Increases in cereal prices can have adverse effects on poor net food buyers. This is a particular problem in Ethiopia because of frequent natural calamities – especially droughts – that lead to significant price hikes.
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Local value-addition in developing countries is often aimed at the upgrading of agricultural value chains, since it is assumed that doing so will make farmers better off.
Livestock is important in Ethiopia’s agricultural economy as almost all farmers own some livestock. Livestock assets are valued at 720 USD per farm on average.