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Agricultural Mechanization Strategy


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Agricultural Mechanization Strategy

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Agricultural Mechanization Strategy

  1. 1. Ethiopia Ministry of Agriculture & Natural Resource Agricultural Mechanization Strategy by Wondiye Gezahegn (Agricultural mechanization specialist) South-South Knowledge Sharing on Agricultural Mechanization conference Hilton Hotel, Addis Ababa, Ethiopia October 31– November 1, 2017 1
  2. 2. ORDER OF PRESENTATION Overview of Ethiopia ’s Agriculture Historical Background of Ethiopia Agricultural Mechanization Agricultural Mechanization strategy Framework Vison and objectives of the strategy Priority interventions & activities Status of Mechanization strategy implementation Way foreward Conclusion
  3. 3. OVERVIEW OF ETHIOPIA'S AGRICULTURE Total area: 1.14 Million, Ethiopia has registered remarkable economic growth and poverty reduction - over the last decade Real GDP grew annually by an average 10.7 percent over the period 2005-2014. Arable Land: 74.3 Million Ha Potential Agric Land Area is :>14.3 Million Ha agric sector plays very crucial role in economy, contributing 41.5% to GDP on average over the last decade, and it was the largest contributor to GDP Dominated by small-scale farmers, using rudimentary tools such as hoe to produce outputs. agricultural sector also grew rapidly, at an average annual rate of 8.4 percent.
  4. 4. OVERVIEW OF ETHIOPIA AGRICULTURE  Part of the growth in the agricultural sector is explained by the increasing adoption of biological inputs, such as seed, fertilizer, chemical etc Production are generally under rain-fed conditions and 2.8 million ha irrigation schemes vs 5.3 million ha Little mechanized farming practiced, although potential is over 8 million hectares. Common mechanized activities are mainly land preparation, harvesting threshing and transportation.
  5. 5. HISTORICAL BACKGROUND OF MECHANISATION(1 Mechanization development in Ethiopia dates back to 1960s attempt to introduce improved tillage implements during the 70s & 80’s a rural technology promotion activities started initially by the name ‘‘rural industry promotion’’ being part of different development projects namely:  Chillallo Agricultural Development Unit /CADU /later /ARDU/, Wolaita Agricultural Development Unit /WADU/ These had progressed and resulted in the establishment of Rural technology promotion centers equipped with full manpower & machinery. 5
  6. 6. REVIEW OF AGRICULTURAL MECHANIZATION RESEARCH(3) HISTORICAL BACKGROUND In late 1970 and early 80’s a rural technology promotion department was initiated under the Ministry of Agriculture responsible for the promotion of appropriate technologies in:  Agricultural implements, Rural energy, and Rural industry sectors. The department later grow to other four rural technology promotion centers (RTPCs) namely: Harar RTPC, Jima RTPC, Bahir Dar RTPC, and Kombolocha, to fulfill the objectives of RTPC in their respective surroundings In the late1980’s Rural Technology promotion Ceners were established in different location With objective of providing appropriate rural technologies to end users (farmers)mandated to multiply and directly introduce to farmers technologies already6
  7. 7. HISTORICAL BACKGROUND …H(6). This programme was transformed to mechanization research focusing on:  Pre-harvest, Harvest agricultural technologies  Post harvest and Agro-processing technologies  Alternative sources of energy  water using and lifting technologies A number of research works and introduced to end users and reasonable number of farmers benefited; 7
  8. 8. PRIVATE SECTOR DEVELOPMENT Conducive investment policy and privatization of state farms and state owned enterprises pave way for flourishing of private importer, distributor, mechanization service providers, commercial farms, horticulture and flower farms. Moreover implement, seeders and tools manufacturing by private sectors have emerged. Private sector also been involved in testing and demonstrating on field various machinery that are imported and manufactured locally Currently in most part of Ethiopia in particular cereal growers area cultivation, seeding ,spraying, threshing, harvesting and transporting services are dominantly given by private service providers. As the result of mechanization services of harvesting has now expanded to Somalia and Amhara regional governments. The private service providers have achieved this success despite bottle necks that they face on policy , support, and good governance issues .
  9. 9. CHALLENGES Importers – • Can not sell whole goods as well as parts on stock bases due to impo tariff (unless they have bonded ware house a limited time of 4 months- risky)  Limited foot print or visibility in the country  Limited financial access- seen as trader high collateral requirement Service providers –  Unlike farmers can not access loan using the tractor as collateral  Their services are subject to VAT. Example- farmers who transport the produce by tractor pay vat while those who transport by truck do not pay Vat.  Un like farmers can not get service support vehicle on duty free.  Lack of availability and high price of parts  Can not get new tractor on timely bases as there is no stock  Unlike construction equipment service provider can not import tipping truc on duty free bases  Shortage of trained technicians and operators
  10. 10. CURRENT SITUATION Out of cultivated area of 16 million hectares, only10% is under some form of mechanised cultivation which is mainly land preparation and harvesting and threshing technologies This low level of mechanisation is largely due to;  Limited access to appropriate agricultural machinery/equipment for farm operations along the value chain  High cost of agricultural machinery/equipment and spare parts;  Frequent breakdown of machinery/equipment as result of limited skill level of operators/mechanics  Low level of local fabrication and product development capabilities  Lack of machinery/equipment assembly plants  Lack of specialized training programmes for machinery
  11. 11. Agricultural mechanization strategy prepared in 2014- MoANR, EATA and other key partners involved Currently approved to be used as a working documents shared among key partners and stakeholders Promotion of the strategy-top mgt development partners, policy makers … Started implementing major components of the strategy 11 Overview of Agricultural Mechanization strategy
  12. 12. Purpose and Scope of the strategy national visions and strategic objectives AM until 2025, with clear interventions and key activities detailed in GTP Identify the current context and primary bottlenecks in each segment of the value chain; national agricultural mechanization business models, describing key actors and their interactions, including strategic objectives, and; design a set of comprehensive, actionable interventions addressing these bottlenecks prioritized key activities and appropriate owners implementation plan to realize the components
  13. 13. 1. Limited implementation capacity in all implementing bodies (MoANR and EIAR , regional research, agriculture office.. 2. Lack of Finance for the private sector interested to be engaged in the AM services 3. Lack of appropriate technologies fitting to the different needs of end users specially smallholder farmers 4. institutional gap in the regions to support the initiatives at Federal & regional level 5. Lack of effective Approaches followed in availing AMTs  Limited role of the Private sector in AMTs supply  As results government is involving in technology supply 6. Absence of enabling environment for the private sector 7. Projects/programs in action are limited to effectively and timey address the challenges Gaps identified
  14. 14. political will and commitment to promote agricultural mechanization Growing demand and purchasing capacity for AM technologies by farmers Growing number of private sectors interested to provide agricultural mechanization services (custom hire services)  interest to have initiatives for the promotion and utilization of agricultural mechanization technologies regions are moving towards institutionalizing agricultural mechanization sector 14 Opportunities
  15. 15. VISION & OBJECTIVES OF THE STRATEGY Vision Raise Level of Agricultural mechanization expressed in Mechanization index from 0.13 to 1kw/ha in 2025 1kw/ha in 2025 Objectives of the strategy improve fertilizer and seed application eff. by 50% introduce AM technologies be environmental and female friendly Adress 25% women headed households and 25% youth Minimize of harvest and post-harvest losses from 20 to 5% Address at least 50% of pastoralists and agro- 15
  16. 16. 16 R&D 1.Limited visibility of AM needs 2. Limited resources allocated to AM research 3.Low capacity in AM on R&D 1. conduct participatory needs assessment to identify the most impactful mechanized technology opportunities for the private sector 2. identify requirements and allocate sufficient resources to fund government research on mechanization needs 3a. build human capacity in agricultural mechanization 3b. incentivize manufacturers to Manufacturi ng, import1. Infant domestic manufacturing sector 2. lack of machinery standards and testing & certification 3. Import tariffs drive up the cost of agricultural machinery 1a. promote domestic manufacturing efforts 1b. create standards for the manufacturing of small and medium scale machinery 2a. create testing and certification standards focusing on safety and performance 2b. establish national testing and certification body 3. extend the agricultural tax Distributio n . lack of efficient and effective distributi on models for AMT 1a. promote the creation of a distribution network for agricultural machinery 1b. establish a "machine distributor" fund to provide liquidity to local distributors and support the formation of leasing companies 1c. build distribution system for small and medium Promotion, Purchase and usage1. limited awareness of mechanization among farmers 2. Lack of financial services to facilitate the use of mechanization services 3. Weak Institutional Capacity for promoting of AMT 1a. promote awareness at the grass roots level by facilitating linkage with private companies 1b. promote awareness among women including women headed households 1c. promote local level contractor class render mechanization services to SHFs 2a. increase accessibility by farmers of financing services 2b. increase breadth and depth of financial product offerings to serve mechanization needs 3. establish institution After sales Services lack of available spare parts and after-sales services ensure availability of spare parts for imported, medium and large agricultural machinery 1b. support the formation of privately run regional supply centers for commonly needed spare-parts and ensure a sufficient number of trained technicians 1c. support regular accreditation /maintenance renewal system to ensure fill functionality of machines Major components of the strategy Interve ntions Systemic challenge
  17. 17. CURRENT STATUS OF THE STRATEGY … The strategy has been endorsed concerned govt, political will and commitment to promote agricultural mechanization number of initiatives for the promotion and utilization of agricultural mechanization technologies- Regional government tarted to create organizational structure-agency level, department level Mobilization of potential of private sector to provide agricultural mechanization services (custom hire services) to new regions and areas etc Middle level agricultural mechanization professionals Training programme 17
  18. 18. private/youth Business models for machinery service, establishment of Youth groups to engage machinery service Preparation of National standards for over 116 agricultural mechanization technologies Growing synergy linkage and cooperation created among actors in the sector (private companies and NGOs ) Initiative to Reduce/Avoid Taxes burden on selected agricultural machinery import program/project that can address the key challenges of the sector-NGOs and Gos Promotion and sensitization works-National Symposium18 CURRENT STATUS OF STRATEGY IMPLEMENTATION
  19. 19.  Continue developing National standards for remaining agricultural mechanization technologies  regulatory frameworks for enforcing standards  Establishment of testing and certification system  supporting & Sustaining linkage and cooperation among implementing bodies at all levels.  Strengthen AM platform (all AM value chain actors) at Federal and Regional levels.  Enhance involvement of the private sector WAY FORWARD
  20. 20. Engage financial institutions and create credit scheme -all actors in the agricultural mechanization value chain. Machinery lease schemes for service providers and farmers Adequate access to foreign currency for importers/manufacturers Other financial facilities for all actors Reduce/Avoid Tax burden on agricultural machinery, &spare parts import Create enabling environment and incentives for the private sector Develop and implement comprehensive program/project that can address the key challenges of the sector –public led capacitating implementing institutions of WAY FORWARD
  21. 21. Ethiopia is aggressively pursuing policy and programmes that will address the mechanization gap In the recent paradigm, the service delivery Model appears to be a plausible model to arrest some of the challenges in mechanizing Ethiopia’s agriculture. Ultimately, the implementation of the strategy is seen as a laudable solution to bring all inputs and services required for agricultural production under21 CONCLUSION
  22. 22. Harvesting technologies Picture galleries
  24. 24. Power threshers for cereals
  25. 25. MAIZE SHELLER'S Engine driven Maize sheller
  29. 29. ANIMAL DRAWN TRANSPORTING TECHNOLOGIES 11/2/2017 29 Donkey horse Oxen Mule
  30. 30. GROUND NUT DECORTICATOR 11/2/2017 30
  32. 32. HERMATIC BAGS 5.14
  33. 33. Many thanks 33