Ethiopia’s horticulture industry has experienced significant growth in recent years; becoming one of the fastest-growing sectors in the country’s economy. The industry produces a wide variety of fruits, including avocados, mangoes, papayas and pineapples, many of which are exported to countries around the world. Ethiopia’s fruit production and export industry has the potential to become a major player in the global market with continued investment and support.
Owing to the fact, this industry has immense advantage for booming nation’s economy; the Ethiopian government is working ardently in developing the horticulture sector. The Ministry of Agriculture recently announced that the horticulture export production in the last Ethiopian fiscal year generated revenue of more than 650 million USD. The Ministry is now working towards generating 731.38 million USD from the horticultural sector for the upcoming production period.
Abdella Negash, Director for Horticulture Development and Technology Transfer Directorate at the Ministry of Agriculture told the Ethiopian Press Agency (EPA) that during the 2022/23 harvest period, 659 million USD was earned. According to him, the Ministry has achieved 99% of its plan to generate 660.5 million USD from horticulture crops.
Of the total income, 567.7 million USD was gained from flowers, 22.3 million USD from fruits and vegetables, and the rest 69.1 million USD from roots and other crops, he mentioned. Abdella also explained that more than 85% of the crops are harvested from smallholder farmers with less infrastructure, facilities and awareness. This can be explained as some of the drawbacks for the insufficient production in vegetables and fruits.
The revenue from vegetables and fruits production has been affected by the inability to maintain the quality level and the lack of prior attention to vegetables and fruits export development. However, intensive work has begun to increase revenue from exports through solving these problems in the new fiscal year.
He further highlighted that the horticulture sector can create remarkable foreign exchanges and wide job opportunities in small land, as well as assuring the state of food security. In this new fiscal year, a plan is being made to create high foreign exchange and job opportunities from this sector. Specifically, small irrigation will be supported to produce more products for the export market and raw materials for the agro-industries in order to increase revenue from the vegetables and fruits sector, he stated.
Mentioning that the work that has begun to export avocado product is effective, he also said that efforts are being undertaken to increase revenue from the horticulture sector. As a result, new structural improvements have been made to expand the experience, he noted. Horticulture has become an increasingly important sector in Ethiopia’s economy with a growing number of smallholder farmers benefiting from the industry’s expansion. Here are some key points about horticulture in Ethiopia:
According to the document gained from Ethiopian Horticulture Producers Exporters Association (EHPEA), Ethiopia is one of the largest horticulture exporters in Africa, with exports of flower, fruits, and vegetables hitting over 500 million USD earnings annually. The sector has registered significant growth in recent years, with exports increasing by an average of 20% per year.
The Ethiopian government has invested significant capital in the horticulture sector, including the development of new infrastructure and the provision of training and support to smallholder farmers. These efforts have helped to increase the productivity and competitiveness of the sector.
Despite the sector’s growth, there are still significant challenges facing Ethiopia’s horticulture industry. These include issues related to quality control, access to markets, and the availability of credit and financing for smallholder farmers.
Apart from this, the document also stated that Ethiopia’s horticulture exports have had a significant economic impact on the country in recent years, contributing to export revenue, job creation, foreign exchange savings, and improved livelihoods of smallholder farmers. According to the source, the horticulture industry, including fruit production, has created thousands of jobs in Ethiopia. Accordingly, the industry employed over 200,000 citizens, many of whom are women.
Through producing more horticultural products domestically and exporting them, Ethiopia is saving foreign exchange that would otherwise be spent on importing those products. This helps to reduce the country’s reliance on imported goods and supports its balance of payments thereby improving livelihoods of smallholder farmers.
The horticulture industry, including fruit production, has also improved the livelihoods of smallholder farmers, who account for more than 85% of the crops harvested in Ethiopia. The government’s program to support smallholder farmers has provided them with access to credit, training on best practices, and access to markets. This has helped to increase their productivity and income, and has contributed to poverty reduction in the country.
Despite the current growth and potential for more acceleration of the horticulture industry in Ethiopia, there are also some challenges that the industry is facing. According the Ministry of Agriculture, limited access to finance and markets and climate change are some of the prime challenges in this sector. Comprehending adverse impact of these challenges, the Ethiopian government has implemented several initiatives so far to address the challenges the horticulture industry is facing and to promote its growth. Here are some illustrations:
According to Abdella, the government has invested in the development of infrastructure, such as irrigation systems, roads, and airports, to effectuate the horticulture sector’s production and marketing process. For example, the government has constructed the Hawassa Industrial Park, which has facilities to process and export horticultural products. Apart from this, different trainings and capacity building programs had been provided to smallholder farmers in the horticulture sector. The aim of these programs is to improve productivity, quality control, and market access.
The government has also provided financial services and credit facilities to smallholder farmers in the horticulture sector through the Development Bank of Ethiopia and other financial institutions. This has helped to address the issue of access to finance, which has remained a major bottleneck for smallholder farmers. Encouraging the formation of associations and cooperatives among smallholder farmers in the horticulture sector is also one of the government’s activities that have been taking place to further strengthen the sector.
All in all, Ethiopia’s horticulture industry has shown great potential for growth and has made significant contributions to the country’s economy. The industry has become one of the fastest-growing sectors in the country, producing a wide variety of fruits for export and local consumption.
Recognizing potential of the industry, the Ethiopian government has taken several steps to support its development, including investing in infrastructure, promoting export-oriented agriculture, supporting smallholder farmers, and collaborating with other agencies and private sector partners.
With further investment and support, Ethiopia’s horticulture production and export industry can significantly contribute to the country’s economic growth and development coupled with its advantage in creating more job opportunities. And also, it is seemingly important for improving the livelihoods of smallholder farmers and reducing the country’s reliance on imported goods, Abdella emphasized.
BY HIZKEL HAILU
THE ETHIOPIAN HERALD FRIDAY 28 JULY 2023
