Because of inadequate incentives and low technology inputs, nearly 80 percent of all the wheat produced in Ethiopia is consumed on the farm. However, with improved policies and more investment in improving wheat production, Ethiopia would be able to meet domestic demand and export to neighbouring countries. Domestic wheat would be able to compete with imported wheat if policies were more favourable for producers and other operators along the value chain. Promoting the use of more productive inputs and new technologies, reducing marketing costs, and encouraging value addition (for example with additional processing) would make domestic wheat more competitive.