community are working together to address many of these challenges. [12], In addition to smaller productions of other agricultural products.[13]. The Central Statistical Agency of Ethiopia (CSA) is responsible for the statistical data generation related to the socio-economic condition of the country. [10] This has raised fears of food being exported to more prosperous countries while the local population faces its own shortage. 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. [17], Cotton is grown throughout Ethiopia below elevations of about 1,400 meters. In order to address the ongoing drought, the GOE is renewing its emphasis on developing the countrys irrigation systems and water-harvesting methodologies. Ethiopia is endowed with abundant agricultural resources and has diverse agro-ecological zones. However, expansion was constrained by inadequate nutrition, disease, a lack of support services such as extension services, insufficient data with which to plan improved services, and inadequate information on how to improve animal breeding, marketing, and processing. The Ethiopian Herald (Addis Ababa) Urban agriculture utilizes resources such as land that have high demand for other urban uses . However, beginning in 1987 the decline in world coffee prices, reduced Ethiopia's foreign-exchange earnings. [7] 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. A major subsistence crop, barley is used as food and in the production of tella, a locally produced beer. [7], The plains and low foothills west of the highlands have sandy and gray-to-black clay soils. Agro-processing, such as beverages, biscuits, bread, milk, meat, chicken, cooking oil, fruit and vegetables, etc. [7], By the mid-1960s, many sectors of Ethiopian society favored land reform. There are two predominant soil types in the highlands. Excluding the Afar and Somali Regions, there were approximately 47.5 million cattle, 26.1 million sheep, 21.7 million goats, 2.1 million horses and mules, 5.6 million donkeys, 1 million camels, and 39.6 million poultry. During this period, markets were major actors of economic activity and various positive measures, which encouraged . 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. In 20062007 (the latest year available), exports of chat accounted for 25% of export earnings (or 8oo million Birr). 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. "Agriculture" (and subsections). Agricultural equipment and systems, such as tractors, irrigation equipment, and grain handling Infrastructure like, silos, cold storage facilities, etc. These programs should also result in Ethiopia getting to middle income status by 2025. In addition, Ethiopia spent 341 million Birr on food purchases during the 1985-87 period. 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. Potato is an increasingly important crop in Ethiopia, but the origin of local cultivars grown throughout the country is unknown. By 1990 the state had begun to develop large poultry farms, mostly around Addis Ababa, to supply hotels and government institutions. [7], Ethiopia's demand for grain continued to increase because of population pressures, while supply remained short, largely because of drought and government agricultural policies, such as price controls, which adversely affected crop production. To achieve this, the GOE seeks to leverage on developing huge unutilized arable land, modernizing production systems, and improving uptake of technology. Export sales of U.S. cotton are expected as demand increases. Ethiopia's major staple crops include a variety of cereals, pulses, oilseeds, and coffee. Researchers found however that, since transhumance takes place in summer, during school holidays, the transhumance in itself does not affect schooling. "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. Blue Nile makes about 80% by volume of the Great Nile River. Ethiopia Socioeconomic Survey Wave2, 2013-2014. Agriculture is the country's most promising resource management. The program, designed for rural development, was first introduced in a project called the Chilalo Agricultural Development Union. Among the popular games on the grasslands, football (introduced via schools) tends to replace the traditional qarsa game. Three factors contributed to the decline in the relative importance of pulses and oilseeds. Land Use Distribution and Change in Lake Tana Sub Basin -- 23. More details on the latest grain and oilseeds situation in Ethiopia can be found in our Grain & Feed and our Oilseeds Reports. The Blue Nile River. The agriculture sector is projected to grow at 6.2% per annum over the next ten years. In early 1990, the government essentially abandoned villagization when it announced new economic policies that called for free-market reforms and a relaxation of centralized planning. 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. Sorghum and millet, which are drought resistant, grow well at low elevations where rainfall is less reliable. The country intends to be a middle-income economy by 2025. [2][3][4] Many other economic activities depend on agriculture, including marketing, processing, and export of agricultural products. Background Understanding the landscape features of agricultural lands and soil management practices is pertinent to verify the potential and limitations of the soil resources; and devise relevant land management strategies. Because most of the lowlands lack adequate rainfall, cotton cultivation depends largely on irrigation. The combined pressure of crop and livestock production and the ever-increasing human f AGRICULTURAL SYSTEMS IN ETHIOPIA 285 population on the land in this farming system is high. 2. 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. [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. Section D. To implement this strategy, the government relied on peasant associations and rural development, cooperatives and state farms, resettlement and villagization, increased food production, and a new marketing policy. Meat and poultry processing, and supporting equipment and systems. 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. Agriculture as a producer of positive externalities and public goods 2 2.4. The country, therefore, is expected to import wheat and soybeans in the coming years. Agriculture is the mainstay of the Ethiopian economy, contributing 41.4% of the country's gross domestic product (GDP), 83.9% of the total exports, and 80% of all employment in the country (Matousa, Todob, & Mojoc, 2013). These areas are used by pastoralists who move back and forth in the area following the availability of pasture for their animals. 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. Our web pages use cookiesinformation about how you interact with the site. [7], Wheat stem rust threatens the Ethiopian harvest every year and recently that especially means Ug99. Please see below for the market overview and trade data. Agriculture is the backbone of the economy of the country as the following facts indicate. Section D. Grain consumption, especially for wheat and wheat-based products like bread and pasta, continues to climb as incomes rise and more people move to urban centers. Additional investment opportunities are expected in the textile and garment sector as well as cotton production. Yet agriculture is the country's most promising resource. The agricultural production sector is a backbone of the Ethiopian economy. Oilseeds of lesser significance include castor beans, rapeseed, peanuts, and safflower and sunflower seeds. 1401 Constitution Ave NW
Note: Top 3 trade partners are calculated by imports + exports. According to government statistics, there are approximately 50 million cattle, 50 million goats and sheep, plus an assortment of horses, donkeys, camels and chickens. It is roughly 7 and a half years behind the Gregorian calendar. Local demand for meat, milk and eggs is growing as the economy and population grow. An estimated 85 percent of the population are engaged in agricultural production. 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. With the support of the IMF, the Ethiopian government has developed an ambitious Homegrown Economic Reform Planto propel the countrys economic progress. In this regard, Ethiopia is looking to expand development efforts to fight land degradation and to reduce pollution; reduce Green House Gas (GHG) emissions; increase forest protection and development; increase production of electricity from renewable sources for domestic use and for export; and focus on modern and energy saving technologies. Production is overwhelmingly of a subsistence nature, and a large part of commodity exports are provided by the small agricultural cash-crop sector. While, Gebreyesus and Kirubel (2009) reported that the heavy reliance of some 85 percent of Ethiopia's growing population on an exploitative kind of subsistence agriculture is a major reason behind the current state of land degradation. Households spend an average of 40% of their total food budget on cereals. The MOA is supporting the development of the countrys livestock sector, which is one of the largest in Africa. Because of drought, which has repeatedly affected the country since the early 1970s, a poor economic base (low productivity, weak infrastructure, and low level of technology), and overpopulation, the agricultural sector has performed poorly. Ethiopia has considerable potential for producing cotton. Top 3 Exported Goods (2021): Coffee & Spices, Vegetables, and Oil Seeds. Consequently, individual holdings were frequently far smaller than the permitted maximum allotment of ten hectares. Barley is grown mostly between 2,000 and 3,500 meters. Ethiopia: Urban Agriculture and Poverty Alleviation. [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. Ethiopia Socioeconomic Survey Wave1, 2011-2012. Agriculture is the backbone of the economy of the country as the following facts indicate. As a result, vegetable oils are widely used, and oilseed cultivation is an important agricultural activity. According to Ethiopia farming, this ploughing the land to prepare the soil for sow requires around two quarter of a year. There are also expanding opportunities for grocery sales to retail and wholesale outlets that are starting to spring up all over Addis Ababa. Meat and milk yields are low and losses high, especially among calves and young stock. 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. By African, standard rural development programme has long history in Ethiopia. "Agriculture" (and subsections), updated with latest figures from the CSA. Flaxseed, also indigenous, is cultivated in the same general area as Niger seed. 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 economic plan prescribes the following comprehensive measures to overcome the challenges facing the agricultural sector: Enhance productivity of small-holder farmers and pastoralists through provision of modern inputs and services; Develop a legal framework that will allow farmers to lease land and to become shareholders in large commercial farms; Modernize livestock production through improving veterinary infrastructure, research and innovation, and establishing linkages with other industries; Establish effective linkages between agriculture producers and commodity markets as well as the commercial value chain; Encourage private sector investment in agricultural R&D and exploring PPPs to expand medium and large-scale irrigation infrastructure; and. 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. Some of the land targeted for commercial development is considered marginal, prone to conflict, and/or has limited access to water. Feed manufacturing, feed ingredients and feed milling equipment. The GOE, as part of its Livestock Master Plan (LMP), intends to transform this sector and increase production and exports of meat in order to generate foreign exchange. 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. The northern parts of the highlands are almost devoid of trees. Because of low rainfall, these soils have limited agricultural potential, except in some areas where rainfall is sufficient for the growth of natural forage at certain times of the year. In this regard, the CSA conducts, produces, disseminates and administers data generated from surveys and censuses in Ethiopia. Textile and apparel manufacturing and equipment. Assess the effect of the main factors of Ethiopia crop production (land, labor & capital) in general and cereal production in particular. According to CSA (2015) report, cereals . 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. The expected growth from these agriculture-related industries offers numerous opportunities for agricultural input sales, such as tractors and harvesters, farm trucks, fertilizer, irrigation equipment, grain handling systems, food and livestock processing equipment, as well as cold storage facilities. Explain the main contribution, potentials, characteristics , and problems of Ethiopian agriculture. In early 1989, for example, the price of one kilogram/US$0.58; of coffee was by June it had dropped to US$0.32. Grains - Grains are the most important field crops and the main element in the diet of most Ethiopians. Ethiopia's crop agriculture is complex, involving substantial variation in crops grown across the country's different regions and ecologies. The Ethiopian Fruit and Vegetable Marketing Enterprise, which handled about 75 percent of Ethiopia's exports of fruits and vegetables in 198485, had to receive government subsidies because of losses. To make matters worse, during the 1972-74 drought and famine the imperial government refused to assist rural Ethiopians and tried to cover up the crisis by refusing international aid. Before the revolution, large-scale commercial cotton plantations were developed in the Awash Valley and the Humera areas. Facing a Foreign Trade AD/CVD or Safeguard Investigation? The UN Joint Programme focused on Rural Women's Economic Empowerment (UNJP-RWEE) was launched in Ethiopia in 2014 by UN Women, the Food and Agriculture Organization of the UN (FAO), the World Food Programme (WFP), and the International Fund for Agriculture Development (IFAD). 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). [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. Years of bi-directional causality were found between agriculture and manufacturing and services sectors before 1975. The Tendaho Cotton Plantation in the lower Awash Valley was one of Ethiopia's largest cotton plantations. This site contains PDF documents. As the textile and apparel industry grows, there will likely be more opportunities for U.S. cotton sales. the agriculture sector in Ethiopia relies to a greater extent on availability of suitable land, moisture, climatic . [27], Most of the estimated 7.5 million equines (horses, mules, and donkeys) are used to transport produce and other agricultural goods. fruit crops, stimulant crops and sugar cane are cultivated by farmers and other agricultural sectors in Ethiopia. It focusses on Ethiopia and provides a broad overview of some of the key developments in agriculture. [7] Despite government efforts, farmers responded less than enthusiastically. Estimates for 1987 indicated that livestock production contributed one-third of agriculture's share of GDP, or nearly 15 percent of total GDP. Skip to Article Content; Skip to Article Information; Search within. Agriculture, which constituted 46 percent of GDP and more than 80 percent of exports, is by far the most important economic activity in the Ethiopian economy. Source: United Nations Comtrade. 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. 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. 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. Despite the emphasis on state farms, state farm production accounted for only 6% of total agricultural output in 1987 (although meeting 65% of urban needs), leaving peasant farmers responsible for over 90% of production. 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. . Characteristics of agricultural landscape features and local soil fertility management practices in Northwestern Amhara, Ethiopia. Ethiopias current level of wheat and soybean production is insufficient to satisfy domestic demand. To evaluate the genetic diversity of Ethiopian potato cultivars, and to assess their relationship with germplasm from North America, Europe and the International Potato Center (CIP), 8303 SNP markers were used to characterize 44 local Ethiopian cultivars, as well as . The data from 460 sheep were used for the determination of morphometric characterization while 110 male sheep and 150 females were used to characterize the reproductive performance of Blackhead Somali sheep breeds. 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. Camels also play a key role as pack animals in areas below 1,500 meters in elevation. However, production is constrained in part by outdated ginneries and limited availability of quality inputs, including seed, fertilizer, and pest control agents. Agriculture in Ethiopia. Wubne, Mulatu. [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. The Government of Ethiopia (GOE) has identified key priority intervention areas to increase productivity of smallholder farms and expand large-scale commercial farms. The vision of the CSA is to be a center of excellence in . The most important oilseed is the indigenous Niger seed (neug), which is grown on 50 percent or more of the area devoted to oilseeds. Agriculture accounts for most of (30- 42%) of the Gross Domestic Product (GDP) of the country. The importance of smallholder farming is increasingly recognized in rural areas where increased crop productivity and market participation can effectively improve their dietary diversity and nutrition quality. 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. Both animals have high sales value in urban centers, particularly during holidays such as Easter and New Year's Day. (2013). Agriculture in Ethiopia is the foundation of the country's economy, accounting for half of gross domestic product (GDP), 83.9% of exports, and 80% of total employment. Peasant associations often were periodically compelled to redistribute land to accommodate young families or new households moving into their area. 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. A couple of U.S. investors have also entered the market. 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. Contract farming, cluster approach and land consolidation, Horticulture (irrigation and urban farming), Climate resilient sustainable agricultural development. About three-quarters of the total sheep flock is in the highlands, whereas lowland pastoralists maintain about three-quarters of the goat herd. This is a best prospect industry sector for this country. Principal crops include coffee, pulses (e.g., beans), oilseeds, cereals, potatoes, sugarcane, and vegetables. 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. 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. Jorge Morales Pedraza. Please help update this article to reflect recent events or newly available information. Niger seed is found mostly in the northern and central highlands at elevations between 1,800 and 2,500 meters. In the late nineteenth century, about 30% of Ethiopia was covered with forest. Crop and Livestock Product Utilization (Private Peasant Holdings . The Homegrown economic reform plan identified structural and institutional bottlenecks affecting the agricultural sector in Ethiopia. [7], Imperial government policy permitting investors to import fertilizers, pesticides, tractors and combines, and (until 1973) fuel free of import duties encouraged the rapid expansion of large-scale commercial farming. Merkebu Getachew. Ethiopias commercial red meat (beef, mutton and goat) industry has made remarkable progress to date and shows considerable growth potential for the future. The amount of coffee inspected in the fiscal year 20072008 by the Ethiopian Coffee and Tea Authority (ECTA) was 230,247 tons, a decrease of almost 3% from the previous fiscal year's total of 236,714 tons. The increased production coming from existing and anticipated investments in the local agro-processing sector, as well as imports, are expected to help satisfy this growing demand. Food as a most essential good 3 2.5. First, the recurring droughts had devastated the country's main areas where pulses and oilseeds were grown. 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.
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