Features of grain marketing networks in Ethiopia: a synopsis of the implications for achieving regional food security objectives

The food situation and crop prospects in sub-Saharan Africa has a gloomy picture in the sense that many countries in the region have been facing exceptional food emergencies caused by difficult weather conditions, persistent civil strife and insecurity. The impact on the countries of the Horn of Africa has been particularly deteriorating. Among the various types of insecurities that many peoples of these sub-region face almost on a regular basis is that of food insecurity. Tens of million people suffer from chronic food insecurity and are often menaced by famine almost on a regular basis. There exists a profound difference among these countries in terms of the status of the food balance (in terms of cereals) and production patterns. On one end of the spectrum is Djibouti that is totally dependent on food imports. On the other end, there is Uganda that is not only self-sufficient but also has been consistently exporting since 1993/94. Eritrea has been depending on cereals imports for at least 50% of its domestic consumption needs, as is the case with Somalia. Kenya also imports cereals to meet about a quarter of its domestic needs; Sudan and Ethiopia are also imports as a margin. Those who exported cereals at least once include Kenya (in 1995/96). Ethiopia (in 1996/97), Sudan (intermittently) and Uganda (since 1993/94)). From these pictures, it could be gleaned that the sub-region is characterized more by deficiency in its cereals balance. As a country, Ethiopia has been dependent on food imports (including food aid) for quite some time now. Reports indicate that between 1995/96 and 1999/2000, the proportion of population under food poverty declined from 47% to 42% respectively; however it roses from 32.5% to 46.7% in urban areas during the same period [13]. This year, the number of people directly affected by drought and consequently dependent on emergency relief food has been reported to be in the order of 14 million. In any one-year, more than four million people (mostly in rural areas) face food shortages and need relief assistance. Surplus production, lack of market outlets, and wastages in one part of the country runs parallel to prevalence of deficit and hunger in another part. Several reasons could be cited for such a picture, but inefficiency in food production and in marketing lies at the core of it. There seems to exist a hidden potential for improving the adequacy, stability and access of food for the simple reason that the gap between what could be achieved under optimal conditions and what is actually attained is extremely wide. And new opportunities, both domestic as well as global, must be captured sooner rater than later for the realization of such a potential. One of these opportunities relates to the development and utilization of market outlets at a regional level for achieving food security at national level. The purpose of this paper is to outline the major features of grain marketing networks in the Ethiopian context and relate it with the objective of improving food security status of the country as well as that of the sub-region at large. First the profile of grain production is presented to show how localized surplus grain production has traditionally been in Ethiopia. This is followed by a discussion of the domestic grain marketing networks. The extent to which this domestic network is linked with networks in neighboring countries is briefly touched upon. Then major constraints for improved grain marketing are outlined; and finally, by way of a summary, areas for possible improvement of the efficiency of grain marketing are presented together with policy options.