As part of ongoing efforts to enhance Ethiopia’s agribusiness landscape, the Food and Agriculture Organization of the United Nations (FAO) has reinforced its support for the country’s newly enacted Agricultural Production Contract Proclamation No. 1289/2023. Through a capacity-building mission conducted from 25 to 29 November 2024, FAO delivered expert-led sessions on contract farming and digital innovations, in collaboration with Ethiopia’s Ministry of Agriculture (MoA) and other key stakeholders. 

At the heart of the mission was a two-day workshop in Bishoftu, co-organized by FAO Ethiopia (FAOET), FAO’s Development Law Service (LEGN), the Office of Innovation (OIN), and the MoA. The workshop brought together 52 participants, including officials from government ministries, regional bureaus, cooperative commissions, producer organizations and exporter associations, with tailored training on contract farming aligned with Ethiopia’s new proclamation. 

Contract Farming workshop in Bishoftu
Photo credit: Matiwos Tegegn

H.E. Dr. Sofiya Kassa, State Minister for Investment and Input at MoA, opened the workshop on November 26, highlighting the crucial role of contract farming and digital innovations in boosting agricultural commercialization and investment.

She further stated that the Government of Ethiopia is committed to advancing contract farming as a strategic approach to safeguard and benefit both producers and buyers: “We need to make it practical by protecting our farmers,” she said while highlighting the role of digital tools in implementing these initiatives, noting the importance of collaboration with FAO to enhance global engagement. 

Lan Li, Economist at FAO, Dr. Sofia Kassa, State Minister for Investment and Input at MoA, and Vithal Karoshi, International Agribusiness Specialist.
Photo credit: Matiwos Tegegn

Following consultations with Dr. Kassa and workshop stakeholders, MoA and FAO jointly identified priority areas for future collaboration, including FAO’s technical support for capacity development and the implementation of the Proclamation.   

• Develop and deliver tailored training aligned with the Proclamation and international best practices in multiple languages.   
• Support the newly established Contract Farming Desk within MoA, the contract farming registry, multistakeholder engagement and collaboration.
• Support legal and policy reviews for the implementation of the Proclamation and policy interventions.
• Conduct a review of contract farming operations, and identify needs, challenges and opportunities for improvement and pilots.
• Develop model agreements for key commodities to fairness and transparency in contract farming negotiations and operations.
• Foster linkages of producers, markets and value chain actors, facilitate pilots and provide guidance on preparation, operation, evaluation and upscaling of contract farming.

The mission also sought to identify synergies and collaborative opportunities with development partners such as Italian Agency for Development Cooperation (AICS) and the International Fund for Agricultural Development (IFAD), to scale up contract farming and agribusiness development in Ethiopia.

FAO remains committed to providing technical expertise and policy guidance to help Ethiopia maximize its agribusiness potential. With continued collaboration, these initiatives will contribute to a more structured, transparent, and investment-friendly agricultural sector in the country.