Report Coverage
This report on the agribusiness sector in Ethiopia includes information on rainfall patterns and growing areas, production and agroprocessing. It includes information on recent developments and trends, notable players and influencing factors such as commodity prices, environmental issues, technology and innovation, government support and security issues. There are profiles of 21 companies including coffee companies such as METAD Agricultural Development and Melange Coffee Roasters, livestock companies such as Ethio Chicken and ELFORA Agro Industries, sugar companies such as Ethiopia Sugar Industry Group, and horticulture and fruit companies such as Sher Ethiopia AQ Roses, Fri-El and Horizon Plantations.
Introduction
• The agriculture, forestry and fishing sector in Ethiopia contributes almost 35% of GDP, employs over 60% of the total workforce and accounts for over 75% of export earnings.
• The principal export crops are coffee, sesame seeds and fresh-cut roses.
• Agriculture is characterised by subsistence farming with smallholder farmers accounting for 95% of agricultural output.
• The main agricultural products are wheat, maize, teff (a grass grain), sorghum, sesame, pulses, coffee, barley, millet, cut flowers and livestock.
• Challenges include severe droughts, floods, security and conflict concerns, limited access to quality seeds, fertilisers and credit, poor infrastructure (roads), soil degradation and inadequate cold chain facilities.
Trends
• Adoption of modern agriculture technologies among medium to large players.
• Agricultural GDP growth has increased but its contribution to GDP has declined over the years, indicating increasing investments in services and manufacturing sectors.
• Agriculture growth output is driven more by expanding land under cultivation than an increase in yield per ha, resulting in output not keeping pace with the demand of a rising population.
• Coffee, sesame and cut flowers continue to be key foreign exchange earners.
• Declining agricultural imports due to a decline in wheat flour imports after the imposition of an import tariff.
• Government and development agencies’ efforts to increase extension services.
• Growth in the production of maize and wheat is driven by improved seed quality and increased irrigation infrastructure.
• Tax relief and export incentives to attract and retain investment.
• The development of agro-industrial parks to facilitate the processing of raw agricultural products, new employment opportunities and exports.
Opportunities
• Improved breeds to increase livestock quality and production.
• Increased demand for animal and poultry feed and processed food.
• Investment in cold rooms, refrigerated transport and packing houses for perishable produce.
• Partnering with the government for the construction and maintenance of rural feeder roads to connect smallholder farmers to markets and agro-industrial parks.
• Potential for fertiliser production using urban and agricultural waste.
• Promoting climate resilient initiatives, irrigation expansion schemes, drip and sprinkler systems and wastewater reuse.
• Smallholder-based dairy cooperative models and processed dairy products.
• Supplying high quality and variety seeds.
• Value addition to export commodities (coffee, sesame, spices, fruits, vegetables, and floriculture).
Challenges
• Agriculture production is still largely subsistence.
• Climate change, drought and floods affect production as agriculture is mostly rain-based.
• Conflict and security concerns affecting agricultural activities and food security.
• High inflation rate and foreign exchange volatility leading to high prices of agricultural inputs.
• High population growth is putting pressure on land resources, resulting in less smallholding land per farmer.
• Inadequate cold chain facilities contribute to post-harvest losses, particularly for smallholder farmers.
• Lack of skilled professionals in modern farming techniques, agro-processing and digital agriculture.
• Limited access to quality seeds, fertilisers, credit, poor infrastructure (roads), and soil degradation continue to affect agricultural production.
Outlook
• There is cautious optimism that the sector will show some improvement, propelled by government policy, irrigation expansion, and growing global demand for exports.
• Growth is likely to come from increased irrigation, mechanisation, commercialisation and tapping new export markets.
• Challenges such as weak transport infrastructure, vulnerability to climate shocks, and limited market access are ongoing.
• Coffee will continue to be Ethiopia’s top export earner, but with price volatility, cereals such as maize, teff, and wheat will support diversification and value addition.
• Input prices are expected to remain high. Seeds, fertilisers, and energy costs will continue to squeeze margins.
• Security risks remain elevated, disrupting production and the supply chain.
The Agri-Business Sector in Ethiopia
2025
Full Report
R 20 000.00(ZAR) estimated $1246.97 (USD)*
Industry Landscape
R 14 000.00(ZAR) estimated $ 872.88 (USD)*
Historical Reports
The Agri-Business Sector in Ethiopia 2019-11-29
R 1 900.00(ZAR) estimated $118.46 (USD)*
View Report Add to CartTable of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | COUNTRY INFORMATION | 1 |
| 3. | DESCRIPTION OF THE INDUSTRY | 3 |
| 3.1. | Industry Value Chain | 7 |
| 3.2. | Geographic Position | 11 |
| 3.3. | Size of the Industry | 16 |
| 4. | LOCAL | 20 |
| 4.1. | State of the Industry | 20 |
| 4.2. | Key Trends | 29 |
| 4.3. | Key Issues | 30 |
| 4.4. | Notable Players | 30 |
| 4.5. | Trade | 33 |
| 4.6. | Regulations | 34 |
| 4.7. | Enterprise Development and Social Development | 35 |
| 5. | AFRICA | 36 |
| 6. | INTERNATIONAL | 40 |
| 7. | INFLUENCING FACTORS | 43 |
| 7.1. | Unforeseen Events | 43 |
| 7.2. | Economic Environment | 44 |
| 7.3. | Labour | 46 |
| 7.4. | Prices | 47 |
| 7.5. | Environmental Issues | 48 |
| 7.6. | Technology, R&D, Innovation | 50 |
| 7.7. | Government Support | 52 |
| 7.8. | Security Issues | 54 |
| 7.9. | Input Costs | 55 |
| 8. | COMPETITIVE ENVIRONMENT | 55 |
| 8.1. | Competition | 55 |
| 8.2. | Barriers to Entry | 56 |
| 9. | INDUSTRY SUMMARY | 56 |
| 10. | OUTLOOK | 58 |
| 11. | INDUSTRY ASSOCIATIONS | 58 |
| 12. | REFERENCES | 59 |
| 12.1. | Publications | 59 |
| 12.2. | Websites | 59 |
| ANNEXURE 1 | 61 | |
| Industry Legislation | 61 | |
| APPENDIX 1 | 62 | |
| Summary of Notable Players | 62 | |
| COMPANY PROFILES | 68 | |
| ADDIS MODJO EDIBLE OIL COMPLEX S.C. | 68 | |
| AGP POULTRY PLC | 70 | |
| AHADU PLC | 72 | |
| ALEMA KOUDIJS FEED PLC | 74 | |
| AQ ROSES PLC | 76 | |
| EAST AFRICAN AGRI-BUSINESS PLC | 77 | |
| ELFORA AGRO-INDUSTRIES PLC | 79 | |
| ETHIOPIAN SUGAR INDUSTRY GROUP | 81 | |
| FRI-EL ETHIOPIA FARMING AND PROCESSING PLC | 84 | |
| HORIZON PLANTATIONS PLC | 86 | |
| JITTU HORTICULTURE PLC | 88 | |
| KALITI FOOD S.C. | 90 | |
| KERCHANSHE TRADING PLC | 92 | |
| MELANGE COFFEE ROASTERS PLC | 94 | |
| METAD AGRICULTURAL DEVELOPMENT PLC | 96 | |
| NATIONAL TOBACCO ENTERPRISE (ETHIOPIA) S.C. | 98 | |
| OLIRA AGRO INDUSTRY PLC | 100 | |
| PHIBELA INDUSTRIAL PLC | 102 | |
| RICH LAND BIOCHEMICAL PRODUCTION PLC | 104 | |
| SAMANU FMCG | 106 | |
| SHER ETHIOPIA PLC | 108 |
