Wollo UNIVERSITY

College OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

ECONOMIC SIGNIFICANCE OF Irrigation

Agriculture IN ETHIOPIA
(The CASE OF UPPER AWASH Basin)

Submitted to:
MARSHAL NIGUSSIE (Ato)
(Senior ESSAY Advisor)

By GIZACHEW GETASEW

MAY, 2012
 ACKNOWLEDGEMENT

Finally, I would like to thank my family for their continuous financial and moral
support throughout my stay in campus.

Table of Contents
First and most I would like to thank almighty ALLAH for giving the strength and
capacity to reach this stage.
Next ,I extend my deepest gratitude to my advisor MARSHAL NEGUSSIE who has
scarified his time to review my paper and give me constructive comments and
criticisms, which have contributed positively to the final stage of the paper
Page
1. INTRODUCTION …………………………………………………… 1
1.1. Background ……………………………………………………………... 1
1.2. Statement of The Problem ……………………………………………… 2
1.3. Objective Of The Study ………………………………………………… 4
1.4. Significance Of The Study ……………………………………………... 5

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1.5. Methodology ……………………………………………………………. 5
1.6. Scope and Limitation …………………………………………………… 6
1.7. Organization Of the paper ……………………………………………… 6
2. Literature Review ……………………………………………………. 7
2.1. Definitions Of Irrigation ………………………………………………... 7
2.2. Over view of irrigation in Ethiopia …………………………………….. 8
2.3. Theoretical Review Of Irrigation ……………………………………….
2.3.1. Types of Irrigation Methods ………………………………….…... 11
2.3.2. The Role Of Irrigation Development ………….………………..... 11
2.3.3. Significance Of Irrigation for Food Production ………..………… 12
2.3.4. Employment Contribution of Irrigation …………………………. 13
2.3.5. Irrigation and Productivity of Modern Agricultural Impute…….. 14
2.3.6. Irrigation and Environment ……………………………………... 14
2.3.7Empirical Review of irrigation …………………………………… 15

2.4 The Problem of Irrigation Development ………………………………. 16

2.4.1. Salinity …………………………………………………………... 16
2.4.2. Health Impact …………………………………………………… 17
2.4.3. Depletion of Underground Aquifers ……………………………. 17
2.4.4 Other Problems of Irrigation ……………………………………. 18

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3. Irrigation Development in Ethiopia …………………………… 19
3.1. Historical development of irrigation …………………………………... 19
3.2. Economic benefits & some country's Experience …. 20
…………………..
3.3. Irrigation potential, Actual development and spatial distribution ……... 21
3.3.1. Irrigation Potential & Actual Development in Ethiopia …………. 21
3.3.2. Spatial Distribution ………………………………………………. 23
3.4. Problems & prospective for agricultural water resource management ... 26
3.4.1. Constraints ………………………………………………………... 26
3.4.2. Prospective in the Future for Agricultural water resource 2
management ………………….……………………………..……. 7
4. Upper Awash Major Irrigation Project and Contribution
to the Economy ……………………………………………………. 30
4.1. Description of the study area ……………………………………….…. 30
4.1.1. Agro climatologic conditions …………………………………… 30
4.2. Major irrigation project of the upper valley ………….………………... 32
4.3. Crop Production of the valley …………………..……………………... 33
4.3.1. Sugar Production ………………………………………………... 34
4.3.2. Horticultures …………………………………………………….. 34
4.3.3. Tobacco production ……………………………………………... 34
4.4. Contribution of the Basin 35
……………………………………………...
4.4.1. Increase in output ……………………………………………….. 35
4.4.2..Revenue generation to government ……………………………... 38
5. Conclusion, Recommendation and Policy Implication ……. 40
5.1. Conclusion ……………………………..…………………………….. 40
5.2. Recommendation and Policy Implication ……………..……………… 41
Bibliography ……………………………………………………………... 42
Annex 1: Planned Growth of Irrigated Agriculture in Ethiopia ………….. 45

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 LIST OF TABLES
PAGE
Table 2.1. Irrigation system based on command area ……………………………. 8
Table 2.2. Yield fertilizer with & without irrigation ……………………………... 15
Table 3.1. Catchments area & average annual discharge ………………………… 22
Table 3.2. Irrigation potential of Ethiopia ………………………………………... 23
Table 3.3. Economical irrigation potential and irrigated area by river basin …….. 24
Table 3.4. Total Irrigation Potential and amount utilized in Ethiopia by region … 25
Table 3.5. Target of irrigation development Program (2002-2016) ……………… 28
Table 4.1. Irrigation Development area (ha) in Awash valley …………………… 30
Table 4.2. Existing irrigation farms in the upper Awash Basin ………………….. 31
Table 4.3. Major existing potential of net irrigable area in upper valley ………… 33
Table 4.4. Major crops grown and extent of land ………………………………... 33
Table 4.5. Volume of export by major commercial crops in metric ton …………. 36
Table 4.6. The growth rate of output of the upper Awash agro industry Enterprise 37
Table 4.7. Production growth trend of upper Agro Industries of the Awash valley 38
Table 4.8. Total Revenue generated by the Wonji- Shoa sugar factory to the state 39

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ACRONYMS AND ABREVIATIONS

ASL: Above Sea Level

DCCP: Disaster Prevention and Preparedness Commission
ECA: Economic Commission for Africa
EPA: Environmental Protection Authority
ESC: Ethiopian Sugar Corporation
EVDA: Ethiopian Valley Development Authority
EWWCA: Ethiopian water work construction Authority
FAO: Food and Agriculture Organization
GDP: Gross Domestic Product
GNP: Gross National Product
HA: hectare
IFAD: International Food and Agricultural Development
IWWIA: International Water resource Management Institute
JIID: Japanese Institute of Irrigation Development
Kg: Kilogram
MEDaC: Ministry of Economic Development and Cooperation
MOA: Ministry of Agriculture
MOH: Ministry of Health
MoWR: Ministry of water Resource
NP: News Paper
OWDB: Oromia Water Development Bereau
SNNP: South Nation and Nationality People
UNICEF: United Nation International Children Fund
WARDA: Water Resource Development Authority
WB: World Bank

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 CHAPTER ONE
INTRODUCTION

1.1. Background

Ethiopia has a large water resource, which is developed, only to a marginal extent. With an
urgent need to develop the economy, water resource development might be the tope
priority for the future specifically emphasizing of resource conservation, pollution control
and a more rational use of water.

The country is known to be the water tower in the horn of Africa, supplying water to
Somalia, Sudan and the distant Egypt. Ethiopia is endowed with 12 major basins with
annual flow of 122.19 billion m3 (MoWR, 2002). Out of these basins, eight of them are
trans-boundary crossing the boarder to neighboring countries. About 80-90% of the total
discharge comes from Abbay, Tekeze, Baro- Akobo and Omo-ghibe basins. The rest
originates from the east and central river basins

However, only 3% remain in the country while the rest is lost to the lowlands of
neighboring countries. It is estimated that 54.4 billion m 3 of surface run-off and 2.6 billion
m3 of ground water could be technically developed for consumptive purposes. The actual
consumption from surface water is 2.5 billion m 3 per year, is only 4.6% of surface water
has development potential. (Zewdi A. 2000)

Although a number of interrelated factors can be mentioned behind deficiency of food

supply in Ethiopia, dependency the on rain-fed Agriculture is one of those in the front
position. This type of Agriculture has made the country vulnerable to the effect of
recurrent drought. Under rain-fed agriculture like Ethiopia no body denies that drought
result crop failure, which in turn brings shortfall in food supply, (Ethiopian Herald, 23
Nov.2002).

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Ethiopia has an irrigable land of 3.3 million hectares of which only about 5% is developed,
with 55% of the developed area being traditional irrigation (MoWR,of 2001). This shows
that not only there is a wide gap between potential and actual area of land developed but
also the water resource base has made little contribution toward the development of
irrigated agriculture.

Out of the meager utilization of our water potential, the Awash River has been the most
intensively developed & utilized for power generation & irrigation till recently. Who
covers a total area of 112,696 Km2 and has an irrigation potential of 205,400 hectares of
land. Together with its strategic location, good facilities & availability of land & water
resources, it is the most intensively studied and developed basin for large scale irrigation
Awash is also the largest development center for commercial agriculture that provides
revenue to the government and foreign exchange to the economy at large

1.2. Statement of the Problem

Rain-fed agriculture has been unable to meet the food requirement of Ethiopian
population. The annual per capita consumption of cereals and pulses in the country is 140
kg (Annex -1) compared to the UNICEF standard of 240 kg and that of the average
developing countries of 230 kg. (Zewdie A.2000).

Ethiopia is one of the least developed countries of the world with US$ 380 GNP per capita,
compared to other low-income countries (US$1165) (FY, 2010). Agriculture is the
dominant sector contributing 40% GDP, 75% of the export and 85% of the total
employment. Yet, the agricultural productivity is very low making the nation one of the
mast food insecure countries of the world. In the last two decades in particular, Ethiopia
has been the regular recipient of food aid from international community. An estimate made
in 1995/96 showed that about 52% of the population is food insecure facing chronic &
recurring disaster- induced food shortage (Meselech, 2002)

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On the other hand it is noted that the country is highly endowed with plenty of water
resources, which flows across the boarders being carried by the trans-boundary river to the
neighboring countries. Although there is no defined researched data as yet, preliminary
studies & professional estimates indicated that the country has annual surface run-off of
close to 122 billion m3 of water excluding ground water (MoWR 2001)

Lack of adequate rainfall combined with variability in the on set and duration of rains has
remained a major threat to agricultural production in Ethiopia. The fact that Ethiopia
expect dry condition for agriculture in perhaps three years out of every ten under scores the
formidable challenge facing the agriculture sector. A strategy to cope with the problems
should be based on multidimensional consideration including the promotion of
conservation based farming system, introduction of an effective land use plans, a secure
tenure system & expansion of irrigated farming. (Befekadu & Berehanu 1999)

Even though considerable increases in production can be attained through intensification of

the rain -fed agriculture, it is bound to fall short of the ever-increasing population. (Annex-
1) shows the required growth of irrigated agriculture in Ethiopia by decade. It can be seen
that although the production from rain fed agriculture is expected to grow from 7 million
tons in 1990 to 18 million tons by 2040, an additional 34 million tons will be required to
meet the demand, which have to come from irrigation sub sector. In order to achieve this
objective nearly all of the 3.7 million hectare irrigable area available in the country has to
be developed by 2040. A total of about 40 billion m 3 of water has been allocated for this
purpose. (Zewdie A.2001).

Hence, irrigation is taken as one part of the solution for the prevailing situations since it
permits more than one harvest a year & provides a year-out employment opportunity for a
large number of people. According to MoWR, (2002) further one million hectare of
irrigated land has to be developed with the next 15 years to change the present product
variability, though it is still unsustainable (Gulilat,and MoWR 2002)

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In Ethiopia, the development of large-scale irrigation project goes away back 4 decades.
But it has been practiced on small-scale bases for many years. In terms of such
development, the country open up her eyes in the expansion of commercial agriculture on
the Awash Basin. The development on such schemes has been a great help to the national
economy. The productions of major commercial crops such as cotton, sugar, fruit etc have
been the mainstay of the economy. Eight of the sugar factories of the country are located in
this basin (EVDSA/HARLCROW, 2002)

1.3. Objective Of The Study

Ethiopia is endowed with large water resources that can be used to the horn of Africa. But,
due to the least-developed water resource for irrigation, its utilization is very low.

This study is primarily designed to show the contribution of irrigation agriculture to the
economy of Ethiopia in general with particular emphasis of upper-Awash projects. Finally,
the paper will suggest some possible solution and recommendation.

Specific Objectives

 To Asses the potential of water resource utilization for Irrigation

agriculture

 To Discuss the current status of irrigation development in Ethiopia

 To Identify the advantage and disadvantage of irrigation Agriculture

especially where rain fall is inadequate and rain-fed agriculture is a problem
due to climatic fluctuation

 To indicate Irrigation is the best solution for drought affected area to

achieve food security

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  To recommend for planners & policy makers that natural resource
utilization such as Irrigation water resources as a means for poverty
reduction.

1.4. Significance Of The Study

The paper presents economic role of irrigation to Ethiopia in a general manner with due
emphasis of upper Awash, since the river gave substantial benefit to the agriculture sector
and agro-industrial development of Ethiopia. In addition to this, the awash basin is an
example of irrigated commercial and modern mechanized agriculture for efficient
utilization of all other Ethiopian water resource.

1.5. Scope and Limitation

The paper will mainly focus on positive and negative consequence of irrigation agriculture
and it’s out come towards the economy. In addition to this, it explains the actual utilization
& potential of Ethiopian water resource for irrigation agriculture.

However, the reliance on secondary data source may limit the scope to the available
information in addition to time and financial constraints.

1.6.Organization Of the paper

The paper is organized in to six chapters. The first chapter discusses, introduction,
background, statement of the problem, objective, significance, scope & limitation and
methodology applied. The second chapter, Literature review, deals with definitions and
various related literatures done in the area of irrigation. The third chapter methodology
The fourth chapter deals with irrigation in Ethiopia. It explains the irrigation potential
and its benefit to Ethiopia The five chapter discuss the major Upper Awash irrigation

5
project and its contribution to the economy of Ethiopia. The last chapter gives conclusion
and some possible recommendation.

CHAPTER TWO
LITERATURE REVIEW

2.1. Definitions Of Irrigation

Different scholars have defined irrigation in various ways. It can be defined as:

1. Irrigation is the artificial application of water to soil for the purpose of crop
production. Irrigation water is supplied to supplement the water available from
rainfall and the contribution to the soil moisture from ground water. In many areas
of the world the amount and timing of rainfall are not adequate to meet the
moisture requirements of crops so that irrigation is essential to raise crops
necessary to meet the need of food production. Irrigation water may be applied to
crop by:
 Flooding it on the field surface

6
  Applying beneath the soil surface
 Spraying it under pressure
 Applying it in drops.
The water supply, the type of soil, the topography of land and crop to be irrigated
determine the correct method of irrigation to be used. Whatever the method of
irrigation, it is necessary to design the system for the most efficient use of water
resources. (A.M.Michel, 2000)

2. According to FAO (2001), irrigation and drainage are processes that aims at the
maintenance of soil moisture with in the range require for optimum plant growth.
Broadly, it can be defined as the practice of applying water to the soil to
supplement natural rainfall or flooding and there by provide more moisture for
plant growth.

3. To Braver (2000), Irrigation is the process of supplying water to cultivated plants

in order to secure sufficient moisture during the entire cultivation processing in
additions to rainfall.

4. Ruther burg (1999) also defined irrigation as; those practices that are adapted to
supply water to an area where crops are grown, so as to reduce the length and
frequency of the periods in which lack of moisture is the limiting factor of plant
growth.

2.2. Over view of irrigation in Ethiopia

Ethiopia's agriculture is predominantly rain-fed and it needs to be augmented by irrigation

to improve food production (MEDaC, 1999). In Ethiopia, irrigation schemes are classified
in to three based on command area (Table 2.1 below)

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 Table 2.1: Irrigation system based on command area

Category Command area

Small-Scale Less than 2,000 Hectares
Medium- scale 2,000- 3000 Hectares
Large-scale Above 3,000 Hectares
Sources: MoWR 2001

Small- Scale Schemes:

Small- Scale schemes are include those covering an irrigated area of less than 2,000
hectares and growing mainly subsistence crops. Such schemes serve mostly to supplement
and provide a greater degree of security to peasant farmer rain-fed agriculture.

According to Agnew & Anderson (2002), such types of schemes are environmentally
friendly in such a way that they reduce impact on land use and ecosystems. It enables the
farmer to combine their traditional knowledge with modern technology. MOA builds
small-scale schemes in Ethiopia with responsibility to the development to the peasant.
Under the current situation, regional government are also responsible to such schemes

Medium-scale schemes

The medium-scale schemes cover an area between 2000-3000 hectares and producing a
mix of subsistence and cash crops. Located in areas, which are already extensively
cultivated, they serve to provide supplementary irrigation and to allow production of a
second crop.
For medium-scale schemes, the larger work such as the diversion structures & main canals
will be contracted by Ethiopian water work construction Authority (EWWCA). The
Ministry of Agriculture (MOA) may provide assistance at field level.

Large-scale schemes

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Large-scale schemes are those exceeding 3,000 hectares and growing a mix of commercial
crops such as cotton and sugar cane, usually the state farm sectors. Construction of such
schemes is to be undertaken either by Ethiopian Water Work Construction Authority
(EWWCA) or by international Contractors under bilateral aid arrangements.

Most of the Large-scale frames, about 70,000 hectares in size, are located in Awash Valley
and benefit from the regulated releases from Koka reservoir

Generally, Irrigation offers so many options for feeding people and providing the energy to
make things move (capital NP, 2003). However irrigation development in Ethiopia has
remained to be poor. According to the available information, the amount utilized so far is
only about 252,000 hectares out of 4.2 million hectares of irrigable area (MoWR 2001)

2.3. Theoretical Review Of Irrigation

2.3.1. Types of Irrigation Methods

Irrigation methods can be classified in to three groups

 Surface irrigation
 Localized irrigation
 Sprinkler or spray irrigation
Surface irrigation is the most commonly used type of irrigation method. It requires
substantial amount of labor and low capital. It applied by dividing land in long, narrow
parallel strips so that the water can flow down the gradient to the bottom and moisten the
soil. To use the method for river basin, cross-banks should be constructed and pipeline or

9
channel is required to supply water to each basin. As one part of surface irrigation, we can
use fallow irrigation by applying numerous fallows and releasing water from a supply
point to a head channel or pipeline located in the highest level (Ghassemi et al,2002)

Localized irrigation is applied by using trickling apparatus to drop water continuously on

the surface. It needs the frequent application of water at low rates so that watering of crops
uniformly could be possible. Such kind of process would preserve soil structure in the
process water would be saved since evaporation would be reduced and water reaching the
plant would be controlled. However, there are some drawbacks. For example, saline could
be accumulated at the edges of moisture areas and plants pest could develop-e because of
the creation of saturated areas (A.M.Michel, 2001)

Sprinkler or spray Irrigation is a system of spraying water over the land surface. It uses
sprinkling apparatus so that water can be sprayed over the plants. The method avoids
uneven penetration and wastage of water. However, the method is very costly that it is
utilized over crops that offer high return such as horticulture crops. (Ghassemi et al,
2001and A.M.Michel, 2000)

In Ethiopia, surface irrigation method has been the dominant one because it requires less
initial investment and operation costs. The evolution of potentially irrigable land is also
made for this type of method one of the major constraints of irrigation development is the
topography of the land that it needs extensive land level operation. Hence surface irrigation
could not be fulfilled through out the nation yet, sprinkler or even trickle irrigation could
be considered in comparison to the benefit and cost of irrigation. But these methods are
discouraged due to problem of silt though they could be beneficial to water deficit basins
such as Awash and Wabishebelle (Zewdie, 2000)

According to AQUASTAT 2002, four categories of irrigation schemes can be distinguished

in Ethiopia. These are;

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  Traditional irrigation schemes
 Modern small scale irrigation schemes
 Modern private irrigation
 Public irrigation

2.3.2. The Role Of Irrigation Development

Irrigation is an important factor in agricultural development in areas where rainfall is not

adequate and unevenly distributed both in terms of time and space. The importance of
irrigation is not entirely limited to areas of water stress it is also equally important in areas
where rainfall is adequate but its temporal distribution is irregular. In such condition
irrigation greatly improves production and permits more than one harvest a year. It can
also supplement the annual rainfall so that a second or third crop may be grown and there
by increase the agricultural potential without area expansion to virgin land. It is also
beneficial in areas of bi-modal rainfall pattern where irrigation can effectively connect the
two rainy periods in to one grouping season and encourages the cultivation of high value
crops. Thus, it brings about significant changes in the social and economic pattern of
society.
2.3.3. Significance Of Irrigation for Food Production

Several factors contributed to the growth of productivity in the last three decades, foremost
among them are expansion in irrigation adoption of high yielding verities and better
agronomic practices. While the exact contribution of these factors to the growth of food
productivity is difficult to quantify, it is well recognized that growth in irrigation has
played a major role (World Bank, 2000)

Benefits of irrigation development, whether surface or ground water, are many food
security being in the forefront. This is especially true for developing countries, which are
suffering from famine due to recurrent drought (IWMI 2001) According to world
development report 2000, Irrigated agriculture is practiced on 18% of the total arable land

11
in the world (approximately 237 million hectares) and produces more than 33% of the total
agricultural production.

As various writers stated irrigation serve as dynamic sources of food production. The
following are some of this how irrigation raise food production:

 Opening new agricultural area: controls of water resource permit

the establishment of highly productive agricultural practices in arid and semi-arid
areas, which are not suitable for agricultural production due to low moisture
content of the soil (Michael, 2000)
 Increase farming intensity: irrigation can also allows higher
productivity cultivation practices such as multiple cropping and sequential cropping
of farm output (Ellis, 1999)
 Increases productivity per hectare: researcher has noted that
individual crop yield are considerably higher under irrigation than rain-fed
agriculture and irrigated areas grow more valuable crops. (AQUASTAT, 2000,
Mekonnen 2002)
 Avoid risk and uncertainty: Perhaps the most obvious policy
response to natural uncertainty is that of irrigation (Ellis 1999). Under uncertain
weather conditions, which are becoming common features of the globe due to
factors like EL'Nio and global warming, irrigation avoids the risk of productivity
loss arising from shortage of rainfall and can increase production five even ten fold
(Zewdie 2000). strength the above ideas by stating irrigation is man's method of
production aimed at overcoming deficiencies in natural pattern of precipitation.
These deficiencies may stem from lack of rainfall, unfavorable seasonal
distribution for natural plant growth. The purpose of irrigation may also be to
increase crop yield by supplementing rainfall in normally humid areas.

2.3.4. Employment Contribution of Irrigation

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The emergence of wide spread unemployment and disguise unemployment in the
agriculture of developing countries has necessitated irrigation schemes with main
objectives to settle landless farmers (Clark 1999). Chamber (2001) supported this
statement by saying that, empirical studies again & again confirm that reliable and
adequate irrigation directly raises employment, for example, increases in the days worked
per hectare with irrigation compared with rain-fed conditions, raises cropping intensities,
associated changes in cropping patterns all affect employment. For small and marginal
farmers, irrigation means more productive work on their land and, increases intensities
means productive work on more days of the year there by reduced seasonal unemployment.

Clark (1999) pointed that irrigation generates additional employments and income for the
poor, both directly through employment in agriculture and related activities like imputes
supply, processing & marketing and indirectly through multiplier effect as income is spent
on other goods.

2.3.5. Irrigation and Productivity Of Modern Agricultural Impute

It is clear that when irrigation applied jointly with other imputes such as fertilizer, crop
production, and genetically superior varieties produces a yield increase, which would not
occur if each input were applied separately (IWWI 2001). Thus, if irrigation, fertilizer, crop
protection and high yielding verities each increased by 10%, the total yield increase would
be more than 40%, if they were applied jointly (Caruthers and Clark 1999). This more
than additive or complementary response to irrigation is also supported by World Bank
(2000) contention that in India, with existing technology, yield could be increased by
improved agronomy between 10-30% on rain-fed land and 20-50% for irrigated land

Experimental works in this area also give validity to these statements. A study conducted
in England on barely production, for example, produced the following results; (Table2.2)

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 Table 2.2: Yield fertilizers with and without irrigation
Out put per hectare for 50 kg Out put per hectare for 25 kg
Farm type
fertilizer use (tones/hectare) fertilizer use (tones/hectare)
Un irrigated 6.95 4.46
Irrigated 7.08 5.83
Source: Clark and Caruthers 2000

The numerical values in the table show that productivity (tones per hectare) is higher for
irrigated land than unirrigated ones. This implies that, other things constant, fertilizer
productivity is higher on irrigated agriculture than rain-fed agriculture.

2.3.6. Irrigation and Environment

Water development for irrigation tends to find many uses in addition to supply of water to
crops. In irrigated areas of humid tropics, water diverted for crop production supplies
homestead gardens and other beneficial perennial vegetation, primarily trees, growing
naturally with in the command areas. However, the degree of water use by this vegetation
and benefits derived from it are not well understood (IWMI 2001). In line with this
argument the World Bank report for 2003 revealed that over the next 30-50 years, the key
challenge for transformation of rural economy is the challenge of environmental instability.
To bring for sustainable environmental development we need to appropriately manage our
land and water resources, where one serves for development of the other.

2.3.7. Other Benefits of irrigation

In addition to the above mentioned uses, irrigation can also play a vital role, in the
development of infrastructure including roads, schools and markets (IWMI 2001) the
establishment of flourishing irrigation also encourage industrial development both through
for ward and backward linkage (Zewdie 2001). At the national level irrigation also can

14
serve as a dynamic source of capital by promoting the foreign exchange earnings of a
country (IWMI, 2001)
2.4. Empirical Review of irrigation

There are approximately 220 million hectare of irrigated land in the world over 60% of this
area is in five countries: China, India, Pakistan, the United States and the Soviet Union.
More than two-third of the World’s total irrigated area is in developing countries and of
this 60%in India. The area brought under irrigation has increased rapidly since the early
1960's approximately 80 million hectare was added. These have been resulted in a
remarkable increase in production of rice, wheat and other crops. (WB Technical paper
No.94, 1999)

Many studies show that Ethiopia has a large potential of irrigation (3.7 million hectares),
of these only 4% of the total potential is irrigated. Before the advent of socialism in 1974,
Large-scale commercial farms were proliferating in Ethiopia.

The nationwide area under small-scale irrigation is reported by MOA (1999) is 65,000
hectares. About 60,000 hectares have been developed by farmers of which some are
traditional schemes of long-standing the average scheme size is about 50 hectares. Over
half of the schemes are in the Abbay and Awash Basin crops grown include cereals,
vegetables and fruit, mainly for domestic consumption but with some surplus for cash. The
small scale schemes are evidently of significant benefit to the communities they serve.
Information from the Ministry of Agriculture (MOA) indicates the number of beneficiaries
to be approach half a million (Zewdie 2001)

The total area of long-and medium-scale schemes developed countrywide amount to

97,000 hectares with a further 38,000hectares in the process of development. Of the
existing schemes, almost three-fourth, 71,000 hectares are located in the Awash Basin.
Development in Other basins has so far been limited. State farmers primary producing

15
cotton and farms associated the Ethiopian sugar corporation (ESC) occupy some 70,000
hectares. The balance is farmed mainly for cereals, vegetables and fruit. (Zewdie 2001

2.5. The Problem Of Irrigation Development

Through out the world, irrigation farming is seriously threatened, on the one hand by
accumulation of soil salinity and increasing depletion of underground aquifers in arid
regions. In the humid region on the other hand, solving problems concerning the
management of irrigation schemes is now a pressing task. Meanwhile, the expansion of
water use since the start of the 20 th centuries has caused the distraction of the ecosystem
and even human habitation itself. (JIID, 2003)

Most production system, including agriculture, can cause both positive and negative
externalities but so long as the concern her is about the disadvantages of irrigated
agriculture, only the later type (negative externalities) are discussed.

2.5.1. Salinity

It refers to the increase in concentration of total dissolved salt in soils, surface and ground
water. It is usually exhibited in arid & semi-arid areas due to high evaporation of water.
Salinity reduces the fertility of soil and consequently production. This is due to the fact
that plants would be unable to get oxygen water through their roots since the salt creates
toxic substance. In serious cases in addition to reducing yield and productivity of arable
land, it could lead to total abandonment of land (Desalgn, 1999).

According to the WB (2000), all irrigation schemes have the risk of soil degradation.
However, this depends on soil composition, quality of irrigation water, water
management& natural drainage. The report further states that evaporation of ground water
leads to a whitish salt residue on the soil that would be dangerous for the growth of most

16
type of plants. To make things worse, every year 3 to 4.5 million hectare of land is added
to the total saline affected area (World resources institute, 2000).

2.5.2. Health Impact

WHO (1999) report stated that agricultural policies, products and processes are major
determinant of people health. As more than half of the people in developing countries
derive their livelihood from it. Never the less, studies conducted in different part of the
world have revealed that irrigation is highly associated with health risk i.e. malaria.

An empirical research conducted in Kenya, for instance, showed that the number of
malaria vectors biting people increased by 70-fold in irrigated areas compared to near by
non irrigated areas (Blank et. al, 2002). Similarly this problem is manifested in Ethiopia
across the Awash valley and Zeway areas) (OWRB, 1999)

2.5.3. Depletion Of Underground Aquifers

In many arid regions water is continuously being extracted over and above the
accumulation of ground water through deep percolation of rainfall to aquifers. This brings
the risk that groundwater will be harder to extract and the cost of energy to pump the water
will rise (JIID, 2003). Although this may not as such relevant for our country where there
is fewer utilization of underground water, it is of equal or greater significant to soil salinity
in many other nations, particularly in Mesopotamian region. The issue of depletion of
marine life also applies for surface water in case where there is over utilization beyond
replacement capacity, for instance, fishery would be jeopardized (JIID, 2003, & IWMI,
2001)

2.5.4. Other Problems of Irrigation

 Deterioration of surface water

 Alteration of hydrological character of surface water

17
  Deforestation
 Transformation of ecosystem
 Economic costs etc...

CHAPTER THREE
3.1 Methodology

The study relies on Secondary sources of time series data employed with Descriptive
Analysis along with percentage, numerical figures comparisons, ratio and proportions etc.

The data will be collected from different books, publications, reports, feasibility studies etc
of the concerned ministry offices such as Ministry Of Water Resource( MoWR),Ministry
Of Economic Development and Cooperation( MEDaC),Ministry Of Agriculture (MoA),
Food & Agriculture Organization( FAO) and others such as; journals and articles through
Internet

More over, in order to find out what has been written on Irrigation Agriculture of Ethiopia
in general & Upper Awash area with particular emphasis the above Ministry's and

organization's Library will be used.

CHAPTER 4
Irrigation Development in Ethiopia

4.1 Historical development of irrigation

18
As AQUASTAT (2002), Irrigation in Ethiopia dates back several centuries, if not millennia,
while "modern" irrigation was started by the commercial irrigated sugar estate established
in early 1950's by the Imperial government of Ethiopia and Dutch Company known as
HVA-Ethiopia.

The first initiative of water resource development took place in the second half of 1950's.
The main target was to meet the growing demand of food and raw materials of industries.
Therefore, a lot of investment was required, which then was acquired from foreign
institutions and investors. The foreign capital was seen as means of satisfying the
agriculture production for export & local consumption (Assefa, 2001)

The over all irrigation development process in the country, even if poor and slow, falls in
to either traditional or modern system. Traditional system are historically believed to have
existed since the reign of Menelik ІІ (Gezmu 1990 in MEDaC 1999). These system,
however, start to expand beginning from the 1974 land proclamation. Currently it occupies
55% of the total irrigated land or an area equal to 138,339 hectares. On the other hand
modern irrigation system had started at the beginning of 1960's (MEDaC 1999 and,
MoWR, 2001).

Since then the government took place all the responsibilities of construction, management
and studies of large- scale schemes in the country. In 1960's&1970's, feasibility studies
were carried out on basin of Abbay, Awash and Wabishebelle River. However, the Awash
Valley and Setit Humera area were selected as favorable for expansion of such commercial
crops. By the end of 1970's, 100,000 hectares of land was under modern large-scale
irrigation of which, half was located in the Awash valley (Berhanu&Paden,
2002:Watterhall)

4.2 Economic benefits & some country's Experience

19
Irrigation has been instrumental in economic development of many countries and has
been a powerful means of generating income and creating employment. It follows
countries to bring other wise unusable land in to production helps increases yield by
facilitating the introduction of more production and higher value of crops & promotes crop
intensification by reducing the fallow period & by allowing farmers to grow several crops
through out the year. (WB, 2000)

Irrigation has the potential to improve yield in quality, quantity & diversity of crops.
According to AQUASTAT (2002), a case study carried out in 2001 estimated that the
average yields of cereals under irrigated and rain fed condition are 1.75 & 1.15
tones/hectare respectively. It could create a chance of sustainable yield and reduce demand
for land because yields would be better. It is usually taken as a solution for food insecure
area of the world. Its contribution to agricultural development is very crucial in enabling
the expansion of cultivation and intensification of production.

It also plays a key role in the attainment of development objectives of food security,
poverty alleviation and the improvement of the lives of rural population. It is believed to
create employment opportunity, higher income, and improvement in nutrition standards
and decrease workload of women to some extent.

There are backward and forward linkages of irrigation in coupled with other sectors of the
economy. Irrigation requires imputes from the construction industries in terms of
engineering, supplying different manufactured equipment and different machinery. It also
creates potential market for non-agricultural products and services in rural economy, which
enables a high, inter linkage between the agricultural and industrial sectors.

Further more, different countries have gained substantial amount of benefit from their
irrigation projects. These highly successful irrigation projects contribute to national
economy. For example, Egyptian perennial irrigation has made it possible to grow two or
more crops each year using the Nile River.

20
 Irrigation in coupled with high yield crop verities; fertilizers and improved techniques have
substantially increased agricultural products in many parts of the world. In China, for
example agricultural production has increased rapidly due to irrigation that enabled the
nation to increase its notional grain production & cotton yield for export to 3.6 and 13.7
times respectively than it used to be. Similarly, the significant increases in irrigated and
cultivated land of India have successfully transformed the country from food deficient state
to one that is self sufficient in production of food grains. In Iran, irrigation plays a vital
role to the agricultural sector in increasing the average annual yield of major crops such as
wheat, barely and rice in Kilogram per hectare than the rain-fed areas (Ghassemi et al.
2001)

Both irrigated and rain-fed agriculture is important to the Ethiopian economy. Virtually all
food crops in Ethiopia come from rain-fed agriculture with irrigation sub-sector accounting
for only 3% of food crops. Export crops such as coffee, oilseed and pulses are also mostly
rain-fed, but industrial crops such as sugar cane, cotton and fruit are irrigated. Other
important irrigated crops include vegetables, and fruit trees in medium-and Large-scale
schemes and maize, wheat, Vegetables potatoes, sweet potatoes and bananas in small-scale
schemes. (AQUASTATE, 2000)

4.3Irrigation potential, Actual development and spatial distribution

4.3.1 Irrigation Potential & Actual Development in Ethiopia

The Development of water resources for an agricultural purpose has attracted high level of
investment and modern water development schemes are relatively new phenomena in
Ethiopia. (Dessalegn1999)

Table 4.1: Catchments area& average annual discharge

Catchments Average annual discharge
Source (basin)
Area (Km2) in billion m3
Abbay (Blue Nile) 199,812.00 54.40

21
 Rift Valley Lakes 52,740.00 5.60
Awash 112,700.00 4.90
Omo_Ghibe 78,200.00 16.60
Genale-dawa 171,050.00 6.10
Wabishebelle 200,214.00 3.16
Baro-Akobo 74,102.00 3.16
Source: MoWR, 2002
Considering catchment's area out of the twelve basins, Wabishibelle River basins stands
first with an area of 200,214 km2

Depending catchments area & average annual discharge (Table 3.1) Out of 12 river basins
in Ethiopia, Wabishebelle stands first with an area of 200, 224 Km2 and Genale-Dawa
(171,050 Km2). On the other hand, based on annual discharge, the Abbay river basis
constitutes 70% of the total run off with 54.4 billion m3 respectively

When we. Observe the pattern of irrigation potential and the actual development (Table
3.2), the total potential of irrigable land of Ethiopia is nearly 3.5 million hectares unit
recently, only about 170,000 hectare, have been actually developed and yet more land area
has to be under irrigated in order to:-

 Feed the fast grouping population

 Supply row material to industrial sectors and
 Solve the problem of persistent and recurrent famine and drought
MOA (2001) also estimate that, the total irrigable land in the country measures 7.3 million
hectares. The IFAD (1999), On the other hand gave a figure of 5.8 million hectares, while
the DCCP (1999) figure based on WARDA'S estimate 3.7 million hectares (Dessal 1999)

Table4.2: Irrigation potential of Ethiopia

Potential irrigable Actual Irrigable %
No Basins
Area (hectares) Area (hectares) Utilized
1 Abbay ((blue Nile) 977,915 210,100 2.205
2 Rift Valley Lakes 122,300 12,270 10.03

22
 3 Awash 204,400 69,900 34.2
4 Omo-Ghibe 450,120 27,310 6.1
5 Genale-Dawa 435,300 80 0.02
6 Wabishebelle 204,000 20,200 9.9
7 Baro-Akobo 748,500 350 0.05
8 Tekeze 312,700 1,800 0.58
9 Mereb 37,560 8,000 21.30
Total 3,492,795 160,920 4.61
Source: MoWR, 2002

Ethiopia ranks 4th in irrigation potential out of 44 other African countries, while the actual
irrigation is less than 5%, ranked 11th for its actual utilization of irrigation such utilization
of irrigation agricultures (EPA 2003 report) . From such utilization the Awash River basin
holds the largest portion next to Abbay (Table 4.2)

Table 4.2 implies that Ethiopia is endowed with huge potential for irrigable land though we
utilize only small amount of it. Abbay and Barro-Akobo basins have the highest potential
basins have the highest potential of this irrigable area, which is almost 50% from the total
but in terms of actual development Awash River basins is the most intensively exploited
one with 34.2% of the actual irrigable area being utilized.

4.3.2 Spatial Distribution

Ethiopia has four major drainage system (Table 4.3) from this drainage system, about 62%
of the area for irrigation is located in Rift valley, followed by Nile and Shebelli- jub with
29% and 9% of the area respectively.

23
Table4.3: Economical irrigation potential &irrigated area by river basin

Major River As % of Economical As % of As % of

As % of Irrigated area
Area irrigation Total Economical
drainage total Total (2001)
Basin (Hectares) potential
potential in hectare
Irrigated Irrigation
system area (hectare) Area Potential
Abbay (blue Nile) 19981200 17.6 523,000 19.6 47,020 16.2 9.0
Baro-akobo 7410000 6.5 600,000 22.4 13,350 4.6 2.2
Nile Setit_tekeze/
8900000 7.8 189,000 7.1 24,270 8.4 12.8
Atbara
Merebe 590000 0.5 500 0.02 0 0 0
Sub-total 36881200 32.4 1,312,500 49.1 84,640 29.2 6.4
Awash 11270000 9.9 205,400 7.7 112,500 38.9 54.8
Dankil 7400000 6.5 3,000 0.1 0.0 0.0 0.0
Rift
Valley Omo-Gibe 7820000 6.9 384,000 14.4 40,300 13.9 10.5
Central lake 5274000 4.6 139,300 5.2 25,770 8.9 18.5
Sub-total 31764000 27.9 731,700 27.4 178,570 61.7 24.4
Shebelli- Wabishebelle 20021400 17.6 204,000 7.6 22,790 7.9 11.2
Juba Genale-Dawa 17105000 15.1 423,300 15.9 3,530 1.2 0.8
Sub-total 37126400 32.7 627,300 23.5 26,320 9.1 4.2
North Ogaden 7710000 6.8 0.0 0.0 0.0 0.0 0.0
East Gulf of aden 220000 0.2 0.0 0.0 0.0 0.0 0.0
Cost
Sub-total 7930000 7.0 0.0 0.0 0.0 0.0 0.0
Total 113701600 100 2,671,500 100 289,530 100 10.8
Source: AQUASTATE, (2000)

24
In terms of regional distribution (Table 4.4) indicates the total irrigation potential of the
country across different region. About 39% of irrigated area is located in Oromia, central
Ethiopia followed by 24% in Amhara in the north, 15% in Afar of the North east and 12%
SNNP, while the remain up 10% is in the other regions.

Table 4.4 Total Irrigation potential and Amount Utilized in Ethiopia by Regions
Irrigated land
Irrigated Modern
Regions As %
Total
Potential Traditional Medium Private Irrigation
from
Small total
(Hectare) & Large
Oromia 1,350,000 56,807 17,690 35,376 2,614 11,2487 38.85
Amhara 500,000 64,035 5,752 - - 69,787 24.11
SNNPR 700,000 2,000 11,577 20,308 800 34,685 11.98
Tigray 300,000 2,607 10,000 - - 12,607 4.35
Afar 163,554 24,440 - 39,319 2,000 43,759 15.11
Benishangul 121,177 400 200 - - 600 0.21
Gambella 600,000 46 70 - - 116
Harari 19,200 812 125 - - 937 0.04
Somali 500,000 8,200 1,800 2,700 - 12,700 0.32
Dire Dawa 2,000 640 860 - - 4.39
Addis Ababa 526 352 - - - 352 0.52
Total 42,564,457 138,339 48,074 97,703 5,414 289,530 0.12
Total irrigated Land 252,884
Sources: MoWR, 2001

25
 4.4Problems & prospective for agricultural water resource management
4.4.1 Constraints

Irrigation is a special case of agricultural development, in which technology intervenes to

provide control for soil moisture refine in the condition of drought. The aim is to achieve a
high standard of continuous cropping, either entirely independent of, or as a supplement to
effective rainfall. A success full irrigation scheme is, therefore, an outcome of discrete
package of investments, policies, institutional and other actions designed to achieve
specific objections designed to achieve specific objective (Ethiopian valley report 2000).

Water resource management has a number of constraints, which is broadly divided in to

three:

1. Technical constraint
2. Policy and institutional constraint
3. Socio-Economic constraint

1. Technical constraints
There are a number of technical problems that determines irrigation development some of
these are:

 Accessibility of data base

The information required for the preparation of comprehensive plain of water
resource development requires data sets that can be observed measured and
recorded, the most important being hydro metrological data on surface and sub
surface water, soil moisture, chemical and bacteriological quality of water etc.
(Zewdie, 2000)

 Water resource and land degradation

Damage to the source of water and irrigation schemes as a result of pollution, soil
erosion and other land water degradation processes is a major threat to the
development and sustainability of irrigation system all over the world (Blank et al
2002).

26
 One of the major water & land degradation problems is the clogging of irrigation
canals, particularly if the water flowing in to the system is loaded with sediment
there by reducing its flow. The removal of sediments from canal & reservoirs is, in
many cases, costly (Blank. et al 2002).

 Others like,
 Nature of the soil
 Topography & river flow
 Research & Development
 Global warming EL- Ni No and La Ni Na etc.

2. Policy & institutional. Constraints

The most common policy & institutional factors affecting water resource for irrigation
development in developing countries like Ethiopia are;

 Rural credit services

 Land Tenure security
 Conflict over water use
 Lack of appropriate policy legislation and planning
 Lock of coordination. etc
3. Socio Economic constraints
 Human resource
 Poverty
 Marketing problems. Etc

4.4.2 Prospective in the Future for Agricultural water resource management

Ethiopia cannot meet its large food deficit through rain-fed production. Growing
population pressure in the high land areas of rain-fed agriculture on a rapidly declining
natural resource base has secured irrigated agriculture a prominent position on the
country's develop meat agenda. Ethiopia plans to develop an additional 274,612 La of
27
irrigated land up to 2106(Table4.5). However, even human, land & water resources are
institutional capacity, private sector involvement of market, as well as food insecurity that
affect the dilemma of cost recovery because of targeting food security first by growing
food crops instead of cash crops (Dessalegn, 1999).

The Ministry of water resource has a programmed target for irrigation development with in
the period 2002-2016 (see table 4.5 below).
Table4.5: Target of irrigation development program (2002-2016)
Small-Scale Large & Medium
Total area
Description schemas scale schemes

Short term 1st 5 years (2002-2007) 40,319 13,044 53,363

Medium term 2nd 5 years (2007-2012) 40,348 39,701 80,049
Long tem 3rd 5 years (2012-2016) 46,471 94,729 141,200
Total area to be developed by (2002-2016) 127,138 147,474 274,612
Currently developed approximately 98,625 98,625 197,250
Grand total irrigated area by 2016 225,763 246,099 471,862
Source: MoWR, 2002

According to table4.5, a grand total of 471,862 hectares of land is expected to be

developed with in the year 2016. Out of this, small-scale schemes constituted 47.8% of the
grand total while 52.2% goes to large-scale and medium scale irrigation schemes. It is
evident that the government has given priorities in schemes. It is evident that the
government has given priorities in small-scale schemes and it is planned to develop at lest
127,138 hectares of land by the year 2016 but still large scale and Medium-scale irrigation
schemes are import in the program.

According to Dessalegn (1999), annual agricultural water use is expected to increase from
present estimated demand of about 5.2 to 9.0 Km3 by 2016. Farmers in southern Ethiopia
used to produce cotton under irrigation but bananas, papayas & vegetables are now
preferred as a result of the unattractively low price of cotton. Similarly, teff, which is the

28
staple food for a significant proportion of Ethiopians and which as low water demands, is
presently grown under irrigation, but because of its low productivity & high labor demand
it may be replaced by another crop. Hence cropping patterns have been an impact on
agricultural water demand –During a year of drought, crops with high water demand may
be discourage in order to safeguard hydropower generation.

29
 CHAPTER 5
Upper Awash Major Irrigation Project and Contribution to the
Economy

5.1 Description of the study area

This paper assesses and explains the need for water resources for irrigation agriculture in
order to achieve sustainable food security. The paper focus in particular the upper Awash
River basin i.e. one of the twelve major basins in Ethiopia, Which is located between 8 0
and 120N on the south and east side of the central Ethiopia plateau extending between
Addis Ababa in the west land and Assayita delta in the east. (VAD, 2001)

The upper basin, which corresponds to the Koka catchments, covers about 15,802 Km2
and it contributes a significant amount of flow to the river. The annual rainfall ranges from
800mm to 1,200mm. The land elevation varies from about 3,000 on the plateau, where the
Awash River rises, to 1,500m at the break of rift valley. (MoWR, (2002) Working paper
No.2)

5.1.1 Agro climatologic conditions

The Upper Awash valley is one of the three distinct zones: upper valley, middle valley and
lower plains. The valley is part of the basins between Koka dam and Metehara (Annex 2).
It lies between the altitude of 1500m and 1000m A.S.L. The actual and potential of net
irrigable area more 20,300 and 33,900 ha. Respectively (Table 5.1)

Table 5.1 Irrigation Development area (ha) in the Awash Valley

Zone Actual Development Potential Total sustainable area
Upper Valley 20,300 33,900 33,100
Middle Valley 19,900 55,000 33.000
Lower Valley 25,600 62,500 31,000
Total 65,800 151,400 97,900

30
 Source: HARLCROW/EVDSA, 1999

Most of the upper basins area, with its steep& uneven topography, has been denuded of
vegetation. Soil erosion and land degradation are the most important problems in the upper
basins.

Crop farming is often practiced on very steep slopes, which exacerbates the degradation
process. Apart from the high mountains and hills, the other major feature of the catchments
is the extensive Becho plain, which has a great potential if provision is made for adequate
flood protection and drainage system (Hal crow, 2000).

The larger portion of irrigated land is under perennial crops dominated by sugar cane that
occupies 78% of the area irrigated. Wonji-Shoa and Metehara sugar factories produce the
bulk of sugar cane.

More over different types of horticultures such as citrus fruits, flowers and vegetables are
being produced by the upper Awash Agro industry (Ibid)

Table 5.2 Existing irrigation farms in the upper Awash Basin

Scheme Name Altitude (M) Ownership Net irrigated area (ha)
Wonji- Shewa 1500 Public 7500
Degaga 1350 Com/Private 171
Melka Woba 1350 Com/private 200
Golgota 1200 Com/Private 255
Tibila 1250 Public 655
Merti Jeju 1200 Public 1877
Nura Era 1200 Public 3393
Methara/Abadir 9550 Public 10000
Awara Melka 850 Public 796
Yalo 850 Com/Private 500

31
 Source: Compiled from master plan for development of surface water resources
in the Awash Basins, Hal crow, 1999 & MoWR, 2000

The upper valley scheme (Table 5.2) is the most developed areas of the Basins in terms of
agriculture and other infrastructure (MoWR, working paper No2, 2000)

Table 5.2 shows the existing irrigation schemes in the valley, range from > 200 ha to more
than 10000ha. The area of the Basin, between Koka Reservoir and Awash station, which
lies between 1,500 and 1000 m, is defined as the upper valley. In this area some 34,000 ha
was identified as suitable for irrigated agriculture of which about 24,000 ha was so far,
been developed for the production of sugar cane, horticultural crops and cotton. The upper
valley is sub divided in to Wonji-Shoa, Tibilla/Merti, Jeju/Nura, Era and Abadir/Metehara
irrigation zones. (Mow Working paper No2, 2000).

5.2 Major irrigation project of the upper valley

There are 48 irrigation farms in the upper, middle and lower parts of the valley. The upper
valley farm is grouped in to three according to their controlling organizations.

 The first group goes to the Ethiopian sugar corporation in which Wonji-Shoa and
Metehara sugar factories operate their sugar cane farms on 15,3851 ha of land.

 The second group is the land of the horticultural enterprise where 6,556 ha of land
is used by the Tibila, Mertijeju and Nura Era state farms.

 The third group goes to the settlement farms and small citrus fruit farms.

32
 Table 5.3: Major existing potential of net irrigable areas in the upper valley
Location Present Area (ha) New expansion (ha) Total (ha)

Wonji-Shoa 6,900 3,900 10,800

Nura.Era 7,400 4,800 12,200
Metehara & Abadir 9,000 900 9,900
Arba - 1,000 1,000
Total 23,300 10,600 33,900
Source: Harlcrow, 1999

As we have observed from table 5.3, Metehara/Abider has got the largest portion in the
existing potential irrigable area followed by Nura era. Totally, 23,300 ha of the area are
under irrigation with new expansion project of 10,600 ha.

5.2.1 Crop Production of the valley

The climatic situation of the area is favorable to cultivation of commercial crops such as
cotton, horticultures, Sugar as well as other cereals, perennial fruits and vegetables (Table
5.4)

Table 5.4: Major crops grown and extent of land

Crops Extent (ha)

Cotton 34,000
Sugar 16,000
Cereals 7,000
Perennial fruit 3,000
Vegetables 3,000
Total 63,000
Source: HarlCrow/EVDSA, 1999

33
5.2.2 Sugar Production

Sugar cane is produced under irrigated agriculture for the consumption of the three sugar
factories of which two of them are located in the upper valley of Awash Basin: Metehara &
Wonji sugar factories in which they are under the control of the Ethiopian sugar industry.
Both are totally dependant on sugar cane plantation for the production of sugar since their
establishment in the 1950s. Their production of the sugar cane takes place by channeling
water in small doses.

5.2.3 Horticultures

It refers to vegetables, fruits ornamental plants, flowers and spices. The productions of
such crops providing the processing industries with row materials depend on the demand
and capacity of processing plants: for domestic market consumption and for export.

There are four horticulture state farms in the Awash Basins under the control of Upper
Awash agro industry on 6,600 ha of land. The farm includes Nura Era, Awaara Melka
Merit Juju and Tibila state farms and one Agro- industry called the upper Awash Agro-
industry Enterprise.

Domestic consumption of fruits is very low since they are regarded as luxury products.
Therefore, only 25% of the product is consumed by high income groups and exported to
Djibouti, Middle East and Europe (MOA, 1999) The report also shows that 57% of the
total basin is devoted for fruits (Oranges, Mandarin, Grapes) 13% to vegetables like tomato
and onions and the rest crops are cotton, maize & tobacco).

5.2.4 Tobacco production

34
Production of tobacco takes place in the upper & middle valley of the Awash Basin. The
national production ranges from 1,700 to 2,200 tones of dry leaf per annum. The area was
expected to be expanded from 2000 ha to over 4000 ha and production to increase from
2,200 tone to over 5,000 tons by 1999. The production is totally purchased by Ethiopian
tobacco & Matches Corporation (ETMC) for its cigarette factory found in Addis Ababa.
Production in the valley accounts for approximately 50% of the incremental consumption.
However, most of the production is for domestic consumption due to the high unit cost of
production.

5.3 Contribution of the Basin

To attain food self-sufficiency and agricultural growth promotion large-scale irrigation

projects of the valley have played a major role in most of developing countries in recent
time. It has a great contribution in get-rid-off crop failure and uncertainty of production
due to climatic fluctuation. In addition to this, crop productivity has been increased
tremendously, using:
 Appropriate land utilization technology
 Chemical fertilizers etc

5.3.1 Increase in output

In 1980's, the state farm was the receiver of 76% of the fertilizers, 95% of improved seed
and 80% of the credit (Assefa, 2001). Since, the Awash valley farms were under the
control of the state, it could be said that they were the beneficiaries of these modern
farming imputes though they faced some problems with mechanization, inefficient use of
inputs and lab our shortage, the valley were able to increase the country's production of
sugar, cotton tobacco and horticulture crops.

35
 Table 5.5: Volume of Export by major commercial crops in metric tones
Crops 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02

Oil seeds 176 392 10,188 12,132 7,832 14,069 66,554

Pulses 1,398 1,527 9,840 25,783 28,969 30,468 30,909
Fruit & Vegetables 7,194 6,051 15,893 19,485 19,003 21,843 17,010
Sugar & Molasses 2,500 13,123 15,209 10 0 13,150 0
Source: NBE, quarterly bulletin vol. 1, No 15

According to the quarterly bulletin of NBE, the volume of these commercial crops such as
pulses, fruits & vegetables and sugar cane has shown increscent even if there are
fluctuations over those years (Table 5.5). Hence we can say that the production of such
crops in the valley is contributing a significant role in augmenting the output in the
economy.

Further more, most of those products used to be produced at the household level and were
not exportable items prior to establishments of irrigation in the valley. But since then a
government Enterprise ETFRUIT, was established to under take exporting these crops to
international market.

The increment in output could further be explained using the production & sales report of
industries located in the valley. Table 5.6 shows the growth rate of the upper-Awash agro
industry Enterprise. This Enterprise contributes a significant share to the national
horticulture production using the Awash River. Hence in order to show the growth rate of
its output, 1995/96 is takes as a base year to calculate the consecutive rates.

Table 5.6 also shows that most of the growth rate over the year is positive and greater than
unity. The major crops with growth rates are vegetables, pulses & oil seeds and processed
products. For instance, vegetables have an increasing trend till the year 2001/02 This is due
to the fact that new investment opportunities were injected to these crops and different new

36
techniques of production were employed. How ever during the year 2001/02, the cost of
production was high and the prices were not profitable enough to increase the sales. Most
of other crops follow the same pattern.

Table 5.6: the growth rate of out put of the upper Awash Agro industry Enterprise
Crops 1996/97 1997/98 1998/99 1999/2000 2000/01 2001/02

Citrus fruits 1.7 1.4 1.66 1.5 1.51 1.64

Pulses & oil seeds 1.08 1.3 1.08 2.01 5.57 9.54
Processed products 0.8 1.92 1.68 2.31 11.63 6.85
Grain & cereals 1.32 -0.77 1.34 2.19 3.86 2.66
Vegetables 2.64 3.34 4.23 4.37 5.60 4.9
Cotton - - -0.85 -0.46 -1 1.84
Flowers 1.13 0.36 0.07 -0.46 0.69 3.05
Others - -0.27 0.07 -0.42 -0.29 -0.43
Source: MOFED

In addition to this, since the establishment of commercial farms in the Awash valley, the
country was able to exploit its potential in Agro-Industry, which is one means of increasing
the domestic value added to row materials through processing agricultural product such
industries include the upper Awash Agro-Industry, the two sugar factories i.e. Wonji Shoa
& Metehara and the Tendaho agricultural development Enterprise. All these Agro-
Industries and others were established to process the output of the farms domestically.

Particularly, the two sugar factories have been. Contributing significantly to the sugar
production of the country, constituting more than 78% of the total sugar production of the
country. Thus such Agro-Industries have proven to be important ingredients to the national
economy by saving foreign exchange & increasing the product ion of commercial crops in
particular.

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 Table 5.7 Production growth trend of upper Agro-Industries of the Awash Valley
Annual sugar Production in quintals
Year Growth Trend Wonji Shoa Metehara Sugar factory
1990/91 - - -
1991/92 - 0.04 0.12
1992/93 - -0.12 0.03
1993/94 - -0.28 -0.01
1994/95 -0.32 -0.30 0.09
1995/96 0.36 0.09 0.31
1996/97 0.71 -0.09 0.47
1997/98 0.83 -0.09 0.80
1998/99 0.87 0.05 0.53
1999/00 1.69 - -
2000/01 2.13 - -
2001/02 1.56 - -
Source: MOFED

According to table 5.7, the upper Awash Agro-industry has consecutive increasment in its
output growth rate except the year 2000/01 for the same reason discussed above in table
5.6. The other Agro-industries like Wonji-Shoa & Metehara are having decreasing trend
over the years. For Wonji-Shoa, the highest production year was 1995/96 with growth rate
of 0.09 yet with in the next two consecutive years, the output dropped by 9%. Similarly
Metehara Sugar factory has also serious of decline in output till the year 1995/96.

5.3.2 Revenue generation to government

Government collect revenue by imposing taxes on the industry that process crops (row
materials) or directly export them. To do so, it uses either the direct tax or indirect taxes.
The revenue generated through these taxes is then partly used for such expenditure on
38
economic development, social saving, defenses etc. The Awash valley project is primarily
designed to introduce commercial crops that could generate revenue to the state. These
crops such as cotton, vegetables, citrus fruits, pulses & oil seeds have been the main stay of
national economy and sources of foreign exchange. They have also contributed in saving
foreign exchange. Some of the commercial crops such as cotton and sugar were importable
items but after the large-scale farms were constructed in the valley, lot of foreign exchange
has been retained. It was also realized that profit were impressive and investment was
being recovered after 3-4 years (Altayework, 2001)

Table 5.8: Total Revenue generated by the Wonji-Shoa sugar factory to the
state
Year 1998/99 1999/2000 2000/01 2001/02

Sale tax 39,241 40,733 46,840 45,421

Capital Charge 14,934 12,060 7,742 3,438
Income tax 22,343 27,548 30,779 27,014
Residual surplus 8,168 6,711 4,526 3,341
Source: Wonji-Shoa Sugar Factory Accounting Department

The government imposes different taxes and collects its own dividend on the farms and
factories of the valley. For example, The Wonji-Shoa sugar factory, which is totally reliant
on the sugar cane production of the valley, contribute significant amount of revenue to the
state presently, the tax imposed on domestically produced sugar include in direct taxes or
excise tax of 21%, transaction tax 7%, turn over taxes 2% and direct business income tax
50% of profit made by the factory.

Other major contribution of the basin

 Infra structure development

 Employment opportunity
 Miscellaneous benefit etc

39
 CHAPTER 6
Conclusion, Recommendation and Policy Implication

6.1 Conclusion

Rain-fed agriculture has been unable to meet the food requirement of Ethiopian population.
Even though considerable increase in production can be attained through intensification of
rain-feed agriculture, it is bound to decline due to the ever-increasing population.

Further more, Ethiopia is one of the most famine prone countries in the world. The country
has failed to produce enough food for it self and so far suffers from food insecurity over a
long period of time. Even if there are inter-related aggravating factors, serious drought
together with degradation of the environment as well as inefficient utilization of our
natural resources is making the country food insecure

Persist ant and the day-to-day increase in unreliability &unpredictability of rainfall in

Ethiopia implies poverty &food insecurity that could not be reduced by rain-fed agriculture
alone. Therefore, there is an immediate need to expand modern and organized
irrigation agriculture and utilization of our water resource efficiently.

The amount of actual irrigated land in the study area is insignificant as compared to the
existing potential. This is primarily due to various technical constraints and institutional
problems as well as multi- phase socio-Economic factors that has been existing over a long
period of time

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 6.2 Recommendation and Policy Implication

The challenges of draught and famine in Ethiopia could best be resolved by making an
efficient utilization of our resource base. This could best be resolved by making an
effective & efficient utilization of our resource base. These could be achieved through well
thought out & designed policies and strategies together with all rounded & continuous
effort. Some of the possible recommendations are.

 In relation to water resource utilizations like modern irrigation technology there is a

need to expand the capacity of training institutions to equip with the required
knowledge.
 Credit services should be available for implementation of small local irrigation
project in the rural area.
 Land tenure is the other factors that affect water resource utilization for irrigation
agriculture. So, there is a need to define property right that increase the sense of
ownership and promote the growth of irrigation agriculture.
 Lack of appropriate and affordable modern technology is one of the major
problems to expand irrigation. To address such problems there is a need to adopt
modern technologies to the country at large.

A national policy that involves all concerned bodies in irrigation development and reviving
irrigation schemes is also highly required.

41
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Annex-1 Planned Growth of Irrigated Agriculture in Ethiopia

Year
1990 2000 2010 2020 2030 2040

1 Population (million) 49.40 67.10 91.10 121.90 161.50 215.20

2 Annual per capita consumption of food (Kg) 142 160 180 200 220 240

3 Total Requirement of cereals etc. (million tons) 70.015 10.76 16.398 24.380 35.530 51.648

4 Production from Rain-fed Agriculture (million tons) 6.992 7.990 8.990 10.978 13.984 17.979

5 Balance production from Irrigated Agriculture (million tons) 0.023 2.746 7.408 13.393 21.546 33.669

6 Production rate from irrigated Agriculture (tons per ha.) 6.00 7.00 7.50 8.00 8.50 9.00

7 Required area under irrigated agriculture (mill per ha) 0.004 0.392 0.988 1.674 2.535 3.741

8 Required water for irrigation (million m3) 41 4212 10609 17.980 27.224 39.915

Source: EVDSA/WAPCOS, 1999

45