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Ambitious multi-million dollars plan to boost crop yields and curb import dependence tests state capacity

Dec 27 , 2025
By SURAFEL MULUGETA ( FORTUNE STAFF WRITER )

Ministry of Agriculture is advancing a multi-million-dollar initiative to revive the country's depleted soils and transform fertiliser use. The blueprint includes the creation of a Soil Health & Fertiliser Institute, with 5.1 million dollars set aside, alongside a 22.9 million dollars National Reference Soil Laboratory. Both are anchors to a 10-year roadmap for a data-driven agricultural sector.


IN A NUTSHELL

  • The federal government is investing 28 million dollars in new soil science institutions and 3.2 billion dollars in long-term agri sector reform.
  • Fertiliser prices have risen sharply, with Urea at 488 dollars a ton and DAP at 771 dollars, driving urgency for domestic production.
  • Only 37.8Kg of fertiliser is used a hectare on average, below international standards, as soil degradation persists.
  • Farmers reveal ongoing limitations with access, affordability, and technical guidance on fertiliser use.
  • The roadmap aspires to double the coverage of sustainable soil management and increase wheat and teff yields by 2028.

Officials at the Ministry of Agriculture are setting in motion a strategy to reverse decades of soil degradation and unlock higher crop productivity, with the proposed establishment of a federal agencies, Soil Health & Fertiliser Institute and a National Reference Soil Laboratory.

Together, the initiatives are expected to inject science and data into a sector long constrained by outdated practices, low fertiliser efficiency, and inadequate soil knowledge, at an estimated combined cost of nearly 28 million dollars.

The Institute, with a planned budget of 5.1 million dollars, will serve as the foundation of a three-year plan to centralise efforts to improve fertiliser use and soil recovery. A more ambitious 22.9 million dollar investment will fund the establishment of the Soil Laboratory by 2028. Both institutions are formulated within a 10-year national roadmap that envisions agriculture transformed into a precision, data-driven enterprise.

The planned laboratory is expected to function as a regulatory and advisory nerve centre, setting analytical standards, validating local testing labs, regulating fertiliser composition, and guiding evidence-based agronomic decisions at the grassroots level.

Agriculture is the backbone of Ethiopia’s economy, accounting for approximately 31.8pc of GDP and employing an estimated 85pc of the population. However, the sector continues to face structural challenges tied to soil degradation, nutrient depletion, soil acidity, erosion, and inefficient use of fertilisers. According to the new roadmap, fertiliser application rates remain low, at 37.8KG a hectare, while soil organic matter and nutrient levels have dropped across many highland farming areas.

Developed by the Ministry and set for phased rollout, the 10-year roadmap puts a national reference soil and plant analysis laboratory at the centre of efforts to address longstanding gaps in soil testing, data quality, and site-specific fertiliser recommendations. The laboratory is expected to become a national quality-control hub, supporting standardised soil analytics, regulating fertiliser, and supplying evidence-based advisory services for farmers and agricultural institutions.

One of the main institutional pillars of the roadmap is strengthening soil information systems. While projects like the Ethiopian Soil Information System (EthioSIS) have laid the groundwork for mapping and data collection, officials acknowledge that gaps in coverage, analytics, and system integration persist, limiting the delivery of tailored agronomic advice to farmers. The new plan calls for expanding the National Soil Information System, developing a national soil spectral library, and upgrading digital geoportals with decision-support tools and interactive dashboards that can guide farmers and policymakers.

The economic urgency behind the new strategy is underpinned by a sharp rise in international fertiliser prices, with Urea trading at about 488 dollars a ton and diammonium phosphate (DAP) at around 771 dollars a ton. These prices represent a steep increase from previous years and have put additional pressure on Ethiopia’s agriculture sector, which has long depended on imported fertilisers to support production.


The federal government projects a total investment requirement of 3.2 billion dollars over the next decade. Of this sum, three billion dollars is earmarked to establish domestic mineral fertiliser manufacturing through public–private partnerships to reduce dependence on costly imports and the volatility of global prices. Additional financing mechanisms outlined in the roadmap include upgrading the Ethiopian Fertiliser Financing Mechanism and setting up a dedicated soil health research and innovation fund.

The roadmap also places strong emphasis on boosting domestic production of mineral and organic fertilisers, promoting green ammonia, and encouraging private-sector participation in distribution and advisory services. Youth- and women-led micro, small, and medium enterprises are expected to play an active role in producing and marketing organic fertilisers and soil amendments, as part of efforts to create new rural jobs and support sustainable farming practices.

The plan sets ambitious targets for the next decade. The authorities seek to expand land under sustainable soil management from 5.8 million to 12.5 million hectares, increase integrated soil fertility management coverage to 60pc of all farmland, reclaim three million hectares of acidic soils, and raise fertiliser application rates to at least 100Kg a hectare. Yield targets are equally bold, with plans to lift wheat productivity from 3.9tns to 4.9tns a hectare and increase teff yields from 1.8tns to 2.7tns.

Soil scientists also call for institutional reform.

According to Dejene Abera (PhD), a soil researcher at the Ethiopian Institute of Agricultural Research and a soil service management team leader, highly diverse soils require a detailed understanding through systematic analysis and research. Dejene, who studied in the Netherlands and at Haramaya University, stated soil characterisation is critical for determining proper fertiliser types and application rates.

He argues that this requires a qualified and standardised national reference laboratory capable of evaluating soil samples and overseeing the performance of other laboratories.


Responsibility for implementation will rest with the Ministry of Agriculture’s Natural Resource Development Sector, which will coordinate with regional bureaus, research institutions, development partners, and private-sector players.

Despite the ambitious scope of the new policy, officials are reluctant to speak publicly about the details. State Minister for Natural Resources Development at the Ministry of Agriculture, Eyasu Elias (PhD), declined to comment on the roadmap and the proposed institutions.


"It's too early to comment on the plan," he told Fortune.

Farmers’ unions, however, have voiced support for establishing a soil health institute and a national laboratory, citing longstanding issues related to fertiliser use, soil variability, and limited farmers' awareness.

Abebe Markos is president of the Damota Farmers Union in Wolaita Sodo, which represents about 68,000 members and supplies more than 5,000tns of teff and wheat annually. A fertiliser distribution for the current season has begun, with the Union receiving 150Qtls of fertiliser. However, sales to farmers have not started because there is no officially set price yet. Abebe expects fertiliser distribution to start within the next two months, once pricing is set.

According to Abebe, soil conditions vary widely even within the same farming area, requiring different types of fertiliser and application rates.

“While woreda-level agricultural offices provide recommendations, affordability and limited farmer awareness often prevent proper use,” he said.

Many farmers apply less fertiliser than recommended, assuming they are conserving inputs, a practice that can reduce productivity. These challenges persist even where advisory support exists at the local level.

Similar concerns were echoed by Wube Gashu, president of the Ghion Farmers Union in Dejen, a town in Amhara Regional State. Representing around 15,000 members and supplying over 4,000Qtls of wheat each year, Wube saw how farmers often lack sufficient understanding of soil behaviour and fertiliser application.

“Farmers sometimes assume fertiliser alone guarantees production, without considering crop selection, timing, or soil recovery," he said. "Farmers need to understand when to plant which crop and when the soil needs rest."


Fertiliser access and pricing continue to shape how inputs are applied.

According to Gasha Assefa, a young farmer from Anbesame in South Gondar Zone, Amhara Regional State, fertiliser distribution has not yet begun in his area, as unions have not started selling the input. He grows wheat and teff on his family’s land, where rising fertiliser prices remain a major concern. Last year, fertiliser cost about 8,000 Br, making it unaffordable for many smallholder farmers like him. Hence, access and rising costs influence how much is used.

Gasha applies fertiliser by hand without knowing the recommended amount and often reduces it due to cost and availability constraints. His family uses compost for garden crops but not on larger plots, where the required volume is substantial. Last summer, he produced more than 10 quintals of wheat.

“I use fertiliser guessing," he told Fortune. "I don’t really know how much I use.”

While universities and research institutions conduct soil analysis, the lack of a national authority laboratory makes it difficult to verify results or enforce standards. A national laboratory could provide benchmark samples and assess analytical work countrywide. According to Dejene, the laboratory should routinely compare its performance with international counterparts to ensure accuracy and credibility.

“We need an authority that understands our land and determines what type of treatment each soil requires,” he said.



PUBLISHED ON Dec 27,2025 [ VOL 26 , NO 1339]


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