As a major contributor to the country’s GDP and foreign trade, agriculture is a key sector in Ethiopia’s economy. Recent figures show that the sector forms the largest component of the Ethiopian economy, contributing 34 percent to the gross domestic product (GDP). In addition agriculture accounts for 71 percent of employment. Crop production makes up 72 percent of the total agricultural GDP, whereas livestock and others account for 20 and eight percent respectively, according to the Agricultural Transformation Agency.
“Cereals (such as wheat, maize, teff, sorghum, and millet), comprise the biggest share of crop production as principal staples. 32 million tons of grains were produced by smallholder farmers in the 2017 season alone. In addition, vegetables, fruits, root crops, pulses, oilseed, and spices are grown widely.” Ethiopia also has the largest livestock population in Africa with an estimated 60 million cattle, 61 million sheep and goats, 57 million poultry, and a combined 12 million donkeys, horses, mules, and camels. The production of honey is practiced extensively: Ethiopia is the biggest honey producer in Africa and the 10th largest producer globally.
Agricultural products remain the largest contributor to export earnings, accounting for over 75 percent of total export earnings. During 2017, the sector generated 2.18 billion USD in exports. Coffee, sesame, fruits, vegetables, and leather are among Ethiopia’s top exports. Although many commodities (such as pulses, oilseed, meat, and live animals) are exported in raw form or with minimal processing, the advent of carefully planned Integrated AgroIndustrial Parks means that Ethiopia will soon earn considerably more from value-added products. Despite its enormous potential, the Ethiopian agriculture sector is still constrained by certain challenges. Of the 36 million hectares of agricultural land, only 13 million hectares (around 35 percent) is cultivated at present.
Over 90 percent of farmers are smallholders, cultivating one hectare or less of land. To transform the sector, the government of Ethiopia has been introducing different mechanism based on scientific research and establishing some respective agencies such as; the Agricultural Transformation Agency (ATA). Farming techniques have changed little over the centuries, yielding low outputs and making farmers vulnerable to the effects of unpredictable weather patterns.
A robust agricultural performance leads to more than just food security and well-being for Ethiopian farmers; it also impacts the growth of other sectors of the economy, such as industry and manufacturing. Consequently, the government of Ethiopia has dedicated much of its attention over the last two decades to address issues of productivity and sustainability and reorienting farmers away from subsistence agriculture.
To this end, the second Growth and Transformation Plan (GTP) set broad targets for agricultural and rural transformation that include increasing crop and livestock production and productivity, promoting natural resource conservation and utilization, ensuring food security and disaster prevention and preparedness.
The results of these efforts are evident. Recent policy reforms, agricultural investments, and public service provisions have boosted agricultural production and productivity, leading to the sector’s average 8 percent growth in the past decade. According to the Ministry of Agriculture report, about 10 – 12 percent of the total land under production currently uses traditional and modern irrigation schemes. With regard to yields, Central Statistics Agency (CSA) in 2017 ratified consistent upward trajectory for key staple crops over the last five years 2012-2017, resulting a national average productivity increment of 20.1 percent for maize, 20.7 percent for teff, 26.8 percent for wheat, and 20.7 percent for barley to which ATA’s impact was obvious through its production enhancement initiatives and projects in the four regions of Ethiopia (Amhara, Oromia, SNNP and Tigray).
The growth of the agricultural sector over the past decade has also been a major contributor to the significant reduction in the rates of poverty seen in the country. The proportion of the population living below the poverty line dropped to 22 percent in 2017 from 39 percent in 1991. Additionally, a steady increase in the production and productivity of crops and livestock are improving the food security and incomes of the nearly 12 million smallholder farming families. Encouraging improvements in the sector notwithstanding, shifting smallholder farmers from subsistence-based production towards market-based production remains the biggest and most important aspect of agricultural transformation.
For long-term success, this shift must be done while simultaneously bolstering resilience toward climate change and ensuring environmental sustainability. By facilitating the accelerated and inclusive growth of agriculture, the sector will make a major contribution towards Ethiopia’s goal of reaching middle-income country status by 2025. This year, the ATA enhanced its previous model by introducing a Delivery Unit concept, which embeds a team of ATA experts at the Ministry of Agriculture to directly provide problem-solving, technical support, capacity building, and performance management for the Transformation Agenda. This was found to increase the sense of ownership and accountability of intervention owners at all levels. It also allows for closer tracking and monitoring of the progress of each intervention.
The Analytical Support to Enhance Implementation Effectiveness of Agriculture Development Sector’ report from the Ministry of Agriculture shows that the distribution of small bags of fertilizer will also help boost agricultural productivity in the small scale farming which is the major chunk of productivity of the country’s crop production harvested. However, the need for mechanization is still at its infancy that the sector offices should go through in transforming the sector.
Herald January 31/2019
BY HAFTU GEBREZGABIHER
