Agriculture in Ethiopia - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Market for Agriculture in Ethiopia is Segmented by Type (Food Crops, Fruits, and Vegetables). The report includes the production analysis (volume), consumption analysis (value and volume), export analysis (value and volume), import analysis (value and volume), and price trend analysis. The report offers the market size and forecast by volume (metric ton) and value (USD thousand) for the above segments.

Ethiopia Agriculture Industry Overview

Agriculture in Ethiopia Overview
Study Period: 2018 - 2028
CAGR: 5.6 %
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Ethiopia Agriculture Market Analysis

The market for agriculture in Ethiopia is projected to register a CAGR of 5.6% during the forecast period (2022-2027).

Due to the COVID-19 outbreak, the Ethiopian agriculture sector faced major challenges, including the harvesting process, labor scarcity, which affected the supporting infrastructure around the agricultural sector, heavily restricted movement across state borders, which blocked the movement of agri-produces and consequently affected the sales of the produced agri-commodities, lockdowns in major economies causing delays and backlogs in supply chains, exports facing transport and logistics problems, and more stringent customs restrictions.

The favorable government policies encouraging the private sector and the favorable agro-climatic conditions are the two major drivers of the market’s growth. Agriculture in Ethiopia is the largest component of its economy and employs most of the Ethiopian population, accounting for 40% of GDP. 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 95.0% of the agricultural production in Ethiopia.

Ethiopia Agriculture Industry Segments

Agriculture is the foundation of Ethiopia's economy. Around 80.0-85.0% of Ethiopians are engaged in agriculture, mainly in subsistence and rain-fed farming and livestock production. Principal crops grown are coffee, pulses, oilseeds, potatoes, sugarcane, and a few vegetables. Coffee is the largest foreign exchange earner. The study identifies the situation of the agricultural sector of Ethiopia and predicts the growth of the various segments in the sector. In the report, the sectors considered are food crops/cereals, oilseeds, fruits, and vegetables. The report includes the production analysis (volume), consumption analysis (value and volume), export analysis (value and volume), import analysis (value and volume), and price trend analysis.

Type
Food Crops
Fruits
Vegetables

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Ethiopia Agriculture Market Trends

This section covers the major market trends shaping the Ethiopia Agriculture Market according to our research experts:

Favorable Government Policies are Encouraging the Private Sector

The key component of Ethiopia’s Agriculture Policy is expanding the primary and processed agricultural products. As a result, the government of Ethiopia has identified two of its crucial areas, which are increasing the productivity of small-holder farms and expanding the large-scale commercial farms. To spur the economic growth of Ethiopia in the future, the government has initiated the Second Growth and Transformation Plan (GTP II) to make the agro-processing sector a single entity by encouraging private sector investments within the country. The government of Ethiopia has started working with international partners to enhance agriculture productivity by collaborating with different private sectors in many possible ways. The government of Ethiopia has established the Agricultural Transformation Agency (ATA) to address the problems of the agricultural sector in Ethiopia. The establishment of the society is meant to enhance the capability of the Ministry of Agriculture and Livestock Resources (MoALR) and its public, private, and non-governmental implementing partners. In 2021, the government of Ethiopia (GOE) embarked on a 10-year economic development plan (2021-2030) where agriculture is the top priority sector, and enhancing agricultural production and productivity is one of the major strategic pillars. The 10-year development plan also aims at boosting agricultural export revenues and substituting imports by reducing production costs. To achieve this, the GOE seeks to leverage developing huge unutilized arable land, modernizing production systems, and improving technology uptake.

agriculture in Ethiopia - Agriculture land area

Production of Cereals in Ethiopia

Production of cereals accounts for the second-largest share of the economy from the agricultural sector in Ethiopia. More than 80.0% of agricultural land is used to produce cereals, which makes use of 60.0% of the rural workforce. Despite the huge availability of fertile land for agriculture, the country fails to produce high yields of cereals due to low infrastructure, backward technology implementations, and lack of machinery and irrigation facilities. According to FAOSTAT, the area under cereals cultivation was 10,390,466 ha in 2018, which increased by 0.8% and reached 10,571,534.0 ha in 2020. Cereals are an essential part of the Ethiopian diet. As per the International Trade Administration report, over 50% of the daily caloric intake of an average household is from wheat, sorghum, and corn. Households spend an average of 40% of their total food budget on cereals. The government has allocated USD 5.98 million to establish agricultural machinery rental service centers in grain-producing regions to capacitate and increase the efficiency of farmers.

agriculture in Ethiopia - production of cereals

Ethiopia Agriculture Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Food Crops

      2. 5.1.2 Fruits

      3. 5.1.3 Vegetables

  6. 6. REGIONAL ANALYSIS

    1. 6.1 PESTLE Analysis

    2. 6.2 Value Chain Analysis

    3. 6.3 Government Policies

  7. 7. COMPETITVE LANDSCAPE

    1. 7.1 Distribution Network and Retail Analysis

    2. 7.2 List of Distributors/Traders

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

  9. 9. AN ASSESSMENT OF COVID-19 IMPACT ON THE MARKET

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Ethiopia Agriculture Market Research FAQs

The Agriculture in Ethiopia is studied from 2018 - 2028.

The Agriculture in Ethiopia is growing at a CAGR of 5.6% over the next 5 years.

Agriculture in EthiopiaIndustry Reports

In-depth industry statistics and market share insights of the Agriculture in sector for 2020, 2021, and 2022. The Agriculture in research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Agriculture in report PDF.

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