Improving Agricultural Market Performance:
Developing Agricultural Market Information Systems
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3.3.1 ETHIOPIA’S MIS FOR STAPLE CEREALS It is quite evident that the MIS for the staple cereals is being run primarily to enable
policymakers to effectively manage food security. Prioritisation of this objective by the
Government of Ethiopia has to be viewed within the context of the country’s historical
vulnerability to the risk of famine. According to a report by IFAD (2016) drought, which often
causes significant food shortages, ranks as the highest risk in Ethiopia and leads to loss of lives
as well as economic losses, which in extreme cases can exceed US$ 920 million. Hence, a number
of public and donor agencies collaborate actively in generating and utilising information for
managing major food supply shocks in the country, as demonstrated below:
 The Ethiopia Grain Trade Enterprise (EGTE) – which is a government-owned grain trading
company is the source of primary price data. This data is generated from its own wholesale
trading activities in urban markets as well as collection of price data from rural markets.
One of its main function is to contribute to the stabilisation of domestic grain prices through
buying and holding stocks which is released as and when necessary. It owns the bulk of
storage facilities in the grain sector with a total storage capacity of over 800,000 tonnes. The
price information is disseminated via its website as well as through electronic price tickers
in rural areas. The information is also sharedwith other collaborating partners listed below: Ministry of Agriculture, which has policy oversight of the agricultural sector and has
over 40,000 field staff nationwide who assist in the collection of market information in
rural areas.
 Ministry of Trade (MoT) which has a Directorate of CropMarketing which monitors and
supports the development of output markets for strategic.
 The Ethiopian Food Security Reserve Agency (EFSRA), which manages strategic food
reserves. Unlike similar agencies in Africa, the EFSRA does not directly procure and
store food stocks – a responsibility which is assigned to ETGE – but is responsible for
decisions regarding withdrawal and distribution of relief food stocks in response to
early warning assessments.
 Donor agencies such as WFP, USAID and FAO. The WFP, in particular, uses the price
data generated by ETGE and early warning information produced by USAID-funded the
Famine Early Warning Systems Network (FEWSNET) to publish the Ethiopia Monthly
Market Watch, which reports on developments in markets for the major staple grains
(see Figure 4). FEWSNET relies on weather reports from the Ethiopia National
Meteorological Agency to forecast output of food crops.
 All the above agencies are represented on the Disaster Risk Management and Food Security
Sector (DRMFSS) integrates early warning and response coordination, culminating in
national action plans to respond to the impending food crisis, including volumes of stocks
which the EFSRA can authorise EGTE to release for distribution by relief agencies including
the WFP.