Market Size of Ethiopia Agriculture Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Market Size (2024) | USD 5.09 Billion |
| Market Size (2029) | USD 6.65 Billion |
| CAGR (2024 - 2029) | 5.50 % |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Ethiopia Agriculture Market Analysis
The Agriculture In Ethiopia Market size is estimated at USD 5.09 billion in 2024, and is expected to reach USD 6.65 billion by 2029, growing at a CAGR of 5.5% during the forecast period (2024-2029).
- Agriculture is one of the largest components of the Ethiopian economy, accounting for 40% of GDP, 80% of exports, and employs about 75% of the country's workforce. The country's agriculture sector is affected by factors such as weak market linkages and limited use of inputs such as improved seeds, fertilizers, and pesticides.
- Despite numerous challenges, the country has ample opportunities to commercialize fruits, vegetables, and ornamental plants, owing to its proximity to Middle Eastern nations. The favorable government policies encouraging the private sector and the advantageous agro-climatic conditions are the two major drivers of the market's growth.
- Smallholder farmers having less than one hectare of land constitute the major farming section of the country as they are responsible for over 95% of the agriculture production. The majority of these farmers are engaged in cereal production, which is the major staple food for people in Ethiopia. Along with cereal production, the livestock feed industry is also growing as the country hosts one of the largest livestock populations in Africa, with 50 million cattle, 50 million goats and sheep, camels, chickens, etc.
- Furthermore, the government's efforts to support the agriculture sector in the country are anticipated to support the growth of the market studied. For instance, in November 2022, the Ministry of Irrigation and Lowlands launched the Powering Agriculture in Ethiopia project in partnership with Power for All. The project aims to sustainably energize Ethiopia's agricultural system by utilizing decentralized renewable energy solutions (DREs) to improve productivity and income.
- Therefore, agriculture being one of the key sectors in the country, favorable agro-climatic conditions along with initiatives taken by the government are anticipated to drive the growth of the market in the coming years.
Ethiopia Agriculture Industry Segmentation
Agriculture in Ethiopia involves the production of various food crops, such as fruits and vegetable crops.
The market for agriculture in Ethiopia is segmented by type (food crops, fruits, and vegetables). The report includes the production analysis (volume), consumption analysis (value and volume), export analysis (value and volume), import analysis (value and volume), and price trend analysis. The report offers the market size and forecast by volume (metric tons) and value (USD) for the above segments.
| Type | |
| Food Crops | |
| Fruits | |
| Vegetables |
Ethiopia Agriculture Market Size Summary
The agriculture sector in Ethiopia is a pivotal element of the nation's economy, significantly contributing to its GDP, exports, and employment. Despite facing challenges such as weak market linkages and limited use of modern agricultural inputs, the sector holds substantial potential for growth. The government's supportive policies and the country's favorable agro-climatic conditions are key drivers of this growth. Smallholder farmers dominate the agricultural landscape, primarily engaged in cereal production, which is a staple food for the Ethiopian population. The livestock feed industry is also expanding, supported by the country's large livestock population. Initiatives like the Powering Agriculture in Ethiopia project aim to enhance productivity through renewable energy solutions, further bolstering the sector's development.
The Ethiopian government's strategic focus on enhancing agricultural productivity and expanding commercial farming is evident in its policies and development plans. The Second Growth and Transformation Plan (GTP II) and the 10-year economic development plan prioritize agriculture, aiming to transform smallholder farmers into commercial entities and boost agricultural exports. The establishment of the Agricultural Transformation Agency (ATA) underscores the commitment to addressing sector challenges and increasing income for farmers. Despite the reliance on wheat imports, efforts are underway to achieve self-sufficiency and export potential by expanding production areas and improving infrastructure. Projects like DREAM and initiatives by the GFA Consulting Group aim to strengthen agricultural value chains and increase productivity, highlighting the government's proactive approach to driving growth in Ethiopia's agricultural sector.
Ethiopia Agriculture Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Focus on Agriculture Development
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1.2.2 Adoption of Advanced Technologies in Agriculture
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1.2.3 Increasing Government Initiatives
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1.3 Market Restraints
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1.3.1 Low Productivity of Agricultural Lands
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1.3.2 Inadequate Financing in the Agriculture Sector
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Food Crops
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2.1.2 Fruits
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2.1.3 Vegetables
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Ethiopia Agriculture Market Size FAQs
How big is the Ethiopia Agriculture Market?
The Ethiopia Agriculture Market size is expected to reach USD 5.09 billion in 2024 and grow at a CAGR of 5.5% to reach USD 6.65 billion by 2029.
What is the current Ethiopia Agriculture Market size?
In 2024, the Ethiopia Agriculture Market size is expected to reach USD 5.09 billion.
