This modest increase, however, was not enough to offset a general decrease in GDP during the same period. Households spend an average of 40% of their total food budget on cereals. Recently, the GOE has permitted imports of basic food commodities using franco-valuta scheme to narrow supply and demand gap and reduce rising inflation in the country. The third most important oilseed is sesame, which grows at elevations from sea level to about 1,500 meters. In addition to wheat, the demand for oilseeds, such as soybeans and Niger seed, is expected to grow as Ethiopias demand for both cooking oil and livestock feed increases. Therefore, investment in commercial farming requires considerable due diligence. In Ethiopia, agriculture is started during the Neolithic revolution era, ten thousand years ago. 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. Almost all farming tools in Ethiopia are traditional and made from different types of wood. Section D. Because of low rainfall, these soils have limited agricultural potential, except in some areas where rainfall is sufficient for the growth of natural forage at certain times of the year. It began with the domestication of crops and animals. Production jumped from 43,500 tons in 197475 to 74,900 tons in 198485. Ethiopia follows the Julian calendar consisting of 12 months of 30 days each and a 13th month of 5 or 6 days. 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. NEED FOR A SPECIFIC TREATMENT OF AGRICULTURE . 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. [7], Livestock production plays an important role in Ethiopia's economy. 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. 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. Much of the food deficit was covered through food aid. The vision of the CSA is to be a center of excellence in . To examine the current situation on the use of agricultural technologies by . This is a best prospect industry sector for this country. 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. Finally, although the production cost of pulses and oilseeds continued to rise, the government's price control policy left virtually unchanged the official procurement price of these crops, thus substantially reducing net income from them. There was much debate as to whether or not these reforms were genuine and how effectively they could be implemented. Top 3 Exported Goods (2021): Coffee & Spices, Vegetables, and Oil Seeds. It has also enjoyed a considerable attention by the government. But in the northern highlands, where title to farm land was shared amongst members of descent groups, many people resisted land reform. Land ownership is also a complicating factor. However, even with this anticipated increase in chicken meat production, demand is expected to outstrip supply, thereby creating potential opportunities for imports. Camels also play a key role as pack animals in areas below 1,500 meters in elevation. Feed manufacturing, feed ingredients and feed milling equipment. Ethiopia Socioeconomic Survey Wave3, 2015-2016. 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. [7], Ethiopia's estimated livestock population is often said to be the largest in Africa. An estimated 85 percent of the . The second type consists of brownish-to-gray and black soils with a high clay content. Private companies are allowed to import food commodities including wheat, rice, sugar, powder milk, and cooking oils. The relationship between elevation, soil temperatures, soil chemical characteristics, and green coffee bean quality and biochemistry in southwest Ethiopia. [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. Beef exports are also growing, with additional market opportunities on the horizon. Barley is cultivated mostly between 2,000 and 3,500 meters in Ethiopia. After 1975 the revolutionary government used peasant associations to accelerate conservation work throughout rural areas. Some estimates indicated that yields on peasant farms were higher than those on state farms. 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], 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. [17], Ethiopia's flower industry has become a new source for export revenue. 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). Causes and Characteristics of Drought in Ethiopia. 133 8.5.2. However, despite substantial investments and subsidies, State Farms provided only 4.2% of the cereal production in 198889. Meat and poultry processing, and supporting equipment and systems. Pulses were a particularly important export item before the revolution. The agricultural production sector is a backbone of the Ethiopian economy. Individual poultry farms supply eggs and meat to urban dwellers. Furthermore, cropping has become more intensive and needs more labour; the establishment of exclosures and the expansion of cropland have led to less grazing grounds. Resultantly there has been significant uptake of resistant wheat varieties among Ethiopian farmers since 2014. As the textile and apparel industry grows, there will likely be more opportunities for U.S. cotton sales. @article{Haile1988CausesAC, title={Causes and Characteristics of Drought in Ethiopia. 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. An ethnoarchaeological study of highland Ethiopian griddle technology is compared to bread-baking technologies in Africa and the Near East. Agriculture as a producer of positive externalities and public goods 2 2.4. However, the removal of arable land for conservation projects has threatened the welfare of increasing numbers of rural poor. [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.". Merkebu Getachew. Barley is grown mostly between 2,000 and 3,500 meters. Ethiopia Socioeconomic Survey Wave2, 2013-2014. 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. 3. The UN Joint Programme focused on Rural Women's Economic Empowerment (UNJP-RWEE) was launched in Ethiopia in 2014 by UN Women, the Food and Agriculture Organization of the UN (FAO), the World Food Programme (WFP), and the International Fund for Agriculture Development (IFAD). 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. The Tendaho Cotton Plantation in the lower Awash Valley was one of Ethiopia's largest cotton plantations. It is a major subsistence crop and it is used as food. Per capita meat consumption was high by developing countries' standards, an estimated thirteen kilograms annually. 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. Production is overwhelmingly of a subsistence nature, and a large part of commodity exports are provided by the small agricultural cash-crop sector. Approximately 25% of Ethiopia's population depended directly or indirectly on coffee for its livelihood. Washington, DC 20230. 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. As a result, agriculture continued to grow, albeit below the population growth rate. [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. [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. However, production is constrained in part by outdated ginneries and limited availability of quality inputs, including seed, fertilizer, and pest control agents. 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. Despite the Derg's efforts to reassure farmers that land reform would not affect them negatively, northerners remained suspicious of the new government's intentions. [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. According to Ethiopia farming, this ploughing the land to prepare the soil for sow requires around two quarter of a year. Agriculture accounts for most of (30- 42%) of the Gross Domestic Product (GDP) of the country. Kassaye Tolassa . 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. During the same period (197387), population increased at an average annual rate of 2.6 percent (2.4 percent for 198087). 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. "National Statistical Abstract. 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. [19][20], Sorghum, millet, and corn are cultivated mostly in warmer areas at lower altitudes along the country's western, southwestern, and eastern peripheries. 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. Although the MPPs improved the agricultural productivity of farmers, particularly in the project areas, there were many problems associated with discrimination against small farmers (because of a restrictive credit system that favored big landowners) and tenant eviction. These areas are used by pastoralists who move back and forth in the area following the availability of pasture for their animals. juice processing, milling machines, extruders for soybean oil). Characteristics of agricultural landscape features and local soil fertility management practices in Northwestern Amhara, Ethiopia. [7], The plains and low foothills west of the highlands have sandy and gray-to-black clay soils. A potential exists for self-sufficiency in grains and for export development in livestock, grains, vegetables, and fruits. 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. These types of soils are found in much of the Southern Nations, Nationalities, and People's Region (SNNPR). [10], Until the 1974 revolution, Ethiopia had a complex land tenure system, which some have described as feudal. Three factors contributed to the decline in the relative importance of pulses and oilseeds. With the support of the IMF, the Ethiopian government has developed an ambitious Homegrown Economic Reform Planto propel the countrys economic progress. Ethiopias cotton production is insufficient to meet the growing demand from the textile and apparel sector. 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. The farmers continued to utilize their ancient system of production despite changing ecological and population pressures. Fresh fruits, including citrus and bananas, as well as fresh and frozen vegetables, became important export items, but their profitability was marginal. Where the topography permits, they are suitable for farming. 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. Please help update this article to reflect recent events or newly available information. It then continues in summarising the main specific characteristics of agriculture: The land use function, the supply and demand characteristics, the contribution of the agricultural sector to the provision of positive externalities and public goods, food as a unique and most essential good and agriculture as a key element for the development of . in addition to these cereals, they produce different types of fruits and coffee which are not seasonal. Ethiopia is well positioned because highland temperatures make it ideal for horticulture, the average wage rate is US$20 per month (compared to US$60 a month in India), the price of leased land is about US$13 per hectare, and the government has tremendously aided the entry of new businesses into this sector in recent years. With the GOE looking to partially liberalize the wheat import market, local millers are beginning to explore opportunities to import wheat directly. In addition to red meat, there are emerging opportunities in chicken, egg, and dairy production and processing. Corn is grown chiefly between elevations of 1,500 and 2,200 meters and requires large amounts of rainfall to ensure good harvests. Food production had consistently declined throughout the 1980s. The agriculture sector is projected to grow at 6.2% per annum over the next ten years. Vertisols are very important soils in Ethiopian agriculture. Supply and demand characteristics 2 2.3. Agriculture dominates the Ethiopian economy, accounting for about 50 percent of its GDP and 82 percent of its employment. 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. More background information on the cotton situation in Ethiopia can be found in our cotton report from 2019/20. 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. Consequently, individual holdings were frequently far smaller than the permitted maximum allotment of ten hectares. Livestock and Livestock Characteristics (Private Peasant Holdings) 2020/2021 (2013 E.C.) [7] Despite government efforts, farmers responded less than enthusiastically. Potato is an increasingly important crop in Ethiopia, but the origin of local cultivars grown throughout the country is unknown. Ethiopia's major staple crops include a variety of cereals, pulses, oilseeds, and coffee. The country, therefore, is expected to import wheat and soybeans in the coming years. Download. For the foreseeable future, the demand for cotton is expected to outstrip local supplies, making imports necessary. The sunrise marks the beginning of the day and the sunset marks the end of the day. The Ethiopian Herald (Addis Ababa) Urban agriculture utilizes resources such as land that have high demand for other urban uses . This study (1) investigates the extent and spatial distribution of soil acidity . For this to happen, the government will need to guarantee sufficient allocations of foreign exchange. 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%). As such, investment opportunities in feed, genetics and veterinary services and the supporting industries are expected to grow in the coming years. The two dominant agricultural systems in Ethiopia are the mixed agriculture of the highlands, where both crops and livestock production are integrated, and pastoralism in the lowlands. Additionally, camels provide pastoralists in those areas with milk and meat. will supply the domestic market. The major binding constraints of the sector are insufficient yields due to inefficient provision of inputs and services, unclear land lease rights, limited investment in R&D and irrigation, marketing and logistics related problems, and lack of agriculture-specific financial services. Recurring drought takes a heavy toll on the animal population, although it is difficult to determine the extent of losses. >. As many as 4.6 million people need food assistance annually. As a result, vegetable oils are widely used, and oilseed cultivation is an important agricultural activity. Develop a legal framework for agriculture-specific financial services such as micro-lending, crop insurance and forward contracts. agriculture, poverty and illiteracy are important causes of land and environmental degradation in Ethiopia. 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). Five major cereals (teff, wheat, maize, sorghum and barley) are the core of Ethiopia's agriculture and food economy, accounting for about The Blue Nile River. To show other various factors (political, policy, cultural, religious, affected crop production and productivity in Ethiopia. Agricultural products account for . Firstly, various policies that discouraged private sector participation in economic activity were implemented during the socialist era (between 1978 and 1992). Challenges of Agricultural Production and Productivity in Ethiopia. The Government of Ethiopia (GOE) has identified key priority intervention areas to increase productivity of smallholder farms and expand large-scale commercial farms. This site contains PDF documents. Agriculture is the backbone of the economy of the country as the following facts indicate. Agriculture is one of the best prospect sectors for growth in Ethiopia. Agro-processed products, such as chicken, cheese, butter, eggs, biscuits, bread, juice, etc. Growing demand for water supply and drainage systems, pumps, and drilling equipment is expected. 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. Area, Production and Farm Management Practices (Private Peasant Holdings, Belg Season) 2020/2021 (2013 E.C.) The AMC was a government agency whose objective was to influence the supply and price of crops. The market for agriculture in Ethiopia is projected to register a CAGR of 5.4% during the forecast period, 2021-2026). 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. 2. For northwest and central Ethiopia, fertilizer usage determinants are estimated simultaneously with technology-specific production functions. An estimated 85 percent of the population are engaged in agricultural production. The contributions of agriculture in Ethiopia. The 1977 famine also provided an impetus to promote conservation. The Awash River basin supports many large-scale commercial farms and several irrigated small farms. 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. processed food, beverages, and livestock products meat, milk, and eggs), as well as the textile/apparel and leather industries. Rain-fed cotton also grew in Humera, Bilate, and Arba Minch. 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. Lithosols, Cambisols, Nitosols, Vertisols, Xerosols, Solonchaks, Fluvisols and Luvisols cover more than 80% of the country, and are the most important soils. These soils are found in both the northern and the southern highlands in areas with poor drainage. During this period, markets were major actors of economic activity and various positive measures, which encouraged . [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.
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