Agricultural Mechanization Strategy

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
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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. OVERVIEW OF ETHIOPIA'S AGRICULTURE
Total area: 1.14 Million Sq.km,
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. 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. 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.
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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. 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;
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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. 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. 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. 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. 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. 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. 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. 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
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. 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
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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.  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. 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. 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. Harvesting technologies
Picture galleries

23. COMBINE/TRACTOR SERVICE
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24. Power threshers for cereals

25. MAIZE SHELLER'S
Engine driven Maize sheller

26. LOCALLY MANUFACTURED MULTI
CROP THRESHERS ON USE BY
FARMERS
MyMedia thresherSelam thresher

27. SORGHUM THRESHER
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28. TEF HARVESTER AND
THRESHERS

29. ANIMAL DRAWN TRANSPORTING
TECHNOLOGIES
11/2/2017 29
Donkey
horse
Oxen
Mule

30. GROUND NUT DECORTICATOR
11/2/2017 30

31. GRAIN STORAGE TECHNOLOGIES

32. HERMATIC BAGS
5.14

33. Many thanks
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