Agriculture in Ethiopia

Agriculture in Ethiopia is the foundation of the country's economy, accounting for half of gross domestic product (GDP), 83.9% of exports, and 80% of total employment.

Ethiopia's agriculture is plagued by periodic drought, soil degradation caused by overgrazing, deforestation, high population densitycitation needed, high levels of taxation and poor infrastructure (making it difficult and expensive to get goods to market). Yet agriculture is the country's most promising resource. A potential exists for self-sufficiency in grains and for export development in livestock, grains, vegetables, and fruits. As many as 4.6 million people need food assistance annually.

Agriculture accounts for 46.3% of the GDP, 83.9% of exports, and 80% of the labour force. Many other economic activities depend on agriculture, including marketing, processing, and export of agricultural products. Production is overwhelmingly of a subsistence nature, and a large part of commodity exports are provided by the small agricultural cash-crop sector. Principal crops include coffee, pulses (e.g., beans), oilseeds, cereals, potatoes, sugarcane, and vegetables. Exports are almost entirely agricultural commodities, and coffee is the largest foreign exchange earner. Ethiopia is Africa's second biggest maize producer. Ethiopia's livestock population is believed to be the largest in Africa, and in 2006/2007 livestock accounted for 10.6% of Ethiopia's export income, with leather and leather products making up 7.5% and live animals 3.1%.



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.



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.


Most agricultural producers are subsistence farmers with small holdings, often broken into several plots. Most of these farmers lived in the Ethiopian Highlands, mainly at elevations of 1,500 to 3,000 meters. There are two predominant soil types in the highlands. The first, found in areas with relatively good drainage, consists of red-to-reddish-brown clayey loams that hold moisture and are well endowed with needed minerals, with the exception of phosphorus. These types of soils are found in much of the Southern Nations, Nationalities, and People's Region (SNNPR). The second type consists of brownish-to-gray and black soils with a high clay content. These soils are found in both the northern and the southern highlands in areas with poor drainage. They are sticky when wet, hard when dry, and difficult to work. But with proper drainage and conditioning, these soils have excellent agricultural potential. According to the Central Statistical Agency (CSA), in 2008 the average Ethiopian farmer holds 1.2 hectares of land, with 55.13% of them holding less than 1.0 hectare.

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.




As of 2008, some countries that import most of their food, such as Saudi Arabia, had begun planning the development of large tracts of arable land in developing countries such as Ethiopia. This has raised fears of food being exported to more prosperous countries while the local population faces its own shortage.

Land reform in Ethiopia

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.

By the mid-1960s, many sectors of Ethiopian society favored land reform. University students led the land reform movement and campaigned against the government's reluctance to introduce land reform programs and the lack of commitment to integrated rural development. Following their rise to power, on March 4, 1975 the Derg proclaimed their land reform program. The government nationalized rural land without compensation, abolished tenancy, forbade the hiring of wage labor on private farms, ordered all commercial farms to remain under state control, and granted each peasant family so-called "possessing rights" to a plot of land not to exceed ten hectares. Tenant farmers in southern Ethiopia, where the average tenancy was as high as 55% and rural elites exploited farmers, welcomed the land reform. But in the northern highlands, where title to farm land was shared amongst members of descent groups, many people resisted land reform. Despite the Derg's efforts to reassure farmers that land reform would not affect them negatively, northerners remained suspicious of the new government's intentions. Their resistance to this change increased when Zemecha members campaigned for collectivization of land and oxen.

Government attempts to implement land reform also created problems related to land fragmentation, insecurity of tenure, and shortages of farm inputs and tools. Peasant associations often were periodically compelled to redistribute land to accommodate young families or new households moving into their area. The process meant not only smaller farms but also the fragmentation of holdings, which were often scattered into small plots to give families land of comparable quality. Consequently, individual holdings were frequently far smaller than the permitted maximum allotment of ten hectares. A 1979 study showed that around Addis Ababa individual holdings ranged from 1.0 to 1.6 hectares and that about 48 percent of the parcels were less than one-fourth of a hectare in size. Another study, of Dejen awraja (subregion) in Gojjam, found that land fragmentation had been exacerbated since the revolution. For example, during the pre-reform period, sixty-one out of 200 farmer respondents owned three or four parcels of land; after the reform, the corresponding number was 135 farmers.

In 1984 the founding congress of the Workers' Party of Ethiopia (WPE) emphasized the need for a coordinated strategy based on socialist principles to accelerate agricultural development. To implement this strategy, the government relied on peasant associations and rural development, cooperatives and state farms, resettlement and villagization, increased food production, and a new marketing policy. Despite government efforts, farmers responded less than enthusiastically. While by 1988 a total of 3600 Service Cooperatives were serving 4.4 million households and almost 4000 Producer cooperatives comprising 302,600 households had been founded, in that year they represented only 5.5% of national cereal production.

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. Since the fall of the Derg, there have been a number of initiatives to improve the food supply, which include research and training by the Ethiopian Institute of Agricultural Research.

Major cash crops

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.

Ethiopia's coffee is almost exclusively of the arabica type, which grows best at altitudes between 1,000 and 2,000 meters. Coffee grows wild in many parts of the country, although most Ethiopian coffee is produced in the Oromia Region (63.7%) and in the SNNPR (34.4%), with lesser amounts in the Gambela Region and around the city of Dire Dawa. The amount of coffee inspected in the fiscal year 2007/2008 by the Ethiopian Coffee and Tea Authority (ECTA) was 230,247 tons, a decrease of almost 3% from the previous fiscal year's total of 236,714 tons.

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 14,000-15,000 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.

Before the Ethiopian Revolution, pulses and oilseeds played an important role, second only to coffee, in the country's exports. In EFY 1974/75, pulses and oilseeds accounted for 34% of export earnings (about 163 million Birr), but this share declined to about 3% (about 30 million Birr) in EFY 1988/89. Three factors contributed to the decline in the relative importance of pulses and oilseeds. First, the recurring droughts had devastated the country's main areas where pulses and oilseeds were grown. Second, because peasants faced food shortages, they gave priority to cereal staples to sustain themselves. Finally, although the production cost of pulses and oilseeds continued to rise, the government's price control policy left virtually unchanged the official procurement price of these crops, thus substantially reducing net income from them. In EFY 2007/2008, the CSA reported that 17,827,387.94 quintals of pulses were produced on 1,517,661.93 hectares, an increase from the 15,786,215.3 quintals produced on 1,379,045.77 hectares. In the same fiscal year, 707,059.29 hectares under cultivation produced 6,169,279.99 quintals of oilseeds, an increase from the previous year of 4,970,839.57 quintals grown on 741,790.98 hectares.1 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).

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.1

Another new source for export revenue is the production of khat, 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 khat accounted for 7.8% of export earnings (or 92.8 million Birr).

Cotton is grown throughout Ethiopia below elevations of about 1,400 meters. Because most of the lowlands lack adequate rainfall, cotton cultivation depends largely on irrigation. Before the revolution, large-scale commercial cotton plantations were developed in the Awash Valley and the Humera areas. The Tendaho Cotton Plantation in the lower Awash Valley was one of Ethiopia's largest cotton plantations. Rain-fed cotton also grew in Humera, Bilate, and Arba Minch. Since the revolution, most commercial cotton has been grown on irrigated state farms, mostly in the Awash Valley area. Production jumped from 43,500 tons in 1974/75 to 74,900 tons in 1984/85. Similarly, the area of cultivation increased from 22,600 hectares in 1974/75 to 33,900 hectares in 1984/85.

Major staple crops

Ethiopia's major staple crops include a variety of cereals, pulses, oilseeds, and coffee. Grains are the most important field crops and the chief element in the diet of most Ethiopians. The principal grains are teff, wheat, barley, corn, sorghum, and millet. The first three are primarily cool-weather crops cultivated at altitudes generally above 1,500 meters. Teff, indigenous to Ethiopia, furnishes the flour for enjera, an sourdough pancakelike bread that is the principal form in which grain is consumed in the highlands and in urban centers throughout the country. Barley is grown mostly between 2,000 and 3,500 meters. A major subsistence crop, barley is used as food and in the production of tella, a locally produced beer.

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.

Pulses are the second most important element in the national diet and a principal protein source. They are boiled, roasted, or included in a stew-like dish known as wot, which is sometimes a main dish and sometimes a supplementary food. Pulses, grown widely at all altitudes from sea level to about 3,000 meters, are more prevalent in the northern and central highlands. Pulses were a particularly important export item before the revolution.

The Ethiopian Orthodox Church traditionally has forbidden consumption of animal fats on many days of the year. As a result, vegetable oils are widely used, and oilseed cultivation is an important agricultural activity. The most important oilseed is the indigenous Niger seed (neug), which is grown on 50 percent or more of the area devoted to oilseeds. Niger seed is found mostly in the northern and central highlands at elevations between 1,800 and 2,500 meters. Flaxseed, also indigenous, is cultivated in the same general area as Niger seed. The third most important oilseed is sesame, which grows at elevations from sea level to about 1,500 meters. In addition to its domestic use, sesame is also the principal export oilseed. Oilseeds of lesser significance include castor beans, rapeseed, peanuts, and safflower and sunflower seeds. Most oilseeds are raised by small-scale farmers, but sesame was also grown by large-scale commercial farms before the era of land reform and the nationalization of agribusiness.

Ensete, known locally as false banana, is an important food source in Ethiopia's southern and southwestern highlands. It is cultivated principally by the Gurage, Sidama, and several other ethnic groups in the region. Resembling the banana but bearing an inedible fruit, the plant produces large quantities of starch in its underground rhizome and an above-ground stem that can reach a height of several meters. Ensete flour constitutes the staple food of the local people. Taro, yams, and sweet potatoes are commonly grown in the same region as the ensete.

The consumption of vegetables and fruits is relatively limited, largely because of their high cost. Common vegetables include onions, peppers, squash, and a cabbage similar to kale. Demand for vegetables has stimulated truck farming around the main urban areas such as Addis Ababa and Asmera. Prior to the Revolution, urbanization increased the demand for fruit, leading to the establishment of citrus orchards in areas with access to irrigation in Shewa, Arsi, Hararghe, and Eritrea. The Mengistu regime encouraged fruit and vegetable production. Fresh fruits, including citrus and bananas, as well as fresh and frozen vegetables, became important export items, but their profitability was marginal. The Ethiopian Fruit and Vegetable Marketing Enterprise, which handled about 75 percent of Ethiopia's exports of fruits and vegetables in 1984-85, had to receive government subsidies because of losses.

Ethiopia's demand for grain continued to increase because of population pressures, while supply remained short, largely because of drought and government agricultural policies, such as price controls, which adversely affected crop production. Food production had consistently declined throughout the 1980s. Consequently, Ethiopia became a net importer of grain worth about 243 million Birr annually from 1983/84 to 1987/88. The food deficit estimate for the 1985/89 period indicated that production averaged about 6 million tons while demand reached about 10 million tons, thus creating an annual deficit of roughly 4 million tons. Much of the food deficit was covered through food aid. Between 1984/85 and 1986/87, at the height of the drought, Ethiopia received more than 1.7 million tons of grain, about 14 percent of the total food aid for Africa. In addition, Ethiopia spent 341 million Birr on food purchases during the 1985-87 period.


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.1

Although varying from region to region, the role of livestock in the Ethiopian economy was greater than the figures suggest. Almost the entire rural population was involved in some way with animal husbandry, whose role included the provision of draft power, food, cash, transportation, fuel, and, especially in pastoral areas, social prestige. In the highlands, oxen provided draft power in crop production. In pastoral areas, livestock formed the basis of the economy. Per capita meat consumption was high by developing countries' standards, an estimated thirteen kilograms annually. According to a 1987 estimate, beef accounted for about 51% of all meat consumption, followed by mutton and lamb (19%), poultry (15%), and goat (14%).

Ethiopia's estimated livestock population is often said to be the largest in Africa.1 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,1 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.

While efforts are being made to intensify and industrialize the sector, questions arise as to how Ethiopia can develop and expand its livestock population when Ethiopians already struggle to gain access to good soil, grazing land, and water.1 As Ethiopia increasingly experiences the effects of climate change, drought, and desertification, experts predict that "Ethiopia will have to open its markets to grain imports in order to keep up with the growing demand for meat, milk, and eggs.".

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.

Cattle in Ethiopia are almost entirely of the zebu type and are poor sources of milk and meat. However, these cattle do relatively well under the traditional production system. About 70 percent of the cattle in 1987 were in the highlands, 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.1

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.1

Most of the estimated 7.5 million equines (horses, mules, and donkeys) are used to transport produce and other agricultural goods. Camels also play a key role as pack animals in areas below 1,500 meters in elevation. Additionally, camels provide pastoralists in those areas with milk and meat.

Poultry farming is widely practiced in Ethiopia; almost every farmstead keeps some poultry for consumption and for cash sale. The highest concentration of poultry is in Shewa, in central Wollo, and in northwestern Tigray. Individual poultry farms supply eggs and meat to urban dwellers. By 1990 the state had begun to develop large poultry farms, mostly around Addis Ababa, to supply hotels and government institutions. Multinational agribusinesses supply these industrial poultry farms with high yielding breeds, such as Rhode Island Reds and White Leghorns.

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.



Tagged as:

Agriculture in Ethiopia, Biotics In Ethiopia, Biotics


11311 Views Comments

5 Ethiopian Drama Series You Have To Watch

Ethiopian television programs are growing in popularity among the majority of the population. As access to technology is steadily increasing, viewers are being exposed to

5459 Views Comments

10 Delicious Ethiopian Foods You Must Eat Before You Die

Ethiopian cuisine generally consists of vegetables, spicy meat dishes and breads. Now, if you are a food lover and particularly one with soft spot for