According to the Economist Intelligence Unit (EIU), Ethiopia's GDP growth rate will increase by around 7.8% to 10% by 2023. UNJP-RWEE was a five-year long initiative with the objective of accelerating the economic empowerment of rural women . <i>Objective</i>. Fresh fruits, including citrus and bananas, as well as fresh and frozen vegetables, became important export items, but their profitability was marginal. In the late nineteenth century, about 30% of Ethiopia was covered with forest. The Central Statistical Agency of Ethiopia (CSA) is responsible for the statistical data generation related to the socio-economic condition of the country. 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. [12], In addition to smaller productions of other agricultural products.[13]. [19][20], Sorghum, millet, and corn are cultivated mostly in warmer areas at lower altitudes along the country's western, southwestern, and eastern peripheries. Due to physical, economic and social factors the. Recently, the GOE has permitted imports of basic food commodities using franco-valuta scheme to narrow supply and demand gap and reduce rising inflation in the country. 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. [23], However, herding cattle is one of the agricultural activities that resorts to indentured labor and particularly child labor according to the U.S. Department of Labor. Volume II, Report on Livestock and Livestock Characteristics. The agricultural sector is subject to periodic drought, and poor infrastructure constrains the production and marketing of Ethiopia's products. [27], Poultry farming is widely practiced in Ethiopia; almost every farmstead keeps some poultry for consumption and for cash sale. For northwest and central Ethiopia, fertilizer usage determinants are estimated simultaneously with technology-specific production functions. Ethiopian farmers plough their land by combining the above tools for such three months to get yearly consumed food. During this period, markets were major actors of economic activity and various positive measures, which encouraged . [30] These tools includes sickle, pick axe, plough shaft, ploughshare, plow, beam and animal force as a machines. 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. 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. Supply and demand characteristics 2 2.3. 133 8.5.2. In fact, Ethiopia recently started importing chicken meat from Ukraine and Brazil. "Agriculture" (and subsections), updated with latest figures from the CSA. Share sensitive information only on official, secure websites. 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. In addition, the ten-year development plan aims at boosting agricultural export revenues and substituting imports by reducing production costs. Commercial agriculture using the river basins, such as the Awash Basin, is a recent phenomenon. 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. [2][3][4] Many other economic activities depend on agriculture, including marketing, processing, and export of agricultural products. [11], Another major component of the Derg's agricultural policy was the development of large-scale state farms. 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. Lake Tana Subbasin's Economy and The Role of Natural Resources -- 22. 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. Agro-processing, such as beverages, biscuits, bread, milk, meat, chicken, cooking oil, fruit and vegetables, etc. [7], Wheat stem rust threatens the Ethiopian harvest every year and recently that especially means Ug99. Peasant associations often were periodically compelled to redistribute land to accommodate young families or new households moving into their area. As a result, agriculture continued to grow, albeit below the population growth rate. 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. The highest concentration of poultry is in Shewa, in central Wollo, and in northwestern Tigray. 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. "National Statistical Abstract. 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. 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. 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. Overall, the economic reform plan sets out required strategic interventions to increase agricultural productivity and modernization of agriculture in the next 10 years. ", Table D.2. The objective of the LSMS-ISA is to collect multi-topic panel household level data with a special focus on improving agriculture statistics and the link between . 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. will supply the domestic market. For the later two Regions, estimated numbers vary greatly between conventional and aerial censuses, but total less than 15% of the non-nomadic Regions. One way the government is hoping to improve cotton yields is with Genetically Engineered (GE) cotton. By African, standard rural development programme has long history in Ethiopia. Milk and dairy processing, and supporting equipment and systems. Niger seed is found mostly in the northern and central highlands at elevations between 1,800 and 2,500 meters. Almost all farming tools in Ethiopia are traditional and made from different types of wood. Where the topography permits, they are suitable for farming. 3. Ethiopia is also Africa's second biggest maize producer. Among the popular games on the grasslands, football (introduced via schools) tends to replace the traditional qarsa game. Agro-processing equipment (e.g. landholdings are tiny, fragmented and unsuitable for modern methods of agriculture. Furthermore, the ten-year plan envisages to build a climate resilient green economy. agriculture, poverty and illiteracy are important causes of land and environmental degradation in Ethiopia. Contract farming, cluster approach and land consolidation, Horticulture (irrigation and urban farming), Climate resilient sustainable agricultural development. Potential niche market for wheat and soybean exports. In Ethiopia, agricultural export development is done in livestock, grains, vegetables, fruits, and fruits. Area, Production and Farm Management Practices (Private Peasant Holdings, Belg Season) 2020/2021 (2013 E.C.) It purchased grain from peasant associations at fixed prices. Agriculture. Land use function 2 2.2. Production jumped from 43,500 tons in 197475 to 74,900 tons in 198485. According to CSA (2015) report, cereals . [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. 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. Grains - Grains are the most important field crops and the main element in the diet of most Ethiopians. Because most of the lowlands lack adequate rainfall, cotton cultivation depends largely on irrigation. [7], Pulses are the second most important element in the national diet and a principal protein source. 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. However, it is also one of the poorest, with a per capita gross national income of $960. Domestically, coffee contributed about 20% of the government's revenue. [6] Ethiopia has great agricultural potential because of its vast areas of fertile land, diverse climate, generally adequate rainfall, and large labor pool. Much of the food deficit was covered through food aid. The agriculture sector is projected to grow at 6.2% per annum over the next ten years. . In Wollo Province, for example, there were an estimated 111 types of land tenure. Ethiopia's crop agriculture is complex, involving substantial variation in crops grown across the country's different regions and ecologies. Brighter Green, 6. Some of the land targeted for commercial development is considered marginal, prone to conflict, and/or has limited access to water. Ethiopia is home to one of the largest livestock populations in Africa. 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. Includes a market overview and trade data. However, despite substantial investments and subsidies, State Farms provided only 4.2% of the cereal production in 198889. Primarily, growth in the market should reach 8.1 percent per year during this time frame. As many as 4.6 million people need food assistance annually. [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. The main objective of this review is to indicate the policy gaps in terms of access . "National Statistical Abstract. The principal grains are teff, wheat, barley, corn, sorghum, and millet. Ethiopias current level of wheat and soybean production is insufficient to satisfy domestic demand. Common vegetables include onions, peppers, squash, and a cabbage similar to kale. These types of soils are found in much of the Southern Nations, Nationalities, and People's Region (SNNPR). Grain is an essential part of the Ethiopian diet. Secure .gov websites use HTTPS During the same period (197387), population increased at an average annual rate of 2.6 percent (2.4 percent for 198087). The northern parts of the highlands are almost devoid of trees. The sunrise marks the beginning of the day and the sunset marks the end of the day. [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. The vision of the CSA is to be a center of excellence in . Opportunities also exist for agricultural inputs and systems used to grow and process cotton into textile and apparel. [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. In this regard, the CSA conducts, produces, disseminates and administers data generated from surveys and censuses in Ethiopia. [23], Ethiopia has great potential for increased livestock production, both for local use and for export. The Ethiopian Government set up the Growth and Transformation Plan (GTP) to reach certain goals between 2011 and 2015. Since the 2000s, Ethiopia has emerged as one of the fastest-growing economies in Africa. In the same fiscal year, 707,059.29 hectares under cultivation produced 6,169,279.99 quintals of oilseeds, an increase from the previous year of 4,970,839.57 quintals grown on 741,790.98 hectares. 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 . Agriculture is defined as the purposeful tending of animals and plants.It provides: basic food supplies for the population; raw materials like cotton, sugar cane, oil seeds, etc. Matou, P., Y. Todo, et al. 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. [9], The population in the lowland peripheries (below 1,500 meters) is nomadic, engaged mainly in livestock raising. 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. The GOE has approved two different varieties of Bt cottonseeds for commercial cultivation. To meet its agro-processing objectives, the GOE is building Integrated Agro-Industrial Parks (IAIP) in four pilot areas: Amhara, Oromia, SNNP, and Tigray regional states. The second type consists of brownish-to-gray and black soils with a high clay content. 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. Please see below for the market overview and trade data. 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. Five major cereals (teff, wheat, maize, sorghum and barley) are the core of Ethiopia's agriculture and food economy, accounting for about [14], The most important cash crop in Ethiopia was coffee. The mixed agriculture exhibits several subsystems. A couple of U.S. investors have also entered the market. 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). In addition to red meat, there are emerging opportunities in chicken, egg, and dairy production and processing. These soils are found in both the northern and the southern highlands in areas with poor drainage. Some estimates indicated that yields on peasant farms were higher than those on state farms. 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. Source: Source: USDA/Foreign Agriculture Service, Addis Ababa, Total Market Size = (Total Local Production + Total Imports) (Total Exports). As the economy grows and the population expands, consumer demand for certain types of foods is expected to increase. For instance, in the case of seed, the current varieties are more than 20 years old and are degraded. Agro-processed products, such as chicken, cheese, butter, eggs, biscuits, bread, juice, etc. 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. [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. 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. Potato is an increasingly important crop in Ethiopia, but the origin of local cultivars grown throughout the country is unknown. Jorge Morales Pedraza. Brighter Green, 2. Three factors contributed to the decline in the relative importance of pulses and oilseeds. The study aimed to characterize the reproductive performances and physical characteristics of Blackhead Somali indigenous sheep breeds. The directorates goal is to increase productivity, employment, technology transfer, and foreign exchange reserves by attracting investors with incentives and favorable land lease terms. @article{Haile1988CausesAC, title={Causes and Characteristics of Drought in Ethiopia. This modest increase, however, was not enough to offset a general decrease in GDP during the same period. 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. APDF readeris available from Adobe Systems Incorporated. [7], Ensete, known locally as false banana, is an important food source in Ethiopia's southern and southwestern highlands. In Ethiopia's lowlands, for example, the presence of malaria kept farmers from settling in many areas. 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). 27 May 2021. [10], Until the 1974 revolution, Ethiopia had a complex land tenure system, which some have described as feudal. Food production had consistently declined throughout the 1980s. Meat and poultry processing, and supporting equipment and systems. The opportunities and constraints facing Ethiopian agriculture are strongly influenced by conditions which vary across geographical space. [7], Agricultural productivity under the Derg continued to decline. Meat and milk yields are low and losses high, especially among calves and young stock. Although the AMC had agents in all regions, it was particularly active in the major cereal producing regions, namely, Gojjam, Shewa, Arsi, and Gondar. Investments in cotton production, as well as any other agricultural commodity, require considerable due diligence because of a variety of complicated issues, including landownership rights and the potential for conflict. Local demand for meat, milk and eggs is growing as the economy and population grow. This article is the second in a series that seek to examine the role of agriculture as a developmental opportunity for Africa. The country intends to be a middle-income economy by 2025. 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. [7], The plains and low foothills west of the highlands have sandy and gray-to-black clay soils. With the support of the IMF, the Ethiopian government has developed an ambitious Homegrown Economic Reform Planto propel the countrys economic progress. Agriculture as a producer of positive externalities and public goods 2 2.4. 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. The government mobilized farmers and organized "food for work" projects to build terraces and plant trees. 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. They are boiled, roasted, or included in a stew-like dish known as wot, which is sometimes a main dish and sometimes a supplementary food. Blue Nile makes about 80% by volume of the Great Nile River. Ethiopia is endowed with abundant agricultural resources and has diverse agro-ecological zones. Exports are almost entirely agricultural commodities, and coffee is the largest foreign exchange earner. This is a best prospect industry sector for this country. [7], Ethiopia's estimated livestock population is often said to be the largest in Africa. In pastoral areas, livestock formed the basis of the economy. Years of bi-directional causality were found between agriculture and manufacturing and services sectors before 1975. 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. Farm Management Practices (Private Peasant Holdings, Meher Season) 2020/21 (2013 E.C.) Pulses, grown widely at all altitudes from sea level to about 3,000 meters, are more prevalent in the northern and central highlands. [7], Livestock production plays an important role in Ethiopia's economy. Of the 25 World Reference Base/FAO soil orders, 17 exist in Ethiopia. ", 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. [17], Although varying from region to region, the role of livestock in the Ethiopian economy was greater than the figures suggest. 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 . Source: United Nations Comtrade. According to government statistics, there are approximately 50 million cattle, 50 million goats and sheep, plus an assortment of horses, donkeys, camels and chickens. Ethiopias commercial red meat (beef, mutton and goat) industry has made remarkable progress to date and shows considerable growth potential for the future. [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.". Both animals have high sales value in urban centers, particularly during holidays such as Easter and New Year's Day. The powers and duties of the MoA include: conservation and use of forest and wildlife resources, food security, water use and small-scale irrigation, monitoring events affecting agricultural development and early warning system . Ethiopia's major staple crops include a variety of cereals, pulses, oilseeds, and coffee. Despite this potential, however, Ethiopian agriculture has remained underdeveloped. Agriculture in Ethiopia. Consequently, individual holdings were frequently far smaller than the permitted maximum allotment of ten hectares. "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. Ethiopia Socioeconomic Survey Wave3, 2015-2016. Sandy desert soils cover much of the arid lowlands in the northeast and in the Ogaden of southeastern Ethiopia. Ethiopia aims to reach lower-middle-income status by 2025. Ethiopia has an extremely diverse topography, climate, culture, population distribution and market access. Potential opportunities exist for sales of U.S. livestock genetics and chicken meat.