Federal democratic republic of ethiopia ministry of agriculture



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Executive Summary

Ethiopia has recorded fast economic growth over the past decade, with an average growth rate of 10.7% per year for the period ranging from 2003/04 to 2011/12. Growth reflected a mix of factors, including agricultural modernization, development of new export sectors, strong global commodity demand and government-led development investments. The GoE is currently implementing the Growth and Transformation Plan (GTP) which sets a long-term goal of becoming a middle-income country by 2025. To achieve the set GTP objectives, the country has followed a “developmental state” model with a strong role for the government in many aspects of the economy. Agriculture remained a dominant sector and an important source of economic growth. According to official statistics, over the past 15 years the average agricultural growth rate has been close to 7% per annum.


Regarding agricultural development investment, concerted efforts have been made by both the GoE and development partners. The Agricultural Growth Program (AGP-I) is a clear example of this collaborative efforts. AGP is a multifaceted investment program supporting agricultural productivity and commercialization focusing on high agricultural potential areas to address some of the key constraints to agricultural growth and thereby contribute to overall economic growth and transformation. It is a program approach and is viewed by Government as the key investment mechanism for development partners and government to collaborate on.
The further growth of the agriculture sector is expected to feature prominently in the second Growth and Transformation Plan (GTP-II), currently under preparation. The proposed program is well aligned with the CPS and would primarily support Pillar One by fostering competitiveness and employment in the agriculture sector as well as addressing cross cutting issues of gender, nutrition and climate change. The Second Agricultural Growth Program AGP II would be aligned with GTP II, thereby contributing to the achievement of targets set for agriculture sector growth. The independent impact evaluations, studies and assessments conducted during the first phase have been used in designing the AGP II to improve implementation and maximize the overall impact of the program.
The Program Development Objective is “to increase agricultural productivity and commercialization of small holder farmers targeted by the Program and also contributes to dietary diversity and consumption at HH level.” Alike the preceding Program, AGP II will also give due attention to the increased participation of women and youth. The program contributes to the higher-level goal of sustainable food security and agricultural transformation by developing untapped potential of well-endowed areas. AGP II will operate in 157 woredas selected from 7 national regional states and one city administration of the country which have the highest growth potential, primarily based on agro-ecological conditions and access to markets. The 96 woredas that were benefited from the AGP I interventions will also be the beneficiaries during the AGP II and this will further consolidate past achievements and strengthen capacities built during the second phase. In the second phase of the program, additional 61 woredas are included. The woredas are distributed among the following national regional states and city administration: Amhara, Oromiya, SNNPR, Tigray, Benishangul-Gumuz, Gambella, Harari and Dire Dawa city administration. The expansion into the new national regional states and Dire Dawa city administration would consist of two woredas in each of Benishangul-Gumuz and Gambella, and one in each of Harari and Dire Dawa.
To achieve its objectives, AGP II will follow: (a) Comprehensive schemes responding to national strategic goals; (b) demand driven and decentralized (participatory) approach; (c) focus on selected areas and value chains; (d) considers cross cutting issues particularly, gender, nutrition and climate smart agriculture; (e) sustainable approaches through enhancing capacity of actors development; (e) mechanisms that enhance complementarities and linkages within and between the different components of the Program, and other Programs and projects within MOA.
Program Components
The Program will build on experiences and lessons learnt through the implementation of AGP I and is composed of the following five components: (i) Agricultural Public Support Services; (ii) Agricultural Research ; (iii) Small Scale Irrigation; (iv) Agricultural Marketing and Value Chain, and (v) Program Management, Capacity building and Monitoring and Evaluation. In addition, the program would support the mainstreaming of cross-cutting issues (gender, nutrition and CSA) throughout the above components.Description of each of the components is highlighted below.
Component 1: Agricultural Public Support Services
Agricultural public support services component aims at increasing access to public agricultural services. The component is broadly classified into two sub components; namely, institutional strengthening and development; and scaling up of best practices.
Sub-component 1.1 Institutional strengthening and development
This Sub component is intended to improve the extension delivery services to be more effective, efficient and demand driven. Key proposed interventions are:

  • Establishing and Strengthening ADPLACs: - This activity would establish and strengthen ADPLACs at regional, zonal and woreda levels. Existing ADPLACs will be strengthened, while new ones will be established in the new national regional states and zones where councils were not established under AGP1.

  • Supporting agricultural extension services through

  1. Rehabilitation and equipping of FTCs,

  2. Demonstration of improved agricultural technologies;

  3. Capacity Development of extension services through bridging physical and skill gaps for smallholder farmers, FTC’s Management Committees, DAs and Subject Matters Specialist (SMS).

  • Animal production and Animal Health services:- To increase productivity and production of animals , as well as reduce the prevalence of animal diseases, key areas of Program interventions are as follows:

  1. Animal production services (a) the establishment of small-scale modern bee queen rearing demonstration and training centers (b) establishment of fish hatchery centre in Amhara region (c) and strengthening National Artificial Insemination Centres (NAIC);

  2. Animal Health Services :- The Program would support the following institutions and systems:

    1. National & regional laboratories. (i)Improving poultry disease diagnostic laboratory; (ii) ) strengthening the Central Veterinary Drug and Feed Quality Control Laboratory; (iii) strengthening the diagnostic and analysis capacities of the National Tsetse and Trypanosomiasis Control Institute; and (iv) ) strengthening diagnostic capacities of the NAIC to ensure appropriate testing of the quality of semen according to the recommendations of the World Organization of Animal Health.

    2. Strengthening regional animal health laboratories, clinics and health posts;

    3. Diseases Surveillance of major trans-boundary and zoonotic diseases, and diseases information system

    4. Human resources and physical capacity development through a special focus on training of trainers on animal production and product processing, animal disease surveillance and health management etc.

  • Crop production and plant health services include: promotion of crop productivity enhancing technologies and strengthening of plant health services.

  1. Establishment of nurseries: The Program will use approaches developed under AGP1 to promote and support the establishment of coffee, vegetable and fruit nurseries.

  2. Strengthening Plant Health Services: This intervention is targeting plant health services with an aim to reduce smallholder crop losses, ensure the supply of safe food for the citizens and support plant health for domestic and international trade of plants, plant materials and their products. This will be implemented through

    1. establishment of plant quarantine stations, plant health clinics and the supply of critical equipment such as clean and healthy seeds and pesticides;

    2. support to the establishment of crop loss data-base through the provision of consultancy services for the establishment of the data base in the Plant Health Regulatory Directorate;

    3. the purchase of critical laboratory equipment and supplies for the establishment of an International Standard Pesticide Laboratory;

    4. strengthening the Federal Plant Protection Laboratory and regional plant health clinics through the provision of the critical equipment and supplies; and

    5. Support to the national seeds quality analysis laboratory through the provision of the critical equipment and supplies.

  3. Capacity development for crop production and plant health services. Activities will initially include the assessment and identification of training needs including workshops, awareness creation activities, and experience sharing visits (local and abroad).

  • Natural resources and soil fertility management services: The Program would support the strengthening of services to build the productive assets of rural communities in selected community watersheds, to sustainably increase productivity and curtail degradation of fragile lands and ecosystems. Key activities to be supported would include:

  1. Local Level Participatory Land Use Planning

  2. Productivity Enhancing Interventions of Community Watersheds

  3. Soil Fertility Management Services

  4. Capacity Development for natural resource management and soil fertility management.

  • Agricultural Mechanization Services. The aim of the agricultural mechanization intervention is to develop and promote appropriate tools and machinery for pre and post-harvest agricultural production systems that can result in labor efficiency and effectiveness which would lead to sustained adoption of the yield-increasing technologies, reduce post-harvest losses and create value addition. Agricultural mechanization activities that would be implemented include:

  1. Support the development of standards mechanization technologies

  2. Train manual pump manufacturers.

  3. Provide technical support for agricultural machinery producers, distributors and service providers.

  4. Organize and support operators and maintenance service providers.

  5. Provide training for spare part providers.


Sub-component 1.2: Scaling up of best practices: -
The objective of this sub-component is to ensure the identification and wider use of best practices and proven technologies to enhance and intensify agricultural production. In consultation with key stakeholders, the extension service will identify improved technologies and management practices in a range of thematic areas related to production, post-harvest handling, value addition and marketing.
Component 2: Agricultural Research
Limited availability of appropriate agricultural technologies, inadequate capacity in multiplying source technologies and limited on-farm pre-extension demonstration of technologies are the key problems hindering productivity of the sector. Thus, the objective of the component is to increase the supply of demand-driven agricultural technologies which directly link to the other components. The component has the following sub components


Sub-component 2.1 - Technology adaptation and generation;-

The program will support the adaptation and generation of improved and innovative technologies to enhance agriculture productivity and commercialization of small scale farmers. The intervention will comprise of two main groups of activities: (i) support to accelerate release of selected in pipeline technologies and management practices; and (ii) support to adaptation and generation of demand-driven technologies.



Sub-component 2.2 - Pre-extension Demonstration and Participatory Research Schemes:-
This sub-component will aim at enhancing the adoption of the new improved agricultural technologies by adopting a participatory approach involving farmers in research demonstrations and popularization of new technologies. Activities supported by the Program will include: (i) Technology pre-extension demonstration and popularization; (ii) Establishing and strengthening of Farmers' Research and Extension Groups (FREGs).

Sub-Component 2.3 - Source Technology Production

The objective of this sub-component is to support the production of breeder and pre-basic seeds and planting materials and animal breeds for further multiplication and on farm technology pre-extension demonstration. The major activities supported by the program include: (i) Production of breeder seed and pre-basic seeds of major crop varieties; (ii) Mass multiplication of disease and insect free tissue culture materials; (iii) Production of source livestock and forage technologies; (iv) Land and water resources technology multiplication.


Sub-component 2.4 - Capacity development to enhance technology adaptation, generation, maintenance and promotion

The activity will focus on physical and skill gaps in research institutions to effectively deliver the research program based on a detailed human and physical needs assessment of key research institutions at federal and regional level. Possible investment that could be considered within the needs’ assessment could include for example: (i) Physical capacity; (ii) Critical equipment and facilities; and (iii) Human capacity development


Component 3: Small Scale Irrigation.
The objective of this component is to increase the access to and efficient utilization of irrigation water of smallholder farmers thereby increase area and productivity of irrigated agriculture.
Sub-component 3.1 – Small Scale Irrigation Infrastructure Development and Improvement
The main objective of this sub-component is to increase area of irrigated land for smallholder farmers by developing SSI infrastructures to improve the availability of and access to irrigation water. The major activities of the sub component are ;(i) Rehabilitation and/or improvement of existing SSI systems; (ii) promotion and establishment of Micro-Irrigation and Household Irrigation Systems (MHIS); (iii) Establishment of New Small Scale Irrigation Systems; (iv) Capacity development.
Sub-component 3.2 - Integrated Crop and Water Management
The objective of this sub-component is to improve irrigated agricultural productivity and management of selected SSI systems and enhance institutional capacity for integrated irrigation water and crop management through the introduction of improved on-farm irrigation water management, agronomic practices and capacity building interventions for smallholder irrigation systems. The major activities to be financed under this sub component are: (i) Establishing and/or strengthening of Irrigation Water Users Associations (IWUAs); (ii) Introduction of Improved Irrigation Agriculture Management; (iii) Human Resources Capacity Development.
Component 4: Agriculture Marketing and Value Chains
The overall objective of this component is to commercialize smallholder farmers through increased access to input and output markets. The component has 4 sub components.


Sub-component 4.1 - Support Agricultural Input Supply System
The main objective of this sub-component is to create access to sufficient quantity and quality of crop and animal inputs through farmer groups, cooperatives and public institutions as well as develop and update guidelines related to input regulation and certification system. The major interventions under this sub component are;

      1. Support to promotion and distribution of improved agricultural inputs through implementing the following main activities a) Establishment and strengthening of Community Based Seeds and forage production groups; b)Support Animal input supply and distribution through Provision of new parent stock for poultry multiplication centers and Strengthening liquid nitrogen production plants ;

      2. Strengthening Information Technology (IT) based input tracking system;

      3. Support to Direct Seed Marketing (DSM);

      4. Input and output regulation and certification through preparation of residue monitoring plan for honey and development of regulatory guideline for agricultural mechanization

      5. Capacity Development.


Sub-component 4.2: Support Farmer Organizations
Establishing and strengthening of farmer organizations will be undertaken to boost collective bargaining power and to enhance efficient and sustainable service delivery.Major activities of this intervention are

(i) Establishing and strengthening of Common Interest Groups (CIGs);

(ii) Establishing and strengthening of Primary farmers ‘cooperative and Cooperative Federation

(iii) Improving access to financial services; and (iv) Capacity building.


Sub-component 4.3: Support Agribusiness Development
The main objective of this sub-component is to increase small scale farmer market access, market efficiency, and value adding products and services along selected VCs. It stimulates market-led agro-enterprise and cooperative linkages with domestic, regional and international markets. An indicative long list of possible VCs has been developed using similar criteria as that of AGP I as show below:

  • Cereals Teff, Wheat, Maize, Barley and Sorghum

  • Pulses Chickpea, Faba bean

  • Oil crops Sesame

  • Stimulants Coffee

  • Vegetables Tomato, Potato and Onion

  • Fruits Banana and Mango)

  • Livestock Dairy, Poultry, Live animals, Cattle Meat, Shoats Meat, Hides and Skins,

and Honey

Activities to be supported under this sub-component are as follows (to be confirmed through the USAID-parallel financing design process):



  1. Support to the coordination of value chain (VC) actors: Under this activity, the Program will assist in establishing and strengthening Multiple Stakeholders Platforms (MSPs) at federal and regional levels.

  2. Technical Support to Strengthen Competitive Agribusiness Actors: The following interventions to strengthen the agribusiness actors could be considered: a) Facilitate linkages among agribusiness associations, farmers, cooperatives and small business groups b) Support Quality, Traceability and Certification of Crops and Livestock ; c) Support through Innovation Competitive Grant and Demonstration Fund.; d) Domestic and foreign trade fairs.


Sub-component 4.4 - Support Market Infrastructure Development and Management
The objective of the sub-component is to improve market access through development of market infrastructure. The major interventions supported under this subcomponent are: a) Construction and modernized management of market centers through the construction of Primary crop, fruit and vegetable products market centers, Primary animal market centers, Milk and honey collection and processing centers, Road side market shades b) Construction and management of warehouses as well as storage, grading and packaging facilities; c) Construction of small bridges; d) Support the development of market information systems. It is expected that most of the activities under this subcomponent will be implemented by MoT, MoA, MoI and FCA, in collaboration with the subordinate institutions at regional and woreda level through a parallel financing mechanism funded by USAID.
Component 5: Program Management, Monitoring, Evaluation and Learning.
The objective of this component is to ensure program implementation, effective M&E of results as well as a consistent and effective approach to capacity development.
Sub-component 5.1: Program management and institutional arrangements
The purpose of this sub-component is to ensure well-functioning institutional arrangements and mechanisms to ensure the effective coordination and management of the Program. This sub-component will support the institutional arrangement such as AGP Steering Committee, AGP Technical Committee, and the AGP-CUs at various program implementation levels.
Sub-component 5.2: Monitoring and Evaluation (M&E)
The AGP2 M&E system will assess and document provision of input, achievement of outputs and processes of implementation as agreed in the annual work plans and progress towards program outcomes and intermediate results. The system will also analyze and interpret such data to evaluate impacts and outcomes, track progress, and monitor how well agreed-upon processes are being carried out.
Sub-component 5.3: Capacity Development for Cross-cutting issues
Human resource development will be provided support to cross cutting issues. It is well recognized that agricultural development programs have to consider nutrition, climate smart agriculture and gender in technology development, technology promotion and scaling up of best practices as well as in market and value chain development. It is also imperative that climate, gender and nutrition sensitive programs have to be combined with capacity development trainings that promote empowerment and behavioral changes.
Sub-component 5.4: Capacity Development Support Facility,
AGP II will adopt a more systematic approach to capacity development that reflects lessons learned from AGP-I and international best practice. An integrated approach addressing capacity issues at individual, organizational and enabling environment levels will be adopted and implemented by all AGP implementing agencies. To support the application of this new approach across AGP-II, a designated capacity development support facility (CDSF) will be established. The CDSF will have two main objectives:

  1. Improve the quality of capacity development interventions within AGP2; and

  2. Strengthen the institutional capacity of IAs to manage AGP2

PART I: BACKGROUND AND STRATEGIC CONTEXT




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