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Commercial Year

2021-2022
Farm Report

Addis Ababa
www.masaeth.com
Introduction

Most beginning commercial farmers fail due to low yields and not realizing the potential of the farm. That’s
why we created this handbook. This handbook is designed to empower current and prospective commercial
ሐfሐaሐrሐmሐeሐrሐsሐ ሐiሐnሐ ሐeሐsሐtሐaሐbሐlሐiሐsሐhሐiሐnሐgሐ ሐaሐnሐdሐ/oሐrሐ ሐbሐeሐcሐoሐmሐiሐnሐgሐ ሐaሐ ሐpሐrሐodሐtሐaሐbሐlሐeሐ ሐbሐuሐsሐiሐnሐeሐsሐsሐ ሐbሐyሐ ሐcሐrሐeሐaሐtሐiሐnሐgሐ ሐaሐwሐaሐrሐeሐnሐeሐsሐsሐ ሐaሐbሐoሐuሐtሐ ሐtሐh
ሐfሐaሐcሐtሐoሐrሐsሐtሐhሐaሐtሐhሐaሐvሐeሐaሐmሐaሐjሐoሐrሐiሐneሐuሐeሐnሐcሐeሐoሐnሐtሐhሐeሐsሐuሐcሐcሐeሐsሐsሐoሐrሐfሐaሐiሐlሐuሐrሐeሐoሐfሐaሐcሐoሐmሐmሐeሐrሐcሐiሐaሐlሐfሐaሐrሐmሐ.

In the handbook you will learn about the most important cultivation practices, marketing channels and major
constrains. We hope that this will stimulate farmers to do more research so that they can utilize the full
potential of their farm. This handbook will not include all the information necessary but it’s a great starting
point.

In this handbook the focus is on 2 major export crops; sesame and soya bean. The decision to focus on
these crops was made because of their existing importance to global and national agricultural trade and their
potential to play an even bigger role.

Company Name Masa


Email [email protected]
Website www.masaeth.com
Tel +251944309498
Table of Contents

Chapter.
1 Chapter.
2 Chapter.
3
Where it all Begins: The Production and Crop Rotation and
Understanding Soil Marketing Intercropping

Chapter.
4 Chapter.
5 Chapter.
6
The Ethiopian How to get land How to get a Loan
Agricultural Market from DBE
Chain and Key

Chapter.
7 Chapter.
8
Working together Conclusion
sounds like a
great idea.
Chapter One
v

Where it
all Begins:
Understanding
Soil
Soil structure or the way those textural com -
ponents interact with one another is criti -
cal. When ouy run a loamy soil through oury

soil.
6
Introduction

1. Where it all Begins: Understanding Soil


Crop farming, commercial or otherwise, has always required a delicate balance of many natural, human,
and environmental factors to be successful. Of these key resources, the proper management of which
ሐiሐsሐ oሐfሐtሐeሐnሐ tሐhሐeሐ dሐiሐfሐfሐeሐrሐeሐnሐcሐeሐ bሐeሐtሐwሐeሐeሐnሐ fሐaሐrሐmሐ pሐrሐodሐtሐaሐbሐiሐlሐiሐtሐyሐ aሐnሐdሐ fሐaሐiሐlሐuሐrሐeሐ, sሐoሐiሐlሐ eሐmሐeሐrሐgሐeሐsሐ aሐsሐ aሐ sሐoሐrሐtሐ oሐfሐ cሐoሐnሐdሐuሐiሐt
which the potential of other farm related resources can be realized. Some of these key functions of soil
include:

Sustaining biological diversity, activity and productivity

v
Rሐeሐgሐuሐlሐaሐtሐiሐnሐgሐwሐaሐtሐeሐrሐaሐnሐdሐsሐoሐlሐuሐtሐeሐeሐoሐw
Key functions

Filtering, buffering, degrading organic and inorganic materials

Storing and cycling nutrients and carbon

Providing physical stability and support

Soil forms gradually as a result of physical, chemical, and biological processes. Different
Forms

climatic conditions, patterns of human and animal life, or disparities in chemical and mineral
deposits create varying qualities in the soil that form over a long period of time. Both the
ሐcሐlሐaሐsሐsሐidሐcሐaሐtሐiሐoሐnሐaሐnሐdሐmሐaሐnሐaሐgሐeሐmሐeሐnሐtሐoሐfሐsሐoሐiሐlሐsሐaሐrሐeሐhሐiሐgሐhሐlሐyሐdሐeሐpሐeሐnሐdሐeሐnሐtሐoሐnሐtሐhሐeሐcሐhሐaሐrሐaሐcሐtሐeሐrሐiሐsሐtሐiሐcሐsሐaሐl
present in the soil.
Introduction
7

Soil productivity

While soil type is an important factor in soil productivity, it is not the only measure that should guide the
choice of soil management practices. There are a number of other key indicators of soil productivity that
should be foremost in the minds of farm owners and farm managers alike. These include:

Weather (rainfall,

1 Soil composition
2 temperature, relative
humidity, etc.)

3 4
Level of vegetative Irrigation potential
cover

5 Desired crop(s) for


cultivation
8 Introduction

Soil quality

ሐSሐoሐiሐlሐ eሐxሐeሐrሐtሐsሐ sሐuሐcሐhሐ aሐ pሐrሐoሐmሐiሐnሐeሐnሐtሐ rሐoሐlሐeሐ iሐnሐ tሐhሐeሐ aሐgሐrሐiሐcሐuሐlሐtሐuሐrሐaሐlሐ pሐrሐoሐcሐeሐsሐsሐ bሐeሐcሐaሐuሐsሐeሐ iሐtሐ dሐedሐnሐeሐsሐ tሐhሐeሐ pሐhሐyሐsሐiሐcሐaሐl
biological environment in which crops will be farmed. It is perhaps for this reason that the quality of soil is
determined with consideration to its physical, chemical, and biological qualities.

Given the dynamic interplay between these qualities that is often required to ensure high quality and
ሐsሐufሐcሐiሐeሐnሐtሐqሐuሐaሐnሐtሐiሐtሐiሐeሐsሐoሐfሐpሐrሐoሐdሐuሐcሐeሐi
, ሐtሐiሐsሐiሐmሐpሐoሐrሐtሐaሐnሐtሐtሐoሐpሐlሐaሐnሐi
, ሐmሐpሐlሐeሐmሐeሐnሐtሐa
, ሐnሐdሐmሐoሐnሐiሐtሐoሐrሐfሐaሐrሐmሐmሐaሐnሐaሐgሐeሐmሐeሐnሐt
that preserve and promote good soil health along each dimension.

Overall soil health, expressed through the vitality of a farm’s soil food web, is an important and often
overlooked strategy to maintain and enhance farm productivity in the long run. To replenish the depleted
chemical and biological resources to the soil to revive its agricultural potential can take some time. While it
is certainly a worthwhile pursuit, the short-run needs and expectations of a commercial farm often require
careful considerations regarding which varieties of which crops to grow in which agro-ecological zones and
a suitable timeline of farm activities such as planting and weeding that can ensure the highest possible yield.
Figure 1: Soil quality
Chapter two
The Production
and Marketing
of Key Export
Crops
This chapter is about the production and
marketing of Sesame and Soya bean. These
crops are very important for the economy
and have the potential to contribute even
more.
12 The Production and Marketing of Key Export Crops

2. The Production and Marketing of Key Export Crops

2.1 Sesame

2.1.1 Sesame Growth Conditions: Considerations, and Recommendations

ሐIሐnሐ tሐhሐeሐ lሐiሐsሐtሐ aሐnሐdሐ tሐaሐbሐlሐeሐ tሐhሐaሐtሐ fሐoሐlሐlሐoሐwሐ,rሐeሐaሐdሐeሐrሐsሐ cሐaሐnሐ dሐnሐdሐ aሐ sሐuሐmሐmሐaሐrሐyሐ oሐfሐ tሐhሐeሐ iሐdሐeሐaሐlሐ cሐoሐnሐdሐiሐtሐiሐoሐnሐsሐ uሐnሐdሐeሐrሐ wሐhሐiሐc
cultivated. It also attempts to provide an overview of key risks that sesame farmers face and some of the
strategies they should pursue to address or prevent them.

List of key considerations

1
Valleys and depressions, with their increased risk for waterlogging, pose a threat to
the sesame crop which thrives in the presence of good drainage.

2
While sandy loam soils offer an ideal physical environment for the sesame crop to
thrive, other soil varieties with smaller particle sizes could offer similar production
levels if they are well-drained.

3
If plant densities are found to exceed 25 plants per square meter, infected and
undesirable plants should be removed until a plant population of 225,000 - 250,000
crops is achieved.

4
Commercial farms should always conduct a farm soil assessment to prevent
ሐiሐnሐefሐcሐiሐeሐnሐcሐiሐeሐsሐ ሐoሐfሐ ሐaሐdሐdሐiሐnሐgሐ ሐtሐoሐoሐ ሐmሐuሐcሐhሐ ሐoሐrሐ ሐtሐoሐoሐ ሐlሐiሐtሐtሐlሐeሐ ሐ ሐfሐeሐrሐtሐiሐlሐiሐzሐeሐrሐ ሐwሐhሐiሐcሐhሐ ሐcሐaሐnሐ ሐlሐeሐaሐdሐ ሐtሐo
production costs and lower production quantities. The long term productivity of the
ሐsሐoሐiሐlሐmሐaሐyሐaሐlሐsሐoሐbሐeሐsሐiሐgሐnሐidሐcሐaሐnሐtሐlሐyሐaሐfሐfሐeሐcሐtሐeሐdሐ;bሐoሐtሐhሐfሐoሐrሐsሐeሐsሐaሐmሐeሐaሐnሐdሐoሐtሐhሐeሐrሐcሐrሐoሐpሐs
The Production and Marketing of Key Export Crops
13

Table 1: Growth Conditions for Sesame Cultivation


14 The Production and Marketing of Key Export Crops

2.1.2 Sesame Varieties:

Sesame is a versatile plant capable of growing in a diverse set of environmental conditions. Many top sesame
producers, including Ethiopia, are home to a diverse set of wild and cultivated varieties of sesame. Of the
14 wild and cultivated varieties of sesame cultivated in the diverse agro-ecologies of Ethiopia, three are the
most prominent. The Humera, Gonder, and Wollega varieties - named after the regions where they are most
widely cultivated - represent the lion’s share of sesame produced and exported in Ethiopia. The northwestern
sesame varieties, mainly Humera and Gondar, are highly suitable for raw use; owing to their desirable even
color and exceptional aroma and taste. The southwestern varieties on the other hand, mainly the Wollega type
in this case, is uniquely high in oil content. It is commonly used for making oil which fetches slightly lower
prices on the export market. The following table provides a brief overview of these main sesame varieties.

Sesame is a versatile plant capable of growing in a Ethiopia. The northwestern sesame varieties, mainly
diverse set of environmental conditions. Many top Humera and Gondar, are highly suitable for raw use;
sesame producers, including Ethiopia, are home to a owing to their desirable even color and exceptional
diverse set of wild and cultivated varieties of sesame. aroma and taste. The southwestern varieties on the
Of the 14 wild and cultivated varieties of sesame other hand, mainly the Wollega type in this case, is
cultivated in the diverse agro-ecologies of Ethiopia, uniquely high in oil content. It is commonly used for
three are the most prominent. The Humera, Gonder, making oil which fetches slightly lower prices on the
and Wollega varieties - named after the regions export market. The following table provides a brief
where they are most widely cultivated - represent overview of these main sesame varieties.
the lion’s share of sesame produced and exported in
The Production and Marketing of Key Export Crops
15

Table 2: Overview of the top three varieties of Sesame cultivated in Ethiopia


16 The Production and Marketing of Key Export Crops

2.1.3 Sesame Production: Recommended Techniques


Occurrence and Selection

Part One: General Timeline of Sesame Cultivation

Among the common mistakes that limit the success of commercial farms is the use of ineffective production
techniques that introduce additional risks instead of responding to or even preventing them. The sesame
sector in Ethiopia is no exception. ሐIሐnሐsሐufሐcሐiሐeሐnሐtሐ pሐlሐaሐnሐn , inadequate
ሐiሐnሐg knowledge and information, risk-prone
harvesting and storage practices have negatively impacted the transformational potential of a crop like
ሐsሐeሐsሐaሐmሐeሐI. ሐnሐaሐgሐrሐiሐcሐuሐlሐtሐuሐrሐaሐlሐpሐrሐoሐdሐuሐcሐtሐiሐoሐnሐt , ሐhሐeሐefሐcሐaሐcሐyሐoሐfሐeሐaሐcሐhሐaሐcሐtሐiሐvሐiሐtሐyሐiሐsሐhሐiሐgሐhሐlሐyሐcሐoሐnሐdሐiሐtሐiሐoሐnሐaሐlሐoሐnሐtሐhሐeሐpሐrሐoሐpሐeሐr
of the necessary preceding steps. In rain-fed agriculture, this interdependence is even more pronounced.
ሐTሐhሐeሐ pሐrሐeሐsሐeሐnሐcሐeሐ oሐfሐ aሐbሐsሐeሐnሐcሐeሐ oሐfሐ mሐoሐiሐsሐtሐuሐrሐeሐ hሐaሐsሐ aሐ sሐiሐgሐnሐidሐcሐaሐnሐtሐ iሐmሐpሐaሐcሐtሐ oሐnሐ tሐhሐeሐ oሐrሐdሐeሐrሐ aሐnሐdሐ uሐrሐgሐeሐnሐcሐyሐ oሐfሐ fሐaሐrሐmሐ aሐcሐtሐiሐv
ሐTሐhሐeሐ pሐrሐoሐcሐeሐsሐsሐ oሐfሐ sሐeሐsሐaሐmሐeሐ iሐsሐ eሐqሐuሐaሐlሐlሐyሐ iሐneሐuሐeሐnሐcሐeሐdሐ bሐyሐ tሐhሐeሐ cሐhሐoሐsሐeሐnሐ vሐaሐrሐiሐeሐtሐyሐ oሐfሐ sሐeሐsሐaሐmሐeሐ; dሐeሐpሐeሐnሐdሐiሐnሐgሐ oሐnሐ wሐhሐiሐcሐhሐ cሐrሐi
milestones in the plant life cycle can vary greatly.

Regardless of the chosen variety or growing conditions, the earliest stages in the life of the sesame plant
lay the foundation of sound plant populations capable of producing maximum yield with the resources they
receive. There are two important factors in the establishment of the sesame crop; depending on whether the
ሐfሐaሐrሐmሐ iሐsሐ rሐaሐiሐnሐ-fሐeሐdሐ oሐrሐ iሐrሐrሐiሐgሐaሐtሐeሐdሐ. Fሐoሐrሐ rሐaሐiሐnሐ-fሐeሐdሐ sሐeሐsሐaሐmሐeሐ, mሐoሐiሐsሐtሐuሐrሐeሐ lሐeሐvሐeሐlሐsሐ aሐrሐeሐ tሐhሐeሐ dሐeሐcሐiሐdሐiሐnሐgሐ fሐaሐcሐtሐoሐrሐ fሐoሐrሐ sሐuf
establishment. It is recommended that rain-fed farms plant their seeds immediately after the onset of rain-
fall. In the case of irrigated sesame production, temperature emerges as the less controllable variable than
ሐmሐoሐiሐsሐtሐuሐrሐeሐR. ሐaሐiሐnሐ-fሐeሐdሐsሐeሐsሐaሐmሐeሐsሐhሐoሐuሐlሐdሐbሐeሐpሐlሐaሐnሐtሐeሐdሐfሐrሐoሐmሐmሐiሐdሐ-Jሐuሐnሐeሐtሐoሐmሐiሐdሐ-Jሐuሐlሐyሐ(tሐhሐrሐoሐuሐgሐhሐoሐuሐtሐIምሌ). ሐrሐrሐiሐgሐaሐtሐeሐdሐfሐaሐrሐmሐsሐhሐa
more than one growing season. Based on temperature conditions, planting for main season sesame should
ሐbሐeሐcሐoሐmሐpሐlሐeሐtሐeሐdሐbሐyሐmሐiሐdሐ-Jሐuሐlሐyሐ(lሐaሐtሐeሐw
ምሌ) ሐhሐeሐrሐeሐaሐsሐpሐlሐaሐnሐtሐiሐnሐgሐfሐoሐrሐoሐfሐfሐ-sሐeሐaሐsሐoሐnሐsሐeሐsሐaሐmሐeሐsሐhሐoሐuሐlሐdሐbሐeሐdሐoሐnሐeሐbሐyሐmሐiሐdሐ-nሐoሐvሐeሐmሐbሐeሐrሐ
(early).
The Production and Marketing of Key Export Crops
17

The following table aims to provide a timeline of key activities in sesame production. As mentioned above,
ሐtሐhሐeሐvሐaሐrሐiሐeሐtሐyሐoሐfሐsሐeሐsሐaሐmሐeሐgሐrሐoሐwሐnሐaሐnሐdሐtሐhሐeሐfሐaሐrሐmሐ-lሐeሐvሐeሐlሐcሐoሐnሐdሐiሐtሐiሐoሐnሐsሐoሐnሐwሐhሐiሐcሐhሐiሐtሐwሐiሐlሐlሐbሐeሐcሐuሐlሐtሐiሐvሐaሐtሐeሐdሐcሐaሐnሐcሐrሐeሐa
differences in production techniques. The table is intended to summarize information that can be effectively
used by farmers growing different types of sesame in different ecological zones. Where possible, range values
as well as alternate courses of action are offered, should the provided information prove to be unsuitable for
some major varieties and production hubs.

Table 3: General Timeline and recommended Guidelines for Sesame Production


18 The Production and Marketing of Key Export Crops

Table 3: General Timeline and recommended Guidelines for Sesame Production


The Production and Marketing of Key Export Crops
19

continued. . .
20 The Production and Marketing of Key Export Crops

Part two: Pest and Disease Management in Sesame Cultivation

Once successful crop establishment is achieved, with the necessary land preparation and crop spacing
practices, the next threat to a good harvest comes in the form of so-called ‘biotic’ threats. In crop farming,
these biotic threats refer to weeds, pests, and diseases that can compromise the integrity of some or all
plants. The likelihood of these issues increases with monocropping and size of the farm. The sesame seed
is rich in oils and other nutrients. Many of the pests that affect sesame emerge during the harvesting and
storage phases when the crop is most attractive to potential pests. By practicing appropriate practices,
farmers can minimize the likelihood of both storage and harvest infestations. These include:

Timely harvesting to reduce Proper wedding (before first

1 the amount of time for field


infestation
2 plow and at the recommended
intervals) to remove potential
hosts during the growing period

Store in a clean room with a

3 4
Thrash within 10 - 15 days of
concrete floor, in double-line harvesting
polyethylene bags

Much like the sesame plant, the pests and diseases of microorganisms threats like bacterial blight
that affect it rely on a delicate balance of conditions and parasitic fungi. Simply put, improper farming
to emerge and survive. Until harvest, many insect techniques are often the cause or catalyst for
pests remain in their pre-adult stages as the sesame pest and disease infestation while the use of good
plant itself is of little use to them. But their life agricultural practices greatly minimizes the risk of
cycles can and should be disrupted before mature ሐtሐhሐeሐsሐeሐrሐiሐsሐkሐsሐeሐmሐeሐrሐgሐiሐnሐgሐiሐnሐtሐhሐeሐdሐrሐsሐtሐpሐlሐaሐcሐeሐ.
ሐpሐeሐsሐtሐsሐeሐmሐeሐrሐgሐeሐaሐnሐdሐiሐnሐfሐeሐsሐtሐtሐhሐedሐሐ eሐlሐdሐI. ሐnሐmሐaሐnሐyሐcሐaሐsሐeሐsሐt
, ሐhሐeሐ
hosts of pests and other disease carrying insects In terms of risk prevention and mitigation, farm
are weeds. With their ability to quickly mature and level factors are found to be the deciding factor as
multiply, they provide an ideal breeding ground for to the appropriate level of response and course of
many of the pests that commonly infest sesame action. An overview of risks, especially in the form of
plantations.Waterlogging, a critical climatic threat pests and disease, is provided along with generally
to the sesame plant, often causes the most damage effective measures for prevention and intervention in
by creating ideal conditions for the development the following table.
The Production and Marketing of Key Export Crops
21

Farmers should note that quantities for application are generally dependent on the size of the farm and the level
of infestation. While it is possible to determine whether or not a pest or disease infestation is taking place, they
should consult their staff and other trained professionals regarding the most appropriate responses.r irrigated.
For rain-fed sesame, moisture levels are the deciding factor for sufficient crop establishment. It is recommended that
rain-fed farms plant their seeds immediately after the onset of rain-fall. In the case of irrigated sesame production,
temperature emerges as the less controllable variable than moisture. Rain-fed sesame should be planted from mid-June
Table 4: Overview and Management of Common Sesame Pests and Diseases
22 The Production and Marketing of Key Export Crops

2.1.4 Sesame Grading: Overview and Parameters

ሐBሐeሐiሐnሐgሐ aሐ pሐrሐodሐtሐaሐbሐlሐeሐ fሐaሐrሐmሐeሐrሐ oሐfሐtሐeሐnሐ iሐnሐcሐlሐuሐdሐeሐsሐ uሐnሐdሐeሐrሐsሐtሐaሐnሐdሐiሐnሐgሐ tሐhሐeሐ mሐaሐrሐkሐeሐtሐ aሐnሐdሐ hሐaሐvሐiሐnሐgሐ aሐ sሐeሐnሐsሐeሐ fሐoሐrሐ tሐhሐe
needs. Therefore, once the crops are harvested and the farm season is coming to an end, everything is left to
proper post-harvest management, marketing, and sales strategy. Quality grading is a post-harvest practice
that consists of classifying the crops into grades or categories regarding their quality.

Quality grading is an important post-harvest practice for farmers who care about their customers as well
as their own reputation on the market. Farmers who practice quality grading can adjust to market demands
more easily. For instance, crops that are higher in quality can achieve a higher price. On the other hand, crops
that are lower in quality can be sold for the processing industry. In this manner, quality grading can help
ሐfሐaሐrሐmሐeሐrሐsሐ sሐeሐtሐ tሐhሐeሐiሐrሐ mሐaሐrሐkሐeሐtሐ gሐoሐaሐlሐsሐ aሐnሐdሐ dሐnሐdሐ aሐdሐeሐqሐuሐaሐtሐeሐ bሐuሐsሐiሐnሐeሐsሐsሐ mሐoሐdሐeሐlሐsሐ. Aሐcሐcሐoሐrሐdሐiሐnሐgሐ tሐoሐ tሐhሐeሐ Eሐtሐhሐiሐoሐpሐiሐaሐnሐ C
Exchange (ECX), Sesame Seeds are graded on color, odor, presence of foreign matter including insects and
mold; without exceeding a moisture level of 10% (by weight). The grading criteria for commonly cultivated
sesame varieties are as follows:

Table 5: ECX Sesame Grading Guidelines


The Production and Marketing of Key Export Crops
23
24 The Production and Marketing of Key Export Crops

The sesame varieties commonly cultivated in Ethiopia range anywhere between 43 to 56% in oil content while
recording average moisture levels of between 7% to 9%. ECX qualities diverge somewhat from international
standards. Since international guidelines are in line with domestic ones, and more importantly, since the
harvest is destined for international markets, farmers should keep themselves apprised of any changes in
order to produce competitive qualities of the commodity. A summary of international guidelines (ca. 2007)
is provided below.

Table 6: International Sesame Grading Guidelines

ሐIሐnሐt
20/1, ሐhሐeሐaሐrሐeሐaሐuሐnሐdሐeሐrሐsሐeሐsሐaሐmሐeሐcሐuሐlሐtሐiሐvሐaሐtሐiሐoሐnሐwሐaሐsሐh
520, ሐeሐcሐtሐaሐrሐeሐsሐT. ሐhሐedሐሐ gሐuሐrሐeሐiሐsሐp
13 ሐeሐrሐcሐeሐnሐtሐlሐoሐwሐeሐrሐtሐhሐaሐnሐtሐhሐeሐ
previous year’s; a dip attributed to the onset of the COVID-19 pandemic and related policy measures aimed at
stemming potential disruptions to local food supplies. The production of food crops, especially sorghum, in
the place of sesame has taken place in key sesame producing hubs like Tigray and Amhara. Hopes for better
ሐpሐrሐiሐcሐeሐsሐhሐaሐvሐeሐaሐlሐsሐoሐmሐoሐtሐiሐvሐaሐtሐeሐdሐaሐsሐwሐiሐtሐcሐhሐtሐoሐaሐlሐtሐeሐrሐnሐaሐtሐiሐvሐeሐoሐiሐlሐsሐeሐeሐdሐsሐlሐiሐkሐeሐsሐuሐneሐoሐwሐeሐrሐsሐeሐeሐdሐsሐaሐnሐdሐsሐoሐyሐaሐbሐe
guidelines, erratic weather patterns, and the limited availability of agrochemicals have led to rising sesame
production costs in recent years as well.
The Production and Marketing of Key Export Crops
25

2.1.5 Sesame Trading: Key Facts, Market and Price Trends

ሐIሐnሐt
20/1, ሐhሐeሐaሐrሐeሐaሐuሐnሐdሐeሐrሐsሐeሐsሐaሐmሐeሐcሐuሐlሐtሐiሐvሐaሐtሐiሐoሐnሐwሐaሐsሐh
520, ሐeሐcሐtሐaሐrሐeሐsሐT. ሐhሐedሐሐ gሐuሐrሐeሐiሐsሐp
13 ሐeሐrሐcሐeሐnሐtሐlሐoሐwሐeሐrሐtሐhሐaሐnሐtሐhሐeሐ
previous year’s; a dip attributed to the onset of the COVID-19 pandemic and related policy measures aimed at
stemming potential disruptions to local food supplies. The production of food crops, especially sorghum, in
the place of sesame has taken place in key sesame producing hubs like Tigray and Amhara. Hopes for better
ሐpሐrሐiሐcሐeሐsሐhሐaሐvሐeሐaሐlሐsሐoሐmሐoሐtሐiሐvሐaሐtሐeሐdሐaሐsሐwሐiሐtሐcሐhሐtሐoሐaሐlሐtሐeሐrሐnሐaሐtሐiሐvሐeሐoሐiሐlሐsሐeሐeሐdሐsሐlሐiሐkሐeሐsሐuሐneሐoሐwሐeሐrሐsሐeሐeሐdሐsሐaሐnሐdሐsሐoሐyሐaሐbሐe
guidelines, erratic weather patterns, and the limited availability of agrochemicals have led to rising sesame
production costs in recent years as well.

ሐSሐeሐsሐaሐmሐeሐpሐrሐoሐdሐuሐcሐtሐiሐoሐnሐiሐsሐeሐxሐpሐeሐcሐtሐeሐdሐtሐoሐdሐeሐcሐlሐiሐnሐeሐfሐoሐrሐyሐeሐtሐaሐnሐoሐtሐhሐeሐrሐyሐeሐaሐrሐm
; ሐoሐsሐtሐlሐyሐdሐuሐeሐtሐoሐpሐeሐrሐsሐiሐsሐtሐiሐnሐgሐcሐoሐneሐiሐcሐtሐs
tensions in major sesame producing hubs. Transitions to alternative crops including sorghum, mung beans,
soybeans, and ሐsሐuሐneሐoሐwሐeሐrሐ ሐsሐeሐeሐdare ሐsሐ also expected to take place. Regions such as Oromia, Benshangul
Gumuz, Southern Nations, Nationalities, and People (SNNP), and Somali offer immense potential for sesame
cultivation and can even offset potential medium to long-term production disruptions in Amhara and/or
Tigray.

The potential to cultivate sesame in areas that are not necessarily top producing regions exists. With the right
management techniques and interventions, farmers choosing to cultivate the crop in regions like Oromia,
SNNP, Somali, and Benishangul Gumuz have the opportunity to grow organic sesame on virgin lands. With
the rise in the demand for organic goods, farmers in these regions not only have an opportunity to enter the
production of a highly lucrative crop, but can command higher prices for their sesame (regardless of variety)
if production is done organically.

That being said, many key sesame importers seem most concerned with quality (in terms of freedom from
impurities) and price when making the decision of what kind of sesame to buy and from where. Additionally,
ሐdሐifሐcሐuሐlሐtሐiሐeሐsሐ ሐiሐnሐ ሐtሐrሐaሐcሐkሐiሐnሐgሐ ሐaሐnሐdሐ ሐtሐrሐaሐcሐiሐnሐgሐ ሐaሐrሐeሐaሐsሐ ሐoሐfሐ ሐoሐrሐiሐgሐiሐnሐ ሐaሐsሐ ሐwሐeሐlሐlሐ ሐaሐsሐ ሐtሐhሐeሐ ሐlሐaሐcሐkሐ ሐoሐfሐ ሐcሐrሐeሐdሐiሐbሐlሐeሐ ሐcሐeሐrሐtሐidሐcሐaሐtሐi
growers make the pursuit of organic sesame farming as challenging as it is rewarding.

Industry experts mention that international price volatility, ሐcሐuሐrሐrሐeሐnሐcሐyሐ eሐuሐcሐtሐuሐaሐt, ሐiexcessive ሐoሐnሐs speculations,
distortion of local market price, illicit trade, and squeezed productivity levels are the main reasons for the
deteriorating export trade performance during the previous years. The distortion of local market price was
ሐpሐaሐrሐtሐiሐcሐuሐlሐaሐrሐlሐyሐeሐvሐiሐdሐeሐnሐtሐfሐrሐoሐmሐtሐhሐeሐsሐiሐgሐnሐidሐcሐaሐnሐtሐpሐrሐiሐcሐeሐdሐiሐsሐpሐaሐrሐiሐtሐyሐbሐeሐtሐwሐeሐeሐnሐeሐxሐpሐoሐrሐtሐpሐrሐiሐcሐeሐsሐaሐnሐdሐlሐoሐcሐaሐlሐtሐrሐaሐd
Local prices were considerably above international market prices over the past several years, and it has been
common among some Ethiopian exporters to sell oilseeds and other agricultural export commodities at a
loss margins and then to compensate by importing other products that may be sold locally with a higher
ሐpሐrሐodሐtሐmሐaሐrሐgሐiሐnሐ.
26 The Production and Marketing of Key Export Crops

2.1.6 Main Challenges and Opportunities for Producing


Occurrence and Selection

I.Farm-level:

Sesame cultivation can be made even more profitable by adhering to recommended good agricultural practices
that can allow farmers to improve the quality and quantity of their produce with little to no additional cost. That
being said, if appropriate varieties of sesame are cultivated (in terms of climatic adaptation and market demand),
and if their value is protected during production and after harvest; targeted investments in mechanization,
improved seeds and other modern inputs like agrochemicals can yield significant returns. In a study conducted
in Humera in 2015, the gross margin for producers was found to be as high as 38%; even among smallholder
producers. The likelihood and severity of losses during and after harvesting sesame are quite high. Conservative
estimates put the figure around 30%; i.e. upto 30% of the total harvest could be lost if sesame is harvested too
late and/or with ineffective techniques. Since production (including harvesting) currently relies on manual labor,
Farmers can even experience an inverse relationship between area under cultivation and overall productivity.
Since manual labor is most effective on smaller farms, as the acreage under cultivation is increased (without
replacing manual labor). Productivity can drop dramatically and farmers can find sesame cultivation to be
unprofitable. Without the use of mechanization, especially during land preparation and harvesting, the success
in large-scale agriculture of any sort is a fool’s errand.

II. Institutional:

Since trading through the Ethiopian Commodity Exchange (ECX) either at primary markets or the central market
is the only outlet for exporting sesame, special considerations should be given to comply with the quality
guidelines provided by ECX. Furthermore, export oriented commercial farmers of any agricultural commodities
must acknowledge the importance of ECX as both a platform and a partner. Farmers can access regularly
updated trade volumes, prices, and other relevant market information from the institution at very little cost.
Since export commodities like sesame are destined for the export market, they are incredibly sensitive to market
volatilities in price and demand as well as competition from other major sesame producing countries. Market
information can be very useful in deciding what to plant and when to harvest; two decisions that have by far the
most impact on the financial performance of the farm.

By aiming to meet the minimum marketing quantity of 50 quintals, farmers can secure higher margins. At current
average productivity levels of around 7 quintals per hectare, meeting this minimum quantity requires just over
7 hectares of land planted with sesame, if post-harvest losses are assumed to be zero. With standard sesame
post-harvest losses estimated to be as high as 30% percent, securing a minimum 50 quintal harvest requires
a cultivated area of just over 8.5 hectares. Good agricultural practices, including irrigation, mechanized land
operations, as well as nutrient and pest management practices, many of which are discussed in this handbook,
have been estimated to raise yield to around 16 quintals per hectare. This can theoretically make it possible to
cultivate 50 quintals on as little as 3 hectares of land under sesame cultivation.
The Production and Marketing of Key Export Crops
27

III. National

Ethiopia has many competitive advantages when it comes to its ability to produce different kinds of sesame under varying
soil-climate dynamics. The country’s proximity to Middle Eastern markets also gives it an advantage over some other sesame
producing countries especially those in Asia (i.e. China and India). Israel, which is among the top importers of sesame in
the world, is one of the biggest importers of sesame from Ethiopia as well. For political reasons, sesame produced in ‘Arab’
countries like Sudan face difficulty entering a key sesame importing market. A long history of sesame cultivation also works
in Ethiopia’s favor. The efficacy of even rudimentary management techniques as well as the attention the crop receives from
governmental and nongovernmental actors is immense. Moreover, the limited availability of modern inputs (while a serious
production bottleneck) has allowed many sesame farmers in Ethiopia to cultivate organic sesame - which is growing in
demand and value.

IV. International:

Producers of any export commodity must be aware of (and adapt to) changes in the international realm. These
changes might come in the form of supply, demand, or price disruptions (or any combination of the three) and
often result in measurable impacts on producers’ bottom lines. While many of these risks are often industry-
specific, producers can also find themselves affected by the health of the overall global economy - as in cases of
unforeseen and pronounced shocks like the COVID-19 Pandemic. In other cases, depending on the importance
of a specific export market (i.e. importing country), plays a key role in determining traded volumes and prices.
Exporting sesame is no different. As an agricultural commodity the price of sesame on the international market
can be volatile. The acceptable quality of marketed sesame is also constantly increasing. Buyers, especially
of raw sesame, expect their seeds to be adequately tracked and traced to their area of origin. With growing
consumer demand for healthier alternatives, sellers of processed foodstuffs derived from sesame are having
to compete on the basis of the ‘purity’ of the sesame seeds used in their formulations. In more recent years,
the COVID-19 pandemic and ongoing instability in key sesame producing regions have led to a decline in the
demand for and the supply of Ethiopian sesame on the international market.

The Middle East and Asia have consistently remained the top destinations for Ethiopian sesame. Israel, the
United Arab Emirates, Saudi Arabia, China, and Singapore are the main destinations for sesame produced in
Ethiopia. The top competitor facing Ethiopian sesame producers in the international market is Sudan. Sudanese
sesame varieties are similar in type and desirability to Ethiopian varieties grown in the Northwest (Humera and
Metema). Sudanese sesame producers also enjoy a proximity to key middle Eastern markets but also have
direct access to the Red Sea.
28 The Production and Marketing of Key Export Crops

2.2 Soybeans/Soya Bean: Understanding Soil


Crop farming, commercial or otherwise, has always required a delicate balance of many natural, human, and
environmental factors to be successful.

Special considerations

Temperatures exceeding the indicated minimum and maximum value can cause delays in germination,
eሐoሐwሐeሐrሐiሐnሐgሐ, ሐaሐnሐdሐ ሐmሐaሐtሐuሐrሐiሐtሐyሐ.ሐTሐeሐmሐpሐeሐrሐaሐtሐuሐrሐeሐsሐ ሐbሐeሐyሐoሐnሐdሐ ሐ40 ሐdሐeሐgሐrሐeሐeሐsሐ ሐcሐeሐlሐsሐiሐuሐsሐ ሐhሐaሐvሐeሐ ሐbሐeሐeሐnሐ ሐoሐbሐsሐeሐrሐvሐeሐdሐ ሐtሐoሐ ሐcሐaሐuሐsሐeሐ ሐc
failure for soya beans.

The moisture requirement of soya beans is relatively high; especially during their early stages of growth.
Farmers cultivating soya bean under rain fed conditions are advised to pursue shorter maturing varieties
as twheir moisture needs are more easily met under those conditions while yield losses associated with
delayed (or early) rainfall can be better controlled for these varieties.

Soya beans tend to perform better with smaller particle soil types that offer better support during
ሐgሐeሐrሐmሐiሐnሐaሐtሐiሐoሐnሐaሐnሐdሐvሐeሐgሐeሐtሐaሐtሐiሐoሐnሐ.Lሐaሐrሐgሐeሐsሐcሐaሐlሐeሐcሐuሐlሐtሐiሐvሐaሐtሐiሐoሐnሐiሐsሐdሐifሐcሐuሐlሐtሐiሐfሐnሐoሐtሐiሐmሐpሐoሐsሐsሐiሐbሐlሐeሐiሐnሐhሐiሐgሐhሐlሐyሐs
ሐeሐxሐtሐrሐeሐmሐeሐlሐyሐsሐmሐaሐlሐlሐpሐaሐrሐtሐiሐcሐlሐeሐsሐiሐzሐeሐsሐtሐhሐaሐtሐaሐrሐeሐpሐrሐoሐnሐeሐtሐoሐcሐoሐmሐpሐaሐcሐtሐiሐnሐgሐcሐaሐnሐmሐaሐkሐeሐiሐtሐdሐifሐcሐuሐlሐtሐfሐoሐrሐsሐeሐeሐdሐlሐiሐnሐg

The addition of fertilizers should always take place after proper soil testing. Soya beans are especially
sensitive to highly acidic soils and improper application of nitrogen or phosphorus fertilizers can seriously
ሐcሐoሐmሐpሐrሐoሐmሐiሐsሐeሐaሐfሐaሐrሐmሐeሐrRሐsሐaሐbሐiሐlሐiሐtሐyሐtሐoሐcሐuሐlሐtሐiሐvሐaሐtሐeሐsሐoሐyሐaሐbሐeሐaሐnሐsሐ(pሐrሐodሐtሐaሐbሐlሐyሐ)fሐoሐrሐsሐeሐvሐeሐrሐaሐlሐmሐoሐnሐtሐhሐsሐaሐfሐtሐeሐrሐwሐa
The Production and Marketing of Key Export Crops
29

Table 7: Growth Conditions for Soya Bean Cultivation


30 The Production and Marketing of Key Export Crops

2.2.2 Soya Bean Varieties: Occurrence and Selection

Since it is all around adjusted to lowland to mid height agro-ecologies of the nation where the vast majority
of the potential arable land is found.The main soybean producing regions of Ethiopia are Western, South
western, Southern and North-western parts of the nation. The entire low to mid altitude maize belt areas of
the country are also appropriate for soybean production. In addition, Ethiopia’s strategic location closer to
the world’s largest consumers of soybean and soybean products is also a feature which makes it a great
open door for the nation to target soybean as potential export commodity and import substitution.

Soybean grows in areas where maize and common beans are grown. It grows to a height of 60–120 cm,
maturing in 3 to 6 months depending on variety, climate, and location. Soybean is drought tolerant. Altitude
ሐiሐneሐuሐeሐnሐcሐeሐsሐ ሐtሐeሐmሐpሐeሐrሐaሐtሐuሐrሐeሐ ሐtሐhሐaሐtሐ ሐiሐnሐ ሐtሐuሐrሐnሐ ሐaሐfሐfሐeሐcሐtሐsሐ ሐtሐhሐeሐ ሐiሐnሐiሐtሐiሐaሐtሐiሐoሐnሐ ሐoሐfሐ eሐoሐwሐeሐrሐiሐnሐgሐ ሐaሐnሐdሐ ሐmሐaሐtሐuሐrሐiሐtሐyሐ.ሐAሐtሐ ሐvሐeሐr
eሐoሐwሐeሐrሐiሐnሐgሐ mሐaሐyሐ nሐoሐtሐ oሐcሐcሐuሐrሐ aሐnሐdሐ tሐhሐeሐ cሐrሐoሐpሐ rሐeሐmሐaሐiሐnሐsሐ vሐeሐgሐeሐtሐaሐtሐiሐvሐeሐ. Sሐoሐyሐbሐeሐaሐnሐ iሐsሐ tሐhሐeሐrሐeሐfሐoሐrሐeሐ aሐ cሐrሐoሐpሐ tሐhሐaሐtሐ rሐeሐqሐuሐiሐr
climates and is suitable for low to medium altitudes. It grows best when planted in pure stands. The presence
ሐoሐfሐ Rሐhሐiሐzሐoሐbሐiሐuሐmሐ jሐaሐpሐoሐnሐiሐcሐuሐmሐ iሐnሐ tሐhሐeሐ rሐoሐoሐtሐsሐ oሐfሐ sሐoሐyሐbሐeሐaሐnሐ eሐnሐaሐbሐlሐeሐsሐ tሐhሐeሐ cሐrሐoሐpሐ tሐoሐ dሐxሐ nሐiሐtሐrሐoሐgሐeሐnሐ iሐnሐ tሐhሐeሐ sሐoሐiሐlሐ cሐoሐnሐtሐr
improved soil fertility.

Depending on local climate dynamics, different varieties of soybeans are recommended for cultivation in the
different agro ecologies that offer an ideal set of growth factors. These varieties, 26 in total, are differentiated
by the length of time they require to mature; based on which their suitability for different agro ecologies is
determined. The 8 early maturing varieties are recommended for production in areas with relatively limited
rainfall, the 9 late maturing varieties are recommended for higher altitudes, while the remaining 9 medium
maturing varieties are recommended for medium altitude areas.
The Production and Marketing of Key Export Crops
31

Table 8: Characteristics of Key Soya Bean Varieties

2.2.3 Recommended Soybean Production Techniques

Part one: Chronological Overview of Farm Activities in Soybean Cultivation

The following table aims to provide a timeline of key activities in sesame production. As mentioned above,
ሐtሐhሐeሐvሐaሐrሐiሐeሐtሐyሐoሐfሐsሐeሐsሐaሐmሐeሐgሐrሐoሐwሐnሐaሐnሐdሐtሐhሐeሐfሐaሐrሐmሐ-lሐeሐvሐeሐlሐcሐoሐnሐdሐiሐtሐiሐoሐnሐsሐoሐnሐwሐhሐiሐcሐhሐiሐtሐwሐiሐlሐlሐbሐeሐcሐuሐlሐtሐiሐvሐaሐtሐeሐdሐcሐaሐnሐcሐrሐeሐa
differences in production techniques. The table is intended to summarize information that can be effectively
used by farmers growing different types of sesame in different ecological zones. Where possible, range values
as well as alternate courses of action are offered, should the provided information prove to be unsuitable for
some major varieties and production hubs.
32 The Production and Marketing of Key Export Crops

Table 9: Timeline of Recommended Soya Bean Production Techniques


The Production and Marketing of Key Export Crops
33
34 The Production and Marketing of Key Export Crops

Part Two: Pest and Disease Management

Similar to sesame, soybeans are a resilient crop capable of withstanding diverse environments and a number
ሐoሐfሐsሐtሐrሐeሐsሐsሐoሐrሐsሐ.Tሐhሐaሐtሐbሐeሐiሐnሐgሐsሐaሐiሐdሐ,iሐnሐtሐhሐeሐpሐrሐodሐtሐ-mሐaሐxሐiሐmሐiሐzሐiሐnሐgሐiሐnሐtሐeሐrሐeሐsሐtሐoሐfሐtሐhሐeሐcሐoሐmሐmሐeሐrሐcሐiሐaሐlሐfሐaሐrሐmሐ,tሐhሐeሐiሐnሐcሐiሐdሐeሐn
and disease infestations can seriously jeopardize the year’s harvest, and by extension the farm’s bottom-line.
In all arenas of healthcare, from animals to humans and plants, prevention is the best medicine.

Farmers should be vigilant in following the simple but effective strategies that have been outlined below and
elsewhere in the handbook to minimize the likelihood of pest or disease emergence on their farms. If the right
measures are taken at the right time, farmers can avoid the occurrence of pests and disease while retaining
the substantial costs of responding to infestations (especially on large farms).

Table 10: Overview and Management of Common Soya Bean Pests and Diseases
The Production and Marketing of Key Export Crops
35

2.2.4 Soybean Grading Criteria (ECX)

Similar to sesame, soybeans are a resilient crop capable of withstanding diverse environments and a
ሐnሐuሐmሐbሐeሐrሐoሐfሐsሐtሐrሐeሐsሐsሐoሐrሐsሐT. ሐhሐaሐtሐbሐeሐiሐnሐgሐsሐaሐiሐdሐi
, ሐnሐtሐhሐeሐpሐrሐodሐtሐ-mሐaሐxሐiሐmሐiሐzሐiሐnሐgሐiሐnሐtሐeሐrሐeሐsሐtሐoሐfሐtሐhሐeሐcሐoሐmሐmሐeሐrሐcሐiሐaሐlሐfሐaሐrሐmሐt
, ሐhሐeሐi
of pest and disease infestations can seriously jeopardize the year’s harvest, and by extension the farm’s
bottom-line. In all arenas of healthcare, from animals to humans and plants, prevention is the best medicine.
Farmers should be vigilant in following the simple but effective strategies that have been outlined below and
elsewhere in the handbook to minimize the likelihood of pest or disease emergence on their farms. If the right
measures are taken at the right time, farmers can avoid the occurrence of pests and disease while retaining
the substantial costs of responding to infestations (especially on large farms).

Contamination by foreign matter can be visually recognized and corrected. It can also be prevented by
practicing appropriate harvesting and post harvest practices; many of which are intended to keep the harvest
free from visible and invisible contamination that can reduce yield and/or the desirability of the produce on
the market. Soybeans should also be free from any unusual odors; which emerge when the harvest is stored
in an environment of excessive humidity or moisture. The soybeans should also be uniform in size - since this
is taken to represent uniformity of other less visible qualities such as oil and protein content.

Part of ECX’s mission to improve the competitiveness of Ethiopian agricultural commodities on the export
market has been the establishment of grading criteria that determine the quality of the commodity upon
ሐiሐnሐtሐaሐkሐeሐ aሐnሐdሐ aሐrሐeሐ pሐrሐeሐsሐeሐnሐtሐeሐdሐ tሐoሐ bሐuሐyሐeሐrሐsሐ aሐsሐ aሐnሐ iሐnሐdሐeሐpሐeሐnሐdሐeሐnሐtሐ qሐuሐaሐlሐidሐcሐaሐtሐiሐoሐnሐ oሐfሐ tሐhሐeሐ gሐoሐoሐdሐsሐ aሐvሐaሐiሐlሐaሐbሐlሐeሐ fሐo
to all other agricultural goods traded on the ECX market, the organization has developed grading criteria to
determine the quality of soybean traded on its platform. These guidelines are as follows.

Table 11: ECX Soybean grading criteria


36 The Production and Marketing of Key Export Crops

2.2.5 Soybean Market and Price Trends

Although improvements have been made to expand and improve the production of soybeans in Ethiopia,
ሐtሐhሐeሐ ሐeሐxሐpሐoሐrሐtሐ ሐpሐeሐrሐfሐoሐrሐmሐaሐnሐcሐeሐ ሐoሐfሐ ሐtሐhሐeሐ ሐcሐoሐmሐmሐoሐdሐiሐtሐyሐ ሐhሐaሐsሐ ሐbሐeሐeሐnሐ ሐkሐnሐoሐwሐnሐ ሐtሐoሐ eሐuሐcሐtሐuሐaሐtሐeሐ. ሐTሐhሐiሐsሐ ሐiሐsሐ ሐmሐaሐiሐnሐlሐyሐ ሐaሐtሐtሐrሐiሐbሐuሐtሐe
inability of domestic production to keep up with international demand in volume and quality. That being
ሐsሐaሐiሐdሐ, tሐhሐeሐ lሐaሐsሐtሐ dሐvሐeሐ oሐrሐ sሐoሐ yሐeሐaሐrሐsሐ hሐaሐvሐeሐ rሐeሐcሐoሐrሐdሐeሐdሐ sሐoሐmሐeሐ oሐfሐ tሐhሐeሐ hሐiሐgሐhሐeሐsሐtሐ dሐgሐuሐrሐeሐsሐ (iሐnሐ tሐeሐrሐmሐsሐ oሐfሐ vሐoሐlሐuሐmሐeሐ eሐxሐpሐoሐrሐt
forex generated) for soybean producers and exporters. As the crop and its derivatives continue to increase
in popularity among the developing and emerging economies of the world, Ethiopia has found key trading
partners in Asia for its soybeans.

India is the top destination for Ethiopian soybeans; followed by Vietnam, China, and Canada. Together with
ሐPሐaሐkሐiሐsሐtሐaሐnሐ, tሐhሐeሐsሐeሐ dሐvሐeሐ cሐoሐuሐnሐtሐrሐiሐeሐsሐ aሐcሐcሐoሐuሐnሐtሐ fሐoሐrሐ nሐeሐaሐrሐlሐyሐ ሐ95% oሐfሐ Eሐtሐhሐiሐoሐpሐiሐaሐnሐ sሐoሐyሐbሐeሐaሐnሐ eሐxሐpሐoሐrሐtሐsሐ. Aሐsሐ mሐeሐnሐtሐiሐoሐnሐeሐdሐ bሐr
above, both the volume and the value of Ethiopian soybean exports has been experiencing an upward trend
over the last few years; having doubled in value between 2014 and 2017. Notwithstanding disruptions brought
on by the COVID-19 pandemic, demand for soybean is expected to improve - with specialty soybean products
mainly derived from organic soybeans expected to show some of the biggest increases in the years to come.
Figure 2: Soybean market
38 The Production and Marketing of Key Export Crops

2.2.6 Challenges and Opportunities in Producing and


Marketing Soybeans cultivated in Ethiopia
ሐTሐhሐeሐ ሐnሐeሐeሐdሐsሐ ሐoሐfሐ ሐtሐhሐeሐ ሐcሐoሐmሐmሐeሐrሐcሐiሐaሐlሐ ሐfሐaሐrሐmሐ ሐdሐoሐ ሐnሐoሐtሐ ሐbሐeሐgሐiሐnሐ ሐaሐnሐdሐ ሐeሐnሐdሐ ሐoሐnሐ ሐtሐhሐeሐ ሐfሐaሐrሐmሐ. ሐAሐlሐtሐhሐoሐuሐgሐhሐ dሐeሐlሐdሐ ሐpሐrሐoሐdሐuሐcሐtሐiሐvሐiሐtሐyሐ ሐi
ሐcሐoሐrሐnሐeሐrሐsሐtሐoሐnሐeሐ oሐfሐ aሐ pሐrሐodሐtሐaሐbሐlሐeሐ cሐoሐmሐmሐeሐrሐcሐiሐaሐlሐ fሐaሐrሐmሐ, tሐhሐeሐ iሐmሐpሐrሐoሐvሐeሐmሐeሐnሐtሐ oሐfሐ wሐhሐiሐcሐhሐ cሐaሐnሐ hሐeሐlሐpሐ tሐhሐeሐ fሐaሐrሐmሐeሐrሐ sሐeሐcሐuሐrሐe
returns, the commercial farmers must also keep a close watch on external factors; events taking place
ሐoሐuሐtሐsሐiሐdሐeሐoሐfሐtሐhሐeሐfሐaሐrሐmሐtሐhሐaሐtሐhሐaሐvሐeሐaሐdሐiሐrሐeሐcሐtሐiሐneሐuሐeሐnሐcሐeሐoሐnሐtሐhሐeሐvሐiሐaሐbሐiሐlሐiሐtሐyሐoሐfሐtሐhሐeሐcሐhሐoሐsሐeሐnሐcሐrሐoሐpሐW. ሐhሐaሐtሐfሐoሐlሐlሐoሐwሐsሐo
rundown of some of the most important changes taking place in the wider soybean value chain that have
direct consequences on individual commercial farmers.

I. Farm - level

Consistent with the rest of the agricultural sector, growers of soybeans face a limited availability of key inputs
for a successful soybean harvest. This includes limited access to disease resistant seeds and/or corresponding
inoculants, limited supply and rising prices of common inorganic fertilizers, and so on. Soybeans like many of
their legume counterparts grow in many of the varied ecologies of Ethiopia.

They also benefit the farm by improving its ability to retain and utilize nitrogen. With the inclusion of soybean
trading on the ECX platform previous marketing bottlenecks have begun to be addressed. By adhering to some
of the good agricultural practices recommended for soybean cultivation, farmers can ensure reliable harvests
that are competitive locally and internationally.

II. Industry level

While per-hectare productivity of soybeans in Ethiopia has been steadily increasing over the last 15 to 20 years,
the limited availability of modern (and even more basic) inputs like fertilizers, mechanization, and disease-
resistant varieties, Ethiopian soybean producers, on average, produce far less than their potential. Weed, disease,
and pest management also appear to be critical points of failure for farm(ers)s who have otherwise managed to
meet the basic growing needs of the soybean crop.

While soybean cultivation has not (historically) received the same level of institutional support from enabling
actors in the production and export value chains, its role and indeed its value to Ethiopian agriculture have
been acknowledged. This has coincided with growing demand for soybeans for a variety of uses. Much like
other agricultural commodities, organic versions generally fetch a higher price. Farming soybeans on virgin land
offers Ethiopian farmers the possibility to cultivate high-grade organic soybean if tracing and certifying can be
guaranteed.
The Production and Marketing of Key Export Crops
39

III. National

Sub-optimal soybean production levels in turn make it difficult for traders and exporters to secure reliable
supplies of high quality soybeans. Consequently, arranging contracts on a long-term basis, or even getting into
agreements on forecasted harvests can become challenging. This problem is not only one that arises when
harvested soybean is traded internationally, but presents an equally pressing challenge within the domestic
market as well.

The improvement of overall soybean production and productivity in Ethiopia has been partly due to an enabling
policy environment that has encouraged greater private sector participation.The incorporation of soybean on
the ECX trading platform, the continued development of improved varieties, and extensive capacity building on
the federal and regional levels are all creating conducive conditions for Ethiopia to emerge as a leader in the
soybean market.
Chapter three
Crop
Rotation and
Intercropping

Crop rotation is the practice of planting dif-


ferent crops sequentially on the same plot
of land to improve soil health, optimize nu-
trients in the soil, and combat pest and weed
pressure.

Intercropping is a multiple cropping practice


that involves growing two or more crops in
proximity. In other words, intercropping is the
cultivation of two or more crops simultane-
ሐoሐuሐsሐlሐyሐoሐnሐtሐhሐeሐsሐaሐmሐeሐdሐeሐlሐdሐ.
42 Crop Rotation and Intercropping

3. Crop Rotation and Intercropping

Crop rotation is one of the most frequently mentioned practices that maintain and improve the overall
productivity of the farm by maintaining a constant balance between the different factors that affect
plant growth. When farms are maintained under crop rotation, the likelihood of pests and disease can be
minimized. This allows farmers to protect their crops during the growing season, but also means that they
can harvest more from their farms with minimal intervention in the form of fertilizers, insecticides, and so on.
Crop rotation and intercropping are not simply techniques that are ‘nice to have’. In their absence, farmers
ሐrሐuሐnሐtሐhሐeሐrሐiሐsሐkሐoሐfሐdሐeሐpሐlሐeሐtሐiሐnሐgሐtሐhሐeሐiሐrሐdሐeሐlሐdሐsሐoሐfሐtሐhሐeሐnሐuሐtሐrሐiሐeሐnሐtሐsሐtሐhሐeሐiሐrሐcሐrሐoሐpሐsሐnሐeሐeሐdሐtሐoሐsሐuሐrሐvሐiሐvሐeሐ.

ሐGሐrሐoሐwሐiሐnሐgሐtሐhሐeሐsሐaሐmሐeሐcሐrሐoሐpሐoሐnሐtሐhሐeሐsሐaሐmሐedሐሐ eሐlሐdሐoሐvሐeሐrሐaሐlሐoሐnሐgሐpሐeሐrሐiሐoሐdሐoሐfሐtሐiሐmሐeሐa
, ሐpሐrሐaሐcሐtሐimonocropping,
ሐcሐeሐkሐnሐoሐwሐnሐaሐsሐ also
exposes farmers to additional risks from pests and diseases and a subsequent decrease in their yield. The
practice of both crop rotation and intercropping by sesame farmers in Ethiopia have produced noticeable
improvements in soil and plant health as well as overall farm performance.

Since the sesame plant requires maximum sunlight during its growing period, it is recommended to intercrop
with plants that have shorter stems than the variety of sesame being grown. Sorghum and Teff are commonly
intercropped with sesame in Harerge and Northern Shewa respectively. Since sesame is a four month crop,
there is enough time to plant different crops both before and after sesame in the same production/market
year. The recommended crops to grow before and after sesame are chosen because their nutrient needs vary
from sesame and have been observed to contribute to a reduction in pest and disease risks for subsequent
harvests when carried out in the recommended order. The crops that are recommended to grow before
sesame are cotton, sorghum, peanuts, and soybeans. Onions and other vegetables have also been observed
to contribute positively to the performance of sesame planted after they were harvested. Cotton, sorghum,
and soybeans are also recommended to grow after a sesame harvest for the same reasons listed above.
Millet also thrives when planted after sesame and can also replenish some of the nutrients important for a
successful sesame harvest down the line.

The rationale for crop rotation is the same for soybeans as it is for sesame. When properly applied, both
ሐtሐeሐcሐhሐnሐiሐqሐuሐeሐsሐ ሐyሐiሐeሐlሐdሐ ሐaሐgሐrሐoሐnሐoሐmሐiሐcሐ ሐbሐeሐnሐedሐtሐsሐ ሐwሐhሐiሐcሐhሐ ሐmሐaሐnሐiሐfሐeሐsሐtሐ ሐiሐnሐ ሐbሐiሐgሐgሐeሐrሐ ሐaሐnሐdሐ ሐbሐeሐtሐtሐeሐrሐ ሐhሐaሐrሐvሐeሐsሐtሐsሐ, ሐwሐhሐiሐlሐeሐ ሐaሐlሐs
ሐsሐiሐgሐnሐidሐcሐaሐnሐtሐeሐcሐoሐnሐoሐmሐiሐcሐrሐeሐtሐuሐrሐnሐsሐbሐyሐaሐlሐlሐoሐwሐiሐnሐgሐfሐaሐrሐmሐeሐrሐsሐtሐhሐeሐoሐpሐpሐoሐrሐtሐuሐnሐiሐtሐyሐtሐoሐdሐiሐvሐeሐrሐsሐiሐfሐyሐtLegumes ሐhሐeሐiሐrሐrሐeሐvሐeሐnሐuሐeሐsሐt
ሐoሐfሐfሐeሐrሐtሐhሐeሐuሐnሐiሐqሐuሐeሐbሐeሐnሐedሐtሐoሐfሐiሐmሐpሐrሐoሐvሐiሐnሐgሐtሐhሐeሐnሐiሐtሐrሐoሐgሐeሐnሐpሐrሐodሐlሐeሐoሐfሐtሐhሐeሐsሐoሐiሐlሐB . ሐuሐtሐpሐlሐaሐnሐtሐiሐnሐgሐlሐeሐgሐuሐmሐeሐsሐiሐnሐsሐuሐcሐc
the risk of depleting the soil of essential micronutrients as well as aiding the incubation of various pests
and diseases. Cotton, sorghum, small grains like wheat and barley, as corn are the most common crops
recommended for cultivation before or after an intended soybean harvest. Unlike sesame, the potential for
intercropping soybeans is relatively limited; soybeans have been shown to perform best when planted as a
stand-alone crop.
Crop Rotation and Intercropping
43

“This is what works for me:


I practise crop rotation with
my creative endeavours.
I’ve found that when the
nitrogen runs out in the soil
in one field, it’s best to leave
it fallow for a while and
cultivate another.”

Andrew Macrae
Chapter four
The Ethiopian
Agricultural
Market Chain
and Key
Agricultural marketing covers the services in-
volved in moving an agricultural product from
the farm to the consumer. These services involve
the planning, organizing, directing and handling
of agricultural produce in such a way as to sat-
isfy farmers, intermediaries and consumers. Nu-
merous interconnected activities are involved in
doing this, such as planning production, growing
and harvesting, grading, packing and packaging,
transport, storage, agro- and food processing, pro-
vision of market information, distribution, adver-
tising and sale. Effectively, the term encompass-
es the entire range of supply chain operations for
agricultural products, whether conducted through
ad hoc sales or through a more integrated chain,
such as one involving contract farming.
46
The Ethiopian Agricultural Market Chain and Key Influencing
Factors For Export-oriented Commercial Farmers

4. The Ethiopian Agricultural Market Chain and Key


ሐIሐneሐuሐeሐnሐcሐiሐnሐgሐFሐaሐcሐtሐoሐrሐsሐFሐoሐrሐEሐxሐpሐoሐrriented
ሐtሐ-o Commercial
Farmers

Until very recently, the market chain for agricultural producers (smallholders and commercial farmers alike)
ሐwሐaሐsሐlሐoሐnሐgሐaሐnሐdሐcሐhሐaሐrሐaሐcሐtሐeሐrሐiሐzሐeሐdሐiሐnሐaሐdሐeሐqሐuሐaሐtሐeሐaሐcሐcሐeሐsሐsሐaሐnሐdሐuሐsሐeሐoሐfሐmሐaሐrሐkሐeሐtሐiሐnሐfሐoሐrሐmሐaሐtሐiሐoሐnሐT. ሐhሐiሐsሐhሐaሐdሐsሐiሐgሐnሐidሐcሐaሐnሐt
ሐtሐhሐeሐ ሐpሐrሐodሐtሐ ሐmሐaሐrሐgሐiሐnሐsሐ, ሐeሐsሐpሐeሐcሐiሐaሐlሐlሐyሐ ሐoሐfሐ ሐpሐrሐoሐdሐuሐcሐeሐrሐsሐ. ሐFሐoሐlሐlሐoሐwሐiሐnሐgሐ ሐtሐhሐeሐ ሐiሐnሐtሐrሐoሐdሐuሐcሐtሐiሐoሐnሐ ሐoሐfሐ ሐaሐ ሐnሐeሐwሐ ሐrሐeሐgሐuሐlሐaሐtሐiሐoሐnሐ ሐmሐaሐn
trade of key agricultural exports be carried out at designated ECX primary markets, the number of middle
men has decreased and the incomes of farmers have improved.

However, linkages between key value chain actors such as farmers, traders, exporters, and government
institutions like ECX remain relatively weak. For commercial farmers, there are a number of possible channels
available for marketing their produce. The distinction arises from differences in produced quantities.
Farmers producing more than 50 quintals have the option of selling directly at the ECX central market (if their
produce is of acceptable quality) or to local traders at their local ECX primary market. If farmers wish to sell
in quantities less than 50 quintals can only sell their produce at ECX primary markets to local traders who
then aggregate volumes to meet the ECX central market quantity minimum.

The experience of a farm’s harvest in the marketplace is mainly the result of four key factors; variety,
quality, quantity, and timing (in no particular order).
The Ethiopian Agricultural Market Chain and Key Influencing
Factors For Export-oriented Commercial Farmers
47

1. Variety

ሐDሐeሐpሐeሐnሐdሐiሐnሐgሐ oሐnሐ tሐhሐeሐ cሐrሐoሐpሐ, sሐiሐgሐnሐidሐcሐaሐnሐtሐ dሐiሐfሐfሐeሐrሐeሐnሐcሐeሐsሐ iሐnሐ tሐhሐeሐ aሐpሐpሐeሐaሐrሐaሐnሐcሐeሐ aሐnሐdሐ aሐpሐpሐlሐiሐcሐaሐtሐiሐoሐnሐ oሐfሐ dሐiሐfሐfሐeሐrሐeሐnሐtሐ vሐa
ሐvሐeሐrሐyሐ ሐcሐoሐmሐmሐoሐnሐ. ሐTሐhሐiሐsሐ ሐiሐnሐ ሐtሐuሐrሐnሐ ሐiሐneሐuሐeሐnሐcሐeሐsሐ ሐtሐhሐeሐiሐrሐ ሐdሐeሐsሐiሐrሐaሐbሐiሐlሐiሐtሐyሐ ሐaሐmሐoሐnሐgሐ ሐdሐiሐfሐfሐeሐrሐeሐnሐtሐ ሐbሐuሐyሐeሐrሐsሐ ሐiሐnሐ ሐtሐhሐeሐ ሐeሐxሐpሐoሐrሐtሐ ሐmሐa
some varieties fetching a higher selling price than others. The end use of most agricultural goods are mostly
determined by appearance, odor, and taste.

2. Quality

The value of a farmer’s harvest is not set in stone simply because of the variety he or she has chosen to grow;
which in some cases might not even be in the farmer’s hands, depending on farm level soil-climate dynamics
and their ability or willingness to employ resource/capital intensive production methods. By securing higher
qualities of produce which can receive higher gradings, farmers can make sure they are getting the best value
for their produce even if the variety of crop they are cultivating doesn’t elicit the highest price.

3. Quantity

Once crops have been harvested two main routes for marketing emerge. If the farmer has produced 50 or more
quintals, then they can market their produce directly at the ECX central market to exporters or processors. If
they produce less than 50 quintals they can only sell to traders at the designated ECX primary market in their
area. These traders are also prohibited from purchasing produce from producers outside of these designated
primary markets. Once traders secure marketable quantities of produce, the product is traded to processors
or exporters mainly based in and around Addis Ababa.

4. Timing

Owing to prevalence of rain-fed farming even in commercial crop cultivation, it is not unusual for farmers to
plant and harvest their crops at around the same time of the year. Since most producers also lack adequate
storage facilities and/or fail to implement appropriate storage hygiene and management, they are forced to
sell at the time of harvest (when supplies are high and prices are low) and earn as much as 30% less for their
crops.
48 The Ethiopian Agricultural Market Chain and Key Influencing
Factors For Export-oriented Commercial Farmers

Exporting: Direct selling or using a broker?

Doing business on the international stage (exporting) is very different than doing business locally. First and
foremost, as a seller you now are competing not only with other farmers in Ethiopia but now you are also
competing with farmers from all over the world. This in combination that international buyers are very price
sensitive creates a situation whereby the prices of sellers have to be competitive. This seems like a very
simply thing to accomplish for Ethiopian farmers given the fact that wages are very low compared to other
countries. However, yields that are obtained by Ethiopian farmers are most of the time considerably less than
yields obtained in other countries. Furthermore, in most other countries the agriculture is more mechanized.
Therefore the cost of production in other countries can be less although the wages in those countries are
higher.

Competitive

Furthermore when doing business on the international stage it is very important that the buyer and seller
trust each other. Because the buyer cant be certain what type of quality he will be getting when purchasing
agriculture produce. He will only know the quality after the container(s) arrive and are inspected. However
before the container(s) arrive the buyer has to make a down payment or pay the full amount before the goods
arrive (depending on the deal). This means that the buyer has a risk because he cant be sure about the
quality of the goods in advance.

Risks

ሐTሐhሐeሐsሐeሐlሐlሐeሐrሐaሐlሐsሐoሐhሐaሐsሐcሐeሐrሐtሐaሐiሐnሐrሐiሐsሐkሐsሐtሐhሐaሐtሐaሐrሐeሐsሐpሐeሐcሐidሐcሐtሐoሐsሐeሐlሐlሐiሐnሐgሐoሐnሐtሐhሐeሐiሐnሐtሐeሐrሐnሐaሐtሐiሐoሐnሐaሐlሐsሐtሐaሐgሐeሐ.Oሐn
the goods, after receiving a partial advance payment, and the buyer, for whatever reason, doesn’t pay the
seller has no legal means to collect the remaining amount.

After production the farmer has to decide via which channel he is going to export. In general there are 2 ways
ሐoሐfሐeሐxሐpሐoሐrሐtሐiሐnሐgሐT. ሐhሐedሐሐ rሐsሐtሐwሐaሐyሐbሐeሐiሐnሐgሐbሐyሐtሐrሐyሐiሐnሐgሐtሐodሐሐ nሐdሐbሐuሐyሐeሐrሐsሐvሐiሐaሐmሐaሐrሐkሐeሐtሐiሐnሐgሐoሐrሐoሐwሐnሐnሐeሐtሐwሐoሐrሐkሐT. ሐhሐeሐsሐeሐcሐoሐnሐdሐwሐaሐyሐiሐsሐbሐy
ሐuሐsሐiሐnሐgሐaሐbሐrሐoሐkሐeሐrሐtሐhሐaሐtሐwሐiሐlሐlሐdሐnሐdሐaሐbሐuሐyሐeሐrሐfሐoሐrሐtሐhሐeሐfሐaሐrሐmሐeሐrሐ.

Selling directly

In order to be able to sell directly the seller must know buyers and preferable have a good relationship with
them (trust). If the farmer doesn’t know any buyers the farmer has to invest on increasing his network. The
farmer can do that by going to different international trade shows and promoting his business online. This
may sound relatively easy however in reality this is easier said than done.
The Ethiopian Agricultural Market Chain and Key Influencing
Factors For Export-oriented Commercial Farmers
49

If you want to go to different international trade shows, it is time consuming and on top of that it costs a
ሐlሐoሐtሐoሐfሐmሐoሐnሐeሐyሐ.Tሐoሐgሐoሐtሐoሐtሐhሐeሐtሐrሐaሐdሐeሐsሐhሐoሐwሐsሐaሐnሐdሐsሐtሐiሐlሐlሐhሐaሐvሐeሐaሐpሐrሐodሐtሐaሐbሐlሐeሐbሐuሐsሐiሐnሐeሐsሐsሐiሐsሐoሐnሐlሐyሐpሐoሐsሐsሐiሐbሐlሐeሐwሐhሐeሐnሐt
ሐpሐrሐoሐdሐuሐcሐeሐsሐeሐnሐoሐuሐgሐhሐ.Mሐeሐaሐnሐiሐnሐgሐiሐfሐaሐfሐaሐrሐmሐeሐrሐ8ሐoሐnሐlሐy9ሐሐhሐaሐsሐ10hሐeሐcሐtሐaሐrሐeሐiሐtሐdሐoሐeሐsሐnRሐtሐmሐaሐkሐeሐdሐnሐaሐnሐcሐiሐaሐlሐsሐeሐnሐsሐeሐfሐoሐrሐtሐhሐeሐfሐaሐr
to invest his money on going to different trade shows.

Selling via broker

The other way to sell is by using a broker. This maybe doesn’t look interesting from the outside because the
farmer has to pay a commission to the broker. However, when looking at what (good) brokers offer it is worth
considering this option.

First of all brokers go to all the local and international trade shows because this is their core business. They
ሐrሐeሐpሐrሐeሐsሐeሐnሐtሐmሐuሐlሐtሐiሐpሐlሐeሐfሐaሐrሐmሐeሐrሐsሐaሐnሐdሐtሐhሐeሐrሐeሐfሐoሐrሐeሐiሐtሐmሐaሐkሐeሐsdሐሐ nሐaሐnሐcሐiሐaሐlሐsሐeሐnሐsሐeሐfሐoሐrሐtሐhሐeሐmሐtሐoሐiሐnሐvሐeሐsሐtሐtሐhሐeሐiሐrሐt
going to these trade shows. Second most brokers are veterans in the market meaning that they don’t only
know most buyers but also have a working relationship with most buyers. On top of that the brokers have a
network of colleague brokers so when the broker doesn’t know a buyer his colleague will most likely know
one.

When farmers use brokers it allows them to focus fully on their core business i.e. farming. The broker will be
responsible for the marketing and sales. On top of that the farmer only has to pay the broker after a deal is
made. The most important criteria when selecting brokers is trust. The farmer must work with a broker that
they don’t only know most buyers but also have a working relationship with most buyers. The role of a good
broker is basically connecting farmers with reliable buyers only. On top of that the brokers have a network of
ሐcሐoሐlሐlሐeሐaሐgሐuሐeሐbሐrሐoሐkሐeሐrሐsሐsሐoሐwሐhሐeሐnሐtሐhሐeሐbሐrሐoሐkሐeሐrሐdሐoሐeሐsሐnRሐtሐkሐnሐoሐwሐaሐbሐuሐyሐeሐrሐhሐiሐsሐcሐoሐlሐlሐeሐaሐgሐuሐeሐwሐiሐlሐlሐdሐnሐdሐoሐnሐeሐ.

It clear to see that working with brokers has many advantages because they take a lot of work away from the
farmer. However, when selecting brokers the most important thing is if the farmer trust the brokers because
brokers can try to scam the farmer.

• Main takeaways

1. Is your price competitive on the international market?


2. Trust is a very important aspect when selling on the international market
ሐCሐhሐaሐpሐtሐeሐrሐdሐvሐe
How to get
land
All the processes or procedures that need-
ed to take place to have a land is discussed.
This includes the institutions playing the
part and other important things.

The steps are stated one by one in detail inor-


der to resolve any confusion that would take
place. The lists are vital as they redirect to
the access of land.
52 How to get land

5. How to get land

The process of acquiring agricultural land in Ethiopia is supposed to be an easy process that takes from
3 months up to 1-year maximum. This process involves different parties around the country from federal
ሐofሐcሐeሐsሐ tሐoሐ rሐeሐgሐiሐoሐnሐaሐlሐ ofሐcሐeሐsሐ. Tሐhሐeሐ pሐrሐoሐjሐeሐcሐtሐ tሐyሐpሐeሐ, fሐoሐrሐeሐiሐgሐnሐ oሐrሐ lሐoሐcሐaሐlሐ, iሐsሐ tሐhሐeሐ mሐaሐjሐoሐrሐ dሐeሐcሐiሐsሐiሐvሐeሐ fሐaሐcሐtሐoሐrሐ iሐnሐ tሐhሐeሐ tሐiሐm
foreign investors, the process might take a bit longer than that of the local investors as it involves the federal
ሐofሐcሐeሐsሐ.Tሐhሐeሐiሐnሐvሐeሐsሐtሐmሐeሐnሐtሐaሐmሐoሐuሐnሐtሐdሐiሐfሐfሐeሐrሐsሐbሐeሐtሐwሐeሐeሐnሐpሐrሐoሐjሐeሐcሐtሐsሐaሐsሐwሐeሐlሐlሐ.Wሐhሐeሐnሐsሐuሐbሐmሐiሐtሐtሐiሐnሐgሐaሐpሐrሐoሐjሐeሐcሐtሐpሐrሐoሐpሐo
investors must include a bank statement showing a deposit equal to 30% of the project’s total cost, while
international investors must make an initial commitment of at least $200,000 USD.
How to get land
53

The step-by-step guide on how to acquire land

1. Register the company as PLC

ሐTሐhሐeሐ dሐrሐsሐtሐ sሐtሐeሐpሐ oሐfሐ tሐhሐeሐ pሐrሐoሐcሐeሐsሐsሐ iሐsሐ tሐoሐ rሐeሐgሐiሐsሐtሐeሐrሐ tሐhሐeሐ cሐoሐmሐpሐaሐnሐyሐ aሐsሐ PሐLሐCሐ oሐrሐ hሐaሐvሐeሐ aሐ sሐhሐaሐrሐeሐ cሐoሐmሐpሐaሐnሐyሐ wሐiሐtሐhሐ aሐ gሐrሐoሐu
ሐiሐnሐvሐeሐsሐtሐoሐrሐsሐ.Aሐfሐtሐeሐrሐrሐeሐgሐiሐsሐtሐeሐrሐiሐnሐgሐtሐhሐeሐcሐoሐmሐpሐaሐnሐyሐwሐiሐlሐlሐhሐaሐvሐeሐiሐtሐsሐoሐwሐnሐtሐiሐnሐrሐeሐgሐiሐsሐtሐeሐrሐ,vሐaሐtሐcሐeሐrሐtሐidሐcሐaሐtሐeሐaሐnሐdሐcሐoሐm

2. Get the license

Following the registration, the company will have to get its working license from the ministry of trade.

3. Register the company as PLC

ሐAሐfሐtሐeሐrሐdሐnሐiሐsሐhሐiሐnሐgሐtሐhሐeሐaሐbሐoሐvሐeሐpሐrሐoሐcሐeሐsሐsሐeሐsሐtሐhሐeሐnሐeሐxሐtሐsሐtሐeሐpሐwሐiሐlሐlሐbሐeሐgሐeሐtሐtሐiሐnሐgሐtሐhሐeሐpሐrሐoሐjሐeሐcሐtሐpሐrሐoሐpሐoሐsሐaሐlሐdሐrሐaሐfሐtሐeሐd
Several crucial factors must be taken into account when writing the project proposal. The project proposals
ሐfሐoሐrሐ ሐsሐuሐcሐhሐ ሐpሐrሐoሐjሐeሐcሐtሐsሐ ሐaሐrሐeሐ ሐcሐrሐeሐaሐtሐeሐdሐ ሐbሐyሐ ሐlሐiሐcሐeሐnሐsሐeሐdሐ ሐiሐnሐdሐiሐvሐiሐdሐuሐaሐlሐsሐ ሐwሐhሐoሐ ሐhሐaሐvሐeሐ ሐrሐeሐcሐeሐiሐvሐeሐdሐ ሐcሐeሐrሐtሐidሐcሐaሐtሐiሐoሐnሐ ሐfሐrሐoሐm
institutes. Outsourcing these tasks to such people is advantageous because they are licensed and aware
about what should be in the proposal, which makes this stage much simpler.

Obtaining reference letters from agricultural organizations like the Ministry of Agriculture is suggested step
after drafting the project proposal. Such institutions are open to writing a recommendation letter if they have
trust in the project after reviewing the proposal draft.

4. Look for land that fits the project’s needs

ሐAሐfሐtሐeሐrሐcሐrሐeሐaሐtሐiሐnሐgሐtሐhሐeሐpሐrሐoሐjሐeሐcሐtሐpሐrሐoሐpሐoሐsሐaሐlሐ,tሐhሐeሐfሐoሐlሐlሐoሐwሐiሐnሐgሐsሐtሐaሐgሐeሐiሐsሐtሐoሐlሐoሐoሐkሐfሐoሐrሐlሐaሐnሐdሐtሐhሐaሐtሐdሐtሐsሐtሐhሐeሐpሐrሐoሐj
with the proposal and a formal letter of application, the investor will head straight to the woreda administration
ሐofሐcሐeሐoሐfሐtሐhሐeሐpሐrሐoሐjሐeሐcሐtRሐsሐiሐnሐtሐeሐnሐdሐeሐdሐlሐoሐcሐaሐtሐiሐoሐnሐ.Sሐiሐnሐcሐeሐtሐhሐeሐcሐoሐmሐpሐaሐnሐyሐrሐeሐgሐiሐsሐtሐeሐrሐeሐdሐ,iሐtሐwሐiሐlሐlሐaሐlሐsሐoሐhሐaሐvሐeሐtሐhሐeሐcሐoሐm
that must be on the letter. Besides the two documents, the investor will need to have a bank statement and
ሐaሐcሐoሐpሐyሐoሐfሐlሐeሐgሐaሐlሐIሐDሐwሐhሐeሐnሐgሐoሐiሐnሐgሐtሐoሐgሐoሐvሐeሐrሐnሐmሐeሐnሐtሐaሐlሐofሐcሐeሐsሐ.

5. Make a site visit

A site visit will be made to see the property in question to see whether the requested piece of land is available
for the project or whether the woreda has alternative suggestions.
54 How to get land

6. Estabilishment of a committee of representatives from various offices

ሐFሐoሐlሐlሐoሐwሐiሐnሐgሐtሐhሐeሐsሐiሐtሐeሐvሐiሐsሐiሐtሐ,tሐhሐeሐwሐoሐrሐeሐdሐaሐwሐiሐlሐlሐeሐsሐtሐaሐbሐlሐiሐsሐhሐaሐcሐoሐmሐmሐiሐtሐtሐeሐeሐoሐfሐrሐeሐpሐrሐeሐsሐeሐnሐtሐaሐtሐiሐvሐeሐsሐfሐrሐoሐmሐvሐaሐrሐi
than 10 people) to discuss the project and then visit the area to discuss the problem with the locals.

7. Drafting of letter by the woreda

If everyone approves of the idea and the site, the woreda will draft a letter to submit to the zone administration,
and the investor will then be directed to the zone investment commission.

8. Evaluation by zone investment commission office

Following that, all of the terms pertaining to the land leasing, project standards, and project budget will be
ሐeሐvሐaሐlሐuሐaሐtሐeሐdሐ ሐbሐyሐ ሐtሐhሐeሐ ሐzሐoሐnሐeሐ ሐiሐnሐvሐeሐsሐtሐmሐeሐnሐtሐ ሐcሐoሐmሐmሐiሐsሐsሐiሐoሐnሐ ሐofሐcሐeሐ. ሐIሐfሐ ሐtሐhሐeሐ ሐiሐnሐvሐeሐsሐtሐmሐeሐnሐtሐ ሐofሐcሐeሐ ሐaሐpሐpሐrሐoሐvሐeሐsሐ ሐtሐhሐeሐ ሐpሐrሐoሐpሐoሐs
ሐiሐnሐvሐeሐsሐtሐoሐrሐwሐiሐlሐlሐtሐhሐeሐnሐbሐeሐsሐeሐnሐtሐbሐaሐcሐkሐtሐoሐtሐhሐeሐzሐoሐnሐeሐofሐcሐeሐ,wሐhሐeሐrሐeሐcሐaሐbሐiሐnሐeሐmሐeሐmሐbሐeሐrሐsሐwሐiሐlሐlሐrሐeሐvሐiሐeሐwሐtሐhሐeሐeሐnሐtሐiሐrሐeሐpሐr
same manner as the woreda.

9. Forward to the regional offices

ሐOሐnሐcሐeሐtሐhሐeሐpሐrሐoሐjሐeሐcሐtሐhሐaሐsሐpሐaሐsሐsሐeሐdሐaሐlሐlሐoሐfሐtሐhሐeሐaሐfሐoሐrሐeሐmሐeሐnሐtሐiሐoሐnሐeሐdሐsሐtሐeሐpሐsሐi
, ሐtሐwሐiሐlሐlሐbሐeሐfሐoሐrሐwሐaሐrሐdሐeሐdሐtሐoሐtሐhሐeሐrሐeሐgሐiሐoሐnሐaሐlሐofሐcሐeሐsሐfሐoሐrdሐ

before moving forward with leasing and receiving the land.

10. Regional investment commission office

ሐTሐhሐeሐ dሐnሐaሐlሐ ሐsሐtሐeሐpሐ ሐbሐeሐfሐoሐrሐeሐ ሐsሐtሐaሐrሐtሐiሐnሐgሐ ሐtሐhሐeሐ ሐpሐrሐoሐjሐeሐcሐtሐ ሐwሐiሐlሐlሐ ሐbሐeሐ ሐvሐiሐsሐiሐtሐiሐnሐgሐ ሐtሐhሐeሐ ሐrሐeሐgሐiሐoሐnሐaሐlሐ ሐiሐnሐvሐeሐsሐtሐmሐeሐnሐtሐ ሐcሐoሐmሐmሐiሐsሐsሐiሐoሐnሐ ሐofሐcሐeሐ ሐt

permit and begin employment after getting the land.


How to get land
55

Project Proposal Structure

The project proposal is a document that contains the necessary information about the project in general.
The document outlines the purpose and scope of a project. This is helpful before the project takes place to
ensure both parties agree about what the project itself will include and how it will be executed. It states to the
decision-maker or stakeholder that the service provider understands the scope of the project and likewise.
The document can be drafted by the client itself or could be drafted by a third party that is a business
ሐcሐoሐnሐsሐuሐlሐtሐaሐnሐtሐT. ሐhሐeሐdሐoሐcሐuሐmሐeሐnሐtሐcሐoሐvሐeሐrሐsሐmሐaሐnሐyሐtሐoሐpሐiሐcሐsሐfሐrሐoሐmሐpሐrሐoሐjሐeሐcሐtሐdሐeሐsሐcሐrሐiሐpሐtሐiሐoሐnሐtሐodሐሐ nሐaሐnሐcሐiሐaሐlሐdሐeሐtሐaሐiሐlሐsሐH
. ሐeሐr
the important things that need to be included in a project proposal:

1. Executive summary
2. Project Background
3. Project Area description
4. Project description
· Project Legal forms
· Project Rational ( why the project is taking place)
· Objectives and Goals
· Product type and description
· Production process

5. Input requirements and source


6. Management
7. Infrastructures and facilities
8. Project cost and Revenue
9. Environmental management and impact
10. Financial Feasibility

Background of applicant
· Vision
· Mission
· Legal documents
Chapter six
How to get a
Loan from DBE
A bank loan is an arrangement in which a
bank gives you money that you repay with
interest. Loans are distinct from revolving
credit accounts, such as credit cards or
home equity lines of credit, which allow you
to continually borrow and repay up to a cer-
tain amount.
58 The Ethiopian Agricultural Market Chain and Key
Influencing Factors For Export-oriented Commercial

6. How to get a Loan from DBE

ሐFሐoሐlሐlሐoሐwሐiሐnሐgሐ ሐtሐhሐeሐ ሐcሐoሐuሐnሐtሐrሐyRሐsሐ ሐAሐDሐLሐIሐ ሐsሐtሐrሐaሐtሐeሐgሐyሐ, ሐtሐhሐeሐ ሐDሐeሐvሐeሐlሐoሐpሐmሐeሐnሐtሐ ሐBሐaሐnሐkሐ ሐoሐfሐ ሐEሐtሐhሐiሐoሐpሐiሐaሐ ሐpሐrሐoሐvሐiሐdሐeሐsሐ dሐnሐaሐnሐcሐiሐnሐgሐ ሐtሐo
investment in commercial agriculture. With a minimum equity capital of Birr 7.5 million and beyond, the Bank
dሐnሐaሐnሐcሐeሐsሐlሐaሐrሐgሐeሐ-sሐcሐaሐlሐeሐiሐrሐrሐiሐgሐaሐtሐeሐdሐaሐgሐrሐiሐcሐuሐlሐtሐuሐrሐaሐlሐeሐnሐtሐeሐrሐpሐrሐiሐsሐeሐs

The application process can begin after preparing a feasibility study or project proposal. The feasibility study
or proposal for the project should be more extensive in terms of providing more in-depth information such
ሐaሐsሐ pሐrሐodሐtሐ, pሐrሐeሐcሐiሐsሐeሐ sሐcሐhሐeሐdሐuሐlሐeሐ, mሐaሐrሐkሐeሐtሐ sሐtሐuሐdሐiሐeሐsሐ, aሐnሐdሐ aሐrሐcሐhሐiሐtሐeሐcሐtሐuሐrሐaሐlሐ dሐeሐsሐiሐgሐnሐsሐ. Tሐhሐiሐsሐ dሐoሐcሐuሐmሐeሐnሐtሐ nሐeሐeሐdሐsሐ t
contact information and license of the consultant responsible to make it as the bank requires that data.

ሐTሐhሐeሐdሐrሐsሐtሐsሐtሐeሐpሐiሐsሐpሐrሐoሐvሐiሐdሐiሐnሐgሐtሐhሐeሐbሐaሐnሐkሐsሐtሐaሐtሐeሐmሐeሐnሐtሐtሐhሐaሐtሐsሐhሐoሐwሐsሐtሐhሐeሐ30%oሐfሐtሐhሐeሐpሐrሐoሐjሐeሐcሐtሐcሐoሐsሐtሐ,tሐhሐeሐsሐhሐaሐrሐeሐt
will have to contribute. After that is cleared, the bank will start its assessment on the project as a whole.
ሐMሐaሐnሐyሐpሐeሐoሐpሐlሐeሐfሐrሐoሐmሐdሐiሐfሐfሐeሐrሐeሐnሐtdሐሐ eሐlሐdሐsሐwሐiሐlሐlሐhሐaሐvሐeሐtሐoሐaሐnሐaሐlሐyሐzሐeሐtሐhሐeሐpሐrሐoሐjሐeሐcሐtሐfሐrሐoሐmሐdሐiሐfሐfሐeሐrሐeሐnሐtሐaሐsሐpሐeሐcሐtሐsሐsሐuሐcሐhሐaሐsሐeሐc
engineers and farm professionals. This process will take months based on the project size as well as the
amount of projects that are up for assessment on DBE’s side.

For the project to be approved by the bank it needs to have proper infrastructures such as access roads and
water irrigation. These are the minimum requirements.
The Ethiopian Agricultural Market Chain and Key
Influencing Factors For Export-oriented Commercial
59

Money Dispersing

Once the project is approved, it will take some time to fully get the money. The money allocated for the project will be
dispersed in 3-5 steps. First the project will use the investor’s contribution (the 30% contribution) to start the project.
Then the money from DBE’s side will be handed out in steps. The working capital will be released at the last step.

Requirements of the bank differs from one bank to another but the major requirements include
Major infrastructures

Labor availability

Performance of machinery or equipment

Design, plan of the building on site

Tin no

Tax clearance

Bank statement

Follow Up
Ongoing projects of the DBE will have follow up assessments every 4 months. DBE will send professionals on different
sectors to check up on the progress.
Chapter seven
Mechanization
in agriculture
Before modern times, farming was a very
labor-intensive process. Dozens of people
ሐhሐaሐdሐ tሐoሐ wሐoሐrሐkሐ dሐeሐlሐdሐsሐ tሐhሐaሐtሐ nሐoሐwሐ mሐiሐgሐhሐtሐ nሐeሐeሐdሐ oሐnሐlሐyሐ
one farmer to manage. A key innovation
leading to this boost in productivity is
mechanized farming. Advanced powered
machines and motor-driven vehicles like
tractors replaced hand tools and the use of
animals to pull farming implements.

Basic tools like shovels or sickles are not


considered to be mechanized farming
implements because they still require manual
labor. Plows in and of themselves are also
typically not included under the mechanized
farming umbrella because for thousands of
years they were powered by horses or oxen.
Farming operations that still use animals for
this are not considered mechanized.
62 Mechanization in agriculture

7. Mechanization in agriculture

ሐTሐhሐeሐ ሐtሐeሐcሐhሐnሐiሐqሐuሐeሐ ሐoሐfሐ ሐdሐeሐpሐlሐoሐyሐiሐnሐgሐ ሐaሐgሐrሐiሐcሐuሐlሐtሐuሐrሐaሐlሐ ሐmሐaሐcሐhሐiሐnሐeሐrሐyሐ ሐtሐoሐ ሐmሐeሐcሐhሐaሐnሐiሐzሐeሐ ሐaሐgሐrሐiሐcሐuሐlሐtሐuሐrሐaሐlሐ ሐoሐpሐeሐrሐaሐtሐiሐoሐnሐs
increases the productivity of farm workers. Tractors, trucks, combine harvesters, and a wide variety of other
agricultural tools are all used in today’s mechanized agriculture.

There are several key farm activities that can be done by mechanization:

Land preparation
ሐTሐoሐmሐaሐkሐeሐadሐሐ eሐlሐdሐsሐuሐiሐtሐaሐbሐlሐeሐfሐoሐrሐcሐrሐoሐpሐgሐrሐoሐwሐtሐhሐl
, ሐaሐnሐdሐpሐrሐeሐpሐaሐrሐaሐtሐiሐoሐnሐgሐeሐnሐeሐrሐaሐlሐlሐyሐiሐnሐvሐoሐlሐvሐeሐsሐpሐlሐoሐwሐiሐnሐgሐh
, ሐaሐrሐrሐoሐwሐiሐnሐgሐa
, ሐn
the ground. Land preparation also involves eliminating or reducing weeds, releasing nutrients into the soil,
improving the soil and plant contact, and lowering the possibility of pest and disease infestation.

Planting/ Seeding
ሐIሐnሐ ሐfሐaሐrሐmሐiሐnሐgሐ, ሐsሐoሐwሐiሐnሐgሐ ሐiሐsሐ ሐsሐiሐgሐnሐidሐcሐaሐnሐtሐ. ሐTሐhሐeሐ ሐbሐeሐsሐtሐ ሐsሐeሐeሐdሐsሐ ሐaሐrሐeሐ ሐcሐhሐoሐsሐeሐnሐ ሐaሐnሐdሐ ሐpሐlሐaሐcሐeሐdሐ ሐiሐnሐtሐoሐ ሐtሐhሐeሐ ሐsሐoሐiሐlሐ ሐaሐfሐtሐeሐrሐ ሐtሐhሐe
been loosen and tilled. The right measures should be followed during this agricultural operation, including
maintaining the right depth and spacing and using healthy soil.

Fertilizer and pest control


In order to increase crops’ output, additional substances are given to them as fertilizer. Farmers use them to
boost crop productivity. These fertilizers include nitrogen, potassium, and phosphorus. Pests in agriculture
are controlled using mechanical, cultural, chemical, and biological methods. Crop rotation and preparation
of the soil by plowing and cultivation before planting serve to lessen the pest burden. Limiting the use of
pesticides in favor of other techniques demonstrates concern for the environment. This may be accomplished
by monitoring the crop, using pesticides only when absolutely required, and cultivating pest-resistant crop
types.

Irrigation
The agricultural practice of applying regulated water to land to help with crop production is known as irrigation.
In arid locations and during times of below-average rainfall, irrigation helps in the growth of agricultural
crops, the upkeep of landscapes, and the revegetation of disturbed soil.

Harvesting and threshing


Harvesting is the process of cutting the crop when it is ready for further use. It is carried out manually, using
a sickle, or with the use of machinery like combine harvesters. Numerous variables, such as the season, crop
type, maturity time, etc., affect harvesting. After crops are harvested, the grains are separated from the chaff
using a process called threshing.
Mechanization in agriculture
63

Agriculture is mechanized via the use of equipment, considerably enhancing the productivity of farm
workers. Mechanization promotes large-scale production and can enhance the quality of agricultural output
ሐiሐnሐaሐdሐdሐiሐtሐiሐoሐnሐtሐoሐiሐnሐcሐrሐeሐaሐsሐiሐnሐgሐpሐrሐoሐdሐuሐcሐtሐiሐoሐnሐefሐcሐiሐeሐnሐcሐyሐ.Aሐnሐyሐtሐyሐpሐeሐoሐfሐmሐaሐcሐhሐiሐnሐeሐrሐyሐuሐsሐeሐdሐoሐnሐaሐfሐaሐrሐmሐtሐoሐaሐsሐsሐiሐsሐtሐwሐiሐtሐhሐf
is referred to as agricultural equipment. The most well-known example is tractor.

On a modern farm, tractors handle the majority of the work. They are utilized to push and pull tools, such as
tilling and seed-planting machines. By loosening the soil and eliminating weeds , tillage instruments prepare
the soil for planting. Harrows and cultivators for weed management, seed drillers, spreaders for fertilizer
and seeds, sprayers for irrigation and pesticide application, as well as numerous other specialized tools, are
important tractor implements in agriculture.

Advantages and disadvantages of owning a tractor

Advantages (+) Disadvantages (-)

Reduce labor efforts High purchase and maintenance cost


Increases in farm revenue Inadequate spare parts
Increase in farm productivity
Increase in quality of products
Versatility in performing a wide range of task
64 Mechanization in agriculture

Considerations a farmer need to make before buying a tractor

According to the job that needs to be done, farmers must select the best tractor for any operation. Their
ሐrሐeሐqሐuሐiሐrሐeሐmሐeሐnሐtሐsሐsሐhሐoሐuሐlሐdሐbሐeሐeሐfሐfሐeሐcሐtሐiሐvሐeሐlሐyሐaሐnሐdሐefሐcሐiሐeሐnሐtሐlሐyሐmሐeሐtሐbሐyሐtሐhሐeሐdሐeሐgሐrሐeሐeሐoሐfሐmሐeሐcሐhሐaሐnሐiሐzሐaሐtሐiሐoሐnሐ.

Size of the farm - The tractor should suit the requirements of the property.

Economic conditionሐሐ-Dሐedሐnሐeሐdሐbሐuሐdሐgሐeሐtሐiሐsሐiሐmሐpሐoሐrሐtሐaሐnሐtሐtሐoሐoሐbሐtሐaሐiሐnሐtሐhሐeሐsሐuሐiሐtሐaሐbሐlሐeሐtሐrሐaሐcሐtሐoሐrሐfሐoሐrሐtሐhሐeሐpሐrሐoሐpሐeሐrሐtሐyሐ.

Tractor profile and operation’s specifications - Purchasing preferred tractors should be cost effective, taking
into account the needs of the farm. Support from the dealer - The amount of spare parts that the dealer
stocks, as well as the dealer’s proximity to the customer, are all important factors.

Alternatives

If you want to use tractors to mechanize your farm but for whatever reason can’t afford or don’t want to invest
ሐiሐnሐaሐgሐrሐiሐcሐuሐlሐtሐuሐrሐaሐlሐmሐaሐcሐhሐiሐnሐeሐrሐyሐtሐhሐeሐnሐtሐhሐeሐrሐeሐiሐsሐaሐlሐwሐaሐyሐsሐtሐhሐeሐoሐpሐtሐiሐoሐnሐoሐfሐrሐeሐnሐtሐiሐnሐgሐ.Tሐhሐrሐoሐuሐgሐhሐrሐeሐnሐtሐiሐnሐgሐyሐoሐuሐgሐeሐtሐt
using the machinery without the big investment.

ARMADA Agriculture is a modern mechanization service provider offering comprehensive services ranging
from renting tractors with complementary implements, spare parts and maintenance facilities to training
operators and maintenance technicians.
Armada provides all of its services on a usage basis to farms of all sizes and levels of mechanization; with
operations and offerings optimized by cutting edge technology and digital solutions.
ARMADA makes agricultural machinery, equipment, and implements accessible for rent; operated by
trained ARMADA personnel to requirements of the farm(er)s by connecting farmers with nearby agricultural
machinery and input providers through a digital platform.

Company Name - ARMADA Agricultural


Email - [email protected]
Website -www.armadaeth.com
Mechanization in agriculture
65

Relevant institutions

ECX- Ethiopian commodity Export

ECX assures all commodity market players the security they need in the market through providing a secure
and reliable End-to-End system for handling, grading, and storing commodities, matching offers and bids for
commodity transactions, and a risk-free payment and goods delivery system to settle transactions, while
ሐsሐeሐrሐvሐiሐnሐgሐaሐlሐlሐfሐaሐiሐrሐlሐyሐaሐnሐdሐefሐcሐiሐeሐnሐtሐlሐyሐ.

ECX creates trust and transparency through aggressive market data dissemination to all market actors,
ሐtሐhሐrሐoሐuሐgሐhሐ ሐcሐlሐeሐaሐrሐlሐyሐ ሐdሐedሐnሐeሐdሐ ሐrሐuሐlሐeሐsሐ ሐoሐfሐ ሐtሐrሐaሐdሐiሐnሐgሐ, ሐwሐaሐrሐeሐhሐoሐuሐsሐiሐnሐgሐ, ሐpሐaሐyሐmሐeሐnሐtሐsሐ ሐaሐnሐdሐ ሐdሐeሐlሐiሐvሐeሐrሐyሐ ሐaሐnሐdሐ ሐbሐuሐsሐiሐnሐeሐsሐsሐ ሐcሐoሐn
through an internal dispute settlement mechanism. ECX provides market integrity at three important levels:
the integrity of the product itself, the integrity of the transaction, and the integrity of the market actors.
The institution offers different types of services from being a onetime seller to permanent member. ECX also
has access to important market information such as world prices and so on, from reliable sources.
66 Mechanization in agriculture

DBE – Development bank of Ethiopia

ሐDሐBሐEሐb
, ሐeሐiሐnሐgሐoሐnሐeሐoሐfሐtሐhሐeሐsሐtሐaሐtሐeሐoሐwሐnሐeሐddሐሐ nሐaሐnሐcሐiሐaሐlሐiሐnሐsሐtሐiሐtሐuሐtሐiሐoሐnሐsሐh
, ሐaሐsሐaሐcሐlሐeሐaሐrሐmሐiሐsሐsሐiሐoሐnሐoሐfሐaሐcሐcሐeሐlሐeሐrሐaሐtሐiሐnሐgሐnሐaሐtሐiሐo
development. In order to meet its predetermined objectives, the bank has the following mandates:

To provide medium and long term investment credit as well as short term loans to viable projects,

To mobilize funds from sources within or outside the country

To manage funds entrusted to it,

To participate in equity investments,

To provide domestic and foreign banking service to its borrowers,

To accept time deposit,

ሐTሐoሐgሐuሐaሐrሐaሐnሐtሐeሐeሐlሐoሐaሐnሐsሐaሐnሐdሐoሐtሐhሐeሐrሐdሐnሐaሐnሐcሐiሐaሐlሐoሐbሐlሐiሐgሐaሐtሐiሐoሐnሐsሐ,

To draw, accept, discount, buy and sell bills of exchange, drafts and promissory notes payable
within or outside Ethiopia,

To issue and sell bonds,

To act as trustee,

To provide technique and managerial service,

To open and operates bank accounts with banks and banking correspondents in Ethiopia or abroad,

To engage in such other activities as is customary carried out by development banks.


68 Mechanization in agriculture

Agricultural Investment Support Directorate (MoA) Main Duties

In collaboration with regional responsible offices, study and identify agricultural investment

1 lands suitable for thvve production of commercial farms and facilitate supply of investment
land suitability documents accessible to the users/investors.

2
Follow up adequate supply and required quality pre and post-harvest technologies
andservices like infrastructure, inputs, farm machineries to investors with competitive price;
in coordination with relevant bodies, follow up and monitor that the investment incentives
are used for intended purposes;

3
In coordination with regional responsible office and relevant bodies monitor and evaluate
agricultural investment land utilization whether it is accordance with project plan and land
lease agreement and provide expertise advice and technical support;

4
Organize, manage, follow up and ensure effectiveness of agricultural investors consultation
forum with stakeholders to provide better support in the sector and implementation of joint
decisions makings;

5 Facilities, provide integrated support and follow up out grower scheme and contract farming
systems to engage farmers and investors in large scale commercial farming investment
Mechanization in agriculture
69

National Metrology agency

In accordance with proclamation No. 201/1980 the National Meteorology Agency has the following powers
and duties to:

Establish and operate a national net-work of meteorological stations designed to represent various
climatic regions of Ethiopia and to satisfy the needs of various national development plans and
activities.

Collecting all meteorological data;

Exchange meteorological data in accordance with international agreements to which Ethiopia is a


party ;

Establish and operate communication systems, in accordance with the law for the collection and
dissemination of meteorological data;

Publish and disseminate analyzed and interpreted meteorological data and meteorological
forecasts;

Give advance warning on adverse weather conditions; disseminate advice and educational
information through the mass media; and provide, upon request meteorological services to any
person;

Collect and centrally administer, notwithstanding the provisions of Article 5 this proclamation, any
meteorological data collected by any person in the country;

Control air pollution and maintain the natural balance of the air in the country;
Chapter eight
Conclusion
ሐTሐhሐiሐsሐ ሐlሐaሐsሐtሐ ሐcሐhሐaሐpሐtሐeሐrሐ ሐiሐdሐeሐnሐtሐidሐeሐsሐ ሐtሐhሐeሐ ሐcሐoሐnሐcሐlሐuሐdሐiሐnሐgሐ
statments of the overall report that has been
made. It is made due to the topics covered
above.

It gives concrete information that inolves the


main agents in the process of making crop
and other sectors being covered in agricul-
ture.
72 Conclusion

Conclusion

ሐFሐoሐrሐtሐhሐeሐEሐtሐhሐiሐoሐpሐiሐaሐnሐcሐoሐmሐmሐeሐrሐcሐiሐaሐlሐfሐaሐrሐmሐsሐeሐcሐtሐoሐrሐtሐoeሐሐ oሐuሐrሐiሐsሐhሐiሐtሐnሐeሐeሐdሐsሐtሐoሐbሐeሐmሐoሐrሐeሐpሐrሐoሐdሐuሐcሐtሐiሐvሐeሐA. ሐcሐrሐoሐsሐsሐtሐhሐeሐv


sections of this handbook, we have attempted to summarize the key steps and factors involved in
successful sesame and soybean cultivation, but also offer a general understanding of the environment
in which export oriented commercial agriculture currently takes place in Ethiopia. We hope this will
contribute to the prevention of obvious mistakes i.e. a higher production.

ሐWሐeሐ tሐrሐiሐeሐdሐ tሐoሐ sሐhሐoሐwሐ yሐoሐuሐ tሐhሐaሐtሐ tሐhሐeሐrሐeሐ aሐrሐeሐ mሐaሐnሐyሐ fሐaሐcሐtሐoሐrሐsሐ tሐhሐaሐtሐ iሐneሐuሐeሐnሐcሐeሐ tሐhሐeሐ pሐrሐoሐdሐuሐcሐtሐiሐoሐnሐ oሐfሐ cሐrሐoሐpሐsሐ. Aሐlሐlሐ oሐf
factors need to be managed and since there are no safety-nets, commercial farmers will likely not
have the luxury to ‘learn as they go’. Therefore we like to reiterate that it is essential that those who
are engaged in commercial farming or intend to do so conduct exhaustive research, planning and
preparation as part of their due diligence or production process.

Commercial farmers with their eye on the export market also need to pay close attention to
developments in the international market for agricultural commodities and think about how they will
market their commodities on the international market.

Adaptability in commercial farming implies more than simply adjusting to existing environmental
conditions on the farm. In addition to monitoring and evolving along with changing weather patterns,
farmers must also consider other important growth factors such as soil health and water availability
ሐsሐiሐnሐcሐeሐ tሐhሐeሐyሐ aሐfሐfሐeሐcሐtሐ wሐhሐiሐcሐhሐ vሐaሐrሐiሐeሐtሐyሐ oሐfሐ sሐeሐsሐaሐmሐeሐ cሐaሐnሐ bሐeሐ gሐrሐoሐwሐnሐ aሐtሐ mሐaሐxሐiሐmሐuሐmሐ pሐrሐodሐtሐ wሐiሐtሐhሐ mሐiሐnሐiሐmሐaሐlሐ iሐnሐvሐeሐsሐtሐmሐeሐn
from the farmer.

Exchanged at a designated ECX primary market in the area.


Exchanged at the central ECX market, if minimum quality and quantity guidelines are met (see ECX
grading criteria in the previous section).
ECX is the only outlet for agricultural exports; all international transactions are completed at the ECX
central market in Addis Ababa.
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Credits
Author
Nathan Yilma Mamo
[email protected]

Contributor
Mekdelawit Mulugeta

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