characteristics of ethiopian agriculture

Over 60% of Ethiopian coffee is produced as forest coffee . Agriculture is the mainstay of the economy. Ethiopia has an extremely diverse topography, climate, culture, population distribution and market access. "Roles of extension and ethno-religious networks in acceptance of resource-conserving agriculture among Ethiopian farmers." Export sales of U.S. cotton are expected as demand increases. 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. Agriculture as a key element for the development of other sectors 3 3. Agriculture accounts for 36% percent of the nation's Gross domestic Product (GDP) as of 2020. Role Agriculture in Ethiopian economy. It is cultivated principally by the Gurage, Sidama, and several other ethnic groups in the region. 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. [12], In addition to smaller productions of other agricultural products.[13]. Hence, fewer people send their cattle in transhumance.[29]. The pilot areas selected for establishment of the Agro-Industrial Parks are mainly based on the potential of existing agricultural resources and allied sectors, infrastructure, and facilities. Secure .gov websites use HTTPS The vision of the CSA is to be a center of excellence in . Veterinary Drug and Animal Feed Administration & Control Authority (VDAFACA), NationalAnimalHealthDiagnosticand InvestigationCenter(NAHDIC), Ethiopia Agricultural Business Corporation (EABC), International Trade Administration International Journal of Agricultural Sustainability 11(4): 301-316. 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. In Ethiopia 95% of the total area is cultivated by smallholder farmers and contribute 90% of the total agricultural output. Agriculture >. But with proper drainage and conditioning, these soils have excellent agricultural potential. [7], The consumption of vegetables and fruits is relatively limited, largely because of their high cost. Common vegetables include onions, peppers, squash, and a cabbage similar to kale. 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 . More background information on the cotton situation in Ethiopia can be found in our cotton report from 2019/20. 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. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. Feed manufacturing, feed ingredients and feed milling equipment. In addition, some of Ethiopias cash crops show potential for growth and offer possible investment opportunities in areas such as coffee, oilseeds, pulses, fruits and vegetables, honey, cut flowers, tea, and spices. 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. Agricultural products account for more than 90 percent of the foreign exchange earnings of the country . During this period, markets were major actors of economic activity and various positive measures, which encouraged . The AMC was a government agency whose objective was to influence the supply and price of crops. UNJP-RWEE was a five-year long initiative with the objective of accelerating the economic empowerment of rural women . The Ethiopian Government set up the Growth and Transformation Plan (GTP) to reach certain goals between 2011 and 2015. [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. <i>Results . Exports are almost entirely agricultural commodities, and coffee is the largest foreign exchange earner. More details on the latest grain and oilseeds situation in Ethiopia can be found in our Grain & Feed and our Oilseeds Reports. An estimated 85 percent of the population are engaged in agricultural production. 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. will supply the domestic market. As reviewed from different literatures household demographic characteristics, household resource endowments, social, cultural, infrastructural, institutional and economic factors influence the . 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. Five major cereals (teff, wheat, maize, sorghum and barley) are the core of Ethiopia's agriculture and food economy, accounting for about landholdings are tiny, fragmented and unsuitable for modern methods of agriculture. In the highlands, oxen provided draft power in crop production. However, it is also one of the poorest, with a per capita gross national income of $960. Total required investment costs for the IAIPs stand at U.S. $870 million and initial investment costs are estimated at U.S. $266 million. 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. 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. See, for example, Central Statistical Authority of Ethiopia, "National Statistical Abstract. 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. [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. 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. 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. [11], Another major component of the Derg's agricultural policy was the development of large-scale state farms. In fact, over 50% of the daily caloric intake of an average household is from wheat, sorghum, and corn. 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. Most Ethiopians practice mixed agricultural activity which represents about 33.88 . Ethiopia one of the fastest-growing economies in the continent. This is a best prospect industry sector for this country. [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. Only 15 percent of the roads are paved; this is a problem particularly in the highlands, where there are two rainy seasons causing many roads to be unusable for weeks at a time. As such, investment opportunities in feed, genetics and veterinary services and the supporting industries are expected to grow in the coming years. The GOE imposes an export ban on cereal grain and local prices are often higher than what they are on the international market. "National Statistical Abstract. [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. Matou, P., Y. Todo, et al. 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. 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. One way the government is hoping to improve cotton yields is with Genetically Engineered (GE) cotton. 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. Crop and Livestock Product Utilization (Private Peasant Holdings . The soil was equilibrated with pH 7.5 buffer solution whereby reserve H is brought into the solution, which results in depression of pH which will be made and . Explain the main contribution, potentials, characteristics , and problems of Ethiopian agriculture. A large chunk of this commercially produced red meat, most of which is currently mutton and goat meat is exported to the Middle East in order to generate foreign exchange. The existence of so many land tenure systems, coupled with the lack of reliable data, made it difficult to give a comprehensive assessment of landownership in Ethiopia, as well as depressed the ability of peasants to improve themselves. Please help update this article to reflect recent events or newly available information. Please see below a summary of agricultural focus areas and objectives laid out in Ethiopias ten-year economic development plan (2021-2030). To show other various factors (political, policy, cultural, religious, affected crop production and productivity in Ethiopia. Private traders and the Agricultural Marketing Corporation (AMC), established in 1976, marketed Ethiopia's agricultural output. the agriculture sector in Ethiopia relies to a greater extent on availability of suitable land, moisture, climatic . 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 contribution of agriculture to growth in the manufacturing and services sectors was not significant between 1978 and 1998. Ethiopias development plan has laid out enhancing agricultural production and productivity as one of the major strategic pillars. 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. Download. Sandy desert soils cover much of the arid lowlands in the northeast and in the Ogaden of southeastern Ethiopia. Examining the characteristics of stakeholders in Lake Tana Sub-basin resource use, management and Governance -- 21. Commercial Imports from the United States, Source: USDA/Foreign Agriculture Service, Addis Ababa, (Total market size = (total local production + imports) - exports). Agriculture in Ethiopia. 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. 2. ", Tables D.4 D.7. Agricultural inputs, seeds, machinery and equipment used in cotton production. At the moment, there are a few U.S. and foreign firms that have partnered with local companies in the milk business, which has considerable room for growth, as milk consumption is still very low. Agriculture in the Lake Tana Sub-Basin of Ethiopia -- 24. Peasant associations used 361 nurseries to plant 11,000 hectares of land in community forest. 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 country intends to be a middle-income economy by 2025. Agriculture dominates the Ethiopian economy, accounting for about 50 percent of its GDP and 82 percent of its employment. areas like Punjab, Haryana and Chandigarh, elsewhere it is practiced on traditional lines. However, information is lacking in Wolaita, Southern Ethiopia. Kassaye Tolassa . Second, because peasants faced food shortages, they gave priority to cereal staples to sustain themselves. In fact, the soybean crushing and soybean oil refining industry is quickly emerging. The major product in are teff, wheat, maize, sesame, Niger, linseed etc. Ethiopias cotton production is insufficient to meet the growing demand from the textile and apparel sector. Abstract and Figures. Most of these farmers lived in the Ethiopian Highlands, mainly at elevations of 1,500 to 3,000 meters. 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 . Corn is grown chiefly between elevations of 1,500 and 2,200 meters and requires large amounts of rainfall to ensure good harvests. Opportunities also exist for agricultural inputs and systems used to grow and process cotton into textile and apparel. [30] These tools includes sickle, pick axe, plough shaft, ploughshare, plow, beam and animal force as a machines. . In this regard, the CSA conducts, produces, disseminates and administers data generated from surveys and censuses in Ethiopia. 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). Ethiopia's economy is based on agriculture, which accounts for 46% of GDP and 85% of total employment. Except in Tigray region, the pilot agro-industrial parks have launched operations. Since the 2000s, Ethiopia has emerged as one of the fastest-growing economies in Africa. A Review of Ethiopian Agriculture Roles Policy and Small Scale Farming . The LMP also calls for increases in dairy, broiler and egg production to satisfy increasing consumer demand for affordable animal proteins. [2][3][4] Many other economic activities depend on agriculture, including marketing, processing, and export of agricultural products. According to government statistics, there are approximately 50 million cattle, 50 million goats and sheep, plus an assortment of horses, donkeys, camels and chickens. 27 May 2021. 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. Contagious diseases and parasitic infections are major causes of death, factors that are exacerbated by malnutrition and starvation. A .gov website belongs to an official government organization in the United States. 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. The agricultural production trends throughout the 1980's up to mid-1990's were characterized by wide fluctuations in total output and weak growth, with grain production increasing at rate of 1.37% annually compared to population growth of 2.9 % (World Bank, 2004). Domestically, coffee contributed about 20% of the government's revenue. 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. Forestland, most of it in the southwestern part of the country, accounted for 4 percent of the total land area, according to the government. 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. For the later two Regions, estimated numbers vary greatly between conventional and aerial censuses, but total less than 15% of the non-nomadic Regions. In addition, Ethiopia spent 341 million Birr on food purchases during the 1985-87 period. (2013). The amount of coffee inspected in the fiscal year 20072008 by the Ethiopian Coffee and Tea Authority (ECTA) was 230,247 tons, a decrease of almost 3% from the previous fiscal year's total of 236,714 tons. Agriculture is one of the best prospect sectors for growth in Ethiopia. After the 1975 land reform, peasants began withholding grain from the market to drive up prices because government price-control measures had created shortages of consumer items. Of the 25 World Reference Base/FAO soil orders, 17 exist in Ethiopia. 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. 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. Wubne, Mulatu. Under the current administration, the GOE has renewed its emphasis to develop the agriculture sector, ensure food security, and achieve import substition. Agriculture is the backbone of the economy of the country as the following facts indicate. 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. The powers and duties of the MoA include: conservation and use of forest and wildlife resources, food security, water use and small-scale irrigation, monitoring events affecting agricultural development and early warning system . Area, Production and Farm Management Practices (Private Peasant Holdings, Belg Season) 2020/2021 (2013 E.C.) The mixed agriculture exhibits several subsystems. Consequently, Ethiopia became a net importer of grain worth about 243 million Birr annually from 198384 to, 198788. SPECIFIC CHARACTERISTICS OF AGRICULTURE 2 2.1. 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. @article{Haile1988CausesAC, title={Causes and Characteristics of Drought in 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. 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. [10] This has raised fears of food being exported to more prosperous countries while the local population faces its own shortage. [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. [7], Livestock production plays an important role in Ethiopia's economy. The principal grains in Ethiopia are Teff, Wheat, Barley, Corn, Sorghum, and Millet. The most important oilseed is the indigenous Niger seed (neug), which is grown on 50 percent or more of the area devoted to oilseeds. As many as 4.6 million people need food assistance annually. 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. 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]. Ethiopian Agricultural Research Institute (EIAR), Ethiopian Trading Business Corporation (ETBC). "Agriculture" (and subsections). It is roughly 7 and a half years behind the Gregorian calendar. Oilseeds of lesser significance include castor beans, rapeseed, peanuts, and safflower and sunflower seeds. In addition, the GOE continues to invest heavily in the expansion of the sugar industry, which is slated to be privatized in the near future with the aim of become one of the top ten sugar producers in the world over the next decade. Fresh fruits, including citrus and bananas, as well as fresh and frozen vegetables, became important export items, but their profitability was marginal. [14], The most important cash crop in Ethiopia was coffee.

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