DEVELOPMENT OF AGRICULTURE AND AGRO-INDUSTRY IN ETHIOPIA Strategy and Programs

382 Pages·2011·6.82 MB·English

_Q 0 - -December 1969
Final Report
DEVELOPMENT OF AGRICULTURE AND
AGRO-INDUSTRY IN ETHIOPIA
Strategy and Programs
Prepared for:
THE TECHNICAL AGENCY
IMPERIAL ETHIOPIAN GOVERNMENT
r' N STANFORD RESEARCH INSTITUTE
rLC Menlo Park, California 94025 • U.S.A.
Final Report
DEVELOPMENT OF AGRICULTURE AND
AGRO-INDUSTRY IN ETHIOPIA
Strategy and Programs
By: CLARENCE . MILLER, WILLIS W. SHANER, and RAYMOND E. BORTON
Prepared for:
THE TECHNICAL AGENCY
IMPERIAL ETHIOPIAN GOVERNMENT
SRI Project 6350
KENYA~
a PROVINCIAL CAPITAL
* OTHER TOWN
ALL WEATHER ROADS
DRY WEATHER ROADS
*illill4NI4INI RAILROAD
PROVINCIAL 8OUNDARIES
TRANSPORTATION FACILITIES, PROVINCIAL DIVISIONS, AND

KEY TOWNS OF ETHIOPIA

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CONTENTS

FRONTISPIECE . 11.
LIST O F ILLUSTRATIONS xv

LIST OF TABLES . . . . . xvii

PREFACE xix

A NOTE ON PLACE NAMES xxxi
Part I: A Strategy for Agricultural

and Agro-Industrial Development

I GOALS OF NATIONAL DEVELOPMENT STRATEGY . . . . . . . 5

A. Expanding the Supply of Food Staples Relative to

Demand . . . . ... . . . . . . . . . . . . . . 5

B. Increasing Foreign Exchange Earnings 7

C. Expanding Investment Funds 7

D. Building Foundations for Future Growth 7

II DESIGN OF A STRATEGY FOR DEVELOPMENT . ....... 9

A. Efficient Use of Funds and Manpower ...... 9

B. Expanding of "Market Oriented" Agriculture for

Greatest Impact . . .... 9

C. Concentration of Efforts . . . . . . . .. . 10

D. Package Programs . . . . . . . . . 13

E. Making Supplies and Services Available . . * . . 14

F. Encouraging Investment ­........... . 15

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I)I,
CONTENTS

Part I (Continued)

II (Continued)

G. Building Institutions, Programs, and Public

Services . . . . . . . . . . . . . . . . . . . . . 17

K. Recognition of Agriculture as a Base for National

Development . . . . . . . . . . . . . . . . . . . 18

I. Extension of Agro-Industries as the Base for

Industrialization . . 19

III PROJECT SELECTION ................. .. 21

A. Bases for Selection . . . . . . . 21

B. Agro-Industries . . . . . . . . . . . . . . . . . 23

C. The Third Five-Year Plan . . . . . . . . . . . . . 24

D. Areas ot Work and Projects Selected . . , . . , . 25

1. Livestock and Animal Products 26

2. Cereal Grains and Pulses . . 26

3. Oilseeds . . . . . . . . . . 26

4. Cotton . . . . . . . . . . . 27

5. Tools and Machinery..... 29

6. Fruits and Vegetables . . . . 30

7. Supplementary Irrigation . . 30

8. Chemicals and Fertilizer . . 31

9. Port Development . . . . . . 31

10. Agricultural Credit . . . . . 31

11. Systems Analysis Studies . . 31

12. Studies in Depth . . . . . . 32

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CONTENTS
Part II: A Plan of Action
Program I FARM INPUTS FOR AGRICULTURAL PRODUCTION
A. Farm Machinery . .......... ..
B. Feed . .................
1. Livestock Forage
a. Improving Forage Supply . . .
b. Shift to Managed Pastures
c. Forage Research Program
2. Feedlots . . . . .
3. Grain Production
C. Fertilizers
D. Chemicals
E. Improved Seed
F. Improved Farm Management.........
G. A Five-Year Program
Program II AGRICULTURAL "PACKAGE" PRODUCTION . . . 57
A. The Ada "Package . . . 59
B. Recommendations for Ada Development . . . . . 60
C. Other Aspects of Ada Development . . . . . ... . . . . 63
1. Education . . . . . . . . . . . . . . . . . . . . 63
2. Human Health . . . . . . . . . . . . . . . . . . 64
3. Animal Health and Husbandry . . . . . . . . . . . 65
4. Grain Storage . . . . . . . . . . . . . . . . . . 66
5. Industry . . . . . . . . ... . . . . . . . . . . 66
6. Forestry and Conservation . . . . . . . . . . . . 67
7. Tourism . . . . . ... . . . . . . . . . . . . . . 67
8. Social and Political Aspects . . . . . . . . . . 68
V
71
CONTENTS

Part II (Continued)

Program II (Continued)

D. Recommendations for Implementation of Ada

District . . ............... ..................... 69

1. Sponsorship S. 69

2. Organization. . ......... . . . .. . . 69

3. Responsibility . .............. S. 71

4. The Program After Ten Years . . . ... . . . . . 72

E. Package Crop Production Areas . . 73

1. Area I--Debre Zeyt/Nazret Area . . . S. 73

2. Area II--Addis Abeba/Debre Berhan-Fiche Area . . 75

3. Area III--Lake Tana Area ... ...... .. . . 75

4. Area IV--Dese Area... . . . . ...... . . . 75

5. Area V--Harer Area . . . . . . . . . . . . . . . 76

6. Area VI--Asmera/Northern Tigre Area . . . . . . 77

7. Area VII--Shashemene Area . . . . . . . . . . . 77

8. Area VIII--Debre Marqos Area . . . . . . . . . . 77

9. Area IX--Bako-Lekempti-Gimbi Area . . . . . . . 78

10. Area X--Jima-Bedele Area . .... . . . . . . . . . 78

11. Area XI--Setit-Humera Area . . . . . . . . . . . 78

12. Area XII--Asela-Ticho-Robi-Beqoji Area . . . . . 79

13. Possible Areas for Castor Bean Production . . 79

F. Research Designed to Increase Oilseed Production . . 80

G. Cattle Package Production Areas . . . . 84

H. A Five-Year Plan . ............... 85

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CONTENTS
Part II (Continued)
Program III SUPPLEMENTAL IRRIGATION FOR AGRICULTURAL
PRODUCTION . . . . . . . . . . . . . 89

A. Implementation of Dogali Project . . . 91
1. Organization . . . . 93

2. Financing 93

3. Additional Government Involvement 94

B. Implementation of Emberemi Project 95

1. Pilot Farm . . ......... 96

2. Training and Advisory Services . 96

3. Monitoring Groundwater . . . . . 97

4. Storage Reservoirs ....... 97

C. Implementation of Borkenna Project 98

1. Project Planning and Financing . . . . . . . . . . 98

2. Water Rights . . . . . . . . . . . . . . . . . . . 98

3. Project Area Land Owners . . . . . . . . . . . . . 99

4. Loan Sources in Ethiopia . . . . . . . . . . . . . 99

5. Possible Foreign Investment . . . . . . . . . . . 100
6. Other Considerations . . . . . . . . . . . . . . . 100
7. Crop Suitability . . . . . . . . . . . . . . . . . 101
D. A Ten-Year Schedule for Implementation . . . 102
1. Net Foreign Exchange Earnings . 104
2. Other Strategy Considerations . . . 104
3. Employment...... ..... . . . . . . . .. 105
4. Suggestions for Government Action . . . 105
E. A Five-Year Plan . 107
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CONTENTS
Part II (Continued)
Program IV AGRICULTURAL CREDIT......... . . . . .. 111

A. Farmer Classification for Loan Purposes . . . . . 111

B. Proposed Credit Program... . . . . . . . . .. 112

C. Small Agricultural Credit Loans Account . . . . . 115

1. Establishment of a Loan Committee . . . . . 117

2. The Role of Agricultural Extension Officers

and Community Development Officers . . . . . 118

3. Selecting Areas for Small Credit Loans . . . 119

4. Individual Loan Procedures . . . . . . . . . 121

D. Storage and Marketing Facilities 123

E. Recommended Changes in Bank Practices . . . . 125

1. Interest Rates . ... . . . . . . . . 125

2. Publicity to Increase Bank Deposits 126

3. Deposit Insurance . . . . . . . . . 126

4. Chattel Mortgages . . . . . . . . . 126

5. Other Credit Organizations...... 127

* F. A Recommended Private Rural Bank Program-for

Ethiopia . . . . . . . . . . . . . . . . . 128

G. A Five-Year Credit Plan . 129

Program V PROCESSING OF AGRICULTURAL PRODUCTS 131

A. Solvent Extraction of Oilcake . . . . 132

1. Inter-Industry Relationships . . 134

2. Labor Availability . . . . . . , 135

3. Implementation... . . . . .. 135

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CONTENTS

Part II (Continued)

Program V (Continued)

B. Castor Oil Production . . . . . .. . . . 137

1. Assistance to the Enterprise . . . . 139

a. Seed Imports . . . . . . . . . 139

b. Port Development . . . . . . . 139

c. Land Development Encouragement 140

d. Inter-Industry Relationships 140

2. Implementation . . ........ 141

a. Production State . . . . . . 141

b. Processing Stage . . . . . . . . 142

3. Other Uses for the Plant . . . . . . . . . . . 143

C. Dry Salting Treatment of Cattle Hides . . . . . . . 144

1. Expansion Potential . . . . 145

2. Inter-Industry Linkages . . 145

3. Implementation...... ..... .. . .. 146

a. Organization and Financing . . 146

b. Reactivation of Malgue Wendo Abattoir . . 147

c. Cooperation with Livestock and Meat Board 148

d. Local Buying Stations . . . . . . . . . . 148

e. Hide Marketing Arrangements . . . . . . . 149

f. Construction of Building . . . . . . . . 149

g. Recruitment of Labor Force . . . . . . . 150

h. Purchasing Equipment, Tools, Supplies . . 150

i. Initial Pilot Operations . . . . . . . . 151

j. Expanding to Full Volume . . . . . . . . 151

k. Replication of the Project . . . . . . . 152

D. A Five-Year Program...... ..... .. . .. 152

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