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. Tenant farmers in southern Ethiopia, where the average tenancy was as high as 55% and rural elites exploited farmers, welcomed the land reform. Recurring drought takes a heavy toll on the animal population, although it is difficult to determine the extent of losses. Agriculture is the country's most promising resource management. Almost all farming tools in Ethiopia are traditional and made from different types of wood. State farms sold their output to the AMC. The GOE encourages investments in meat processing, especially those that are focused on exporting value-added products abroad. Agricultural products account for . One way the government is hoping to improve cotton yields is with Genetically Engineered (GE) cotton. For this reason, some environmental experts maintain that large-scale conservation work in Ethiopia has been ineffective. Agro-processed products, such as chicken, cheese, butter, eggs, biscuits, bread, juice, etc. Oilseeds of lesser significance include castor beans, rapeseed, peanuts, and safflower and sunflower seeds. Barley is grown mostly between 2,000 and 3,500 meters. Ethiopias development plan has laid out enhancing agricultural production and productivity as one of the major strategic pillars. 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. 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. The market for agriculture in Ethiopia is projected to register a CAGR of 5.4% during the forecast period, 2021-2026). Agriculture is the mainstay of the economy. landholdings are tiny, fragmented and unsuitable for modern methods of agriculture. 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. Additionally, camels provide pastoralists in those areas with milk and meat. Ethiopian farmers plough their land by combining the above tools for such three months to get yearly consumed food. The Ethiopian Herald (Addis Ababa) Urban agriculture utilizes resources such as land that have high demand for other urban uses . In order to address the ongoing drought, the GOE is renewing its emphasis on developing the countrys irrigation systems and water-harvesting methodologies. That is why per hectare yield of crop is . As the economy grows and the population expands, consumer demand for certain types of foods is expected to increase. 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. 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. The vision of the CSA is to be a center of excellence in . Yet, information regarding its extent, distribution, causes, and lime requirement at a scale relevant to subsistence farming systems is still lacking. Title. Barley is cultivated mostly between 2,000 and 3,500 meters in Ethiopia. The poor performance of agriculture was related to several factors, including drought; a government policy of controlling prices and the free movement of agricultural products from surplus to deficit areas; the unstable political climate; the dislocation of the rural community caused by resettlement, villagization, and conscription of young farmers to meet military obligations; land tenure difficulties and the problem of land fragmentation; the lack of resources such as farm equipment, better seeds, and fertilizers; and the overall low level of technology. Ethiopia has considerable potential for producing cotton. The Awash River basin supports many large-scale commercial farms and several irrigated small farms. 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. Ethiopias cotton production is insufficient to meet the growing demand from the textile and apparel sector. Ethiopia Socioeconomic Survey Wave2, 2013-2014. 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. Regional Agricultural Research Centers (RARCs) under the respective regional bureaus of agriculture. D. espite the countr. Washington, DC 20230. For the foreseeable future, the demand for cotton is expected to outstrip local supplies, making imports necessary. 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]. 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. Private companies are allowed to import food commodities including wheat, rice, sugar, powder milk, and cooking oils. Overview. 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. Local demand for meat, milk and eggs is growing as the economy and population grow. However, the expected level was not achieved. Flaxseed, also indigenous, is cultivated in the same general area as Niger seed. With the support of the IMF, the Ethiopian government has developed an ambitious Homegrown Economic Reform Planto propel the countrys economic progress. According to the World Bank, agricultural production increased at an average annual rate of 0.6 percent between 1973 and 1980 but then decreased at an average annual rate of 2.1 percent between 1980 and 1987. Increased production as well as imports are required to close this gap. [7], President Mengistu's 1990 decision to allow free movement of goods, to lift price controls, and to provide farmers with security of tenure was designed to reverse the decline in Ethiopia's agricultural sector. [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 GOE has approved two different varieties of Bt cottonseeds for commercial cultivation. Farm Management Practices (Private Peasant Holdings, Meher Season) 2020/21 (2013 E.C.) However, information is lacking in Wolaita, Southern Ethiopia. Agriculture in Ethiopia. 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. These activities have contributed to higher yields and increased production of both crops and livestock. The Homegrown economic reform plan identified structural and institutional bottlenecks affecting the agricultural sector in Ethiopia. In addition to red meat, there are emerging opportunities in chicken, egg, and dairy production and processing. Domestically, coffee contributed about 20% of the government's revenue. Download. In Ethiopia 95% of the total area is cultivated by smallholder farmers and contribute 90% of the total agricultural output. Three factors contributed to the decline in the relative importance of pulses and oilseeds. Agro-processing, such as beverages, biscuits, bread, milk, meat, chicken, cooking oil, fruit and vegetables, etc. Researchers found however that, since transhumance takes place in summer, during school holidays, the transhumance in itself does not affect schooling. 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. 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. As a result, up to 200,000 Ethiopians perished. 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. juice processing, milling machines, extruders for soybean oil). [7], Before the Ethiopian Revolution, pulses and oilseeds played an important role, second only to coffee, in the country's exports. 27 May 2021. Over the centuries, deforestation, overgrazing, and practices such as cultivation of slopes not suited to agriculture have eroded the soil, a situation that worsened considerably during the 1970s and 1980s, especially in Eritrea, Tigray, and parts of Gondar and Wollo. Background and Objective: Detailed characterization of bio-physical resources in agricultural landscapes and documenting locally used soil fertility management practices is required for developing site-specific management scenarios in the study area. This includes: bolstering smallholder farmers productivity, enhancing marketing systems, upgrading participation of private sector, increasing volume of irrigated land and curtailing amount of households with inadequate food. Ethiopia's major staple crops include a variety of cereals, pulses, oilseeds, and coffee. Primarily, growth in the market should reach 8.1 percent per year during this time frame. Because most of the lowlands lack adequate rainfall, cotton cultivation depends largely on irrigation. The relationship between elevation, soil temperatures, soil chemical characteristics, and green coffee bean quality and biochemistry in southwest Ethiopia. More background information on the cotton situation in Ethiopia can be found in our cotton report from 2019/20. The Tendaho Cotton Plantation in the lower Awash Valley was one of Ethiopia's largest cotton plantations. (2013). [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. processed food, beverages, and livestock products meat, milk, and eggs), as well as the textile/apparel and leather industries. For northwest and central Ethiopia, fertilizer usage determinants are estimated simultaneously with technology-specific production functions. Among the popular games on the grasslands, football (introduced via schools) tends to replace the traditional qarsa game. Please see below for the market overview and trade data. The contributions of agriculture in Ethiopia. Source: Source: USDA/Foreign Agriculture Service, Addis Ababa, Total Market Size = (Total Local Production + Total Imports) (Total Exports). For instance, in the case of seed, the current varieties are more than 20 years old and are degraded. However, despite substantial investments and subsidies, State Farms provided only 4.2% of the cereal production in 198889. [7], Historically, Ethiopia was a rare exception in Sub-Saharan Africa, because of its special environmental circumstances, that enabled Ethiopian farmers to increase their productivity, for example by using ploughs. 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). Mia MacDonald and Justine Simon (2010) Climate, Food Security, & Growth: Ethiopia's Complex Relationship with Livestock. Land ownership is also a complicating factor. In 1971 the Ministry of Agriculture introduced the Minimum Package Program (MPP) to bring about economic and social changes. Despite this potential, however, Ethiopian agriculture has remained underdeveloped. During this period, markets were major actors of economic activity and various positive measures, which encouraged . The Ethiopian Government set up the Growth and Transformation Plan (GTP) to reach certain goals between 2011 and 2015. The principal grains in Ethiopia are Teff, Wheat, Barley, Corn, Sorghum, and Millet. Ethiopia is home to one of the largest livestock populations in Africa. Both animals have high sales value in urban centers, particularly during holidays such as Easter and New Year's Day. Most of these crops are exported to generate foreign exchange. "Roles of extension and ethno-religious networks in acceptance of resource-conserving agriculture among Ethiopian farmers." Top 3 Trade Partners (2021): China, India, and United States. Agriculture in the Lake Tana Sub-Basin of Ethiopia -- 24. Of the 25 World Reference Base/FAO soil orders, 17 exist in Ethiopia. Brighter Green, 2. Overall, the economic reform plan sets out required strategic interventions to increase agricultural productivity and modernization of agriculture in the next 10 years. Potato is an increasingly important crop in Ethiopia, but the origin of local cultivars grown throughout the country is unknown. In 198182, out of the AMC's purchases of 257,000 tons of grain, Gojjam accounted for 32 percent of the purchases, and Arsi, Shewa, and Gonder accounted for 23%, 22%, and 10%, respectively. In the dry lowlands, persistent winds also contribute to soil erosion. 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. Production jumped from 43,500 tons in 197475 to 74,900 tons in 198485. Grains - Grains are the most important field crops and the main element in the diet of most Ethiopians. Agriculture. Demand for vegetables has stimulated truck farming around the main urban areas such as Addis Ababa and Asmera. Ethiopia's major industries include agriculture, construction, manufacturing, resources and . 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. 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. [19][20], Sorghum, millet, and corn are cultivated mostly in warmer areas at lower altitudes along the country's western, southwestern, and eastern peripheries. The sunrise marks the beginning of the day and the sunset marks the end of the day. Section D. Ethiopia aims to reach lower-middle-income status by 2025. 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. [7], The consumption of vegetables and fruits is relatively limited, largely because of their high cost. in addition to these cereals, they produce different types of fruits and coffee which are not seasonal. 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. A .gov website belongs to an official government organization in the United States. "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. Consequently, individual holdings were frequently far smaller than the permitted maximum allotment of ten hectares. In addition, the ten-year development plan aims at boosting agricultural export revenues and substituting imports by reducing production costs. The country intends to be a middle-income economy by 2025. Explain the main contribution, potentials, characteristics , and problems of Ethiopian agriculture. The agricultural sector is subject to periodic drought, and poor infrastructure constrains the production and marketing of Ethiopia's products. 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 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. 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. The government nationalized rural land without compensation, abolished tenancy, forbade the hiring of wage labor on private farms, ordered all commercial farms to remain under state control, and granted each peasant family so-called "possessing rights" to a plot of land not to exceed ten hectares. Contract farming, cluster approach and land consolidation, Horticulture (irrigation and urban farming), Climate resilient sustainable agricultural development. ", 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. 133 8.5.2. After 1975 the revolutionary government used peasant associations to accelerate conservation work throughout rural areas. Private traders and the Agricultural Marketing Corporation (AMC), established in 1976, marketed Ethiopia's agricultural output. According to the World Bank, agricultural production increased at an average annual rate of 2.1 percent between 1965 and 1973, while population increased at an average annual rate of 2.6 percent during the same period. 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. 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. Cookies on OCLC websites. 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. In the case of the textile and apparel sector, a shortage of locally-produced cotton suggests a need for cotton imports, including from the United States. Ethiopia's crop agriculture is complex, involving substantial variation in crops grown across the country's different regions and ecologies. During the rainy seasons, water and grass are generally plentiful, but with the onset of the dry season, forage is generally insufficient to keep animals nourished and able to resist disease. With the GOE looking to partially liberalize the wheat import market, local millers are beginning to explore opportunities to import wheat directly. In addition to wheat, the demand for oilseeds, such as soybeans and Niger seed, is expected to grow as Ethiopias demand for both cooking oil and livestock feed increases. 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. The main objective of this review is to indicate the policy gaps in terms of access . Note: Top 3 trade partners are calculated by imports + exports. 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. Develop a legal framework for agriculture-specific financial services such as micro-lending, crop insurance and forward contracts. Agriculture is the backbone of the economy of the country as the following facts indicate. Agriculture is the backbone of the economy of the country as the following facts indicate. Ethiopia has an extremely diverse topography, climate, culture, population distribution and market access. 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. "National Statistical Abstract. Food as a most essential good 3 2.5. Nonetheless, agricultural output rose by an estimated 3 percent in 199091, almost certainly in response to the relaxation of government regulation. In chtse area intensive farming is carried on in limited. Production Efficiency and Agricultural Technologies in the Ethiopian Agriculture Introduction Inability to produce adequate food is the major problem of most less developed countries (LDCS). [6] Ethiopia has great agricultural potential because of its vast areas of fertile land, diverse climate, generally adequate rainfall, and large labor pool. Their resistance to this change increased when Zemecha members campaigned for collectivization of land and oxen. Firstly, various policies that discouraged private sector participation in economic activity were implemented during the socialist era (between 1978 and 1992). 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. Commercial Imports from the United States, Source: USDA/Foreign Agriculture Service, Addis Ababa, (Total market size = (total local production + imports) - exports). Section D. Causes and Characteristics of Drought in Ethiopia. . [7], As of 2008[update], some countries that import most of their food, such as Saudi Arabia, had begun planning the development of large tracts of arable land in developing countries such as Ethiopia. The GOE imposes an export ban on cereal grain and local prices are often higher than what they are on the international market. The existence of so many land tenure systems, coupled with the lack of reliable data, made it difficult to give a comprehensive assessment of landownership in Ethiopia, as well as depressed the ability of peasants to improve themselves. SPECIFIC CHARACTERISTICS OF AGRICULTURE 2 2.1. [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. [7], Of Ethiopia's total land area of 1,221,480 square kilometers, the government estimated in the late 1980s that 15 percent was under cultivation and 51 percent was pasture. [12], In addition to smaller productions of other agricultural products.[13]. 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. 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 . [15], About 98 percent of the coffee was produced by peasants on smallholdings of less than a hectare, and the remaining 2 percent was produced by state farms. Livestock and Livestock Characteristics (Private Peasant Holdings) 2020/2021 (2013 E.C.) Farmers' group formation accompanies the reform process. Blue Nile makes about 80% by volume of the Great Nile River. 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). Peasant associations often were periodically compelled to redistribute land to accommodate young families or new households moving into their area. Young herders take their text books of the upcoming school year to the grazing grounds. The Blue Nile River. The Government of Ethiopia (GOE) has identified key priority intervention areas to increase productivity of smallholder farms and expand large-scale commercial farms. 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]. This modest increase, however, was not enough to offset a general decrease in GDP during the same period. Exports are almost entirely agricultural commodities, and coffee is the largest foreign exchange earner. Agriculture. 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. [7], Ethiopia's coffee is almost exclusively of the arabica type, which grows best at altitudes between 1,000 and 2,000 meters. fruit crops, stimulant crops and sugar cane are cultivated by farmers and other agricultural sectors in Ethiopia. The contribution of agriculture to growth in the manufacturing and services sectors was not significant between 1978 and 1998. With about 117 million people (2021), Ethiopia is the second most populous nation in Africa after Nigeria, and still the fastest growing economy in the region, with 6.3% growth in FY2020/21. 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. Abstract The objective of this study was to perform causality tests between agriculture and the rest of the economy using a Granger (1969) causality test procedure. 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. Where the topography permits, they are suitable for farming. 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. Agriculture is one of the best prospect sectors for growth in Ethiopia. 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. After the 1975 land reform, peasants began withholding grain from the market to drive up prices because government price-control measures had created shortages of consumer items. 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. Nevertheless, Ethiopia's manufacturing sector is still far from being the engine of growth and structural change. 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 agriculture sector is projected to grow at 6.2% per annum over the next ten years. Includes a market overview and trade data. Please see below a summary of agricultural focus areas and objectives laid out in Ethiopias ten-year economic development plan (2021-2030). 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.

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