Ethiopia’s Ministry of Agriculture strategizes to achieve edible oil import substitution

ETHIOPIA – Ethiopia’s Ministry of Agriculture is actively working on increasing oilseeds production, aiming to supply local factories with the necessary inputs and reduce the dependency on imported edible oil.

Agriculture State Minister Melese Mekonnen (PhD) highlighted the government’s commitment to making the edible oil sector a priority within its ten-year flagship programs in the agriculture sector.

The primary objective he said is to boost local oilseed production to meet the needs of domestic cooking oil factories, thereby reducing the reliance on imported edible oil.

Melese stated that the country has witnessed an expansion of cooking oil factories, prompting the government to focus on cultivating grass pea, sunflower, and groundnut as key inputs for these facilities.

“Despite the challenges farmers face in market linkage, the current emphasis is on grass pea production,” he noted.

The State Minister assured collaboration with relevant bodies, including the ministries of Trade and Industry, to address market challenges and ensure a robust supply chain.

As part of the ten-year national flagship program in the agriculture sector, the government has also identified ten priority areas, with particular attention given to rice cultivation.

Melese highlighted the success of covering one million hectares of land with rice in the current Ethiopian fiscal year, showcasing increased cultivation in areas that were not traditionally harvesting rice.

Meanwhile, in line with efforts to reduce imports, the Oromia state has taken significant initiatives in rice production, complementing Amhara’s efforts.

Additionally, Ethiopia has made strides in avocado exports, adding value to the product locally before international distribution.

According to a report by GAIN, Ethiopia possesses favourable agro-climatic conditions for oilseed cultivation and is a global centre of origin for several oil crop plants.

The country is a significant producer of sesame seeds, ranking fourth globally. Niger seed, accounting for over a quarter of total oilseed production, is another vital oilseed crop in Ethiopia.

Despite these achievements, the majority of edible oil consumed in Ethiopia is imported, with palm oil being the dominant type.

In 2015, Ethiopia imported 479,000 metric tons of cooking oil, valued at nearly US$474 million, with over 90% comprising palm oil from Indonesia and Malaysia.

The edible oil industry, employing over 3,000 individuals nationally, plays a crucial role in the country’s economy.

The sector is characterized by a mix of permanent and temporary employment, reflecting the seasonal nature of oilseed production and processing.

Edible oil factories, primarily located in Addis Ababa, Benishangul-Gumuz, Harari, and SNNP Regions, contribute significantly to employment and production.