Agriculture makes up more than 43% of the Ethiopian GDP, generates over 70% export values and provides livelihood for more than 85% of its citizens (UNDP 2013). Though Ethiopia’s agricultural potential is considerable, the sector remains focused on primary production – on the supply end of farm to market chains – and provides little of the value added benefits the nation should and could receive. Even in primary production, productivity per hectare remains very low.
The constraints emanate from farm input supply market failures, inadequate private sector activity in processing, inability of farmers to produce high quality product standards and the failure of market intermediaries to efficiently link smallholders to markets in which product differentiation is rewarded with higher prices.
Precise Consult International (PCI), under a cooperative agreement with USAID-Ethiopia, is implementing a project entitled: “Ethiopia Sustainable Agribusiness Incubator (ESAI)”. ESAI has been organized and successfully working to transform the Sesame, Honey and Dairy subsectors of Ethiopia.
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