Agriculture in Ethiopia is the largest component of its economy, and employs majority of the Ethiopian population. The majority of these are smallholder farmers practicing subsistence farming on less than one hectare of land. These farmers, whose output is predominantly cereal crops, account for 95% of the agricultural production in Ethiopia.
Maize, wheat, and millets including teff are the most important cereals in terms of volume, accounting for a combined total of 77% of all cereal production, but barley, sorghum and millet are also widely grown. Pulses and oilseeds constitute other major crops in Ethiopia, grown for domestic consumption and export. Root vegetables, such as, carrot, potato, and cassava are also cultivated, as is enset (also known as “false banana”, an endemic staple crop in Ethiopia), and several horticultural crops.
Production of maize and wheat together has recorded a CGAR of 9.96% during the period 2010 to 2014, and it is expected to sustain the same growth rate, as a result of availability of adequate rainfall, and a range of agro-ecological zones suitable for cereal production. Exported quantity of vegetables (in tons) has recorded a CAGR of 2.6% over the period 2012 to 2016, and it is expected to increase, due to smallholder farmers having better access to export channels by forming associations, and favorable government policies like Agricultural-Development Led Industrialization (ADLI) and Sustainable Development and Poverty Reduction Program (SDPRP).
Major factors limiting the market growth, include deficiency of one or more nutrients (such as, phosphorous and nitrogen) in most soils in Ethiopia, which has been observed in the extensive soil fertility studies carried out by the Agricultural Transformational Agency - ATA and partners. Factors driving the market, include availability of natural resources, such as, ample arable land, favorable climate, labor, and favorable government polices encouraging privatization into the agriculture sector.
The market is segmented based on major food crops/cereals, oilseeds, fruits, and vegetables. Further the study provides insights on key players in the market, their detailed company profiles, and their business strategies. Finally, the report provides the competitive landscape and best investment opportunities in the market.
The major exports of Ethiopia are coffee, sesame, and fruits and vegetables. Coffee is Ethiopia’s biggest export crop in terms of value, it earns USD 844 million, followed by sesame, USD 349 million, and fruits and vegetables, USD 237 million. Major Ethiopian exporting destination are the United States, Germany, France, China, Saudi Arabia, and the Netherlands. Coffee represents 27.73% of total exports of Ethiopia. The export value of coffee has recorded a CAGR of 6.16% during the period 2013 to 2016, and it is estimated to grow at same rate due to many favorable policies by the government, like Agricultural Commercialization Clusters (ACC), to provide better export networks to smallholder farmers under the Agricultures Transformation Agenda (ATA).
The major imports of Ethiopia are wheat, rice, and sorghum. Ethiopia imported wheat and meslin worth USD 723.92 million, rice worth USD 133.56 million, sorghum worth USD 59.15 million in the year 2016. Some of Ethiopia’s major importers are the United States, India, Germany, Pakistan, and Bulgaria. The import quantity of wheat and meslin has recorded a sharp growth rate with a CAGR of 85.57% during the period 2015 to 2016, due to El Niño-induced drought of 2015/2016, which adversely effected the food production in Ethiopia.
Recent Industry Insights
- Smallholder farmers are forming associations (producers' cooperatives), to get better access to export networks, and joining hands with government institutions and private companies, to get better access to quality seeds.
- The Agro-Met project is working to put in place a system that interprets the seasonal and short-term climate forecasts provided by the National Meteorology Agency (NMA) in the context of smallholders’ needs, and translates them into a format that supports agronomic decision-making.
- Agricultural Commercialization Clusters (ACC) have been introduced to integrate the systemic solutions to the transformation agenda within specific high-potential geographies and strategic commodities.
Key Deliverables in the Study
- The study identifies the situation of Ethiopia, and predicts the growth of its agriculture market.
- Report talks about agriculture production, consumption, import and export of major crops, and market trends, government regulations, growth forecast, major companies, upcoming companies and projects, etc.
- The report is segmented by major import and export, and importing and exporting partners.
- The report offers PESTLE, Porter’s and supply chain analysis, and network, as well as retail sector analysis.
- Extensively researched competitive landscape section, with profiles of major companies and their market share, along with an analysis of their current strategic interests and financial information, and strategies adopted by them to sustain and grow in the market.
The Report Holds Importance for the Following Stakeholders:
- Seed companies
- Producers and manufacturers
- Enterprises operating in the agro-food industry
- Traders and stakeholders operating in agriculture sector
- Investors/research institutions interested in the market
- Seed sector analysis
- Regulatory framework
- Region specific analysis
- Inclusion of crops of interest
- Analysis of poultry, meat, and fisheries sector analysis.
1.1 Market Definition
1.2 Key Findings of the Study
2. Research Scope and Methodology
2.1 Study Deliverables
2.2 Market Segmentation
2.3 Study Assumptions
2.4 Research Methodology
3. Market Dynamics
3.1.1 Favorable Government Polices Encouraging Private Sector
3.1.2 Favorable Agro-Climatic Conditions
3.2.1 Poor Soil Quality and High-level of Nutrient Deficiecies
3.2.2 Paucity of Market Infrastructure, Including Irrigation Facilities
4. Industry Analysis
4.1 Porter's Five Forces Analysis
4.1.1 Bargaining Powers of Buyers
4.1.2 Bargaining Powers of Suppliers
4.1.3 Threat of New Entrants
4.1.4 Threat from Substitute Products
4.1.5 Competition Rivalry
5. Market Segmentation
5.1 Food Crops / Cereals
5.1.1 Market Size (USD Million)
5.1.2 Domestic Production Overview
5.1.3 Domestic Consumption Overview
5.1.4 Import Value & Volume
5.1.5 Export Value & Volume
5.2 Oil Seeds
5.2.1 Market Size (USD Million)
5.2.2 Domestic Production Overview
5.2.3 Domestic Consumption Overview
5.2.4 Import Value & Volume
5.2.5 Export Value & Volume
5.3.1 Market Size (USD Million)
5.3.2 Domestic Production Overview
5.3.3 Domestic Consumption Overview
5.3.4 Import Value & Volume
5.3.5 Export Value & Volume
5.4.1 Market Size (USD Million)
5.4.2 Domestic Production Overview
5.4.3 Domestic Consumption Overview
5.4.4 Import Value & Volume
5.4.5 Export Value & Volume
6. Regional Analysis
6.1 PESTLE Analysis
6.2 Supply Chain Analysis
6.3 Government Policies
7. Competitive Analysis
7.1 Distribution Network & Retail Analysis
7.2 List/Profile of Key Players