For a century, Ethiopia has been importing wheat to provide for local consumption, with the quantity of imported wheat gradually increasing to meet the growing local demand. All the while, the need for ensuring food sustainability without importation had lingered in the minds of the Ethiopian agricultural leadership community. With the introduction of the lowland wheat initiative, import substitution and sustainability of local supplies will soon be achieved.
Even though the country registered remarkable economic growth and one of the top-performing economies in Sub Saharan Africa for the past years the country still remains among the top importer of wheat and oil due to population growth and increase in local consumption.
Following this Ethiopia launched initiative which helps to be self-sufficient in wheat. The country is aiming wheat self-sufficiency and it can become self-sufficient in wheat in the coming three years, if the country utilizes its land , irrigation and other means.
Accordingly the Ministry of Agriculture (MoA), in collaboration with the Ethiopian Institute of Agricultural Research (EIAR), the Ethiopian Agriculture Transformation Agency (ATA), and other stakeholders last year launched an initiative to produce wheat in three lowland basins of the country. This initiative is being implemented at River Awash in Oromia and Afar States, Wabeshebelle River in Somali State, and River Omo in Southern Nations, Nationalities and Peoples Region (SNNPR) basins, locations where wheat production was not previously practiced.
According to Ethiopian Institute of Agricultural Research, Ethiopia has abundant land for irrigation, and only a fraction of its potential land is being utilized so far. Wheat is one of the strategic crops in Ethiopia, because of its role for food security, import substitution and supply of raw material for agro-processing industry.
The gap between demand and supply is widening because of rapidly increasing population, changing preferences towards wheat-based food items, and precarious wheat yield resulting from climate change and its consequent adversities such as drought, diseases and insect pests.
Nevertheless, while consumption is increasing at the significant rate the local production is not increasing as much as the consumption and the demand surging. Ethiopia’s prospect of wheat self-sufficiency within three years can be possible because of two favorable and realistic scenarios; increasing wheat productivity in the rain-fed agro-ecologies and expansion of production to the irrigable lowland areas.
Data showed that Ethiopia is the largest wheat producer among sub-Saharan countries and production is increasing, the demand still outstrips supply and the country remains net importer of the crop. As the demand increases because of rapid urbanization, climate change and the planting of same wheat varieties has also been affecting the productivity.
Ethiopian Institute of Agricultural Research (EIAR) Director-General, Dr. Mandefro Nigussie, said that Ethiopia has not utilized its potential so far and the recent initiative is hopeful and ambitious for the country to be self-sufficient in wheat. The country is costing over USD 700 million annually to import wheat for local consumption.
The implementation of the lowland wheat project will contribute to achieving Ethiopia’s import substitution efforts in the long term, and will also have an immediate positive impact on improving the livelihoods of the farmers and pastoralists residing in the implementation areas, says Dr. Mandefro.
After two years at full implementation, the lowland wheat initiative will cover more than 350,000 hectares of land across the three basins and is expected to produce over 17 million quintals of wheat covering import cost estimated at USD 700 million. By indicating that so far over 20,000 hectares of land is covered by wheat he noted it is expected to produce over 880,000 quintals of wheat.
Combined with the existing support to increase production and productivity in the Ethiopian highlands, this lowland wheat project will make significant contributions towards achieving Ethiopia’s plan to gradually replace importation as laid out in the country’s import substitution strategy.
Prime Minister Abiy Ahmed last week while visiting the irrigation project of Benishangul-GUmuz and Gambela said that the effort underway to enhance wheat productivity through irrigation schemes is promising. Prime Minister Dr. Abiy wrote on his Facebook that while Ethiopia is one of the largest wheat producers in Africa, our aim is to further enhance productivity through irrigation schemes as part of import substitution endeavors.
He added that recent activities in Beninshangul-Gumuz and Gambella regional states are promising as the implementation of lowland wheat production in Somali regional state. “I am also pleased to learn the progress in seedlings production in nurseries throughout the three regions as we prepare for the annual Green Legacy planting season,” the premier noted.
For close to half a century, Ethiopia has been importing wheat to provide for local consumption, with the quantity of imported wheat gradually increasing to meet the growing local demand. It is hoped that with the introduction of the lowland wheat initiative, import substitution and sustainability of local supplies will soon be achieved.
On the other hand Ethiopia is eyeing edible oil import substitution in the next one year. The local edible oil industry is thriving. So far Ethiopia is importing edible oil used for consumption having abundant raw materials and labor. In line with the construction of IPDC local oil brands are now available in major trading areas. This will open up opportunities for local producers as consumers start to become wary of the health implications of imported palm oil.
Trade Quality Regulatory Department State Minister at the Ministry of Trade and Industry Eshete Asfaw said that for the past two month the government imported 180.5 million liter of oil. Ethiopia needs over 70 million liters of oil monthly out of which 40 million litters is covered by government; private sector covers only nine percent.
Ethiopia is producing close to nine percent of edible oil for local consumption. “Compared to the resource we have, we are not producing and utilizing the resource. The numbers of local producers are increasing and it does not mean their market share has improved. Because of the low level of attention given to the sector by the, local producers are facing shortages of raw materials, foreign currency and others”.
Shamu Group Communication Director Palm oil producer Tewodros Tadesse said that “as we are beginner in palm oil producing, the encouragement given to the local industries is not adequate. On the other hand there is shortage of foreign currency and raw material”. Private sectors are producing below 10 percent which is below their capacity.
The Ethiopian Herald May 16/2020
BY HAILE DEMEKE
