Agriculture in Ethiopia

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 2002–2003, and agriculture remains the Ethiopian economy's most important sector. Ethiopia has great agricultural potential because of its vast areas of fertile land, diverse climate, generally adequate rainfall, and large labor pool. Despite this potential, however, Ethiopian agriculture has remained underdeveloped. 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. 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. Consequently, the country faced a famine that resulted in the death of nearly 1 million people from 1984 to 1986. An additional challenge that contributes to lowered agricultural productivity is woody plant encroachment. 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 beneficial climate in the Highlands of Ethiopia also enabled irrigation and other advanced agricultural technology. Regular and reliable harvests helped generate stable tax income that led to relatively strong governmental structures that were ultimately the reason that Ethiopia was the only country not to be colonized in the late-nineteenth century ‘Scramble for Africa’ apart from Liberia. 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. Moreover, the emperor's inability to implement meaningful land reform perpetuated a system in which aristocrats and the church owned most of the farmland and in which most farmers were tenants who had to provide as much as 50% of their crops as rent. 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. As a result, up to 200,000 Ethiopians perished. 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. In 1971 the Ministry of Agriculture introduced the Minimum Package Program (MPP) to bring about economic and social changes. The MPP included credit for the purchase of items such as fertilizers, improved seeds, and pesticides; innovative extension services; the establishment of cooperatives; and the provision of infrastructure, mainly water supply and all-weather roads. The program, designed for rural development, was first introduced in a project called the Chilalo Agricultural Development Union. The program later facilitated the establishment of similar internationally supported and financed projects at Ada'a Chukala (just south of Addis Ababa), Welamo, and Humera. By 1974 the Ministry of Agriculture's Extension and Project Implementation Department had more than twenty-eight areas with more than 200 extension and marketing centers. 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. Imperial government policy permitting investors to import fertilizers, pesticides, tractors and combines, and (until 1973) fuel free of import duties encouraged the rapid expansion of large-scale commercial farming. As a result, agriculture continued to grow, albeit below the population growth rate. 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. Agricultural productivity under the Derg continued to decline. 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. During the same period (1973–87), population increased at an average annual rate of 2.6 percent (2.4 percent for 1980–87). 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. 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. There was much debate as to whether or not these reforms were genuine and how effectively they could be implemented. Nonetheless, agricultural output rose by an estimated 3 percent in 1990–91, almost certainly in response to the relaxation of government regulation. This modest increase, however, was not enough to offset a general decrease in GDP during the same period. ==Land use==

Of Ethiopia's total land area of 1,221,480 square kilometers, the government estimated in the late 1980s that 15 percent was under cultivation and 51 percent was pasture. It was also estimated that over 60 percent of the cultivated area was cropland. Forestland, most of it in the southwestern part of the country, accounted for 4 percent of the total land area, according to the government. 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 population in the lowland peripheries (below 1,500 meters) is nomadic, engaged mainly in livestock raising. Sandy desert soils cover much of the arid lowlands in the northeast and in the Ogaden of southeastern Ethiopia. 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. These areas are used by pastoralists who move back and forth in the area following the availability of pasture for their animals. This has raised fears of food being exported to more prosperous countries while the local population faces its own shortage. ==Land reform==

Until the 1974 revolution, Ethiopia had a complex land tenure system, which some have described as feudal. In Wollo Province, for example, there were an estimated 111 types of land tenure. 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. Another major component of the Derg's agricultural policy was the development of large-scale state farms. 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. By 1989, the area covered by the State Farms had grown to a total of 220,000 hectares. However, despite substantial investments and subsidies, State Farms provided only 4.2% of the cereal production in 1988–89. 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. 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. In addition, increased peasant consumption caused shortages of food items such as teff, wheat, corn, and other grains in urban areas. 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. 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. 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. 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 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. 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. There also was concern that villagization could have a negative impact on fragile local resources, accelerate the spread of communicable diseases, and increase problems with plant pests and diseases. 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. ==Agricultural production==

The effect of the Derg's land reform program on food production and its marketing and distribution policies were among two of the major controversies surrounding the revolution. 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. Ethiopia produced in 2018: • 7.3 million tons of maize (17th largest producer in the world); • 4.9 million tons of sorghum (4th largest producer in the world); • 4.2 million tons of wheat; • 2.1 million tons of barley (17th largest producer in the world); • 1.8 million tons of sweet potato (5th largest producer in the world); • 1.4 million tons of sugar cane; • 1.3 million tons of yam (5th largest producer in the world); • 988 thousand tons of broad bean; • 982 thousand tons of millet; • 743 thousand tons of potato; • 599 thousand tons of vegetable; • 515 thousand tons of chick pea (6th largest producer in the world); • 508 thousand tons of banana; • 470 thousand tons of coffee (6th largest producer in the world); • 446 thousand tons of cabbage; • 374 thousand tons of pea (20th largest producer in the world); • 322 thousand tons of onion; • 301 thousand tons of sesame seed (7th largest producer in the world); • 294 thousand tons of bell pepper; • 172 thousand tons of lentil (11th largest producer in the world); • 144 thousand tons of rice; • 143 thousand tons of peanut; • 140 thousand tons of cotton; • 124 thousand tons of garlic; • 102 thousand tons of mango (including mangosteen and guava); • 101 thousand tons of linseed (7th largest producer in the world); In addition to smaller productions of other agricultural products. ==Agricultural Goals: 2011-2015==

The Ethiopian Government set up the Growth and Transformation Plan (GTP) to reach certain goals between 2011 and 2015. Primarily, growth in the market should reach 8.1 percent per year during this time frame. 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. In addition, it is hoped that the number of key crops are doubled from 18.1m metric to 39.5m metric tonnes. These programs should also result in Ethiopia getting to middle income status by 2025. Major cash crops Coffee The most important cash crop in Ethiopia was coffee. 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. By 1976 coffee exports had recovered, and in the five years ending in 1988–89, 44% of the coffee grown was exported, accounting for about 63% of the value of exports. Domestically, coffee contributed about 20% of the government's revenue. Approximately 25% of Ethiopia's population depended directly or indirectly on coffee for its livelihood. 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. Some estimates indicated that yields on peasant farms were higher than those on state farms. 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. 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. However, beginning in 1987 the decline in world coffee prices, reduced Ethiopia's foreign-exchange earnings. 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. 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. In 2006–2007 (the latest year available), exports of oilseeds accounted for 15.78% of export earnings (or million 187.4 Birr) and pulses 5.92% (or 70.3 million Birr). Flowers Ethiopia's flower industry has become a new source for export revenue. The industry began in 2004, when the government made an aggressive push for foreign investments by establishing a presence at major international floricultural events. Since then, export earnings from this sector have grown to about US$65 million in 2006–07 and are projected to double over the next few years. 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. As a result, a number of Indian entrepreneurs are relocating to Ethiopia to develop its thriving flower industry which has led to gains in market share at the expense of neighboring countries. Khat 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. In 2006–2007 (the latest year available), exports of chat accounted for 25% of export earnings (or 8oo million Birr). Sorghum, millet, and corn Sorghum, millet, and corn are cultivated mostly in warmer areas at lower altitudes along the country's western, southwestern, and eastern peripheries. Sorghum and millet, which are drought resistant, grow well at low elevations where rainfall is less reliable. Corn is grown chiefly between elevations of 1,500 and 2,200 meters and requires large amounts of rainfall to ensure good harvests. These three grains constitute the staple foods of a good part of the population and are major items in the diet of the nomads. This increase has been in large part thanks to initiative of the Dutch and Israeli NGOs SNV and Fair Planet (respectively), as well as the local ISSD Ethiopia initiative. Livestock Livestock production plays an important role in Ethiopia's economy. Estimates for 1987 indicated that livestock production contributed one-third of agriculture's share of GDP, or nearly 15 percent of total GDP. In the 2006–2007 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. It is estimated to number over 150 million in 2007–2008. 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. For the later two Regions, estimated numbers vary greatly between conventional and aerial censuses, but total less than 15% of the non-nomadic Regions. Though the raising of livestock always has been largely a subsistence activity, intensive, factory farm facilities are gaining in popularity and are present in Addis Ababa and Debre Zeit, run by Ethiopian agribusiness ELFORA. Ethiopia has great potential for increased livestock production, both for local use and for export. However, expansion was constrained by inadequate nutrition, disease, a lack of support services such as extension services, insufficient data with which to plan improved services, and inadequate information on how to improve animal breeding, marketing, and processing. 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. 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. During Derg rule, veterinary stations were opened at Bahir Dar, Bedele, and Bishoftu to provide treatment and vaccination services. and the remaining 30 percent were kept by nomadic pastoralists in the lowland areas. Meat and milk yields are low and losses high, especially among calves and young stock. Contagious diseases and parasitic infections are major causes of death, factors that are exacerbated by malnutrition and starvation. Recurring drought takes a heavy toll on the animal population, although it is difficult to determine the extent of losses. Practically all animals are range-fed. 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. 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. About three-quarters of the total sheep flock is in the highlands, whereas lowland pastoralists maintain about three-quarters of the goat herd. Both animals have high sales value in urban centers, particularly during holidays such as Easter and New Year's Day. and cattle herding still figures among the goods listed in the DOL's List of Goods Produced by Child Labor or Forced Labor published in December 2014. Researchers found however that, since transhumance takes place in summer, during school holidays, the transhumance in itself does not affect schooling. Young herders take their text books of the upcoming school year to the grazing grounds. Among the popular games on the grasslands, football (introduced via schools) tends to replace the traditional game. 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. Hence, fewer people send their cattle in transhumance. == Traditional farming tools in Ethiopia ==

Almost all farming tools in Ethiopia are traditional and made from different types of wood. These tools includes sickle, pick axe, plough shaft, ploughshare, plow, beam and animal force as a machines. The plough shaft, beam and ploughshare are made of wood and the sickle, pick axe, plow are made of metal. Ploughing the land using these tools is ambiguous and time-consuming. According to Ethiopia farming, this ploughing the land to prepare the soil for sow requires around two quarter of a year. ploughing the land to soften the land takes three months and from sowing and seedling to the harvesting of the crops requires three to four months. Ethiopian farmers plough their land by combining the above tools for such three months to get yearly consumed food. The major product in are teff, wheat, maize, sesame, Niger, linseed etc. in addition to these cereals, they produce different types of fruits and coffee which are not seasonal. ==Government marketing operations==

Private traders and the Agricultural Marketing Corporation (AMC), established in 1976, marketed Ethiopia's agricultural output. The AMC was a government agency whose objective was to influence the supply and price of crops. It purchased grain from peasant associations at fixed prices. 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. State farms sold their output to the AMC. Although the AMC had agents in all regions, it was particularly active in the major cereal producing regions, namely, Gojjam, Shewa, Arsi, and Gondar. In 1981–82, 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. The government's price controls and the AMC's operations had led to the development of different price systems at various levels. For instance, the 1984–85 official procurement price for 100 kilograms of teff was 42 birr at the farm level and 60 birr when the AMC purchased it from wholesalers. 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. 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. ==See also==