Agriculture accounts for 36% percent of the nation's Gross domestic Product (GDP) as of 2020. 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. Fresh fruits, including citrus and bananas, as well as fresh and frozen vegetables, became important export items, but their profitability was marginal. As a result, up to 200,000 Ethiopians perished. [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. 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. Grain production is one of the most important sub-sectors in the countrys agriculture-based economy. In the dry lowlands, persistent winds also contribute to soil erosion. [27], Most of the estimated 7.5 million equines (horses, mules, and donkeys) are used to transport produce and other agricultural goods. This can be attributed to two factors. ", Table D.1.1, "The Federal Democratic Republic of Ethiopia: Statistical Appendix", p. 26. juice processing, milling machines, extruders for soybean oil). The government mobilized farmers and organized "food for work" projects to build terraces and plant trees. These soils are found in both the northern and the southern highlands in areas with poor drainage. 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 Awash River basin supports many large-scale commercial farms and several irrigated small farms. Tenant farmers in southern Ethiopia, where the average tenancy was as high as 55% and rural elites exploited farmers, welcomed the land reform. For instance, in the case of seed, the current varieties are more than 20 years old and are degraded. 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. The process meant not only smaller farms but also the fragmentation of holdings, which were often scattered into small plots to give families land of comparable quality. Washington, DC 20230. There are opportunities to process livestock products for both local and export markets. Crop and Livestock Product Utilization (Private Peasant Holdings . [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. "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. Ensete flour constitutes the staple food of the local people. J. Households spend an average of 40% of their total food budget on cereals. Agricultural products account for more than 90 percent of the foreign exchange earnings of the country . In order to reduce the severity of this problem, several agricultural development strategies have been implemented since the 1960's. @article{Haile1988CausesAC, title={Causes and Characteristics of Drought in Ethiopia. [9], The population in the lowland peripheries (below 1,500 meters) is nomadic, engaged mainly in livestock raising. Food as a most essential good 3 2.5. Agriculture dominates the Ethiopian economy, accounting for about 50 percent of its GDP and 82 percent of its employment. Furthermore, the ten-year plan envisages to build a climate resilient green economy. Local demand for meat, milk and eggs is growing as the economy and population grow. [21] It is estimated to number over 150 million in 20072008. 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]. Productivity and technology. Meat and poultry processing, and supporting equipment and systems. In 1971 the Ministry of Agriculture introduced the Minimum Package Program (MPP) to bring about economic and social changes. [7], The plains and low foothills west of the highlands have sandy and gray-to-black clay soils. 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. The government and the international community are working together to address many of these challenges. But with proper drainage and conditioning, these soils have excellent agricultural potential. In addition, the GOE is looking to the agro-processing sector (also a best prospect sector detailed below) as one engine to spur future economic growth. [7], Ethiopia's coffee is almost exclusively of the arabica type, which grows best at altitudes between 1,000 and 2,000 meters. 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. Agriculture in Ethiopia. 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. 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. 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. Note: Top 3 trade partners are calculated by imports + exports. Land Utilization (Private Peasant Holdings, Meher Season) 2020/21 (2013 E.C.) SPECIFIC CHARACTERISTICS OF AGRICULTURE 2 2.1. Agriculture is the country's most promising resource management. Per capita meat consumption was high by developing countries' standards, an estimated thirteen kilograms annually. 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. By 1990 the state had begun to develop large poultry farms, mostly around Addis Ababa, to supply hotels and government institutions. Ethiopia aims to reach lower-middle-income status by 2025. To examine the current situation on the use of agricultural technologies by . Niger seed is found mostly in the northern and central highlands at elevations between 1,800 and 2,500 meters. Agriculture accounted for 50% of GDP, 83.9% of exports, and 80% of the labor force in 2006 and 2007, compared to 44.9%, 76.9% and 80% in 20022003, and agriculture remains the Ethiopian economy's most important sector. Ethiopia Socioeconomic Survey Wave1, 2011-2012. 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. <i>Results . Ethiopia's major industries include agriculture, construction, manufacturing, resources and . Major Rivers of Ethiopia Water resources. Top 3 Trade Partners (2021): China, India, and United States. Firstly, various policies that discouraged private sector participation in economic activity were implemented during the socialist era (between 1978 and 1992). 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 relationship between elevation, soil temperatures, soil chemical characteristics, and green coffee bean quality and biochemistry in southwest Ethiopia. As a result, agriculture continued to grow, albeit below the population growth rate. Develop a legal framework for agriculture-specific financial services such as micro-lending, crop insurance and forward contracts. 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. 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. There is a functional relationship between the use of ove. These figures varied from those provided by the World Bank, which estimated that cropland, pasture, and forestland accounted for 13%, 41%, and 25%, respectively, of the total land area in 1987. The directorates goal is to increase productivity, employment, technology transfer, and foreign exchange reserves by attracting investors with incentives and favorable land lease terms. 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. [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. D. espite the countr. In Ethiopia 95% of the total area is cultivated by smallholder farmers and contribute 90% of the total agricultural output. 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. However, beginning in 1987 the decline in world coffee prices, reduced Ethiopia's foreign-exchange earnings. The most important agricultural exports include coffee, hides and skins (leather products), Pulses, oil seeds, beeswax, and, increasingly, tea. Oilseeds of lesser significance include castor beans, rapeseed, peanuts, and safflower and sunflower seeds. Section D. Ethiopia sources cotton mainly from India and other international suppliers. Ethiopia is home to one of the largest livestock populations in Africa. 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. Ethiopian farmers plough their land by combining the above tools for such three months to get yearly consumed food. Ethiopia's economy is based on agriculture, which accounts for 46% of GDP and 85% of total employment. 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. A Review of Ethiopian Agriculture Roles Policy and Small Scale Farming . More details on the latest grain and oilseeds situation in Ethiopia can be found in our Grain & Feed and our Oilseeds Reports. [17], Ethiopia's flower industry has become a new source for export revenue. 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. Agron., 16: 180-195. . [7], Ensete, known locally as false banana, is an important food source in Ethiopia's southern and southwestern highlands. This is a best prospect industry sector for this country. Sandy desert soils cover much of the arid lowlands in the northeast and in the Ogaden of southeastern Ethiopia. In Ethiopia's lowlands, for example, the presence of malaria kept farmers from settling in many areas. Agriculture is one of the best prospect sectors for growth in Ethiopia. Yet agriculture is the country's most promising resource. Volume II, Report on Livestock and Livestock Characteristics. U.S. Department of Commerce The Blue Nile from Ethiopia originating form Lake Tana and the White Nile that originated form Lake Victoria merge into the Great Nile River at Khartoum, the Sudan capital to form the longest river of the world draining to the Mediterranean Sea.The Blue Nile Falls is one . For this to happen, the government will need to guarantee sufficient allocations of foreign exchange. Merkebu Getachew. 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). 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. Causes and Characteristics of Drought in Ethiopia. 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. The Blue Nile River. [7], Cattle in Ethiopia are almost entirely of the zebu type and are poor sources of milk and meat. 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. [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. >. [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. Resultantly there has been significant uptake of resistant wheat varieties among Ethiopian farmers since 2014. 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. 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. agriculture, poverty and illiteracy are important causes of land and environmental degradation in Ethiopia. As the textile and apparel industry grows, there will likely be more opportunities for U.S. cotton sales. fINTENSIVE FARMING. 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. Challenges of Agricultural Production and Productivity in Ethiopia. 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 market is segmented by type into food crops, fruits, and vegetables. 27 May 2021. The GOE imposes an export ban on cereal grain and local prices are often higher than what they are on the international market. 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. More background information on the cotton situation in Ethiopia can be found in our cotton report from 2019/20. According to CSA (2015) report, cereals . [7], Ethiopia's estimated livestock population is often said to be the largest in Africa. 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. Source: Source: USDA/Foreign Agriculture Service, Addis Ababa, Total Market Size = (Total Local Production + Total Imports) (Total Exports). Public Communication Directorate Tel: +251-116-454441 Fax:+251-116-461294/465412 E-Mail:eiar@eiar.gov.et P.O.Box: 2003 Addis Ababa Ethiopia , Designed & Developed By Yonas T/birhan In Ethiopia, agricultural export development is done in livestock, grains, vegetables, fruits, and fruits. Ethiopia is home to abundant livestock resources. By 1989, the area covered by the State Farms had grown to a total of 220,000 hectares. The country intends to be a middle-income economy by 2025. Private companies are allowed to import food commodities including wheat, rice, sugar, powder milk, and cooking oils. Official websites use .gov 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. Individual poultry farms supply eggs and meat to urban dwellers. Agriculture is the mainstay of the economy. Agriculture. A couple of U.S. investors have also entered the market. 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. Grains - Grains are the most important field crops and the main element in the diet of most Ethiopians. Share sensitive information only on official, secure websites. In addition to its domestic use, sesame is also the principal export oilseed. 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 . Agricultural equipment and systems, such as tractors, irrigation equipment, and grain handling Infrastructure like, silos, cold storage facilities, etc. 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 . Agriculture accounts for most of (30-42%)t of the Gross Domestic Product (GDP) of the country. 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. Supply and demand characteristics 2 2.3. Barley is grown mostly between 2,000 and 3,500 meters. The GOE is focusing on expanding chicken meat production in order to reduce the countrys longstanding dependence on the livestock sector, minimize the sectors environmental footprint, and provide more affordable protein to the masses. 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. 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. 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. [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. (2013). [11], Another major component of the Derg's agricultural policy was the development of large-scale state farms. UNJP-RWEE was a five-year long initiative with the objective of accelerating the economic empowerment of rural women . Private . Another study, of Dejen awraja (subregion) in Gojjam, found that land fragmentation had been exacerbated since the revolution. The Ministry of Agriculture (MoA) is the Ethiopian government ministry which oversees the agricultural and rural development policies of Ethiopia on a Federal level. This article is the second in a series that seek to examine the role of agriculture as a developmental opportunity for Africa. Under the current administration, the GOE has renewed its emphasis to develop the agriculture sector, ensure food security, and achieve import substition. Mengistu told the 1989 WPE party congress that at US$0.32 per kilogram, foreign-exchange earnings from coffee would have dropped by 240 million Birr, and government revenue would have been reduced by 140 million Birr by the end of 1989. [7], Inaccessibility, water shortages, and infestations of disease-causing insects, mainly mosquitoes, prevented the use of large parcels of potentially productive land. 2. Foreign Direct Investment Attraction Events, Services for U.S. Companies New to Exporting, Services for U.S. Companies Currently Exporting, Leading Sectors for US Exports & Investments, Information and Communication Technology (ICT), Licensing Requirements for Professional Services, Improve income and livelihood options for farming and pastoral communities through increased productivity and competitiveness, Raise export of agricultural output and substitute imports, Make agriculture a viable and profitable enterprise through value addition, Enhance livestock health access and quality, Preserve animal genetic resources and increase pastoral research, Improve the development of animal feed and access to markets, Develop livestock specific extension package for each livestock type. According to government statistics, there are approximately 50 million cattle, 50 million goats and sheep, plus an assortment of horses, donkeys, camels and chickens. 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. Potential niche market for wheat and soybean exports. Contributions, potentials and characteristics of agriculture in Ethiopia The contributions of agriculture in Ethiopia The Ethiopian economy is an agrarian economy. The LMP also calls for increases in dairy, broiler and egg production to satisfy increasing consumer demand for affordable animal proteins. 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]. There is considerable room for investment when considering that about 95 percent of Ethiopias crop production is rain fed. Agro-processing equipment (e.g. "National Statistical Abstract. Over 60% of Ethiopian coffee is produced as forest coffee . The chicken business also shows promising opportunities. About three-quarters of the total sheep flock is in the highlands, whereas lowland pastoralists maintain about three-quarters of the goat herd. 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. State farms sold their output to the AMC. In the coming decades, ensuring food security is one of the greatest challenges in Ethiopia. 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. As many as 4.6 million people need food assistance annually. Overall, the economic reform plan sets out required strategic interventions to increase agricultural productivity and modernization of agriculture in the next 10 years. 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. Five major cereals (teff, wheat, maize, sorghum and barley) are the core of Ethiopia's agriculture and food economy, accounting for about In addition, Ethiopia spent 341 million Birr on food purchases during the 1985-87 period. [16] In 20062007 (the latest year available), exports of oilseeds accounted for 15.78% of export earnings (or million 187.4 Birr) and pulses 5.92% (or 70.3 million Birr). Soil acidity is one of the most important environmental threats to the Ethiopian highlands where the livelihood of the majority of people is reliant on agriculture. Land tenure rights as well as natural disasters, such as floods, hamper the countrys ability to quickly expand cotton production. Matou, P., Y. Todo, et al. Principal crops include coffee, pulses (e.g., beans), oilseeds, cereals, potatoes, sugarcane, and vegetables. Agriculture is the mainstay of Ethiopian economy involving major source of employment and gross national product. Similarly, the area of cultivation increased from 22,600 hectares in 197475 to 33,900 hectares in 198485.[7]. Almost all farming tools in Ethiopia are traditional and made from different types of wood. Ethiopia has an extremely diverse topography, climate, culture, population distribution and market access. Veterinary Drug and Animal Feed Administration & Control Authority (VDAFACA), NationalAnimalHealthDiagnosticand InvestigationCenter(NAHDIC), Ethiopia Agricultural Business Corporation (EABC), International Trade Administration Source: United Nations Comtrade. The report includes the market size, recent trends, industry statistics, and analysis. In the 1980s, as part of an effort to increase production and to improve the cultivation and harvesting of coffee, the government created the Ministry of Coffee and Tea Development (now the ECTA), which was responsible for production and marketing. It was also estimated that over 60 percent of the cultivated area was cropland. Search term. The first three are primarily cool-weather crops cultivated at altitudes generally above 1,500 meters. <i>Methods</i>. [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. [30] These tools includes sickle, pick axe, plough shaft, ploughshare, plow, beam and animal force as a machines. 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. This paper analyzes and discusses how the newly adopted system is structured and operates, the characteristics of extension services, and the evaluation system employed in agricultural extension, and assesses the challenges and opportunities associated with the system. The major product in are teff, wheat, maize, sesame, Niger, linseed etc. Agriculture in the Lake Tana Sub-Basin of Ethiopia -- 24. Overview. This method was widely used in Ethiopia and southern Ethiopia because it is recommended for soils requiring more than one ton of lime per acre and soils with a pH of less than 5.8 [15]. Though the raising of livestock always has been largely a subsistence activity,[22] intensive, factory farm facilities are gaining in popularity and are present in Addis Ababa and Debre Zeit, run by Ethiopian agribusiness ELFORA. Industrial Parks Development Corporation (IPDC), Textile Industry Development Institute (ETIDI), Ethiopian Cotton Producer, Ginners, and Exporters Association (ECPGEA). [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. 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.