SALALE UNIVERSITY

COLLEGE OF AGRICULTURE AND NATURAL RESOURCE

DEPARTMNT OF AGRIBUSINESS AND VALU CHAIN MANAGEMENT

COURSE TITLE PROJECT PLANNING AND ANALYSIS

TITLE;THE ROLE OF AGROPROCESSING INDUSTRY DEVELOPMENT TO ECONOMIC GROWTH THE CASE OF

WHEAT PROCESSING IN ETHIOPIA

NAME ID NO

1.Akale mekbibe………………RU/1184/13

2.Meseret alehegn……………..RU/0828/13

3.Melkamu Beyabel…………..RU/0730/13

4.Abebech sitotaw…………….RU/1125/13

5.Selam Brihanu………………RU/0024/13

Submitted to Dr. mosisa.H

Submission date ;30/02/2016

Table of Contents
1Back ground..............................................................................................................................................3
Contribution to economic growth wheat agro processing industry in ethiopia............................................5
Conclusion...................................................................................................................................................7
Reference.....................................................................................................................................................8

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 Back ground
Agriculture is also the backbone of the Ethiopian economy, and more than 85%
of the national growth domestic product of the country is derived from the
agricultural sector. Agriculture is a key to Africa’s future.

The continent has most of the world’s arable land, and over half of the population
is employed under the agricultural sector and it is the largest contributor to the
total gross domestic product (GDP).

wheat is an important cereal crop which makes a significant contribution to the

development of the agricultural sector in general and to the farm household food
security status in particular.

In Ethiopia, wheat production and productivity has shown increasing rate,

especially from 2005 to 2017. This makes Ethiopia as one of the largest wheat
producers in sub-Saharan countries. Even though it shows potential, wheat
production and productivity is relatively small by global standards.

The main reason is that mostly subsistence farming of wheat is produced by

small-scale farmers through rain feed production system with less irrigated
production. Additionally, existing wheat production and marketing system is
exacerbated by constraints which have their own influence on decreasing yield of
wheat.

But, in opposite to the constraints, there are also important opportunities which
motivate wheat production and marketing trends of farmers and traders.

Finally, to bring wheat production and marketing development in Ethiopia,

attention from responsible bodies on the expansion of infrastructure, awareness
creation for wheat farmers through training on value-adding activities,
intervention on the expansion of irrigable land and motivating large-scale farms
have been suggested. The highlands of the central, south-eastern and northwest
parts of the country are the main wheat-growing areas of Ethiopia. Regionally,
the national production of wheat comes from Oromia (57.4%), Amara (27%),
SNNP (8.7%) and Tigray (6.2%) (CSA, Citation2014). Wheat has many uses like
that of other cereal crops produced in the country. s we understand from the
above-discussed information, wheat in Ethiopia is an important stable and cash
crop in increasing income of the people, food security, employment and national
GDP increment.

However, its production and marketing is challenged by factors such as shortage

of agricultural inputs, diseases and pests, shortage of infrastructures, shortage of
institutional services, shortage of storage materials, product quality, low selling
price and price cheating.

But, in opposite to these challenges, available opportunities such as government

policy, expansion of market, increasing demand for wheat and potential of the
area for wheat production encourage wheat producers and traders to engage in
wheat production and marketing activities.

Wheat is a traditional staple crop cultivated by about 5 million households in

Ethiopia and its productivity is challenged by several biotic, abiotic and socio-
economic factors. The recurrent epidemics of rust diseases have been major
challenges for wheat production in Ethiopia.

The life span of newly-released varieties is short and seed supplies of rust
resistant varieties are meagre. Most farmers do not have access to seed of high-
yielding, rust resistant wheat varieties. According to the CSA (2017), the formal
seed system accounts for less than 20% of the wheat area.

Wheat, an important staple crop in Ethiopia, is threatened by several diseases.

More than 40 wheat pathogen species have been reported in Ethiopia. The three
rust diseases (stripe rust, stem rust and leaf rust) are the most important

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(Badebo et al., 2008). Stem or black rust caused by the fungus Puccinia graminis
f. sp. tritici (Pgt) is very important in warm and humid environments.
 Contribution to economic growth wheat agro
processing industry in ethiopia
 Strong interest of national and international research organizations for crop
improvement; the importance of the crop in food self-sufficiency as a
strategic crop at regional and national levels.
 the diverse use value of the crop; and availability of human resource and
knowledge for the improvement and development of the crop were also
the other available wheat production opportunities. On the other hand, to
some extent, the built-up of asphalt road and provision of infrastructure
facilities in and around the towns were the important opportunities which
can support the marketing of wheat in Ethiopia.
 The project role of wheat processing industry development to economic
growth is to promote job creation, increase income generation, and
contribute to overall economic development.
 By investing in the development of the wheat processing industry,
countries can enhance their agricultural value chains, improve food
security, and stimulate economic growth through increased exports and
domestic consumption.
 it creates job opportunities, increases income for farmers, contributes to
food security, and promotes industrial development.
 The processing of wheat into various products such as flour, bread, pasta,
and snacks adds value to the raw material and generates revenue for the
economy.
 It contributes to food security by reducing post-harvest losses and

increasing the availability of nutritious food products. enhances the food

security status of the poor in increasing their production and productivity,
and generating income which increases their economic capacity.

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 it can play a significantly role in reducing poverty.
 Its significance is not only raised from being human food, but also as
animal fodder. In addition, the gluten and wheat starch are used in many
industries such as food additives, baby foods, cosmetics etc.
 Establishment of and support to farmers’ organizations to improve
producers’ bargaining power, to bulk produce and to lower transaction
costs, On-farm storage (e.g. warehouse receipts) for farmers to benefit
from seasonal price fluctuations, 3 Contract farming. Out-grower schemes.
 Market linkages between producers and processors, Infrastructure
development; SME development for value-added processing, Support for
certification and improving quality standards.
 Wheat agro-industrial processing activities contributes in the sector has the
potential to generate employment and galvanize business creation, and in
so doing foster Equitable Economic Growth (EEG)
Conclusion
Generally Ethiopia as one of the largest wheat producers in sub-Saharan African
countries. Even if wheat shows an increasing trend in production and productivity
domestically, still Ethiopian wheat yield is relatively small by global standards. The main
reason is mostly due to the existence of various problems.

Limited storage capacity, lack of demand due to poor quality of local wheat, lack of
grade and standardization, existence of crop worm and diseases, shortage and price of
input, shortage of infrastructure, subsistence or traditional production system, farmer
price cheating by traders and very limited irrigation access were the major production
and marketing problems for the development of Ethiopian wheat sector.

However, in opposite to the above problems, factors like suitable climate conditions;
increasing domestic demand for wheat through time; availability of motivated and
hardworking farmers; farmers’ interest to use newly coming technology; diverse use
value of wheat; presence of perennial river for irrigation; and establishment of
processing industries like pasta and macaroni factory were among the important
opportunities that encourage wheat production and marketing in Ethiopia

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 Reference
 https;//www.sia.or.tz
 https;//www.thedtic.gov.za>……> industrial government
 https;//www.enterprise development.org.UND