Ethiopia has a diverse agro-ecology and sufficient surface and ground water resources, suitable for growing various temperate and tropical fruits. Although various tropical and temperate fruits are grown in the lowland/midland and highland agro-ecologies, the area coverage is very limited. For example, banana export increased from less than 5,000 tons in 1961 to 60,000 tons in 1972, but in 2003 declined to about 1,300 tons worth less than USD 350,000.

This paper shared lessons learnt from the project of Improving Productivity and Market Success in forage development approaches, scaling up strategies, opportunities and challenges in the process of farmer innovations and innovative interventions in the value-chain of market oriented livestock development in relation to sustainable use of natural resources in two districts in Ethiopia.

Graduate programs in agriculture and allied disciplines in Ethiopia are expected to make concrete contribution to market-oriented development of smallholder agriculture. This, among others, calls for realignment and engagement of the programs with smallholder farmers and, value chain, R&D and policy actors. No panacea exists, however, as to how to ensure effective linkages, and thereby responsiveness. Lessons from initiatives on the ground in the country and beyond is thus crucial to inform the development of appropriate policy and innovative strategy.

Ethiopian needs to achieve accelerated agricultural development along a sustainable commercialization path to alleviate poverty and ensure overall national development. In this regard, sustainable commercial of smallholder dairying provides a viable and growing opportunity; with deliberate, appropriate and sustained policy support. A recent empirical analysis concludes however, that Ethiopian smallholder dairy sub-sector has not been able to take-off despite decades of development interventions.

The Livestock and Irrigation Value Chains for Ethiopian Smallholders (LIVES) project supports the efforts of the GoE to transform the smallholder agriculture sector to a more market-oriented sector. LIVES uses a value chain framework to develop targeted livestock and irrigated agriculture commodities through integrated technical and institutional innovations. Such a framework recognizes that value chain actors add value at different stages of the value chain and that individuals and organizations provide inputs and services to the value chain actors.