Miller Magazine Issue: 128 August 2020

EthIopIa 80 MILLER / August 2020 production is the long rainy season June through Sep- tember, called the Meher. Ethiopia’s grain production is complex with many dif- ferent types of crops grown across the country’s differ- ent regions and eco-systems. Ethiopian grain crops are categorized as cool weather: teff (local small grain); wheat; barley; and warm weather: corn; sorghum; and millet. Most farmers depend on rainfall with a few ir- rigated plots in the main grain-producing areas of the northern and central parts of the country. The government is encouraging local and foreign in- vestors to invest in and cultivate large land plots in pasto- ralist and semi-pastoralist areas of the country. Nearly all commercial farms, most of which have been in operation for less than six years, are producing crops for industri- al and export purposes e.g. soybeans, rice, and cotton. The government has provided low lease prices for land as well as other incentives to local and foreign investors to encourage them to develop commercial farms; however, the performance of most commercial farms has not been satisfactory due to security, infrastructure, and financial challenges. Here are some details from USDA’s latest annual Ethi- opia report: SURGE IN DEMAND FOR WHEAT Ethiopia wheat production for 2020/21 is projected to come in at a record five million tons, up by two per- cent over the 2019/20 production estimate. Production increased steadily between 2016/17-2019/20, while the area remained relatively stable, indicating increased yields due to improved practices, the introduction of ir- rigation and increased support to wheat farmers. Wheat makes up about 18% of the country’s total cereal pro- duction and is a key crop for food security. FAS/Addis Ababa forecasts wheat consumption in MY 2020/21 to reach to 6.7 million MT, a slight increase over 2019/20 which shows that the upsurge in wheat demand we saw in years past is starting to flatten out. Rapid urbanization and high population growth coupled with a shift in food habits away from traditional foods has resulted in a surge in demand for wheat. Ten to fif- teen years ago wheat was not a staple crop in Ethiopia, recently it is becoming important grain especially in the urban and periurban areas. Ethiopia grain imports are almost exclusively limited to wheat. Nearly all wheat imports, except wheat donated for food and development aid, is done through the Pub- lic Procurement and Property Disposal Service (PPPDS)