ETHIOPIA AGRICULTURAL EQUIPMENT MARKET

Ethiopia Agricultural Equipment Market projected to grow at a robust CAGR during the forecast period owing to the growing demand for food, emerging efforts to increase agricultural production along with the rising adoption of mechanized farming.

Major Ethiopia Agricultural Equipment Market Drivers and Emerging Trend

Despite Ethiopia’s rich natural resources and cultivable land which support large-scale agricultural production, the country still imports a greater quantity of agricultural commodities than it exports. However, the government has committed to transforming this situation and has made substantial investments in the sector, alongside cluster of small farmers that collaborate to utilize agricultural machinery collectively, aiming to modernize traditional farming practices and increase productivity. Over the last four years, 5,000 tractors have been acquired and allocated to these groups, with an additional demand anticipated for five thousand units of tractors and 1,000 units of harvesters in the upcoming years. Ethiopia annually imports one million tons of wheat, and the government has devised a strategy to phase out the imports by implementing irrigated farming methods to achieve two wheat harvests per year locally. This presents significant opportunities for global irrigation equipment manufacturing companies to provide their technology to Ethiopia’s agricultural industry.

The other factor supporting the growth of Ethiopia agricultural equipment market is a major effort to enhance fruit production especially avocados destined for export markets, which also boosts demand for equipment. Currently, horticultural and fruit products are exported via air cargo which is costly, and there is a strategy to switch to transporting agricultural commodities inland for export through the Djibouti port. It will involve the need for irrigation equipment and also cold chain infrastructure including warehouse and mobile solutions for inland transportation which global manufacturers are capable of supplying. Additionally, there are three operational integrated agro-industrial processing parks and there are plans to build a few more in the upcoming years. Therefore, global companies specializing in technology and equipment for food processing facilities have significant opportunities in the Ethiopian market.

 Nevertheless, there are challenges such as substantial expenses and investments along with a difficult operating environment. The anticipated high initial expenses of agricultural equipment are likely to hinder its adoption particularly among small-scale farmers facing limited income. The rental industry is expected to emerge as a fresh revenue stream for market expansion aiming to overcome these obstacles.

Product – Segment Analysis

The market segments by machinery types include farm tractors, cultivation and plowing equipment, harvesting machines, fertilizing and planting machines, as well as haying equipment. The farm tractors sector experienced a significant increase driven by the pivotal role they play in modern agricultural methods which improve productivity and efficiency.

Top Market Players

Various notable players operating in the market include Ries Engineering, Kaleb, Moenco, Metec, among others.

Segments covered in the Report:

The Ethiopia Agricultural Equipment Market has been segmented on the basis of Type. Based on the Type the market is segmented into Tractors, Plowing and Cultivating Machinery, Planting Machinery, Harvesting Machinery, Haying and Forage Machinery, Others.

Market Segmentation

Ethiopia Agricultural Equipment Market by Type

• • Tractors
  • Plowing and Cultivating Machinery
  • Planting Machinery
  • Harvesting Machinery
  • Haying and Forage Machinery
  • Others

Ethiopia Agricultural Equipment Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Ries Engineering
  • Kaleb
  • Moenco
  • Metec