Modernizing the agricultural sector which employs more than 80 per cent of the Ethiopian working force is a critical area for the economic development of the country and improving the livelihood of the decisive sector of the population – the youth.
In my opinion, agricultural modernization programs which are to be implemented in the New Year that has just unfolded should not be limited only to the introduction of modern agricultural machineries and inputs that are needed to boost agricultural production and productivity.
Agriculture would still remain the most decisive sector of the Ethiopian economy for sometimes in the future not only as a sector in itself but also as a raw material sources for manufacturing industries.
I believe that diversification of the agricultural production is an important element of agricultural modernization in Ethiopia. While Ethiopia has immense resources for agricultural diversification, the country has still continued to depend only on handful agricultural products for its export earnings. Except for more recent additions like cut flowers, the lists of exports commodities have remained the same. Coffee hides and skins, pulses and oil seeds, meat and other livestock products account for a short list of the nation’s export commodities.
Ethiopia has a comparative advantage to modernize the agricultural sector by including hitherto untapped agricultural commodities that have remained outside of the export economy. For instance, according to Ethiopian Investment Agency (EIA), Ethiopia has the potential of 25 million hectares of land suited for bio-diesel farming when tapped completely. Ethiopia becomes one of the highest producers of bio-diesel with an estimated capacity of 20 million liters of crude vegetable oil. However there is only one company that has ever invested in this important sector.
If this commodity is properly utilized, Ethiopia would be able not only to generate carbon free energy from castor, but will also be able to mobilize thousands of the unemployed youth population into the sub-sector as a means of generating income and thereby reducing chronic unemployment in the country.
Besides, the leaves from castor plants can be used as a feed for silk worms that produce silk threads that are very expensive as they are used for making clothing that are made from silk.
Projects on the production of silk fibers have been conducted by a number of NGOs particularly focusing on women entrepreneurship and income generation schemes. Such projects are very effective not only as means of income generation but also to produce industry standard fibers that can be used by textile industries that can export materials made of silk that are highly demanded on the world market.
A kilo of silkworm thread is sold for 80 to 100 Birr depending on the quality of the threads. Silkworm fibers can be produced at household level in a very small space and if the produces are organized into larger cooperatives, the can provide textile industries with enough silk fibers throughout the year with no interruption.
Civet cat is another economically important animal that resembles a cat known for producing a grease-like substance, musk, from glands located below the tail. By keeping African civets in captivity, it is possible to extract the musk which is then refined into a compound, civetone, and used as a fixing agent in the perfume industry.
Civet musk is an important export commodity. Ethiopia produces 90% of the world’s civet musk (Jemal 1999) but the country is not generating enough foreign exchange from exporting the musk that is of high demand in the world’s perfumery. If Ethiopian farmers are trained to raise these civet musk producing cats, they can provide the raw material to perfume industries that can export them as semi- processed products to perfumeries across the world.
The frankincense trees of Ethiopia producing incense gums that are naturally grown in the forest areas of Benishanguel- Gumuz is another natural resources that can be processed and exported as part of a national program for export diversification. A number of companies have been exporting incense gums from Benishanguel Gumuz in relatively small quantities but their quality has always been very low due to technically low level of harvesting and poor storage facilities.
Ginger is one of the most important spices produced in Ethiopia with a relatively smaller level of export to several European countries. Ginger is mostly produced by private farmers who use them for local consumption and as a spice for making food. Ginger grows in several parts of Ethiopia who tend to have midland climate and hot- wet equatorial rain forest temperatures.
In Ethiopia ginger is produced in a variety of agro-ecologies. The spice is currently grown in Bahir Dar, Dejen, Debere Markos, Kola Dega Damot, Metekel and Agew Mider, Gamo, Gleb and Hamer Bako, Gofa and Kulo Konta, Wabe, Dolo and Genale, Sidama and Arero, Shinscho, Gimbi, Nekemte, Horo Guduru and Arjo and All regions of Ilubabuor and Jima Zone.
Ethiopia is promoting agro-industrial projects and spices have been designated as one of the focus areas of the development of market oriented agro industry in the country. The spice subsector is amongst the important crops that fit within the strategy of commercialization of agriculture. Spice crops traded internationally have a high potential for expansion and diversification of export earnings of Ethiopia.
Although Ethiopia has a potential in the expansion for crocodile farms across the country, there is only one prominent crocodile farm currently in operation in Arba Minch in SNNPR. If exported in large quantities, crocodile skins can generate foreign currency for the country as the skins are used for making expensive ladies bags, shoes and other items like men’s belts and other leather products.
All the agricultural products that I have so far mentioned are of course not exhaustive. We can mention products like honey and other agricultural products like Kororima long pepper, black cumin, Bishops weed and coriander that do well in Ethiopia.
I hold the opinion that agricultural modernization in Ethiopia need to focus on a number of activities that would help to fulfill multiple purposes. In the first place modernization in agricultural production in Ethiopia is possible only when diversified and market oriented agriculture is put into perspectives.
With the fluctuation of market prices for commodities like coffee and leather products, diversification, strict and corruption free quality control, provision of modern logistics system and tax administration, the country’s agriculture can be modernized. Of course technology is very important and critical but the sector needs to choose which technology fits in with which type of agricultural commodity should be assessed.
In my opinion, agricultural modernization needs to take into account the need for area specialization in agricultural production. Not all areas of the country are endowed with the natural gift to grow all crops. The experience from countries with well-developed agriculture shows that they have identified which areas are good for which type of crops and have benefited from their decisions.
The Ethiopian agriculture is still based on small holder peasant plots that are expected to feed the entire country. When it comes to agricultural modernization and diversification on smaller plots of land, there are challenges that need to be considered ahead of time. Even then, with a careful and selective choice of technology that can be handled at household level, I think Ethiopia would be able to become a bread basket of Africa and a prominent hub for agriculture based Continental Free Trade Area in Africa.
The Ethiopian Herald September 20, 2019
BY SOLOMON DIBABA
