The market for agriculture in Ethiopia is projected to register a CAGR of 5.4% during the forecast period, 2021-2026). The first three are primarily cool-weather crops cultivated at altitudes generally above 1,500 meters. 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. 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. Agriculture is the backbone of the economy of the country as the following facts indicate. to industries; export crops, from whose sales industries infrastructure and the like may be established; and . "National Statistical Abstract. 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. 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%). Our web pages use cookiesinformation about how you interact with the site. Ethiopia is home to abundant livestock resources. Additionally, camels provide pastoralists in those areas with milk and meat. To implement this strategy, the government relied on peasant associations and rural development, cooperatives and state farms, resettlement and villagization, increased food production, and a new marketing policy. Lake Tana Subbasin's Economy and The Role of Natural Resources -- 22. 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 1989, for example, the price of one kilogram/US$0.58; of coffee was by June it had dropped to US$0.32. 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. [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 1990 the state had begun to develop large poultry farms, mostly around Addis Ababa, to supply hotels and government institutions. However, these cattle do relatively well under the traditional production system. 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. Supply and demand characteristics 2 2.3. Nevertheless, Ethiopia's manufacturing sector is still far from being the engine of growth and structural change. Agriculture is the country's most promising resource management. In addition to cattle, small ruminants (goats and sheep) and beasts of burden (donkey, horse, mule) are not uncommon in this farming system. Area, Production and Farm Management Practices (Private Peasant Holdings, Belg Season) 2020/2021 (2013 E.C.) In 1971 the Ministry of Agriculture introduced the Minimum Package Program (MPP) to bring about economic and social changes. In Ethiopia's lowlands, for example, the presence of malaria kept farmers from settling in many areas. [7], The consumption of vegetables and fruits is relatively limited, largely because of their high cost. In Ethiopia, agriculture is the mainstay of the majority of the population and major driver of the national economy. [17], Although varying from region to region, the role of livestock in the Ethiopian economy was greater than the figures suggest. Grains - Grains are the most important field crops and the main element in the diet of most Ethiopians. To show other various factors (political, policy, cultural, religious, affected crop production and productivity in Ethiopia. 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. Agro-processed products, such as chicken, cheese, butter, eggs, biscuits, bread, juice, etc. Top 3 Exported Goods (2021): Coffee & Spices, Vegetables, and Oil Seeds. Agron., 16: 180-195. . See, for example, Central Statistical Authority of Ethiopia, "National Statistical Abstract. 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. 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. The government's price controls and the AMC's operations had led to the development of different price systems at various levels. Land Utilization (Private Peasant Holdings, Meher Season) 2020/21 (2013 E.C.) Agriculture accounts for most of (30- 42%) of the Gross Domestic Product (GDP) of the country. 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. fINTENSIVE FARMING. Search term. Lithosols, Cambisols, Nitosols, Vertisols, Xerosols, Solonchaks, Fluvisols and Luvisols cover more than 80% of the country, and are the most important soils. However, despite substantial investments and subsidies, State Farms provided only 4.2% of the cereal production in 198889. For the later two Regions, estimated numbers vary greatly between conventional and aerial censuses, but total less than 15% of the non-nomadic Regions. 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. Resultantly there has been significant uptake of resistant wheat varieties among Ethiopian farmers since 2014. 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. U.S. Department of Commerce In order to address the ongoing drought, the GOE is renewing its emphasis on developing the countrys irrigation systems and water-harvesting methodologies. Niger seed is found mostly in the northern and central highlands at elevations between 1,800 and 2,500 meters. Ethiopia's crop agriculture is complex, involving substantial variation in crops grown across the country's different regions and ecologies. [27], Most of the estimated 7.5 million equines (horses, mules, and donkeys) are used to transport produce and other agricultural goods. [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 has considerable potential for producing cotton. Ethiopia: Urban Agriculture and Poverty Alleviation. 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. The GOE has an ambitious plan to attain wheat self-sufficiency and halt importations. 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). . Because most of the lowlands lack adequate rainfall, cotton cultivation depends largely on irrigation. The 1977 famine also provided an impetus to promote conservation. 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 opportunities and constraints facing Ethiopian agriculture are strongly influenced by conditions which vary across geographical space. agriculture, poverty and illiteracy are important causes of land and environmental degradation in Ethiopia. Agriculture >. fruit crops, stimulant crops and sugar cane are cultivated by farmers and other agricultural sectors in Ethiopia. Agriculture. 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. 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. Agro-processing, such as beverages, biscuits, bread, milk, meat, chicken, cooking oil, fruit and vegetables, etc. [7] According to the Central Statistical Agency (CSA), in 2008 the average Ethiopian farmer holds 1.2 hectares of land, with 55.13% of them holding less than 1.0 hectare. [7], Ensete, known locally as false banana, is an important food source in Ethiopia's southern and southwestern highlands. }, author={Tesfaye Haile}, journal={Ethiopian Journal of Agricultural Sciences}, year={1988}, volume={10}, pages={85-97} } T. Haile; Published 14 July 1988; Geography; Ethiopian Journal of Agricultural Sciences Contagious diseases and parasitic infections are major causes of death, factors that are exacerbated by malnutrition and starvation. The chicken business also shows promising opportunities. Overall, the economic reform plan sets out required strategic interventions to increase agricultural productivity and modernization of agriculture in the next 10 years. As reviewed from different literatures household demographic characteristics, household resource endowments, social, cultural, infrastructural, institutional and economic factors influence the . In the late nineteenth century, about 30% of Ethiopia was covered with forest. Research on the constraints, characteristics, and performance of the enterprise sector in low-income countries is often constrained by scarcity . [7] Since the fall of the Derg, there have been a number of initiatives to improve the food supply, which include research and training by the Ethiopian Institute of Agricultural Research. 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. 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. Most of these farmers lived in the Ethiopian Highlands, mainly at elevations of 1,500 to 3,000 meters. That is why per hectare yield of crop is . According to the Economist Intelligence Unit (EIU), Ethiopia's GDP growth rate will increase by around 7.8% to 10% by 2023. 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]. 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. Agricultural inputs, seeds, machinery and equipment used in cotton production. 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. Kassaye Tolassa . In the highlands, oxen provided draft power in crop production. This site contains PDF documents. Peasant associations often were periodically compelled to redistribute land to accommodate young families or new households moving into their area. However, production is constrained in part by outdated ginneries and limited availability of quality inputs, including seed, fertilizer, and pest control agents. Production jumped from 43,500 tons in 197475 to 74,900 tons in 198485. An ethnoarchaeological study of highland Ethiopian griddle technology is compared to bread-baking technologies in Africa and the Near East. 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. Before the revolution, large-scale commercial cotton plantations were developed in the Awash Valley and the Humera areas. 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. To achieve this, the GOE seeks to leverage on developing huge unutilized arable land, modernizing production systems, and improving uptake of technology. By African, standard rural development programme has long history in Ethiopia. Primarily, growth in the market should reach 8.1 percent per year during this time frame. [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.". 27 May 2021. Rain-fed cotton also grew in Humera, Bilate, and Arba Minch. According to CSA (2015) report, cereals . 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. It features and analyzes the country's agricultural progress from 1960s to date, and some . Agriculture is the mainstay of Ethiopian economy involving major source of employment and gross national product. Thus, this study aimed at investigating the physiographic characteristics of agricultural lands, farmers . 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. In the dry lowlands, persistent winds also contribute to soil erosion. 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. In addition, Ethiopia spent 341 million Birr on food purchases during the 1985-87 period. Per capita meat consumption was high by developing countries' standards, an estimated thirteen kilograms annually. Section D. Since the revolution, most commercial cotton has been grown on irrigated state farms, mostly in the Awash Valley area. 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. [7], Agricultural productivity under the Derg continued to decline. Secure .gov websites use HTTPS 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. [21] It is estimated to number over 150 million in 20072008. The contributions of agriculture in Ethiopia. During Derg rule, veterinary stations were opened at Bahir Dar, Bedele, and Bishoftu to provide treatment and vaccination services. However, even with this anticipated increase in chicken meat production, demand is expected to outstrip supply, thereby creating potential opportunities for imports. The mixed agriculture exhibits several subsystems. In fact, the Ethiopia Investment Commission considers the textile and garment sector as a strategic sector. To that end, the government has made significant investments in cotton production in order to support manufacturing, including the recent establishment of industrial zones, and has gone to great lengths to provide incentives to attract foreign manufacturers to set up operations in the country. [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. This growth is expected to create investment and trade opportunities for certain commodities and open doors for veterinary and other livestock services. in addition to these cereals, they produce different types of fruits and coffee which are not seasonal. Exports are almost entirely agricultural commodities, and coffee is the largest foreign exchange earner. The main objective of this review is to indicate the policy gaps in terms of access . A .gov website belongs to an official government organization in the United States. Both animals have high sales value in urban centers, particularly during holidays such as Easter and New Year's Day. 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. [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. [7], Pulses are the second most important element in the national diet and a principal protein source. Commercial Imports from the United States, Source: USDA/Foreign Agriculture Service, Addis Ababa, (Total market size = (total local production + imports) - exports). More background information on the cotton situation in Ethiopia can be found in our cotton report from 2019/20. Most of these crops are exported to generate foreign exchange. Yet, information regarding its extent, distribution, causes, and lime requirement at a scale relevant to subsistence farming systems is still lacking. [7], The objectives of villagization included grouping scattered farming communities throughout the country into small village clusters, promoting rational land use, conserving resources, providing access to clean water and to health and education services, and strengthen security. 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. But in the northern highlands, where title to farm land was shared amongst members of descent groups, many people resisted land reform. The contribution of agriculture to growth in the manufacturing and services sectors was not significant between 1978 and 1998. Principal crops include coffee, pulses (e.g., beans), oilseeds, cereals, potatoes, sugarcane, and vegetables. 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. Agriculture as a producer of positive externalities and public goods 2 2.4. There is considerable room for investment when considering that about 95 percent of Ethiopias crop production is rain fed. The beneficial climate in the Highlands of Ethiopia also enabled irrigation and other advanced agricultural technology. Over 60% of Ethiopian coffee is produced as forest coffee . The problem became so serious that Mengistu lashed out against the peasantry on the occasion of the fourth anniversary of military rule in September 1978. 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. Agricultural equipment and systems, such as tractors, irrigation equipment, and grain handling Infrastructure like, silos, cold storage facilities, etc. However, the expected level was not achieved. Since the 2000s, Ethiopia has emerged as one of the fastest-growing economies in Africa. [2][3][4] Many other economic activities depend on agriculture, including marketing, processing, and export of agricultural products. The sunrise marks the beginning of the day and the sunset marks the end of the day. Private traders and the Agricultural Marketing Corporation (AMC), established in 1976, marketed Ethiopia's agricultural output. "Agriculture" (and subsections). Overview. 2. 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. The manufacturing sector plays a marginal role in employment generation, exports, output, and inter-sectoral linkages. 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. Approximately 25% of Ethiopia's population depended directly or indirectly on coffee for its livelihood. The plough shaft, beam and ploughshare are made of wood and the sickle, pick axe, plow are made of metal. Farm Management Practices (Private Peasant Holdings, Meher Season) 2020/21 (2013 E.C.) [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. [10], Until the 1974 revolution, Ethiopia had a complex land tenure system, which some have described as feudal. There is a functional relationship between the use of ove. [14], The most important cash crop in Ethiopia was coffee. Many of the existing and anticipated increases in livestock production, as envisioned under the LMP, are linked to the consistent availability of quality livestock feed, animal genetics, and veterinary services. 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. The Mengistu regime encouraged fruit and vegetable production. [7], Although the issue of land reform was not addressed until the Ethiopian Revolution in 1974, the government had tried to introduce programs to improve the condition of farmers. Facing a Foreign Trade AD/CVD or Safeguard Investigation? These three grains constitute the staple foods of a good part of the population and are major items in the diet of the nomads. Note: Top 3 trade partners are calculated by imports + exports. 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 . The GOE, as part of its Livestock Master Plan (LMP), intends to transform this sector and increase production and exports of meat in order to generate foreign exchange. [7], Livestock production plays an important role in Ethiopia's economy. Despite the emphasis on state farms, state farm production accounted for only 6% of total agricultural output in 1987 (although meeting 65% of urban needs), leaving peasant farmers responsible for over 90% of production. According to Ethiopia farming, this ploughing the land to prepare the soil for sow requires around two quarter of a year. 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.. Ethiopia's agriculture is plagued by periodic drought, soil degradation caused by overgrazing, deforestation, high levels of taxation and poor infrastructure (making it difficult and expensive to get goods to market). 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. 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. An estimated 85 percent of the population are engaged in agricultural production. 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. There are also expanding opportunities for grocery sales to retail and wholesale outlets that are starting to spring up all over Addis Ababa. Almost the entire rural population was involved in some way with animal husbandry, whose role included the provision of draft power, food, cash, transportation, fuel, and, especially in pastoral areas, social prestige. Includes a market overview and trade data. Advanced Search Citation Search . Ethiopias development plan has laid out enhancing agricultural production and productivity as one of the major strategic pillars. As a result, vegetable oils are widely used, and oilseed cultivation is an important agricultural activity. 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. In pastoral areas, livestock formed the basis of the economy. These programs should also result in Ethiopia getting to middle income status by 2025. State farms sold their output to the AMC. By 1989, the area covered by the State Farms had grown to a total of 220,000 hectares. 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.
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