It is well recognized that agriculture in Ethiopia has long been the mainstay of its economic development. Yes, Ethiopia’s agriculture has recorded remarkable achievements over the past few years. Despite the increasing scarcity of water and arable land, the country has largely been able to ensure food security and boost production and productivity, though a lot remains to be done. Accompanying the rapid growth of agricultural output and incomes has been the significant change in the structure of agricultural production—from a sector based on staple grain production to a set of much more varied high-value commodities.
Cognizant of this fact, The Ethiopian Herald stayed with Asmamaw Bireda, an agro-economist who graduated from Dilla University and is working as an expert, to have professional information about the crucial role of agricultural transformation with a view to making real socio-economic change.
He said, “It is definitely agreed that Ethiopia’s policymakers have generated a transformation scheme through agricultural reform policies that have been greatly improving farmers’ production incentives and productivity. The viable institutional changes involved have been giving farmers the freedom to rent land and allocate their labor in response to market signals, which have been key parts of the reform package that improved agricultural productivity and facilitated the sector’s transformation.”
Although there have been setbacks, in general, the government’s efforts in institutional innovation, technological change, market reform, and agricultural investment accelerated agricultural growth and transformation, he added.
True, he said agricultural transformation refers to a series of changes in agriculture that both reflect and drive rising income and economic development more broadly. While the macroeconomic patterns of agricultural transformation are relatively well documented, less is known about how it is manifested at the household level.
Agricultural transformation describes a set of changes that occur in the agricultural sector as the economy expands and income rises. These changes include greater use of purchased agricultural inputs such as purchased seed and fertilizer, rising agricultural productivity, a decline in subsistence food production as farmers shift to growing for the market, and the expanding importance of non-farm activities and income, he added.
“The patterns of agricultural transformation have been extensively researched at the national level. True, marketed share of crop production increased over time, and given the rapid economic growth in Ethiopia; we expect crop commercialization to have increased as part of the broader process of agricultural transformation. This makes it more likely that we can observe changes in agricultural transformation over a relatively short period of seven years. Besides, the Ethiopian government has pursued a strategy of agricultural-led economic growth, making significant investments in rural infrastructure, creating an enabling environment for agricultural growth, and devoting resources to identifying and relieving obstacles to agricultural growth.”
As to him, commercial crop production is likely to be riskier, which discourages farmers, particularly those that are more risk averse. Third, producing some commercial crops may involve initial investments that are out of the reach of subsistence farmers.
This strategy makes sense because these crops minimize their exposure to production risk because cereals are not perishable. It also reduces their market risk because they are selling the surplus of a food crop instead of selling a nonfood crop in order to purchase food. Farmers able to tolerate somewhat more risk may be open to adopting non-staple crops that are not perishable, such as pulses and oilseeds.
“Agricultural intensification, crop commercialization, and income diversification seem to drive increases in household well-being. All three aspects of agricultural transformation are linked to various household characteristics. In addition, low and variable rainfall tends to inhibit input use and commercialization but increase income diversity by reducing the dominance of crop income. The Ethiopian Agricultural Transformation Institute (ATI) is a strategy and delivery-oriented government institute created to help accelerate the growth and transformation of Ethiopia’s agriculture sector which is a key contributor to the country’s GDP, exports, and workforce,” he underlined.
According to Asmamaw, Ethiopia’s efforts to promote sustainable agricultural mechanization – which aims to achieve agricultural and rural development while minimizing environmental damage – are generating strides in greener manufacturing systems, field machinery and equipment, and increasing the uptake of modernized crop production systems. The nation is encouraging farmers to adopt innovative practices and technologies, striving for wholesale agricultural and rural modernization. The country is aiming for a 75% agricultural mechanization rate for crop production and harvesting.
Investment in conservation agriculture – a cropping system that can prevent soil losses while regenerating degraded lands – has been shown to effectively reduce wind and water erosion, promote soil fertility, preserve soil moisture, and increase drought resistance in various trial programs in the nation.
“Yes, Ethiopia is bringing greener agricultural practices into communities and providing valuable opportunities for piloting and capacity development. Besides, with the right farming policies, the country is making strides towards sustainable agriculture and regeneration. Targeted investments and technological advancements will further drive rural transformation.”
Besides, climate-smart agriculture aims to develop climate-resilient, climate-adaptive and sustainable agri-food systems, and has shown a remarkable ability to reduce or remove agricultural greenhouse gas emissions, increase productivity, and improve agricultural quality and income through ground-breaking projects, he added.
“Investment is particularly needed in more precise and leaner machinery and equipment, and in scaling up more sustainable production and manufacturing technologies. Sustained efforts in outreach and demonstrations in rural communities are required, to support farmers to sustainably modernize their farms. Ethiopia’s experiences, approaches and business models can inspire governments, financing institutions and development partners to take a fresh look at where best to invest to sustainably modernize agriculture, promote resilience and regeneration and galvanize rural transformation.”
Basically, agricultural transformation may be broadly defined as the process over time by which the agri-food system transforms from subsistence oriented and farm centered into more commercialized, productive and off-farm centered.
He said, “Achieving agricultural transformation in a country – the transformation of an agri-food system from a high prevalence of subsistence farming to high productivity, so that poverty falls and food security increases – is contingent on many factors in the country, including its agricultural policies.”
True, said Asmamaw agricultural transformation may be broadly defined as the process over time by which the agri-food system evolves from subsistence oriented and farm centered into more commercialized, productive and off-farm centered. Transformation is said to be inclusive if the results lead to food security and poverty alleviation and reach the socially and economically disadvantaged, in particular women, minorities, the disabled and the elderly.
As to him, public sector experiences in facilitating and enabling agricultural transformation in Ethiopia have been playing a great role in transforming the sector via recognizing agricultural policies, legislation and institutional innovations.
“New production, processing and marketing technologies, including digital agriculture and product differentiation for more health- and environmentally conscience consumers, are slowly attracting dynamic and young groups of entrepreneurs to the agri-food system. Growth in total factor productivity has underpinned agricultural transformation in Ethiopia, indeed, he added. The early and successful transformers, Japan, Korea and Malaysia, were able to significantly increase transformation in agriculture. Hence, Ethiopia has to draw important lessons from these successful countries.”
“Yes, the land reforms in these countries were coupled with incentives and policies to support capabilities to improve production and marketing among the new landowners. Input subsidies, in particular for fertilizers, and trade management policies—quantitative measures, tariffs, and duties—are policy instruments used to support some agricultural commodities.”
Public investment in rural infrastructure has been, without exception, beneficial to agriculture and rural transformation. This includes rural roads, irrigation, rural electrification, agricultural research, extension, and education. The public sector has also had a significant role in farm mechanization and provision of affordable and farm-specific credit, especially during the early stages of agricultural transformation, he added.
Since the agriculture sector is threatened by climate change, soil erosion and degradation, water pollution, the projected rise in temperatures and sea levels, increasing threats from animal and plant diseases, and increasing demand for land and other natural resources, a lot remains to be done. The sector is also expected to supply more nutritious and diversified food for a rising population. Urbanization in Ethiopia is accelerating and generating demand for more diversified and processed food.
Communications technology and increasing interconnectedness allow policymakers and international partners to share policy experiences and innovative approaches to address specific impediments to transformation. When farm mechanization, new agricultural inputs like fertilizers, seeds, plant protection and farming techniques, trade, and agricultural finance required state intervention and new institutions, the country had to work on combatting challenges and technologies that may require a set of interventions and institutions.
BY MENGESHA AMARE
THE ETHIOPIAN HERALD SUNDAY EDITION 2 FEBRUARY 2025
