The Ethiopian government has launched a major agricultural reform programme to transform farmer production clusters into legally recognised, farmer-owned agribusiness companies as part of efforts to modernise the country’s rural economy and strengthen food security.
According to TV BRICS, a partner of the News Agency of Nigeria, the initiative will introduce new legal and management frameworks to help smallholder farmers transition from informal collective farming arrangements into structured agricultural enterprises.
Agriculture authorities said the reform is aimed at improving corporate governance, expanding farmers’ access to finance and strengthening market linkages, enabling them to operate as organised business entities capable of competing in larger agricultural markets.
The initiative builds on Ethiopia’s cluster farming model, locally known as Kuta Getem, which allows farmers with adjoining plots to voluntarily coordinate farming activities while retaining ownership of their individual lands.
The model has enabled farmers to share access to improved seeds, fertilisers, mechanised equipment, modern farming technologies and other agricultural inputs.
Over the past decade, the cluster farming system has expanded significantly, with cultivated land under the programme growing from about 600,000 hectares in 2011 to approximately 13 million hectares.
More than 9.5 million smallholder farmers are now participating in the initiative across the country.
Officials said the expansion of organised farming has contributed to a 29 per cent increase in overall crop productivity, demonstrating the benefits of coordinated agricultural production in improving yields and enhancing rural livelihoods.
The next phase of the reform will focus on developing legal regulations, strengthening management structures and providing financial and business training to ensure the effective operation of farmer-led enterprises.
Agricultural support institutions will also help participating farmers build administrative capacity and adopt professional business practices.
The Ethiopian government expressed confidence that transforming farm clusters into farmer-owned agribusiness companies would strengthen connections between producers and markets, improve household incomes and advance the country’s long-term goal of achieving agricultural self-sufficiency.
