The Role of Agricultural Production and Trade Integration in Sustainable Rural Development: Evidence From Ethiopia

The Role of Agricultural Production and Trade Integration in Sustainable Rural Development: Evidence From Ethiopia

Henrietta Nagy (Szent Istvan University, Hungary), György Iván Neszmélyi (Budapest Business School, University of Applied Sciences, Hungary) and Ahmed Abduletif Abdulkadr (Szent Istvan University, Hungary)
DOI: 10.4018/978-1-7998-1042-1.ch021


Ethiopia is the second-most populous country in Africa with rainfed agriculture as a backbone of its economy. Most of the population, 79.3%, are rural residents. Sustainable rural development can be achieved if great attention is given to the labor-intensive sector of the country, agriculture, by improving the level of productivity through research-based information and technologies, increasing the supply of industrial and export crops, and ensuring the rehabilitation and conservation of natural resource bases with special consideration packages. The improvement in agricultural productivity alone cannot bring sustainable development unless supported by appropriate domestic and international trade. The main objective of this study is to identify and examine key determinants that influence agricultural productivity to assure food security, as well as to analyze domestic and foreign trade in agricultural products in Ethiopia.
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Agricultural products are the main sources of food, feed, and industrial inputs. In the developed world, where food demand is increasing in a lesser extent compared to developing countries, the demand for agricultural products such as maize, vegetable oils, and sugar cane has increased for biofuel usage. On the other hand, the increase in income in emerging economies has changed the need for agricultural food consumption. According to Food and Agriculture Organization of the United Nations [FAO] (2018a), the global total consumption of meat and fish is expected to increase by 15% by 2027 while global demand for food, feed, and fiber is expected to grow by 70% by 2050 (FAO, 2009). This is an indication that agricultural production needs to be improved to cope up with the global demand.

Most of sub-Saharan African countries are net importers of food due to low productivity of agricultural sector amid the fast growth of population (FAO, 2017). FAO (2018a) also highlighted that the food consumption would continue to rise due to the population growth.

Key Terms in this Chapter

Quintal: A measure which is traditionally used in Ethiopia; one quintal is equivalent to 0.1 metric ton.

Sustainable Agricultural Intensification: An activity involved in increasing the agricultural productivity without damaging the environment.

Smallholder: A person who have less than one hectare of agricultural holding.

Holder: A person who exercises management control over the operation of an agricultural holding and makes the major decision regarding the utilization of the available resources.

Domestic Trade: An exchange of internally produced goods and services within a country.

Meher (Main) Season: Any temporary crop harvested between the months of September and February are considered as meher season crop.

Food Security: A situation that exists when all people, always, have physical, social and economic access to enough, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life.

Sustainable Development: A development that meets the needs of the present without compromising the future.

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