Agricultural Growth Program (AGP) – Agribusiness and Market Development

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See also: Crosscutting Issues

Date of Operation: 2011 – 2016Ethiopian man in a nursery

Primary Implementing Partner: ACDI/VOCA

Other Implementing Partner: International Fertilizer Development Center (IFDC), John Mellor & Associates (JMA), Booz Allen Hamilton, Danya International, Inc., Kimetrica, Coffee Quality Institute, and Crown Agents

Regions of Operation: Amhara, Oromiya, SNNP, and Tigray

Goal:

Sustainably reduce poverty and hunger by improving the productivity and competitiveness of value chains that offer job and income opportunities for rural households.

Project Objectives:

  • Focus on value chains offering the greatest potential to transform the agricultural sector
  • Intervene in up to four high-potential commodities per region, including important staple crops like maize, wheat, coffee and honey
  • Improve competitiveness of selected value chains and expand the depth and breadth of growth benefits
  • Identify equity of credit for microfinance institutions and rural savings and credit cooperatives
  • Make innovation grants available to support rural enterprises engaged in agriculture processing and private sector aggregation
  • Promote approaches that foster equitable grant allocation practices between men and women

Description:

The majority of Ethiopians reside in rural areas and earn thier livelihoods in agriculture-related endeavors. As part of Ethiopia’s Agricultural Growth Program (AGP), Agribusiness and Market Development (AMDe) has a focused approach that justifies investment in areas with the greatest potential to act as catalysts in transforming Ethiopia’s agricultural and economic sectors. The acronymn AMDe (pronounced Am-day), means "the pillar of my home" in Amharic —depicting the program's goal of bringing opportunities for rural development and economic growth. AMDe consists of three components:

  • Agricultural production and commercialization
  • Small scale rural infrastructure development and management
  • Learning and evaluation

Through AGP – Agribusiness and Market Development (AMDe), USAID will implement a crop value chain expansion project through a performance-oriented contract, seeking to transform and commercialize the agricultural sector, resulting in expanded rural incomes and diversified employment opportunities. The project will assist in developing a stronger private sector able to meet demands of domestic and export markets through linkages with farmers and smallholders, increased productivity, and improved post-harvest practices. Ethiopia’s public sector will also play an important role in this transformation by strengthening the enabling environment and public-sector extension and input (seed and fertilizer) systems. Additionally, AMDe will also integrate nutrition objectives into its overall approach, coordinating with and complementing the activities of USAID’s flagship nutrition program, Empowering New Generations with Improved Nutrition and Economic Opportunity (ENGINE).

AMDe will also coordinate with PSNP GRAD to link investments in technology and marketing efficiency in Productive Ethiopia to the chronically food insecure farmers in adjacent areas of Hungry Ethiopia. The projects will work together to identify opportunities for farmers in both areas to jointly source inputs, which will encourage technology adoption and increased productivity for chronically food insecure households. These linkages will also provide employment opportunities for PSNP GRAD beneficiaries and improve their ability to meet required quality specifications for agricultural commodities.

Expected Results:

  • Increased on- and off- farm incomes and employment for large numbers of male and female smallholders and rural households
  • Increased access to finance for participants all along the value chain to enable increased investment, improved productivity and expanded trade
  • An improved enabling policy environment for selected value chains that increases the rate of private sector growth, trade and investment
  • New and proven technologies and practices made available through the private sector that foster market development
  • Increased investment through public-private partnerships that reduce or spread the risks of innovation or spread the risks of innovation and leverage its impact