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ETHIOPIA
Activity Data Sheet
>> AFR Regional Overview >> Ethiopia Overview PROGRAM: ETHIOPIA
TITLE & NUMBER: Rural Household Production and Productivity Increased, 663-007
STATUS: New
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $200,000 CSD, $3,807,000 DA
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $300,000 CSD, $4,592,000 DA
INITIAL OBLIGATION: FY 2001 ESTIMATED COMPLETION DATE: FY 2006Summary: USAID/Ethiopia's 20-year goal is to contribute to the efforts of the Government to reduce the high levels of food insecurity that have eroded household coping mechanisms, affecting more than six million Ethiopians. An estimated 40% of the country's rural households do not produce enough food or income to meet their basic nutritional needs. According to the 1999 Demographic Health Survey, 51.2% of Ethiopian children under the age of five are stunted. The annual food security gap is increasing due to annual population growth that exceeds the annual growth in agricultural production. This increasing gap stems from inefficient agricultural practices, environmental degradation, declining soil fertility, recurrent drought, poor water conservation practices, insufficient access to land, insecure land tenure, and limited non-farm income opportunities.
At the request of the Government, USAID/Ethiopia redirected its food and agricultural development program in FY 1999 to support implementation of the National Food Security Policy and the National Food Security Program. This new strategic objective (SO) builds upon activities to increase market integration, efficiency and competition previously funded under SO 1, Increased Availability of Selected Domestically Produced Food Grain Crops. Additionally, the new SO will work with local government, private Ethiopian groups such as farmer cooperatives, and non-government organizations to improve natural resource management, rehabilitate environmentally degraded areas, introduce more productive low-input agricultural practices, and increase and diversify rural household incomes, with an initial focus on selected districts of the Amhara Region. The focus on rural households specifically acknowledges the key role women play in processing and preparing food, as well as producing and buying it. USAID will integrate Title II-supported activities in agricultural extension, natural resources management, soil and water conservation, micro-finance and micro-enterprise development to help poor rural households improve their ability to support and feed themselves. This will reinforce contributions to the National Food Security Program and the achievement of the strategic objective (SO). Development Assistance (DA) funds will finance on-going activities under agricultural cooperative development retailer training, Title II coordinating sponsors and micro-enterprise. The beneficiaries will be Ethiopia's poor rural households, particularly in the Amhara region. Child Survival and Diseases (CSD) resources will fund HIV/AIDS activities involving farmer cooperatives.
Key Results: Under SO1, USAID-supported cooperative development activities facilitated the restructuring of 112 (compared with a target of 42) farmer cooperatives into business-oriented enterprises with democratically elected Boards of Directors. In addition, USAID helped establish eight cooperative unions to get economies of scale on purchases of inputs (primarily fertilizer) and crop marketing. The activities will continue under SO 7, with a target of restructuring an additional 56 cooperatives and establishing an additional nine unions in four regions during FY 2001. During FY 2001, the farmer cooperatives expect to market over 80,000 metric tons of inputs and outputs. Agricultural inputs include seeds, fertilizer and pesticides; outputs include farm produce (cereals and vegetables), animal sales (camels, sheep, goats, cattle) and animal products (hides, wool).
Agricultural research, extension and micro-enterprise development activities will begin in 2001. Adaptive research and extension will focus on agricultural technologies appropriate for the chronically food insecure areas, such as environmentally sound agricultural practices, improved food storage and better food preparation. Other practices will aim at improving the nutritional status of children in rural households. Micro-enterprise development activities will initially focus on skill training and assistance for micro-finance institutions to improve their operational efficiency and outreach, along with business skill training and product development for rural micro-entrepreneurs.
Performance and Prospects: USAID activities to increase competition and integrate input and output markets will provide farmers with the incentives for increasing food production in the rural areas by lowering input prices, increasing input availability, and adopting more productive technologies. As a result, increased volumes of inputs and crops will be marketed through agricultural cooperatives.
FY 2001 DA funds ($2,694,000 Agriculture) will support restructuring agricultural cooperatives into profitable business enterprises throughout the four main regions of Ethiopia. One important factor will be USAID support for improving the availability of crop and livestock production information and of market price information to producers and traders.
New USAID activities to increase rural household food security will focus on increasing and diversifying cash crop and micro-enterprise incomes. Additionally, activities appropriate for food-insecure areas will strengthen adaptive food and agricultural research and improve the dissemination of information about low-input, environmentally friendly technologies.
To increase and diversify household incomes, people will require increased access to rural financial services (savings and credit), business and technical skill training, and new product and production ideas. USAID will monitor and report on improvements in rural household access to financial services in the target areas. Access will increase from 200,000 to over 250,000 households by 2002.
USAID-supported research and extension activities will provide rural households with the means to improve labor resources and increase food production and income. USAID will help the Amhara region's agricultural research centers conduct demand-driven applied research on low-input, environmentally sustainable technologies that can be applied immediately to chronically food insecure districts. This approach will emphasize adaptive research on cropping systems, soil conservation, organic soil fertility management, environmental rehabilitation, food storage and preparation techniques, and labor-saving and productivity-enhancing technologies. USAID support will enable agricultural extension offices to instruct people in environmentally sound agricultural practices and improved food storage technologies, food preparation and nutritional practices. Demonstration sites will apply farmer-driven research agendas, and rural households will help assess research results. USAID will support the establishment of 17 applied demonstration sites in target areas by 2002. FY 2001 DA funds ($1,113,000 in Environment resources) will finance these components.
Realizing that levels of malnutrition and disease increase in the wake of growing food insecurity and population growth, FY 2001 CSD resources will be used to fund an HIV/AIDS prevention activity ($200,000 HIV/AIDS), involving farmer cooperatives in condom social marketing.
In FY 2002, USAID requests $4,592,000 in DA funds to support activities targeted at increasing national agricultural market integration and competition. The assistance provided will improve agricultural practices and increase rural household income opportunities in arid and semi-arid zones. In addition, activity under this S.O. will also improve the efficiency of agricultural markets by integrating regional and national market systems and increasing competition. This will provide production incentives and employment opportunities, ensure better distribution of food within the country, and strengthen the market capacity of farmer cooperatives and retailers in the focus regions. USAID is also requesting $300,000 in FY 2002 CSD funds to continue with the HIV/AIDS condom social marketing activity involving farmer cooperatives.
Possible Adjustments to Plans: None.
Other Donor Programs: Canada, Great Britain, the European Union, Germany, Italy, the World Bank, and the World Food Program, in cooperation with USAID, support the Government's National Food Security Program (NFSP). These donors are in the process of aligning their assistance programs and developing new activities to support regional efforts within the broad parameters of the NFSP. USAID was the first donor to fully align its program with the NFSP, and expects to remain a leader in the sector.
In particular, the World Bank supports national agricultural research. In Amhara, the Canadian International Development Association (CIDA) is building capacity to develop small-scale irrigation. Sweden is supporting integrated rural development efforts and regional agricultural research systems. The Dutch are supporting integrated rural development with an emphasis on irrigation. Germany is supporting adaptive agricultural research and community-based natural resource management activities in the food-insecure districts. The European Union is planning support for micro-enterprise development in addition to its ongoing support for employment generation schemes.
Principal Contractors, Grantees, or Agencies: U.S. Department of Agriculture National Agricultural Statistical Service, Agricultural Cooperative Development International/Volunteers in Cooperative Assistance, Winrock International, Amhara Food Security Unit, Amhara Bureau of Agriculture, and Amhara Credit and Savings Institution.
Selected Performance Measures: This is a new Special Objective. Performance measures are to be developed as the new program is implemented.
U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 0 DA 0 DA 0 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Fiscal Year 2000 0 DA 0 DA 0 CSD 0 CSD 0 ESF 0 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA Through September 30, 2000 0 DA 0 DA 0 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Prior Year Unobligated Funds 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Planned Fiscal Year 2001 NOA 3,807 DA 200 CSD 0 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 3,807 DA 200 CSD 0 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 4,592 DA 27,101 DA 35,500 DA 300 CSD 0 CSD 500 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA
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Last Updated on: May 29, 2002 |
