PROGRAM: ETHIOPIA
TITLE AND NUMBER: Increased Availability of Selected Domestically Produced Food Grain Crops, 663-001
STATUS: Ends in FY 2001
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: None
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: None
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2001

Summary: USAID's long-term goal is to reduce chronic food insecurity in Ethiopia. Approximately 40% of the country's rural households do not produce enough food or income to meet their basic nutritional needs, and per capita agricultural production has decreased over the past 25 years. At present estimated per capita food consumption ranges from 1.7 kilocalories per day before harvest to 2.0 kilocalories per day during the harvest season, compared to an acceptable level of 2.2 kilocalories per day. According to the 1999 Demographic Health Survey, 51.2% of Ethiopian children under the age of five are stunted, one of the highest percentages in the world. Moreover, the population growth rate exceeds the agricultural production rate, contributing to a growing gap between food need and the supply of food.

Factors associated with chronic food insecurity are inefficient agricultural practices, declining soil fertility, recurrent drought, poor water conservation practices, insufficient access to land, insecure land tenure, and limited non-farm income opportunities. USAID re-structured its food and agricultural development program in FY 99 to more directly address the problem of chronic food insecurity.

Key Results: USAID-supported cooperative development activities, implemented by an international non-profit organization, facilitated the restructuring of 112 farmer cooperatives into business-oriented enterprises with democratically elected Boards of Directors during CY2000. In addition, eight new cooperative were established to take advantage of economies of scale with regard to input (primarily fertilizer) purchase, crop marketing, and the provision of tractor services. Farmer cooperatives supplied 67,766 metric tons (MT) of fertilizer and improved seed to their members during 2000, marketed 27,360 MT of produce and paid over one million dollars in dividends to their members. The activity also facilitated the formation of five savings and credit cooperatives with over 600 total members. In addition, the Bank of Abyssinia made available a $650,000 line of credit to cooperative unions in Oromia region for grain marketing activities under a USAID loan portfolio guarantee program. The unions used these funds, the first commercial loans ever made available by a private Ethiopian bank to agricultural cooperatives, to dramatically increase the volume of produce marketed through the cooperatives. All loans were fully repaid ahead of schedule. Finally, USAID funded the testing of participatory ways to demonstrate farm technology, with over 400 rural households participating in on-farm demonstrations of improved production, processing and appropriate rural technologies during 2000.

Performance and Prospects: All ongoing activities under this strategic objective (SO), Increased Availability of Selected Domestically Produced Food Grain Crops, which was restructured in FY 1999 to support the government's National Food Security Strategy and National Food Security Program, will be continued under a new SO, Rural Household Production and Productivity Increased. One of the on-going activities includes support for Ethiopia's first National Agricultural Census (NAC), currently planned for the 2001/2002 growing season. The NAC will provide a comprehensive picture of Ethiopia's agriculture sector, with statistically valid estimates of crop and livestock production at the district level. The NAC results will form the baseline for future estimates of crop and livestock production, and for donor/government targeting and impact assessment of development and relief efforts.

Possible Adjustments to Plans: Several activities under this SO will support elements of the new SO 7, Rural Household Production and Productivity Increased. The major focus of the new SO will be on the NAC, agricultural cooperative development, and agricultural extension. New activities will focus on micro-enterprise development, adaptive research, and dissemination of technology information in the target areas of Amhara region. To support these efforts, a major contract providing technical assistance and training is planned in 2001. USAID will also integrate Title II-funded activities in these areas under the new SO and pilot an effort to integrate food resources and development assistance to support development efforts. USAID is also considering support for land tenure activities in Amhara. Finally, following design of the National Agricultural Information System, USAID will test elements of it related to the collection and dissemination of crop production and market price information in Amhara.

Other Donor Programs: The United States ranks third among donors in the sector. Other major contributors are Canada, the United Kingdom's Department of Foreign International Development, the European Union (EU), Germany, Italy, Sweden, the World Bank, and the World Food Program. The World Bank is the primary donor for agricultural research programs. EU resources are concentrated on food security and employment generation schemes in the chronically food-insecure areas. Sweden is supporting an integrated rural development program in the Amhara region, and Canada is designing a program to support capacity building for small-scale irrigation schemes in Amhara.

Principal Contractors, Grantees or Agencies: U.S. Department of Agriculture, Volunteers in Overseas Cooperative Assistance, Winrock International and Pact.

FY 2002 Performance Tables

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