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The Growing of Crops and Horticulture in Ethiopia 2016

Alex Conradie | Ethiopia | 03 August 2016

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Introduction

This report focuses on the growing of crops and horticulture in Ethiopia. Despite its decreasing contribution to GDP over the years, the agricultural sector remains the leading sector in terms of contribution to the country’s overall economy, since it is a major source of food for domestic consumption, of raw materials for local manufacturing industries, and of primary commodities for export. Moreover, the sector contributes 77.4% of employment, and supplies 70% of the raw materials required by the country’s domestic industries, according to the latest African Economic Outlook report. The country’s agricultural sector is, however, highly dependent on traditional farming methods and a rain-fed farming system, and is vulnerable to environmental and climate-related shocks.

Strengths

• A wide range of crops and flowers can be cultivated because of the wide range of altitudes, a favourable climate, cheap labour and fertile land.
• Support for the sector from the government and international donor agencies.

Weaknesses

• A lack of available credit and land, since all land belongs to the government.
• Lack of sufficient large-scale investment in the sector.
• Most crops are grown using traditional farming methods and a rain-fed production system.
• Most smallholders cannot afford production inputs like improved seed, fertiliser and pesticides.

Opportunities

• The Ethiopian government is encouraging large-scale agricultural investments that bring foreign exchange, and transfer technology to the country.
• The export of teff flour to capitalise on the growing demand for gluten-free grain products.
• The government and donors’ provision of farming inputs, especially seeds, which should lead to increases in output and income.

Threats

• Increasing deforestation, soil erosion and the depletion of nutrients in the soil which reduce agricultural productivity.
• The continuing drought and other adverse weather conditions.

Outlook

According to the latest African Economic Outlook report, Ethiopia’s real GDP growth is expected to decline to 8.1% in 2015/16, mainly due to the drought. The country’s agricultural sector remains vulnerable to adverse weather conditions and environmental calamities, as the effects of El Niño threaten the livelihoods of hundreds of thousands of smallholder farmers, and the food security of millions of Ethiopians. For about 1.7 million smallholder farmers, means of production for the next agricultural season are limited as their seed reserves have mostly been exhausted. They are therefore relying on donor organisations to supply seed so they can resume food production. Various role players, such as the government and donor organisations, agree that sustained investment in the agricultural sector, including in areas such as irrigation, is urgently needed. When asked to comments on prospects for the sector, Mr Wegayehu Berga of the Ethiopian embassy in Pretoria said, “The future of the agricultural sector is bright. The national forecast indicates that agriculture and allied sector is set to grow at the rate of 8% for the coming five consecutive years.”

The Growing of Crops and Horticulture in Ethiopia
The Growing of Crops and Horticulture in Ethiopia 2016

Full Report

R 1 900.00(ZAR) estimated $104.60 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.22 (USD)*

Table of Contents

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PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 4
2.2. Geographic Position 12
3. SIZE OF THE INDUSTRY 13
4. STATE OF THE INDUSTRY 17
4.1. Local 17
4.1.1. Corporate Actions 22
4.1.2. Regulations 23
4.2. Continental 24
4.3. International 25
5. INFLUENCING FACTORS 26
5.1. Government Support 26
5.2. Foreign Aid 26
5.3. Lack of Credit 28
5.4. Environmental Concerns 28
5.5. Economic Environment 29
5.6. Labour 29
5.7. Technology, Research and Development (R&D) and Innovation 30
6. COMPETITION 31
6.1. Barriers to Entry 31
7. SWOT ANALYSIS 32
8. OUTLOOK 32
9. INDUSTRY ASSOCIATIONS 33
10. REFERENCES 33
10.1. Publications 33
10.2. Websites 35
COMPANY PROFILES 36
Ahadu Plc 36
AQ Roses Plc 38
East African Agri-Business Plc 39
ELFORA Agro-Industries Plc 41
Esmeralda Farms BV 42
Ethio Agri-CEFT Plc 43
Ethiopian Sugar Corporation 45
Horizon Plantations Plc 47
Kebire Enterprise Plc 49
National Tobacco Enterprise (Ethiopia) SC 50