Abstract
Wheat is one of the most important crops produced in Ethiopia and both as a source of food for consumers and as source income for farmers. Wheat is majorly produced on the central highlands south-eastern and northwest parts of the Ethiopia. Secondary data were used to review this seminar paper to address the following issues such as production and productivity of wheat, factors affecting the market supply of wheat to the market, challenges and opportunities of wheat production and marketing in Ethiopia. Different scholar found different results on the effect of access to credit and number of family size on the market supply of wheat so it is controversial determinant factor. According to the finding of different authors, access of Market information, level of education, land size and accessibility of all-weather road affect the market supply of wheat positively and significantly and distance to the market affect the marketable surplus of wheat negatively. Ethiopia is characterized by weak institutional support and inadequate infrastructure. Producers are still facing different problems. Favorable environment for private investment, Supportive and collaborative international wheat research networks available, huge ground and surface water potential in the country, government is highly committed to support seed producers these are also some of the opportunities for wheat production and marketing.
Highlights
The Ethiopian Commodity Exchange reported that farm households consume about 60% of wheat produced; 20% is sold; and the remainder is used for seed, in-kind payment for labor and animal feed
To stabilize the demand and supply gap, the government of Ethiopia has International Journal of Business and Economics Research 2021; 10(3): 94-98 been importing subsidized wheat in the last decade on average of 9% annually, while production was still increasing on average of 7% [3]
According to Muhammed U the following major wheat production and marketing problems were identified: Rain failure, higher fertilizer price and delayed delivery, Lack of credit access, Prevalence of crop diseases were the major problems that reduce wheat production and productivity, unfair pricing system and cheating of traders at the time of weighting, Lack of market information providing institutions, higher input price from Chemical herbicides adulteration are the major marketing problems that lower the gain of the farmers from wheat product
Summary
In sub-Saharan Africa, Ethiopia is the second largest wheat producer following south Africa. In terms of area coverage and annual production, wheat is the third most important cereal crop in Ethiopia following maize and Teff [8]. The second largest producer is South Africa with 1.7 million tons, followed by Kenya with just 0.5 million 9 tons [9]. To stabilize the demand and supply gap, the government of Ethiopia has International Journal of Business and Economics Research 2021; 10(3): 94-98 been importing subsidized wheat in the last decade on average of 9% annually, while production was still increasing on average of 7% [3]. Ethiopian government has generically given a great room for industry chains to coordinate supply and demand issues at different functional nodes of value chain to ensure continuous economic growth in the country. Despite the county's attempt to increase wheat production through engaging various strategies, such as enhancing productivity and area expansion, domestic self-sufficiency of wheat both in the form of wheat grain and flour is still far from the plan for the country [24]
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