Cluster Farm by Smallholder Farmers in Ethiopia Reaches 13 Million Hectares
AI summary
Minister of Agriculture of Ethiopia Addis Arga said that the area of land cultivated through cluster farming reached 13 million hectares in the Ethiopian fiscal year ended July 7, 2026.
In a message shared on his social media platforms, the Minister explained that cluster farming is an approach based on the “medemer” (synergy/bringing together) philosophy, in which smallholder farmers are organized together to jointly coordinate and develop their agricultural activities while retaining ownership of their individual holdings.
He said the approach is enabling farmers to organize themselves and use mechanization, improved seeds, fertilizers and agrochemicals, thereby increasing productivity and achieving significant results.
When cluster farming was introduced in 2011 E.C., it began with 600,000 hectares of cultivated land. By 2018 E.C., the area cultivated through cluster farming had reached 13 million hectares, the Minister said.
He added that around 9.5 million farmers have been organized under cluster farming and are cultivating their land through the system, resulting in a 29 percent increase in productivity.
The Minister further stated that efforts are underway to transform these cluster farms into legally registered and professionally managed farmers’ agribusiness companies, in accordance with the newly enacted Agricultural Business Companies Proclamation. The aim is to transform the lives of farmers and make the agricultural sector more competitive.
The newly established farmers’ business companies will help smallholder producers expand their business activities, improve their capacity to aggregate produce, add value, and negotiate in the market, enabling them to obtain better returns for their products.
In addition, the institutional arrangement will provide an alternative mechanism through which smallholder farmers can organize themselves and transition toward medium-scale agricultural production and agro-processing activities.
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About this article
- Length
- 274 words · 1 min read
- Published
- August 4, 2026
- Byline
- newbusiness
- Source
- New Business Ethiopia