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Agriculture in Ethiopia is the foundation of the country's economy, accounting for half of gross domestic

product (GDP), 83.9% of exports, and 80% of total employment.

Development of agricultural output of Ethiopia in 2015 US$ since 1961

Ploughing with cattle in southwestern Ethiopia. The nation's agricultural production is overwhelmingly
of a subsistence nature.

Ethiopia's agriculture is plagued by periodic drought, soil degradation[1] caused by overgrazing,


deforestation, high levels of taxation and poor infrastructure (making it difficult and expensive to get
goods to market). Yet agriculture is the country's most promising resource. A potential exists for self-
sufficiency in grains and for export development in livestock, grains, vegetables, and fruits. As many as
4.6 million people need food assistance annually.

Agriculture accounts for 36% percent of the nation's Gross domestic Product (GDP) as of 2020.[2][3][4]
Many other economic activities depend on agriculture, including marketing, processing, and export of
agricultural products. Production is overwhelmingly of a subsistence nature, and a large part of
commodity exports are provided by the small agricultural cash-crop sector. Principal crops include
coffee, pulses (e.g., beans), oilseeds, cereals, potatoes, sugarcane, and vegetables. Exports are almost
entirely agricultural commodities, and coffee is the largest foreign exchange earner. Ethiopia is also
Africa's second biggest maize producer.[5] Ethiopia's livestock population is believed to be the largest in
Africa, and in 2006–2007 livestock accounted for 10.6% of Ethiopia's export income, with leather and
leather products making up 7.5% and live animals 3.1%.

Ethiopia is basically an agricultural and pastoral country. Agriculture dominates the Ethiopian life to the
extent that little progress can be made unless agriculture is attacked directly. Ethiopia is a country of
peasants with primitive agriculture. The physical potential for sharply increased agriculture is high but
the obstacles for development are immense still, despite recent government attempts.
The two dominant agricultural systems in Ethiopia are the mixed agriculture of the highlands, where
both crops and livestock production are integrated, and pastoralism in the lowlands. The mixed
agriculture exhibits several subsystems. Commercial agriculture using the river basins, such as the
Awash Basin, is a recent phenomenon.

Agricultural research as a formal activity and national programme is less than twenty-five years old and
has undergone three formative stages reflecting the level of government commitment to agricultural
development. The agricultural research system has now entered a new period where policy and
infrastructures are being well laid down with emphasis on rural development. But these developments
must be matched by greatly improved human and financial resource allocations.

References (94)

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The potential level of agricultural production is generally considered to be determined by physical


factors such as quality of the soil, quality and availability of water and the prevailing climate.

This paper develops the influence of the available technology as another factor explaining production
levels and influencing the assessment of production potentials.

Resource allocation for agricultural development is frequently based on expected (short term) returns
and therefore the assessment of agricultural production potentials for a certain region is an important
issue for planners in agricultural development.

In financial terms, developing regions are far less supported by agricultural research and extension than
the western countries.
As a result of various factors, agricultural technology as it has been developed over the years, turns out
to be biased by its western origin. Scientists have for long perceived agriculture in tropical areas with a
western and male bias. Economic and political dependency as well as comparative disadvantaged
positions at the international markets have led to suboptimal agricultural development and
underutilization and underdevelopment of inherent production potentials in many tropical regions.

This paper makes a plea to search for complementary technologies in order to create new development
opportunities. In Part II alternative development intervention strategies will be examined which could
lead to a narrowing of the opportunity gaps.

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