This government-led outreach, combined with low labor and electricity costs, has already yielded fruits with a number of Turkish, Indian, Chinese, Indonesian and other foreign firms opening businesses in Ethiopia in recent years. Role Agriculture in Ethiopian economy. Similarly, the area of cultivation increased from 22,600 hectares in 197475 to 33,900 hectares in 198485.[7]. 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 . Most of these crops are exported to generate foreign exchange. According to government statistics, there are approximately 50 million cattle, 50 million goats and sheep, plus an assortment of horses, donkeys, camels and chickens. 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. Ethiopia is endowed with abundant agricultural resources and has diverse agro-ecological zones. [14], The most important cash crop in Ethiopia was coffee. juice processing, milling machines, extruders for soybean oil). 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. Advanced Search Citation Search . Please see below for the market overview and trade data. Characteristics of agricultural landscape features and local soil fertility management practices in Northwestern Amhara, Ethiopia. Agriculture as a key element for the development of other sectors 3 3. In view of this, a study was conducted to characterize the landscape features and related biophysical settings and to identify the local soil . [7], Agricultural productivity under the Derg continued to decline. Primarily, growth in the market should reach 8.1 percent per year during this time frame. In the future, the government intends to work with the private sector to develop capacity to process some of these commodities, like fruits and vegetables, in order to add value and capture higher export prices. 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. About three-quarters of the total sheep flock is in the highlands, whereas lowland pastoralists maintain about three-quarters of the goat herd. [27], Poultry farming is widely practiced in Ethiopia; almost every farmstead keeps some poultry for consumption and for cash sale. 1401 Constitution Ave NW 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. will supply the domestic market. These soils are found in both the northern and the southern highlands in areas with poor drainage. 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 Flaxseed, also indigenous, is cultivated in the same general area as Niger seed. Area, Production and Farm Management Practices (Private Peasant Holdings, Belg Season) 2020/2021 (2013 E.C.) After 1975 the revolutionary government used peasant associations to accelerate conservation work throughout rural areas. There is considerable room for investment when considering that about 95 percent of Ethiopias crop production is rain fed. Ethiopian farmers plough their land by combining the above tools for such three months to get yearly consumed food. In chtse area intensive farming is carried on in limited. 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. y's natural potential, the agricultural performance remains weak; high dependency on rain-fed 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. For this reason, some environmental experts maintain that large-scale conservation work in Ethiopia has been ineffective. 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]. [17], Although varying from region to region, the role of livestock in the Ethiopian economy was greater than the figures suggest. Opportunities also exist for agricultural inputs and systems used to grow and process cotton into textile and apparel. The program, designed for rural development, was first introduced in a project called the Chilalo Agricultural Development Union. Both animals have high sales value in urban centers, particularly during holidays such as Easter and New Year's Day. Corn is grown chiefly between elevations of 1,500 and 2,200 meters and requires large amounts of rainfall to ensure good harvests. To achieve this, the GOE seeks to leverage on developing huge unutilized arable land, modernizing production systems, and improving uptake of technology. This article is the second in a series that seek to examine the role of agriculture as a developmental opportunity for Africa. Wubne, Mulatu. [8], During the imperial period, the development of the agricultural sector was retarded by a number of factors, including tenancy and land reform problems, the government's neglect of the agricultural sector (agriculture received less than 2 percent of budget allocations even though the vast majority of the population depended on agriculture), low productivity, and lack of technological development. Private companies are allowed to import food commodities including wheat, rice, sugar, powder milk, and cooking oils. Practically all animals are range-fed. Firstly, various policies that discouraged private sector participation in economic activity were implemented during the socialist era (between 1978 and 1992). The northern parts of the highlands are almost devoid of trees. Agriculture in the Lake Tana Sub-Basin of Ethiopia -- 24. These three grains constitute the staple foods of a good part of the population and are major items in the diet of the nomads. Their resistance to this change increased when Zemecha members campaigned for collectivization of land and oxen. Title. Agriculture accounts for most of (30- 42%) of the Gross Domestic Product (GDP) of the country. Agro-processed products, such as chicken, cheese, butter, eggs, biscuits, bread, juice, etc. 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. Source: United Nations Comtrade. 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. The anticipated growth in these subsectors could open niche opportunities for sales of U.S. grain and oilseed commodities in the future, as well as processing and storage equipment, such as feed mills and soybean extruders. J. A lock ( A locked padlock ) or https:// means youve safely connected to the .gov website. The third most important oilseed is sesame, which grows at elevations from sea level to about 1,500 meters. Five major cereals (teff, wheat, maize, sorghum and barley) are the core of Ethiopia's agriculture and food economy, accounting for about Because most of the lowlands lack adequate rainfall, cotton cultivation depends largely on irrigation. In Wollo Province, for example, there were an estimated 111 types of land tenure. Peasant associations used 361 nurseries to plant 11,000 hectares of land in community forest. But with proper drainage and conditioning, these soils have excellent agricultural potential. This includes: bolstering smallholder farmers productivity, enhancing marketing systems, upgrading participation of private sector, increasing volume of irrigated land and curtailing amount of households with inadequate food. With the support of the IMF, the Ethiopian government has developed an ambitious Homegrown Economic Reform Planto propel the countrys economic progress. Ethiopia: Urban Agriculture and Poverty Alleviation. Ethiopia has previously imported cotton from various international suppliers. 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. Agriculture is the country's most promising resource management. 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. 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]. "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. In addition to its domestic use, sesame is also the principal export oilseed. Download. With support from the African Development Banks agricultural Technologies for African Agricultural Transformation program. Furthermore, the ten-year plan envisages to build a climate resilient green economy. [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. Ethiopia is home to one of the largest livestock populations in Africa. 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. However, the sector has always performed poorly; about one-half of the rural residents in Ethiopia live below the national poverty line, and the rural population is endowed with few and poorly provided social amenities. Wubne, Mulatu. major pulse crops grown in the country are chickpea, haricot beans, lentils, fababean and peas, The Ethiopian Orthodox Church traditionally has forbidden consumption of animal fats on many days of the year. The vision of the CSA is to be a center of excellence in . Some informal trade is most likely occurring in production areas located along borders. Agron., 16: 180-195. . processed food, beverages, and livestock products meat, milk, and eggs), as well as the textile/apparel and leather industries. Jorge Morales Pedraza. A potential exists for self-sufficiency in grains and for export development in livestock, grains, vegetables, and fruits. 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. The country intends to be a middle-income economy by 2025. 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. 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. [7] Multinational agribusinesses supply these industrial poultry farms with high yielding breeds, such as Rhode Island Reds and White Leghorns. Private traders and the Agricultural Marketing Corporation (AMC), established in 1976, marketed Ethiopia's agricultural output. 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). In addition, Ethiopia spent 341 million Birr on food purchases during the 1985-87 period. ", Table D.2. Ploughing the land using these tools is ambiguous and time-consuming. These activities have contributed to higher yields and increased production of both crops and livestock. The agriculture sector is projected to grow at 6.2% per annum over the next ten years. 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. 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. [7] Lithosols, Cambisols, Nitosols, Vertisols, Xerosols, Solonchaks, Fluvisols and Luvisols cover more than 80% of the country, and are the most important soils. 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. 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. Approximately 25% of Ethiopia's population depended directly or indirectly on coffee for its livelihood. Amare Getahun's (1978) paper on agricultural systems in Ethiopia is one of the few attempts to classify agricultural systems in Ethiopia into (a) the highland mixed farming system, (b) low plateaux and valley mixed agriculture, (c) pastoral livestock production of the arid and semi-arid zones and (d) commercial agriculture, and to describe the main characteristics of each system. [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. Source: Source: USDA/Foreign Agriculture Service, Addis Ababa, Total Market Size = (Total Local Production + Total Imports) (Total Exports). [7], Historically, Ethiopia was a rare exception in Sub-Saharan Africa, because of its special environmental circumstances, that enabled Ethiopian farmers to increase their productivity, for example by using ploughs. To examine the current situation on the use of agricultural technologies by . The most important agricultural exports include coffee, hides and skins (leather products), Pulses, oil seeds, beeswax, and, increasingly, tea. Production is overwhelmingly of a subsistence nature, and a large part of commodity exports are provided by the small agricultural cash-crop sector. However, information is lacking in Wolaita, Southern Ethiopia. The directorates goal is to increase productivity, employment, technology transfer, and foreign exchange reserves by attracting investors with incentives and favorable land lease terms. [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. UNJP-RWEE was a five-year long initiative with the objective of accelerating the economic empowerment of rural women . A .gov website belongs to an official government organization in the United States. 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. The Ministry of Agriculture (MoA) is the Ethiopian government ministry which oversees the agricultural and rural development policies of Ethiopia on a Federal level. Young herders take their text books of the upcoming school year to the grazing grounds. 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. 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. The opportunities and constraints facing Ethiopian agriculture are strongly influenced by conditions which vary across geographical space. Facing a Foreign Trade AD/CVD or Safeguard Investigation? . The Tendaho Cotton Plantation in the lower Awash Valley was one of Ethiopia's largest cotton plantations. 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. The Ethiopian Government set up the Growth and Transformation Plan (GTP) to reach certain goals between 2011 and 2015. Yet, information regarding its extent, distribution, causes, and lime requirement at a scale relevant to subsistence farming systems is still lacking. 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. 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. Ethiopia's development plan has laid out enhancing agricultural production and productivity as one of the . 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. 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. Commercial agriculture using the river basins, such as the Awash Basin, is a recent phenomenon. 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. The beneficial climate in the Highlands of Ethiopia also enabled irrigation and other advanced agricultural technology.
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