Ethiopia Malt Barley Sector Evidence Based Assesment and Recommendation

Ethiopia is one of the leading producers of malt barley in Africa. Our GIS suitability mapping reveals that over 15 million ha of land is suitable for barley production compared to the current actual coverage of less than 1 million ha of land. The current annual industry demand for malt barley is estimated to be 230,000 Tn. Our projections reveal that annual demand can go beyond 1 million Tn by 2033. Companies engaged in the sector currently are working with over 180,000 smallholder farmers through contract farming. 

The sector has created over 137,000 full-time jobs in aggregation, transport, processing, marketing and distribution stages. An expert analysis indicated that the sector, malting and brewing, contributed over 30 billion ETB in tax revenue in 2023. By sourcing barley locally, the country saved over 1.01 billion $ in import substitution. Discussion with key government officials at different levels indicated that malt barley-based contract farming and the associated packages have brought a meaningful impact on rural household income (up to 150% marginal income increase). Indirectly the knowledge and skills inherited by farmers have enabled them to utilize other crops and farming activities.