The rising costs of animal-source foods in Ethiopia: Evidence and implications

The rising costs of animal-source foods in Ethiopia: Evidence and implications

Author: Bachewe, Fantu Nisrane

Publisher: Intl Food Policy Res Inst

Published: 2017-08-11

Total Pages: 30

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In many developing countries in which staple foods dominate the composition of diets, higher consumption of animal-source foods (ASF) is associated with significant nutritional benefits. Given the importance of prices for consumption decisions in these settings, we analyze ASF price patterns in the last decade (2007-2016), relying on a large-scale price dataset collected in 116 urban retail markets in Ethiopia. We document important seasonal and spatial patterns and we find, worryingly, that real prices of ASF have been increasing in the last decade by between 32 to 36 percent for three major ASF – milk, eggs, and meat. Similar price increases are noted in rural and urban areas and for tradable and non-tradable ASFs. This price trend is in contrast with staple cereals for which real prices stayed at similar levels over the last decade. As we estimate that a price increase of this magnitude would reduce consumption of ASF by approximately 25 percent, holding other things constant, it seems that more investments and attention to the production of ASF and the livestock sector are needed to reduce ASF prices and increase their consumption in Ethiopia.


The rising costs of nutritious foods: The case of Ethiopia

The rising costs of nutritious foods: The case of Ethiopia

Author: Bachewe, Fantu Nisrane

Publisher: Intl Food Policy Res Inst

Published: 2019-08-27

Total Pages: 27

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Costs of healthy diets are worryingly rising in a number of developed and emerging economies. However, less is known on these costs for developing countries. Using price data from a large number of markets in Ethiopia, we find that real prices of all nutritionally-rich food groups increased significantly (between 19 and 62 percent) over the period 2007 to 2016. This contrasts with (1) staple crops (grains, roots, and tubers), which did not show any price increase, and (2) oils, fats, and sugar, the prices of which decreased substantially. Using detailed nationwide datasets and relying on time series methods, we link these price increases to changes in local markets, demand and supply factors, transaction costs, and international trade. We find that prices of nutritionally-rich food groups – compared to cereals – are relatively less affected by international trade and exchange rate changes but more so by rapidly increasing local and city demand. This rising demand is likely due to recent income growth and rapid urbanization and the high-income elasticities for nutritious foods in Ethiopia. Moreover, we find that local production changes affected prices of nutritious items little, but national price rises were found to have been significantly linked with food price rises in commercial clusters in the country. Changes in transaction costs – fuel and transport costs – explained relatively little of the observed food price changes.


Consumption of animal-source foods in Ethiopia: Patterns, changes, and determinants

Consumption of animal-source foods in Ethiopia: Patterns, changes, and determinants

Author: Abegaz, Getachew Ahmed

Publisher: Intl Food Policy Res Inst

Published: 2018-01-22

Total Pages: 27

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Using unique nationally representative household consumption data sets that extend from 1995/96 to 2010/11, this study looks at patterns and changes in ASF (animal-source food) consumption and attempts to identify some of the drivers of these dynamics. We further assess future demand in overall ASF consumption as well as for commercial market development.


Prices of vegetables and fruits in Ethiopia: Trends and implications for consumption and nutrition

Prices of vegetables and fruits in Ethiopia: Trends and implications for consumption and nutrition

Author: Bachewe, Fantu Nisrane

Publisher: Intl Food Policy Res Inst

Published: 2021-06-29

Total Pages: 42

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We study price behavior of vegetables and fruits in Ethiopia over the 15 year period from 2005 to 2019 based on large-scale retail and producer price datasets. This is an important topic given the importance of prices for consumption decisions for these nutritious crops. A number of notable findings come from the analysis. First, prices are rapidly increasing both in real terms and when compared to cereals. At the end of the study period in 2019, vegetables and fruits in real terms were significantly more expensive than 15 years earlier. Especially green leafy vegetables show a significant price rise, likely because few high-yielding varieties of these vegetables have been made available and adopted by producers. Second, part of the rise in prices is explained by increased marketing margins. To understand what accounts for these increases in the marketing margins for fruits and vegetables requires more research, as they contrast with stable or declining margins seen for other food crops over the study period. Third, we see significant seasonality in vegetable prices that is mostly driven by supply factors, but also by demand shifts due to increased demand in fasting periods. Fruit prices do not show such high seasonal variation, however. Fourth, there is significant spatial price variation in the country – vegetable prices are 60 percent more expensive in lowland regions than in the Amhara region, where vegetables are cheapest. Fruit prices in the lowlands are double the prices in the major producing area, the Southern Nations, Nationalities, and Peoples' (SNNP) region.


Transforming agri-food systems in Ethiopia: Evidence from the dairy sector

Transforming agri-food systems in Ethiopia: Evidence from the dairy sector

Author: Minten, Bart

Publisher: Intl Food Policy Res Inst

Published: 2018-12-18

Total Pages: 34

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In the transformation of agri-food systems in developing countries, we usually see rapid changes in the livestock sector. However, good data for clearly understanding this transformation are often lacking, especially so in Africa. Relying on a combination of diverse large-scale datasets and methods, we analyze transformation patterns in the dairy value chain supplying Addis Ababa, the capital and biggest city of Ethiopia. Over the last decade, we note a rapid increase in expenditures on dairy products by urban consumers, especially among the better-off. Relatedly, the number of dairy processing firms in Ethiopia tripled over the same period, supplying a significant part of these dairy products, especially pasteurized milk, to the city’s residents. The number of dairy traders increased rapidly as well, with competition between them becoming more intense over time. Upstream at the production level, we find improved access to livestock services, higher adoption of cross-bred cows, a shift from grazing to commercial feeds, an increase in milk yields, expanding liquid milk markets, a sizable urban farm sector supplying almost one-third of all liquid milk consumed in the city, and an upscaling process with larger commercial dairy farms becoming more prevalent. However, average milk yields are still low and not all dairy farmers are included in this transformation process. Small farms with dairy animals as well as those in more remote areas benefit less from access to services and adopt less these modern practices. For these more disadvantaged farmers, stagnation in milk yields and even declines – depending on the data source used – are observed.


The evolving livestock sector in Ethiopia: Growth by heads, not by productivity

The evolving livestock sector in Ethiopia: Growth by heads, not by productivity

Author: Bachewe, Fantu Nisrane

Publisher: Intl Food Policy Res Inst

Published: 2018-08-09

Total Pages: 26

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Livestock is important in Ethiopia’s agricultural economy as almost all farmers own some livestock. Livestock assets are valued at 720 USD per farm on average. Overall livestock output has grown rapidly over the last decade, estimated at almost 6 percent per year, but about 80 percent of that growth came from increases in the number of livestock. The stock of different livestock species was about 50 percent higher in 2015 than a decade earlier, while modern input use and improvements in production methods contributed little to growth in the livestock sector. Linked to improved access to extension and markets, adoption of improved breeds and improved feeding practices increased, but such adoption patterns started from a very low base. Within the livestock sector, cattle are dominant, making up an estimated three-quarters of the value of livestock stock. However, the share of cattle in total livestock output is declining, and small ruminants are on the rise, especially in pastoralist areas. Given the rapid growth in livestock numbers and the increasing livestock density per unit of land, we find that feeding practices are changing. Grazing land is declining in availability, so reliance on commercial feed markets is increasing. Access to vaccinations and veterinary service provision have improved, and livestock death rates declined slightly over the last decade. However, the number of livestock lost to deaths is still more than twice the number sold for meat production, indicating important challenges remaining for the development of the livestock sector in Ethiopia.


The future of livestock in Ethiopia

The future of livestock in Ethiopia

Author: Food and Agriculture Organization of the United Nations

Publisher: Food & Agriculture Org.

Published: 2019-06-25

Total Pages: 52

ISBN-13: 9251315051

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Ethiopian decision makers have to grapple with so many uncertainties from multiple directions that prioritizing interventions and holding a straight course prove a daunting task. In the next decades, population growth, urbanization, smart technological innovations and adoptions, increased movements of people and goods, not to mention climate change, will thoroughly transform Ethiopian society, in ways that are often unpredictable. This report looks out to 2050 and presents alternative scenarios, or plausible portrays, of the future of the cattle sector in Ethiopia. The government of Ethiopia, with support from FAO and USAID, engaged a multitude of stakeholders in a conversation around the knowns and unknowns of the future, such as past and projected trends of societal and livestock dynamics, current policy priorities, technology uptake and institutional changes.


Fasting, food, and farming: Evidence from Ethiopian producers on the link of food taboos with dairy development

Fasting, food, and farming: Evidence from Ethiopian producers on the link of food taboos with dairy development

Author: D’Haene, Eline

Publisher: Intl Food Policy Res Inst

Published: 2020-05-01

Total Pages: 27

ISBN-13:

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The impact of food taboos – often because of religion – is understudied. In Ethiopia, religious fasting by Orthodox Christians is assumed to be an important impediment for the sustainable development of a competitive dairy sector and desired higher milk consumption, especially by children. However, evidence is limited. Relying on unique data, we shed light on three major issues. First, we observe that the average annual number of fasting days that Orthodox adults are effectively adhering to is 140, less than commonly cited averages. Using this as an estimate for extrapolation, fasting is estimated to reduce annual dairy consumption by approximately 12 percent nationally. Second, farms adapt to declining milk demand during fasting by increased processing of milk into storable products – fasting contributes to larger price swings for these products. We further note continued sales of milk by non-remote farmers and reduced production – by adjusting lactation times for dairy animals – for remote farmers. Third, fasting is mostly associated with increased milk consumption by the children of dairy farmers, seemingly because of excess milk availability during fasting periods. Our results suggest that fasting habits are not a major explanation for the observed poor performance of Ethiopia’s dairy sector nor low milk consumption by children. To reduce the impact of fasting on the dairy sector in Ethiopia further, investment is called for in improved milk processing, storage, and infrastructure facilities.


The Oxford Handbook of the Ethiopian Economy

The Oxford Handbook of the Ethiopian Economy

Author: Fantu Cheru

Publisher: Oxford University Press

Published: 2019-01-10

Total Pages: 1017

ISBN-13: 0192546457

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From a war-torn and famine-plagued country at the beginning of the 1990s, Ethiopia is today emerging as one of the fastest-growing economies in Africa. Growth in Ethiopia has surpassed that of every other sub-Saharan country over the past decade and is forecast by the International Monetary Fund to exceed 8 percent over the next two years. The government has set its eyes on transforming the country into a middle-income country by 2025, and into a leading manufacturing hub in Africa. The Oxford Handbook of the Ethiopian Economy studies this country's unique model of development, where the state plays a central role, and where a successful industrialization drive has challenged the long-held erroneous assumption that industrial policy will never work in poor African countries. While much of the volume is focused on post-1991 economic development policy and strategy, the analysis is set against the background of the long history of Ethiopia, and more specifically on the Imperial period that ended in 1974, the socialist development experiment of the Derg regime between 1974 and 1991, and the policies and strategies of the current EPRDF government that assumed power in 1991. Including a range of contributions from both academic and professional standpoints, this volume is a key reference work on the economy of Ethiopia.


Dairy value chains during the COVID-19 pandemic in Ethiopia: Evidence from cascading value chain surveys before and during the pandemic

Dairy value chains during the COVID-19 pandemic in Ethiopia: Evidence from cascading value chain surveys before and during the pandemic

Author: Hirvonen, Kalle

Publisher: Intl Food Policy Res Inst

Published: 2021-11-23

Total Pages: 58

ISBN-13:

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We combine in-person survey data collected in February 2018 with phone survey data collected in June and September 2021 to study how dairy value chains in Ethiopia have coped with the COVID-19 pandemic. Focusing on the major dairy value chain connecting farmers in North and West Shewa as well as peri-urban and urban producers in and around Addis Ababa to consumers in Addis Ababa, we applied a cascading survey approach in which we collected data at all levels of the value chain: dairy farmers, rural wholesalers, and urban retailers.