Principal crops include coffee, pulses (e.g., beans), oilseeds, cereals, potatoes, sugarcane, and vegetables. There are also expanding opportunities for grocery sales to retail and wholesale outlets that are starting to spring up all over Addis Ababa. Agricultural products account for . It began with the domestication of crops and animals. Since the revolution, most commercial cotton has been grown on irrigated state farms, mostly in the Awash Valley area. Consequently, the country faced a famine that resulted in the death of nearly 1 million people from 1984 to 1986. Land Use Distribution and Change in Lake Tana Sub Basin -- 23. The agricultural production sector is a backbone of the Ethiopian economy. Similarly, the area of cultivation increased from 22,600 hectares in 197475 to 33,900 hectares in 198485.[7]. Matou, P., Y. Todo, et al. In the dry lowlands, persistent winds also contribute to soil erosion. Resembling the banana but bearing an inedible fruit, the plant produces large quantities of starch in its underground rhizome and an above-ground stem that can reach a height of several meters. Another study, of Dejen awraja (subregion) in Gojjam, found that land fragmentation had been exacerbated since the revolution. To achieve this, the GOE seeks to leverage on developing huge unutilized arable land, modernizing production systems, and improving uptake of technology. 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 is also Africa's second biggest maize producer. [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. Ethiopias commercial red meat (beef, mutton and goat) industry has made remarkable progress to date and shows considerable growth potential for the future. In view of this, a study was conducted to characterize the landscape features and related biophysical settings and to identify the local soil . 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. The directorates goal is to increase productivity, employment, technology transfer, and foreign exchange reserves by attracting investors with incentives and favorable land lease terms. Niger seed is found mostly in the northern and central highlands at elevations between 1,800 and 2,500 meters. 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. These areas are used by pastoralists who move back and forth in the area following the availability of pasture for their animals. Our web pages use cookiesinformation about how you interact with the site. In addition, the ten-year development plan aims at boosting agricultural export revenues and substituting imports by reducing production costs. Ethiopian Agricultural Research Institute (EIAR), Ethiopian Trading Business Corporation (ETBC). By 1989, the area covered by the State Farms had grown to a total of 220,000 hectares. Ethiopia one of the fastest-growing economies in the continent. 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. Potential opportunities exist for sales of U.S. livestock genetics and chicken meat. Overall, the economic reform plan sets out required strategic interventions to increase agricultural productivity and modernization of agriculture in the next 10 years. Section D. Ethiopia is home to abundant livestock resources. 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. The AMC set quotas of grain purchases to be delivered by peasant associations and cooperatives and also bought from private wholesalers, who were required to sell half of their purchases at predetermined prices. 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. For the later two Regions, estimated numbers vary greatly between conventional and aerial censuses, but total less than 15% of the non-nomadic Regions. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. There are opportunities to process livestock products for both local and export markets. Trade. Merkebu Getachew. 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. According to the Economist Intelligence Unit (EIU), Ethiopia's GDP growth rate will increase by around 7.8% to 10% by 2023. Second, because peasants faced food shortages, they gave priority to cereal staples to sustain themselves. 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. [12], In addition to smaller productions of other agricultural products.[13]. Lithosols, Cambisols, Nitosols, Vertisols, Xerosols, Solonchaks, Fluvisols and Luvisols cover more than 80% of the country, and are the most important soils. ", Table D.1.1, "The Federal Democratic Republic of Ethiopia: Statistical Appendix", p. 26. 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. 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. [17], Cotton is grown throughout Ethiopia below elevations of about 1,400 meters. Under the current administration, the GOE has renewed its emphasis to develop the agriculture sector, ensure food security, and achieve import substition. 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. 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. [7], Ensete, known locally as false banana, is an important food source in Ethiopia's southern and southwestern highlands. Their resistance to this change increased when Zemecha members campaigned for collectivization of land and oxen. [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. By African, standard rural development programme has long history in Ethiopia. Most of these crops are exported to generate foreign exchange. This can be attributed to two factors. The Ministry of Agriculture (MoA) is the Ethiopian government ministry which oversees the agricultural and rural development policies of Ethiopia on a Federal level. [11], Another major component of the Derg's agricultural policy was the development of large-scale state farms. It purchased grain from peasant associations at fixed prices. 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. Of the 25 World Reference Base/FAO soil orders, 17 exist in Ethiopia. This is a best prospect industry sector for this country. 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. Agriculture is the mainstay of Ethiopian economy involving major source of employment and gross national product. Domestically, coffee contributed about 20% of the government's revenue. In Ethiopia's lowlands, for example, the presence of malaria kept farmers from settling in many areas. 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. In the coming decades, ensuring food security is one of the greatest challenges in Ethiopia. In Wollo Province, for example, there were an estimated 111 types of land tenure. Top 3 Exported Goods (2021): Coffee & Spices, Vegetables, and Oil Seeds. 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. As many as 4.6 million people need food assistance annually. Ethiopian farmers plough their land by combining the above tools for such three months to get yearly consumed food. Please see below for the market overview and trade data. [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.". 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. 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. [7], Ethiopia's estimated livestock population is often said to be the largest in Africa. APDF readeris available from Adobe Systems Incorporated. To show other various factors (political, policy, cultural, religious, affected crop production and productivity in Ethiopia. To promote commercial-scale farming, the Ministry of Agriculture (MOA) created the Ethiopian Agricultural Land and Investment Administration Agency dedicated to overseeing any new large-scale commercial farm deals. About three-quarters of the total sheep flock is in the highlands, whereas lowland pastoralists maintain about three-quarters of the goat herd. The most important oilseed is the indigenous Niger seed (neug), which is grown on 50 percent or more of the area devoted to oilseeds. Pulses, grown widely at all altitudes from sea level to about 3,000 meters, are more prevalent in the northern and central highlands. "National Statistical Abstract. 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 reforms success in supporting Ethiopias economic growth in part depends on the development of the agro-processing sector (e.g. In addition to its domestic use, sesame is also the principal export oilseed. Ethiopias current level of wheat and soybean production is insufficient to satisfy domestic demand. First, the recurring droughts had devastated the country's main areas where pulses and oilseeds were grown. The GOE encourages investments in meat processing, especially those that are focused on exporting value-added products abroad. Farm Management Practices (Private Peasant Holdings, Meher Season) 2020/21 (2013 E.C.) In 1971 the Ministry of Agriculture introduced the Minimum Package Program (MPP) to bring about economic and social changes. The plough shaft, beam and ploughshare are made of wood and the sickle, pick axe, plow are made of metal. @article{Haile1988CausesAC, title={Causes and Characteristics of Drought in Ethiopia. Characteristics and challenges of the Ethiopian highlands farming systems. [2][3][4] Many other economic activities depend on agriculture, including marketing, processing, and export of agricultural products. According to a 1987 estimate, beef accounted for about 51% of all meat consumption, followed by mutton and lamb (19%), poultry (15%), and goat (14%). Advanced Search Citation Search . Growing demand for water supply and drainage systems, pumps, and drilling equipment is expected. 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. 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. The most important agricultural exports include coffee, hides and skins (leather products), Pulses, oil seeds, beeswax, and, increasingly, tea. . Following their rise to power, on March 4, 1975, the Derg proclaimed their land reform program. Explain the main contribution, potentials, characteristics , and problems of Ethiopian agriculture. The farmers continued to utilize their ancient system of production despite changing ecological and population pressures. 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. An estimated 85 percent of the population are engaged in agricultural production. Corn is grown chiefly between elevations of 1,500 and 2,200 meters and requires large amounts of rainfall to ensure good harvests. 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. Recurring drought takes a heavy toll on the animal population, although it is difficult to determine the extent of losses. 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. agriculture, poverty and illiteracy are important causes of land and environmental degradation in Ethiopia. This site contains PDF documents. 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 . An ethnoarchaeological study of highland Ethiopian griddle technology is compared to bread-baking technologies in Africa and the Near East. 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. Contributions, potentials and characteristics of agriculture in Ethiopia The contributions of agriculture in Ethiopia The Ethiopian economy is an agrarian economy. Thus, this study aimed at investigating the physiographic characteristics of agricultural lands, farmers . The market is segmented by type into food crops, fruits, and vegetables. The government's price controls and the AMC's operations had led to the development of different price systems at various levels. This modest increase, however, was not enough to offset a general decrease in GDP during the same period. 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 second type consists of brownish-to-gray and black soils with a high clay content. [7], The consumption of vegetables and fruits is relatively limited, largely because of their high cost. Private traders and the Agricultural Marketing Corporation (AMC), established in 1976, marketed Ethiopia's agricultural output. Agriculture is the backbone of the economy of the country as the following facts indicate. Challenges of Agricultural Production and Productivity in Ethiopia. "Agriculture" (and subsections), updated with latest figures from the CSA. As with many equatorial countries, the sun dictates time in Ethiopia. [18], Another new source for export revenue is the production of chat, an amphetamine-like stimulant which is consumed both inside Ethiopia and in adjacent countries, and which is considered a drug of abuse that can lead to mild to moderate psychological dependence. 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. ", 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. Forestland, most of it in the southwestern part of the country, accounted for 4 percent of the total land area, according to the government. Since the 2000s, Ethiopia has emerged as one of the fastest-growing economies in Africa. 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. [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. Milk and dairy processing, and supporting equipment and systems. An estimated 85 percent of the . 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. 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. >. Ethiopia's economy is based on agriculture, which accounts for 46% of GDP and 85% of total employment. The GOE imposes an export ban on cereal grain and local prices are often higher than what they are on the international market. (2013). Most Ethiopians practice mixed agricultural activity which represents about 33.88 . Consequently, individual holdings were frequently far smaller than the permitted maximum allotment of ten hectares. The third most important oilseed is sesame, which grows at elevations from sea level to about 1,500 meters. 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. Livestock and Livestock Characteristics (Private Peasant Holdings) 2020/2021 (2013 E.C.) 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 manufacturing sector plays a marginal role in employment generation, exports, output, and inter-sectoral linkages. 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 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. Firstly, various policies that discouraged private sector participation in economic activity were implemented during the socialist era (between 1978 and 1992). 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. y's natural potential, the agricultural performance remains weak; high dependency on rain-fed University students led the land reform movement and campaigned against the government's reluctance to introduce land reform programs and the lack of commitment to integrated rural development. As many as 4.6 million people need food assistance annually and agriculture in Ethiopia is the foundation of the country's economy, accounting for half of the gross domestic product (GDP). Much of the food deficit was covered through food aid. 2. About 70 percent of the cattle in 1987 were in the highlands (commonly involved in transhumance),[26] and the remaining 30 percent were kept by nomadic pastoralists in the lowland areas. Private companies are allowed to import food commodities including wheat, rice, sugar, powder milk, and cooking oils. [19][20], Sorghum, millet, and corn are cultivated mostly in warmer areas at lower altitudes along the country's western, southwestern, and eastern peripheries. Pulses were a particularly important export item before the revolution. 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. Local demand for meat, milk and eggs is growing as the economy and population grow. Wubne, Mulatu. Grain production is one of the most important sub-sectors in the countrys agriculture-based economy. "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. Per capita meat consumption was high by developing countries' standards, an estimated thirteen kilograms annually. Camels also play a key role as pack animals in areas below 1,500 meters in elevation. In particular, demand for cooking oil, sugar, meat, eggs, dairy products, wheat-based products, such as pasta and bread, alcoholic and non-alcoholic beverages, are forecast to climb upward. 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. Due to physical, economic and social factors the. In addition, Ethiopia spent 341 million Birr on food purchases during the 1985-87 period. 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. [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. 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. Top 3 Trade Partners (2021): China, India, and United States. 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. Households spend an average of 40% of their total food budget on cereals. Agriculture as a producer of positive externalities and public goods 2 2.4. Five major cereals (teff, wheat, maize, sorghum and barley) are the core of Ethiopia's agriculture and food economy, accounting for about Agriculture >. D. espite the countr. 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. The LMP also calls for increases in dairy, broiler and egg production to satisfy increasing consumer demand for affordable animal proteins. Agro-processing equipment (e.g. In addition to cattle, small ruminants (goats and sheep) and beasts of burden (donkey, horse, mule) are not uncommon in this farming system. There was much debate as to whether or not these reforms were genuine and how effectively they could be implemented. In order to reduce the severity of this problem, several agricultural development strategies have been implemented since the 1960's. 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. Ethiopia is home to one of the largest livestock populations in Africa. 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. There may also be future opportunities for equipment and systems to process these commodities. It was also estimated that over 60 percent of the cultivated area was cropland. In pastoral areas, livestock formed the basis of the economy. . According to government statistics, there are approximately 50 million cattle, 50 million goats and sheep, plus an assortment of horses, donkeys, camels and chickens. The soils of the Great Rift Valley often are conducive to agriculture if water is available for irrigation. Agriculture accounts for most of (30-42%)t of the Gross Domestic Product (GDP) of the country. [7], The plains and low foothills west of the highlands have sandy and gray-to-black clay soils. Therefore, investment in commercial farming requires considerable due diligence. The agriculture sector is projected to grow at 6.2% per annum over the next ten years. 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 . Ethiopia Socioeconomic Survey Wave3, 2015-2016. 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. Contract farming, cluster approach and land consolidation, Horticulture (irrigation and urban farming), Climate resilient sustainable agricultural development. Some estimates indicated that yields on peasant farms were higher than those on state farms.