Demand Analysis Report- Federal Democratic

Republic of Ethiopia

Programme Management Unit (FTF-ITT)

National Institute of Agricultural Extension Management,
(An autonomous organization of Ministry of Agriculture & Farmers Welfare, Govt. of India)
Hyderabad 500 030, India
www.manage.gov.in
Contents
1

1.
2.

Chapter 1: An overview of country.

Chapter 2: An overview of agriculture and horticultural

3.
4.

sector, policies, programmes, priorities

Chapter 3: An overview of animal husbandry and fisheries
Chapter 4: Present status and challenges in agricultural

Page no.
03
05
08
10

extension, marketing, insurance, agriculture mechanization,

5.

food processing, infrastructure and any other relevant issues.

Chapter 5: Status of agricultural extension and research

19

6.

system.
Chapter 6: Public and private institutions and their relevance

22

7.

in agricultural development.
Chapter 7: Present capacity building programmes and

24

8.

potential areas.
Chapter 8: Training priorities of the country in Agriculture

28

and allied sectors

References

Chapter-1 Country Profile

Ethiopia is Africa's oldest independent country and its the second largest in terms of
population. Apart from a five-year occupation by Mussolini's Italy, it has never been colonised. It
has a unique cultural heritage, being the home of the Ethiopian Orthodox Church - one of the
oldest Christian churches - and a monarchy that ended only in the coup of 1974. It serves as a
symbol of African independence throughout the colonial period, and was a founder member of the
United Nations and the African base for many international organisations. Ethiopia has suffered
periodic droughts and famines that lead to a long civil conflict in the 20 th Century and a border
2

war with Eritrea. The country is self important to have the African Union at Addis Ababa, the
capital city of Ethiopia.
Ethiopia has a total land area of 1.13
million sq.km with a population of 86.5 million.
The country is divided into nine regions viz.,
Amhara, Tigray, Oromia, Afar, BenishangulGumuz, Gambela, Southern Nations, Nationalities,
and Peoples (SNNPR), Somali, Harari and two

Ethiopia can be divided into highlands

(39%) and lowlands (61%) using 1500-m
elevation as a crude threshold. While the
highlands typically have higher annual
rainfall than the lowlands, this is not always
the case (Coppock, 1994)

city-regions (Addis Ababa and Dire Dawa). The

regions divided into zones (this level has been
abolished in most regions), Woredas (districts, city
areas) and Kebeles (municipalities, suburbs).
Ethiopias economy and the well-being of its more
than 80 million citizens depend on the productivity
of its natural resources, principally land and water
that are used for production of crops and animals

Map of Ethiopia with Regions

that provide more than 40% of Ethiopias GDP.

Governance of these resources is shared between
the federal government and nine ethnic based
regional

governments.

The

decentralized

approach to government further extends public

sector oversight and involvement to district
(woreda) and local (kebele) levels. Since 2000,
road networks and electricity generation capacity
have expanded significantly. Government spending
as a %age of GDP is one of the highest in Africa.
Poverty remains very high, cell phone and
telecommunications use is limited, and mobility is
stifled due to insecure land tenure (Dorosh and
Rashid 2013).

The elevation of Ethiopia is between -190 and 4420 meters above sea level. Half the land
area is below 1150 meter and in between 680 and 1740 meters. Ethiopia has extreme geographic
differences in rainfall patterns. The annual average temperature in Ethiopia is between 5.6 and 31
C. The median annual average temperature is 23.2 C and half the land area has an annual
average temperature between 19.8 and 26.2 C. Ethiopia contains a number of large lakes. The
Rift Valley contains at least 8 major lakes running from the southwest to the northeast of the
country. Lake Tana in Amhara region is the largest lake in Ethiopia, and is the source of the Blue
Nile river. Most lakes have no surface water outlets, with the exceptions being Lakes Ziway, Tana,
Langano, Abbayaa, and Chamo (Awulachew et al., 2007).
Life expectancy in Ethiopia increased significantly from 43 in 1970 to 64 in 2013
(UNICEF, 2014). Likewise, over the same timeframe under-five mortality decreased from 24 to
6.4% (UNICEF, 2014), though the 2011 Ethiopia Demographic and Health Survey (EDHS)
estimated the rate to be 8.8% (CSA & ICF International, 2012). On average, rural households
experience a much higher proportion of stunting, wasting, and underweight than urban
households. Regional variation in child anthropometry estimates is drastic: stunting varies from
over 50% in Amhara, Tigray, and Afar to 22% in Addis Abba; wasting from 22% in Somali to less
than 5% in Addis Abba; and underweight from 40% in Afar to only 6% in Addis Abba (CSA &
ICF International, 2012).
Over a quarter of the population in Ethiopia have inadequate diets (26%); half of
households consume over 75% of calories from starchy staples (WFP, 2014). Poverty is associated
with a higher consumption of cereals, yet 57% of those in the poorest wealth index (by assets) still
consume an acceptable diet, suggesting that diet quality is not solely dependent on higher
incomes. An estimated 45% of food consumed in rural Ethiopia is self-produced by the household,
while urban residents consume about 90% of their food from vendors or shops (WFP, 2014)
Chapter-2
An overview of Agriculture Sector, Policies, Programmes, Priorities.
Agricultural Production System
Though having a large natural resource base and rich biodiversity agriculture in Ethiopia
remain basic. Irrigated land is meagre though large river and lake resources prevail in the country
and rainfed agriculture predominantly dominates. In this chapter an overview of agriculture in
Ethiopia, policies, programmes and priorities are presented.
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The backbone of Ethiopian economy is driven by its agricultural resources. Predominantly

a small holder farming systems prevails however, commercial farming have started in the country
in the recent past. The agriculture sector plays a central role in the life and livelihood of most
Ethiopians, where about 12 million smallholder farming households account for an estimated 95
% of agricultural production and 85% of all employment. Of the total number of farming
households, 25% are women-headed. Moreover, 40% of the farming households operate on less
than 0.5 ha, 64% on less than 1 ha, and 87% on less than 2 ha (Gebreselassie, 2007 in FAO, 2011).
As under rainfed agriculture, an average family of six persons requires around 2.5 to 2.8 ha to
meet annual household food requirements. Thus, it can be seen from the size of farms that the vast
majority of Ethiopias small-holder farmers are dependent, at least for a certain period of the year,
on purchased food (FAO, 2011)
Ethiopia is often perceived as a country of droughts, widespread poverty, and economic
stagnation. Indeed the country experienced severe famines in both the 1970s and the 1980s, which
resulted in a depletion of household assets and savings and caused excess mortality, estimated at
250,000 in 197274 and 590,000 in 198485 (Africa Watch 1991; de Waal 1997). Indeed, the
reality of Ethiopias agriculture and food security situation is complex because of variations across
space within Ethiopia as well as variations over time due to changes in policies, weather shocks,
and other factors. In large and heterogeneous countries such as Ethiopia, agricultural potential is
unevenly distributed over space, and the distribution of production patterns reflects this landscape.
Mapped zones of smallholder production systems have long been recognized as important in
Ethiopia precisely because of such landscape heterogeneity (for example, Westphal 1975; De
Pauw and Bruggeman 1988; Hurni 1998).
In Ethiopia most agricultural production
takes place in the Weyna Dega and Dega zones
(highland areas from 1,500 to 2,300 and from
2,300 to 3,200 meters above sea level), where
land productivity has traditionally coincided
with the densest rural populations. The crops
most suited to grow in the weyna dega and dega

Cereals (Teff, Corn, Wheat, Barley,Sorghum,

Millet, Oats, etc.); Pulses (Horse Beans,
Chick-Peas, Haricot Beans, Field Peas,
Lentils, Soybean, and Vetch); Oilseeds
(Linseed, Nigerseed, Fenugreek, Noug,
Rapeseed, Sunflower, Castor Bean,
Groundnuts, etc.), Stimulants (Coffee, Tea,
Chat, Tobacco, etc.) Fibers (Cotton, Sisal,
Flax, etc.)

zones are also the most commonly produced

crops in Ethiopia. Most producers in these zones
5

are smallholders occupying less than a hectare

of land per household.
Smallholder production is dominated by five major cereal crops accounting for almost three
quarters of the total cultivated area and about 68% of total production. Each of the major cereals Teff,
Maize, Wheat, Sorghum, and Barley has its own distribution, defined primarily by bioclimatic
ranges. Westphal (1975) identified four major farming systems for Ethiopia:
a.
b.
c.
d.

Seed Farming,
Enset planting,
Shifting Cultivation and
Pastoral complexes.
The seed farming complex focuses on the production of grain, particularly cereals, but also

pulses and oilseeds. Grain-based, seed-farming production systems are found throughout the
central, northern, and eastern highlands and involve the majority of Ethiopian small farmers.
Crop choice within the grain-based systems varies widely, with these systems found from
kolla (lowlands, between 500 and 1,500 masl) to wurch (highlands, between 3,200 and 3,700
masl), and in moisture conditions ranging from dry to wet. Similarly, the enset-planting complex
(in moist and wet dega and weyna dega) allows for flexibility of production whereby enset could
be the principal staple, a co-staple with cereals and/or tubers, or a minor component of cereal- or
tuber-based systems. Finally, shifting cultivation and pastoral complexes are most common in the
western and eastern lowlands, respectively. In the humid western lowlands (primarily moist kolla),
disease is a limiting factor for livestock. The arid and semiarid lowlands in the eastern part of the
country (mostly bereha, less than 500 masl) lack available moisture, which limits rainfed crop
production. In both areas, population densities are low, reflecting the low carrying capacities of
land resources under current technologies. In nutshell the production systems in Ethiopia are as
follows:
The production system is dominantly rain fed and irrigation contributes less than 5%. There are
two major production systems in the country viz., Crop-Livestock mixed Production Systems and
Pastoral and Agro-pastoral Production Systems
1. Crop Livestock mixed production systems
These areas are with better rainfall and accommodates about 70 % of the livestock and human
population
a. Cereal based mixed production system
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b. Cash crop based mixed farming systems

2. Pastoral and Agro-pastoral production system
These are areas which are dry, arid and semiarid and accommodate about 30 % of the livestock
population
Policy and Programmes
It is understood from different literature that the agricultural sector has been the priority of
Ethiopia since the early 1990s, when the Agricultural Development-led Industrialization (ADLI)
and related policy frameworks were adopted. Subsequently, the GoEs development policies and
strategies included in the Sustainable Development and Poverty Reduction Program (SDPRP)
provided the basis for the Plan for Accelerated and Sustainable Development to End Poverty
(PASDEP 2005 2010), which also adopted the goals and targets laid out in the Millennium
Development Goals. Based on the lessons learned and the countrys new long-term vision2 the
GoEs Growth and Transformation Plan (2010/2011 2014/2015) has been adopted to provide the
overarching framework guiding development endeavours. The GTPs vision for the economic
sector is to build an economy which has a modern and productive agricultural sector with
enhanced technology and an industrial sector that plays a leading role in the economy; to sustain
economic development and secure social justice; and, increase per capita income of citizens so
that the country reaches the level of middle-income by 2020.
Chapter-3
An overview of Horticulture, Animal Husbandry and Fisheries
The plant and animal resources of Ethiopia are the main source of livelihood for human
population. The horticulture, livestock and fisheries also play a major role in contributing to the
food security to the nation. In the recent years, in Ethiopia the horticulture is viewed as a sun
rising sector due to exports of its products like flowers. The other sector that is also considered
important is the livestock as it provides opportunity for both local consumption and exports of live
animals and other products. Fisheries mainly inland also support communities to supply with its
rich cheap animal protein during the large fasting season. This chapter provides a highlight on
these resources.
3.1 Horticulture
As indicated above horticulture is one of the key development sectors in Ethiopia as
production conditions in Ethiopia favour the cultivation of a wide variety of horticultural
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products. Given the diverse range of altitudes in combination with irrigation potential in different
parts of the country it is possible to produce virtually all tropical, sub-tropical and temperate
horticultural crops.
The total area of horticulture in Ethiopia is almost about 12,552 ha of land from which
floriculture, 80% foreign revenue earner of the sector, is practiced on only 1,442 ha of land. This
is only 11% of the developed horticulture land in the country. The country produces different
vegetables, temperate fruits, tropical fruits and roots and tubers. In addition to that within the span
of less than a decade, Ethiopia emerged as a global player in the cut flowers business. During the
past decade the floriculture sector in Ethiopia has developed considerably and Ethiopia is now the
second largest exporter of cut flowers in Africa after Kenya. In terms of employment, technology
transfer and generation of export revenue, the floriculture sector has significantly contributed to
Ethiopias economic development. For formerly unemployed Ethiopians who have jobs because
of the countrys burgeoning rose industry, they consider a rose is a rose and also a means for a
better life (EHDA and EHPEA, 2011).
The export value of cut flowers and cuttings from Ethiopia has shown a steady rise up to
more than USD 200 million in 2009 (EHDA and EHPEA, 2011).With a good mix of incentives
and active facilitation, the Government of Ethiopia took a non-existing flower sector and
developed it into millions of dollars from the export sector with more than 85,000 jobs created.
The sector is very high on the priority of the Government of Ethiopia, and so the suitable land for
investors has been prepared, creating a better business operating environment, as well as
facilitating adequate cold chain and logistics investments to ensure produce reaches regional and
global markets in an efficient manner.
The major market destination for the Ethiopian horticulture produce is Europe particularly
the Netherlands. However, there are over 100 international destinations for Ethiopian flowers,
vegetables, herbs, cuttings and fruits. Currently, the market destinations are widening as more
buyers are coming to Ethiopian producers since the quality and quantity of production is
increasing from time to time and these include American, Russian and other Middle East markets.
3.2 Livestock sector of Ethiopia
The livestock sector is an important subsector of Ethiopias economy in terms of its
contributions to both agricultural value-added and national gross domestic product (GDP).
Between 1995/96 and 2005/06, the livestock subsectors share averaged 24% of agricultural GDP
8

and 11% of national GDP (Ethiopia, NBE 2006). Accounting for a quarter of national and 40% of
agricultural GDP, livestock play a crucial role in national development. At more than 50 million,
Ethiopias livestock population is the largest in Africa and eighth largest globally. Mixed croplivestock farmers comprise more than 80% of the rural population and supply most of the
countrys food. And since 2010, the production of commercial livestock products meat and milk,
skins and hides, and poultry has increased by more than 50% (Stapelton, 2016). The livestock
sector is an integral part of the farming systems in the country. It is the source of many social and
economic values such as food, draught power, fuel, cash income, security and investment in both
the highlands and the lowlands/pastoral farming systems (FDRE, 2001).The recent livestock
population of Ethiopia estimates that the country has about 52.1 million heads of cattle, 24.2
million sheep, 22.6 million goats and 44.9 million poultry (MOA, 2013; Berihu et al., 2014)

3.3 Fisheries sector of Ethiopia

Artisanal freshwater fishery is one of the most important economic activities in Ethiopia,
(FAO, 2012). The inland water body of Ethiopia is estimated to encompass about 7,400 km 2 of
lake area and a total river length of about 7,000 km. As many other countries challenged in the
world, population rise urbanization, agricultural development, industrialization and other water
resource development activities have resulted in a decrease in the species diversity of freshwater
fish species (Dereje, 2014). Fishing contributed less than 1 % of the gross domestic product in
1987. A study reported that 15,389 tonnes were caught in 2001, only 30% of an estimated
potential of 51,481 tonnes (Wubne, 1991). Fisheries production is also under-exploited while
current demand exceeds supply by about four-fold.
Chapter-4
Agricultural Extension, Marketing, Insurance, Mechanization, Food Processing and
Infrastructure in Ethiopia
4.1 Agricultural Extension in Ethiopia
The website resources of Global Forum for Rural Advisory Services (GFRS) and Davis, et
al (2010) indicates that there are four major components of the Ethiopian extension system put in
9

place by the government as part of a five year plan (2005-2006) for accelerated and sustained
development to end poverty include the following:

Participatory Demonstration and Training Extension System (PADETES). The system was
introduced by the government in 1995 to provide a small amount of inputs through
packages provided directly to farm households. Some 35 to 40 % of farm households are
reached and served through the system with a low number of visits by public DAs

Farmer Training Centers (FTCs). Roughly 8,500 FTCs have been built at the kebele level.
These centers are staffed with Development Agents (DAs) and are responsible for
providing extension activities in rural areas

Agricultural Technical and Vocational Education. In 2000, the government invested

in agricultural and technical vocational education and training (ATVET) centers to train
DAs charged with carrying out agricultural extension activities with farm households. By
the close of 2008, the program had trained over 63,000 DAs at the diploma level.

Institutional Coordination. The rapid expansion of the extension system has brought with it
an administrative model to support an extensive set of responsibilities, adapting to 32
agro-ecological zones and to support a DA corps of over 60,000.
The country-wide enabling environment in which extension operates is critical to

extension efforts. Various aspects of the enabling environment may include seed, fertilizers
and other inputs, water management, credit systems, as well as farmer producer groups. Other
critical elements such as market enablers (transport, markets, value chains), and economywide enablers (government policy, infrastructure, strong institutions) could benefit extension if
properly aligned. Despite Ethiopia natural endowment in resources (e.g. water) and the many
government efforts to improve social welfare of it people, many constraints to extension and
agricultural production in general are assessed, leading to the conclusion that the enabling
environment requires strengthening, particularly in the areas of seed, market access, and
credit, if extension is to achieve its full potential impact. The government of Ethiopia has
taken steps to ensure that the countrys overall agriculture system, policies, and business
environment are working in line with extension approaches for greatest impact. Two specific
programs that are designed to strengthen the countrys enabling environment are the World
10

Bank Agricultural Growth Program and the Food Security Program. These programs are
seeking to analyze constraints within the country-wide enabling environment systems such as
seeds, soil health, water management, credits, and market access, and will look to strengthen
these systems with targeted investments.

There are opportunities for bringing NGO and private-sector expertise into the
implementation of extension services, and encouraging knowledge sharing and
collaboration between all groups that are already active in the field. Linkages in other
sectors need to be explored, and collaboration between extension and public health for
example could reap synergies and ultimately serve the Ethiopian public more effectively.

Challenges in Ethiopian Agricultural Extension

Enabling Environment
Agricultural Extension System always have generic issues like low investments, weak
research-extension linkage, lack of qualified manpower in developing and underdeveloped world
extension system and Ethiopia is not an exception. Davis et., al., (2010) opined that the
countrywide enabling environment in which extension operates is critical to the success of
extension efforts in fulfilling the government mandate of increased food security and the desire for
increases in farmer income. In consultations with stakeholders and extension experts, the enabling
environment was named as one of the greatest challenges facing the extension system.
Input availability (Seed, Fertilizer and Credit)
Around 12 to 15 % of farmers use improved wheat and maize; less than 1% of farmers use
improved seed for teff, barley, and sorghum (Spielman, Kelemework, and Alemu 2009). It is also
mentioned in several literature that the accessibility to improved seed is a major constraint.
Although private companies (such as Pioneer) exist, they play a very small role in producing and
distributing seed in Ethiopia. Today, obtaining fertilizer is both difficult and cost-prohibitive for
most smallholder farmers, yet productivity gains depend on this access.
Davis et al., (2010) indicates that smallholder access to fertilizer will be critical if Ethiopia
is to see continuing increases in productivity; staple crop yields are most severely limited by soil
44 degradation. Other soil-ameliorating options are also being promoted by the government and
11

others to improve the soil and reduce dependence on artificial fertilizers. A study conducted by
EEA/EEPRI (2006) notes that up to a third of farmers covered by PADETES have disadopted the
seed-fertilizer technology packages over time, likely due to the high cost of inputs, insufficient
credit and credit rationing, a lack of varieties with traits appropriate to farmers needs, and other
factors.
Currently, potential irrigable land in Ethiopia is clearly underdeveloped. Less than 6 % of
Ethiopias irrigable land is under irrigation, while figures for neighboring Sudan are 14 %, and for
Madagascar 32 %. Farmers access to credit (and financial services more broadly), however,
remains inadequate: of the estimated six million potential microfinance clients in Ethiopia, just
over one million are currently being served. There is also very significant regional variability in
the availability of finance institutes, and some regions (for example, Afar, Somali) have hardly
any access at all. Additionally, cultural constraints in certain regions also prevent farmers from
using microcredit. Land tenure in Ethiopia is directed entirely by the government, with
smallholder farmers leasing land from the government. This policy, while allowing for
government control of land resources, limits the ability and motivation of farmers to invest in their
farms and limits their ability to gain credit, using land as collateral. If todays farmers had
ownership rights, they could rent, sell, or mortgage their land. The Ethiopia Land Tenure and
Administration Program (ELTAP) has recently started a process of land registration and
certification, which is hoped will improve tenure security and investment. The GOE should
continue to push for these types of positive changes to land tenure policies.
4.2 Agricultural Marketing in Ethiopia
Currently, Ethiopian agricultural markets are characterized by very limited market support
services, coupled with extended market chains between producers and consumers, adding costs.
On the other hand, the expansion of global and local markets necessitates the fulfilment of
stringent quality requirements and supply sustainability by developing market services. These
include such areas as: standardization and grading, packaging, processing and food quality, safety,
and traceability, as well as other services such as financial, business development and market
information. Unfortunately, most of these market services are very limited or almost non-existent
in Ethiopia, which impedes the competitiveness of most agricultural value chains and therefore
their effective integration into regional and global markets (Web resources of Ethiopian
Agricultural Transformation Agency).
12

Moreover, in addition to low input utilization, agricultural production is highly susceptible

to adverse weather conditions that affect the quantity of surplus supplied to the market. Some
studies indicate that even in good harvest year, the average marketable surplus is not more than
28% of the total production (MoARD, 2005).
Until recently government policies, strategies and investment programs were mainly
focused on increasing agricultural production with a little attention to improving the performance
of agricultural marketing. Nowadays, the fundamental development objective of the country has
been based on building a free-market economic system that enables the country to develop
rapidly, extricate from dependence on food aid and enable the poor people to be the main
beneficiaries from economic growth. In line with this the government has developed long term
policy and strategic framework to improve the quality of farm produce and traded commodities,
reduce marketing costs and increase competition in the marketing sector. Among those policies
the policy that encourages the improvement of the role of the market in agricultural development
is the one which advocates for the importance of development of market-based agricultural system
and improvement of agricultural marketing systems through market driven production system;
improving standardization of agricultural products, the supply of market information system,
expanding and strengthening cooperatives, and strengthening private sector participation to enable
proper functioning of the agricultural marketing system.
Establishment of Ethiopian Commodity Exchange (ECX)
Website resources of The Ethiopia Commodity Exchange (ECX) inform that it is a new
initiative for Ethiopia and the first of its kind in Africa. The vision of ECX is to revolutionize
Ethiopias tradition bound agriculture through creating a new marketplace that serves all market
actors, from farmers to traders to processors to exporters to consumers. The ECX is a unique
partnership of market actors, the Members of the Exchange, and its main promoter, the
Government of Ethiopia. ECX represents the future of Ethiopia, bringing integrity, security, and
efficiency to the market. ECX creates opportunities for unparalleled growth in the commodity
sector and linked industries, such as transport and logistics, banking and financial services, and
others.
ECX assures all commodity market players the security they need in the market through
providing a secure and reliable End-to-End system for handling, grading, and storing
commodities, matching offers and bids for commodity transactions, and a risk-free payment and
13

goods delivery system to settle transactions, while serving all fairly and efficiently. ECX creates
trust and transparency through aggressive market data dissemination to all market actors, through
clearly defined rules of trading, warehousing, payments and delivery and business conduct, and
through an internal dispute settlement mechanism. ECX provides market integrity at three
important levels: the integrity of the product itself, the integrity of the transaction, and the
integrity of the market actors. The Ethiopia Commodity Exchange (ECX) commenced trading
operations in April 2008. ECX has invited membership of the agricultural and trade industry.
The Ethiopian Commodity Exchange was started to benefit and modernize the way
Ethiopia was trading its most valuable assets, its commodities. Ethiopia needed a change from
the traditional means of trading to better support the needs of all those involved in the trading and
production.
Before ECX was established agricultural markets in Ethiopia had been characterized by
high costs and high risks of transacting, forcing much of Ethiopia into global isolation. With only
one third of output reaching the market, commodity buyers and sellers tended to trade only with
those they knew, to avoid the risk of being cheated or default. Trade is done on the basis of visual
inspection because there was no assurance of product quality or quantity, this drove up market
costs, leading to high consumer prices. For their part, small-scale farmers, who produce 95 % of
Ethiopias output, came to market with little information and are at the mercy of merchants in the
nearest and only market they know, unable to negotiate better prices or reduce their market risk.
ECX is developing a new method of exchange and a safer one for all who trade on it.
A marketing system that coordinates better, that links faster, and that protects the interests
of both sides of the trade. It is time for a marketing system that is transparent, efficient, and
innovative, that will take Ethiopian agriculture into the new Millennium. Ethiopia, once a
commercial trading hub in antiquity linking markets of East and West, can again claim a place in
the global market arena. The Ethiopia Commodity Exchange, (ECX), is a marketplace, where
buyers and sellers come together to trade, assured of quality, delivery and payment. The vision of
ECX is to transform the Ethiopian economy by becoming a global commodity market of choice.
ECXs mission is to connect all buyers and sellers in an efficient, reliable, and transparent market
by harnessing innovation and technology, and based on continuous learning, fairness, and
commitment to excellence.
4.3 Application and Use of ICT
14

Although older extension approaches like Farmer Field School (FFS) are still use in many
places, Ethiopia could gain more by developing a foundation framework for ICT infrastructure to
build upon to strengthen the delivery of extension services.
The field-extension service has a strong foundation of FTCs and trained Development
Agents (DAs) already in place in the field. Roughly 8,500 FTCs have been created throughout
Ethiopia, and about 63,000 DAs have been trained in total. DAs and woreda staff have technical
skills and are generally trained as specialist. Extension agents and other agriculture staff receive
training through the 25 agricultural, technical, and vocational education and training colleges in
Ethiopia like the Agricultural Technical and Vocational Education Training (ATVET). However,
there are major soft skill gaps for Das and SMSs in the FTC and woreda, and their ability to
serve farmers is limited given a lack of practical skills. Therefore, DAs need training in a number
of dimensions: broader technology skills applicable to their local area, soft skills that enable
them to work with different types of farmers and to catalyze the development of farmer groups,
and business/ entrepreneurial skills that help to run the FTCs as revenue centers and to
demonstrate economic thinking to the customers. Additional training of DAs and SMSs in specific
ICT and extension training skills such as use of computers with internet access is needed.
4.4 Agricultural Insurance in Ethiopia
The country has experienced at least five major national droughts since 1980, along with
dozens of local droughts. Cycles of drought create poverty traps for many households, constantly
holding back efforts to build up assets and increase income. According to Ethiopia disaster
statistics (2008) the country stood 5th of the 184 draught exposed countries. The below presented
drought probability map better demonstrate the condition and reveals that most of the country is
prone to drought.
Ethiopia had been piloting the first Index insurance in the rainy season of the year 2006.
The entire country was insured against drought with the European reinsurer AXA Re against a
premium amounted US$ 930,000, was covered by World Food Programme (WFP). The cover
would provide a maximum payout of US$ 7.1m for severe droughts. However in the year under
cover rainfall was virtually normal throughout the country and there was no payout at all.
Nevertheless, according to WFP, the pilot project has evidenced the fact that transferring
catastrophic risks to global market is possible within the Ethiopian context (Balzer and Hess,
15

2009). The project had utilized an index derived from 10 years of rainfall data from 16 weather
stations across Ethiopia. According to the analysis made on the data, there is 80% correlation
between rainfall levels and the number of food aid beneficiaries in each year, suggesting that
rainfall is a reliable objective indicator of drought triggered vulnerability and social assistance
needs (Devereux and Guenter, 2007). The Public Financial Enterprises Agency of Ethiopia
(PFEA), Ethiopian Insurance Corporation (EIC), Agricultural Transformation Agency (ATA),
Kifiya Financial Technology (KFT), National Metrology Agency (NMA) and ITC University of
Twente (the Netherlands) launched a new crop insurance that covers 15 million smallholder
farmers in five years (Hasabe, 2016). NDVIs crop insurance is applied based on the inputs the
smallholder farmers spent to produce their crops. The farmers are expected to pay a risk premium
of around 10% of the total cost of the inputs such as fertilizer, basic seeds, herbicides and
pesticides they use to producing crops. And if that crop fails due to weather, the farmer will get
his/her total investment (100%) on inputs from the EIC. Studies show that currently an Ethiopian
smallholder farmer spends 2,500 to 3,000 birr on average on inputs to grow crops in one season
(Hasabe, 2016).
4.5 Agricultural Mechanisation in Ethiopia
Though Ethiopia has a long history of agricultural practices, the development of
agricultural mechanization is still minimal. Farm power is mainly dependent on oxen draft and
human muscle operating using traditional farm implements. Oxen pulled maresha is the dominant
farm implement in cereal based systems whereas handhoe is the main farm implement used in
agroforestry systems. The level of tractor based agricultural machinery use is relatively better in
wheat dominated cropping systems where harvesting and threshing are done using combiners. In
the country, there was no clear agricultural mechanization strategy till the recent draft developed
by the Ethiopian Agricultural Transformation Agency (ATA) and Ministry of Agriculture (MoA).
Agricultural Mechanization Research Directorate of EIAR
Agricultural mechanization research Directorate of EIAR has been involved in developing
and introducing mechanization technologies that are more efficient and compatible with the socio
economic condition of Ethiopian farmers. The research has developed different improved
mechanization technologies with a significant role in improving labour and land productivity,
timeliness, reduction of post harvest losses in various levels and producing quality for marketing
and industry. However except for few of them, the wider use of the technology is minimal owing
16

to the fact that the efforts made and attention given by the extension systems and various
stakeholders like NGOs were not to the level of bringing satisfactory and tangible results. To help
fill the gap, the directorate has been conducting a country wide mechanization study, where
documents were reviewed, field studies conducted and different organizations consulted. The
directorate also conducted a national mechanization workshop to share experiences and
information on status, challenges and opportunities for mechanization research and development
to create a common understanding among all stakeholders on mechanization technology sourcing,
multiplication and delivery and to establish a forum and develop an action plan/a roadmap for
setting

up

an

efficient

Agricultural

Mechanization

scheme

for

Ethiopia.

(http://www.eiar.gov.et/mechanization)
IFPRI (2016) indicates that only 9% of farmers in the Feed the Future regions of Ethiopia
used mechanization at some point during the agricultural year 2014/15. The study also indicated
that mechanized ploughing was most widespread (5%), while mechanized threshing and
harvesting was reported by 3 and 2 % of households, respectively. We further examine the uptake
of different forms of mechanization through a number of associations. The results show that farm
size and rural wages are positively associated with the adoption of mechanization, while
remoteness is negatively linked. These findings suggest that as Ethiopias economy transforms
and leads to higher rural wages, as well as with further development of its infrastructure, more
demand for mechanized agricultural services will likely arise. Having policies that actively assure
widespread availability of appropriate mechanized services at low cost, seem likely to benefit
Ethiopias agricultural transformation
4.6 Food Processing Industry in Ethiopia
Supermarkets do not have a significant market share in either cereals (one of the most
important food categories in Ethiopia) or processed food. Modern retail is a niche market for
cereals and processed food, where prices are higher because of higher quality and quality control.
However, the different types of outlets provide different products for the consumers in Addis
Ababa. The market for food products in Addis Ababa is generally unstable, as it is for Ethiopia as
a whole. The figures for inflation, food prices, and Consumer Price Indices show tremendous
negative impact on the financial situation of people in Ethiopia over recent years. Ethiopia
imported a total of 1.340 million USD of food products in 2011. Imports mainly enter Ethiopia via
three ports: Port of Sudan, Port of Djibouti (main port), and Port of Berbera (Somali).
17

The milling of cereals is mainly restricted to the milling of teff, wheat, and corn. Local
production of cereals in 2012 comprised 18 million tons, of which 3.5 million tons were of teff, 3
million tons of wheat, and 6 million tons of corn. In addition to local production, 1.5 million tons
(with a value of USD 471 million) were imported in 2012. The food-processing sector is by far the
largest manufacturing industry in Ethiopia, covering 39% of the gross value of production (GVP)
in 2009/2010 of large and medium size manufacturing industry; the GVP of the food industry
equals 16,220 Million ETB (900 Million USD). These 560 enterprises in the food industry, of
which 530 are private, provide 60,000 jobs; Grain millers and bakeries account for 370 out of
these 560 industries. The average GVP per industry equals 1,6 Million USD/year. Excluding
drinks the top products in food processing are flour (wheat) (314 ktons in 2010), sugar (283 ktons)
and biscuits (193 ktons). It also to be noted that none of the food products with a significant
contribution to the production volume shows a stable trend, implying a very unstable market.
The total production volume of food products (excluding drinks) in 2010 was 1144 ktons,
whereas in 2006 it was 728 ktons. The food processing sector in Ethiopia can be characterized by
lack of market demands and low competitiveness in the market, since companies are relatively
small in size and number and annual expenditure on processed food per capita in Addis does not
exceed 200 Birr. The country has a lot of potential from the supply side but is badly organised
with respect to connectivity, reliable supply (stable in quality and quantity), technology level and
knowledge. However there are various industries tackling this issue by setting up their own supply
chain
Chapter-5
Status of Agricultural Extension and Research system
5.1 Agricultural Extension System in Ethiopia
Extension in Ethiopia has been subject to radical policy shifts in the past 50 years, from
feudalism to Marxism to a free market system (Kassa 2005). Currently, extension is provided
primarily by the public sector, operating in a decentralized manner through which extension is
implemented at the woreda (district) level. Limited extension is conducted by NGOs, usually
working through the woreda-level Bureaus of Agriculture and Rural Development (BOARDs).
While commercialization of agriculture is seen by the government as a focal point for agricultural
development (Gebreab 2006), this market orientation is not fully operationalized (Gebremedhin,
Hoekstra, and Tegegne 2006). Instead, most of the government interventions favor food-security18

oriented rather than market-oriented approaches. In extension programs, little attention is paid to
gender, culture, youth, HIV/AIDS prevalence, agro ecosystem variance, or local demands
(Ashworth 2005; EEA/EEPRI 2006). Although gender training and mainstreaming take place in
some BOARDs, women-focused extension is limited, and gender considerations are missing at all
levels (Buchy and Basaznew 2005). Ethiopia has had government agricultural extension services
since the 1950s, when a model similar to the United States Land Grant approach was used, in
which universities reached out to communities with research-based knowledge and through adult
education. The Imperial Ethiopian College of Agriculture and Mechanical Arts (IECAMA)
provided extension services in addition to research and teaching.

In 1963, the Ministry of

Agriculture was established, and the mandate of extension provision was transferred to this
institution. The Ministry of Agriculture established extension departments at the headquarters and
provincial levels (Abate 2007).
During this time, several national development plans were devised, the last of which
supported small-scale farmers through comprehensive package programs (Comprehensive
Integrated Package Projects, or CIPPs), the most prominent of which were the Chilalo and
Wolayita Agricultural Development Units (CADU and WADU). CADU was established in Arsi to
improve living standards through increased production and infrastructure. The WADU program,
based in Wolayita, although still focused on improving living standards, based its approach on
agro ecological zones (Abate 2007).
5.2 Agricultural Research System in Ethiopia
Agricultural Research in Ethiopia began in Jimma and Ambo in 1952 and was extended to
the then College of Agriculture at Alemaya in 1957 and later in 1965 included Debre Zeit.
Realizing the importance of agricultural research in economic development the Ethiopian
government established the Institute of Agricultural Research (IAR) in 1966 as a semiautonomous organization under the general supervision of the Ministerial Board of Directors
(Zegeye, 2001).
Investments in agricultural research and development have doubled between 1993 and
2000 and then again between 2000 and 2001 peaking at 227 million ETB. This expenditure
growth has been primarily driven by government and donor funding to mainly the Ethiopian
Institute of Agricultural Research. ). From 2003, investment in agricultural R&D began to decline,
reaching 157 million birr or 70 million PPP dollars by 2008. Although the 2008 value of spending
19

was lower than 200102 levels, it was still significantly higher than the levels recorded in the
1990s, which averaged 85 million birr or 38 million PPP dollars (all in 2005 constant prices).
EIAR, which accounts for about half of Ethiopias agricultural R&D spending, conducts research
through a coordinated but de- centralized system encompassing a headquarters and 15 research
centers located across the country. EIARs mandate is broadly deined to include crops, livestock,
fisheries, forestry, and other natural resources. The institutes spending was relatively low in the
1990s but more than doubled between 2000 and 2001 from 72 to 161 million birr, or 32 to 71
million PPP dollars (all in constant 2005 prices). Thereafter expenditures began to decline,
reaching 76 million birr or 34 million PPP dollars in 2008. EIAR, known as the Ethiopian
Agricultural Research Organization (EARO) until 2005, was formed in 1997 through a merger of
the Institute of Agricultural Research (IAR) with several other research centers. Research capacity
at these predecessor agencies steadily rose from the 1970s, but from the mid-1990s Ethiopia
decentralized its agricultural research system, and a number of centers were transferred to regional
authorities resulting in a short- term decline in expenditures and staing levels. In 2001, Ethiopia
employed 501 FTE agricultural researchers, increasing to 646 FTEs in 2004 before contracting to
550 by 2008. In 2009, an additional 32 staf departed. EIAR had accounted for more than 80 % of
Ethiopias agricultural research staff capacity before 1997, but by 2008 its share had fallen to 42
%.
The agricultural research intensity ratio, or total public spending on agricultural R&D as a
%age of agricultural GDP, is a common indicator of comparative agricultural R&D spending
across countries. Ethiopias ratio rose sharply after 2000, reach- ing $0.65 in 2002. While this
level is still comparatively low, it relects the countrys increased spending on agricultural R&D at
that time. By 2008, however, the ratio had returned to 2000 levels (Figure 3). That year, for every
$100 of agricultural output, $0.27 was invested in agricultural R&D, which is very low compared
with other countries, such as Kenya and Tanzania whose ratios that year were $1.43 and $0.50
respectively. Another ratio, the number of agricultural researchers per million farmers, rose more
steadily in Ethiopia after the 1990s, reaching 43 FTEs in 2008.However, Ethiopias agricultural
research system has been confronted with various bottlenecks, including inadequate coordination,
insufficient institutional capacity, and limited funding to generate and make use of improved
technologies. Even by the African standard, Ethiopia has one of the youngest and least-tenured
pools of agricultural researchers with about 51% at BSc/BA level and 48% under 31 years of age.
20

By comparison, South Africa and Brazils BSc researchers comprise only 15% and 1% of their
national research systems, respectively (IFPRI, 2014).
Chapter-6
Public and Private institutions and their relevance in Agricultural development
6.1 Public Sector
Major government ministries, agencies, research and education institutions play an
important role in todays extension system in Ethiopia. These institutions provide extension
services through various departments and institutes listed below:
Public Extension Institutions
Ministry of Agriculture and Rural Development (MOARD)

Agricultural Marketing and Inputs Sector

Natural Resources Sector
Agricultural Development Sector
Agricultural Extension Department
Training and Vocational Education Department

Ministry of Trade and Industry

Ministry of Capacity Building

Ministry of Education

Ministry of Health

Ministry of Transport and Communication

Ministry of Finance and Economic Development

Food Security Coordination Bureau (FSCB)

Ethiopian Agricultural Transformation Agency (ATA)

Public Research and Education Institutions

Ethiopian Institute of Agricultural Research (EIAR)

Regional Agricultural Research Institute (RARI)
Ethiopian Development Research Institute (EDRI)
Ethiopian Economic Policy Research Institute (EEPRI)
Agricultural Technical and Vocational Education Training (ATVET)Sasakawa Africa Fund

for Extension (SAFE)

Haramaya University
Hawasa University
21

Bahir Dar University

The semi autonomous EIAR coordinates the decentralized agricultural research activities at
federal and regional research centers, and through higher education institutions.

Regional Level: Bureau of Agriculture and Rural Development (BOARD)

Woreda Level (District Level) : Office of Agriculture and Rural Development (OOARD)
Kebele Level: Farmer Training Centers (FTC)

6.1 Private Sector

The private sector is known to contribute to agricultural production through organized
markets and channels for seed, fertilizers and other farm inputs to farmers. In Ethiopia, the
overwhelming presence of the government in all areas of agriculture has limited private sector
expansion in previous years. The limited supply of farm inputs underscores the need for an
increased participation of other companies to alleviate this constraint. The government has put in
place policies favorable to private sector development, and domestic and foreign firms, smallscale rural entrepreneur, traders, transporters, and industry associations are emerging as a
potentially important force in the country. However, there are still a number of barriers that limit
private sector involvement. For example, it is difficult for new market entrants to build a
distribution network that can compete with that of the Ethiopian Seed Enterprise (ESE).
6.2 Non-Government Organisations
Ethiopia has a long tradition of informal community-based organizations that operate at
the local level and offer mutual socio-economic support to their members. Formal civil society
that is, organizations with legal personality did not exist until the 1973-74 and 1984-1985
famines when many more non-governmental organizations (NGOs) emerged with a focus on relief
and humanitarian services. The number of NGOs increase substantially after the downfall of the
Derg regime in 1991, and most recently the Government adopted the Proclamation to Provide for
the Registration and Regulation of Charities and Societies (CSP), the countrys first
comprehensive law governing the registration and regulation of NGOs. NGOs are becoming an
important feature of Ethiopias agricultural innovation system, and many are now investing
heavily in sustained agriculture and rural development. They operate at all levels: national,
regional, zonal, woreda, and kebele. In many rural areas, they collaborate with agricultural
bureaus or agricultural offices at the woreda level.
6.3 Farmer Based Organizations and Cooperatives
22

Farmer cooperatives in Ethiopia do not provide extension services directly to their

members; rather, they are a major source of both agricultural inputs and farm credits. They also
provide grain marketing services and supply consumer good to members at prices that compete
with local traders (Davis et al., 2009). Some cooperatives are involved in seed multiplication and
distribution, training of members in para-veterinary services and distribution of veterinary
medicines. Although the view among cooperative leaders is that these supposedly farmer-driven
organizations are not free to set their own agendas since it is the government that sets the
parameters within which cooperative programs operate (Mogues et al. 2009), these cooperatives
have played a significant role in improving members welfare.
Chapter-7
Present Capacity Building Programmes and Potential Areas
As described earlier there are different types of extension service providers in Ethiopia for
agricultural development and capacity building is one of the key activities and also earmarked
with targets. The government owned Farmers Training Centre at the Kebele level is the prominent
capacity building service provider followed by NGOs, national and international projects.
Alemayehu (2010) in his narration indicates that the Farmer Training Centres (FTC) are
the cornerstone of Ethiopias strategy to support small-scale farming as a business. The centres
were set up in 2002 in each rural kebele, the lowest unit of administration in the country (each
kebele has about 5,000 people). Each FTC is staffed by three extension agents. There are nearly
8,500 such centres throughout the country though perhaps understandably for such a new and
massive initiative, only about 2,500 are fully functional. The government plans to establish about
15,000 centres. The centres are governed by a management committee of between 7 and 10
extension agents and farmers. The committee is chaired by the kebele head, who is also a farmer.
At its monthly meetings, this committee plans, manages and evaluates the training and
demonstration programme. It also organizes farmers to help in setting up and maintaining the
demonstration fields.
The centres provide a wide range services: farmer training and extension services on
improved farming techniques (through training courses, exhibits, demonstration farms, field days
and farmer-to-farmer extension); market-oriented information and advisory services; meeting and
communication facilities; and seed and seedlings of new crops, vegetables, fruit and forage
varieties. The Ministry of Agriculture has developed some 20 training modules for use in the
23

centres. The centres are part of a system of agricultural services in each Kebele. The primary
service cooperative supplies inputs. A public animal-health clinic offers veterinary services.
Private providers do artificial insemination, treat livestock, spray crops, and rent out water pumps.
Innovative farmers organize their own field days. The training centres are also linked to research
centres in each Zone in Ethiopia. Many of these services complement what the training centres do.
Relations with them tend to be informal, though the training centres management committees are
increasingly coordinating their work. The use of farmer-to-farmer services is increasing, also with
coordination by the committee. As the FTC is an important. The challenges faced by Farmers
Training Centres of Ethiopia.
Budget constraints: Various efforts, funded by the government, donors and NGOs, aim to
improve both the training centres programmes and their ability to generate their own income.
Their ability to do so depends heavily on the abilities of the management committee and the
extension agents.
Delivery of services: Illiteracy among farmers, and limited funding and staff skills constrain the
centres ability to deliver training and other services. The centres try to complement their training
courses with practice-oriented activities such as demonstration sites, field days and exhibitions.
Staff turnover: The rapid turnover of extension agents hampers the development of strong
relations between the centres and the community. Many development agents are rapidly
transferred or promoted, while others leave the service to work with NGOs or private companies.
Administrative interference: Woreda administrations often interfere in training-centre matters,
for example, by ordering the staff to call farmers for meetings. Tired of such events, the farmers
often decline invitations to other types of meetings too. Such duties also cut the time that staff has
to support the farmers. The local administration should use other channels to reach its
constituents.
Relations with other service providers: Links between the training centres and other service
providers (notably cooperatives, private enterprises and research agencies, larger-scale farmers)
and actors such as commercial farms, still require improvement. The management committees can
also coordinate better with the innovative farmers who are involved in farmer-to-farmer extension.
Market orientation: The new Agricultural Growth Programme, funded by donors and the
government, aims to further develop the centres, notably in agribusiness development and market
information. Th is programme foresees the construction of a market warehouse in the village, as
24

well as market-oriented training. The village loudspeaker could be used to broadcast market
information.
The general training topics handled by the Farmers Training Centres are as follows:
i) nursery operators for fruits and coffee and ii) seed producers for cereals, beans/pulses and
vegetables iii) paravets, iv) private crop spraying and v) irrigation pump maintenance. In
marketing and processing, the project facilitates training for small scale dairy processing and
marketing and small scale processing and retail marketing of agricultural produce.
Agricultural Technical Vocational Education and Training (ATVET) for Development
Agents
CAADP (2013) in a study indicates that the present 25 ATVET colleges in Ethiopia
provide a 3-year regular training programme in the areas of animal science, plant science, natural
resources, animal health and cooperatives. So far about 72.000 DAs have been trained to provide
extension services to farmers at kebele level by working in the Farmer Training Centres. The DAs
are trained in five major areas: animal science, plant science, animal health, natural resource
management and cooperative promotion. Farmers training (mainly through ATVET graduates or
DAs and FTCs), improved access to agricultural inputs and products. Development and expansion
of markets are key support programmes that help these initiatives. In the current academic year,
20.434 trainees are attending their training provided by1.132 trainers.
Other training initiatives
Agricultural Training for Youth
Through this project local and relevant, high quality skills trainings will be developed and
implemented. Young people will be trained on vegetable farming, poultry keeping or agriculture.
This training doesnt only cover production techniques, but also processing, storage and marketing
crafts. Moreover, all trainees are educated to share their knowledge with at least 10 others in their
home village. Therefore, over 5500 youngsters were targeted through this programme.
Improving the Productivity and Market Success of Ethiopian Farmers (IPMS)
The Improving the Productivity and Market Success of Ethiopian Farmers (IPMS) project
was a five-year project funded by the Canadian International Development Agency (CIDA) and
implemented by the International Livestock Research Institute (ILRI) on behalf of the Ethiopian
Ministry of Agriculture (MoA). The project ended in April 2013. The project had different
interventions with capacity building as one of the major component. The capacity to innovate by
25

the value chain actors was identified as a key factor for a participatory smallholder market
oriented agricultural development. The project therefore focused on strengthening innovation
capacity of farmers, pastoralists, community-based and private sector organizations, and
agriculture and natural resource management public organizations, through technical and
entrepreneurial skills development and, facilitating linkages between relevant actors
Ethio-German Agricultural Training Center (ATC)
The Ethio-German Agricultural Training Center (ATC) is located in Kulumsa, about 170
km south-east of Addis Ababa. The centre works together with seven private-sector enterprises.
The training provided by ATC takes a holistic approach, while encompassing a broad range of
topics. These include rotation cropping, plant protection, irrigation and the sustainable use of
resources. The centre also teaches subjects such as business practices, administration, marketing
and value chains. Activities concentrate on the mechanised cultivation of cereals and potatoes, as
well as soil fertility and agricultural production systems for smallholder farmers.
(https://www.giz.de/en/worldwide/18908.html)
Sasakava Global 2000
Website resources of Sasakawa Global 2000 (SG-2000) indicates that SG2000-Ethiopia
use a participatory approach to establish training platforms where farmers can learn by doing and
adapt new technologies to their own needs and circumstances. A growing number of women
farmers are involved in the learning process, primarily through the use of Women Assisted
Demonstrations (WADs). SG2000-Ethiopia provides the inputs required for both Technology
Option Plots (TOPS) and WADs, as well as backstopping for the extension agents who provide
technical support and supervision to TOP and WAD farmers. A total of 348 TOPs and 522 WADs
were established in Ethiopia in 2010. As well as the five priority crops planned, these
demonstrations included five cereals, one legume and one vegetable crop.
National Poultry Training Centre
The National Poultry Training Centre, which will operate under the Ethiopian Institute of
Agricultural Research (EIAR), was officially launched on June 9, 2015 in Bishoftu, Debre Zeit. Its
establishment cost the government four million Birr while equipment worth 250,000 Euros was
contributed by the Dutch government and Holland-Africa Poultry Partners (HAPP).
Chapter-8
Training priorities of the country in Agriculture and allied sectors
26

In the last two decades, the agriculture and rural development policy of Ethiopia has been
aiming at enabling efficient use of modern agricultural technologies and practices among
smallholder farmers for increased production and productivity (Tefera et al., 2016). The strategies
to improve the livelihood have been manifold through research and extension linkages process
involving government, non government, cooperatives, farmer organisations and private players.
However, still the target set as per the vision of the government has not been achieved. Though
R&D institutions have technological packages the worrying factor will be the non adoption of
these practices by the farmers. In critical sense it can be viewed as the access to such improved
technologies are far reach for the subsistence farmers in Ethiopia. In these lines Tefera et al.,
(2016) argues that numerous factors could affect the decision to adopt a technology or packages of
technologies. One of the questions was why the model farmers remain islands of best performers
in the sea of poorly performing farmers. Quite often capacity building initiatives are looked upon
the present adoption rates of improved farming techniques and to switch on for marketing
extension and then delivering entrepreneurial skills. Before suggesting the demands for capacity
building it is wise to understand the adoption rates as in the box below:
In terms of adoption intensity of crop technology packages, findings show that in the 2013 season,
sampled farmers applied 71% of the potato technology package, 66% of the wheat technology
package, 60% of maize technology package, 52% of the teff technology package, 46% of the barley
technology package and 29% of the sorghum technology package (Tefera et al., 2016)

The study by Tefera et al., 2016 concludes that there is only partial adoption of the
technology packages in the study woredas. We argue that adoption plans based on agricultural
technology studies need to look beyond technologies alone and look at a mix of conditioning
factors. Lack of improved technologies, low adult literacy ratio and inappropriate training system
had been contributed for slow growth of agriculture (BoARD and SWHISA, 2006; Taddesse,
2007). The training priorities for Ethiopia on agriculture can be broadly classified based on the
existing target groups like Practicing farmers/farm women, rural youth and extension
functionaries (Development Agents). The key demand is on farmers and other stakeholders for
capacity building on training on relevant package of practices for cereals, oilseeds, vegetables,
fruits, dairy, poultry and fishery. Apart from them group approaches, climate resilient agriculture,
group marketing and entrepreneurship will be the key for successful agriculture in the country.
Crop Production
27

It is well understood that crop productivity per unit area of land in Ethiopia remains very
low due to various constraints including the limited use of appropriate productivity boosting
technologies and appropriate crop production husbandry practices. Crop pests and diseases do also
contribute to the low level of productivity and huge post-harvest losses of up to 30% (web
resources of FAO). For the majority of the smallholder producers, the economic benefit derived
from the cropping enterprise is unsatisfactory because of the limited level of value addition to the
produce and the inadequate integration with market. Training priorities at the field level are on the
following:
a. Use of improved varieties
b. Crop diversification
c. Package of Practices for improving crop productivity ( for cereals, pulses, oil seeds, fruits
d.
e.
f.
g.
h.
i.
j.
k.

and vegetables)
Use of farm based resources effectively
Integrated farming systems
Crop diversification and seed production techniques
Use of improved varieties and hybrids
Integrated Nutrient Management
Integrated pest and disease management
Use of bio fertilizers
Application of micro nutrients

Priority area 2 Livestock and fisheries

The livestock sector makes substantial contributions to the agricultural GDP (about 25%) and
National GDP (>11%). However, there are challenges that undermine the benefits that the sector
could offer for economy. The countrys huge livestock potential had not been put into maximum
use. Factors including lack of institutional capacities and improved technologies, limited
availability, inadequate credit support systems and market structure, inefficient coordination and
capacity of the stakeholders across the value chains, shortage of quality livestock feed, and
livestock diseases reduced livestock productivity. The country also could not utilize the huge
livestock and livestock products export potential due to lack of capacity to meet international
safety and sanitary standards. To countervail the above gaps and shortcomings, the Ethiopian
Government has emphasized the development of the sub-sector and accordingly developed a
livestock master plan that intends to improve livestock productivity, develop livestock value
chains and improve the sanitary standards and regulatory frameworks. The training priority in this
vital sector will be towards
28

a.
b.
c.
d.
e.
f.
g.
h.
i.
j.

Improved feeding techniques

Farm made Feed preparation
Disease management
Use of hygienic practices for clean milk production
Probiotics in dairy
Mineral supplementation
Intensive poultry system
Intensive goatary ( Broiler goats)
Chinese hatchery for fish seed production or Fibre reinforced plastic hatchery systems
Polyculture systems
Marketing techniques will be another key training area that needs to be addressed. In

fisheries the main focus should be on the post-harvest handling and management and development
of marketing channels and linkages. Marketing groups needs to be formed and credit should be
been made available through a micro finance institution for the purchase of motorized fishing
boats.
Agricultural Enterprises
There is another area that small farmers can touch upon in Ethiopia is on remunerative
region enterprises like Mushroom cultivation, honey bee, lac, resin, bee keeping and many others.
Though these enterprises are prevailing in Ethiopia there is a need to adopt improved practices for
making more profits. For example Oxfam indicates that Beekeeping is an important economic
activity in Ethiopia, employing up to two million people. However, the yield and quality of the
honey is low, as people use outdated methods.
Sustainable natural resource management
It is estimated that as high as 80 % of Ethiopias natural resource base is suffering some
level of degradation with indigenous tropical forest disappearing at an estimated 3.6 % in the
highlands and 1.2 % over the whole country. Increased land degradation is caused by poverty,
population pressure, inappropriate use and management, inadequate inputs including nutrient
recycling, unsuitable farming and grazing practices, absence of appropriate technologies and land
use plans, inefficient markets and other barriers. Although the Government of Ethiopia has
embarked on different programs and projects to promote natural resources management practices,
land degradation, inefficient agricultural water management is still prevalent. External technical
support and significant investments are required to reverse the situation and use the scarce water
resources efficiently increase water productivity. Lack of accurate and up-to-date information also

29

constrains appropriate decision-making for land and water resources development. Sustainable
natural resource management experiences will be the key to support in this area.

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