Volume I (Final Report1) Main

July, 2009 Addis Ababa Ethiopia
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Prepared by Dr Demese Chnayalew, Dr Getinet Gebeyehu, Dr Goshu Mekonen, Ato Yaddesa Dinssa. IFPRI Contributed Chapter 8 of the Report.

ACKNOWLEDGEMENT
This CAADP Ethiopia Study report is a result of efforts by a number of organizations and individuals engaged in the Agriculture and Rural Development programmes of Ethiopia. The National Consultants2 directly responsible for compiling data and information, stock, trend and gap analysis and writing the report sought and obtained support from many organizations and individuals. Among the many, we would like to gratefully acknowledge the support and advice obtained from the following organizations: MoARD and its various Directorates, Institutions and Agencies, MoFED, MoWR, MoTI, MoFA, EEPCo, ETC, CSA, NBE, Revenue and Customs Authority, and the SWG-RED&FS. From COMESA side, there are many who deserve thanks. The consultants would also like to express their appreciation of the support and participation of the Regional State Governments Bureaus, especially the Officials and Experts participated in the Regional Consultation Workshop held at Debre-Zeit, Ethiopia. Special thanks goes to H.E. Dr Abera Deresa, the State Minister of MoARD, Wondirad Mandefor, Head of the Agricultural Extension Directorate of MoARD and the CAADP Country Office Focal Person, and Sorssa Natea of the same Office for their guidance, facilitation and coordination of various tasks starting from the date of the CAADP Ethiopia Study Launching Workshop held on September 6, 2008. Dr Andrea Bahm, Pim de Keizer and Achim Fock from the RED&FS also deserve special thanks.

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The National Consultants' team is composed of Dr. Demese Chanyalew (Team Leader), Dr Getinet Gebeyehu, Dr Goshu Mekonen, Yadessa Dinssa. Getachew Adugna (Technical Assistant) who assisted in the collection and compilation of data and information.

Contents
Abbreviations .............................................................................................................................................. vii Synopsis ....................................................................................................................................................... ix I. Introduction .......................................................................................................................................... ix II. Country Level Objectives and Pillar Configuration ............................................................................... x III. Methodology ........................................................................................................................................ x IV. Findings from the Stocktaking and Institutional Analysis .................................................................... x V. Findings from the Trend Analysis ...................................................................................................... xvii VI. Findings from Economy Wide Model .................................................................................................xx VII. Findings from the Gap Analysis .........................................................................................................xx VIII. Conclusion and Recommendations ............................................................................................... xxiv 1. Introduction .............................................................................................................................................. 1 1.1 Background ......................................................................................................................................... 1 1.2 CAADP Ethiopia Pillar Configuration ................................................................................................... 2 1.3 Goals, Principles and Targets .............................................................................................................. 3 1.4 Highlights of Ethiopia’s Resources Base and Agriculture.................................................................... 5 2. Methodology and Conceptual Framework .............................................................................................. 7 2.1 Methodology....................................................................................................................................... 7 2.2 Conceptual Framework ....................................................................................................................... 9 3. Economy Wide and Sector Policies and Strategies ................................................................................ 12 3.1 Core Documents Reviewed and the Notion of Policy ....................................................................... 12 3.2 The Linkage among ADLI, RDPS and PASDEP .................................................................................... 14 4. Pillar based Situation Analysis: Policy, Strategy and Programmes ........................................................ 18 4.1 Natural Resources Management and Utilization (CAADP Pillar I) .................................................... 18 4.1.1 Existing Policies and Strategies .................................................................................................. 18 4.1.2 Existing Programs ....................................................................................................................... 20 4.2 Food Security and Disaster Risk Management (CAADP Pillar III) ...................................................... 21

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..................................... 3 Development partners: NGOs...... 50 5....... 52 6...................1................................................................................................... Commodity Exchanges and Traders Associations .................7 Women and Youth Associations ................................................................2 Existing Programme ....4...............................................................................................................................................................................................1 Federal Institutions .................................................. 33 4......2 Livestock and Pastoralism ...................................................................... 2 Regional and Woreda Institutions ...........1..1 Crop Agriculture ..1 Existing policies and strategies .................................................. 47 5..........9 Private Sector Institutions............................. 49 5........................................ 32 4.......... 50 5....................................................................... 4 Cooperatives ....................................................................... 22 4....................................4 Agricultural Research and Extension System (Pillar IV) ................... 54 6...................................2 Human capital formation ..................................................................................................................................................... 45 5............................. 8 Institutions for Agricultural Research and Extension...................................................................................10..............3....... 5 Warehouses.......1 Economy-wide Performance Analysis...................................................... 52 6..................................................................3......10. 28 4...................... 6 Micro Finance Institutions and Micro and Small Enterprises ................... 36 5...........1 Existing Policies and Strategies .................................................................................................................................. 44 5...............................................................10............. 47 5.....2.......10 Capacity Building ....................... Public Expenditure Review and Diagnosis .. CSOs...................................................................................2 Poverty Trend....................................2 Existing ARE Programmes ................... 28 4.........................................4.............................................................................1......................................................................................................................4 Infrastructure .....................1 GDP and AGDP Trends ......2............................................................... Economic Performance... 41 5.......... 51 6.............. 52 6....................... 45 5.................................. and Donors ............... 49 5... 56 iv .........................................4.... 33 4.................................................... Market Access and Trade Capacities (CAADP Pillar II) ............................3 Finance and Budget.................................3 Agro-processing ....... 46 5.................. 24 4........1......................................1 Establishment and equipping Institutes ..................................................3 Improve Rural Infrastructure................. 55 6......... 42 5....................................................................................................................................

.........................................................................2 Strategy .......................1 Conclusion ...4..............................................................15 Performance in Natural Resources Management and Utilization ..............................2 Livestock and Livestock products.............................................. 107 9................................................................ 69 7..................................................................... 67 6...............................................4 Trends in Food Production and Consumption ................................................................................................................ 59 6................1 Policy ............. 62 6.......................................... 91 8..........1 Crop Production and Consumption .........................................5............... HIV/AIDS............ 75 7............ 86 7.............................3 Capacity ..................................................... Gap Analysis: Policy............4 Summary of Major Findings .................................5......2 Recommendations ............................... 82 7................ Conclusion and Recommendations...............3 Programme ..........................................................................................................................5 Selected Areas of Emphasis and Cross-Cutting Issues ........................................................................4.................................... 99 8.... 82 7....................4 Institutions .. 67 6...................3..... 109 9....................................................... 60 6........3.........................2 Trends in Imports ......................................................................................................................... 85 7.................................................................................. 64 6........................................... 94 8..........................................................1 Trends in Export .....2 Expenditure Trend Analysis .................................. Agricultural Growth and Poverty Reduction in Ethiopia: An Economy wide Assessment ..................................................... and Climate Change ............................................2 Poverty Reduction under Ethiopia’s Current Growth Path.................................. 75 7......................................................................6.............................................................................................................................. 110 v ......... 86 7........................4..................... 78 7................................................................................. 88 8....................................................................................... 91 8..................................... Gender.......... 109 9...... Strategy................................................................ 77 7...................................... 62 6..........................................4......................3 Trends in Export-Import ..................................................................................1 Organizational aspects ..............................1 Areas of emphasis ........................ 1 Modeling Sources of Agricultural Growth and Poverty Reduction ...3 Accelerating Agricultural Growth and Poverty Reduction ............................................................. Programme and Institution.....................................4.......................................................2 Linkage/relationship ............. 83 7...................2 Cross-Cutting Issues: Nutrition..........

..........................................................................................2.......................................1 Policy ....................................2 Strategy ............................... 123 vi ...........2.................................4 Institution .................................................................................................................. 111 9...................................3 Programmes ........................9................................................................................... 112 9............................................................................2....................................2.. 119 BIBILOGRAPHY ................................................... 110 9........

Abbreviations AU/NEPAD ADLI AfDB AGDP AISE ARC ARES ARTP BoARD BoFED BoTI. BoWR BPR CAADP CGE CGIAR CRDA CSOs DA DAG DRM DRMFS EAAP ECX EDRI EEPCo EIAR EPA EPLAUA EPRDF ERA ERTTP FAO FDRE FeMSEDA FTC GDP GoE GOs HLI IA IFPRI ILRI IT M&E MDGs MDGs-NA African Union‟s New Partnership For Africa‟s Development Agricultural Development Lead.Industrialization African Development Bank Agricultural Growth Domestic Product Agricultural Inputs Supply Enterprise Agricultural Research Center Agricultural Research and Extension Systems Agricultural Research and Training Project Bureau of Agriculture and Rural Development Bureau of Finance And Economic Development Bureau of Trade and Industry Bureau of Water Resources Business Process Reengineering Comprehensive Africa Agriculture Development Program Computable General Equilibrium Consultative Group of International Agricultural Research Christian Relief And Development Association Civil Society Organizations Development Agent Development Assistants Group Disaster Risk Management Disaster Risk Management And Food Security Ethiopia Association Of Agricultural Professionals Ethiopian Commodity Exchange Ethiopian Development Research Institute Ethiopian Electric Power Corporation Ethiopian Institute Of Agricultural Research Export Promotion Agency Environmental Protection and Land Administration and Use Agency Ethiopian Peoples Revolutionary Democratic Front Ethiopian Road Authority Ethiopian Road Travel and Transport Programme Food And Agriculture Organization Federal Democratic Republic of Ethiopia Federal Micro and Small Enterprise Development Agency Farmers Training Center Gross Domestic Product Government of Ethiopia Government Organizations Higher Learning Institutions Investment Agency International Food Policy Research Institute International Livestock Research Institute Information Technology Monitoring And Evaluation Millennium Development Goals Millennium Development Goals Needs Assessment vii .

MoTI MoWA MoWR MSEs NARS NCs NGOs NP OAU ORARI PALTAS PAP PASDEP PEPA PIP PM&E PPP PRSP PSC QSAE RCBP RDPS RE&D RECs RED & FS ReMSEDAs RRA RUL SDPRP SME. Monitoring And Evaluation Public Private Partnership Poverty Reduction Strategy Program Pastoral Standing Committee Quality and Standards Authority Of Ethiopia Rural Capacity Building Project Rural Development Policies and Strategies Research Extension and Development Regional Economic Communities Rural Economic Development and Food Security Regional Small Enterprise Development Agency Rural Road Authority Rural-Urban Linkage Sustainable Development and Poverty Reduction Small Micro Enterprise Subject Matter Specialist Sector working group RED&FS Technical and Vocational Education and Training Universal Electrification Access Program United Nations Development Program United State Dollar World Bank World Food Program Welfare Monitoring Survey World Trade Organization viii . SMS SWG RED&FS TVET UEAP UNDP USD WB WFP. WMS WTO Micro Finance Institutions Ministry of Agriculture and Rural Development Ministry of Finance and Economic Development Ministry Of Health Ministry of Trade And Industry Ministry Of Women Affairs Ministry of Water Resources Micro And Small Enterprises Ethiopian National Agricultural Research System National Consultants Non-Government Organizations National Product Organization of African Union Oromia Agricultural Research Institute Pastoral Agro-pastoral Land Tenure Administration Study Pastoral and Agro-Pastoral Plan For Accelerated and Sustained Development to End Poverty Public Enterprises Privatization Agency Public Investment Programme Planning.MFI MoARD MoFED MoH.

 the principles of policy efficiency. Pillar III: Increasing food supply. These are: Pillar I: Extending the area under rural infrastructure and reliable water control systems. and civil society communities. This does not mean that poverty and hunger are tackled to the level of expectation of the GoE. agribusiness. Indeed the Government is still committed to allocate more resources to tackle these problems. The African Union‟s New Partnership for Africa‟s Development (AU/NEPAD) vision and strategic framework3 identified four pillars to guide CAADP indigenization in member countries. On this basis it sets principles and targets to guide national sector strategies in  the pursuit of a 6% average annual growth rate for the agricultural sector at the national level. that of coordination to designated Regional Economic Communities (RECs). and accountability.  the principles of partnerships and alliances to include farmers. review.  the allocation of 10% of the national budget to the agricultural sector. 3 Adopted by the then OAU Heads of State and Government Summit in July 2001.  the exploitation of regional complementarities and cooperation to boost growth.  The implementation principles assigning the roles and responsibility of program implementation to individual countries.Synopsis I. and Pillar IV: Improving agriculture research. Ethiopia is in the process of institutionalizing the CAADP as its agriculture sector policy. strategy and programme formulating framework. Ethiopia has surpassed the CAADP targets of 6% average annual agricultural growth rate and 10% national public expenditure share for the agricultural sector for successive years before the launch of this study. ix . technology dissemination and adoption CAADP also embraced the principle of agriculture-led growth as a main strategy to achieve the Millennium Development Goal (MDG 1) of halving poverty and hunger by 2015. Pillar II: Improving rural infrastructure and trade related capacities for market access. reduce hunger and improve responses to food emergency crises. Introduction The Comprehensive Africa Agriculture Development Program (CAADP) is a framework which African Governments agreed on and created to accelerate growth and eliminate poverty and hunger in the continent. shared by all NEPAD programs. This CAADP Ethiopia study was conducted to assist the institutionalization process. dialogue. and that of facilitation to the NEPAD Secretariat.

(b) Three stage of stocktaking. conclusions and recommendations of the study. and programmes that are documented in different legal and official documents. the Plan for Accelerated and Sustained Development to End Poverty (PASDEP). Country Level Objectives and Pillar Configuration At country level the goal of the CAADP study is to assist the Government with defining and accelerating the process of implementing its agricultural development agenda in line with the CAADP framework. consistent with the national agriculture and rural development policies. and Strategies. programmes and institutions which are identified through the three stage stocktaking exercises. Findings from the Stocktaking and Institutional Analysis Ethiopia has policies. The study is also designed to assist the future national development planning frameworks and will. strategies. the six major approaches used to conduct CAADP Ethiopia Study were (a) Two stage interviews: Before and after the Inception Report. and through careful consultation with stakeholders established indigenized CAADP Ethiopia pillars. In the case of Ethiopia its objective is to support the development of a comprehensive agriculture and rural development strategy. The following summarizes the existing policies.II. Below are the findings. inform and influence the preparation of the next phase of the PASDEP. Improve rural infrastructure. x . (d) Review of Document. Methodology The CAADP Ethiopia study is anchored on the above indigenized pillars and conducted by strictly following the study methodology included in the National Consultants (NCs) Terms of Reference4 (ToR). Pillar II. which is the Rural Development Policies. and (f) Economy wide computable general equilibrium (CGE) model. The findings of this are included as chapter 8 of this report. strategies. This country level study keeps on the basic principles guiding CAADP implementation process. in particular. and implementing framework. 5 Two workshops were conducted. (e) Trend and Gap Analysis. These are Pillar I. Improve the agricultural research and extension system. IV. market access and trade capacities. Improve natural resources management and utilization. III. The ToR underlines that the methodology should comprise a three-step approach:  Stocktaking  Gap identification  Institutional strengthening and capacity building In line with the methodology proposition contained in the TOR. Enhance food security and improve disaster risk management. One during the initial stage of report writing to consult with regional representatives and another after the submission of the mid-term report. and Pillar IV. 4 IFPRI is also contracted by COMESA to conduct investment and agricultural and income growth empirical study. Pillar III. (c) Consultation workshops5.

Prepare a sustainable and proper land use plan. II. Expand and increase the quantity and quality of crops for domestic and export markets.4. as clearly stated in RDPS (2003) are: • The labour intensive production • Proper utilization of agricultural land • A foot on the ground • Taking different agro-ecological zones into account • An integrated development path The existing policies that induce the development efforts in the agriculture sector and arranged according to the four indigenized CAADP Ethiopia pillars are shown below. and IV. 10. and 6 policy positions. Includes field. 13. industrial and spices and herbs xi . 6 7 In pillar I. Natural Resources: Existing Policy Issues and Statements Policy Issues Land acquisition Land use Investment on land Irrigation Development Livestock Water Policy Statements Provide land free of charge for every Ethiopian citizen who wants his livelihood in agriculture. Promote the availability of water nearer to pastoralists as much as possible by providing livestock water supply to all the regions particularly to PAP areas Promote participatory watershed development to enhance watershed based agricultural production. Watershed Development Private forest development Forest development technology Market for forests Management of state forest Forest protection Information system Wild life protection Crop7 Agriculture: Existing Policy issues and Statements Policy issues Policy statements Sustained accelerated agroecological zone based crop production Commercialization Provide support and technology packages that enhance specialization and diversification appropriate to the different agroecological zones. respectively. Ensure the right of access to land to private investors who wants to invest on land on long or short term lease Ensure the development of multipurpose different size irrigation schemes where appropriate. Fostering private forest development and conservation Expansion of forest development technology Expanding market development for forests Administration and management of state forests Protecting forest resources from threats Establishing modern information systems on forest development. In general at present there are 46 national agricultural policy positions covering the four CAADP Ethiopia Pillars6. III. 17. conservation and utilization The wild life of the country is protected and developed. horticultural.1 Existing Policy Basic principles governing agriculture development policy in Ethiopia.

degraded and arid climate Expand and increase Poultry production in all mixed farming agriculture including agro pastoral areas Develop and expand honey production with special emphasis in irrigated areas. poultry. Livestock and Pastoralism-Cross-Cutting : Existing Policy issues and Statements Policy issue Policy statement Livestock breed improvement Animal feed Animal health Enhance livestock productivity and production through breed improvement. fragmented landholding . Improve and expand animal health services 8 Includes dairy. meat.Domestic production and importation of fertilizer Seed/seedling production and supply Integrated pest management Ensure adequate supply of fertilizer through domestic production and competitive and efficient fertilizer importation and marketing system Develop an effective seed production and supply system through participation of public and private sectors Establish an environmentally sound system of plant protection using integrated pest management system Livestock8: Existing Policy Issues and Statements Policy issues Development with indigenous and exotic technology Pastoral extension package Small ruminants development Expansion of poultry production Honey and wax production Fishery development Policy statement Enhance livestock centered specialization development that includes the importation of exotic breeds Develop livestock technological extension package for pastoral areas Expand and increase small ruminants in highly populated. Promote animal feed production and development both in natural and compound form with due consideration for the protection of natural resources. integrating with fruit and agro forestry Expand fishery development and production in water bodies where the potential is not fully exploited Pastoralist Livelihoods and Institutions: Existing Policy Issues and Statements Policy issue Policy statement Livelihoods Social services Settlement Ensure pastoral livelihoods and their asset bases through the participation of the pastoral community and the use of pastoralist traditional and formal institutions Expand and ensure access to basic social services Ensure settlement of PAP community members on a voluntary basis and with adequate and appropriate attention to natural resources and environment conservation. apiculture and fish xii .

wise use and maximum utilization of water and forest resources Improve and strengthen agricultural technologies supply. xiii . strategy. and be competitive in the international market Accelerate private sector development by ensuring private operators remain abide by the rules of free market Expand and improve domestic markets emphasizing on value chain Expand and enhance the efficient use of available rural roads and transport services Expand electrification to the rural kebele level Provide telecommunication services up to kebele level with a priority to woreda development centers and towns Expand Export of Agricultural Products and their Markets Enhance the competitiveness of the country in the global market Accelerate the process of Ethiopia's accession to the World Trade Organization (WTO) 4. and the sector specific policy and strategy documents such as RDPS as well as the two consecutive plans known as SDPRP and PASDEP. Market Access and Trade Capacities: Existing Policy issues and Statements Policy Issue Policy Statement Transformation Acceleration and competitiveness Private sector Domestic market Road Power and energy Telecommunication Foreign trade expansion Trade competitiveness Access to WTO Transform the traditional agriculture to modern and commercial agricultural through market driven development Accelerate market based agricultural development. feed resources.Agricultural Research and Extension System: Policy issues and Statements Policy issue Policy statement Wise use of natural resources Enhance agricultural research programs for sustainable land management. Sustained supply of crop technologies Livestock and pastoralism technology generation and importation Crop agricultural extension Livestock agricultural extension Extension in PAP areas Rural Infrastructure. multiplication and distribution on a sustainable basis Undertake research on breed improvement. and plan documents such as the Revolutionary Democracy document which includes policy and strategic issues. ADLI continued to influence the formulation of successive policy. Enhance better extension services through improved crop agricultural research–extension–farmer and stakeholders linkage Enhance better extension services through improved livestock agricultural research–extension–farmer and stakeholders linkage Enhance better extension services in PAP areas with the participation of traditional institutions.2 Existing Strategy Most of the above listed existing policies have strategies that are also contained in existing legal and official documents. animal health care. and adopt domestic and imported technologies by ensuring the collection and documentation of information on the same. Agriculture Led-Industrialization (ADLI) is the lead national economic development strategy.

According to the FDRE government budget manual a programme is a broader cost center of a public body or a broad objective of expenditure. d. Adaptation of development path compatible with different agro-ecological zones.3 Existing Programmes In this study a programme is a framework that contains similar activities designed to bring developmental changes (result based). Specialization. and enhance growth with a continuous resource allocation from internal and external sources via annual recurrent budget or capital budget i. 4.. and f. This definition is also adopted in this study. Integrating development activities with other sectors. On the basis of this definition the existing programmes identified are the following: Existing Natural Resources Programs Programme area Water Land Forest Wild life     Existing Programmes Water harvesting and small irrigation development Sustainable land administration and use Forest resources protection and management Wild life conservation Existing Development Programmes in Crop Agriculture Programme area Existing Programmes Development Production  Crop production  Crop protection  Food security  Disaster Risk Management Disaster Risk Management and Food security Existing Development Programs in Livestock Agriculture Programme area Existing programs Development Production  Livestock and fishery resources  AI service  Animal health  Tryps and trypanosomisais control center   Food security Disaster Risk Management Disaster Risk Management and Food security xiv . b. Ensuring prudent allocation and use of existing land. Establishment of effective agricultural marketing system Based on these fundamentals several sub-sector and thematic strategies have been set and reported in the annex of this report. diversification and commercialization of agricultural production. e. The fundamentals of Ethiopia‟s agricultural development strategy as clearly put in PASDEP are: a. set in a project format.According to RDPS the “agriculture-centred rural development” strategy has been adopted as a major strategy and is expected to assist in the realization of the country‟s economic development objective. c.e. Adequately strengthen human resources capacity and its effective utilization.

irrigation and drainage  Moisture stress crop and natural resources management  Forest resources improvement  Forest production and utilization  Soil fertility management and resource assessment  Socio-economics Research  Cereals  Pulses  Oilseeds  Fiber  Socio-economics  Plant protection  Agricultural extension and technology transfer  Agricultural mechanization and food science  Seed and research centers development and management  Agricultural biotechnology Extension Agricultural extension Research  Agricultural extension and technology transfer  Feeds and grazing . Standards.animal nutrition and apiculture  Milk and draught power  Agricultural mechanization and food science  Agricultural biotechnology  Meat and poultry  Fishery and Aquaculture  Agricultural biotechnology  Animal Health  Socio-economics Extension Agricultural extension and TVET Extension Agricultural extension xv . Market Access and Trade Programme area Existing Programmes Markets and marketing                 Agricultural Input Supply and Marketing Agricultural Input Quality Control Warehouse Receipt and Credit Facility Agricultural Products Marketing Promotion (Export included) Agricultural Products Quality Improvement. and Inspection Agricultural Marketing Information System Agricultural Products Marketing (Domestic and Capacity Building) Cooperatives Establishment and Strengthening Socio-economic Research (EIAR) Road Sector Development Programme-Ethiopian Rural Travel and Transport Sub-Program Sugar Industry Development Universal Electrification Access Programme (UEAP) School-net Woreda-net Agri-net WTO Affairs Rural infrastructure Foreign trade Existing Agricultural Research and Extension Programmes Natural Resources Crop Agriculture Livestock and Pastoralism Research  Water harvesting.Existing Programmes in Rural Infrastructure.

among the institutions recognized by GoE are women and youth associations. MoARD is responsible for the implementation of agricultural policies and strategies. Every region. The National Bank of Ethiopia has developed an appropriate legal framework to promote rural banks and coordinate their operations. strategies and programmes. which includes the finance to establish new research centers to cover the uncovered agro-ecologies particularly in lowland. To date the establishment of women and youth associations has gone to highest level starting from Kebele up to Federal League. and domestic agricultural research and extension as well as CGIAR affiliated institutions. CBOs. mass organizations. Regional ARIs‟ and ILRI. Cooperatives play a significant role in creating improved marketing system and providing market information. CSOs. At Federal level. NGOs. private. This includes BoARD. MoWR. BoFED.4 Existing Institutions Institutional issues are issues of organizational set up and relationship or linkages among existing or newly emerging organization be it in the private or public sector.4. Currently the Warehouse Receipts System is in place working with several commodities and is strongly linked to ECX. These institutions are classified into seven categories: Government. inter ministerial institutions in the forms of committees or Boards of MoARD. . MoE and MoWUD play supportive role in implementing pastoral. MoTI. One unique difference between Federal and Regional institutional arrangement is in the area of land administration and use. The major financial institutions that contribute significantly to these institutions as well as to rural and agricultural development are the existing commercial and development banks. has also similar institutional arrangements to that of the Federal Government. donors and bilateral/multilateral institutions. xvi . In addition. At Federal level there is no separate institutional arrangement on this matter while at Regional level there exists an institution either directly accountable to the Regional Administrative Council or BoARD. MoFED. Micro Finance Institutions are among the major financial institutions which are serving the current agriculture and rural development initiatives of the many poor rural agriculture and non-agriculture subsisting citizens. The country has several agricultural research institutes established by Federal and Regional State Governments or affiliates of the CGIAR. RDPS and PASDEP have explicit explanations on institutions which are responsible to implement the existing policies. strategies and programmes. the Woreda Administrative Councils. using its independent undertaking. Specifically. rural banks and cooperatives. Commodity exchange and future markets are also part of the government‟s institution building efforts. at the beginning of SDPRP the FDRE Government took a major leap forward to strengthen the NARS. MoFA. and in other agricultural development works. To implement ARD policies. agricultural and rural development policies and strategies. BoWR. pastoral and agro-pastoral areas of the country. Leading in this aspect are EIAR. whereas at Woreda level. The evolution of strong service cooperatives and cooperative unions are a prelude to having commodity exchange centers. Besides. WoARD and Kebele Administrative and Development Councils are the key players in implementing the agricultural policies and strategies.

multilateral. Food security and agricultural growth issues. Recently there is also a formation of what is known as RED&FS group. civil society organizations (CSOs). This is followed by analyzing the achievements made in developing xvii . Currently there are hundreds of NGOs working in agriculture and rural development areas throughout the country. In addition to commercial farms. and the provision of finance/budget. as well as UN Agencies. Findings from the Trend Analysis Trend analysis of the development achievements of the agriculture sector due to the implementation of existing policies. MoFED plays the key role in donor coordination and resource mobilization. There are fifteen agriculture based CSOs legally registered by the Ministry of Justice. In terms of capacity building. the current GoE upholds the role of the private sector in cognizant of the sustained economic growth and employment generation which is necessary for poverty reduction and that requires enhanced private sector investment. The private HLI have started providing training in specific agriculture disciplines. particularly starting from the launch of the first PRSP. and African Development Bank. and financial institutions are World Bank. It opens for private commercial farming as a result along food crops and livestock commercial farms. namely SDPRP is carried out. NGOs. The government‟s expenditure trends and the achievements made so far are reported in the next section. Multilateral donors are the major lenders of Ethiopia. A lot has been done in these areas although there is still more to be done. private financial. poverty index. and UN Agencies. This group seems to engage in some policy and strategy formulation process. The overall economic performance trend based on indicators such as GDP. higher learning and export-import organizations have also emerged and are being expanding throughout the country. whereas sector ministries implement specific programs and projects. specifically the development programmes. The private commercial banks have supported the domestic agro-industry growth. Core in this regard is ATVETs and FTCs. Starting from the beginning of SDPRP period. At present among donors.The agricultural extension system of the country has federal and regional arrangements. the floriculture business has boomed in recent years by attracting for foreign investors. and the agro-processing sub-sector performance was assessed. Bilateral development cooperation is managed by respective development cooperation agencies of the different foreign governments. which technically is a sub-set of DAG with a special interest and focus in SLM. and they have had a participation in the PASDEP setting. These two institutions are currently functioning to produce as well as use the human capital that is embodied in Development Agents. the overarching coordinating body in Ethiopia is the Development Assistant Group (DAG) which bring together most of the bilateral. strategies and programmes. AGDP. CBOs and bilateral and multilateral donors constitute the main development partners in the implementation of RDPS. V. the government‟s response to the challenges of agricultural transformation and rural development rested on the establishment of and equipping of institutes at different levels of government. The major multilateral donors are EU. human capital formation.

health and socail works and related .10% and 18. Within agriculture it is the crop subsector which is leading in terms of contribution to GDP.53% in between 2000/01 and 2006/07. The number of Bakery Products Manufacture was about 34. The percent share of agriculture9 from GDP has declined from 57% to 46% in ten years time between 1996 and 2007.5%. the trends of food production are assessed using food grain and milk production and consumption statistics. The following is a summary of the findings from the trend analyses:   The economy is showing a slight structural change from agriculture to the non-agriculture sector.the core agriculture and rural infrastructures including irrigation. For the same period the share of the livestock.5% and 8. Similarly the share in the number of establishment of sugar and sugar confectionery manufacture increased from 2. education.74% and 18.     9 Agriculture includes crop. livestock and hunting. respectively.5%. which from the very beginning is set as strategy to make the economy shift to other industrious areas other than agriculture. Finally.9% from GDP and 26. The trend of expenditure. transport and comunication.62% to 3. The percentage shares of the number of establishments for the same increased to 39. In recent years the growth rate of the agriculture sector in terms of AGDP is about 13% and the budget allocated for agriculture both at the Federal and Regional State Governments level is about 15%. Ethiopia bypassed the CAADP targets both in terms of the annual growth of the agriculture sector. and the budgetary allocation. manufacturing.4% from AGDP. gas and water.3% and 3. The food poverty head count indices at the national level has declined from 42% in 1999/00 to 38% in 2004/05 or by 9%. indicates the success of ADLI. In general. in general. Though the percent share of sugar and sugar confectionary in terms of number of establishments‟ looks small (3.53%) but as of 2006/07 these establishments rank on top in terms of value share. The slight structural shift from agriculture to nonagriculture. 27. Industry includes mining and quering. and export-import activities were also made. road net works.03% for Grain Mill Manufactures in 2000/01. electricity. still greater than for the urban population and also the national average. hotels and resturants. The number of agro-processing establishments is on rise. respectively. and hunting subsector and that of forestry is 12.98% in 2006/07. public administration and defence. Services includes trade. forestry and fishing. xviii . while the rural food poverty head index has declined by less than 7% from 41% to 38. rural electrification and telecommunication services. As of 2006/07 crop agriculture share from GDP is 30% while its share from AGDP is 65%.

 Agriculture water development.8%. Currently less than 5% of the total irrigable area is under irrigated agriculture. Capital tools and Consumer goods. there is still an excess demand of electricity. In terms of value although coffee is the highest generator it is with a decline percent share from the total value.16 Quintal per person per annum grain requirement. This signals that export product diversification strategy is showing a positive result. In Ethiopia the per capita grain production as of 2007/08 reached 2. As of 1996 the country‟s generating capacity was 416. the total potential irrigable land of the country is estimated to be 3.e. This increased to 819.9 million hectare is the potential irrigable land with medium and large-scale irrigation schemes. The value of total exports of Ethiopia increased from 602 million US$ to 1. These increased to 1. The trend in crop. particularly the increasing light industries such as the cement producing. food and beverage processing factories throughout the country is putting pressure on the power and energy sector of the economy. By 2007/08 this number increased to 8676 rural kebeles which means an annual growth rate of 425%. 2004/05. from 17% to 68%. By the beginning of the PASDEP period i.13 Quintal. The nation‟s capacity to generate and produce electricity has doubled in ten years period (1996-2006). Most of those who benefited are rural residents and businesses.95 million users by 2007/08. there were only 60 rural kebeles that had subscribed lines. The equivalent of this in terms of production is 2. Another remarkable change in the telecommunication services is the coverage of rural kebeles having subscribed lines. Within a decade the proportion of asphalt roads has doubled. In the importation of Capital tools10 Industrial goods have had the highest share followed by the transport sector. production indicates that Ethiopia is fulfilling the 2100 Kcalorie per capita per day requirement..7 million hectares.057 KW. Showing the overall rapid economic growth. According to the recent data obtained from MoWR. Out of this 2. Mobile services distribution started in late 1990s. However. The provision of telephone services has shown a tremendous growth since 1995 Automatic subscription has increased rapidly. especially irrigation has not had adequate focus despite a huge potential within the country.466 million US$ from 1997/98 to 2007/08 with an average growth rate of about 2%. As of 1998/99 there were only 6740 mobile users in the country. registering an annual growth rate of 87. The road density/1000 Km2 (including community roads) increased from 24 Km to 104 Km. The share of agricultural tools import is negligible and remains constant. On the average for the last ten years more than 75% of Ethiopia‟s import by end use is for Raw materials. Fuel. specifically grain. The road sector has registered a remarkable success in the recent years.333 KW by 2006.       10 Includes machinery and equipment xix .

and (iii) the effects of alternative sources of growth on household incomes and poverty. some agro-ecological zones that grow higher-value cereals and export-oriented crops and which are better situated to larger urban markets (e. Findings from the Gap Analysis The positive achievements summarized above are not attained without gaps which should be catered for further progress and efficient and effective use of available human. and animal feed. Comparing the effectiveness of growth driven by different sub-sectors in reducing poverty and encouraging broader-based growth.e. In turn this should not imply that 11 12 By IFPRI The formulation process is coordinated by MoARD xx . and financial resources. Findings from Economy Wide Model Ethiopian computable general equilibrium (CGE) model was developed11 to capture (i) trade-offs and synergies from accelerating growth in alternative agricultural sub-sectors. 2006-2015).. In general. 7. programmes and institutions in line with the CAADP framework are highlighted below. Besides. the change is still small when one compares the milk production and consumption in Ethiopia with the rest of Africa. comprehensive enough to include related issues such as animal health. Although the average daily milk yield of cow and camel is showing a slight positive increase. particularly if marketing channels are improved so that livestock production do not lead to sharp declines in market prices. The per capita consumption of milk of Ethiopia is the lowest in Africa which is about 23Kg per annum. This Livestock Breeding Policy is not.g. VI. then it should be possible to sustain six percent agricultural growth in the medium term (during EC 1999-2008. Most households are expected to benefit from faster agricultural growth. physical. the Pastoral-Agro-pastoral areas. However. The problem lies on lack of focus. (ii) the economic inter-linkages between agriculture and the rest of the economy. a livestock Breeding Policy and Strategy has been formulated12 and it‟s on the final stage to be submitted to the Council of Ministers.. The major finding of the model are that if Ethiopia can improve crop yields and livestock productivity. Recently. strategy. additional growth driven by cereals have larger impacts on poverty reduction.1 Policy gap The few areas that need to be revisited are the policy coverage‟s given to the livestock sector. and the East and Central African Countries seed system harmonization. the livestock sub-sector is not policy deficient nor is the existing policies are hindrance to its development. increases in livestock productivity can potentially reduce poverty in pastoralist areas. humid lowlands and rain sufficient highlands) stand to gain more than other parts of the country. i. however. VII. These gaps identified in the area of policy.

7. and  Integrated water and pasture resources development strategy 7.  Bee forage. as well as the environment to work with traditional and customary institutions. 2008. 13 For example. The policy and strategy. The seed policy and strategy issued in 1993 was followed by a proclamation No.  Synchronized control breeding on small ruminants through AI. Existing policy documents have clear policy positions in PAP areas on issues of voluntary settlement. as well as the proclamation did not have articles that direct regional and international harmonization issues.there is no need for detailed separate policies on animal health and animal feed.  Animal feed development and reserve both in natural and commercial aspects catering for the pastoral and non pastoral needs.3 Programme Gaps On the basis of the definition of a programme highlighted earlier. and institutional. ELTAP/MoARD. What is not clearly covered is the transformation process to cope-up with alternative livelihood options in PAP areas. refer to the recent Pastoral and Agro-Pastoral land Administration and Use Study. xxi . Four criteria were used to classify similar activities that exist but need to be configured in new or modified programmes. These are criterion of relevance. The existing land administration policy is mainly designed to cater the problems of land administration and use in non-pastoral predominately highland and sedentary areas. sustainability. The existing gaps led to the identification of the new or modified programmes reported in the Table below.206/2000 in 2000.2 Strategy Gaps The study found out that there is absence of strategy on:  Forest resources utilization. acceptance. provision of socio-economic infrastructure. in order to assess the gap in programmes it was essential to set up criteria for what a missed programme or a programme to be modified should constitute to be included as a new programme in the context of CAADP Ethiopia. There is lack of adequate policy in this regard including the policy of PAP areas land administration13. The policy documents in these areas should also include institutional mandates and responsibilities.

the result of the exercise is not totally immune from bringing changes in this regard. This includes issues of information exchange. warehouse receipts and ECX. 15 Including the existing agri-net and woreda net information and communication technology (ICT) xxii . it was possible to identify institutional gaps related to linkages or relationships i.Modified/New14 Programmes by Pillar Pillars Modified  Land administration and planning Pillar I  Forest development. NGOs. RE&D. for example by the time the Ethiopian CAADP study started there was no Directorate in MoARD. irrigation construction and use. The process is dynamic. which was directly responsible and had a separate budget in order to undertake various activities related to agriculture investment promotions. By the time the Regional Consultation Workshop was conducted. the term institution refers to organizational aspect and/or relationship. it was reported that a separate directorate is established and the former related activities which were under the Agricultural Extension Directorate is transferred to the new one. This should be addressed after the on-going BPR exercise is complete.. Because of such dynamism in terms of organizational arrangements of institutions it was not easy to say a gap or weakness exists or not. standard and quality control. at Regional level. Similarly BPR result driven organizational changes are being observed in the DRMFS subsector. and utilization New  Integrated watershed management Pillar II • • Rural ICT network15 Agricultural Inputs and products Quality Control and standards • • • Pillar IV Research: • Socio-economic and extension • Forest resources improvement and protection Rural-Urban-Linkage (RUL) Cooperative Marketing Agriculture and Food Policy Research (AFPRe) • WTO accession and implementation • Foreign investment promotion/facilitation Research: • Dairy and Meat • Camel research and development • Range and water resources development 7. with minor variations. quarantine. and CSOs. and in the Agriculture Marketing sub-sector.e. 14 The new CAADP Ethiopia proposed programs are expected to become cost centers. To make a gap analysis in terms of organizational aspects it required the understanding and finalization of the on-going business process reengineering (BPR) exercises.4 Institutional Gaps As pointed out earlier. Notwithstanding the above. Although in principle BPR is not an exercise to change the structure of an organization. and pastoral affairs coordination. synergy. conservation . linkages among GOs. it is appropriate to recall that there is no unique institutional arrangement for the land administration and use policy and strategy implementation at the Federal level while there are institutions established and operate. However.

But most of them have no adequate and appropriate offices. land use planning. furniture and other facilities. equipment and furniture. Efforts of mainstreaming gender are put in place in the various programmes of the agriculture sector. hence the recent effort to put trained and educated human resource is subjected to underutilization. The cross cutting issues addressed in this study include nutrition. invasive unpalatable weeds and shrubs. The existing land administration and use policy of the federal and land administration and use proclamation of the regions did not address the problems related with land and natural resources in pastoral and agro-pastoral areas. But they are not done as fast as expected. During the CAADP implementation period in Pillar III the sub-pillar on Disaster Risk Management has to design various interventions to mitigate the problems of climate change in the country at large and the agriculture sector specifically. gender and climate change. forest and forest product utilization. alternative household energy sources. the standardization and explicit nutritional values of the diverse crop and livestock products and by-products. Climate change has recently become the major concern of the GoE. and to adequately address the productivity effect of malnutrition on food insecurity. There are extensive interventions on HIV/AIDs by the MoH and MoWA. equipment. land degradation and soil erosion. the recent National Nutrition Strategy (NNS) issued by MoH. However. 7. the incidence and influence of HIV/AIDs in ARD and its effect on the availability and productivity of labour has to be addressed via studies. and effect of fertilizer use. specifically at woreda levels. still needs to give additional focus and efforts to integrate adequately and appropriately the nutrition issues of PAP communities. The problem is severe at the grass root. in the livestock and pastoralism area. In ARD core in programme implementation are the woreda ARD offices. i.Another issue related to institutions is capacity building. HIV/AIDs. These include issues related PAP areas land use and administration. multipurpose small irrigation. Although its coverage has width and depth. In general gender mainstreaming needs to be strengthened and expedited in order to increase the marginal benefit obtained from rural labour (men and women) and in aggregate to enhance value addition in the agriculture sector. machinery.5 Selected Areas of Emphasis and Cross-Cutting Issues Within the Agriculture sector and the different programmes there is a need to focus on some activities or areas of intervention. and trans-boundary livestock diseases. animal feeds. working premises. human resources.e. xxiii . Capacity gap indeed is a serious one in its entire dimension. as well as pre and post-harvest losses.

VIII. this does not mean that poverty and hunger are tackled to the level of expectation of the GoE and its partners. Implementation requires appropriate institutions with the required capacity. P2. CSOs. A lot has to be done in this area. and come up with a country specific CAADP agricultural programmes in order to attain the 6% average annual growth rate for the agricultural sector at the national level. African countries are expected to stocktaking their agricultural policies. and allocate 10% of the national budget to the agricultural sector. on a path for sustainable socio-economic growth. Future debates on absence or review of policies and strategies should be based on these existing policies and strategies. Its performance in recent years has been well above the average over the CAADP targets but not one to deter the country from embarking on domestically initiated policies and strategies that will lead the transformation process and the country‟s goal of independence from foreign aid.1 Conclusion The CAADP Ethiopia study is conducted in the process of institutionalizing the AU/NEPAD/ CAADP with a vision and strategic framework that outlines Africa‟s pledge to pursue its commitment and duty to eradicate hunger and poverty and place the continent. The existing policies and strategies have contributed tremendously to the achievement of these targets. CBOs and donors. and programmes. This CAADP Ethiopia study found out that Ethiopia has surpassed the 6% average annual growth rate for the agricultural sector. Efficient and effective implementation of existing policies and strategies: During the discussion with various stakeholders what has come clear is that in most cases it is not the lack of policies and strategies but their implementation which is a constraint. The existing policies and strategies that are set in a grid format should be further edited and published by the concerned body and be distributed to all stakeholders. 8. and the allocation of 10% of the national budget to this sector starting from the SDPRP period. According to CAADP Framework.2 Recommendations Policy: General P1. Building on the policies and strategies that are already in place: This study has identified existing policies and strategies in line with the four indigenized CAADP Ethiopia Pillars that also fit well the present agricultural development policies and strategies of Ethiopia. The study also revealed that the agriculture sector remains a very critical part of the future development of the Ethiopian economy. xxiv . Indeed the Government should continue its commitment to allocate more resources to tackle these problems. analyze gaps in these and institutional capacities. at all levels. strategies. among others. However. Implementation should not be left alone to the public sector but also to the private including NGOs. Conclusion and Recommendations 8.

Most problems are emerging by not invoking and using this integrated development approach. as well as the environment to work with traditional and customary institutions. This has to be revisited and the necessary policy and regulatory framework need to be in place in the soonest possible time since some of the East and Central African Countries have already started to trade seed on the basis of the harmonization document they signed. organize and analyze information or to undertake studies. the livestock sub-sector is not policy deficient nor is the existing policies are hindrance to its development. What is not clearly covered is the transformation process to cope-up with alternative livelihood options in PAP areas. provision of socio-economic infrastructure. It is not clear on the strategy of how to utilize forest and forest products with an apt forest conservation practices. In general. Revise the forest and forest products utilization strategy: The policy. The strategy of integrated development approach should be practiced: RDPS and PASDEP give emphasis to the strategy of coordination and integration of managing different development tasks. the livestock sub-sector has lack of focus in specific policy regimes in an integrated and comprehensive setting. P5: Review the seed policy and strategy in line with the emerging multi-country interests: Improved seed has become a strategic commodity to influence the productivity and production of the crop sub-sector not only in a given country but also continental and worldwide. There was an attempt to harmonize the Ethiopian seed system with the East and Central African Countries via the issuance of a regulation but which has not been finalized. The existing national seed policy and strategy did not have articles that direct regional and international harmonization issues. Most of it is related on how to collect. P4. This study found out in most cases integrated efforts are not well in place.Policy: Specific P3. But as reported in chapter 7. xxv . Strategy: Specific S2. Policy to cope up with the transformation process in PAP areas: Existing policy documents have clear policy positions in PAP areas on issues of voluntary settlement. This should be written and included in the existing strategy document. identifying the existing policies was not easy in the case of the livestock and pastoralism component of the study due to relative inexplicitness of the issues in existing official documents (RDPS and PASDEP). And this should be addressed in the soonest possible time. Strategy Strategy: General S1. strategy and the proclamation on forest development. Render adequate coverage to livestock policy: In general. There is lack of adequate policy in this regard including the policy of PAP areas land administration. conservation and utilization document compiled by MoARD (2007) does include statements with the term utilization. It actually states that ensuring integrated development is a guiding principle for the agricultural policies and strategies.

This programme can be accessible to individual farm household use through public services or undertaken by private investors through value chain development approach. the country needs to have a clear strategic direction. and available human. particularly in PAP areas has exacerbated the problem of animal feed and is necessitating for a strategic intervention in feed reserve both in natural and commercial aspects. The strategy should be based on the emerging principle of disaster risk management rather than addressing emergency situation. The strategies should be developed. It is only through this way that one may be able to see how much each Birr invested in the public sector is returning positively. Perhaps the ongoing BPR may resolve this problem. Recently the need for bee forage practice is getting importance especially with the promotion of modern beehives in different agro-ecologies. Strict use of the programme approaches both in the budget appropriation and technical situations: CAADP Ethiopia proposed programmes are either the existing programmes recognized by the Federal Government Budget Document as cost centers or new proposed programmes that are expected to become cost centers. and Basic Social service strategies for the PAP areas are well addressed. integrated with fruits and agro forestry. and financial resources. above 10% of the CAADP target. This is mostly a question of achieving achievable results using available resources. S5: Review the existing animal feed strategy in line with PAP areas situations and conditions: The recent increased incidence of drought.S3. Set a national strategy of synchronized breeding: Synchronized breeding is an artificial manipulation of the reproductive cycle of animals for the purpose of fixed time breeding through AI and as a result to achieve compact calving. PR2: Efficient and effective implementation of existing programmes: During the CAADP Ethiopia study it was observed that there are problems of properly implementing existing programmes with existing institutions. Currently this is reported to be practiced by some private firms. Programmes Programmes: General PR1. The system allows aligning the breeding programme with feed availability and marketing. Its use in the public sector is still under discussion. In any way the issue should be accorded attention and xxvi . This is highly associated with the annual crop cultivation practice which again is not the case in pastoral areas. Under PASDEP. the existing animal feed strategy give attention to the development aspect and very little on reserve. Though the budgetary appropriation to the agriculture sector is on rise. lambing or kidding. However. All these are in place without a strategy on bee forage. Traditional feed reserve practices exist mostly in non-pastoral areas. Programme budget should be in practice. physical. S4: Set a bee forage production strategy: The current GoE policy on apiculture is to develop and expand honey production with special emphasis in irrigated areas. A strategy that embrace the reserve aspect and focus in on PAP areas should be developed. Livelihood and Asset Building. how efficient and effective this appropriation is in terms of tackling the poverty and hunger problems is not measurable. Whether it is to be practiced by the public or private sector. Traditionally honey production is common in almost all agro-ecologies that are endowed with water resources and vegetation that serve as feed for bees.

It is important to note again the notion of national programmes. the understanding is that given their constitutional rights the Federal and Regional State governments can plan on various development programmes to be financed through their established budgetary frameworks. while the solicitation of funds can still take the existing approach. a programme may contain elements of policy and strategy that are broad based and shared with other programmes. The Table below presents the proposed CAADP Ethiopia national Programmes by pillar areas. Each programme can have several sub-programmes further classified by interventions and activities as deemed necessary for Planning. A programme can be implemented by one or more than one institution at Federal and/or Regional State governments. In the context of the proposed CAADP Ethiopia programmes. This study has reduced the existing 56 cost center programmes to 41 inclusive of modified and new ones.programme owners should set appropriate monitoring and evaluation mechanisms to efficiently and effectively implement existing programmes with available resources. existing but modified and new proposed programmes. Monitoring and Evaluation (PM&E) purposes. Besides. and the programmes will be the cost centers whereby any other projects and interventions financed by treasury or external sources will be registered under them. Recommended CAADP Ethiopia programmes The CAADP Ethiopia programmes framework combines existing. the proposed CAADP Ethiopia national programmes are referred as national with the assumption that all stakeholders will be abided with the CAADP Ethiopia framework. Besides. the rationale behind national programme is that those in the agriculture sector either at Federal or Regional State governments‟ level to conceive development programmes as indicated in the Table below. conservation . and utilization management and utilization RI1: Ethiopian Rural Travel And Transport Sub-Programme Pillar II: Improve RI2: Universal Electrification Access Programme rural infrastructure. CAADP Ethiopia National Agriculture Sector programmes Ethiopia CAADP Programme Pillar NR1: Land administration and planning Pillar I: Improve NR2: Integrated Watershed management natural resources NR3: Forest development. Here. RI3: Rural ICT network16 market access and trade capacities TD1: WTO accession and implementation TD2: Foreign investment promotion/facilitation MM1: Agricultural Inputs Supply and Marketing MM2: Agricultural Inputs and products Quality Control and standards MM3: Warehouse Receipt and Credit Facility MM4: Agricultural Products Marketing Promotion MM5: Agricultural Marketing Information System MM6: Cooperative Marketing MM7: Rural-Urban Linkage MM8: Agriculture and Food Policy Research 16 Including agri-net and woreda net information and communication technology (ICT) xxvii .

Enhance food security and improve disaster risk management Pillar IV: Improve the agricultural research and extension system FD1: Crop development FD2: Livestock and fishery resources FD3: Animal and plant health services and regulatory FD4: Food security FD5: Disaster Risk Management CR1: Cereals CR2: Pulses CR3: Oilseeds CR4: Fiber CR5: Vegetables. root and tubers and fruits CR6: Spices and stimulants CR7: Essential oils.Pillar III. xxviii . 2009 it was mentioned that TVET may become by itself a programme. June 1-5. medicinal plants and bio-energy CR8: Agricultural biotechnology and Plant protection CR9: Agricultural mechanization SW1: Soil and water management FR1: Forest resources improvement and protection SE1: Socio-economic and extension research LR1: Dairy and Meat LR2: Poultry LR3: Fishery and aquaculture LR4: Camel research and development LR5: Range and water resources development LR6: Apiculture and silkworm LR7: Animal health AE1: Agricultural extension and TVET17 17 During the CAADP/AGP Joint Workshop held at Adama German Hotel-Nazreth.

the Regions on the other hand. micro-finance institutions. However. expansion and growth In MM5-Public private partnership (PPP) In MM6-Micro and small scale enterprises banks. there is a need to institutionalize and promote land administration at the Federal level. Establish a systematized information exchange: Exchange of information among federal and regional institutions is one of the major weak linkages. and cooperative banks in pastoral and agro-pastoral areas Pillar II • • • Pillar III. Need to institutionalize and promote land administration. Programmes or Components of a Programme to Be Scaled Up by Pillar Pillars Scale-up18 • In NR1-Sustainable land administration and use specifically land Pillar I. inclusion of other sectors and intensifying support for the sectors.Small scale irrigation development In MM4-Support the commercial agriculture emergence. • certification In NR2. During discussions with different stakeholders. The table below presents the programmes to be scaled up on the basis of the four indigenized Ethiopia CAADP pillars. xxix .seed production In FD3-seed regulatory In AE1: – Management of acid and saline soils – Management of Vertisol Livestock • In FD2 and AE1-Artificial Insemination (AI) service Institution The following linkage and relationship weaknesses should be addressed: IN1. Crop • • • In FD1. 18 The notion of scale-up in this study takes the notion of up-scaling which is used in a recent study by SNV (2008). Hence. Regional or for that matter between Regional and Woreda levels. As reported in section five of this report there is no significant rural land administration and utilization activity at the Federal level. This notion has three dimensions in up-scaling a programme: from regional to national coverage. IN2. have had varying approaches to providing for the institutional set-up for this purpose. Hence measure has to be taken to establish a systematized information exchange that is footed in the modern ICT system.Programme: Scale. the ToR of this study requires the identification of national programmes which should be scaled up. the information flow at all levels is based on personal relationship.up In addition to identifying CAADP Ethiopia national programmes. There is hardly a systematized and institutionalized information exchange between Federal.

Regional State Governments Bureaus and Agencies. the public. Such groups as well as Federal and Regional State governments‟ have no formal linkage with CSOs. Extension and Development (RE&D) system: In spite of governments support and increasingly funded agricultural research. the system is not giving a fair competitive ground for ESE. Inadequate vertical and horizontal collaboration among research institutes and weak research extension farmers‟ linkage tended to the woreda level appears to be some of the institutional challenges contributing to the lack of effectiveness in the RE&D chain. Besides. Review the Research. bilateral and multi-lateral donors. There are hardly formal linkages that are governed with agreed and signed working procedures among these partners. CSOs. Furthermore. ESE is at a cross road of being a profitable parastatal and a non-profit making development supporting enterprise of the government functioning with controlled prices and protected labour. and excess demand for improved seeds. IN4. and RED&FS. Donor communities have their own way of working amongst themselves. this relationship falls short of the desired level of integration and coordination and as a result there is lack of adequate quality control measure. but again the differences and similarities are not clearly set. NGOs. However. xxx . Some NGOs may join these groups but at large the NGOs have also their own association such as CRDA. in the existing RE&D system the pastoral and agro pastoral issues are not adequately covered.e. Hence it is timely to review the RE&D system putting the agro-ecology and integrated approach into perspective. quality control and the integration and working relationship among public and private research. The influence of CSOs in Ethiopia‟s agriculture and rural development policy formation and implementation is insignificant and requires stimulation. Revisit the Status of the Ethiopian Seed system. the linkage between the ESE and the emerging Regional SEs like the one of Oromia need to be clear not only in the marketing sphere but also in the use of sole basic and pre-basic seed suppliers such as Bako ARC in the case of hybrid maize. development and multiplication agencies have become vital to facilitate the production and supply of improved seeds to the farming communities. Specifically the livestock sub-sector has suffered from inadequate technology generation and transfer. Improved seed as a national strategic agricultural input needs emphasis with its complexity starting from production up to marketing distribution and use. IN5. yet research has not been able to sufficiently address the problems and constraints of the agriculture sector.IN3: Formalize linkages among partners: In the agriculture sector the partners of development are several Federal Ministries and Agencies. In general. specifically the newly organized Seed Association. Linkage between MoARD and MoTI in the area of export promotion. At Federal level the linkages among Ministries and Agencies are smooth but mostly informal. all these development partners need to work under a known procedure and system if they all are interested to contribute to the development of Ethiopia‟s ARD sector. Some NGOs are being blamed for not having coordinated development interventions even in a given woreda. Besides. But all NGOs are not also a member of this association. Federal and regional level activities are not also systematically linked and institutionalized although there is no magnificently observed problem that has jeopardized the implementation of development interventions. information exchange and documentation need attention.and CBOs. the system should be reassessed in terms of organizational and relational aspects so that all actors can work closely i. CSOs. say in the established DAG framework. In general. In cognizant of this. private sector dealers.

administration etc) for the purpose of development in the PAP areas. Agricultural inputs quarantine. However. the pastoral institutions located in the different Federal institutions are not communicating systematically with strong legal base. this should not deter the focus of using the warehouse receipt and credit system for the many small holders who are subject to unreasonable price deals at times of harvest but critical cash needs. BoARD and BoWR on irrigation infrastructure construction and use needs a reexamination. Customs Authority. Overall. particularly those established within the agriculture sector should come in a formal linked institutional arrangement in order to address national issues of agricultural inputs and outputs quarantine. Each institute appears to take its own course of action. standard and quality control institutes. They should be receiving the service adequately and timely to keep their produce in the warehouse system even if they are not trading through the exchange facility. standard and quality control both in crop and livestock agriculture calls for a strong linkage among relevant institutions such MoARD‟s Animal and Plant Health Regulatory Directorate. Strengthen linkage among quarantine. Private input producers and traders. This is manifested through the establishment of the Pastoral Standing Committee in the House of Representatives. IN8. there is no clear and institutionalized linkage between them and MoARD and BoARD in terms of transfer of the physical infrastructure and the work to be done jointly till the actual targeted beneficiaries are in use of the facility. on pastoral affairs there is a need to reexamine the role of coordination offices in various ministries and that of the technical committee and also the institutional arrangements to efficiently and effectively implement development interventions designed at Federal and Regional State Governments levels with a clear guideline on the implementation of projects financed with internal and external sources. There is a gap in terms of having a legalized body which have the mandate to mobilize internal and external resources (fund) and align indigenous traditional institutions with formal institutions (research centers. IN9. MoWR. Currently. development partners as well as those enterprises working in the seed business but located in neighboring countries. Review the use of the warehouses under the warehouse receipt and credit programme by ECX: Warehouse receipt and credit and the ECX are timely undertakings but the linkage between the two in practices needs reexamination. xxxi . and Inter-Ministerial Board under the MoFA. standard and quality issues. While those responsible to construct medium and large scale irrigation infrastructure are MoWR and BoWR. As appropriate CSOs. Universities. There is no harm if ECX use the warehouses for commodities that are traded through the exchange system.NGOs. and the special coordination Offices of the PAP areas. The reexamination should include the assessment and recommendation of how to repair and maintain existing facilities. Review the institutional arrangement to coordinate PAP areas development interventions: The Government of Ethiopia has given a high priority for the wholestic development of the PAP areas. IN6. IN7. Smoothen the constructed irrigation facilities transfer to developers and end users: The linkage between MoARD. Agricultural Marketing Directorate.

However. i. with the aim of stabilizing prices of the livestock and grain commodities during hard time. working premises. FTCs still need additional capacity strengthening interventions. 19 The GoE has gone further to the extent of setting a separate Ministry of Capacity Building. etc). Same is true in terms of reorienting and strengthening ATVETs to produce skilled and trained agriculturalists as well as serve as a center of promotion for improved agricultural services. Enhance the capacity development interventions: Despite the GoE efforts to build the capacity of Federal and Regional institutions19. At Regional and Federal levels. capacity gap remains still as a serious one in its entire dimension. flood. Most of them have no adequate and appropriate offices. xxxii . specifically at woreda levels. The other challenge is the lack of market information and networks on the comparative advantage of the pastoral commodities. usually by trekking. equipment and furniture. Illicit cross-border trade could be minimized by strengthening the domestic and foreign market system through the establishment of export abattoirs. equipment. and strengthening both non mobile and mobile veterinary services. and the animals lose weight by the time they reach the secondary market. human resources. Render special focus to strengthen the market infrastructure of PAP products: In general. in most research and training institutes there are problems of getting adequate trained and educated staff. the pastoralists engage in illicit crossborder trading. Therefore.e. these institutions‟ requirements in terms of human resources and facilities are wanting. It has been noted that the good intentions of BPR are being challenged by the practical absence of the needed capacity in Federal and Regional program implementing institutions. and natural calamities (drought. These are two core institutional arrangements that have contributed positively to the recent achievements of high growth rate in the agriculture sector. IN11. Tracking routes and resting areas are not well developed in the pastoral areas. The terms of trade between livestock and grain need to be stabilized to achieve Pastoral food security. They rarely have furniture and the minimum facility to provide training to farmers. Because of these factors and additional factors like ban of the livestock import (Trade ban). The animals to be exported are brought from the remotest part of the pastoral areas. networked with PAP structure. machinery. Recently the government also commissioned a study to re-orient ATVETs from the training of DAs to a broader agriculture sector support giving institutions in a multi dimensional way. quarantine and inspection stations. in terms of marketing there are challenges that impede the smooth transaction of pastoral commodities.IN10. pastoral grain and feed reserve mechanism need to be created. The problem is even severe at the grass root. furniture and other facilities. It is also important to note the deficiencies that exist at ATVET and FTC levels.

In particular. on a path for sustainable socioeconomic growth. which is an initiative and a pillar of the NEPAD. Sustainable use of natural resources. at all levels. 20 CAADP national consultants: Dr Demese Chanyalew (Agricultural Economist. 22 Accelerating CAADP Implementation: A Guide Building on Initial Experiences 2005-2007 1 . hunger and malnutritionMDG1. the CAADP agenda will significantly contribute to. and the eventual eradication of poverty. Africa‟s achievement of two of the eight Millennium Development Goals (MDGs) targets and contribute significantly to the other six MDGs. if not critically determining. At country level CAADP is a framework which identified four pillars to guide defining and developing the agriculture agenda. 21 Adopted by the then OAU Heads of State and Government Summit in July 2001. bio-diversity and bio-safety. Ethiopia is in the process of institutionalizing the Comprehensive Africa Agriculture Development Program (CAADP) as its agriculture sector policy.  Monitoring and evaluation. especially equality and empowerment of women-MDG3. peer review and knowledge/information sharing.1 Background The African Union‟s New Partnership for Africa‟s Development (AU/NEPAD) vision and strategic framework21 outlines Africa‟s pledge to pursue its commitment and duty to eradicate hunger and poverty and place the continent. and develop a Global Partnership for development-MDG8. Dr Goshu Mekonnen (Livestock and Pastoralism Specialist). b. and Yadessa Dinssa (Natural Resources Specialist). and c. Dr Getinet Gebeyehu (Crop Specialist). The Federal Democratic Republic of Ethiopia (FDRE) Government is entirely committed to the overall AU/NEPAD objectives and principles. Team Leader). This means that the CAADP specific objectives can be translated as follows22: a. strategy and programme formulating framework. The CAADP Pillar frameworks are:  Stocktaking and baseline analytical work including public expenditure review and diagnosis. and control of damages emanating from climate change-MDG7.Comprehensive Africa Agriculture Development Program Ethiopia Study (Draft Report20) 1. In this regard. reduce child mortality through improved nutrition-MDG4. Tangible reduction. Introduction 1. and Getachew Adugna (Technical Assistant). Contribute to the achievement of other MDGs. CAADP is a framework which African Governments agreed on and created to accelerate growth and eliminate poverty and hunger in the continent. and  Partnership and coalition building/strengthening and capacity building.

Held on 6-7 March 2009 at Debre Zeit. Quality programmes are those which i. ii. this does not restrict member countries to strictly adhere to. and Offer the best inter-sector. and this is to influence development and economic investment plans and implementation with quality investment programmes. In the case of Ethiopia pillar configuration starts with the NCs own initiative but eventually endorsed by the participants of the Regional Consultation Workshop24 and finally the top management of Ministry of Agriculture and Rural Development (MoARD). The final version is presented below side by side with the AU/ NEPAD/ CAADP setting. This version is core in terms of addressing the goals. 2 . Kigali. Address “real” issues that are likely to bring the most impact by achieving targeted levels in the productivity of crop and animal agriculture productivity. inter-discipline and multi-partner implementation with comprehensive and integrated approaches. Represent the best economic rationalization and offering the best option for highest returns on the investment. Within the framework. principles and targets of CAADP in the Ethiopian context. II Annex R2). Ethiopia (minutes of the workshop are attached as Vol. 23 24 As an example see the Rwanda CAADP Compact. the countries are allowed to adjust to their own economic situations and conditions23. CAADP set its implementation objective. March 31. Represent the most optimal exploitation of national and continental natural and human resources.2 CAADP Ethiopia Pillar Configuration The above CAADP pillars are setting the overall strategic approach which the Head of States set to come up with a continental framework.As a framework at country level. 2007. 1. iv. iii.

and (iii) facilitate greater alignment and harmonization of development efforts. and improve risk management Pastoral and agro-pastoral livelihood response to food Agricultural extension services emergency crisis Pillar IV: Improving Improve the agricultural Crop research agricultural research. 3 . At continental level. On this basis it sets it‟s principles and targets to guide national sector strategies in  the pursuit of a 6% average annual growth rate for the agricultural sector at the national level. (ii) allow regional peer learning and review.AU /NEPAD/ CAADP and Ethiopia Pillar Configuration CAADP Pillar CAADP Ethiopia Pillar Target Pillar I: Extending the Improve natural Land area under rural resources management Water infrastructure and and utilization Forest reliable water control systems Pillar II: Improving Improve rural Rural infrastructure rural infrastructure and infrastructure. It is rather to be understood as a common framework. reduce and improve disaster Livestock production and productivity hunger. reduces poverty and food insecurity. and is fully owned and led by African governments. it is an integral part of national efforts to promote agricultural sector growth and economic development. it emanates from. research and extension Livestock research technology system Pastoral and agro-pastoral livelihood dissemination and research adoption Soil and water management research Forest research Socio-economic and extension research Source: CAADP Ethiopia Study National Consultants 1. the goal is to help African countries reach a higher path of economic growth through agriculture-led development which eliminates hunger. in order to: (i) guide country strategies and investment programs.3 Goals. and enables expansion of exports. reflected in a set of key principles and targets that have been defined and set by the Heads of State and Government. market Trade( domestic and foreign) trade related capacities access and trade Markets and marketing for market access capacities Pillar III: Increasing Enhance food security Crop production and productivity food supply.  the allocation of 10% of the national budget to the agricultural sector. Principles and Targets The terms of reference (ToR) clearly stated the main goal of CAADP at continental and country level. Although continental in scope. It is not a set of supranational programs to be implemented by individual countries. CAADP embraced the principle of agriculture-led growth as a main strategy to achieve the Millennium Development Goal (MDG 1) of halving poverty and hunger by 2015. As a program of the African Union.

Of course. consistent with the national development policies and frameworks. specifically in Ethiopia. dialogue. At country level. Its objective is to support the development of a comprehensive agriculture and rural development strategy. as developed and agreed at a stakeholders‟ retreat in Pretoria. that of coordination to designated Regional Economic Communities (RECs). Ethiopia has surpassed the CAADP targets of 6% average annual agricultural growth rate and 10% national public expenditure share for the agricultural sector. 4 . the Rural Development Policies and Strategies(RDPS). the Plan for Accelerated and Sustained Development to End Poverty (PASDEP)) and the country‟s vision of achieving middle income country in the next 20 years. that the national level sector policies and frameworks should primarily be aligned with the CAADP principles and targets. in particular.    the exploitation of regional complementarities and cooperation to boost growth. the goal of the CAADP study is to assist the Government of Ethiopia (GoE) with defining and accelerating the process of implementing its agricultural development agenda in line with the CAADP framework. the implementation principles assigning the roles and responsibility of program implementation to individual countries. namely. South Africa. shared by all NEPAD programs. Indeed the Government is still committed to allocate more resources to tackle these problems. the principles of partnerships and alliances to include farmers. This does not mean that poverty and hunger are tackled to the level of expectation of the GoE. and that of facilitation to the NEPAD Secretariat. the principles of policy efficiency. in 2005. agribusiness. This country level study keeps on the basic principles guiding CAADP implementation process. inform and influence the preparation of the next phase of the PASDEP. review. and civil society communities. and accountability. The exercise will also strongly position the agricultural and rural sector in the future national development planning frameworks and will.

The 32 major agro-ecological zones are grouped under six major categories27 consisting:  Arid Zone – less productive and pastoral and occupies 53. 25 26 Source: National Bank. and 2.7 percent of the country) highly threatened by erosion.  Sub-humid and Humid – cover 17. home of the remaining forest and wildlife and biological diversity. 27 Source: 5 .6% fallow.5 % of the country) and 4. Overall. Currently only 3% of the total area is irrigated. is the mainstay of the national economy contributing about 46 % of Gross Domestic Product (GDP). over 90% of export.  Moist – covers 28 (103) ha (25 % of the country) of the most important agricultural land of the country.7 million ha.less harsh and occupies 4 million ha (3. Of the total population 83 percent live in rural areas mainly subsisting on agriculture.2 million. and cereals are the dominant crops. the vegetation types are the foundations of agriculture and could be over laid to give what is known as the agro-ecological zones. Ethiopia has high potential for agricultural development and these agro-ecological classifications have important implications for strategies in development of the agriculture sector. MOWR and CSA 2007/08 According to Zewdie et. The PAP areas in Ethiopia are almost situated in the peripheral regions of the country. the relative humidity. with average land holding of 0.8% woodlands.  Per-humid – covers about 1 million ha (close to 1% of the country) and suited for perennial crops and forests.7% pasture lands. Of which. 0. The different agroecological zones.7% others.al. 8.2 million ha (19.5 percent of the country ). The pastoral and agro-pastoral (PAP) areas are estimated to cover more than 60% of the total landmass inhabiting 10 million people in seven Regional States (Biruk Yemane.9 million hectare is suitable for medium and large-scale irrigation schemes.4 Highlights of Ethiopia’s Resources Base and Agriculture Ethiopia has a total area of 112 million hectares out of which about 45% is arable25. As of 2007/08 the total cultivated area is about 11 million hectares26.  Sub-moist – occupies 22. (2008) this approximately covers 74. therefore. 2007). the climate. extensive arable land and high population in rural areas make Ethiopia an agrarian country. Agriculture. of which 51% are female.4 million ha (4 % of the country) respectively.5 percent of the country ).  Semi-arid .2% annual crops. provide the most stable and ideal conditions for annual and perennial crops. as of 2007/08.93 ha. According to the 2007 human population census.5 million ha (31. Ethiopia‟s population is 73. roughly as of 2007/8 numbered 13.5 (103) ha (15. 7.9 million. and very fragile and hostile environment. 6% perennial crops. The country has a potential irrigable land of about 3.1. 2. Agriculture is practiced mainly by smallholders. and 83% of employment. Ethiopia‟s natural resources base. There are 32 major agro-ecological zones. and with an annual rate of growth of 2. the soil. characterized by unpredictable and unstable climatic conditions.6%.

South Omo. Gode. In these areas there are also irrigation schemes that are catering to the broader national agriculture development as well as specific contributions to pastoralists. low moisture and pastoral areas28 as indicated in the figure below. Indeed the classification can further be narrowed into two: Pastoral and non-pastoral.000 hectares for field crops. which occupy only 4% of the cultivated land range from 50 hectares for horticultural crops to 4. large scale farms. In the nonpastoral areas there are two distinct modes of agricultural production: smallholder and commercial. for example the development of irrigated pasture as it is contained in the recent Tendaho-Kesum irrigation scheme in Afar. 28 29 RDPS. Examining agriculture by its sub-sectors indicates that crop production and forestry contributes about 72% of AGDP while livestock accounts for 28% percent as of 2007/08.The six categories are further divided into three major agro ecological zones which includes moisture reliable. This statistics indicates the economic contribution of the livestock sub-sector is low despite the high potential the country has29. and Gambela. 2002 In terms of number of cattle Ethiopia is top in Africa and 1oth in the world. The pastoral areas can further be seen in terms of pure pastoral and agro-pastoral areas. 6 . Similar practices are also emerging in different parts of Borena. The smallholder account for 96% of annually cultivated land.

Identify programmes to scale-up or new interventions and areas of investment and for sustained agricultural and income growth. including the review and dialogue processes. Annex R1 7 . The national consultants. and food and nutrition security in order to achieve the national CAADP and MDG targets. The above approaches are in line with the methodology proposition contained in the ToR. This will be consistent with the NEPAD spirit of peer review and drawing on best practices. were expected to conduct an assessment of the necessary institutional strengthening and capacity building requirements for effective delivery of CAADP. According to the ToR successful implementation of the CAADP agenda will require strong and effective institutional arrangements at the federal. investment programmes and resource allocation in the agricultural and rural sector as well as the sector‟s performance in relation with the CAADP targets. regional state and sector levels.1 Methodology The following six major approaches were used in conducting CAADP Ethiopia Study.2. Possible linkages with regional and international organizations and initiatives were also part of the task assigned in order to find out adequate collaboration mechanisms. poverty reduction. this interview helped to identify key 30 Refer Vol. II. the NCs found out it was relevant to conduct interviews with selected stakeholders in order to garner methodological underpinnings and refinements. Secondly.  The second phase. which utilizes the outputs of phase one. and  The third phase focuses on assessing existing agricultural and pastoral institutions and identifies the necessary institutional strengthening and capacity building requirements for effective formulation and implementation of investment programmes for achieving the national CAADP and MDG targets. Unlike several studies which make interviews after submitting inception reports. strategies. strategies and programmes and indicate where policy and strategy updates should be. Methodology and Conceptual Framework 2. in collaboration with IFPRI. It underlines that the methodology should comprise a three-step approach:  The first phase focuses on the stocktaking review of existing policies. The role of bilateral and multilateral development partners will also be examined in this regard.       Two stage interviews: Before and after the Inception Report Three stage stocktaking Regional Consultation workshop Review of Document Trend and Gap Analysis Econometric modeling (by IFPRI ) The terms of reference of the NCs are a detailed one30. and monitoring and evaluation of the agricultural sector performance. will identify the gaps in the ongoing policies.

particularly starting from the launch of the first PRSP. The National Consultants Team designed three stage stocktaking. The participants31 were invited from all Nine Regional State Governments. the directors of the various Directorates of the MoARD were invited32. expenditure and related statistics. MoFED. In addition to this. Conceptual framework which was developed for an earlier agricultural growth workshop. Notes on pair wise ranking methods to rank proposed investment areas and programmes within each investment area Specifically item four above followed a grid analysis which simply is based on a matrix of policies. namely SDPRP. Findings from the first two stages stocktaking. Methodology of the national study and expected outcome 3. it was prudent to make a performance trend analysis of the sector as a result of the existing policies and strategies implementation. the NCs reviewed the first stage findings and prepared a document for the Regional Consultation Workshop. such as GDP. 31 32 Please see Vol. and later on refined and included in the IR 4. NBE. and institutional assessments 5. During this stage the consultants discussed on the existing policies and strategies. Minutes of Regional Consultation Workshop are attached as Vol. strategies and programmes following the four pillars of CAADP. gap analysis and institutions and their capacities assessment. The first stage was to take stock of existing policies. II Annex R2. or to get information on what the stakeholders feel in terms of noticeable gaps in these areas. is using food production indicators.stakeholders which should not be missed from the interview schedule. such as the rural economic development and food security (RED & FS). strategies and programmes. The participants were invited to be informed about the work done and at the same time to discuss the above document prepared by the NCs both in the general and group work sessions33. AGDP. On the basis of this. and others including donor groups. Background on CAADP. Regional Consultation Workshop was organized by the CAADP Ethiopia Focal Point Office. This document consists of the following sections: 1. secondly. This was completed and the 2nd stage was undertaken by taking the first stage findings to the various stakeholders at the Federal ministries. in terms of the overall economic performance indicators. and thirdly the trend in export-import (trade). First. II Annex R3 for list of participants. 33 See the attached programme of the workshop. and other relevant institutions 8 . as well as NGOs and civil society organizations (CSOs). 34 CSA. Before conducting the gaps analysis. gap analysis. Customs Authority. and programmes and solicited additional information to identify if there were any missed polices. 2. The same approach also helped to identify or receive relevant review documents and discuss on matters related to previous similar studies. strategies. From each region four bureau heads or senior staff from the four pillar areas were invited. and programmes on the column side and the four pillar components on the row side. The trend analysis was done in three major categories based on secondary data obtained from official sources34.

instruments and programmes. IS) Where NR = Natural resources HR= Human resources IF = Infrastructure (economic and social) IS = Policies. as well as the economic inter-linkages between agriculture and the rest of the economy. In the context of CAADP Ethiopia study. In a Recardian way this can be rephrased to land (natural resources). strategies.IFPRI took a share in the Ethiopia CAADP study to conduct economy wide empirical analysis using computable general equilibrium (CGE) model. labour (human resources). which is recently around 10%. Of course. The findings of this study are organized in two different volumes. the Agriculture Growth Workshop organized by the RED&FS on November 11. Whether it is agriculture or non-agriculture production. and budgetary allocation. 2008 also necessitated the same task. IF. strategies and institutions. the CGE model is expected to capture the trade-offs and synergies from accelerating growth in various agricultural sub-sectors. The NCs presented the conceptual framework (see Box 1 below) during this Workshop. which is around 15%. The model is considered in order to prioritize the various investment programmes in the agricultural sector for achieving the CAADP six percent growth target. in conventional terms. Box 1. water. Cognizant of the Ethiopia‟s recent AGDP growth rate. human resources. 3. Growth is a positive change in national production due to changes in one or more of the factors of production on the right hand side.2 Conceptual Framework It was important to set a conceptual framework to guide both the NCs and IFPRI team in undertaking the CAADP Ethiopia study. polices. strategy and 9 . 2. This volume contains the main findings. infrastructure (capital) and the rest representing technology and management. The Conceptual Framework for CAADP Ethiopia Study Hunger /poverty = f (National production) National production = Agricultural production + Non-agricultural production National Production = f (NR. the national production function model which is presented in the box is the core conceptual base to address the complex policy. This production function brings together the four pillars of CAADP to ADLI Ethiopia 2. the national product (NP) or the gross domestic product (GDP) is a result of various programmes and interventions undertaking both in the public and private sector in agriculture and non-agricultural spheres. forest etc). it is a function of natural resources (land. HR. Volume II contains results of documentation review and tables of relevant data used in the performance and expenditure trend analysis. conclusions and recommendations including the matrix for existing policies. infrastructure. It is important to recognize the role and influence of foreign contribution on the national production The economic potential as well as actual production level. strategies and institutions Notes: 1.

agricultural output will be an objective rather than a constraint in the CAADP economy wide growth function. Furthermore. The scaling up as well as the new programmes designing and implementation should be bound by a prior determined economy wide policy and strategy that ensures the achievement of MDGs. According to this conceptual framework. as well as in the institutional capacity development. the conceptual framework also entails those existing programmes which have not been implemented efficiently and effectively should be reinvigorating to achieve a preset efficiency and effectiveness measures. the NCs conceive any investment programme that has to be part of CAADP Ethiopia should fulfill the test of relevance. is no doubt that it is relevant and an essential ingredient in the national production system of countries like Ethiopia. For example. though not depicted explicitly in the conceptual framework. The framework also embraces the CAADP initiative that programmes of positive effect should be scaled up. This conceptual framework depicts hunger and poverty as a function of the agricultural production. specifically MDG1 and MDG7 by 2015. may contribute positively to the GDP growth but indirectly to environmental 35 36 Please refer sub-section 1. which is under production it becomes an indirect input to increase crop production. The CAADP investment programmes. efficiency. In general based on the above conceptual model. The foreign input. it should clearly set the linkage between programmes and projects.1 above Please see more on the definition of programme below. effectiveness. The programmes and specific interventions shall be those identified using participatory approaches and agreed by stakeholders who are well informed and understand the situations and conditions at the grass root level affecting the lives of the poor and hungry people. 10 . sustainability. the foreign sector support is vital but it has to follow the aforementioned programme-project linkage. an intervention can be an output or input depending on the level of the production stage and type of product. should avail to the development of sound investment projects design and implementation with acceptable economic and financial rate of returns. For example a soil and water conservation intervention could be an output in terms of rehabilitated and fertility augmented land or when soil conservation is practiced on land. a conducive policy environment to attract businesses in the unregulated wood processing industry. Besides. which is part of the national production system. new programme development and implementation. It could be realized through sound development programmes and investment projects by the public and private sectors.programmes for the reduction of hunger and poverty. in a direct way. Hence in the area of scaling up. Any project whether financed by internal source or external bilateral or multilateral sources should come under the CAADP programme. In addition to these. in the national production function presented in the above box. when necessary new programmes should be initiated and invested to achieve the CAADP targets. it is important to recognize the net effects of programmes/interventions on economic growth. The later should in turn be contained in the government budgetary framework as a cost center 36. which fulfill the quality35 test. as well as coherence with existing and changing institutional arrangements that open up for the involvement of all partners responsible to work together and meet MDGs. Besides. Commitments and actual resources (physical and financial) coming from foreign actors partly indicate the likelihood of implementing the recommended programmes towards achieving the MDGs. in simple terms measured by AGDP.

and Food Security resources to be mobilized Institutions= organizations + relations or linkages among (means). where situations which may constrain P=Production their use in a given strategic I=Income cum development plan. Programme: A framework that contains similar activities designed to bring developmental changes (result based). programme.E). strategy. set in a project format. Such negative outcome may make the net impact of the policy regime negative even in terms of growth indicators. This definition is also adopted in this study. E=Entitlement (access to resources) Strategies link the policy goals to programmes that are set in a given plan period. and broad goal oriented guiding declarations that affect different economic and social agents and institutions. and enhance growth with a continuous resource allocation from internal and external sources via annual recurrent budget or capital budget i. 37 (PIP is a three year rolling plan for capital and recurrent expenditure which uses Indicative planning figures for the resource envelope 11 . and institutional capacity development situation and gap analysis as well as in the econometric model. The Functional Setting of Institutions.I. It could be formulated and implemented at different levels of government and expressed in the form of laws. A programme may have sub-programmes and further contains projects as the government budget manual and the Public Investment Programme (PIP37) document defines and bound by resources (human. institution. Strategy: The route to achieve the desired policy goals via Box 2. Another example could be the use of inorganic fertilizer which may enhance the productivity and production of farm commodities but unless it is practiced with appropriate conservation practices may lead to the inefficient and unsustainable use of land due to its negative acidity augmenting factor.damage due to harm inflicted by the industry on the destruction of forest and the natural environment. The key terms are policy.. According to the FDRE government budget manual a programme is a broader cost center of a public body or a broad objective of expenditure. agricultural development. rules and regulations. For this the important task was to identify the key terms contained in the conceptual framework and which will have a detrimental role in understanding the situation and gap analysis of this study. financial. and food Security.e. and physical) via the capital budget appropriation or non-project regular government development interventions with the recurrent budget (resources) provisions. Agricultural specific elaborations of the Growth. and the conditions and Food Security = f(P. The next level of conceptualization is how to apply the above conceptual framework in the actual stocktaking. the institutions which organizations will activate and control the Agricultural Development=Agricultural Growth + Change means. In the context of CAADP Ethiopia study Policy: A statement of course of action set by the government in the management of agricultural development affairs.

Agricultural development has to major components: growth and change. Sanitary and Phyto-sanitary agreements on Ethiopia‟s relevant sector economic policies. Text in Amharic 40 * Text in Amharic 41 A separate volume on review of documents is prepared 12 . and programmes. 3. institutional issues are not only issues of organizational set up but relationships or linkages among existing or newly emerging organizations either in the private or public sector. production. . unemployment as well as inequity issues to resources and wealth access and distribution. MoFED. progress which (i) a broad spectrum of the reports of various Ministries and Bureaus. the Implication of WTO‟s Agreement on Agriculture.1 Core Documents Reviewed and the Notion of Policy The stocktaking exercise started by reviewing policy. reviewed government documents are the (ii) dependence on food aid is Revolutionary Democracy39. Food security is one of major areas of focus which is also explicitly contained in the CAADP pillars. Development Strategy (2002)*. as well as the recent EPRDF 7th Annual Meeting Report*40 policy and plan documents. and revealing the linkage between policy documents and ADLI. In order to comprehend the assessment of existing policies and strategies it is essentially to understand the three core elements of food security. Economy Wide and Sector Policies and Strategies It was essential to assess existing economy wide and sector policies and strategies before identifying pillar based policies. and several other studies by academicians and researchers in the relevant areas. hunger. The findings of this study are also based on the conceptualization of the same in the Ethiopia context. 2002. Implementation Capacity Building Strategies and Programmes* (2003). (iii) rapid Policy and Strategies (RDPS. strategies and laws (1999). Sustainable Development and Poverty Reduction (SDPRP.As shown in box 2. This include Millennium Development Goals Needs Assessment (MDGs-NA)for the Agriculture and Rural Sector and related MDGs reports ((MOFED. food insecurity. strategy and programme documents of the FDRE and Regional States Governments. strategies. & UN 2004). It is important to note that MDGs –NA has been 38 39 The Basic Objective of Economic Development in Ethiopia: For details see the review volume of this study. which are listed in the reference section and cited in the various sections of this report as deemed necessary. Industrial economic growth is assured. 3. a Plan for Accelerated and Sustained Development to End Poverty (PASDEP. income and entitlement. 2002). 2003). and.e. In addition to these several relevant studies conducted and the publication made to communicate the study results to end users are reviewed 41. MoFED 2006). Literature has an extensive coverage38 on these elements. The core Ethiopian people are beneficiaries. Change could be related to reduction of poverty. This chapter addresses the overall economy wide policies and strategies of the country‟s development by presenting a highlight on relevant documents. Growth is measured by monetary value of final goods and services produced in a given period of time (for example AGDP). i. Rural Development eliminated. published To build a market economy in and unpublished but relevant study reports.

rules. Starting at this level law. 42 43 Chapter 1 Chapter 7 44 Chapter 4 13 . As indicated in the introduction of Economy wide strategy: PASDEP. As a document of Five-Year Development Plan. sector policies. for example RDPS (2003). adopted by the Council of Ministers. as well as by the Parliament. or even in the periodic plan documents such as PASDEP. which also ends by 2015. strategies. In the context of Ethiopia it is also important to note that the lowest level of government that ensures the formulation and implementation of policy is kebele (Demese. The PASDEP in addition to being MDG compliant was also the lead document in the stocktaking exercise. hence the documents are policy documents too. As defined in the previous section policy documents are documents that explicitly state the governments‟ positions in terms of its action to direct the national economic development at large. ADLI is considered as the lead national economic development strategy and its specific strategic contribution to various sectors are incorporated in the sector policy documents such as RDPS or the Industrial Development Strategy. Overall. its objective is to define the Agriculture development Led Industrialization nation‟s overall strategy for development (ADLI) for the five years. and was finally adopted as a legal document. infrastructure. It includes the progresses and achievements under the SDPRP42. regulations and directives that affect different economic and social agents as well as institutions do also present the policy stances. with Sector strategy: the ultimate objective of eradicating Agriculture-centred rural development (RDPS) poverty. In this study. and people-centered economic development as well as to pave the groundwork for the attainment of the MDGs by 2015. which is the end of the MDGs period. Strategies do link the policy goals to programmes that are set in a given plan period. PASDEP is a plan document which has passed through an extensive process of debate and review within the government. say PASDEP (2005/06-2009/10). to lay out the directions Ethiopia wants to take. There is some confusion in terms of considering Agriculture-Led Industrialization (ADLI) as a policy.used in the preparation of PASDEP and it seems that it will continue to be useful in the next phase of five year programme after the end of PASDEP period. and capacity building among others. sustained. the main objective of PASDEP is44 to lay out the directions for accelerated. and programs of the PASDEP43 which includes agriculture. It is important to make note of what these policy documents imply in the context of this study. 2004). 2005/06-2009/10. and to outline the major More specifically: Agriculture-led development programmes and policies in each of the major sectors. and the agriculture sector specifically. defining the national development plan for the 5-year period. trade.

Agriculture accelerates trade and industry development by supplying raw materials. namely “rural-and agriculture-centred development”. RDPS and PASDEP The Agricultural Development Led-Industrialization (ADLI) strategy was the first comprehensive strategy launched by the EPRDF government and it continued to influence the formulation of successive policy. (iii) rapid economic growth is assured. It also means that a favourable environment will be created for the accelerated and sustainable development of the nonagricultural sectors. creating opportunities for capital accumulation and enhancing domestic market. Furthermore in the RDPS.3. encouraging the private sector. This strategy entails that in the development process the following will be attained: 14 . and plan documents such as the Revolutionary Democracy document which includes both policy and strategic issues. The CAADP Ethiopia NCs undertook the review of existing policies. enhancing the benefits of the working people. In this regard the basic directions of agriculture and rural centered development revolves around the extensive utilization of human labor. The statements contained in the box reflect the government‟s readiness to learn lessons from past policies and strategies and continue by correcting the mistakes of the past if deemed important by reviewing existing policies and strategies on the basis of the dynamics of national and international economic activities. it is stated that rapid economic development would be ensured through agriculture-led and rural. Trade and industry will grow faster following and in alliance with agriculture. targeted interventions for drought–prone and food insecure areas. proper use and management of land. strategies and programmes within the agricultural sector with the encouraging government position on such undertakings as explicitly stated in the RDPS (see box 3). and.2 The Linkage among ADLI.centered development. According to RDPS the “agriculture-centred rural development” strategy has been adopted as a major strategy and is expected to assist in the realization of the country‟s economic development objective. integrated approach to development. this study are twigged to RDPS and PASDEP with a clear understating of the GoE development objectives contained in the sector wide strategy. since it is growth in this sector that will form the primary market and generate capital and labour necessary for their development. and enhanced use of agricultural technical and vocational training. agro–ecology based development approach. More specifically it follows an agriculture-led development strategy. and the sector specific policy and strategy documents such as RDPS and the Industrial Development Strategy documents as well as the two consecutive plans that are ADLI complaint known as SDPRP and PASDEP. Development of trade and industry in Ethiopia cannot be sustainable without the development of agriculture. water and other natural resources. The Federal Democratic Republic of Ethiopia in its major rural development policies and strategies document underscores the basic objective of the nation's economic development endeavors: To build a market economy in which (i) a broad spectrum of the Ethiopian people are beneficiaries. CAADP pillar based policies and strategies which are identified and analyzed. strategy. SDPRP is Ethiopia‟s First Generation PRSP and its successor development plan is PASDEP. (ii) dependences on food aid is eliminated. By this it does not mean only developing the strategic sector of agriculture.

Box 3: Policies and Strategies are Subject to Review The policy adopted ensures “Building on policies already on the ground and taking into economic development through consideration practical experiences and lessons learnt over the considering the development experiences increased capital formation and past ten years as well asattained rapid economic development. However. whether desired or not i. MoFED 2003 and ignorance.” to deprivation. Proper utilization of agricultural land: This basic principle emanates from a believe that the path that will guide the agricultural strategies and policies depends on the use of land that 15 . and overall. It is believed that agriculture.. the of countries which have the use of modern technology.It measures will be provided from is important to device policies. strategies and programmes that the government particularly if will help us implement the goals we have set. . The government also stands ready to translate these strategies into concrete action. The purchasing power of the rural population is increased.e. This strategy focuses on developing the agricultural skills and work initiatives of farmers. But it is perhaps population groups are vulnerable even more important to be able to revise these as the need arises and to adjust our goals according to developments over time. can be developed with relatively less capital outlay. The strategy does not envisage employing backward technology and excess labour. it rules out a direct support while the approach enhances the productive capacity of the working population and to direct this capacity for development via improving labours‟ health status.. disease RDPS. especially smallholder agriculture. work initiative and skill levels. poverty. A market-oriented economy is created As presented and explained in part Basic principles governing agriculture development two section one of RDPS the basic policy (RDPS) principles that govern agricultural • The labour intensive strategy development policy in Ethiopia • Proper utilization of agricultural land include the following: • A foot on the ground Labour intensive strategy: The • Taking different agro-ecological zones into basic premise of this strategy is account that accelerated and sustained • An integrated development path growth can be brought about in Ethiopia not through capitalintensive but through labour-intensive production methods. the development approach does not envision the option of supporting non-working persons on welfare and other support. Government has now formulated specific policies and strategies to Direct assistance and/or support guide rural and agricultural development.        The majority of the population is made beneficiary and participates in the process rather than being simply on-lookers. Development should be seen from the perspective of equity and the objective of eliminating poverty. The development strategy seeks to enhance productive use of labour and land and because of shortage of capital the government will not apply capital-intensive production methods to land for the development of agriculture. In RDPS it is explicitly stated that one of the main reasons for Ethiopia to adopt the strategy of Agricultural Development-led Industrialization is lack of capital.

Strengthening the infrastructure backbone of the country. Integrating development activities with other sectors. Unleashing the potentials of Ethiopia‟s women. and Creating employment opportunities. The a. trade. Managing risk and volatility. agricultural development. strategies. Integrated development path: This principle recognizes that agricultural development embraces a large number of different products and activities. In other words the strategies for agricultural development will seek to draw opportunities for growth inherent within the available manpower and technology. diversification and PASDEP. and to make effective use of this knowledge in our development efforts. 45 Chapter 7 16 . Creating the balance between economic development and population growth.ensures broad access in a manner that will maximize its contribution to overall development. and PASDEP45 there are six fundamental agricultural f. In the chapter that deals with sector commercialization of agricultural production. among Box 4. Adequately strengthen human resources capacity and its effective utilization. (ii) the western lowlands where there are large uncultivated lands and a small population. infrastructure. Establishment of effective agricultural development strategies (see box 4). The broad categorization of the zones include (i) the eastern and to some extent the southern arid lands where the main livelihood is cattle herding. These are:        Building all-inclusive implementation capacity. Ensuring prudent allocation and use of strategies and programmes of rural and existing land. and that promotes sustainability of the natural resource base. and programs of the e. marketing system PASDEP is footed on eight pillars (MoFED. and (iii) the highlands which are ideal for farming but where farm land is limited and rapidly being eroded and where population density is high. As highlighted above ADLI and RDPS. Therefore. c. latest reviewed and conditioned policies. A foot on the ground: This principle recognizes that it is necessary to record and pass on to the next generation practical experiences and indigenous knowledge. the agricultural development efforts will follow a development path that seeks to promote integrated activities. b. 2006). and markets and market access are contained in d. Adaptation of development path compatible with different agro-ecological zones. are used to lead the agricultural development strategy preparation and implementations of the two (PASDEP) successive PRSPs: SDPRP and PASDEP. A massive push to accelerate growth. Fundamentals of Ethiopia’s other sector strategies. policies. Taking different agro-ecological zones into account: This principle embodies that all efforts will be based on detailed development plans for each agro-ecological zone. Specialization.

commercial farms undertaking. In general the CAADP Pillar based existing policy. As one of the fundamental strategies indicate. strategy. as well as the recommended changes in the policy. is not deterrence for specialized. and to the fundamentals of Ethiopia‟s agricultural development strategy. and the modern private sector at large. small farmers are expected to play a leading role in agricultural development of the country. farmers and pastoralists have been encouraged to focus on agricultural activities where they have the best comparative advantage. small-scale irrigation and water harvesting are also part of this strategy.During the PASDEP period. 17 . and programme identification. however. and there by contribute to the overall growth of the economy. the Government will facilitate appropriate conditions through providing necessary infrastructure. and increasing off-farm income opportunities. diversification and commercialization of agricultural production has been promoted based on agro-ecological zones. soil degradation. The emphasis on small farmers. where appropriate. economy wide strategy. gap analysis and the recommendations. The chapters following it present the trend. specialization. To this end. the strategy gives prominence for targeted interventions for drought prone and food insecure area: areas that are characterized by erratic rainfall. and. The next chapters present the situation analysis findings on policy. this strategy provides for the acceleration of agricultural development as well as the development of agro-industry. Livestock resource development with a special focus on small ruminants. land and new technologies to enable small farmers obtain relevant market information and fairly compete with well to do farmers. In these areas the major agricultural development activity to be undertaken is aimed at increasing the income of the farmers and pastoralists through activities focused to enhance food security through measures to reduce the volatility of production (for example through irrigation where feasible). voluntary resettlement to more productive areas. Besides. strategy and programme according to the CAADP Ethiopia pillar configurations. the trend and gap analysis. cooperatives. Furthermore. basic principles governing agricultural development policy. sector-wide strategy. In view of this. low per capita availability of farm land. strategy and program areas should be linked to the above basic objectives of economic development.

programs related to the four CAADP Ethiopia Pillars. Specifically stakeholders were asked to solicit their feedbacks for any missing but existing policy and strategy as well as for any suggestion for a new policy and strategy to be considered to ensure the development of Ethiopia‟s CAADP responsive policies and strategies which eventually contribute to effective and efficient implementation of Ethiopia‟s agriculture sector programmes. Given this. Existing policies and strategies are identified mainly from PASDEP and RDPS. 48 The issue of institutions (both in terms of organizational set up and linkages) and capacity requirements is discussed in section 4 of this report. strategies. Land is the common property of the Nations. In pillar I. 18 . 46 47 For the stages. Strategy and Programmes This chapter contains the stocktaking on policies. and Peoples of Ethiopia. Some pointed out that no country has policies and strategies that are exhaustive and be able to cater for all needed development interventions. Nationalities. Often the discussions made revolved around the problems of implementation that are mostly associated with institutions and capacity problems48. The existing policies and strategies identified were presented for various stakeholders for further discussion and refinement at the different stages of the stocktaking exercises 46. to use and. respectively.1 Natural Resources Management and Utilization (CAADP Pillar I) 4. 4. traditional and communal land use system specifically targeting PAP areas. Extending these. Land policy remained a constitutional proper which was further elaborated in the policies and strategies contained in RDPS and PASDEP. The Constitution also states that the right to ownership of rural land and urban land. please refer to the methodology section of this report. every Ethiopian has the right to the ownership of property. In the context of CAADP Ethiopia Pillar I. The complete list of existing policies.1.1 Existing Policies and Strategies Under Article 40 of the Federal Constitution of 1995. What is important is to recognize the dynamics of policy and strategy formation which is conditional to national and international economic affairs changes. Table 4. This right includes the right to acquire. and shall not be subject to sale or to other means of exchange. is exclusively vested in the State and in the peoples of Ethiopia. and 6 policy positions.4. the problem in Ethiopia today is not much of a paucity of policies and strategies in the agriculture sector but that of implementation problems. strategies and programmes is as shown in the annex. At present there are 46 national agricultural policy positions and several strategies covering the four CAADP Ethiopia Pillars47. 13. in a manner compatible with the rights of other citizens. All stakeholders met for this purpose seem to concur that in terms of existing policies and strategies the country has what is reported in the annex is up to date. RDPS and PASDEP contained detailed policy directives revolving around appropriate land use planning.1 gives the detailed policy statements related to this.1. and IV. broadly. 10. III. land information data base. as well as of all natural resources. to dispose of such property by sale or bequest or transfer. II. 17. Pillar based Situation Analysis: Policy.

with specific sections. Of course. The forest policy and strategy of the country was published by MoARD in 2007. and integrated water supply and sanitation. are policy issues related to irrigation development. and management of state forest. conservation and utilization The wild life of the country is protected and developed.1 Table 4. livestock water supply and watershed management. 1999). Core for agriculture however. as well as the development and enhancement of small. for example by magnifying the development and enhancement of small-scale irrigated agriculture and grazing lands. Promote the availability of water nearer to pastoralists as much as possible by providing livestock water supply to all the regions particularly to PAP areas Promote participatory watershed development to enhance watershed based agricultural production. The policy statements. medium and large-scale irrigated agriculture. forest development technology.1. revolve around issues of private forest development. forest protection. the Water Resources Management Policy gives details. forest and wildlife. Watershed Development Private forest development Forest development technology Market for forests Management of state forest Forest protection Information system Wild life protection According to the Ethiopian Water Resources Management Policy (MoWR.1. Prepare a sustainable and proper land use plan. 19 . water. These are also included in the Water Resources Management Policy.the policy issues and policy statements related to natural resources management and utilization revolve around land. The existing policies in this regard are listed below Table 4. livestock water supply.1 Policy Issues and Policy Statements for Core Pillar Components Policy Issues Land acquisition Land use Investment on land Irrigation Development Livestock Water Policy Statements Provide land free of charge for every Ethiopian citizen who wants his livelihood in agriculture. sanitation.1. as presented in Table 4.1. Ensure the right of access to land to private investors who wants to invest on land on long or short term lease Ensure the development of multipurpose different size irrigation schemes where appropriate. Fostering private forest development and conservation Expansion of forest development technology Expanding market development for forests Administration and management of state forests Protecting forest resources from threats Establishing modern information systems on forest development. and information system. The specifics related to these policy regimes are those reported in Table 4.1. the detailed policy directives on water revolve around issues of drinking water supply. water supply for industrial use. market for forests.1.

1.  Sustainable land administration and use. Table 4.The strategies to implement the above land.  Forest resources protection and management. In the context of a framework approach according to PASDEP. Conservation and Utilization (MoARD.ecological zones  Prepare and promote watershed based  participatory land use planning  Prepare land management plan that considers  different agro-ecological zones and soil and  water conservation principles Promote and encourage the system of  controlling free grazing and cultivation on slope  areas Establish land information database system Instrument Prepare methodology and guidelines Survey and land registration Prepare maps for land resource plan Enforcement of existing laws Provision of land holding certificates Promotion of public information and awareness Capacity building at all levels Recognition of pastoral traditional institutions     4. water and forest policies are contained in RDPS. However.1.2 Example on Existing Policy. and Proclamation on Forest Development.  Forest resource management. Strategy and Instrument Linkage Policy: Prepare a sustainable and proper land use plan Strategy Prepare and implement a guiding land use master  plan that considers agro. The detailed strategies and instruments that commensurate with the above policy regimes are reported in the annex. For example the strategies for the policy of preparing a sustainable and proper land use plan are listed in Table 4.  Water management for irrigation.2. 2007).2 Existing Programs As defined in Chapter three a programme is a framework that contains similar activities or a broader cost center of a public body. as well as in the Policy.1.  Soil and water conservation. and  Sustainable land use management. the cost centered natural resources programs as obtained from MoARD Planning and Programming Directorate and EIAR Planning and Budget Department are the following:  Water harvesting and small irrigation development. and water sector policy and strategy (2001). Strategy. Some of the strategies are also elaborated with prior set instruments. and  Wild life conservation. PASDEP. the natural resources conservation and management programs are the following:  Watershed development and natural resource management. 20 .

specifically target one and two. and the Director of the DRM Directorate of MoARD 21 . early warning. 49 Including the discussions with the State Minister for DRMFS. and entitlement. The production aspects of food are contained mainly in the crop and livestock husbandry.1. It is important to note that. In the context of agriculture specifically farming. as well as relevant elements of natural resources and the environment. i.2 Food Security and Disaster Risk Management (CAADP Pillar III) Pillar III has two sub-pillars: Food Security and Disaster Risk Management.3.4. and strategies.e. while the supply side includes issues of imports/aid in addition to production. In this conceptual setting the vulnerability profile involves risk analysis.2. and Strengthening hazard monitoring. while entitlement refers to the ownership or access to land. Food security is a function of production/supply of food. strategies and programmes are discussed in two major parts: Crop agriculture. and improving the food marketing system. Disaster risk management is one sub-pillar of the indigenized CAADP Ethiopia Pillar III. forecasting. reducing poverty and hunger by half at the end of 2015. Both sub-pillars focus on crop agriculture. livestock and pastoralism. hazard assessments. Income reflects the opportunity and realization of earning from self or other employment engagements that at least. has put people at the centre and designed to manage vulnerability (shocks) in a decentralized manner by focusing on all-hazards in a multi-sector approach.1 and 4. During the serious of discussions made with various stakeholders49 in the context of Ethiopia. food security can also be ensured through non-farm income and employment by promoting and strengthening the micro-and small-scale enterprises. emergency is taken as part of a bigger policy and strategic framework which is identified as an issue of disaster risk management. ensure an individual‟s ability and capability to meet daily dietary requirement. In the food security realm stability of supply and access to supply (purchasing power and access to market) are critical areas of concern. This issue has been already institutionalized through the recent practices of business process reengineering. The AU /NEPAD/ CAADP pillar was focusing on response to emergency crises. In a nut shell Disaster risk management. In more elaborated way vulnerability profile-based disaster risk management requires: • • Designing and implementing disaster risk reduction interventions/programmes to minimize vulnerabilities and disaster risks. as well as programmes that are relevant to lead to the achievement of MDGs. and livestock and pastoralism. Below the identified existing policies. and response system for effective DRM These conceptual underpinnings is important to identify policies. as adopted by GoE. supplementary employment and income generating schemes. the following policy statements direct both parts. income. and they should be considered as integral parts of the policy statements listed on Tables 4. and vulnerability analysis.

2. 4. programmes and instrument 22 . and Reduce food aid and strengthen economic independence. 50 51 Includes field. Ensure adequate supply of fertilizer through domestic production and competitive and efficient fertilizer importation and marketing system Seed/seedling production and Develop an effective seed production and supply system supply through participation of public and private sectors Integrated pest management Establish an environmentally sound system of plant protection using integrated pest management system Each one of the above policy statements are further accompanied by strategies.2.2. adopt. instruments and programs51.2. and distribute technology.1.1. For example for the policy to provide support and technology packages that enhance specialization and diversification appropriate to the different agro-ecological zones. and irrigation development in the different agro-ecological zones of the country. RDPS states that utmost attention is to be given to increasing productivity and production through sustainable conservation based agriculture.1. Import. the identified strategies and instruments are as listed in Table 4.1 Crop Agriculture 4. horticultural. strategies.2.1 Existing Policies and Strategies The economic policy environment has a vital role to play on the effective implementation of the food security program. industrial and spices and herbs Refer the attached annex for a grid which contains existing policies.1 presents the policy issues related to crop agriculture and food security from RDPS. Commercialization Domestic production and importation of fertilizer Expand and increase the quantity and quality of crops for domestic and export markets.   Assure accelerated agriculture growth through a sustainable basis.2. In relation to crop agriculture. Table 4. PASDEP and other commodity specific policy documents issued by GoE. Table 4.1 Crop50 Agriculture Policy issues and Statements Policy issues Policy statements Sustained accelerated agroProvide support and technology packages that enhance ecological zone based crop specialization and diversification appropriate to the different production agro-ecological zones.

distribution and agricultural inputs and application of agricultural technologies in a sustainable appropriate scientific and manner traditional management  Strengthen the effort of specialization.2 Example on Existing Policy.1.2 Existing Programs In order to implement the food security policies and strategies that are related to crop agriculture GoE put in place the development programs which are listed below.2.Table 4.and post-harvest losses to improve quality 4. where their productivity is the highest (adequate  lime application rainfall.2. diversification and practices commercialization of field crops on agro-ecological settings . These programmes are identified from the 2001 E.C (2008/09) annual budget appropriations for MoARD and approved 23 . and low moisture)  Better drainage management practices  Transformation of the smallholder farmer through specialization and diversification of agricultural  Use of crop technology commodities /management packages differentiated by agro Increase production and productivity and harvests from ecological zones Vertisol fields  Use of crop agriculture  Increase productivity of land by providing for improved research findings for the agronomic practices of acidic soils various agro ecological  Expand irrigated agriculture through efficient irrigation zones water use  Training farmers on  Enhance the quantity and quality of products for local technology packages agro-industry and to augment foreign exchange earnings  Enhance agricultural and agro-industry developments to contribute to the overall growth of the economy  Support the development of large scale commercial agriculture and encourage the private sector participation where it is feasible  Strengthening of human resources capacity and its effective utilization  Strengthen the participation of the private sector  Promote the production and quality of high value/cash crops  Enhance food security through measures to reduce the volatility of production (low moisture areas)  Reduce pre. Strategy and Instrument Linkage Policy: Provide support and technology packages that enhance specialization and diversification appropriate to the different agro-ecological zones Strategy Instruments  Increase production and productivity by proper agriculture  Intensification and area land utilization to meet domestic food needs expansion agricultural land integrated with modern  Ensure the provision and supply .1.

agro pastoral and non. beekeeping.2. and it is for this reason that the Table below includes only this. Table 4. These commodities are milk.2. Similarly that of crop protection is implemented by the Animal and Plant Health Regulatory Directorate. and arid climate.1. on livestock development there is a policy which provides emphasis on animal feed resources development.2. honey and fish products. it is important to recall that programmes such as the Productive Safety Net Program (PSNP). in the drought prone zones the recommended livestock species are poultry production. In this Table. poverty reduction. Within the framework of RDPS. In moisture adequate areas.1 Existing Policies and Strategies The rural development policy and strategy recognize that livestock is one of the major contributors to agricultural growth next to staple food crops. Commodities like milk. the policies are presented by the core commodity areas of the livestock and pastoralism sub-sector that are also critical in attaining the national food security policies and strategies52. In addition natural resource protection and animal resources development are the strategies that are pursued to ensure food security in the drought prone zones. while in semi-nomadic areas the introduction of beekeeping technology through the extension service is given due emphasis. meat. Of course during the discussions we had with the Planning and Programming Directorate of MoARD.2. meat and fish are the focus areas to ensure food security in pastoral .2. and Resettlement programmes do exist but are not by themselves cost centers. 24 . In the case of the Disaster Risk Management and Food Security sector of MoARD.by MoFED. even in this fiscal year the implementation of various activities which were planned under the crop production programme are actually those implemented by the Agricultural Extension Directorate. and as explained later in the chapter which deals about gaps.2. and elimination of hunger both in the pastoral and non-pastoral areas. strategies.1 presents the existing livestock policies identified from the aforementioned documents.3 Existing Development Programmes in Crop Agriculture Programme area Existing Programmes Production Development  Crop production  Crop protection Disaster Risk Management and Food Security   Food Security Disaster Risk Management 4. The cost center is the Food Security Programme. The national and sector policies and strategies contained in the RDPS/PASDEP are developed to ensure food security. fragmented land holding. land degradation. and dairy production.pastoral areas. Furthermore.2 Livestock and Pastoralism 4. Household asset building. while that of egg and honey are also becoming alternative source of food as 52 Refer the annex for a grid which contains existing policies. small ruminant production (sheep and goats) are receiving special attention in areas characterized by high population. programmes and instrument in this subpillar. egg. Table 4.

1 Existing Livestock53 Policy Issues and Policy Statement Policy issues Policy statement Development with indigenous Enhance livestock centered specialization development that and exotic technology includes the importation of exotic breeds Pastoral extension package Develop livestock technological extension package for pastoral areas Small ruminants development Expansion of poultry production Honey and wax production Fishery development Expand and increase small ruminants in highly populated.2. These are also important areas of policy and strategy for pastoral and non-pastoral areas.2. Table 4. PAP areas do contain other policies that are related to livelihood and traditional resource management issues. fragmented landholding .2.2.2. These are presented in Table 4.2.2 Existing Policies Related to Pastoralist Livelihoods and Institutions Policy issue Policy statement Livelihoods Ensure pastoral livelihoods and their asset bases through the participation of the pastoral community and the use of pastoralist traditional and formal institutions Social services Expand and ensure access to basic social services Settlement Ensure settlement of PAP community members on a voluntary basis and with adequate and appropriate attention to natural resources and environment conservation. degraded and arid climate Expand and increase Poultry production in all mixed farming agriculture including agro pastoral areas Develop and expand honey production with special emphasis in irrigated areas.2. integrating with fruit and agro forestry Expand fishery development and production in water bodies where the potential is not fully exploited Table4. Table 4. poultry. In addition to the livestock policies that also cover PAP areas. apiculture and fish 25 .well as income mostly in agro-pastoral and non-pastoral areas. Table 4.2.3 presents the policies related to cross-cutting issues such as genetic intervention.2.3 Policies Related to Cross-Cutting Issues in Livestock and Pastoralism Policy issue Policy statement Livestock breed Enhance livestock productivity and production through breed improvement improvement. In addition to these two Tables.2. animal feed.2. Animal feed Promote animal feed production and development both in natural and compound form with due consideration for the protection of natural resources. and animal health. meat. Animal health Improve and expand animal health services 53 Includes dairy.

as appropriate.5. meat and egg. and genetic intervention. there is a need to capitalize on the indigenous knowledge and institutions by taking into consideration this basic principle. integrated development path. etc. veterinary. RDPS also recognizes that pastoralism is an important social system which has a significant contribution to agricultural growth.2. RDPS also addresses that these institutions should be used. age groups. the strategies for the policy to ensure pastoral livelihoods and their asset bases through the participation of the pastoral community and the use of pastoralist traditional and formal institutions are shown in Table 4.2. natural resources degradation (particularly the range cover in the pastoral areas). livestock feed. The policy on animal feed resources development has the strategies and instruments listed on Table 4. as well as settlement. In the area of pastoralists‟ livelihood and institutions. Although their role as source of foreign revenue is not captured by policy and strategy. Table 4.) and the modern state political and administrative institutions including the kebele setting.2. The genetic intervention policy regime includes different breed improvement interventions. According to PASDEP the accelerated increase in meat and milk productivity and production is planned to be achieved mainly through improvement in the production of animal feeds. The two systems support each other to effectively function in pastoral areas. livestock marketing. tribes. and targeted interventions for drought-prone and food insecure areas. lineage. Therefore. The policy to recognize and use traditional institutions to perform development works is established with the principles of integrating traditional and modern categories of institutions in the pastoral areas. These are the use of compatible development path with different agro ecological zones.4.2. The policy to expand and ensure access to basic social services emanated from the inadequacy /lack of basic social services such as education and health issues are addressed under this category.2. and environmental protection and management.4 Strategy and Instruments on Animal Feed Policy: Promote animal feed production and development both in natural and compound form Strategy Instrument  Improve forage production and supply  Forage banks  Expand industrial animal feed  Planting leguminous and multipurpose trees  Improve quality of crop residue  Development of back yard forage and  Improve natural pastures pasture feed  Improve oil cake supply 26 . these species could be an important source of cash income for the households which will enable them access to food. animal health care.2. These are traditional institutions (clans. to support the voluntary settlement of PAP community members in a way it is environmentally friendly and promotes proper use of natural resources. Genetic improvement of large and small ruminant and poultry mainly focus on the improvement of the indigenous breeds in their local habitat using selective breeding for pure breed improvement and cross breeding with known exotic breeds to improve productivity and production of milk. Livestock with short gestation periods like sheep and goats as well as poultry and beekeeping are considered as important contributors for pillar III (food security) supported with access to credit and market. The policy to ensure pastoral livelihoods and their asset bases addresses issues of drought.The basic policy directions related to livestock and pastoralism includes those strategic directions discussed in chapter three. water development. resource use groups.

agro-pastoralism.5 Strategy and Instruments on Pastoral Livelihoods Policy: Ensure pastoral livelihoods and their asset bases through the participation of the pastoral community and the use of pastoralist traditional and formal institutions Strategy Instruments  Develop participatory drought  Livelihood options: fishery.2.stall feeding in the highlands Construction of molasses depots in Afar and Somali Regions Silage making Table 4. Besides in regions that are designated as PAP regions. the livestock and pastoralism cost centered existing programs were collected from the Planning and Programme Directorate of MoARD and EIAR. the Bureaus of Pastoral.2. These include livelihood and asset 27 . Cognizant of these there are indeed major interventions. As it can be seen from the list there is no as such cost centered programme for PAP areas. This is because the existing set up in MoARD is taking the PAP issues as part of the established system. water points.reforestation. be it by federal or regional state institutions. expansion of animal health services.2. in the areas of improving livestock quality. The provision of drinking water. These programmes are presented in Table 4.2. water points desertification control  Strengthen participatory watershed  Retrieval and modernization of rotational management range use system  Encourage livelihood diversification  Rehabilitation/construction of feeder roads  Strongly initiate traditional NRM  Encourage agro-forestry social forestry mechanism intervention 4.6.  Encourage preservation of hay and dry  Focusing on timely restocking and destocking season forage reserve activities  Control drought induced livestock  Commercialization of livestock rearing diseases objectives  Facilitate local cross border trading  Training of community based animal health workers  Establish MFIs that is tailored to the pastoralist way of life  Establish community based drought EWS  Expand strategically placed dry season  Encroachment control .2 Existing Programs Similar to the other thematic areas. feed production.   Zero grazing. PASDEP involves a range of tailored program and policy responses that are specific to PAP areas and the people. Agricultural and Rural Development do have explicit programmes catering the pastoral and agro-pastoral interest. management mechanism herd diversification. grazing land and extension service for livestock production are essential components of support that will be provided to the pastoral communities.2.2. breed improvement and development of market infrastructure.

reducing the length of the marketing chain by expanding the role of cooperatives and associated commodity/service based unions. 2006). Strengthening Rural-Urban Linkage (RUL) The three sub-pillars are also linked to the policies and strategies contained in RDPS. access to basic social services. Each policy statement is accompanied with various strategies. Because of this recently it gave an increased attention for agricultural commodities marketing. expanding the production of exportable crops. 3. to improve market information. the following three sub-pillars pave the ground for what is to be done in terms of existing policy and strategy assessment. Market Access and Trade Capacities (CAADP Pillar II) 4.2. Table 4. and 3. programmes and instruments54. The existing policies governing the improvement of rural infrastructure. 2. Specifically. Accelerating private sector development. the core strategies and instruments of the policy of transforming agriculture through market based agricultural development are shown in Table 4. market access and trade capacities at national level are presented in Table 4.building. Accelerating market based agricultural development. improving the post–harvest technologies that are available to and used by farmers.2.1 Existing policies and strategies In this pillar of the study the assessment of policies and strategies started from the PASDEP pillars (MoFED.6: Existing Development Programs in Livestock Programme area Existing programs Development Production  Livestock and fishery resources  AI service  Animal health  Tryps and trypanosomisais control center Disaster Risk Management and Food security   Food security Disaster Risk Management 4. These sub-pillars are 1. under the pillar “Massive Push to Accelerate Growth”. For example.3 Improve Rural Infrastructure.2002) 54 Refer the annex for details 28 .2.3.3. and pastoral institution development supported with access to credit and market. The government is committed to transform the economy of the country led by a market driven agriculture sector which is strongly linked with the industry and becomes a base for an industrial economy formation.1. up grading markets close to the farmer as well as establishing central markets in the major towns of agricultural produce surplus areas (RDPS. promoting the use of grades and standards. promoting out grower schemes and other forms of contract farming.

which includes millions of small farmers. and access to income-earning opportunities between towns and surrounding rural areas. Embodying RUL as a strategic component of Agriculture and rural development emanated from the recognition that growth of agriculture will be enhanced as increased demand from farmers' fuels. The RUL specific strategies which are explicitly listed in PASDEP i. This is indeed an important strategy in a country which is also aggressively working to urbanize its population in order to provide adequate and appropriate economic and social infrastructures. integrating markets. the role of the public sector has paramount importance and hence a range of public investments and services are considered to help jump-start the process. Market Access and Trade Capacities Policy Issue Policy Statement Transformation Transform the traditional agriculture to modern and commercial agricultural through market driven development Acceleration and Accelerate market based agricultural development.1: Existing Policies on Improvement of Rural Infrastructure.e. and by both small and large farmers. 29 . at the early stages of transition to market agriculture. The expectation is that the major effort is to be exerted by the private sector. Besides. the strategy will revolve around a major effort to support the intensification of marketable farm products. are indeed multi-dimensional and pave the ground for integrated ruralurban vibrant modern socio-economic system formation. Table 4. and be competitiveness competitive in the international market Accelerate private sector development by ensuring private operators remain Private sector abide by the rules of free market Domestic market Road Expand and improve domestic markets emphasizing on value chain Expand and enhance the efficient use of available rural roads and transport services Power and energy Expand electrification to the rural kebele level Telecommunication Provide telecommunication services up to kebele level with a priority to woreda development centers and towns Foreign trade expansion Expand Export of Agricultural Products and their Markets Trade competitiveness Enhance the competitiveness of the country in the global market Access to WTO Accelerate the process of Ethiopia's accession to the World Trade Organization (WTO) The reviewed policy documents revealed that to accelerate market based agricultural development. as well as through supply-chain linkages among rural and urban actors and institutions.. and the growth in small towns and trading centers is hastened. However.3. opening up the flows of labor. the strengthening of RUL has been accepted as a core strategy in transforming the agricultural economy of the country.Commercial agriculture which is catering both the domestic and export market and uses the modern information technology (IT) system is the main elements of this strategy. both for domestic and export markets.

small-scale credit associations capacity development of private investors Develop and expand telecommunications. timely and accurate market information                Strengthening Rural-Urban Linkage (RUL) via the following specific strategies: .Integrating markets. establishing warehouse receipt and inventory system. and standardization on the basis of the services rendered Support towns to have well formulated development plans.3.Access to income-earning opportunities between towns and surrounding rural areas.2: Strategies and Instruments Contained in the Transformation Policy Policy: Transforming agriculture through market based agricultural development Strategy     Abandon the traditional system of agricultural production and adopt market-oriented approach Strengthen the linkage between agriculture and industry. diversification and commercialization of agricultural production. electric power.        Instruments establish and strengthen commodity exchange markets/center. develop commodity exchange and future markets. roads. Set up standards institute Design and implement certification system Carefully prepare development packages Strengthening of cooperatives (service and unions). Provide measuring devices befitting the system expand and strengthen abattoirs and centers for keeping live animals. continued spread of general education and technicalvocational training. strengthen quality control. standardization (domestic and adopting international standards) and grading system. and towns expansion. Widen the export market base commodities to increase foreign exchange earning Establish and provide adequate.Opening up the flows of labor. development of small-scale credit markets. . Promote specialization. establish agricultural marketing information system. and other economic infrastructures in the rural Disseminate information through mass media and technologies such as internet Contract appropriate international networks to obtain international market information improved rural access roads. and .   30 . building up of small rural towns.Table 4. build the capacity of agricultural marketing institutions. improved telecommunication access.

electricity supply. Overall. The pillar to strengthen the infrastructure backbone of the country is inclusive of provision of infrastructure in terms of expansion of the road network. especially in the lessdeveloped regions. providing basic cold-chain services at health centers. Among those targeted for niche market exploitation are livestock. and  The development of the capacity of the domestic construction industry. allowing children the light for studying. and as an input into agriculture. commercial agricultural production. improved seed production on farmers‟ plots. this will not be cost-effective. 55 Refer the annex for the on-going key strategies and instruments 31 . In setting PASDEP. as stated in PASDEP involves a major expansion of the road network with targets of constructing new roads by 2010 (90% of them in rural areas) and improved maintenance. Electricity is essential both as an input into the growth of the modern sector. because of low concentrations of population. horticulture and floriculture. Specifically. The efficiency and sustainability of transport services and the enhanced road network also need to be supported by appropriate policies55. and conducting relevant market studies to improve the supply and quality of other inputs. and processing. the roads network program.In the case of PASDEP‟s sub-pillar to accelerate private sector development. the government did make it clear that one of the challenges in view of the provision of these infrastructures is to redress the regional imbalances in infrastructure. for irrigation pumping. As part of this effort. or the high costs of reaching remote areas. In some cases. the primary objective of the Road Program under PASDEP is:  To sustain road sector reforms and to restore and expand Ethiopia‟s road network and provide a sustainable level of essential road infrastructure to the rural population. a strategy of exploiting niche markets has been considered. clean water supply. but to the extent that it is possible within available resources.  Side-by-side. It is also an important part of the social transformation. urban development. It was also clearly stated that the success of the road sector development program does not only depend on physical construction. the program assists in developing a strong management and technical capacity to manage the road network. efforts are being made to expand the connection of these areas. To improve and strengthen domestic market the strategy set includes undertake quality control activities in the major warehouse facilities. irrigation. The program‟s emphasis is on facilitating growth-both in agriculture and the modern sector-by opening up corridors and port linkages. it has been indicated that there is more regional decentralization of large national level institutions (such as ETC and EEPCo) to render them further integrate their activities with localized planning needs. and mining. and telecommunication services. tourism areas. as well as linking emerging regions better to the rest of the country. The government has realized that the access to electric power in rural areas is negligible and given its resources and the support of partners it is determined to electrify rural Ethiopia in the shortest possible time. but also as an essential ingredient of the rural transformation agenda to provide the basis for businesses and production in small to medium sized towns. which is needed to provide jobs and export earnings. and the use of more modern techniques and equipment at hospitals and secondary schools.

3. light. including access to the internet. providing social and economic infrastructure facilities and enabling the people to utilize the road infrastructure effectively. Ethiopia has made a huge investment in the basic multimedia backbone including the laying of fiber optic cables. It is believed that having basic telephone access in villages allows farmers to get information on prices for their crops and livestock products. Table 4. It also improves efficiency of local administration. Low productivity results in small surpluses and little cash. Furthermore.3. woreda-net and agri-net programs. ERTTP will continue to be a key part of the roads programme. It is a programme which fits well with the CAADP initiative since it focuses on reducing the travel and transport burden of the rural population by constructing road infrastructure. In the past three years these have facilitated the school-net.2 Existing Programme Existing programmes in pillar II are also identified from PASDEP and annual budget appropriation documents. called the Universal Electrification Access Program (UEAP). it was found out that the term programme is being used for non-cost centered undertakings in order to embrace major development initiatives. In telecommunications the core policy position revolves around upgrading and expanding the telecommunications network and services admitting that these are essential to modernize the sector and bring about national growth as well as greatly support the rural economy. is found to be important not just for businesspersons and exporters. and the introduction of satellite and radio communication technologies. and thus provide a sound and sustainable foundation for the on-going economic development effort in the country. keep personal or family ties. As they are energy poor. 32 . cheap and reliable domestic and international communications. but also to carry out duties of government. 4. more specifically the Ethiopian Road Travel and Transport Programme (ERTTP) and the power supply programme. encourages the development of trade and small businesses. support the teaching-learning process. as shown in the 2004 WMS results. Moreover. and hence less money to buy improved energy services. they have no energy to operate machines. education and agricultural extension. they then rely heavily on firewood for heat. At the wider level. such as the Ethiopian Commodity Exchange (ECX) project. During the assessment of existing programmes. There are also projects which are not clearly shown under existing cost center programmes under the Federal Agencies. and facilitates the provision of social services such as health. the ERTTP is expected to better support agricultural and other commercial activities in the regions.PASDEP included statements that confirm that people in poverty-afflicted rural areas frequently suffer from the so-called 'vicious circle' of energy poverty. and cooking. The major element of the power supply program during the PASDEP period has been the launch of a large-scale rural electrification program. Attempt is being made to break this circle. so they achieve low productivity. For example the roads programme. further degrading the resource base. Already.3 presents the existing programmes.

Table 4. and agricultural mechanization. and Inspection  Agricultural Marketing Information System  Agricultural Products Marketing (Domestic and Capacity Building)  Cooperatives Establishment and Strengthening  Socio-economic Research (EIAR) Rural infrastructure       Foreign trade  Road Sector Development Programme-Ethiopian Rural Travel and Transport Sub-Program Sugar Industry Development Universal Electrification Access Programme (UEAP) School-net Woreda-net Agri-net WTO Affairs 4. and generating and preparing country-wide technology packages in collaboration with different partners is the focus areas of GoE as it is elaborated in RDPS part three: Managing the Rural Development. Standards. The Ethiopian National Agricultural Research System (NARS) comprises.3 Existing Programmes in Markets and Marketing. Similarly the agricultural extension system has also a federal and regional set up. According to this policy framework. The Ethiopian Institute of Agricultural Research is one of the main research actors in the country‟s agricultural research system playing a leading role in undertaking agricultural research and coordinating research activities. the national research system is set with federal and regional arrangements involving research and higher learning institutions.1 Existing Policies and Strategies Setting up universities and research institutes oriented to agriculture and rural development. as well as the CGIAR partners.4 Agricultural Research and Extension System (Pillar IV) 4. soil and water technology. 33 .4.3. livestock technology. Currently the Ethiopian NARS undertakes agricultural research in the areas of crop technology. such as ILRI.Ethiopian Institute of Agricultural Research. Rural Infrastructure and Foreign Trade Programme area Existing Programmes  Agricultural Input Supply and Marketing Markets and marketing  Agricultural Input Quality Control  Warehouse Receipt and Credit Facility  Agricultural Products Marketing Promotion (Export included)  Agricultural Products Quality Improvement. Higher Learning Institutes. forestry technology. Regional Agricultural Research Institutes.

4. For example the crop agriculture research policy of sustained supply of technologies.1. and the livestock and pastoralism research policy of domestic technology generation strategies and instruments are those indicated in Table 4. technologies multiplication and distribution on a sustainable basis Livestock and pastoralism Undertake research on breed improvement. Both the agricultural research and extension systems (ARES) are directed by existing policies that are presented in Table 4.1 Agricultural Research and Extension System Lead Policy issues and Statements Policy issue Policy statement Wise use of natural resources Enhance agricultural research programs for sustainable land management. The regional level extension system prepare regional development packages based on the packages developed at federal level. and adopt domestic and imported importation technologies by ensuring the collection and documentation of information on the same. these policy regimes have strategies and instruments56. Throughout the nation a research and extension linkage has been established via advisory councils to facilitate the formulation of technological packages and its implementation. feed resources. 56 Refer to the annex for details 34 . wise use and maximum utilization of water and forest resources Sustained supply of crop Improve and strengthen agricultural technologies supply.4. Crop agricultural extension Enhance better extension services through improved crop agricultural research–extension–farmer and stakeholders linkage Livestock agricultural extension Enhance better extension services through improved livestock agricultural research–extension–farmer and stakeholders linkage Extension in PAP areas Enhance better extension services in PAP areas with the participation of traditional institutions. Table 4.2. Furthermore. and disseminate the same to beneficiaries through the development agents (DA) assigned at kebele level.The agricultural extension system at federal level does the preparation of country wide technology packages and improving these in collaboration with the regions. animal health technology generation and care. It also performs coordination and training provision activities.4.

According to the information obtained from EIAR. spices.4.2 are considered as existing programs contained in pillar IV. i.  Strengthen research-extension-farmers coffee and tea council at different levels  Maintain improved varieties and multiply breeder and pre-basic seeds and seedlings of released varieties of crops and distribute them to stakeholders Policy: Livestock and Pastoralism-Domestic technology generation  Improve the production and  Importation of technologies productivity of livestock through  Adaptive trial selection and cross-breeding  Technology testing and verification  Generate better technology  Labour intensive technology information information packages packaging  Release of improved technologies  Multiplication of released technologies The agricultural research programmes are obtained from the 2008/09 budgetary appropriation documents of MoFED.e. those listed in Table 4. on the basis of the definition given earlier in chapter two.2 Selected Strategies and Instruments on ARES Policy: Crop Research-Sustained supply of technologies Strategy Instrument  Adapt and generate and release varieties  Introduction and adaptation with improved agronomic and protection  Hybridization practices that can be used in crop  Labour intensive technology packages for diversification and specialization for food extension service crops and high value vegetables . Furthermore those listed as programmes under research are known by MoFED as projects but still remaining as cost centers.Table 4. the research programmes are being reformulated and the reformulated programmes implementation has already started in this fiscal year. 2008/09. 35 .4. Therefore.

4.4. irrigation and drainage  Moisture stress crop and natural resources management  Forest resources improvement  Forest production and utilization  Soil fertility management and resource assessment  Socio-economics Crop Agriculture Research  Cereals  Pulses  Oilseeds  Fiber  Socio-economics  Plant protection  Agricultural extension and technology transfer  Agricultural mechanization and food science  Seed and research centers development and management Agricultural biotechnology Livestock and Pastoralism Research  Agricultural extension and technology transfer  Feeds and grazing .animal nutrition and apiculture  Milk and draught power  Agricultural mechanization and food science  Agricultural biotechnology  Meat and poultry  Fishery and Aquaculture  Agricultural biotechnology  Animal Health  Socio-economics Extension  Agricultural extension and TVET Extension Extension  Agricultural extension and  Agricultural extension and TVET TVET 36 .2 Existing ARE Programmes Natural Resources Research  Water harvesting.

BoTI. EPA. Donors. Global Mountains Programme Regional Local NGOS CSOs Donors and bilateral/multilateral institutions Mass Organizations Private CGIAR Affiliated 37 . Sasakawa-2000. EAAP. The outcome of the discussion is summarized in Table 5. RDPS also directs private sector institutions activities by providing favorable environment for production.1. while NGOs and CSOs are stakeholders and implementing bodies working in line with the GoE policies and strategies. Strategy and Programme Implementation Government Category Federal Organization MoARD. FTC Woreda Administration. IA. they are also stakeholders and beneficiaries of the agriculture and rural development policies and strategies.2. DAG Cooperatives.RED&FS. Pastoralist Forum.QSAE. Woreda Development Offices. These institutions are classified into seven categories.TVET. Cooperative Agency. EIAR .1. As indicated in Table 5. Agri-service. Import/export organizations. however. RRA. Customs Authority. Higher Learning Institutions (HLI). Think-Thank Groups FAO. Except CSOs.1 Category and Organizations involved in Policy. MoTI. Multilateral and Bilateral donors are also essential development partners in the execution of policies and strategies. Institutions RDPS and PASDEP have explicit explanations on institutions which are responsible to implement the existing policies.PEPA. MoFED. and market and trade. and the CGIAR affiliated institutions. strategies and programmes discussed in previous chapter.1. BoFED . Kebele Council and Administration. Cooperative Agency. MFIs. Wildlife Authority BoARD. Consulting Firms. Investment Agency (IA). SLUF 14 disciplinary based agricultural professional societies. WFP. These are  Government  NGOs  Mass Organizations  Private  CSOs  Donors and bilateral/multilateral institutions  Domestic agricultural research and extension as well as CGIAR Affiliated institutions This classification is also used to assess the state of existing institutions in the CAADP Ethiopia study. the others role and expected synergy is highlighted in RDPS and PASDEP.5. DRMFS. MoWR. investment. EPLAUA. Table 5. Youth Association Commercial farms. BoWR. In this context. UNDP. went further to capture the existing synergy using the different forums to discuss with stakeholders. The NCs. HLI. Women Association. Commercial Banks ILRI.1.ERA. Community Based Organizations CRDA.

Responsibility.1.Source: CAADP Ethiopia Study National Consultants Table 5.strategy and programs Monitoring and evaluation on budget use and Expenditure Facilitate input–output clearance(agricultural inputs) DRMFS Cooperative Agency EIAR Finance and Budget MoFED Trade and industry Facilitate trade between regions and federal Promote products at national and international level Provide access to market information at national and international Provide skill training and capacity building on business and trade and entrepreneurship Issues quality standards for agricultural products Public awareness creation QSAE   38 .2: Organizational Setting. Synergy and Partnership Category Organizations Synergy and partnership Government /Public Federal Responsibility Agriculture and Rural Development Setting MoARD               IBCR      Ethiopian  Revenue and Customs Authority MoTI     Capacity building/training Financial mobilization Technical support and advisory Technology generation and packaging Monitoring and evaluation Mobilize resources for food security and emergency Resettlement of people Livelihood and asset building Technical support and skill training Provision of credit facilities Technical and professional support Provide licenses for cooperative legal framework Supply of improved agricultural technologies Training and advisory services Germplasm conservation and exchange Awareness creation on germplasm conservation and utilization Budget appropriation and allocation Provide advice and guideline in policy .

Federal Affairs MoFA   Coordinate inter-ministerial board established to oversee the development in the PAP areas Prepare quarterly and biyearly progress report on the implementation of PAP development activities and submit to the inter-ministerial board Provides technical support for irrigation development Issues guidelines on water resources utilization Provides training on water resources management and utilization Trained manpower Technology generation Consultative and training services Impact assessment for agricultural development projects Technical support for the regions Financial mobilization Provide public connectivity Facilitate marketing networks Access to social service and economic facilities Training support Capacity building at all levels Technical support and advisory Technology generation and packaging Technical support and guidance Financial mobilization Monitoring and evaluation Budget appropriation and allocation Provide and advise on the financial and budgetary matters Monitoring and evaluation on budget use and expenditure Provides technical support for irrigation development Issues guidelines on water resources utilization Provides training on water resources management and utilization Technical support on environment protection and land administration for the woredas and kebeles Guiding and issuing land use certificate for farmers Facilitate and allocate land on lease for Water Resources Development MoWR    Education MoE/ HLI Environment protection EPA                    Infrastructure MoWUD/ ERA/ETC/EE PCo Regional Agriculture and rural Development BoARDs Finance and Budget BOFEDs Water resources development BOWRs    Environment protection and land administration EPLAUAs    39 .

register and issue land holding certificate for farmers Technical support and advisory Technology generation and packaging Provides technical support for small scale irrigation development Provides training on water resources management and utilization Technical and professional support for the establishment and strengthening of cooperatives Provide licenses for cooperative legal framework Facilitates marketing opportunities for agricultural produces Facilitate access to credit Assists the supply and distribution of agricultural inputs Capacity building/training Financial mobilization Monitoring and evaluation Budget appropriation and allocation Provide and advise on the financial and budgetary matters Monitoring and evaluation on budget use and expenditure Community mobilization Facilitate for the issuance of land holding certificate Assist in the establishment of primary 40 . Cooperatives establishment and strengthening Cooperative Agencies      Infrastructure BoTI/BoWUD  /RRAs                    Kebele Development Kebele Council/ Administratio n    Woreda Agriculture and rural Development WoARDs Finance and Budget Woreda council/admin istration private investors Impact assessment for agricultural development projects in the region Technical and professional support for the establishment and strengthening of cooperatives Provide licenses for cooperative legal framework Facilitates marketing opportunities for agricultural produces Facilitate access to credit Assists the supply and distribution of agricultural inputs Provide public connectivity within the region Facilitate marketing networks Access to social service and economic facilities Training support to woredas Survey.

 Mass organizations At all levels of governm ent Voluntary association for development Women Associations Youth Associations Private Finance Commercial banks MFIs              Research and Development Research Departments Commercial farms Import/export organizations cooperatives Participate in project implementation and follow up Promote the organizational aspects of women and youth Facilitate the participation of women and youth in community development Advocate for the protection of women and youth rights and privileges Entrepreneurship Provide service to private commercial farmers Provide credit services Facilitate savings and money transactions Technology generation and use Employment Contribute to food security Export expansion Import substitution Provide marketing information on exportable and importable commodities Source: CAADP Ethiopia Study National Consultants 5. and Offices. and (c) providing financial and technical support. At the federal government level. Currently we have seven Universities which have distinctly established colleges or faculties of agriculture. Bureaus. The Federal Government also has the responsibility of preparing country-wide technology packages and improving these in collaboration with the regions. (b) setting up Universities and Research Institutes oriented to rural development.1 Federal Institutions Institutions are key elements of a policy formulation and implementation process. Commissions. zonal. They can be seen from the stand point of organizational set-up and relationship or linkages among organizations. Agencies. At Federal level. Of course. regional. and woreda). Authorities. 2002). The relationship or linkage refers to the formal system in place in order to facilitate the working relationships and linkages between or among such organizations at all levels of government (federal. the Federal Government performs the task of coordinating agricultural marketing and the supply of inputs on a countrywide basis. MoARD is responsible for the implementation of agricultural policies and strategies fostering a sustainable value chain development for the public and private actors engaged from the supply of inputs to the sale of raw or processed agricultural commodities. the main development tasks are (a) building the rural development capacities of regions. Further. It performs these development tasks without any compromise to the decentralization policy of the Government (RDPS. In the public sector organizational set-up follows Ministries. 41 . Kebele is the lowest level of government set up with its own institutional arrangements.

Ethiopian Seed Enterprise. encompasses four developing PAP regions. MoFA compiles quarterly and bi-yearly reports and submit to the PSC in the parliament and the Inter-Ministerial Board. o Pastoral Areas Development Departments. agricultural and rural development policies and strategies (Table 5. MoTI. using its independent undertaking. BoWR. Cooperative Agency. the Woreda Administrative Councils.2) In the PAP areas for the implementation of RDPS the institutional arrangement at the federal level include: o Pastoral Standing Committee(PSC) in the House of Representative. inter ministerial institutions in the forms of committees or Boards of MoARD. Horticultural Development Agency. and o Developing Regions Coordination Office in each of the nine Ministries. and Benshangule Gumuz. and Revenue and Customs Authority.1. Planned activities by each Ministry are discussed at the Technical Committee level. has also similar institutional arrangements to that of the Federal Government. coordinated by the Ministry of Federal Affairs. there are institutions which directly or indirectly affect the agriculture development initiatives of the country. under the coordination of MoFA.1. MoE and MoWUD play supportive role in implementing pastoral. These include Quality and Standards Authority of Ethiopia (QSAE). EPLAUA. which mainly coordinates the extension activities in PAP areas. while Afar and Somali have established Bureaus of Pastoral. Ethiopian Grain Trading Enterprise (EGTE). under the Ministry of Federal Affairs (MoFA). Ethiopian Institute of Agricultural Research. MoARD has a Developing Regions Coordination Office. The pastoral institutional arrangements at the federal level. respectively. In addition. This includes BoARD. and SNNPRS stand by their own institutional arrangements. Semi-Pastoral regions like Oromia.1 and 5. MoFED. 5.1. WoARD and Kebele Administrative and development councils are the key players in implementing the agricultural policies and strategies. Agriculture and Rural Development. and National Veterinary Institute. In addition to the institutions discussed above. Institute of Biodiversity Conservation and Research. BoFED. RRA. o Inter-Ministerial Board consisting of nine Ministers. EIAR oversees the research interest of the PAP areas through its Developing Regions Capacity Coordination Office. 42 . Somali. For example. and agreed action plan document is presented to the Inter-Ministerial Board for endorsement. which include Afar. as shown in Tables 5. MoWR. 2 Regional and Woreda Institutions Every region. Gambella. The Heads of the Coordination Office under each Ministry makes the Technical Committee under the Inter-Ministerial Board. whereas at Woreda level. Oromia and SNNPR have established Pastoral Commission and Bureau. The endorsed document is then released for implementation by members. MoFA.These spheres of activities and responsibilities of MoARD have been executed through Disaster Risk Management and Food Security Agency.2.

Regional administration further have the responsibility of preparing regional development packages which are well adapted to the peculiar conditions of their respective regions and present and explain to Woredas. which are beyond the implementation capacities of Woredas. Addis Ababa. Further. it should be done that way (RDPS. In Oromyia and SNNPR. RDPS explicitly states that with regard to community based organizations structures. woredas are expected to mobilize various development capacities obtainable from different resource bases besides the government allocated financial resources. Besides extension workers assigned to the PAP areas are being given training mainly on 57 ELTAP study to Assess Rural Land Valuation and Compensation Practices in Ethiopia (ARLVCE). and their role in the development should be clearly established and agreed upon. efforts are being made on the part of NGO‟s to mobilize resources from other sources for the implementation of woreda development plans. The four Regions: Amhara. the civil service operational system starting from the regional level down to the lowest administrative rank should be the same in terms of both organization and manpower. October 2007. whereas in Tigray EPLAUA operates under the Bureau of Agriculture and Rural Development. It would be appropriate to create a favourable environment in which the resources and technical know-how of local and international NGOs can be properly utilized. and support in implementing infrastructural projects. In this case. In addition. Woredas will cooperate with kebeles in providing technical and financial assistance and doing development work that is beyond the capacities of kebeles. 43 . 58 Recently there is a change. For example in Oromyia it is currently under a new Bureau named “Bureau of Land and Environmental Protection”. 2003). In Amhara. Regional Councils approve annual budgets to Woredas. one task that should be accorded priority is the effort that needs to be made to coordinate the development initiatives of NGOs operating in woredas. and kebeles. If development works can be performed more productively under the ethnic structures. Ethiopia. These NGO‟s should know the development plan of the woredas. rural land administration and utilization activity is under Natural Resources and Land Administration and Use Department of the Bureau of Agriculture and Rural Development58. and efforts should be made to understand that the plan is consistent with the overall rural development strategy. Oromyia. have had varying approaches to providing for the institutional set-up for this purpose. and also of following up their implementation and revise them as required on the basis of agricultural development packages forwarded by the federal government institutions. Regional administrations are responsible in training professionals and technicians working in Woredas and Kebeles and deploy and promote them. there is practically no significant rural land administration and utilization activity at the Federal level. Environmental Protection and Land Administration and Use Authority (EPLAUA) is directly accountable to the Regional Administrative Council. and Tigray on the other hand. Woredas will formulate broad woreda-level development directions and kebeles will base their development work on these guidelines. there is no need to make PAP areas the same as those to be set up in other regions. The important point that is underscored is that the political leadership and organizational structure could change depending on the particular conditions prevailing in each region. SNNPR. regional administrations are responsible in implementing such plans in accordance with overall development plan elaborated at the federal government level. As regards to agricultural marketing and supply of inputs. In the PAP regions. Further.As reported in a recent study57.

livestock development and related subjects. Specifically, the agricultural extension services are increasingly focusing on livestock feed, animal health and related activities.

5. 3 Development partners: NGOs, CSOs, and Donors
NGOs, civil society organizations (CSOs), and bilateral and multilateral donors constitute the main development partners in the implementation of RDPS, specifically the development programmes. Currently there are hundreds of NGOs working in agriculture and rural development areas throughout the country. Most of them are under the umbrella of the Christian Relief and Development Association (CRDA). CRDA plays a leading role in facilitating the works of the NGO taskforce, but responsibilities of resources mobilization are that of the NGO. On the government side, Disaster Risk Management and Food Security Agency coordinates NGOs involved in emergency and relief operations. There are fifteen agriculture based CSOs legally registered by the Ministry of Justice. Most of them are discipline based societies such as Crop Science, Animal Production, Horticulture, Agronomy and Physiology, Plant Protection, Weed Science, Veterinary, Soil Science, Forestry, Agricultural Engineering, and Agricultural Economics Professional Societies/Associations. Recently an umbrella organization which is registered as Ethiopian Association of Agricultural Professionals (EAAP) in various disciplines and addresses development and policy issues that are cross-cutting and multi-disciplinary by emphasis is established. Broadly the donors can be categorized into bilateral and multilateral. On the part of the Ethiopian government, MoFED plays the key role in donor coordination and resource mobilization, whereas sector ministries implement specific programs and projects. Bilateral assistance includes technical cooperation, project/program supports and sector development. Bilateral development cooperation is managed by respective development cooperation agencies of the different governments such as CIDA of Canada, USAID of USA, GTZ of Germany and DFID of UK. Multilateral donors are the major lenders of Ethiopia. The major multilateral donors are IDA and IFC59, AfDB, EU, and UN Agencies. In view of CAADP their focus areas are food security, poverty reduction, natural resources management and environmental protection; and crosscutting issues of governance, gender, HIV/AIDS, nutrition and investment on economic and social capital. Mostly the support that comes through the bilateral and multilateral institutions takes a project format. The project aid often is combined with technical assistance and capacity building, in addition to specific grass root oriented development interventions. Some pursue non-project support which includes sector development programs in education, health, road and water. At present among donors, the overarching coordinating body in Ethiopia is the Development Assistants Group (DAG) which bring together most of the bilateral, multilateral, as well as UN Agencies. This group seems to engage in some policy and strategy formulation process, and they have had a participation in the PASDEP setting. Recently there is also a formation of what is
59

Institute of Development Association and International Finance Cooperation respectively

44

known as RED&FS group, which technically is a sub-set of DAG with a special interest and focus in SLM, Food security and agricultural growth issues. Development cooperative objectives generally focus on poverty alleviation, and in line with the government strategy, specific interventions are mainly directed to agricultural development and food security as well as social services. Area focuses of interventions are education, health, food security, and institutional capacity building.

5. 4 Cooperatives
In the RDPS document it is stated that in countries like Ethiopia where millions of farmers are engaged in subsistence agriculture on fragmented farm plots, cooperatives play a significant role not only in creating improved marketing system and providing market information, but also in other agricultural development works. It would be no exaggeration that neither meaningful agricultural development nor an efficient agricultural marketing system can materialize in Ethiopia without having a visible breakthrough in the development of cooperatives. Cooperatives play important role which include facilities to collect and provide storage services; credit services to farmers; access to credit by expanding rural banking; facilitate trade transactions; and provide agricultural machinery, equipment and implements to farmers on lease. Hence, setting up and strengthening cooperatives is critical in implementing rural development policies and strategies in Ethiopia. The strength of cooperatives is dependent on the support that they are rendered in terms of a strict monitoring of the application of cooperative laws. The effort being made to instill behavioral change to eliminate outside interferences in cooperative operation is going along the strict enforcement of cooperative legislation. Recently cooperatives are getting technical assistance which enables them to gain legal personality and recognition. According to the information obtained from the Cooperative Agency, leaders and members of cooperatives are getting leadership and other relevant training. Indeed such endeavors will prepare cooperative leaders and members to better meet their respective roles more effectively.

5. 5 Warehouses, Commodity Exchanges and Traders Associations
Establishment of commodity exchange and future markets are also part of the government‟s institution building efforts. The evolution of strong service cooperatives and cooperative unions are a prelude to having such commodity exchange centers. As indicated in RDPS the establishment of commodity exchange centers was essential to facilitate the gathering of reliable, timely and complete information including market price information. The relevance and importance of international market information, especially commodity prices, is quite evident. Therefore, the commodity exchange center (ECX) is established to facilitate the gathering of such reliable, timely and complete information. Currently the Warehouse Receipts System is in place. It focuses initially on maize, sorghum and wheat, but currently works with other commodities and is strongly linked to ECX. It was initially initiated in the Ministry of Trade and Industry (MoTI) via a proclamation in October 2003 to provide a Warehouse Receipts System for stakeholders. Immediately the system became operational through establishment of an authority accountable to the MoARD. 45

5. 6 Micro Finance Institutions and Micro and Small Enterprises
Broadly the policy and strategies, as well as the institutional aspects of the rural financial system are addressed in RDPS. In this document as a strategy considerable weight is accorded to strengthen institutions engaged in rural finance and create new ones, because otherwise agricultural development can be sluggish, and its contribution to the development of other sectors will be undermined. The major financial institutions which can contribute significantly to rural and agricultural development are the existing commercial and development banks, rural banks and cooperatives. The National Bank of Ethiopia should develop an appropriate legal framework to promote rural banks and coordinate their operations. It is the policy of the Government that although it may give them special assistance owing to the crucial role they play in rural development, they must be absolutely free from any kind of interference. Linkage among these institutions is also detrimental. Because of this efforts are being made to forge between rural banks and cooperatives through cooperative banks, exemplary in this case is the Cooperative Bank of Oromia, as this is vital for rural and agricultural development in general. Micro Finance institutions are one of the major financial institutions which are serving the current agriculture and rural development initiatives of the many poor rural agriculture and nonagriculture subsisting citizens. The GoE in its RDPS document recognized that the promotion of comprehensive farm input retailing system can be achieved through strengthening and expansion of rural Micro Finance Institutions (MFI) in addition to service cooperatives and farm input retailers. Indeed the creation of efficient and effective agricultural credit institutions, which have been liaising with the existing formal and informal financial institutions to extend the agricultural credit to farmers has increased farm input consumption, particularly fertilizer. The growth and expansion of microfinance institutions has helped the emergence, and proliferation of Micro and Small Enterprises (MSEs) mostly in rural agriculture areas. Indeed MSE emergence and expansion has also been supported by National Micro and Small Enterprise Development Strategy. This strategy emanated from the growing urban and smalltown economy, and increased domestic demand. The MSEs are particularly important in the context of Ethiopia‟s poverty reduction strategy as they are seed-beds for the intensified development of medium and large enterprises (vertical integration), and because they absorb agriculturally under-employed labor, and diversify the sources of income for farming families (horizontal integration). Areas of high potential for MSEs include animal husbandry, poultry, silk harvesting, honey production, small-scale garment manufacturing and metal work, construction, and increasingly urban-based services (for example solid waste collection, parking lots, small shops and repair services).  It is the strategy of the government to strengthen MSE by its support, mostly channeled through the Federal Micro and Small Enterprise Development Agency (FeMSEDA), and increasingly through regional ReMSEDAs.

Efforts have been initiated in the direction of value chain approach for tourism, floriculture, agro-processing, construction, meat, leather products and textiles and garments. This is also core

46

Regional ARIs‟ and ILRI. In terms of capacity it also falls short of the many requirements that. where access to markets and trade capacity building is vital for the development of the agriculture sector. to boost the national capacity on agricultural research. This task has continued by incorporating the research and extension component in the ongoing Rural Capacity Development Project. pastoral and agro-pastoral areas of the country. Therefore. In addition to these.7 Women and Youth Associations To implement agricultural rural development policies. Specifically.in the interest of CAADP as it is indicated in Pillar II. 5. RDPS has a detailed discussion on why it is important to mobilize youth and what has to be done in this regard. which includes the finance to establish new research centers to cover the uncovered agro-ecologies particularly in lowland. the strategy embodied in RDPS was to significantly augment the research capacity in terms of volume and quality. Leading in this aspect are EIAR. That is in order to ensure the participation of women in rural development. Business start up. Youth associations contribute a great deal to the active participation of youths in rural development. the acceleration of the growth process demands. among the institutions recognized by GoE are women and youth associations. Such continuous progress needs to be supported by a well-resourced institutional system for research and technology supply. Special development efforts targeting women have been made so that they can gain the benefits of rural development which they deserve. To date the establishment of women and youth associations has gone to highest level starting from kebele up to Federal League. Similarly women‟s associations to be organized at kebele level are expected to make a significant contribution to the political and developmental participation of women and the benefits they derive from such participation. is receiving government support and facilitation for private sector expansion via SME. To effectively mobilize the youth. it was also necessary to increase their productive capacity so that women can be employed in all fields of activity on equal footing with men. at the beginning of SDPRP the FDRE Government took a major leap forward to strengthen the NARS by committing itself to borrow more than 78 Million USD. in addition to entrepreneurial ability. Today as a result of this strategy. The government has promoted agricultural entrepreneurship to make the youth of rural areas stay around their communities via small business start up. The main task of these associations is to make them key players in the growth and development of the agriculture and rural economy both as self employed entrepreneurs or sources of skilled and unskilled labour for the growing and expanding rural agriculture industries. At the start of the first PRSP (SDPRP) the country already had a considerable capacity in agricultural research but with main shortcoming of not covering all agro-ecological zone of the country. they need to have their own organization through which they can campaign for their own rights and economic interests. 5. the nation is 47 . the country has several Agricultural Research Institutes established by Federal and Regional State Governments of Ethiopia or affiliates of the CGIAR. 8 Institutions for Agricultural Research and Extension RDPS endorsed sustained agricultural development requires a continuous process of technological change. strategies and programmes.

and imported agricultural technologies the entire technology transfer process should embrace both duplication and diffusion efforts. In addition. and home economics. ATVETs train DAs and the DAs in turn use FTCs to train farmers so that the later can augment their knowledge to increase the productivity of farm resources and ultimately increase their income via increased production and better marketing. On the livestock side there is the National Artificial Insemination Center. These institutions primarily focus on the biological technologies 60. Core in this regard is ATVETs and FTCs. which is currently operating through four sub-branches located in Oromia. Tigray. Furthermore. It is structured from woreda up to the federal level with committed resources. and one cooperative expert serving five kebeles. Research-ExtensionFarmer Linkage Council has been established to oversee and advise technology generation. and the recently established Regional Seed Enterprises. This is also found to be strategically compatible with the generation of our new technologies. as part of the system. 60 A detailed coverage is made in the Review Volume of this study. The new direction in the formation and strengthening of NARS is footed on RDPS lead strategic area that is. there is one animal health assistant per three kebeles. packaging and dissemination. It recognized that surveying. livestock production. there are several Public and Private Enterprises that are engaged in the multiplication and distribution of farm implements. As pointed out in RDPS the generation and selection of appropriate technologies need to be disseminated through strong agricultural extension service system.taking advantage of the many Universities and Colleges that are scattered in the different regions and agro-ecological zones. In addition to these. There is also the National Veterinary Institute producing and supplying animal vaccines and drugs. There are also institutions such as Agricultural Inputs Supply Enterprise (AISE) which procure and distribute fertilizers and chemicals via different agents. The institutional reformation in the research system was not seen in isolation. for a successful promotion and use of newly generated or selected. crop production. a system that is a major component of the agricultural and rural development strategy. selecting and adapting foreign technologies all require a considerable degree of research and professional expertise. Amhara and SNNP Regional States. In addition to the research and extension system. These two institutions are currently functioning to produce as well as use the human capital that is embodied in Development Agents. natural resource management. The technology duplicating system has several institutions in it. while maintaining the efforts to develop new indigenous technologies the major focus will be on selecting and adapting technologies available abroad. In the private sector in the seed system there are Pioneer Hybrid and other Small Seed Enterprises. The agricultural extension service system has also been in focus during the whole process of strengthening existing and establishing new research centers. 48 . In the public sector the major ones are the Ethiopian Seed Enterprise. The agricultural extension system of the country has federal and regional arrangements. At present the agricultural extension system deploy four DAs at each kebele.

2002). however. It started by privatizing the State Farms and opening them for private commercial farming. Human capital formation. The efforts made during this regime. Such schemes were strategic in densely populated highlands of the country. One such link the policy and strategy in the agriculture sector encouraged is the out-growers scheme. EPRDF during and after transition period. With the change of governments. 5. Of course. In addition to commercial farms. The private commercial banks have supported the domestic agro-industry growth. and there are beginnings in the horticulture industry. there are several associations including Ethiopian Live Animal Traders Association. higher learning and export-import organizations have also emerged and are being expanding throughout the country. and The provision of finance/budget. has revitalized the role the private sector. One very important institutional arrangement recognized and promoted by RDPS is the outgrowers‟ scheme. and contribute meaningfully to make agricultural development efforts more productive. and also for the institutions to embark in agricultural research. Coffee Traders Association. As well as described in the RDPS. This is expected to expand. Linkage between private investors and smallholders in the agricultural production. However. This is in addition to formerly established out-growers schemes in the area of malt barley production. since could address the land shortage often encountered by private investors wishing to engage in the production of high value crops. As a result such schemes are expanding in the coffee and tea investment areas. Starting from the beginning of SDPRP period. Pulses and Oil Crops Traders‟ Association. which is necessary for poverty reduction and that. financial. and this has helped many organizations engaged in export-import activities.10 Capacity Building The government‟s response to the challenges of agricultural transformation and rural development for poverty reduction among other things rests on capacity building which includes:    The establishment of and equipping institutes at different levels of government. requires enhanced private sector investment (SDPRP. will make to maximizing benefit for both partners. In the private sector.5. The floriculture business has also flourished in recent years as a result of the favorable policy environment GoE created for foreign investors. and the sugar cane production.9 Private Sector Institutions In the above discussions the role of the private sector has been reflected where necessary. the current GoE upholds the role of the private sector in cognizant of the sustained economic growth and employment generation. Horticulture Association. Ethiopian Meat Exporters Association. The private HLI have started providing training in specific agriculture disciplines. strategies and programs. 49 . In RDPS the government has stated the participation of the private sector to play an important role in implementing the development policies. were curtailed during the Derge era. Ethiopia provides organizations. it is important to address this sector‟s role in the agriculture sector development in line with the specifics stated in the policy and strategy documents. one may say that private investors have made significant contribution to the agricultural development of the country since the period of the Haileselassie regime. management and financial resources to establish connection with internationally known companies.

The specific objective of ATVET is to create and develop human resource and institutional capacity that would have a desirable impact over the medium-and long-term capacity building. Zone and Woreda structure has established and continuously gives support to equip the MoARD. traders.5. Debub. modules. etc). women. soil and water management and market and marketing oriented courses.1 Establishment and equipping Institutes The government in its Federal. Development Agents. faculty. 50 . women. During PASDEP it is planned to establish 3. The objective of the middle level component is to train and produce skilled labor force that would serve as teachers and development agents in the “Farmers Training Center” (FTC) located at kebele level and self-employed entrepreneurs. Prominent in this regard are ATVETs and FTCs. market and marketing and policy factors that influence farmers. FTCs are expected to provide agricultural extension and information services that can speed up entrepreneurship as well as demonstrations for the diffusion of modern technologies and improved practices in agriculture. Specifically the former agriculture based Universities. namely Haromaya. At the Federal level.000 FTCs in addition to the 15. The training interventions are expected to cater for the training courses. agricultural marketing and cooperative development. Regional. and in some Regional State Governments these institutions have constructed their own premises or they are in the process of building. Jimma. and youth dependency and lack of entrepreneurial motivations. The Farmers Training Centers (FTCs) are used for the provision of advisory services. for the Senior staff of MoARD.2 Human capital formation The agriculture sector human capital formation is footed on a chain of education and training institutes. BoARD. They provide training for farmers in the areas of entrepreneurship parallel to production. and tools of creative thinking and engineering to tackle problems of production. service providers. reading references. farmers. photocopiers and other electronic gadgets. skill training.10. IT services. the number of Universities with agricultural faculties/colleges has risen from four to eleven. and Mekele have build their capacities with modern laboratories and other teaching facilities to render degree programs up to PhD level. In the area of HLIs. It involves higher. seminars and workshop (with detailed contents. and those involved in the disaster prevention and emergency operations and develop a comprehensive strategic implementation plan to upgrade and enrich skills and knowledge. Training and workshops are among the key interventions used for social sensitization. traders. middle level and grass-root institutes. The whole purpose of training is to periodically analyze and assess the technology. soil and water management. development agents. market and marketing. demonstrations and entrepreneurship. SMS. cooperative leaders. awareness creation.000 that have been established during SDPRP period. and Zone and Woreda Offices.10. and opinion leaders. the government has built training centers to produce development agents and train the many smallholder farmers. In addition to these institutions that cater for highly skilled and educated personnel. 5. Most of them have computers. It is producing middle to junior level skilled and agricultural practitioners who are compatible with high-level skill and technology.

3 Finance and Budget In recent years the commitment of GoE to build the capacities of public institutions has been reflected on the increasing budgetary appropriations from the treasury as well as its willingness to borrow or solicit support from bilateral and multilateral donors and financial institutions. The components of ARTP are agricultural research management. USD 60 million from IDA and 18. and project management with a total cost of about 71 million USD.2 million from IFAD and USD 12. sustainable. improve the agricultural research system centers network and human resource development. and the current RCBP. improving information and communication systems in MoARD. The examples in this area are the ARTP.5. development of agricultural marketing institutions. 51 .10. agricultural advisory services.4 million from GoE. The total project cost was USD 90. The ARTP was designed to support the agriculture sector through the generation and enhancement of economically viable.6 million i.e. Chapter six of this study report gives details in this regard. agricultural research. which is higher than the CAADP target of 10%.. The RCBP components include technical and vocational education and training for agriculture. Already the government annual budgetary appropriation has reached to 15%. and ecological sound technologies for crop and livestock production and natural resources management. the government has increased its commitment to borrow or solicit financial support from bilateral and multilateral donors and financial institutions. In addition to the budget from treasury.

1.1 GDP and AGDP Trends The performance of Ethiopia‟s economy. programmes identification as well as the institutional arrangements that are in place for the implementation of the policies. First. MoFED. is declining. the development achievements of the agriculture sector due to the implementation of existing policies and strategies. Economic Performance. ETC. and rural electrification and telecommunication services. particularly starting from the launch of the first PRSP. like other economies. the trends of food production are presented using food grain and milk production and consumption statistics. EEPCo.6. This is followed by the discussion about the achievements made in developing the core agriculture and rural infrastructures including irrigation. and the agro-processing sub-sector performance are presented. 52 . 6. At this juncture it is prudent to make a trend analysis of the economic growth and changes i. In Ethiopia. poverty index. A separate volume of this study that presents the data in tabulated forms is prepared and readers are advised to look this for detailed information. can be measured with GDP as well as specific indicators of welfare such as poverty index. strategy. strategies and programmes.1 Economy-wide Performance Analysis 6. 61 The data sources for the different sub-sections of this chapter are CSA. AGDP. in terms of contribution to GDP. the GDP growth rate directly and heavily depends on the performance of the agriculture sector though in recent years the dominance of agriculture. NBE. road net works. namely SDPRP. The expenditure trend analysis results are reported in a separate sub-section followed by a report on the trend of export-import activities.e. The subsections below present the trend analysis61 findings in different sub-sections. the overall economic performance trend based on indicators such as GDP. Put differently the economy is showing a slight structural change from agriculture to the non-agriculture sector. Public Expenditure Review and Diagnosis The previous chapters gave the background to the CAADP Ethiopia study and the results of its policy. in this chapter. Finally.

health and socail works and related .4% from AGDP respectively. For the same period the share of the livestock. gas and water. The slight structural shift from agriculture to non-agriculture. 62 Agriculture includes crop. Within agriculture it is the crop subsector which is leading in terms of contribution to GDP. forestry and fishing.2). public administration and defence. education. For a country with the largest livestock population in Africa and tenth in the world the performance of the livestock sector is still very low.1). which from the very beginning is set as strategy to make the economy shift to other industrious areas other than agriculture. livestock and hunting. Industry includes mining and quering. electricity. transport and comunication. The crop sub-sector percent share of AGDP and hence GDP is on rise since 2003/04 (Figure 6. Its share has increased from 34% to 42% during the same period.The percent share of agriculture62 from GDP has declined from 57% to 46% in ten years time between 1996 and 2007 (Figure 6.3% and 3. A lot has to be done in this sector institutional and capacity building starting from production to supply and marketing of live animals. hotels and resturants. As of 2006/07 crop agriculture share from GDP is 30% while its share from AGDP is 65%. manufacturing. The share of the service sector is increasing. indicates the success of ADLI.5% and 8. Services includes trade.9% from GDP and 26. and hunting subsector and that of forestry is 12. It should be emphasized that ADLI was not designed as a strategy for the agriculture sector but as a strategy to lead the whole economy in the transformation process from traditional non-market oriented agriculture to market oriented agriculture and industrial economy. in general. 53 .

1.7 Urban Trends in Food Poverty Head Count Indices 0. 2006 Table 6.5 -23.495 0.1 and 6.3 -24. was actually attributable to the larger decline in rural poverty compared to that in urban poverty64.2: National Level Poverty/ Welfare Trend in the 1st Two Years PASDEP Period Indicator Base Line (Achievements by end 2005/06 of 2004/05) 39 36.6 2006/7 34. respectively.4 Rural 0. Table 6.475 0. The pastoral system of production. Ethiopia bypassed the CAADP targets both in terms of the annual growth of the agriculture sector and budgetary allocation.1: Trends in Poverty Indices at National Level and by Rural and Urban Areas Level Indices Changes in the Indices (%) 1999/00 2004/05 2004/05 1995/96 1999/00 2004/05 over over over 1995/96 1995/96 1999/00 Trends in Total Income Head Count Poverty Indices 0. which is 6% and 10%.5 PASDEP Target (2009/10) 29 28 Total poverty head count (%) Food poverty head count (%) Source: MoFED. 54 .1 5.3 -9.411 0.5 Rural 0. which is mainly livestock.4 National 0. contributes 9% to the national GDP.7 -14.1 -13.animal products and by-products both to the domestic and international markets. The unprecedented trend during this period was that the decrease in national poverty.2 below present a summary reproduced from the annual review report of PASDEP (September 2006) and shows the past trends and the situation at the beginning of the PASDEP period.2.2 National 0.442 0.0 -3.332 0.467 0.5 Urban Source : PASDEP.4 -17.351 11. In recent years the growth rate of the agriculture sector in terms of AGDP is about 13% (Figure 6.365 0. 63 6.6 38 35. in terms of income head count index.454 0.3) and the budget allocated for agriculture both at the Federal and Regional State Governments level is about 15%.8 -12. II Table AP1 and AP2. For details refer to Vol.369 0.516 0.380 -15.9 -4.387 -2.455 0. National poverty has declined significantly on every count of the indices shown.393 -4. PASDEP Annual Progress Report.353 28.5 -6.2 Poverty Trend Table 6.385 -20. In general.6 33.4 -25. while the rural food poverty head index has declined by less than 7% 63 64 Detail findings on these and other economic trend and expenditure analysis are reported in sub-section 6.419 0. 2006/07 The food poverty head count indices at the national level has declined from 42% in 1999/00 to 38% in 2004/05 or by 9%.

teff. Manufacture of vegetable and animal oils and fats. the decline in rural poverty is substantial. Table 6. One important aspect in the food poverty analysis is the price trend of major food sources. This implies the need for the government‟s rural development programs to improve their strategy and method of targeting the poorest of the poor. manufacture of bakery products. luggage and handbags are the top five agro-processing activities (Figure 6. Overall.1 also shows an increase in the poverty gap index for the rural areas – which is an indicator of the depth of poverty or how far rural households‟ average per adult income/consumption is from the poverty line – may at face value imply that the resources (largely government resources) allocated and used in poverty reduction rural programs during the period have not been sufficient to enable bring the rural poor to at least the national level average. This change has been depicted by rates of change in terms of emergence and expansion of agro-processing industries and their value addition.909 (1999/00) to 27. wheat and maize. manufacture of sugar and sugar confectionery and tinning and dressing of leather. will be eroded tremendously and the incidence of hunger may rise unless the government continues the support that it is giving to subsidize food crops.from 41% to 38..523. 2006/07.063. In the agro-processing industry establishment the number of Bakery Products Manufacture was about 34.6).e. According to the PASDEP Annual Progress Report. The decline in rural poverty can be attributed to the pro-poor programs that have been implemented in rural areas including.5%. beyond the relative aggregate measures presented above. among others. The poverty severity index for the rural areas – an indicator that measures the distance of the income/consumption of the poorest of the poor from the poverty line – seems to present an even worse picture in terms of its decline (or the absence of decline in this case) relative to the urban areas in particular where the growth rate has been much lower. specifically the poor.03% for Grain Mill Manufactures in 2000/01. Figure 6.1. which is sluggish.5 indicates the positive change in the number of establishment and the growth rate for food products and beverage manufacturing. manufacture of foot wear. if it continuous then the purchasing power of consumers. The available data indicates that agricultural commodity retail prices are increasing at an increasing rate compared to the change in per capita income. still greater than for the urban population and also the national average. Figure 6. the food security and the productive safety net programs. 6.414 (2004/05) or by close to 2%.3 Agro-processing Another important area which reflects the contribution of existing policies and strategies to a positive change in the economy at large and the agriculture sector specifically is the registered growth in the agro-processing sub-sector.10% and 18. manufacture of grain mill products.4 shows specifically the trend in the retail prices of the major staple food crops i. nationally the number of poor people is reported to have declined from 28. The percentage shares of the number of establishments for 55 . Although the trend follows what is also happening in the international market.

The key infrastructures identified in this regard are irrigation.2% during this period.5 and 6. Though the percent share of sugar and sugar confectionary in terms of number of establishments looks small (3.53%) but as of 2006/07 these establishments rank on top in terms of value share. 27.6 concurrently shows that the agro-processing sub-sector establishments is dominated by bakeries with small contribution to the annual value product compared to the few sugar based processing plants relatively with very high value addition.7). respectively.5% between 2000/01 and 2006/0765 while shares of Manufacture of Grain Mill from agroprocessing industry declined from 10% to 7. The shares of Manufacture of Sugar and Sugar Confectionery increased from 25. Looking at Figure 6. electricity and telecommunication.1. 65 For various years see the different pie-graphs in the Review document 56 . roads.4% to 27. manufacture of foot wear.the same increased to 39. 6.4 Infrastructure Pillar II of CAADP requires the assessment of rural infrastructure that is indispensable for the development of the agriculture sector.98% in 2006/07. Similarly the share in the number of establishment of sugar and sugar confectionery manufacture increase from 2.5%. Indicating a lot has to be done in terms of promoting and supporting high value added agro-processing establishments.62% to 3. luggage and hand bags share which is about 17% (Figure 6.53% in between 2000/01 and 2006/07.74% and 18. followed by the Tinning and Dressing of Leather.

3km 75% 17km 68% 13km 1. there were only 60 rural kebeles that had subscribed lines. As can be seen from figure 6. Table 6.4km 104 0.3km 38. 66 SSI=Small Scale Irrigation. The irrigated area varies from small to large size schemes with a variation among regions.49km 1.3km 91.km (including community roads) increased from 24km to 104km. The road density/1000 sq. LSI=Large Scale Irrigation 57 .55km 0. Out of this 2. Within a decade the proportion of asphalt roads has doubled. Afar and Oromiya are the only two regions with LSI with a share of 54% and 46% respectively.4km The provision of telephone services has shown a tremendous growth since 1995 (Figure 6.4km 30.49km 79% 21. km (including community roads) Road Density/ 1000 Population (including community roads) Proportion of area more than 5km from all weather road Average distance to all weather road Source: Ethiopian Road Authority. Currently less than 5% of the total irrigable area is under irrigated agriculture. especially irrigation has not had adequate focus despite a huge potential within the country.3km 0.9 million hectare is the potential irrigable land with medium and large scale irrigation schemes.8.6km 40. As of 1998/99 there were only 6740 mobile users in the country.3).Ethiopia‟s agriculture particularly the crops-subsector is heavily dependent on rain.7 million hectare. registering an annual growth rate of 87. The performance of the agriculture sector.e. Another remarkable change in the telecommunication services is the coverage of rural kebeles having subscribed lines. Automatic subscription has increased rapidly. Agriculture water development. 2007/08 2002 35% 30% 28% 30% 2007 64% 49% 46% 49% 2008 68% 53% 49% 53% 17% 25% 21% 22% 24.8%. 2004/05.5%).56km 30.5%) while Afar is leading with a high concentration of MSI (58.1km 0. km Road Density/ 1000 Population Road Density/ 1000 sq. rain and associated climatic changes. therefore.46km 24km 0.45km 67% 12. recently Amhara regional state leads by having the high proportion of SSI66 (28. from 17% to 68% (Table 6.9). By the beginning of the PASDEP period i.95 million users by 2007/08. varies with the vagarious of nature. According to the recent data obtained from MoWR the total potential irrigable land of the country is estimated to be 3. Mobile services distribution started in late 1990s. These increased to 1. MSI=Medium Scale Irrigation.3: Selected Indicators for roads conditions and situations Indicators 1997 Proportion of Asphalt roads in Good Condition Proportion of Gravel roads in Good Condition Proportion of Rural roads in Good Condition Proportion of Total Road network in Good Condition Road Density/ 1000 sq. By 2007/08 this number increased to 8676 rural kebeles which means an annual growth rate of 425% (Figure 10). The road sector has registered a remarkable success in the recent years.49km 0.

333 KW by 2006.057 KW. food and beverage processing factories throughout the country is putting pressure on the power and energy sector of the economy.UREAP 67 Cities/Kebeles/Villages 58 .4. As of 1996 the country‟s generating capacity was 416. Most of those who benefited are rural residents and businesses. Table 6. Showing the overall rapid economic growth.Number of beneficiaries67 that got electricity under the Universal Rural Electricity Access Program is presented in Table 6. This increased to 819. However. particularly the increasing light industries such as the cement producing. there is still an excess demand of electricity.4: Number of beneficiaries that got electricity under Universal Rural Electricity Access Program Number Number Number Region (2005/06) (2006/07) (2007/08) Afar 3 16 9 Amhara 47 230 319 Benshangul-Gumuz 3 20 28 Dire Dawa 1 2 5 Gambella 1 12 7 Harari 1 1 3 Oromia 68 284 499 SNNP 34 186 36 Somali 6 20 37 Tigray 13 61 38 Total 177 832 1221 Source:. The nation‟s capacity to generate and produce electricity has doubled in ten years period (1996-2006).

8 below gives the natural resources conservation and development targets and achievements for this period. the achievements on some of the activities are encouraging while on some others not. identification of degraded land for intervention. soil fertility management.Source: CSA 6. For example. Overall. moisture conservation. Table 6. preparation of woreda level land use planning. It was planned to undertake eight woreda level land use plan but in the three PASDEP years none was done. and forest demarcation and small irrigation development. the achievement in tree seed distribution is close to 1000% followed by works on water conservation. issuance of land holding certificates. The least achieved planned activity is the land use planning. 59 . The major components targeted in the PASDEP natural resources conservation and development plan are establishment of natural resources information database.15 Performance in Natural Resources Management and Utilization The trend of executing different NRM and utilization activities for the PASDEP period (20062008) was obtained from MoARD NR directorate.

4 Woreda level land use planning No 8 0.8 Natural resources conservation and development targets and achievements (2006-2008) Nr. As Figure 6. 6.0 150.7 4.(„000) 2991.6 („000) 6 Identification of SWC Ha.(„000) 281.6 228. The two tier government systems have their own independent budget appropriation mechanisms although there are linkages through various programmes on the basis of subsidy arrangements. 1535.0 5 Delineation of degraded land Ha.0 60.5 % 68 69 The NCs extends their appreciations and thanks to those Departments in MoFED which cooperated in availing the necessary data in this regard.1 Natural Resources Information database 2 Land holding certification 1st Million 3. IBCR and allocation for water resources development outside MoARD. Activities Unit Target of the three Achievement % years (2006-2008 ) 1 Establishment of woreda level No.9 level No.8 35.9 77. 385 12 3. Similar understanding has to hold for the Regional expenditure figure. EIAR. Generally the total Federal budget allocated to Agriculture and Natural Resources69 has increased from 9.0 770.0 500.0 450.0 _ 0.0 996.0 424.(„000) 996.4 intervention areas 7 Moisture conservation Ha.1 60.5 0.9 63.1 111.4% in 1993/94 to 15. NR Department.9 22.0 13 Small scale irrigation Ha.2 Expenditure Trend Analysis The government of Ethiopia is constitutionally divided into two: the Federal and the Regional State Governments.9 development 14 Water conservation Ha.(„000) 1210.6 111.1 level No.8 10 Multi-purpose tree plantation Ha 2268.2 12 Seed center establishment No.0 _ 0.8 11 Tree seed distribution Qt.12 indicates the Federal Government budget to the agriculture and natural resources sector has exceeded the CAADP target of 10% since 2005/06.0 517.0 9 Forest demarcation Ha 740.1 8 Soil fertility management Ha.Table 6. 5. 3 Land holding certification 2nd Million 0.0 14831. 332. The expenditure on Agriculture Development includes only the MoARD allocation.0 171. Cognizant of these arrangements the CAADP Ethiopia Study adopted a notion of national expenditure on agriculture and related activities by aggregating the available expenditure on the same at Federal and Regional levels68.4 „000) Source: MoARD. 60 .( 27. Agriculture and Natural resources includes the budget for MoARD.

From the long-term national economic development perspective. 70 Although according to some discussants this has increased the government expenditure tremendously and perhaps might have contributed to the inflationary situation in the context of text book macro economics explanation. at regional state governments level though the share of the agriculture and natural resources sector is still around 15%.4 % to 2.13). RDPS. Roads. 2004/05 (Figure 6. The trend was reversed when the GoE issued the new comprehensive policy and strategy document. it is the road sector which starts to receive the biggest share. 61 .9%. The trend in the regional state governments‟ budgetary appropriation is similar to that of the federal government.16). specifically in regions. and starts to implement programmes that are based on these policies and strategies as of 2001/02. Overall roads construction is getting a prime importance not only at Regional State Governments level. Till recent years the regional state governments‟ budget share of agriculture and natural resources has been more than 15% (Figure 6.in 2007/08. It was higher than the federal share by about an average of 5% per annum till the end of the SDPRP period. are critical infrastructure to stimulate the growth and expansion of sound market driven commercial oriented agriculture (Figure 6. On average.15).14). the expenditure on roads and electricity generation is a commendable move by the GoE70. in between 1993/94 and 1997/98 the share declined from 9. but also at federal level (Figure 6. This again is a healthy trend. In recent years.

3 Trends in Export-Import 6.1 Trends in Export The value of total exports of Ethiopia increased from 602 Million US$ to 1466 US$ from 1997/98 to 2007/08 with an average growth rate of about 2% (figure 6. 62 . This change is a result of quantitative.17 and 6. The quantity of traditional export items has increased and also new export product mix is created including the export of flowers (Figure 6.3.18). qualitative and price changes.6.19).

In terms of value although coffee is the highest generator it is with a decline percent share from the total value. Pulses export is showing an upward trend. Oilseeds export also showed a positive growth trend but the volume exported drops sharply in 2007/08. This signals that export product diversification strategy is showing a positive result (Figure 6. Coffee. Pulse and Oil seeds are the three main export agricultural commodities in volume terms. Pulse export increased sharply from 2002/03 to 2007/08. Live animals export have started to grow while the newly established floriculture industry is expanding with an increasing share of the export value.20).Total volume and value of agricultural commodities exports have shown positive trends. mainly due to international market situations. 63 .

Although the total value of exports is on rise since early 2000/01 (Figure 6.17) the contribution of exports to GDP has not changed much (Figure 6.21). On the other hand the percent share of imports is on rise with an increasing deficit in trade. Implying the country is importing a lot with declining foerign exchange generating ability. 6.3.2 Trends in Imports On the average for the last ten years more than 75% of Ethiopia‟s import by end use is for Raw materials, Fuel, Capital tools and Consumer goods (figure 6.22).

Raw material The major imported raw materials are semi-finished goods, chemicals, fertilizers, textile inputs. Semi-finished goods have been the leading imported items for the last 18 years. Fertilizer importation follows this in recent years.

64

Capital tools In the importation of Capital tools71 Industrial goods have had the highest share followed by the transport sector (Figure 6.20). The share of agricultural tools import is negligible and remains constant. This indicates little is done in terms of making agriculture capital intensive. Put differently, the progress made in the agricultural sector is heavily dependent on non-capital goods and services reflecting the policy emphasis i.e., dependence on labor and land with the promotion and distribution of biological and chemical technologies such as improved seeds, fertilizer, and pesticides. However, there is a need to make a slight shift in this aspect given the emphasis that the government is according to commercialization. The policy on commercial farms promotion, particularly the promotion of private large scale commercial farms in lowland and thinly populated areas is explicitly set during the PASDEP document preparation. In order to implement this, therefore, emphasis should be given to increase the importation of machinery and equipment in the agriculture sector. By intervening this way agriculture indeed will remain the source of surplus value that will support the non-agriculture sector development. It is important to revisit Figure 6.21 implications. This figure shows that predominantly the foreign exchange obtained from agriculture exports is being used for non-agricultural imports particularly for heavy duty machinery, tracks and equipment. Of course the export revenue is not sufficient to cover imports; hence the trade deficit is wide. This may not be worrying since in the long run the investment in the non-agriculture sector is expected to yield positive return and enhance export revenues from the non-agriculture sectors. However, agriculture should also get its own share to grow with modern practices both in terms of machinery and equipment and as stated above this can be started by encouraging commercial large scale farms to be capital intensive. The small holder agriculture can still be exploited by using the relatively available abundant labour and land resources using improved biological and chemical technologies, such as seed, fertilizer, semen, and vaccine.

71

Includes machinery and equipment

65

Consumer Goods In terms of consumable goods imports, the share of cereals and food items, on the average, is about 8% and 1.4% respectively between 2003/04 and 2007/08 (Figure 6.25). On one side this indicates that in terms of agricultural products the country is heavily consuming what it is producing. On the other side recently there is an increasing trend of food items importation especially between 2003/04 and 2007/08. The per capita value of imported cereals and other food is not changing much (Figure 6.26). This trend indicates that Ethiopia‟s Economy has become increasingly integrated with the rest of the world and hence what is happening in the rest of the world does affect Ethiopia in turn. In the world, starting from 2006 there is a hike in food prices coupled with climatic changes that has affected the productivity and production of agricultural commodities.

66

According to the CSA data. The equivalent of this in terms of production is 2.1 Crop Production and Consumption The trend in crop. The Ethiopian farmers traditionally use crop rotation. Recent data obtained 72 For detail see the review document of this study 67 . 56. of vegetables. cereals. fallowing. However.13 Quintal72. respectively. root and tubers.4 Trends in Food Production and Consumption 6. the use of industrially manufactured chemical fertilizer has gained popularity and the importation and distribution of the two inorganic fertilizers namely.95 million hectares in 2007/08.4 and 44. The total cropped area has increased from 9.6.16 Quintal per person per annum grain requirement. a total of 5. 51.44 Million hectare in 2000/01 to 10.28).6 million hectares.8.27 shows in Ethiopia the per capita grain production as of 2007/08 reached 2. Figure 6. specifically grain. production indicates that Ethiopia is fulfilling the 2100 Kcalorie per capita per day requirement. 45% of land under crops. and permanent crops were fertilized. was fertilized in 2007/08 (Table 6.4. DAP and Urea is on rise (Figure 6. This achievement is partly because of the increased emphasis accorded to the promotion of biological and chemical agricultural inputs in RDPS and PASDEP.6). farmyard manure and some form of compost to improve soil fertility.6.8%. Of the total area for each crop species 64.

118 64.42 77. Table 6.273 0.662 6.73 4.309 0. 2007/08 As reported in the earlier chapters in order to increase the production of food crops GoE has identified improving the efficiency of the seed system as one of the most effective means of meeting the Millennium Development Goals at large and the nation‟s food security objectives specifically. Though this is a low level of distribution the trend as depicted by Figure 6.76 Root crops 184. 68 .00 Total Source: Central Statistics Authority.730.396 20.577 12.6 Area Planted with Improved Seeds and Fertilizers in Ethiopia Crop Total area Area covered with (ha) Improved seeds Fertilizers Area (ha) % Area (ha) % Cereal 8.251 1.313 465. of the total area under crops (Table 6.091 501 0.42 304.61 Others (temporary) 97.722 45.600 tons.24 Vegetables 119.395. Obviously.654 44.486.22 104. This amount converts to only 27.from the Agricultural Marketing and Inputs Directorate indicate that the consumption of chemical fertilizers in 2008 crop season was 487.059 2.10 32.6). Important to note is the lowest distribution reported for the year 2002/03 which is due to the severe drought conditions.629 4.677 102 0.4%.40 Pulses 1. 62% of which was DAP and the remaining 38% is urea.29 is showing an upward move.59 1.065 hectares.32 86.9 kg/ha Urea.4 5.065 3.814 33. 2007/08) the area under field crops and horticultural crops covered by seeds of improved varieties in 2006/07 was 424. which converts to 41kg/ha of nitrogen and 46kg/ha phosphate (87 kg/ha active ingredient).80 Permanent crops 12.001 412. this compares very poorly even with the average national recommendation of 100kg/ha DAP and 50 kg/ha urea.557.517. 3.349 56.039. According to crop survey report (CSA.132 424.06 Oil crops 707.329 2.814 51.6 kg/ha DAP and 16.

24 12.7: Yield73 (Quintal/hectare) by Major Crops Category Year 2000/01 Crop category 2001/02 2002/03 2003/04 2004/05 2005/06 Grain 11. i.75 8.17 13.65 9.12 15.88 4.71 11.71 15.45 6. yield per hectare.67 10. and from 14 million to 22 million.16 Cereals 12.70 14.10 Source: Calculated from CSA 2000-2008 Data 2006/07 2007/08 14.03 12. the sheep and goats population increased from 16 million to 26 million. while the camel population increased from 471. Table 6.38 Pulses 8.71 Qt/hectare between 2000/01 and 2007/08. It increased from 38 million to 47 million heads of cattle.73 6.13 14.14 13.04 7.38 6.25 4.95 12. Table 6.e.48 6. In the same period.00 9.30) 73 For details in cropped area and production please refer the Review volume of this study.87 13.70 10.72 11.24 Qt/hectare to 14.2 Livestock and Livestock products The cattle population in Ethiopia has been increasing during 2003-2008.84 Oilseeds 4. This implies that the countries effort to fulfill its food security objective can be hastened through the use of modern biological and chemical agricultural inputs. 69 .7 shows that the average grain yield has increased from 11.14 5.4.20 11. This is an increase of 31% in a period of less than a decade.145 thousand to one million (Figure 6.Overall the effect of using fertilizer and improved seeds has to be captured by changes in productivity.64 11.43 10.

the growth rate of the camel population in the recent years indicate that. and Guji Zones of the Oromia regional states combined were examined separately. South Omo. Camel showed a dramatic increase since 2005/06. 70 . to have an overview of the livestock population status in the PAP areas. Furthermore. the contribution of camel for food security in the PAP area is becoming more pronounced. The cattle population declined between the year of 2005 and 2006. the pastoralist are making a structural change in their livestock herd composition in favor of camel. This is partly due to the drought frequency.31) the highest being that of camel. which makes the loss of assets in terms of cattle and small ruminants not easily recoverable. Somali. except in the year 2006. The goat population showed a positive trend.In terms of growth. The trend of the livestock population of Afar. Therefore. most species recorded positive annual growth rates (Figure 6. Borona. while sheep showed a drastic decline in the year 2006 and fluctuated less thereafter. and stabilized thereafter. This indeed reflects the recent surge in live camel as well as camel meat sale both in local and international markets.

The 71 .The recent CSA data indicates that average milk yield per cow is increasing by less than 10%. while percent change in the camel‟s average daily milk productivity is erratic (Table 6.7).

37).274 25. the introduction of modern beehives and other bee-keeping technologies are gaining ground.357 9. The increase in the camel milk production in recent years exactly coincides with increase in the camel population during the same period.457 5.2 1.44 Year 2005/06 1.49 2006/07 1. camel is becoming an important animal as a source of milk. and foreign earnings. which is 27.7 1.2kg. If the household is deficient in food supply.5kg.9 3. The trend in total egg production was unstable (Figure 6.48 2007/08 1. per annum. It is important to note that the neighboring country. The feed requirement of the poultry is closely related to food requirement of the household.667 3. the poultry also suffers. has registered a high level of per capita milk consumption even higher than the Africa average (Figure 6.2 4.532 -1542 1. Hence investing on improved management of indigenous breeds can lift up Ethiopia‟s average close to that of 72 .403 -7. perhaps influenced by the fluctuation of the food supply of the households.9 3. The per capita consumption of milk of Ethiopia is the lowest in Africa which is about 23Kg.521 7.frequency of honey harvest per year is showing a steady increase during the PASDEP period.324 4.49 Although the average daily milk yield of cow and camel is showing a slight positive increase.0 2004/05 1. Table 6. meat.38. the change is still small when one compares the milk production and consumption in Ethiopia with the rest of Africa. This may indicate that. 2008) reported that in recent years the average per capita milk consumption in Africa. a study (Tesfaye et. Hence. transport.al. The Sub-Saharan average is below this.7 Milk Productivity Species Average daily milk yield (liter/cow) % change Average daily milk yield (liter/camel) % change Average honey harvest/year Source: CSA. Kenya. on the average. is 37.38). 2007/08 2003/04 1. This indicates Ethiopia has to invest more to tap its potential in milk production and consumption. Studies indicate even with indigenous breed the daily milk production per animal can go up to 4 liters. entertainment. Ethiopia has been consuming on average below the Sub-Saharan level although the trend in the last four years is that it is closing the gap. As shown on Figure 6.6 1. The current average production per animal per day is slightly higher than 1 liter.233 -6.6 3.182 1.

Currently. It appears that. and animal health service improvement should get attention.41. limited genetic improvement of the indigenous breed through AI is undergoing in several Regions.Africa in the short run. Holstein-Friesian provides the largest bulk of semen output followed by Jersey74. while the trend of vaccine used domestically distribution is declining. The annual semen production by breed is as depicted in Figure 6. The improved breed is estimated to make only one percent. Total number of livestock vaccinated is depicted in Figure 6. In the medium to long term the investment on genetic. 73 . feed resources.40). The breed improvement program is undergoing using both exotic (Jersey and Holstein) and indigenous breed. The trend on total livestock vaccine production and vaccine export is on the increase during PASDEP period (Figure 6.39. The genetic makeup of the dairy population is over 99% indigenous. the 74 For Regional Distribution refer the Review Volume of this report.

Among the species receiving vaccination.total vaccination coverage is less than 15% on the average. 74 . followed by sheep and goats. cattle get the largest percentage share.42). while poultry and camel receive the lowest share despite their strategic importance for food security purposes (Figure 6.

. exports are increasing with a slight indication of diversification..e. a livestock Breeding Policy and 75 . In general. strategies and programmes that will help us implement the goals we have set.  The relative inexplicitness of Livestock policy 7. the livestock sub-sector is not policy deficient nor is the existing policies are hindrance to its development. and the East and Central Africa countries seed system harmonization. programmes. physical. In this regard it is important to recall what the GoE stated in RDPS. and institutions. the policies presented in chapter four are found to be adequate. Though the NCs identified the existing policies of the agriculture sector. significant improvement on core rural infrastructures such as roads. Recently. programme and institutions in line with the Policy Gap CAADP framework. The few areas that need to be revisited are the policy coverage given to the livestock sector. What is important is the government‟s readiness to review its policies and respond to such changes. particularly this was not easy in the case of the livestock and pastoralism component of the study due to relative inexplicitness of the issues in existing official documents (RDPS and PASDEP). Programme and Institution The performance of the agriculture sector as a result of existing policies. Gap Analysis: Policy. strategy. and rural electrification. strategies. Overall. these positive achievements are not attained without gaps which should be catered for further progress and efficient and effective use of available human. But it is perhaps even more important to be able to revise these as the need arises and to adjust our goals according to developments over time. and financial resources.” In view of CAADP framework. there is a positive trend towards achieving MDG goals. the Government has now formulated specific policies and strategies to guide rural and agricultural development. poverty is on the decline. On aggregate. the food production per capita is on rise. though it may not be achieved as set in 2000 for 2015.It is important to device policies. ready to address development issues Ethiopian seed system with the rest of and problems emanating from the changing Eastern and Central Africa Countries domestic and international economic and social affairs. which has contributed to a continues growth in the economy with about 10% average annual GDP growth rate. as discussed in the previous chapter. i. is encouraging. the Pastoral and Agro-pastoral areas. . Strategy. However. and the indigenized Ethiopian pillars.1 Policy  Inadequate coverage of the Pastoral-agro There is no country that can claim to have a pastoral development issues full-fledged agriculture and rural development  Lack of policy to harmonize the policy. with a continuous government commitment to spend about 15% of its annual budget in agriculture. The government also stands ready to translate these strategies into concrete action. “Building on policies already on the ground and taking into consideration practical experiences and lessons learnt over the past ten years as well as considering the development experiences of countries which have attained rapid economic development. The problem lies on lack of focus. This chapter presents the gaps identified in the area of policy. telecommunication.7.

Strategy has been formulated75 and it‟s on the final stage to be submitted to the Council of Ministries. This Livestock Breeding Policy is not, however, comprehensive enough to include related issues such as animal health, and animal feed. In turn this should not imply that there is no need for detailed separate policies on animal health and animal feed. The policy documents in these areas should also include institutional mandates and responsibilities. It is important to note here that there are proclamations on animal diseases and control (Proclamation No.267/2002), meat inspection (Proclamation No. 81/1976), and public health (Proclamation No. 200/2000). These proclamations do give emphasis to animal health disease control and public health. But draft regulations on diseases prevention and control, animal movement and registration and licensing animal health professionals are on the process to be proclaimed. Besides, the livestock resources are untapped as they should because of less emphasis given to the policy of putting up the necessary development and regulatory programmes with visionary long lasting investment thinking in the dairy and meat industry with value chain concept. This industry is a highly potential industry to make Ethiopia gain more foreign revenue from niche markets in the Middle East, Asia as well as West Africa. Existing policy documents have clear policy positions in PAP areas on issues of voluntary settlement, provision of socio-economic infrastructure, as well as the environment to work with traditional and customary institutions. What is not clearly covered is the transformation process to cope-up with alternative livelihood options in PAP areas. Individuals are changing from pastoral to non-pastoral occupations be it in agriculture, commerce, and urban businesses. Particularly the recent conducive local administration setting as a result of the decentralization policy which increased the expansion of road networks, water, rural electricity and telecommunication infrastructure, and the enhancement of urbanization created a new interest in pastoral communities to become part of the new domestic and international economic order. There is lack of adequate policy in this regard including the policy of PAP areas land administration76. The existing land administration policy is mainly designed to cater the problems of land administration and use in non-pastoral predominately highland and sedentary areas. Improved seed has become a strategic commodity to influence the productivity and production of the crop sub-sector not only in a given country but also continental and worldwide. The seed policy and strategy was first issued in 1993 followed by a Proclamation No.206/2000 in 2000. The policy and strategy, as well as the proclamation did not have articles that direct regional and international harmonization issues. There was an attempt to harmonize the Ethiopian seed system with the East and Central Africa countries via the issuance of a regulation but which has not been finalized. This has to be revisited and the necessary policy and regulatory framework need to be in place in the soonest possible time since some of the East and Central African countries have already started to trade seed on the basis of the harmonization document they signed.

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The formulation process is coordinated by MoARD For example, refer to the recent Pastoral and Agro-Pastoral land Administration and Use Study, ELTAP/MoARD, 2008.

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7.2 Strategy
RDPS and PASDEP Strategy Gaps give emphasis to the strategy of coordination Absence of strategy on: and integration of  Forest resources utilization managing different  Synchronized control breeding on small ruminants through AI development tasks. It  Bee forage  Animal feed development and reserve both in natural and commercial actually states that aspects catering for the pastoral and non pastoral needs. ensuring integrated  Integrated water and pasture resources development strategy development is a guiding principle for the agricultural policies and strategies. The NCs found out in most cases integrated efforts are not well in place. This means there is a weak use of the governing economy wide strategy. Most problems are emerging by not invoking and using integrated development approach. For example, in pastoral areas integration is weak between water and pasture resources development. Integration between natural resources conservation, livestock resources development as well as crop cultivation practices. The various policies under the four Ethiopian CAADP Pillars have strategies which are explained in RDPS, PASDEP, and other related strategy documents 77. These strategies are listed in the annex. But there are some areas where the strategies are not stated or clearly explained. The Policy, strategy and the proclamation on forest development, conservation and utilization document compiled by MoARD (2007) does include statements with the term utilization. Most of it is related on how to collect, organize and analyze information or to undertake studies. It is not clear on the strategy of how to utilize forest and forest products with an apt forest conservation practices. Synchronized breeding is an artificial manipulation of the reproductive cycle of animals for the purpose of fixed time breeding through AI and as a result to achieve compact calving, lambing or kidding. The system allows aligning the breeding programme with feed availability and marketing. This programme can be accessible to individual farm household use through public services or undertaken by private investors through value chain development approach. Currently, this is reported to be practiced by some private firms. Its use in the public sector is still under discussion. The core issue here is whether it is to be practiced by the public or private sector or both, the country need to have a clear strategic direction. The current GoE policy on apiculture is to develop and expand honey production with special emphasis in irrigated areas, integrated with fruits and agro-forestry. Traditionally, honey production is common in almost all agro-ecologies that are endowed with water resources and vegetation that serve as a nectar source for bees. Recently, the need for bee forage practice is getting importance especially with the promotion of modern beehives in different agro-ecologies. All these are in place without a strategy on bee forage.
77

There are several agricultural input or output strategy documents prepared on a commodity basis by MoARD and affiliated agencies.

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Under PASDEP, livelihood and Asset Building, and Basic Social service strategies for the PAP areas are well addressed. However, the existing animal feed strategy gives attention to the development aspect and very little on reserve. Traditional feed reserve practices exist mostly in non-pastoral areas. This is highly associated with the annual crop cultivation practice which again is not the case in pastoral areas. Recently, the increased incidence of drought, particularly in PAP areas has exacerbated the problem of animal feed and is necessitating for a strategic intervention in feed reserve both in natural and commercial aspects. The strategy should be based on the emerging principle of disaster risk management rather than addressing emergency situation.

7.3 Programme
As defined in chapter two a programme is a framework, that contains similar activities designed to bring developmental changes (result based); and enhance growth with a continuous resource allocation from internal and external sources via annual recurrent budget or capital budget i.e., set in a project format. It is also a broader cost center of a public body or a broad objective of expenditure. Cognizant of this definition, in order to assess the gap in programmes it was essential to set up criteria for what a missed programme or a programme to be modified should constitute to be included as a new programme in the context of CAADP Ethiopia. Four criteria were used to classify similar activities that exist but need to be configured in new or modified programmes. These are:  Relevance: Relevance to the implementation of the national agricultural development policies and strategies  Acceptance: Whether accepted to or seemingly acceptable as a “cost center” by the GoE Budget System  Sustainability: The likelihood of the programme to sustain in the changing national and international economic affairs specifically in tackling agricultural development problems and challenges.  Institutional: Easiness to relate to or contained in existing implementing institutions.

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there has been a gap in terms of focus in the PAP areas. conservation .1 Modified/New78 Programmes by Pillar Pillars Modified  Land administration and planning  Pillar I  Forest development. Land use planning deals with resource inventory for proper planning and classification of lands according to its best use and propose appropriate land management. 79 Including the existing agri-net and woreda net information and communication technology (ICT) 79 . Hence. 78 The new CAADP Ethiopia proposed programs are expected to become cost centers. Especially land use planning is vital in the traditional cultivated agricultural areas to implement the specialization and diversification policies and strategies of the GoE following the principle of sustainable land management as well as to contribute to the natural resources management and productivity of lands in the pastoral and agro-pastoral areas. This component of the modified program has been an on-going program by itself though it has not been implemented effectively due to inadequate capacity at all levels. Besides.Table 7. and utilization New Integrated watershed management Pillar II • • Rural ICT network79 Agricultural Inputs and products Quality Control and standards • • • Pillar IV Research: • Socio-economic and extension • Forest resources improvement and protection Rural-Urban-Linkage (RUL) Cooperative Marketing Agriculture and Food Policy Research (AFPRe) • WTO accession and implementation • Foreign investment promotion/facilitation Research: • Dairy and Meat • Camel research and development • Range and water resources development Pillar I The programmes in this pillar under the column new/modified are modified programmes. the proposed modified program of land use planning and administration is found to be vital to bring all aspects of land use plan and administration in a synchronized manner covering both pastoral and non-pastoral areas in the different agro-ecological zones. The current land administration deals mainly with tenure security and legislations on land and land resources. land administration and land use planning. The land use planning plays a vital role in land improvement and productivity through proper management and intensification of lands in all agro-ecological zones whether the use is for agriculture or not. which actually seems to be totally absent. Land Administration and Planning: In this program two major components are expected to be undertaken namely.

opening up the flows of labor.” IWM technically includes water harvesting. The issue of development and wise management of forest which is conservation as well as the utilization aspect seems to be submerged.Integrated watershed management: Water harvesting and small. hence a new programme. but also from the angle of putting the necessary infrastructure and facility. it is technically appealing to put the programe as Forest Development. However. RUL should be seen not only from information system aspects. Conservation.scale irrigation‟ is an existing programme within MoARD. Cooperative Marketing. are indeed multi-dimensional and pave the ground for integrated rural-urban vibrant modern socio-economic system formation. The current national level developmental interventions in these areas are contained in a broader effort namely “integrated watershed management (IWM). Conservation. a new programme is proposed to cater for implementation of various RUL related interventions.. Hence. and access to income-earning opportunities between towns and surrounding rural areas. prices and trade is explicitly stated in existing policy and strategy documents. These include i. marketing. These programmes are identified in the process of redefining or reconfiguring the existing programmes on the basis of recent strategic changes made by the government or on programme gap assessment after examining existing policies and strategies. integrating markets. seeking a new place as a cost center. and the broader issue of transformation: transforming the current traditional agriculture to market oriented urban driven growth. Hence this new programme is proposed to be part of the CAADP Ethiopia initiatives and considered as a separate cost center for future action. The need for various studies in the area of agricultural markets. Cooperative Marketing: The cooperative marketing component of the cooperative establishment and strengthening Agencies 80 is transferred to the agricultural marketing and input departments. RUL: As reported in the policies and strategies sub-section of this section. Therefore. AFPRe: Market studies has been identified as part of the policy to Improve and Strengthen Domestic Market as well as the policy to Expand the Export of Agricultural Products and their Markets but without a coordinating programme at a national level. Pillar II The three new programmes added are RUL. and Utilization. market access.e. RUL specific strategies are also explicitly listed in PASDEP. Forest Development. and Utilization: The existing cost center programme at the Federal level is the forest protection and management. RUL has been recognized as core strategic area in transforming the agricultural economy of the country in RDPS. traditional and small scale irrigation activities as well as farmers practices to conserve moisture through agro-forestry practices. and AFPRe. there was no single programme that was established to implement various activities related to RUL within the sector. Several studies are being undertaken in these and 80 Which is the only programme that the Cooperative Agency is registered in the budget system of the Federal government 80 .

The production. M&E. Agricultural Inputs and Products Quality Control and Standards. That is. namely (a) agricultural inputs quality control. Pillar IV Forest Resources Improvement and Protection: There is an existing forest resources improvement research programme. Therefore. There is an on-going review process at EIAR expected to bring these two as sub-programmes under the Ruminant Research programme( BPR to Be Document. identifying potential research institutes both in the public and private sector. search for firewood etc. for the purpose of enhancing. food. marketing and price policy or development studies. i.. soliciting finance for the study/research. control and regulation of these important inputs are done by different institutions in uncoordinated manner. semen. This way the research facilities and human resources can be shared or used interchangeably or can be integrated into one research unit.e. veterinary drugs. they should be handled by one programme. and preparing policy briefs to policy makers as appropriate. integrating these two commodities into one research program will be cost effective and their result for development undertakings will be lucrative. 81 . pasture and forage seeds). antisera. and Meat and poultry. outsourcing the research or study for national and international firms. say IFPRI. However. The male calves that are generated from the dairy research sub-programme will be transferred to the meat research sub-programme. industrial by products. with the growing importance of dairy and meat both for the domestic and international market. can also be used for meat. and feed resources (compound feed. as well as the need to integrate dairy with meat production excluding poultry. Agricultural inputs on the crop side include improved seed. and breeds). In such a situation there is a need for a programme within the national system which should be responsible to coordinate various agriculture. scarcity of cultivable land. and farm machinery. (b) agricultural products quality improvement. importation. reagents and chemicals. The capacity of undertaking such studies within the country by institutions such as EDRI and EIAR are wanting and even in the case of EIAR it seems vanishing. distribution. feed additives.other areas of the sector but mostly done by consultants coming from abroad. but also socioeconomic by nature such as poverty. the cattle used in one component.2008). However. promoting. the research should not only contain on improvement but also on causes of deforestation and on mitigation measures to protect forest from human and animal‟s interference and destruction. The programme must be able to establish a system of researchable problem identification. It is imperative that. Agricultural Inputs and Products Quality Control and Standards: This modification is based on the merging of the existing three programmes. This programme should maximize the duality concept. and (c) standards and inspection. Dairy and Meat Research Program: The current cost center research programmes are Milk and Draught Power. there is a need to put in place a separate Dairy and Meat Research Program. and controlling the use of these inputs. pesticides. laboratory and field equipment/instruments. hormones. Livestock inputs include biological (vaccine. say in dairy. fertilizers. The research should be multi-disciplinary since the cause and mitigation measures may not necessarily be only biological.

chapter 5. recently there is a lethal camel disease out breaks in the PAP areas which the veterinarians are unable to control it. vaccination. the discussion could be on organizational aspect and/or relationship. because both the disease and the host are unknown to them. For example by the time the Ethiopian CAADP study started there was no Directorate in MoARD. the result of the exercise is not totally immune from bringing changes in this regard. The process is dynamic. Traditionally. transport. camel milk and camel meat is on rise both in domestic and international markets.Camel Research and Development Programme: Camel has been an important animal in the PAP areas. This should be addressed after the on-going BPR exercise is complete.1 Organizational aspects With the various stakeholders in terms of organizational aspects often leads to the understanding and finalization of the on-going business process reengineering (BPR) exercises. Its veterinary drug requirement. Because of such dynamism in terms of organizational arrangements of institutions. For example. it was not easy to say a gap or weakness exists or not. Hence it is proposed the two be merged and become under one programme. it is appropriate to recall. and entertainment for the households. one can also assess the capacity gaps within and across institutions. Although in principle BPR is not an exercise to change the structure of an organization. besides its traditional value. camel is little known animal in the scientific world. 7. The demand for live camel. Besides. and reproductive behavior are unknown. Socio economics and extension research: The existing arrangement present the socio economics research programme and the agriculture extension and technology transfer research programme separately. This phenomenon justifies that camel research and development program should be launched in the NARS. Range and Water Resources Development Research: At a national level there is no explicit research programme that addresses range issues together with water resources development. What the socio economics research programme does have some components that are closely linked to the extension activities. meat. feed requirement. However. it provides milk. which has a strong component range land improvement with pasture and forage development interventions. the pastoral herd structure is changing in favor of camel. which was directly responsible and had a separate budget in order to undertake various activities related to agriculture investment promotions. has become a source of income. such as Tendaho Kesem. that there is no significant rural land 82 . This effort requires an integrated approach of range and water resources development and a research programme that supports it.4 Institutions As pointed out in the chapter that covered the methodology of CAADP Ethiopia study as well as the chapter that covers the report on existing institutions. and in the Agriculture Marketing sub-sector.4. On the other hand. as reported in section 5 of this study. Similarly BPR result driven organizational changes are being observed in the DRMFS Subsector. draught. Because of natural and economic factors. 7. Yet. Recently. the government is embarking on medium to large-scale irrigation schemes. By the time the Regional Consultation Workshop was conducted it was reported that a separate directorate is established and the former related activities which were under the Agricultural Extension Directorate is transferred to the new one.

Some NGOs were blamed for not having coordinated development interventions even in a given woreda. some pastoral communities do not agree with NGOs water sources development interventions since the NGOs eventually hand over the output to the formal administration (PALTAS.4. the information flow at all levels is based on personal relationship.2 Linkage/relationship Notwithstanding the above. linkages among GOs. Individual NGOs interventions sometimes bring contradiction with the traditional systems. Sometimes three or more embark in identical projects in a given woreda and sometimes in adjacent kebeles resisting the advice of woreda officials and experts not to do so. NGOs. RE&D.administration and utilization activity at the Federal level while there are related issues to be addressed in an organized and coordinated way. MoARD. and maintaining sustainable link with the rest of the world.. warehouse and ECX. Irrigation construction and use. Quarantine. Institutional gap issues related to linkages or relationships        Information exchange. it was possible to identify institutional gaps related to linkages or relationships i. 83 . Warehouse and ECX. Linkages among GOs. However. Besides. and CSOs Federal level linkage among Ministries and Agencies is smooth but mostly informal.e. Regional or for that matter between Regional and Woreda levels. irrigation construction and use. There is hardly a systematized and institutionalized information exchange between Federal. 2008). and CSOs. Currently these activities seem to be distributed to Directorates within MoTI. information exchange and documentation need attention. federal and regional level activities are not also systematically linked and institutionalized. documenting a retrieval of accumulated relevant data and information. This includes issues of information exchange. The vanishing or dismantling of the Export Promotion Agency (EPA) need a reassessment in view of maintaining already established export markets. standard and quality control. for example in PAP areas on water resources development. Linkages among GOs. and pastoral affairs coordination. Some pastoralists believe that water points contribute to pasture land degradation with human and animal population concentration around them. NGOs. and Horticulture Development Agency. standard and quality control. and CSOs. Pastoral affairs coordination Information exchange Exchange of information among federal and regional institutions is one of the major weak linkages. During discussions with different stakeholders. 7. NGOs. Linkage between MoARD and MoTI in the area of export promotion. quarantine. synergy. The discussion with various stakeholders about CSOs revealed that the influence of such societies in Ethiopia‟s agriculture and rural development policy formation and implementation is insignificant and requires stimulation. RE&D.

BoARD and BoWR on irrigation infrastructure construction and use needs a reexamination. While those responsible to construct medium and large-scale irrigation infrastructure are MoWR and BoWR. standard and quality control both in crop and livestock agriculture calls for a strong linkage among relevant institutions such MoARD‟s Animal and Plant Health Regulatory Directorate. For example in the case of seed production. There is no harm if ECX use the warehouses for commodities that are traded through the exchange system. Same is in the vaccine and animal drugs business. vaccine and animal health drugs. testing. these are not available as required because of the little attention given to the RE&D issues of PAP areas. Warehouse and ECX Warehouse receipt and credit and the ECX are timely undertakings but the linkage between the two in practices needs reexamination. However. They should be receiving the service adequately and timely to keep their produce in the warehouse system even if they are not trading through the exchange facility. the system to prevent adulteration is not functional. monitoring and evaluation. Private Input Producers and Traders.Research. Specifically the livestock sub-sector has suffered from inadequate technology generation and transfer. Thirdly. yet research has not been able to sufficiently address the problems and constraints of the agriculture sector. Semen as an input received very little attention and adulteration is reported in several instances. specifically on chemicals and improved seeds. verification. there is no clear and institutionalized 84 . investment in pastoral and agropastoral research and extension is highly required. packaging. Extension and Development (RE&D) In spite of government support and increasingly funded agricultural research. there is a technological gap in the PAP areas. even the few cases that are noticed were not subject to legal scrutiny due to gaps in the legal system. screening. there is a paucity of regulatory mechanism to regulate the procurement and distribution of agricultural inputs. In the livestock sector similar to the improved seed. supply and regulation chain. In the realm of RE&D the pastoral and agro-pastoral issues are not adequately covered. Quarantine. Both livestock and crop improved technological inputs are required in the PAP areas. These investments should focus on institution and capacity building. implementation. However. MoWR. this should not deter the focus of using the warehouse receipt and credit system for the many small holders who are subject to unreasonable price deals at times of harvest but critical cash needs. Agricultural Marketing Directorate. there is a problem of standard and quality control related to semen. Irrigation construction and use The linkage between MoARD. Revenue and Customs Authority. technology introduction. Since. first the production is often not demand driven. Inadequate vertical and horizontal collaboration among research institutes and weak research extension farmers‟ linkage extended to the woreda level appears to be some of the institutional challenges contributing to the lack of effectiveness in the RE&D chain. standard and quality control Agricultural inputs quarantine. Secondly.

specifically at woreda levels. Particularly in terms of repair and maintenance interventions and those responsible for it are not clearly established and institutionalized. The problem is even severe at the grass root. it was found out that there is a cooperative agency at Federal level and each region also has its cooperative agency. pressure is mounting on few individuals who are not equipped as expected in the BPR principles. But according to the discussion with various stakeholders. equipment and other facilities. These are two core institutional arrangements that have contributed positively to the recent achievements of high growth rate in the agriculture sector. But most of them have no adequate and appropriate offices.linkage between them and MoARD and BoARD in terms of transfer of the physical infrastructure and the work to be done jointly till the actual targeted beneficiaries are in use of the facilities..4. In ARD core in programme implementation are the woreda ARD offices. Each institute appears to take its own course of action.e. In this regard. The discussion with the relevant stakeholders revealed that FTCs still need additional capacity 85 . machinery. and Inter-Ministerial Board under the MoFA. Because of this. hence the recent effort to put trained and educated human resource is subjected to underutilization. Currently. There is a gap in terms of having a legalized body which have the mandate to mobilize internal and external resources (fund) and align indigenous traditional institutions with formal institutions (Research Centers. It is also important to note the problem that exists at ATVET and FTC levels. For example. working premises. equipment. the problem is that the means to provide the necessary support and hence to achieve the designed change is not in place. BPR is bringing new and encouraging way of doing things. This is manifested through the establishment of the Pastoral Standing Committee in the House of Representatives. In general the good intentions of BPR are being challenged by the practical absence of the needed capacity in program implementing institutions. furniture and other facilities. The staff has a meager annual operation budget. Administration etc) for the purpose of development in the PAP areas. equipment and furniture. their contribution would have been more had it been that their requirements in terms of human resources and facilities were fulfilled. Universities. Tasks are expected to be accomplished with least number of staff. and the special coordination Offices of the PAP areas. 7. and also the woreda gets a staff assigned for cooperative affairs. like those of Water Users Association in the small-scale irrigation facilities use and management. However. Pastoral affairs coordination The Government of Ethiopia has given a high priority for the wholestic development of the PAP areas. timely with a support of modern equipment such as computers. on pastoral affairs there is a need to reexamine the role of coordination offices in various ministries and that of the technical committee.3 Capacity Capacity gap indeed is a serious one in its entire dimension i. the pastoral institutions located in the different Federal institutions are not communicating systematically with strong legal base. As one of its guiding principles BPR is to make efficient and effective use of available resources. But the woreda staff handling cooperative affairs mostly does not have office space. human resources. But the actual work of establishing and strengthening cooperatives is at woreda level.

strengthening interventions. Capacity building in the area of curriculum development and implementation is highly needed. soil and water conservation is stated as strategy for 86 . it is recommended to devise the policy which gives emphasis for these areas and considers the situation and customs of the community in managing and utilization of natural resources in agro-pastoral and pastoral areas. The efforts so far done in the country is almost related with drought and relief that focuses mostly on drought prone areas. In the WTO Affairs Department of MoTI. The issue of land degradation and soil erosion has been discussed at different times by different people. Therefore. invasive unpalatable weeds and shrubs. in most research and training institutes there are problems of getting adequate trained and educated staff. the current trend of using the land unwisely and without plan will further exacerbate the current problems on agricultural production and economic growth. the Debre Zeit Animal Health Institute has suffered from shortage of staff despite its efforts to recruit. multipurpose small irrigation. For example. as well as pre and post-harvest losses. At regional and Federal level. They rarely have furniture and the minimum facility to provide training to farmers. The problems occurred in these areas due to this gap have been discussed in this report and other reports (ELTAP. in the livestock and pastoralism area.5. alternative household energy sources. These include issues related PAP areas land use and administration. particularly to join private institutions with attractive incentive structures. 7. The existing land administration and use policy of the federal and land administration and use proclamation of the regions did not address the problems related with land and natural resources in pastoral and agro-pastoral areas. which supports the existing land tenure policy to be implemented successfully and improve the rural development of the country. From this point of view. In the policy document analysis. a comprehensive land use policy which considers all the agro-ecological zones of the country must be formulated. forest and forest product utilization. human capital formation is the major bottleneck despite the aggressive short and long-term training given to the staff because those trained are not staying and attrition rate is high because they leave the department in search of lucrative jobs.2008 ). Another example is in the area of trade.1 Areas of emphasis Within the Agriculture sector and the different programmes that exist there is a need to focus on some activities or areas of intervention. land degradation and soil erosion. animal feeds.5 Selected Areas of Emphasis and Cross-Cutting Issues 7. This is partly because of the emerging and expanding public and private HLI which are competing for the little trained personnel available in the current labour market. Same is true in terms of reorienting and strengthening ATVETS to produce skilled and trained agriculturalists. land use planning. Without proper land use plan in place. and effect of fertilizer use. and trans-boundary livestock diseases. while the issue of soil erosion is every where in the country. The policy gap in comprehensive land use planning is constraining the proper utilization of land and conservation of land resources to enhance production and productivity.

Therefore. example. the degradation. and management system need to be sought. where land shortage is prevalent. and in the lowlands. In our country the demand of house hold energy depends on woody bio-mass which contributes to deforestation and land degradation.integrated watershed management. 87 . It is recommended that it must not be limited to these products only. Most of the time irrigation is used for fruits and vegetable production which are directly linked with markets and infrastructures. For this purpose it is recommended that any activity performed at community level must be income based. incense. feeding. use of fuel saving technology and renewable energy sources. the issue of decline in range land productivity calls for close attention with a multi-disciplinary research and development endeavor. A system which can augment the productivity and production of the nation‟s livestock resources with a well designed policy and strategic goals. Low rangeland productivity together with shortage of rainfall leads to low pasture productivity reflected by poor animal performance and productivity. and infestation by invasive unpalatable weeds and shrubs. Therefore. resin. and shrinkage of the rangeland. Irrigation is one of the important tools for agricultural development when properly used and managed. To alleviate this problem it is recommended to look for alternative household energy through community woodlots development. In forest management and protection. all the policy statements concentrate on expansion of forest coverage through plantation. The rangeland productivity is declining due to reduced rangeland size. It is high time that. Feed shortage is becoming a very critical issue both in the highlands. An alternative livestock rearing. the traditional and subsistence livestock production system needs to be replaced by scientific management and production system. alternatively irrigation must be used for other opportunities like fattening and feed production which have a significant role in income generating at house hold level. The households are still following the traditional livestock rearing system. The soil and water conservation activities are mostly done at community level with labour contribution. The utilization of forest and forest products and non timber products including dry land species products. Improving animal feeds and nutrition are critical issues in the Ethiopian livestock development context. to improve the livelihood of the community and enhance proper conservation and utilization of resources. the expansion of compound animal feed industry by the private sector is non-existent. including the maximization of livestock owners income and improving their living standards. which is open grazing. bamboo. Low animal productivity in PAP area implies food insecurity of the households. honey and forest coffee etc. soil and water conservation as part of land management requires due attention by government to have clear policy and strategy which accommodate all the agro-ecological zones of the country. where range degradation and invasion by invasive weeds is spreading. cyclic drought and erratic rainfall. In the midst of this. The two critical constraints in the PAP areas are shortage of water resources. management should get due attention from the economic value of the resources.

Since the introduction of inorganic fertilizer in the 1960s. Endogenous is referring to farmer‟s failure to properly manage the necessary agricultural practices starting from land preparation to harvest.Parallel to improving animal feeds and nutrition in the context of scientific management and production system. During this time claims of ownership of nutrition programmes by different institutions specifically MoARD and MoH has contributed to prohibit effective implementation of designed strategies. the data for 2007/08 indicates the nation would have gained additional about 32 million quintals of grain had it reduced the loss say to 10%. the development of camel vaccine should receive a priority. Available data indicates annually 15-20% loss of potential grain production due to pre-harvest mal-practices and natural disasters. Unless. For example the availability and access to food is the responsibility of MoARD while the utilization and dietary health and care is that of the MOH. Currently it seems this problem is getting a solution. MOH. Ethiopia looses annually a tremendous amount of agriculture produce due to pre and post harvest losses. which are also vulnerable for illicit crossborder trading. Addis Ababa (Text in Amharic). Similarly up to 30% of post harvest losses are reported due to inappropriate collection. and CCPP need to be controlled. and eliminated. National Nutrition Strategy. This is partly because of little emphasis given to establish and reinforce soil laboratory capacity in the different agro-ecological zones of the country targeting not only distribution but also fertilizer use efficiency. quarantine and inspection stations. Exogenous factors are those related to natural uncertainties like drought and pest outbreak. the consumption of fertilizer has been on rise but remaining far below expected coverage. their competitiveness in the international trade is highly essential but dictated by the state of animal health in the areas. The pre-harvest loss is related to endogenous and exogenous problems. For example. 7. Especially. In general. transport. On the basis of this nutrition strategy has been drafted and revised about five times in the last two decades. Particularly this should be given special attention in PAP areas. and strengthening both non mobile and mobile veterinary services.2 Cross-Cutting Issues: Nutrition. treatment of pests and rodents. 88 . loading and unloading etc. Gender. January 2008. the competitiveness in international livestock trade can‟t be realized.81 which was based on the study coordinated by MoARD/UNICEF in 200582 indicates clearly that it is the MOH which will form and lead a national coordinating committee. since the PAP areas economy heavily depends on livestock. and Climate Change Nutrition is indeed is a cross cutting issue both in terms of technical and institutional aspects. CBPP. HIV/AIDS. and in turn this committee is expected to ensure the presence of integrated and wholestic nutrition programme designing and implementation at different levels of governments. The consultants team appreciated the coverage of the latest NNS document but still additional focus and efforts are 81 82 FDRE. the country heavily invests on the animal health services. In order to enhance the national contribution of the livestock sub-sector to GDP major transboundary disease like FMD. Illicit cross-border trade could be minimized by strengthening the domestic and foreign market system through the establishment of export abattoirs. storage. An Assessment of the causes of malnutrition in Ethiopia: A Contribution to the Formulation of a National Nutrition Strategy for Ethiopia. The recent National Nutrition Strategy (NNS) issued by MoH.5. networked with PAP structure. animal health services are essential elements for livestock development. November 2005.

this sector is facing a serious challenge by HIV/AIDS. Similar efforts to promote high value cash crops. the standardization and explicit nutritional values of the diverse crop and livestock products and byproducts. whole milk is not marketed. in the rural Ethiopia. Some stakeholders relate the prevalence of problems in adopting appropriate processing technology and post-harvest to gender issues. It was found out emphasis has been given to these issues85. A rise in temperatures as well as increases in rainfall variability are expected to reduce crop yields. 2009 in the bibliography) For details refer Demese‟s contribution (Chapter 3) of the above study. locally processed. Same is true in poultry rearing. Particularly the government has given due attention to the impact of climate change on meeting the goals of reducing hunger and setting a sustained food secure country. exacerbate livestock losses. Although there are extensive interventions by the MoH and MoWA. It is mostly women that practice home gardening or have time to manage small-scale irrigated agriculture. specifically horticultural crops are being challenged with the gender issue. and to adequately address the productivity effect of malnutrition on food insecurity84. MoARD. 85 During the MDGs Needs Assessment HIV/AIDS and Gender were considered as separate self standing study areas and documents were issued accordingly. For example. Attempts to improve the traditional processing methods have not been successful so far partly because the gender conflicts related to the control of cash income from sale of these items. 86 Mathewos Hunde. In areas where agriculture is dependent on rainfall yields will drop by 50% and many livestock breeds may not be able to tolerate the climate change. During the stocktaking exercise hardly there exists a unique cost centered programme on HIV/AIDs and Gender within the ARD sector. In a recent report by one of the top officials of MoARD86. and a s a result impose food stress on households livelihoods.needed to integrate adequately and appropriately the nutrition issues of PAP 83 communities. the existing limitations in expediting the assessment of the impact of HIV/AIDS in the productivity of agriculture labour and as a consequence on production need to be addressed without ado. 83 84 The NCs are aware of recent undertakings in this regard. and environmentally unfriendly manufacturing and consumption practices) will seriously affect Ethiopia‟s agriculture. (See USAID. but butter and cheese. are. But rewards to labour are not often going in terms of labour contribution made to such activities. But both the processing and marketing is done mainly by women using traditional methods. In general gender mainstreaming needs to be strengthened and expedited in order to increase the marginal benefit obtained from rural labour (men and women) and in aggregate to enhance value addition in the agriculture sector. by 2020 up to 250 million people in the Sub-saharan Africa are expected to have less water. In spite of the positive performance of agricultural growth. Global warming (carbon emissions. Ethiopia at large and its agriculture sector specifically is extraordinary sensitive to climate change that impact everyday practices.” Early Warning and Response Directorate. 89 . Climate change has recently become the major concern of the GoE. high fuel consumptions. still the incidence and influence of HIV/AIDs in ARD and its effect on the availability and productivity of labour is being addressed through limited studies. Efforts of mainstreaming gender are put in place in the various programmes of the agriculture sector. “Climate Change and Ethiopian Agriculture. Hence. DRMFSS. February 2008 (PPP). But they are not done as fast as expected.

90 . Therefore during the CAADP implementation period in Pillar III the sub-pillar on Disaster Risk Management has to design various interventions to mitigate the problems of climate change in the country at large and the agriculture sector specifically.and undermine development interventions.

tea. 8. such as groundnuts. tobacco. Agricultural Growth and Poverty Reduction in Ethiopia: An Economy wide Assessment87 This chapter analyzes agricultural growth options that can support the development of a more comprehensive agriculture and rural development programmes with a focus on the goal of reducing poverty and hunger that is also in alignment with the principles and objectives CAADP collectively defined by African countries as part of the broader NEPAD agenda. and enset. DREME also contains information on the non-agricultural sectors. sugar refining. coffee. vegetables. DREME also identifies four livestock sub-sectors. 24 of which are in agriculture (see Table 8. maize. The seven agricultural processing activities identified in the model include meat and fish processing. (iv) higher-value export-oriented crops. barley. which includes chat and other staples. and (iii) the effects of alternative sources of growth on household incomes and poverty. sugarcane. 1 Modeling Sources of Agricultural Growth and Poverty Reduction Dynamic Regional Economywide Model of Ethiopia (DREME) A new Ethiopian computable general equilibrium (CGE) model was developed to capture (i) trade-offs and synergies from accelerating growth in alternative agricultural sub-sectors.1). (iii) horticulture. (ii) the economic inter-linkages between agriculture and the rest of the economy. Although this chapter focuses on the agricultural sector.1. which are separated into teff. and (v) other crops. and sorghum and millet. and cut flowers. grain milling. and other foods. To complete the agricultural sector. poultry. tobacco. milk.8. which is separated into fruits. This model is called the Dynamic Regional Economywide Model for Ethiopia (DREME). 87 Prepared by International Food Policy Research Institute 91 . (ii) pulses and oilseeds. DREME has two further sub-sectors capturing forestry and fisheries. such as fertilizer from the fertilizer sector and marketing services from the trade and transport sectors. The agricultural sub-sectors also use inputs from non-agricultural sectors. including cattle. which are separated into cotton. beverages. such as beans. Most of the agricultural commodities listed above are not only exported or consumed by households but are also used as inputs into various processing activities in the manufacturing sector. such as root crops. Agricultural crops fall into five broad groups: (i) cereal crops. dairy. In total DREME identifies 65 sub-sectors. and other animal products. wheat. and oilseed crops. which is separated into pulses.

1. DREME is thus an ideal tool for 92 . The representative farmer in each zone responds to changes in production technology and commodity demand and prices by reallocating their land across different crops in order to maximize incomes. wage employment. and Zone 3 (pastoralist region). DREME combines the national or macroeconomic consistency of an economywide model with zonal-level production models. by capturing production information across subnational regions.1: Sectors in the DREME model Agriculture Other manufacturing 1 Teff 35 Textiles 2 Barley 36 Clothing 3 Wheat 37 Leather products 4 Maize 38 Wood products 5 Sorghum 39 Paper and publishing 6 Pulses 40 Petroleum 7 Oilseeds 41 Fertilizer 8 Vegetables 42 Chemicals 9 Fruits 43 Non-metallic minerals 10 Enset 44 Metals and products 11 Cotton 45 Machinery 12 Sugarcane 46 Vehicles and transport equipment 13 Tea 47 Electronic equipment 14 Chat 48 Other manufacting 15 Tobacco Other industry 16 Coffee 49 Coal 17 Flowers 50 Natural gas 18 Other crops 51 Other mining 19 Cattle 52 Electricity 20 Milk 53 Water 21 Poultry 54 Construction 22 Animal products Private services 23 Fisheries 55 Wholesale and retail trade 24 Forestry 56 Hotels and catering Agricultural processing 57 Transport 25 Meat 58 Communications 26 Dairy 59 Financial services 27 Vegetable products 60 Business services 28 Grain milling 61 Real estate 29 Milling services 62 Other private services 30 Sugar refining Public services 31 Tea processing 63 Public administration 32 Other foods processing 64 Education 33 Beverages 65 Health 34 Tobacco processing Source: Dynamic Regional Economywide Model of Ethiopia (DREME). and diversification into non-agricultural sectors. trade and construction. Thus. Farm production is disaggregated across four rural zones.1.2. such as transport. including livestock and fishing. Zone 1b (humid enset region). DREME also captures regional heterogeneity. These include Zone 1a (humid cereals region). Zone 2 (drought-prone region). These zones reflect different agro-ecological and climatic conditions across the country. as shown in Table 8. These farmers also reallocate their labor and capital between farm and non-farm activities.Table 8. DREME captures the initial cropping patterns in each of the four zones.

Each household questioned in the 2005/06 household income and expenditure survey is linked directly to the corresponding representative household in the model. Finally. This is the micro-simulation component of DREME.2 Zones in the DREME model Zone 1a: Humid cereals region Addis Ababa Afar Zone 3 Amhara North Gonder North Shewa South Gonder Benishangul Assosa Kemashi Metekel Oromiya Adama Special Arssi Bale Borena East Shewa East Wollega Guji Illubabor Jimma Jimma Special North Shewa South West Shewa West Shewa West Wollega SNNPR South Omo Zone 1b: Humid enset region SNNPR Alaba Special Amaro Special Basketo Special Benchi Maji Burji Dawro Dirash Special Gamo Gofa Gedeo Guraghe Hadiya Kaffa Kembata-Tembaro Konso Special Konta Special Sheka Sidama Silte Wolayta Yem Special Zone 2: Drought prone region Zone 3: Pastoralist region Afar Zone 1 Dire Dawa Amhara Agew Awi Harari East Gojam Oromiya East Harerghe North Wollo West Harerghe Oromiya Zone Somali Jijiga South Wollo Liben Wag Hemra Shinile West Gojam Tigray Central Tigray Eastern Tigray North Western Tigray Southern Tigray Western Tigray Source: Dynamic Regional Economywide Model of Ethiopia (DREME). disaggregated by rural zones. There are 12 representative household groups in the model. the poorest 40 percent of the population). Table 8. changes in representative households‟ consumption and prices in the CGE model 93 .. and poor/non-poor status.capturing the growth linkages and income-and price-effects resulting from accelerating growth in different agricultural sectors.e. „Poor‟ is defined here as including all households falling into the lowest two per capita expenditure quintiles (i. DREME endogenously estimates the impact of growth on household incomes and poverty. In this formulation of the model. small and large urban centers.1.

94 . 2009-2015) (see Table 8. it still assumes a fairly strong performance by the agricultural sector over the coming decade. Ethiopia has experienced rapid growth during 1991-2000 (i. were used to identify the four zones and to disaggregate production.. Thus. and changes in poverty draws on the consumption patterns. DREME is therefore consistent with recent agricultural production levels and yields at the zonal level. This was then extended to include the four agro-ecological zones.2 Poverty Reduction under Ethiopia’s Current Growth Path In this section we use DREME model to examine the impact of Ethiopia‟s current growth path on poverty reduction. Data sources for the model The core dataset capturing the economic structure of the Ethiopian economy is the 1998/99 (i. 1998-2007).. much of this rapid economic growth has occurred in the last few years. and it is uncertain whether in today‟s global economic recession. Accordingly. income distribution and poverty rates captured in the latest household income and expenditure survey. where total consumption expenditures are recalculated. This „business-as-usual‟ or baseline scenario draws on production trends for various agricultural and non-agricultural sub-sectors..e.. such rapid growth can still be achieved over the near-term.1. 2005/06) social accounting matrix (SAM) developed by the Economic Development Research Institute (EDRI). poverty is measured in exactly the same way as standard poverty estimates.e. with national GDP growing at almost eight percent per year. Although this is below the recent spike in agricultural GDP growth rates. This new level of per capita expenditure for each survey household is compared to the poverty line. Zonal-level agricultural production and area data were taken from the 1998/99 (i. However.e. During this period the agricultural sector did not grow quite as rapidly. and the disaggregation of household groups. and standard poverty measures are recalculated. The latter was done using the same household survey that was used to construct the SAM.component are passed down to their corresponding households in the survey. and. the baseline scenario takes a more cautionary position and assumes average annual agricultural growth of four percent per year during 2002-2008 (i. 8. together with EDRI. with an average growth rate of six percent per year. 2005/06) agricultural sample survey.3).e.

03 6.73 Fruits 0.67 5.18 Enset 1.90 3.51 4.32 5.16 2.07 7.55 7. 2009 (%) Nonagric.41 Pulses & oilseeds 3.97 4.62 4.08 7.72 4.56 4.15 3.68 4.44 6.40 2.19 Agro-processing 10.86 7.05 7.90 5.66 5.32 4.71 4.99 2.34 7.00 9.49 Wheat 2.60 6.00 6.71 6.10 7.56 3.77 3.77 3.33 7.46 3.03 8.74 7.65 3.69 6.01 6.56 7.03 8.97 1.41 Agriculture 36.72 7.37 5.48 Industry 21.08 -0.3: Sector growth results from model scenarios Average annual GDP growth rate.37 Grain milling 0.72 5.94 Tobacco 0.99 7.93 4.55 7.92 4.56 2.35 5.65 5.86 9.09 5.54 7.53 6.47 Fisheries 0.65 6.63 7.96 Other agriculture 4.78 3.00 6.97 7.43 5.42 6.47 6.36 7.52 1.09 6.73 7. 2009-2015 (%) Cereals ExportLivestock All crops agric.95 3.13 6.46 5.30 5.22 3.64 5.24 3.74 3.31 Horticulture 2.26 3.51 4.48 Manufacturing 13.03 5.30 7.96 9.96 4.37 7.11 11.44 2.03 5.11 4.03 0.39 5.63 4.14 4.02 6.08 Oilseeds 1.71 6.44 Other crops 1.55 3.19 3.69 Animal products 1.03 6.23 4.75 7.35 3.68 Teff 3.99 1.88 3.1.75 7.23 6.43 2.13 5.20 5.46 Sorghum 1.86 10.16 6.34 4.72 10.79 Private 32.82 Other industry 7.16 5.24 5.31 5.31 4.16 0.22 8.15 2.14 4.31 3.03 5.76 7.48 4. Baseline GDP share.48 Cattle 0.06 3.34 4.12 12.70 3.54 8.43 7.01 -0.02 2.16 Poultry 0.07 3.72 3.34 7.71 6.74 0.44 4.03 5.08 1.72 1.63 3.22 3.06 5.04 4.46 12.72 4.33 6.54 11.43 4.04 2.18 6.65 12.39 3.63 7.89 6.53 6.43 6.99 7.14 3.74 6.89 12.54 2.22 4.03 Export crops 4.42 Services 41.87 6.86 Sugar refining 0.86 5.45 6.36 7.04 7.59 7.92 1.66 5.20 3.44 2.26 Chat 1.58 5.03 4.15 6.83 1.55 Cut flowers 0.94 5.33 5.36 Cotton 0.88 Livestock 5.35 Forestry 4.30 6.53 3.53 6.54 7.62 5.62 3.65 5.47 6.51 6.00 5.32 6.35 6.67 Source: Results from the Dynamic Regional Economywide Model of Ethiopia (DREME).69 Maize 3.68 4.00 7.58 5.05 7.87 4.01 6.10 Public 9.73 6.53 5.49 6.80 3.83 6.45 3.78 3.16 7.75 10.37 3.35 5.12 7.77 4.94 Cereals 13.14 Meat processing 4.49 7.71 4.70 6.81 6.78 5.18 3.54 5.77 2.61 12.56 0.90 3.31 4.43 6.95 4.44 2.78 3.86 3.34 Sugarcane 0.38 6.16 5. (1) (2) (3) (4) (5) Total GDP 100.94 5.83 6.09 4.72 Coffee 3.83 95 .52 3.93 3.76 2.89 6.46 4.20 6.03 7.00 4.14 5.71 6.67 7.73 4.56 Barley 1.23 5.51 Beverages 0.69 6.34 7.42 5.95 3.36 5.30 6.09 3.72 1.86 5.53 5.15 6.96 Dairy 3.21 6.Table 8.85 3.38 4.38 5.27 4.95 4.27 4.94 4.64 6.02 Other foods 0.14 Other crops 3.77 7.98 Vegetables 1.15 Tobacco processing 0.20 5.01 Milk 2.84 4.14 Pulses 2.38 6.66 5. (6) 7.35 7.69 3.84 3.27 6.

5 and 6... Similar patterns were observed for other cereals. 2015).2 percent per year during this period. Moreover.0 percent. Long-term agricultural growth has thus been driven more by expanded cultivated land than by improvements in cropping technologies.e. Table 4 shows the assumptions made about each sub-sector‟s yield growth.5 percent.18 tons per hectare by 2008 (i. and that yields rise to 2. 3.e.e. we assume that initial yields continue to grow rapidly at 3. with about two-thirds of production increases driven by area expansion. 2015). Land area under teff cultivation also grows at 1. 96 . 2005/06) and then assume that teff yields grow at 2. 2009-2015).. which is slightly below to the rural population growth rate of 3. from the previous two scenarios). 1998-2007). the Livestock scenario (3) contains the productivity gains for both cereals and export crops (i. Cultivated land growth is 2. We initially adopt the teff yield of 0. land area expansion varies across zones. This is equivalent to an increase in total harvested land by 2.01 tons per hectare by 2008 (i. such that the Export-Crop scenario (2) contains the results from the Cereals scenario (1). with manufacturing and services growing more rapidly than agriculture at 6.66 percent each year under the Baseline scenario. compared to yield growth of 2.7 percent. yield and area expansions vary at the zonal-level based on actual production trends. with the rest resulting from changes in cropping patterns and improvements in yields.e.76 tons per hectare that was observed in 1998/99 (i. The Baseline thus reflects expected improvements in the performance of the teff sector over the next decade without the introduction of any new programs and investments other than those already in place. Similarly. National and regional production of each of the five cereals crops in DREME is thus calibrated to closely reproduce long-term production trends. while yields improved each year by 1.Note: Simulation results are cumulative.6 percent per year during 2002-2008 (i.5 percent per year.e. The four percent agricultural growth rate in the Baseline scenario is based on more detailed production trends for different agricultural sub-sectors.e.2 percent per year in Zones 1a and 1b (humid regions).2 percent in Zone 2 (drought-prone region). and 3. land area under maize cultivation expanded by 2. More than half of agriculture‟s strong growth performance during 1991-2000 (i. with the only exception being wheat. plus additional productivity gains for export crops.e.39 per year. such that overall production expands by 4. According to production trends...7 percent respectively. 1998-2007) was driven by land expansion. 1998-2007) and so it assumes that land expansion will continue along its long-term path.85 percent per year such that Ethiopia achieves a sustained national average teff yield of 1.. The Baseline scenario is calibrated to production trends from 1991-2000 (i..56 percent. This is entirely consistent with observed production patterns for 1991-2000 (i.e. Similarly.7 percent in Zone 3 (pastoralist region). the non-agricultural sectors are expected to maintain their strong performance over the coming decade. For example.. where land area expanded extremely fast at 5. As shown in Table 4. for wheat.

86 2.617 2.30 1.01 1.00 4.99 436 770 793 5.00 Horticulture Vegetables 4.00 Other crops Chat 0.59 0.191 3.50 4.34 All crops 2.00 Sugarcane 33.31 5.15 0.73 15.72 2.646 3.39 4.022 1.43 2.16 Oilseeds 0.76 2.84 3.086 5.97 -0.45 4.56 954 1.31 Wheat 1.61 0. .56 5.20 1.36 4.42 1.00 -1.77 3.39 1.04 211 346 346 5.230 3.19 4.53 3.22 0.89 2.19 1.00 1.37 1.98 10.55 0.09 5 8 9 5.986 6.44 2.11 Enset 7.90 0.66 0.608 4.00 1.507 4.15 5.73 0.488 4.03 0.28 0.00 Tea 0.94 0.84 -0.23 86 127 159 4.07 1.Table8.82 778 1.96 0.647 5.76 1.00 2.576 2.70 Sorghum 1.09 6.19 1.00 6. 97 .00 3.00 2.11 Maize 1.80 0.26 3.77 0.25 Barley 1.92 1.110 1.749 4.00 Other staple 4.94 2.72 6.79 -0.83 4.12 1.18 3.61 2.462 1.05 0.77 0.20 1.85 3.271 2.55 7.75 0.32 4.00 5.43 2.44 1.03 5.69 34.134 2.00 1.49 6.37 6.13 1.50 3.17 4.72 38.15 4.80 0.42 0.02 2.00 4.385 4.950 4.738 5.81 172 248 320 3.66 1.49 4.84 1.58 2.68 3.80 0.22 3 3 3 -0.1.4: Production targets for baseline and agricultural growth scenarios Crop yields Levels (mt/ha) Growth rates (%) Initial Baseline Target Baseline Target 2005 2015 2015 2005-15 2005-15 Crop production Levels (1000 mt) Growth rates (%) Initial Baseline Target Baseline Target 2005 2015 2015 2005-15 2005-15 Crop land area Growth rates (%) Baseline Target 2005-15 2005-15 Cereals Teff 0.466 2.39 4.58 1.00 2. final sector targets are based on results from the Dynamic Regional Economywide Model of Ethiopia (DREME).69 4.61 Source: Crop targets drawn from consultations with CAADP stocktaking team and representatives from the Ministry of Agriculture.04 5.00 0.56 2.67 2.82 10 14 15 3.67 4.00 2.89 5.63 Pulses &oils Pulses 0.00 Coffee 0.67 0.595 1.169 2.01 1.41 0.00 6.12 2.74 1.85 5.39 6.00 Tobacco 0.01 1.08 15.69 4.02 2.84 6.52 7.19 2.70 0.33 6.636 4.10 Fruits 13.475 5.72 2.423 3.50 4.00 Export crops Cotton 1.55 2.31 1.20 -1.51 0.26 0.42 120 152 152 2.462 5.32 1.445 2.50 Flowers 1.84 2.83 0.04 5.86 3.15 2.22 3.

and with strong upstream linkages to meat processing in the manufacturing sector (see Table 8.1).1. while rural poverty declines from 41. including fruits.3 ).e. enset yields remained unchanged at 7. For example.e. 1998-2007).e.0 percent per year respectively during 2002-2008 (i. with the latter generating 4. with the exception of tobacco. poverty falls in small centers from 33. 2009-2015).e. and other staples.e.. this means that per capita GDP grows rapidly at 2. 98 . 2015).64 percent. The Baseline scenario assumes that livestock GDP will expand at a rate of 3. 1998-2007).. reflecting a slight deceleration in economic growth over the coming decade. Based on national accounting for the period 1991-2000 (i. For the forestry sub-sector. For example.1.. This is reflected in the Baseline scenario. 2005) to 18.. but cultivated land area grew extremely fast.... 1998-2007).. whose production levels declined slightly.55 tons per hectare. vegetables and enset. such as root crops. For example.64 percent during 2002-2008 (i. albeit slower than the major staple crops. the Baseline scenario assumes that value-added in this sub-sector will grow at 3. unlike cereals. This is reflected in the Baseline scenario.0 percent per year. 2009-2015). Relatively balanced growth across both agricultural and non-agricultural sectors means that national income growth is fairly evenly distributed across both rural and urban areas and agro-ecological regions. Particularly rapid production growth was observed for the horticultural crops..15 percent of total agricultural GDP in 1998/99 (i. With rising per capita incomes and fairly balanced growth across all sectors. DREME simulation results indicate that. 1998-2007). The Baseline scenario therefore assumes that the export-oriented continue to grow rapidly. This is below the rapid growth of the crop sectors.11 percent by 2008 (i. 1998-2007). during 1991-2000 (i. However.95 to 19.e. but is entirely consistent with livestock GDP growth rates reported in national accounts for 1991-2000 (i. Similar biases towards land expansion over yield improvements were observed for pulses. the absolute number of poor people in Ethiopia would decline from 25. these high growth rates were driven more by land expansion than by improvements in crop yields..e. 2005-2015) (see Figure 8.72 and 4.e. Only tobacco production is expected to decline based on long-term trends. The Baseline scenario does reflect more rapid growth in the milk and poultry sub-sectors. Industrial and export crops performed quite well during 1991-2000 (i.e. the Baseline scenario assumes that fisheries GDP grows slowly at 0.2 percent per year.. with four percent growth in the agricultural sector and more rapid growth in the non-agricultural sectors. and despite an expanding population.e. 2005/06). where the five percent production growth rate is solely driven by a five percent expansion of enset land area.. This is just below the average GDP growth rate of six percent observed for 1991-2000 (i. Drawing on the above trends.2 million by 2008 (i. Fisheries and forestry are also agricultural sub-sectors in DREME.e. it reveals the persistent burden of poverty in the country and emphasizes the need for reinforcing pro-poor sources of economic growth. This rapid poverty reduction.78 percent per year. DREME estimates that poverty will decline from 40 percent to 21 percent during 1999-2008 (i.National production trends were used to calibrate the Baseline growth rates for non-cereals crops. 2009-2015). coffee and cotton production rises by 3. Livestock is a key agricultural sub-sector generating a significant share of agricultural GDP. overall national GDP will grow at an average rate of 5.e.74 percent per year during 2002-2008 (i. With population growth at 3.31 to 21.55 percent..e.8 million people in 1999 (i. 2015). While this is a significant reduction in the number of poor people living in Ethiopia. oilseeds.

. 2015).e.3 Accelerating Agricultural Growth and Poverty Reduction In the previous section we described the results of the Baseline scenario.1.e. under the Baseline scenario we assumed that average yields would rise from 0. The yields of other crops were also increased in a similar manner but to differing degrees based on long-term trends and potential yields (see Figure 8. Therefore.85 percent per year to 3.Figure8. This national target yield was identified together with the CAADP stocktaking team and in consultation with the Ministry of Agriculture and Rural Development (MOARD).e. which estimated the impact of Ethiopia‟s current growth path on poverty reduction. We assign the poverty line so that 40 percent of the population is classified as „poor‟ (i. This implies that national average teff yields will rise consistently over the next decade to reach 1.2). We found that while economic growth over the coming decade is expected to remain robust and will halve the national poverty rate. based on reasonable sub-sector growth potentials. 2015).. 8.1.12 tons per hectare by 2008 (i. Taking teff as an example.. A sustained six percent agricultural growth rate is achievable Accelerated crop production is modeled by increasing yields in order to achieve yield targets identified for 2008 (i.76 to 1. We also estimate the potential contribution of different agricultural sub-sectors in helping Ethiopia substantially reduce poverty throughout the country. 2006-2015) (see Table 8. with the annual yield growth rate for teff rising from its current 2.01 tons per hectare during 1999-2008 (i. 99 .1. in this section we examine whether the six percent agricultural growth target identified by CAADP is achievable. it will reduce the number of poor people by less than one-third.89 percent per year.1: National poverty results from model scenarios.e. In this section we model more ambitious teff yield improvements..4 ). Note: The „poverty headcount‟ is the percentage share of the population living below the poverty line. the bottom two expenditure quintiles). 40 National poverty headcount (%) 35 30 25 20 15 10 2005 Baseline scenario All agriculture scenario With non-agriculture scenario 06 07 08 09 10 11 12 13 14 15 Source: Results from the Dynamic Regional Economywide Model of Ethiopia (DREME).

2015 Expected yields under baseline scenario. Thus. we accelerate economic growth in not just the agricultural sector. since it captures all possible sources of additional agricultural growth. Under the „All Agriculture‟ scenario. we also increase total factor productivity (TFP) to achieve targeted GDP growth rates. Five different scenarios were designed for this analysis. In the „all agriculture‟ scenario (Simulation 4). final sector targets are based on results from the Dynamic Regional Economywide Model of Ethiopia (DREME). wheat production increases from four million tons under the Baseline scenario to over six million tons under the „All Agriculture‟ scenario (see Table 4). such as „livestock-led growth‟.00 Sorghum Tobacco Oilseeds Coffee Cotton Wheat Maize Barley Chat Teff Source: Crop targets drawn from consultations with CAADP stocktaking team and representatives from the Ministry of Agriculture. The results of each simulation are cumulative. export-oriented crops (Simulation 2). and livestock (Simulation 3). The results of these scenarios are discussed below. In Scenarios 1-3 we target specific groups of crops or agricultural sub-sectors. and so on.1. For example. in the „cereals-led growth‟ scenario we increase total factor productivity (TFP) for all cereals crops so as to achieve the crop-specific yield target shown in Table 4. even though the additional growth required for other crops is less 100 Flowers . Similarly large expansions of coffee production are also achieved under this accelerated scenario. so that Simulation 2 includes the effects of Simulation 1. In the non-crop scenarios.00 0. we include additional growth from the fisheries and forestry sub-sectors.e. 2015 2. 2005 Crop yield (mt/ha) 1. agricultural growth accelerates to just below six percent per year for the period 2002-2008 (i.50 1.3). This is equivalent a „CAADP‟ scenario. Finally. This is driven by a strong expansion in cereals production. 2009-2015) (see Table 8.2: Current.. Simulation 3 includes the effects of Simulation 2. expected and targeted crop yields 2.1. including cereals (Simulation 1).50 0. but in non-agriculture as well. For instance.Figure 8.00 Current yields. in the „non-agriculture‟ scenario (Simulation 5).50 Accelerated yield growth target.

pronounced, the achievement of the six percent agricultural growth target remains ambitious. Livestock growth would also have to accelerate from an annual average growth rate of 3.22 percent per year under the Baseline scenario to 4.48 percent under the „All Agriculture‟ scenario. However, despite these challenges, the results from DREME indicate that if the crop yield and livestock productivity targets can be achieved by 2008 (i.e., 2015) then Ethiopia will be able to achieve and sustain the six percent agricultural growth target set forth by CAADP. Since agriculture is more than a third of the Ethiopian economy, the acceleration of agricultural growth increases the national GDP growth rate from its current 5.64 percent per year to 6.41 percent per year. Faster agricultural growth also stimulates additional growth in the nonagricultural sectors, by raising final demand for non-agricultural goods and by lowering input prices and fostering upstream processing. For instance, under the „All Agriculture‟ scenario, the GDP growth rate of agriculture-processing in the manufacturing sector increases from 6.33 percent under the Baseline scenario to 7.14 percent per year. Achieving the six percent agricultural growth target therefore has economywide growth-linkage effects for non-agriculture. Finally, we examine the impact of accelerating economic growth outside of agriculture. In the „Non-agriculture‟ scenario we increase the productivity growth rates of the nonagricultural subsectors by an additional two percentage points per year during 2002-2008 (i.e., 2009-2015). As shown in Table 8.1.4 , this causes the national GDP growth rate to increase from 6.41 percent under the „All Agriculture‟ scenario to 7.69 percent. Faster nonagricultural growth also stimulates additional demand for agriculture, thus helping raise agriculture‟s GDP growth above the six percent target. The increase in demand for agricultural products is larger for cereals and livestock, which form a larger share of urban households‟ and nonagricultural workers‟ consumption baskets, and whose incomes are rising as a result of faster nonagricultural growth. Thus, accelerating agricultural growth has positive economy wide effects, which can be further strengthened by an expanded nonagricultural sector. Agricultural growth greatly reduces poverty The acceleration of agricultural growth to around six percent per year under the „All Agriculture‟ scenario and its spillover effects into non-agriculture causes poverty to decline by a further 4.1 percentage points. This is shown in Figure 1, where the share of Ethiopia‟s population under the poverty line falls to 16.95 percent by 2008 (i.e., 2015) under the CAADP scenario compared to 21.05 percent under the Baseline scenario. Thus, taking population growth into account, achieving the six percent growth target lifts an additional 3.6 million people above the poverty line by 2008 (i.e., 2015). This is sufficient to almost halve the number of poor people in Ethiopia today (i.e., 25.8 million). Faster agricultural growth benefits a majority of households. However, not all households in all agro-ecological zones benefit equally from achieving the higher crop yields and faster sub-sector growth rates targeted under the „All Agriculture‟ growth scenario. Table 8.1.4 shows how poverty rates change under the various scenarios. Poverty declines amongst both rural and urban households, although the declines are largest in rural areas. Moreover, the largest declines in rural poverty rates occur in the two zones where poverty is initially highest: humid enset region (Zone 1b) and drought-prone region (Zone 2). Within urban areas, it is households outside of the 101

large urban centers that benefit more from faster agricultural growth. This is because households in smaller urban areas typically have lower incomes than households in, for example, Addis Ababa, and so usually spend a larger share of their incomes on food and agricultural products. They are thus more likely to benefit from faster agricultural growth than households in larger urban centers. However, these differences withstanding, poverty declines in large urban centers by over three percentage points under the „All Agriculture‟ scenario. Table 8.1. 4: Household poverty results from model scenarios
Final year poverty headcount, 2015 (%) Cereals ExportLiveAll Noncrops stock agric. agric. 2005 2008 (1) (2) (3) (4) (5) (6) National 40.01 35.12 21.05 18.28 17.30 17.05 16.95 12.69 Rural regions 41.31 36.02 21.55 18.66 17.66 17.51 17.33 12.64 Humid cereals (1a) 38.19 32.93 18.75 16.51 15.71 15.45 15.36 10.93 Humid enset (1b) 44.92 40.04 26.02 23.20 21.26 21.06 20.51 15.72 Drought-prone (2) 47.97 42.02 25.72 21.38 20.80 20.96 20.88 15.10 Pastoralist (3) 27.70 23.27 11.94 9.70 8.66 8.25 8.26 6.02 Small urban centers 33.95 30.86 19.11 16.62 16.05 15.27 15.56 13.57 Large urban centers 32.95 30.44 17.63 15.99 14.55 13.94 14.28 11.70 Source: Results from the Dynamic Regional Economywide Model of Ethiopia (DREME). Note: The „poverty headcount‟ is the percentage share of the population living below the poverty line. We assign the poverty line so that 40 percent of the population is classified as „poor‟ (i.e., the bottom two expenditure quintiles). Baseline Initial poverty headcount (%)

102

The impact of agricultural growth on households‟ incomes and poverty depends on a number of factors. One key factor is the geographic distribution of agricultural production. As indicated in Table 8.1.5, higher-value export-oriented crops are grown more intensively in certain zones.88 Coffee, for example, is concentrated in the humid cereals region (Zone 1a). However, it forms a large share of agricultural GDP in the humid enset (Zone 1b), and is also an important source of agricultural earnings for entire the pastoralist region (Zone 3). Similarly, while cereals form a large share of agricultural GDP in the humid cereals region (Zone 1a), it actually contributes a larger share to the poorer drought-prone region‟s agricultural GDP (i.e., it is 46.44 percent in Zone 1a and 50.15 percent in Zone 2). Finally, livestock is a key sector in all regions, contributing between 15 and 20 percent to agricultural GDP. These concentrations of particular crops and sub-sectors will influence how agricultural growth driven by certain sectors affects poverty in different parts of the country. The sources of additional incomes also vary across representative households within zones. Not surprisingly, households that already depend more on cereals tend to benefit more from cerealsled growth. However, there are two forces driving changes in production following sub-sectorspecific yield improvements. First, increasing cereals yields directly effects farm incomes since it increases the quantity of output that a farm produces using the same quantity of factor inputs. However, increased production faces demand constraints such that prices typically fall following yield increases. Thus, the direct impact of improved crop yields for a specific farm household is its net effect on crop production, weighted by the share of the household‟s land allocated to producing that crop. This direct effect therefore assumes that land allocations remain fixed. However, farmers may reallocate land in response to changes in relative prices. Thus, the indirect impact of crop yield improvements is the potentially positive impact of reallocating land to other crops. Thus it is important to note that, while we model cereals-led growth by increasing cereals yields, some of the gains under this scenario are derived from diversification into other higher-value crops facing better demand conditions. DREME captures both direct and indirect effects in its assessment of the effects of improved yields in different sub-sectors. Figure 8.1.3 shows the importance of taking demand constraints and relative price changes into account. Wheat, for example, faces domestic demand constraints and has weaker linkages to upstream food processing and foreign markets. As such, when wheat production increases substantially under the „All Agriculture‟ scenario, its prices decline dramatically (i.e., by over 13 percent in real terms or relative to the overall consumer price index). By contrast, some agricultural subsectors do not experience yield improvements under the „All Agriculture‟ scenario, such as pulses and horticulture, and so increased household incomes causes real prices for these crops to rise. Finally, some crops may also have stronger linkages to upstream processing and foreign markets, such as tobacco, which means that while their prices do decline under the „All Agriculture‟ scenario, they fall by less than for cereals.

88

Note that agricultural GDP in Table 5 excludes fisheries and forestry (i.e., only includes crops and livestock).

103

59 6.43 3.41 1.02 8.65 1.15 5.36 3.63 6.49 7.90 5.25 3.84 5.99 4.85 2.13 3.35 4.01 2.70 3.65 Pulses & oils 7.52 7.96 6.77 3.77 7.09 3.84 6.28 3.50 4.44 3.44 5.06 3.64 6.76 Horticulture 24. 2009-2015 (%) Cereals ExportLivestock All crops agric.84 Pastoralist (3) Agriculture 100.87 4.37 Other staples 9.36 7.22 Horticulture 6.59 6.90 7.48 4.75 7.92 4.85 Source: Results from the Dynamic Regional Economywide Model of Ethiopia (DREME).39 4.96 Livestock 15.63 6.80 5.79 0.27 3.32 6.83 4.85 Pulses & oils 4.93 8.53 8.88 4. (6) (1) National (all zones) Agriculture 100.97 Humid enset (1b) Agriculture 100.77 7.80 3.19 3.33 3.65 3.09 Export crops 13.49 6.32 3.52 Livestock 17.62 Export crops 3.36 3.52 7.22 5.22 3.36 Other staples 5.77 5.39 Export crops 13.21 3.64 4. (2) (3) (4) (5) Nonagric.36 7.26 7.51 4.09 6.Table 8.01 6.40 6.77 3.95 8.56 Cereals 17.65 Cereals 50.26 7.00 4.35 7.63 7.33 8.24 3.16 1.31 3.59 4.50 5. 104 .70 3.19 6.07 3.00 4.33 7.35 7.41 3.26 3.96 3.44 1.71 3.17 Pulses & oils 11.18 1.39 Cereals 46.07 1.14 4.31 3.53 7.58 Cereals 16.05 3.06 Horticulture 8.43 4.13 3.51 5.32 3.68 2.00 3.67 3.11 4.10 Export crops 14.20 3.30 5.00 6.53 Other staples 40.62 Pulses & oils 16.67 4.1.31 3.98 3.89 4.13 3.29 3.33 6.51 8.38 4.68 8.39 4.85 Livestock 20.98 Drought-prone (2) Agriculture 100.87 Horticulture 5.12 6.90 5.75 3.06 6.97 4.68 3.55 6.39 3. GDP share (%) Baseline Average annual GDP growth rate.28 Other staples 9.52 5.82 1.30 8.82 4.18 5.23 8.27 -0.36 7.23 3.72 2.34 Other staples 7.26 4. since these two sectors are not regionalized in DREME.13 5.61 8. Note: Agricultural GDP in this table excludes fisheries and forestry.89 4.79 4.67 4.32 5.26 3.33 7.34 4.16 Livestock 17. The national agricultural growth rate is therefore slightly higher in this table.63 Humid cereals (1a) Agriculture 100.49 4.72 3.04 4.24 3.00 3.46 4.19 5.44 3.43 2.5: Regional growth results under model scenarios Initial agric.46 8.64 6.27 3.25 3.00 4.21 6.78 Pulses & oils 11.61 1.42 Livestock 18.43 Horticulture 3.97 9.79 6.35 7.18 Cereals 40.00 3.07 8.42 3.42 4.73 3.75 3.95 6.22 3.11 6.52 7.33 7.35 2.99 6.68 7.81 4.54 7.68 3.31 3.81 5.20 4.87 6.61 6.46 4.22 3.72 4.48 2.18 5.73 4.98 5.24 3.99 1.55 8.81 5.30 6.15 Export crops 24.05 7.26 7.35 4.25 3.63 4.73 7.14 1.96 7.45 4.16 0.43 3.

It will. require substantial improvements in crop yields and livestock productivity over a relatively short period of time (i. 1.3: Changes in real market prices from baseline values under „All Agriculture‟ scenario.950 Sorghum Teff 0. accelerating nonagricultural growth can reduce some of the demand constrains on agricultural growth 105 . the higher growth potential of certain export crops and better market conditions in certain parts of the country may cause uneven income growth and poverty reduction. They therefore show how additional production places downward pressure on some commodities‟ prices. Note: These are real prices changes for selected products relative the prices achieved under the baseline scenario (adjusted for changes in the overall consumer price index). DREME results indicate that it is possible for Ethiopia to reach the CAADP target of six percent agricultural growth.e.050 1.000 0. seven years). however. However.Figure 8.975 Cattle 0..875 Maize Wheat 0.and sub-sector-level targets can be achieved then the resulting broader-based agricultural growth is likely to benefit households in both rural and urban areas. Finally. The livestock sub-sectors also contribute to agricultural growth and poverty reduction throughout the country.900 Source: Results from the Dynamic Regional Economywide Model of Ethiopia (DREME). If these crop.025 Pulses Relative price index (baseline scenario = 100) Tobaco 1.1.925 Poultry Coffee Milk 0.850 2005 06 07 08 09 10 11 12 13 14 15 0. In summary. but rising incomes and demand allow some commodities‟ prices to rise when growth is accelerated.

By contrast. since a larger share of poor household depend on cereals for their incomes. expanding export crops is most effective at reducing poverty in the humid enset region (Zone 1b) and amongst households in larger urban centers. the different sizes of these subsectors made it difficult to compare the effectiveness of sector growth in reducing poverty. Table 6 shows the calculated poverty-growth elasticities under the different growth scenarios. 106 . In contrast. The above analysis has shown how. and since more poor consumers (in rural and urban areas) spend a greater share of their income on cereals and milled grains. to capture growth-poverty linkages. it is cereals that is most effective at reducing national poverty. livestock production is especially effective at reducing poverty in urban areas and amongst rural households in the pastoralist region (Zone 3). where households are poorer than in larger centers and thus spend a larger share of their incomes on purchasing cereals and milled grains. and are thus better positioned to benefit from export-crop-led agricultural growth. need to be understood. Thus. which are primarily determined by a country‟s initial conditions. growth in cereals may be more effective at reducing poverty than similar growth in export crops. who are better endowed with capital and other assets needed to produce export crops. In the previous section we saw how households in certain regions have better opportunities to produce export-oriented crops. Growth affects individual households differently due to heterogeneity across household groups. Thus. In this section we calculate poverty-growth elasticities that allow us to compare the „pro-poorness‟ of growth in alternative sub-sectors. Understanding how growth-poverty linkages vary at the sub-sector and household level is important for designing pro-poor growth strategies in different parts of the country. with differences in household and farm characteristics. Urban consumers spend a larger share of their incomes on meat and dairy and so benefit more when production in this sector expands. agricultural growth driven by export crops may have less of an impact on poverty. cereals-led growth is also effective at reducing poverty in smaller urban centers. however. For similar reason. More specifically. export-crop-producing households are typically less poor than other rural households. cereals tend to be a more important source of agricultural incomes for poorer households. changes in income and consumption across households can differ considerably from average changes at the national level.Comparing sub-sector growth in terms of growth and poverty reduction The previous section highlighted the potential contributions of different crops and sub-sectors in increasing agricultural growth and poverty reduction. However. Overall. However. Finally. changes in the distribution of incomes. especially amongst the poorest households. Thus. the elasticity measures the percentage change in the poverty rate caused by one percent increase in agricultural GDP per capita. The „poverty-growth elasticity‟ measures the responsiveness of the poverty rate to changes in per capita agricultural GDP growth. These elasticities are endogenous outcomes from the model results. The results indicate that agricultural growth driven by cereals is most effective at reducing poverty in the drought-prone region (Zone 2). where households are generally poorer and depend more heavily on incomes from cereals production.

46 Humid enset (1b) -0. Note: The „poverty headcount‟ is the percentage share of the population living below the poverty line.12 -1. i.6 million people above the poverty line by EC 2008 (i. then it should be possible to sustain six percent agricultural growth in the medium term (during EC 1999-2008. 4 percentage points lower than the 21 percent poverty rate that would have been achieved without additional agricultural growth.1.70 -0.34 0. 107 . Moreover. both rural and urban households benefit from faster agricultural growth.22 -0. poverty amongst households in some zones will remain high.86 -0..52 Large urban centers -0. although rural households benefit more..e. Furthermore.6: Poverty-growth elasticities from model scenarios Percentage change in poverty headcount rate from a one percent increase in national agricultural GDP led by the following sectors… Cereals-led Export-crops-led Livestock-led National -0. some agroecological zones that grow higher-value cereals and export-oriented crops and which are better situated to larger urban markets (e.22 Pastoralist (3) -1.Table 8. Agricultural growth at six percent per year would increase overall GDP growth by one percentage point per year relative to the base run.21 Source: Results from the Dynamic Regional Economywide Model of Ethiopia (DREME).70 -0. the bottom two expenditure quintiles).21 -1. cereals already form a large part of the agricultural sector and have high enough growth potential to substantially raise agricultural and national GDP. humid lowlands and rain sufficient highlands) stand to gain more than other parts of the country. despite faster agricultural growth.25 Humid cereals (1a) -0.e. 2006-2015). Cereals are therefore a priority sector for increasing investments.89 -1.68 -1.30 -0.4 Summary of Major Findings Continued high levels of agricultural growth would reduce poverty The CGE model results indicated that if Ethiopia can improve crop yields and livestock productivity. This is because agricultural commodities are an important part of the consumption baskets of both urban and rural households. This higher growth rate would reduce national poverty to 17 percent by EC 2008 (i.g. 2015). 2015).46 -1.61 -0.02 -0. The previous section concluded that to increase agricultural growth and reach the six percent growth target. This means that the higher growth under the accelerated agricultural growth scenario would lift an additional 3.05 Small urban centers -1. We assign the poverty line so that 40 percent of the population is classified as „poor‟ (i..42 Rural regions -1..29 Drought-prone (2) -1. However.e.01 -0. Not everyone will benefit equally under the CAADP growth scenario Most households are expected to benefit from faster agricultural growth.18 -1. Finally. 8.99 -0..e. it will be necessary to encourage growth in a number of agricultural sub-sectors. The poverty-growth elasticities suggest that cereals should be afforded a high priority in any strategy aimed at substantially reducing poverty.

additional growth driven by cereals have larger impacts on poverty reduction. Increases in livestock productivity can potentially reduce poverty in pastoralist areas. by increasing incomes from agricultural production. especially amongst the poorest households.The composition of agricultural growth matters Comparing the effectiveness of growth driven by different sub-sectors in reducing poverty and encouraging broader-based growth. Thus. Cereals are also effective at raising rural real incomes and reducing poverty. 108 . high priority should be afforded to improving cereals yields and opening market opportunities for upstream processing to reduce demand constraints. particularly if marketing channels are improved so that livestock production do not lead to sharp declines in market prices. but also by allowing farmers to diversify their land allocation towards other higher-value crops. This is because these crops are already large and so can contribute substantially to achieving broad-based agricultural growth. Yield improvements in these crops not only benefit households directly.

and accountability. strategies and programmes framed within the Ethiopia CAADP four indigenized pillars. v. 6% average annual growth rate for the agricultural sector at the national level. strategy. This CAADP Ethiopia study found out that Ethiopia has surpassed the 6% average annual growth rate for the agricultural sector. agribusiness. analyze gaps in these and institutional capacities. shared by all NEPAD programs. Conclusion and Recommendations 9. In addition to these it is also designed to address the agricultural policies. iv. bio-diversity and bio-safety. The recommended policy. dialogue.9.1 Conclusion The CAADP Ethiopia study is conducted in the process of institutionalizing the AU/NEPAD/ CAADP with a vision and strategic framework that outlines Africa‟s pledge to pursue its commitment and duty to eradicate hunger and poverty and place the continent. The existing policies and strategies have contributed tremendously to the achievement of these targets. Its performance in recent years has been well above the average over the CAADP targets but not one to deter the country from embarking on domestically initiated policies and strategies that will lead the transformation process and the country‟s goal of independence from foreign aid. 109 . develop principles of policy efficiency. review. and the eventual eradication of poverty. iii. However. and come up with country specific CAADP agricultural programmes in order to attain: i. the Government should continue its commitment to allocate more resources to tackle these problems. African countries are expected to stocktaking their agricultural policies. The recommendations made below are based on the basic aspiration to tackle poverty and hunger as well as achieve other MDG goals with a renewed effort where the GoE. According to CAADP Framework. and control of damages emanating from climate change. strategies and programmes to achieve sustainable use of natural resources. at all levels. The CAADP agenda is to contribute to Africa‟s achievement in terms of tangible reduction. The study also revealed that the agriculture sector remains a very critical part of the future development of the Ethiopian economy. and programmes. hunger and malnutrition. NGOs. and programmes should be used to inform and influence the preparation of the next phase of the PASDEP under a common CAADP vision and strategic move. Indeed. ii. adhere to the principles of partnerships and alliances to include farmers. and civil society communities. and the allocation of 10% of the national budget to this sector starting from the SDPRP period. on a path for sustainable socio-economic growth. exploit regional complementarities and cooperation to boost growth. allocate 10% of the national budget to the agricultural sector. this does not mean that poverty and hunger are tackled to the level of expectation of the GoE and its partners. and the donor community come together and driven by the policies. strategies.

267/2002). 200/2000). meat inspection (Proclamation No. But as reported in chapter 7. A lot has to be done in this area. For example.2 Recommendations 9.1. the livestock sub-sector is not policy deficient nor is the existing policies are hindrance to its development. Individuals are changing from pastoral to non-pastoral 110 . Implementation should not be left alone to the public sector but also to the private including NGOs.2. what has come clear is that in most cases it is not the lack of policies and strategies but their implementation which is a constraint. and animal feed. During the CAADP study. a livestock Breeding Policy and Strategy has been formulated. though it is still at its final stage to be submitted to the Council of Ministries. future debates on absence or review of policies and strategies should be based on these existing policies and strategies. There are also proclamations on animal diseases and control (Proclamation No. Hence. Implementation requires appropriate institutions with the required capacity. Recently. The study found out that in general the problem in Ethiopia today is not much of a paucity of policies and strategies in the agriculture sector but that of implementation problems. 9.2. This should not imply that there is no need for detailed separate policies on animal health and animal feed. The policy documents in these areas should also include institutional mandates and responsibilities.1 General Building on the policies and strategies that are already in place: This study has identified existing policies and strategies in line with the four indigenized CAADP Ethiopia Pillars that also fit well with the present agricultural development policies and strategies of Ethiopia. What is not clearly covered is the transformation process to cope-up with alternative livelihood options in PAP areas. What is important is to recognize the dynamics of policy and strategy formulation which is conditional to national and international economic affairs changes. Besides. provision of socioeconomic infrastructure.9. In general the livestock sub-sector has lack of focus in specific policy regimes in an integrated and comprehensive setting. stakeholders pointed out that no country has policies and strategies that are exhaustive and be able to cater for all needed development interventions. CSOs. the draft Livestock Breeding Policy is not comprehensive enough to include related issues such as animal health. as well as the environment to work with traditional and customary institutions. the problem is that many do not know them in the specificity and pillar and programme oriented manner. the existing policies and strategies that are set in a grid format should be further edited and published by the concerned body and be distributed to all stakeholders.2 Specific Render adequate coverage to livestock policy: In general. CBOs and donors. Policy to cope up with the transformation process in PAP areas: Existing policy documents have clear policy positions in PAP areas on issues of voluntary settlement.1. Efficient and effective implementation of existing policies and strategies: During the discussion with various stakeholders.2. and public health (Proclamation No. identifying the existing policies was not easy in the case of the livestock and pastoralism component of the study due to relative inexplicitness of the issues in existing official documents (RDPS and PASDEP).1 Policy 9. 81/1976). Hence.

occupations be it in agriculture. This study found out in most cases integrated efforts are not well in place. The strategies should be developed.2. It is not clear on the strategy of how to utilize forest and forest products with an apt forest conservation practices. This programme can be accessible to individual farm household use through public services or undertaken by private investors through value chain development approach.2. organize and analyze information or to undertake studies.2 Strategy 9. strategy and the proclamation on forest development. It actually states that ensuring integrated development is a guiding principle for the agricultural policies and strategies. 9. 111 . Most problems are emerging by not invoking and using this integrated development approach. And this should be addressed in the soonest possible time. Review the seed policy and strategy in line with the emerging multi-country interests: Improved seed has become a strategic commodity to influence the productivity and production of the crop sub-sector not only in a given country but also continental and worldwide.1 General The strategy of integrated development approach should be practiced: RDPS and PASDEP give emphasis to the strategy of coordination and integration of managing different development tasks.2. and the enhancement of urbanization created a new interest in pastoral communities to become part of the new domestic and international economic order. Set a national strategy of Synchronized breeding: Synchronized breeding is an artificial manipulation of the reproductive cycle of animals for the purpose of fixed time breeding through AI and as a result to achieve compact calving. Particularly the recent conducive local administration setting as a result of the decentralization policy which increased the expansion of road networks. water. and urban businesses. Whether it is to be practiced by the public or private sector or both. Most of it is related on how to collect. This should be written and included in the existing strategy document. There was an attempt to harmonize the Ethiopian seed system with the East and Central Africa countries via the issuance of a regulation but which has not been finalized. commerce. Its use in the public sector is still under discussion. the country needs to have a clear strategic direction. rural electricity and telecommunication infrastructure. There is lack of adequate policy in this regard including the policy of PAP areas land administration. Currently this is reported to be practiced by some private firms. 9. This has to be revisited and the necessary policy and regulatory framework need to be in place in the soonest possible time since some of the East and Central African countries have already started to trade seed on the basis of the harmonization document they signed.2. conservation and utilization document compiled by MoARD (2007) does include statements with the term utilization.2. The system allows aligning the breeding programme with feed availability and marketing. The existing national seed policy and strategy did not have articles that direct regional and international harmonization issues. lambing or kidding.2 Specific Revise the forest and forest products utilization strategy: The policy.

and Basic Social service strategies for the PAP areas are well addressed. the PSNP which is and should be part of the national food security programme.1 General Strict use of the programme approaches both in the budget appropriation and technical situations: CAADP Ethiopia proposed programmes are either the existing programmes recognized by the Federal Government Budget Document as cost centers or new proposed programmes that are expected to become cost centers. above 10% of the CAADP target.2. how efficient and effective this appropriation is in terms of tackling the poverty and hunger problems is not measurable. 9. and the power supply programme(UEAP). and ones they are accepted any project or interventions be it internally or externally financed should be coordinated or implemented under the auspices of the programme‟s process owner. Similarly any donor initiative with the term programme may exist but with a clear understanding and integration with the national CAADP agriculture sector programmes. 112 .Set a bee forage production strategy: The current GoE policy on apiculture is to develop and expand honey production with special emphasis in irrigated areas. However. There are also projects which are not clearly shown under existing cost center programmes under the Federal Agencies. Recently the need for bee forage practice is getting importance especially with the promotion of modern hives in different agro-ecologies. PSNP remains under the Food Security Programme of the DRMFS sub-sector of MoARD. the existing animal feed strategy gives attention to the development aspect and very little on reserve. Ongoing initiatives. Traditionally honey production is common in almost all agro-ecologies that are endowed with water resources and vegetation that serve as feed for bees. It is only through this way that one may be able to see how much each Birr invested in the public sector is returning positively. This is highly associated with the annual crop cultivation practice which again is not the case in pastoral areas. integrated with fruits and agro forestry. Programme budget should be in practice. During the assessment of existing programmes it was found out that the term programme has been used for non-cost centered undertakings in order to embrace major development initiatives.3 Programmes 9. Traditional feed reserve practices exist mostly in non-pastoral areas. Livelihood and Asset Building. For example. Review the existing animal feed strategy in line with PAP areas situations and conditions: The recent increased incidence of drought. for example. For example.2. Under PASDEP.3. Though the budgetary appropriation to the agriculture sector is on rise. the Ethiopian Commodity Exchange (ECX) project. particularly in PAP areas has exacerbated the problem of animal feed and is necessitating for a strategic intervention in feed reserve both in natural and commercial aspects. All these are in place without a strategy on bee forage. or the roads programme. for example the SWG RED&FS programmes should be mainstreamed in the proposed CAADP agriculture sector programmes. Technically all these should be embraced with a well set development programmes framework and be institutionalized where they fit well. more specifically ERTTP. A strategy that embrace the reserve aspect and focus in on PAP areas should be developed. The strategy should be based on the emerging principle of disaster risk management rather than addressing emergency situation.

the issue should be accorded attention and programme owners should set appropriate monitoring and evaluation mechanisms to efficiently and effectively implement existing programmes with available resources. the consultants‟ inquiry with the concerned officials in MoFED revealed that this matter has not been yet considered and for some years to come the existing cost centre programmes registered by MoFED remain the basis of budget appropriation. only six out of the nine MoARD suggested programmes are directly aligned with the CAADP pillars (see Table 9.Efficient and effective implementation of existing programmes: During the CAADP Ethiopia study it was observed that there are problems of properly implementing existing programmes with existing institutions. However. Again this leads to a problem when further examined according to the CAADP principles and pillar configurations. the ongoing BPR may resolve this problem. This is mostly a question of achieving achievable results using available resources. project formulation and implementation. physical.3). Hence. Table 9. As it was explained in chapter six. in the context of budget allocation and expenditure analysis the national system refers to a combination of the Federal and Regional State Governments budget appropriation and use. planning and programming. existing but modified and new proposed programmes. while Regional State Governments become partners in the implementation. trade and agricultural research. Secondly.3.2 Recommended CAADP Ethiopia programmes The CAADP Ethiopia programmes framework combines existing. Besides. where the Federal government gives annual subsidy to the regions. In any way. the agricultural investment support. Perhaps. The relationships often are via the subsidy arrangements. the understanding is that given their constitutional rights the Federal and Regional State Governments can plan on various development programmes to be financed through their established budgetary frameworks. Here. 9. there are large scale development undertakings whereby the Federal government undertakes the responsibility of the financial arrangements.2.3. 113 . and hence not shown in Table 9. This study has reduced the existing 56 cost center programmes to 41 inclusive of modified and new ones. During the study period it was found out that the MoARD is in the process of configuring the different activities within in the sector into nine directorates cum programmes (Table 9. including borrowing from international financial institutions. and financial resources.2). First. the MoARD suggested programmes do not give room to include the CAADP programme components related to rural infrastructure. According to the explanations of some of the Directors within MoARD these programmes will become cost centers recognized and accepted by MoFED. and procurement. These include irrigation and road projects among others. It is important to note again the notion of national programmes. and available human.3. For example. finance and property administration programmes are not easily aligned with the CAADP pillars.1 presents the proposed CAADP Ethiopia national Programmes by pillar areas. such as the World Bank (WB) and African Development Bank (AfDB). in this situation the way to accommodate the MoARD suggestion is as indicated in Table 9.

Table 9. root and tubers and fruits CR6: Spices and stimulants CR7: Essential oils. Enhance FD1: Crop development food security and FD2: Livestock and fishery resources improve disaster risk FD3: Animal and plant health services and regulatory management FD4: Food security FD5: Disaster Risk Management Pillar IV: Improve CR1: Cereals the agricultural CR2: Pulses research and CR3: Oilseeds extension system CR4: Fiber CR5: Vegetables. RI2: Universal Electrification Access Programme market access and RI3: Rural ICT network89 trade capacities TD1: WTO accession and implementation TD2: Foreign investment promotion/facilitation MM1: Agricultural Inputs Supply and Marketing MM2: Agricultural Inputs and products Quality Control and standards MM3: Warehouse Receipt and Credit Facility MM4: Agricultural Products Marketing Promotion MM5: Agricultural Marketing Information System MM6: Cooperative Marketing MM7: Rural-Urban Linkage MM8: Agriculture and Food Policy Research Pillar III.1. and utilization utilization Pillar II: Improve RI1: Ethiopian Rural Travel And Transport Sub-Programme rural infrastructure. conservation .1 CAADP Ethiopia National Agriculture Sector programmes Ethiopia CAADP Programme Pillar Pillar I: Improve NR1: Land administration and planning natural resources NR2: Integrated Watershed management management and NR3: Forest development.The above mentioned explicit problems associated with the suggested MoARD programmes as well as the plausible variations that may emerge if each regional state takes their own actions of configuring the agricultural activities in different programs made the CAADP consultants to stick to the CAADP Ethiopia national programmes identified and listed in Table 9. medicinal plants and bio-energy CR8: Agricultural biotechnology and Plant protection CR9: Agricultural mechanization SW1: Soil and water management FR1: Forest resources improvement and protection SE1: Socio-economic and extension research 89 Including agri-net and woreda net information and communication technology (ICT) 114 .

in the context of the proposed CAADP Ethiopia programmes. June 1-5. and the programmes will be the cost centers whereby any other projects and interventions financed by treasury or external sources will be registered under them. the rationale behind the notion of national programme is that. A programme can be implemented by one or more than one institution at Federal and/or Regional State governments. 2009 it was mentioned that TVET may become by itself a programme.LR1: Dairy and Meat LR2: Poultry LR3: Fishery and aquaculture LR4: Camel research and development LR5: Range and water resources development LR6: Apiculture and silkworm LR7: Animal health AE1: Agricultural extension and TVET90 The proposed CAADP Ethiopia national programmes are referred as national with the assumption that all stakeholders will be abided with the CAADP Ethiopia framework. 115 . 90 During the CAADP/AGP Joint Workshop held at Adama German Hotel-Nazreth. the Federal or Regional State governments‟ level actors in the agriculture sector. a programme may contain elements of policy and strategy that are broad based and shared with other programmes. Put differently. Monitoring and Evaluation (PM&E) purposes.1 while the solicitation of funds can still take the existing approach explained above. Besides. are to conceive development programmes as indicated in Table 9. Each programme can have several subprogrammes further classified by interventions and activities as deemed necessary for Planning.

2 Programme configuration under discussion in MoARD Sr.3: Agriculture Sector programmes Configuration Comparison: CAADP Vs MOARD Suggetion Ethiopia CAADP Programme Sub-Programme Pillar Pillar I: Improve Natural NR1: Land administration and planning natural resources Resources NR2: Integrated Watershed management management and Management NR3: Forest development. No Directorate/programme description 1 Animal and plant health regulatory 2 Agricultural extension 3 Agricultural investment support 4 Agricultural marketing 5 Natural resources management 6 Early warning and response 7 Food security coordination 8 Planning and programming 9 Procurment. and utilization utilization Pillar II: Improve rural infrastructure. Enhance food security and improve disaster risk management Pillar IV: Improve the agricultural research and extension system Animal and plant health services and regulator Early warning and response Food security Agricultural extension service MM1: Agricultural Inputs Supply and Marketing MM2: Agricultural Inputs and products Quality Control and standards MM3: Warehouse Receipt and Credit Facility MM4: Agricultural Products Marketing Promotion MM5: Agricultural Marketing Information System MM6: Cooperative Marketing MM7: Rural-Urban Linkage MM8: Agriculture and Food Marketing and Price Policy Research FD3: Animal and plant health services and regulatory FD5: Disaster Risk Management FD4: Food security AE1: Agricultural extension and TVET 116 . finance. conservation . and property administration Table 9. market access and trade capacities Agricultural Marketing Pillar III.Table 9.

expansion Pillar II and growth • In MM5-Public private partnership (PPP) • In MM6-Micro and small scale enterprises banks.2. the ToR of this study requires the identification of national programmes or components of a programme which should be scaled up. In this stage. and Southern Nations. Land certification: It is expected to continue as one of the interventions within the land Administration and planning national programme. Tigray. Currently this service is a cost center by itself but in the CAADP Ethiopia framework it is recommended to be part of the newly proposed agricultural extension and ATVET national programme. certification • In NR2.3 million households out of a total target of 13 million rural households in the four major Regional States–Amhara.7 million households and to scale up for a successful 1 million households land administration 91 The notion of scale-up in this study takes the notion of up-scaling which is used in a recent study by SNV (2008).2 programmes or components of a programme to be scaled up by pillar Pillars Scale-up91 • In NR1-Sustainable land administration and use specifically land Pillar I. Through this process land certificates were issued to 6.Small scale irrigation development • In MM4-Support the commercial agriculture emergence. known as the first stage certification process. micro-finance institutions. 117 . Table 9. and cooperative banks in pastoral and agro-pastoral areas Pillar III. For example.seed production • In FD3-seed regulatory • In AE1: – Management of acid and saline soils – Management of Vertisol Livestock • In FD2 and AE1-Artificial Insemination (AI) service As it has been briefly indicated above scaling up refers to expand or intensify the implementation of a particular programme or an intervention within a programme at a national level or to undertake the implementation that was under a particular sector in a multi-sectoral approach. farmers receive temporary certificates with no geo-referencing or mapping of land parcels. the Regional States began a process of providing “simple” temporary landholding certificates. Table 9. and Peoples (SNNP).up In addition to identifying CAADP Ethiopia national programmes. This notion has three dimensions in up-scaling a programme: from regional to national coverage. The Government‟s target is to provide Stage 1 certificates to the remaining 6.3 Scale. inclusion of other sectors and intensifying support for the sectors. In order to improve land tenure security.9.2 presents the programmes to be scaled up on the basis of the four indigenized Ethiopia CAADP pillars. one of the interventions identified for scaling up is the AI service.3. Oromia. Crop • In FD1. Nationalities.

expansion and growth. This is also recommended as one of the CAADP scaling up intervention. with geo-referencing and mapping of individual land parcels. while what was started in transforming small holders traditional agriculture towards modern market oriented agriculture. This has to be scaled up and if possible by encouraging the Mobile Banking System with an initial experience exchange effort with that of Kenyan Commercial Bank.pilot issuing permanent certificates. At present there is an extensive work in the area of integrated watershed management in terms of small-scale irrigation scheme development. Public private partnership (PPP) should be scaled up and strengthened with prior set guidelines for agricultural investment areas and the promotion of the same either as private or joint venture investment undertakings. hence. Scale up micro and small scale enterprises banks. Agriculture is still far behind from being modern and mechanized. donors and CBOs and all should be partners in the context of clearly established and institutionalized agricultural development programmes of the country.and medium. micro-finance institutions. financial institutions that cater the pastoral need. and cooperative banks in pastoral and agro-pastoral areas: One important area of intervention that needs to be scaled up in all areas but especially in pastoral areas is the financial system. and cooperative banks). agricultural practices are diversifying and as a result the farmers‟ income and their living standard are improving. is attained mainly because of governments increased spending in the biological and chemical (seed and fertilizer) and institutional support services that cater for stakeholders‟ agriculture of the country. rural financial institutions have become operational in many parts of rural Ethiopia. . above 10% annual growth rate of AGDP. CSOs. In areas where such schemes have been promoted. The strategy is in place to expand rural financing systems (banks. Large. At present since there is a favorable policy on the financial system. However. are yet to be established. This being a superb achievement for additional gains in performance large-scale commercial agriculture emergence. 118 . Construction of irrigation schemes could be multi-institutional. This needs more support and scaling up using appropriate water harvesting technologies including the promotion and supply of regular and treadle pumps as appropriate. whose delivery system is geared to the pastoral way of life and community structure of the people living in the pastoral areas. and growth should be enhanced via appropriate support. micro-finance institutions. The high growth performance of the agriculture sector. Scale up the support for commercial agriculture emergence.scale irrigation schemes are the responsibilities of MoWR and small-scale irrigation schemes are that of BOWRs. Small-scale irrigation development: MoARD and BoARDs are expected to engage in all size irrigation schemes to promote efficient and effective use of water for agriculture purposes. aimed at catering the needs of micro and small scales enterprises as well as small resources poor farmers. supports to large-scale commercial agriculture with investment support packages similar to what has been done in the flower industry should be given for individuals coming up with sound and feasible projects both in annual and perennial crops production which may cater the domestic and export market. own and use the necessary capital tools. specifically by availing this sub-sector to procure. The PPP strengthening strategy should be inclusive of NGOs.

Scaling up the AI service: Both RDPS and PASDEP state that livestock productivity and production can be increased through breed improvement. Although the services in this regard has to continue with increased coverage. particularly hybrids. The nation is losing previously cultivable land due to the former and it is not exploiting its potential in agriculture in the latter. But at present there is one national AI center in Addis Ababa with sub-stations at Assela (Oromiya). while the former is a simple technology which is currently practiced in the country. During the discussions with various stakeholders‟ malpractices in the improved seed business seems to be rampant and hence needs urgent scaled up intervention. the establishment of ATVET and FTCs has helped for wider adaptation of improved biological and chemical technologies. The latter requires skilled manpower and expensive equipment.Seed production and regulatory activities: These are components of the crop development and the animal and plant health regulatory services. saline soils. Given the rising demand for the AI service it seems producing and supplying only from one national center is becoming a constraint. 9. the Regions on the other hand. there is a need to institutionalize and promote land administration at the Federal level. processing and distribution. Currently in case of maize it is only the Bako ARC of ORARI which is producing the basic seed of hybrid maize and distributing the same throughout the country. and Vertisol: In recent years the Ethiopian Agricultural Extension System both at Federal and Regional level is expanding with the promotion of new packages. This gap needs to be narrowed with an aggressive seed production scale up interventions that promote the production both in the public and private sector including the smallholders. and animal health care. Hence the capacity of the sub-centers has to be scaled up to a level of full-fledged regional AI centers capable of semen collection. respectively. Besides. the scaled up interventions in these two intervention areas is highly timely. However.4 Institution Need to institutionalize and promote land administration. Hence. Parallel to this the government has to scale up its seed regulatory activities. feed resources development. and Mekelle (Tigray). Furthermore such interventions should be part of the integrated watershed management approach. This has to change with a well conceived and planned scale up intervention. have had varying approaches to providing for the institutional set-up for this purpose. Bahir Dar (Amhara Regional State). Breed improvement can be achieved through selection and cross-breeding. The technological instruments for breed improvement include AI and embryo transfer. Hence. One of the factors contributing to existing shortage is the limitations of producing basic seeds. As reported in section five of this report there is no significant rural land administration and utilization activity at the Federal level. However. semen is only produced at the national AI center and the sub-centers get their supplies from this center. Management of acid. as well as management of Vertisol. special emphasis has to be rendered for scaling up of the management of acid and saline soils. Wolayita (SNNPRS). 119 .2. As it was reported in the earlier chapter there is a huge excess demand for improved seed.

Federal Ministries and Agencies. Regional State Governments Bureaus and Agencies. and RED&FS. But all NGOs are not also a member of this association. Regional or for that matter between Regional and Woreda levels. Hence. quality control and the integration and working relationship among public and private research. There is hardly a systematized and institutionalized information exchange between Federal. it is timely to review the RE&D system putting the agro-ecology and integrated approach into perspective. the information flow at all levels is based on personal relationship. Donor communities have their own way of working amongst themselves. At Federal level the linkages among Ministries and Agencies are smooth but mostly informal.Establish a Systematized Information exchange: Exchange of information among federal and regional institutions is one of the major weak linkages. all these development partners need to work under a known procedure and system if they all are interested to contribute to the development of Ethiopia‟s ARD sector. In cognizant of this. Besides. development and multiplication agencies have become vital to facilitate the production and supply of improved seeds to the farming communities. NGOs. Specifically the livestock sub-sector has suffered from inadequate technology generation and transfer. but again the differences and similarities are not clearly set. CBOs. yet research has not been able to sufficiently address the problems and constraints of the agriculture sector. Some NGOs may join these groups but at large the NGOs have also their own association such as CRDA. this relationship falls short of the desired level of integration and coordination and as a result there is lack of adequate quality control measure. in the existing RE&D system the pastoral and agro pastoral issues are not adequately covered. During discussions with different stakeholders. In general. Some NGOs are being blamed for not having coordinated development interventions even in a given woreda. There are hardly formal linkages that are governed with agreed and signed working procedures among these partners. CSOs. Formalize Linkages among Partners: In the agriculture sector the partners of development are several. Hence. say in the established DAG framework. Furthermore. information exchange and documentation need attention. However. measure has to be taken to establish a systematized information exchange that is footed in the modern ICT system. and bilateral and multi-lateral donors. Such groups as well as Federal and Regional State governments‟ have no formal linkage with CSOs. The influence of CSOs in Ethiopia‟s agriculture and rural development policy formation and implementation is insignificant and requires stimulation. ESE is at a cross road of being a profitable parastatal and a non-profit making development 120 . Linkage between MoARD and MoTI in the area of export promotion. the system is not giving a fair competitive ground for ESE. Extension and Development (RE&D) System: In spite of governments support and increasingly funded agricultural research. Federal and regional level activities are not also systematically linked and institutionalized although there is no magnificently observed problem that has jeopardized the implementation of development interventions. Improved seed as a national strategic agricultural input needs emphasis with its complexity starting from production up to marketing distribution and use. Inadequate vertical and horizontal collaboration among research institutes and weak research extension farmers‟ linkage tended to the woreda level appears to be some of the institutional challenges contributing to the lack of effectiveness in the RE&D chain. Revisit the Status of the Ethiopian Seed system. and excess demand for improved seeds. Review the Research.

While those responsible to construct medium and large scale irrigation infrastructure are MoWR and BoWR.supporting enterprise of the government functioning with controlled prices and protected labour. MoWR. specifically the newly organized Seed Association. standard and quality control institutes: Agricultural inputs quarantine. Smoothen the constructed irrigation facilities transfer to developers and end users: The linkage between MoARD. and the special coordination Offices of the PAP areas. Review the institutional arrangement to coordinate PAP areas development interventions: The Government of Ethiopia has given a high priority for the wholestic development of the PAP areas. This is manifested through the establishment of the Pastoral Standing Committee in the House of Representatives. Each institute appears to take its own course of action. the linkage between the ESE and the emerging Regional SEs like the one of Oromia need to be clear not only in the marketing sphere but also in the use of sole basic and pre-basic seed suppliers such as Bako ARC in the case of hybrid maize. However. standard and quality issues. BoARD and BoWR on irrigation infrastructure construction and use needs a reexamination. There is no harm if ECX use the warehouses for commodities that are traded through the exchange system. Overall. particularly those established within the agriculture sector should come in a formal linked institutional arrangement in order to address national issues of agricultural inputs and outputs quarantine. Universities. Private input producers and traders. Besides. Strengthen linkage among quarantine. Revenue and Customs Authority. The reexamination should include the assessment and recommendation of how to repair and maintain existing facilities. They should be receiving the service adequately and timely to keep their produce in the warehouse system even if they are not trading through the exchange facility. Currently. the public. and Inter-Ministerial Board under the MoFA.e. the pastoral institutions located in the different Federal institutions are not communicating systematically with strong legal base. NGOs. standard and quality control both in crop and livestock agriculture calls for a strong linkage among relevant institutions such MoARD‟s Animal and Plant Health Regulatory Directorate. there is no clear and institutionalized linkage between them and MoARD and BoARD in terms of transfer of the physical infrastructure and the work to be done jointly till the actual targeted beneficiaries are in use of the facility. the system should be reassessed in terms of organizational and relational aspects so that all actors can work closely i. administration etc) for the purpose of development in the PAP areas. development partners as well as those enterprises working in the seed business but located in neighboring countries. CSOs. As appropriate CSOs. Agricultural Marketing Directorate. Review the use of the warehouses under the warehouse receipt and credit programme by ECX: Warehouse receipt and credit and the ECX are timely undertakings but the linkage between the two in practices needs reexamination. this should not deter the focus of using the warehouse receipt and credit system for the many small holders who are subject to unreasonable price deals at times of harvest but critical cash needs. private sector dealers. There is a gap in terms of having a legalized body which have the mandate to mobilize internal and external resources (fund) and align indigenous traditional institutions with formal institutions (research centers. on pastoral affairs there is a need to reexamine the role of coordination offices in various ministries and that of the technical 121 . In general.

flood. It is also important to note the deficiencies that exist at ATVET and FTC levels. furniture and other facilities. working premises. 122 . However. FTCs still need additional capacity strengthening interventions. and strengthening both non mobile and mobile veterinary services. Render special focus to strengthen the market infrastructure of PAP products: In general. networked with PAP structure. the pastoralists engage in illicit cross. and the animals lose weight by the time they reach the secondary market. These are two core institutional arrangements that have contributed positively to the recent achievements of high growth rate in the agriculture sector. specifically at woreda levels. Recently the government also commissioned a study to re-orient ATVETs from the training of DAs to a broader agriculture sector support giving institutions in a multi dimensional way. machinery. They rarely have furniture and the minimum facility to provide training to farmers.committee and also the institutional arrangements to efficiently and effectively implement development interventions designed at Federal and Regional State Governments levels with a clear guideline on the implementation of projects financed with internal and external sources. Tracking routes and resting areas are not well developed in the pastoral areas. equipment. Therefore. capacity gap remains still as a serious one in its entire dimension. human resources. in terms of marketing there are challenges that impede the smooth transaction of pastoral commodities. Same is true in terms of reorienting and strengthening ATVETs to produce skilled and trained agriculturalists as well as serve as a center of promotion for improved agricultural services. At Regional and Federal levels. quarantine and inspection stations. Because of these factors and additional factors like ban of the livestock import (Trade ban). equipment and furniture.e. Enhance the capacity development interventions: Despite the GoE efforts to build the capacity of Federal and Regional institutions92. and natural calamities (drought. Illicit cross-border trade could be minimized by strengthening the domestic and foreign market system through the establishment of export abattoirs. The animals to be exported are brought from the remotest part of the pastoral areas. The terms of trade between livestock and grain need to be stabilized to achieve pastoral food security.border trading. The problem is even severe at the grass root. i. The other challenge is the lack of market information and networks on the comparative advantage of the pastoral commodities. pastoral grain and feed reserve mechanism need to be created. 92 The GoE has gone further to the extent of setting a separate Ministry of Capacity Building. in most research and training institutes there are problems of getting adequate trained and educated staff. these institutions‟ requirements in terms of human resources and facilities are wanting. Most of them have no adequate and appropriate offices. with the aim of stabilizing prices of the livestock and grain commodities during hard times. etc). usually by trekking. It has been noted that the good intentions of BPR are being challenged by the practical absence of the needed capacity in Federal and Regional program implementing institutions.

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