Ethiopia's crop agriculture is complex, involving substantial variation in crops grown across the country's different regions and ecologies. 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. 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. The Blue Nile from Ethiopia originating form Lake Tana and the White Nile that originated form Lake Victoria merge into the Great Nile River at Khartoum, the Sudan capital to form the longest river of the world draining to the Mediterranean Sea.The Blue Nile Falls is one . [5] Ethiopia's livestock population is believed to be the largest in Africa, and in 20062007 livestock accounted for 10.6% of Ethiopia's export income, with leather and leather products making up 7.5% and live animals 3.1%. Some estimates indicated that yields on peasant farms were higher than those on state farms. 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. 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 chicken business also shows promising opportunities. 3. Abstract and Figures. 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. The mixed agriculture exhibits several subsystems. 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). The third most important oilseed is sesame, which grows at elevations from sea level to about 1,500 meters. Skip to Article Content; Skip to Article Information; Search within. During the 1970s, coffee exports accounted for 50-60% of the total value of all exports, although coffee's share dropped to 25% as a result of the economic dislocation following the 1974 revolution. [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. [7], Most agricultural producers are subsistence farmers with small holdings, often broken into several plots. This is a best prospect industry sector for this country. Where the topography permits, they are suitable for farming. Matou, P., Y. Todo, et al. In 20062007 (the latest year available), exports of chat accounted for 25% of export earnings (or 8oo million Birr). Resultantly there has been significant uptake of resistant wheat varieties among Ethiopian farmers since 2014. Growing demand for water supply and drainage systems, pumps, and drilling equipment is expected. 2. [7], Before the Ethiopian Revolution, pulses and oilseeds played an important role, second only to coffee, in the country's exports. 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. 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 food deficit estimate for the 198589 period indicated that production averaged about 6 million tons while demand reached about 10 million tons, thus creating an annual deficit of roughly 4 million tons. The contributions of agriculture in Ethiopia. Additional investment opportunities are expected in the textile and garment sector as well as cotton production. 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. For the later two Regions, estimated numbers vary greatly between conventional and aerial censuses, but total less than 15% of the non-nomadic Regions. Therefore, investment in commercial farming requires considerable due diligence. 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). U.S. Department of Commerce 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 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 . As a result, up to 200,000 Ethiopians perished. 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. Agriculture in Ethiopia. The highest concentration of poultry is in Shewa, in central Wollo, and in northwestern Tigray. 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. 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. Ethiopia's major industries include agriculture, construction, manufacturing, resources and . The government's price controls and the AMC's operations had led to the development of different price systems at various levels. Agriculture is the country's most promising resource management. In Ethiopia, agriculture is started during the Neolithic revolution era, ten thousand years ago. 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. They are sticky when wet, hard when dry, and difficult to work. The GOE has approved two different varieties of Bt cottonseeds for commercial cultivation. Agriculture is one of the best prospect sectors for growth in Ethiopia. Barley is cultivated mostly between 2,000 and 3,500 meters in Ethiopia. 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. The agriculture sector is projected to grow at 6.2% per annum over the next ten years. Some informal trade is most likely occurring in production areas located along borders. Individual poultry farms supply eggs and meat to urban dwellers. Per capita meat consumption was high by developing countries' standards, an estimated thirteen kilograms annually. ", Table D.1.1, "The Federal Democratic Republic of Ethiopia: Statistical Appendix", p. 26. Camels also play a key role as pack animals in areas below 1,500 meters in elevation. }, 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 Investments in cotton production, as well as any other agricultural commodity, require considerable due diligence because of a variety of complicated issues, including landownership rights and the potential for conflict. The principal grains in Ethiopia are Teff, Wheat, Barley, Corn, Sorghum, and Millet. Ethiopias cotton production is insufficient to meet the growing demand from the textile and apparel sector. A lock ( A locked padlock ) or https:// means youve safely connected to the .gov website. This site contains PDF documents. 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 [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.". Their resistance to this change increased when Zemecha members campaigned for collectivization of land and oxen. 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. The Government of Ethiopia (GOE) has identified key priority intervention areas to increase productivity of smallholder farms and expand large-scale commercial farms. 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. 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. Area, Production and Farm Management Practices (Private Peasant Holdings, Belg Season) 2020/2021 (2013 E.C.) Land Use Distribution and Change in Lake Tana Sub Basin -- 23. 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. [21] It is estimated to number over 150 million in 20072008. However, the removal of arable land for conservation projects has threatened the welfare of increasing numbers of rural poor. Explain the main contribution, potentials, characteristics , and problems of Ethiopian agriculture. Ethiopia is endowed with abundant agricultural resources and has diverse agro-ecological zones. According to Infomineo (2016), the key agricultural sectors in Ethiopia are the following: Coffee & tea; Ethiopia has a great potential for coffee production, thanks to the country's abundant rainfall, optimum temperatures, conducive altitude, and fertile soil. 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. [7], The plains and low foothills west of the highlands have sandy and gray-to-black clay soils. Blue Nile makes about 80% by volume of the Great Nile River. 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. Taro, yams, and sweet potatoes are commonly grown in the same region as the ensete. Since the 2000s, Ethiopia has emerged as one of the fastest-growing economies in Africa. Total required investment costs for the IAIPs stand at U.S. $870 million and initial investment costs are estimated at U.S. $266 million. One way the government is hoping to improve cotton yields is with Genetically Engineered (GE) cotton. The study aimed to characterize the reproductive performances and physical characteristics of Blackhead Somali indigenous sheep breeds. The most important agricultural exports include coffee, hides and skins (leather products), Pulses, oil seeds, beeswax, and, increasingly, tea. Lithosols, Cambisols, Nitosols, Vertisols, Xerosols, Solonchaks, Fluvisols and Luvisols cover more than 80% of the country, and are the most important soils. Grain is an essential part of the Ethiopian diet. Ethiopia's major staple crops include a variety of cereals, pulses, oilseeds, and coffee. The 1977 famine also provided an impetus to promote conservation. According to the Economist Intelligence Unit (EIU), Ethiopia's GDP growth rate will increase by around 7.8% to 10% by 2023. [7], Livestock production plays an important role in Ethiopia's economy. A couple of U.S. investors have also entered the market. The industry began in 2004, when the government made an aggressive push for foreign investments by establishing a presence at major international floricultural events. Sandy desert soils cover much of the arid lowlands in the northeast and in the Ogaden of southeastern Ethiopia. Ploughing the land using these tools is ambiguous and time-consuming. D. espite the countr. Agro-processing equipment (e.g. 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. Contract farming, cluster approach and land consolidation, Horticulture (irrigation and urban farming), Climate resilient sustainable agricultural development. The government mobilized farmers and organized "food for work" projects to build terraces and plant trees. >. 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. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. 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. This method was widely used in Ethiopia and southern Ethiopia because it is recommended for soils requiring more than one ton of lime per acre and soils with a pH of less than 5.8 [15]. 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.