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Agriculture is the backbone of the Ethiopian economy. The sector contributes about 43% of the GDP and 86% of exports. The export of Ethiopia is dominated by coffee and oil seeds, which together accounted to 50.6% in 2008/09. Other principal export commodities are ‘chat’, flowers, pulses, and live animals. a) Food and beverage cropsMaizeMaize is an important crop in Ethiopia. It is grown in the mid highland areas of the country. There are huge tracts of land in all regions suitable for maize farming. Maize is mainly produced in SNNPR and Oromia regions where there are about 1.77 million hectares under cultivation. Wheat and Barley Farming Wheat and barley are mostly grown in the highlands and mid highland areas of the country mainly in Oromia (Bale and Arsi Zones) and some parts of Amhara (North Gondar and North Shewa) Regions. Wheat and barley are the main cereal crops in the country with about 1,095,436 and 1,398,215 hectares under cultivation, respectively. The potential for the private sector in agro-processing and out growers’ scheme of development is significant. It offers excellent opportunities for production of wheat under irrigation in the Afar, Gambella, SNNPR and Somali Regions. Oil seeds and pulses A variety of oil seeds (e.g. sesame, rapeseed, linseed, groundnut, sunflower, Niger seed, cotton seed, etc.) are grown in Ethiopia. The demand for sesame has been increasing in the global market making sesame an increasingly important export commodity in Ethiopia. In 2008/09, Ethiopia exported 287,000 tons of sesame valued at 356.1 million USD, accounting for 24.6% of the total export earnings. Rapeseed, linseed, groundnut, sunflower, Niger seed and cotton seed also serve as raw materials for the domestic edible oil industry. Cultivation of pulses like beans, peas, chickpeas, lentils, soybeans, etc. is also common in Ethiopia. Cultivation is carried out in both the highland and lowland areas of the country mainly by peasant farmers. Currently, the country exports a large quantity of pulses to the international market. There are also a number of factories that process pulses in the country. Rice Farming Rice could suitably grow in many parts of the country. The predominant potential areas are:-
Spices The major spices cultivated in Ethiopia are ginger, hot pepper, fenugreek, turmeric, cummins, cardamoms, corianders and black pepper. Currently, there are nearly 122,700 ha under spice farming. Spice production reached 244,000 tonnes per year. The potential areas for the cultivation of spice are Amhara and Oromiya, SNNP and Gambella regions. The potential for low land spice farming is estimated to be 200,000ha. Coffee Ethiopia is one of Africa’s leading exporters of coffee generating most of its export earnings. Coffee is grown over 600,000 hectares, the largest of these areas lie in the south and south western highlands of the country. More than 60% of Ethiopian coffee is produced as forest or semi-forest coffee. The four main coffee growing regions in Ethiopia are: Harrar, Ghimbi, Sidama /Yirgacheffe, and Jimma/Keffa. b) Horticultural cropsFruits, vegetables and flowersThe climate, various soil types and access to water make Ethiopia favorable for the growing of fruits, vegetables and flowers. Major exportable fruits include citrus, banana, mango, papaya, avocado, guava, grapes, pineapple, passion fruit, apples and strawberries. Vegetables include potatoes, cabbage, cauliflower, okra, egg plant, tomato, celery, cucumber etc. Currently a total of 1200 hectares of land is covered by more than 80 flower growers who came from the Netherlands, India and Israel as well as domestic investors. The main cut flower exports include: statice, alliums, roses and carnations. The Ethiopian Horticulture Producer Exporters Association contains extensive information on the sector. c) Livestock and FisheryEthiopia is first in Africa and tenth in the world for its livestock population. According to Central Statistics Agency (2008-2009), the country has 49 million heads of cattle, 17 million heads of sheep, 22 million heads of goats and 38 million chickens.Ethiopia’s potential for fishery development is in its freshwater lakes, reservoirs and rivers. The total fish catch potential from these waters is estimated at 40,000 tons per year. There is also an opportunity for investment in the construction of aquaculture to produce fresh water fish for local and international markets. This sector offers great investment opportunities. The potential for livestock and fisheries have not been fully exploited. The investment opportunities in livestock and fishery are in:
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