Addis Ababa, June 17, 2026 (FMC) — The House of People’s Representatives Agriculture Affairs Standing Committee has held a public hearing on the draft proclamation on Farmers’ Agribusiness Companies (ABCs), a proposed legal framework aimed at transforming Ethiopia’s agriculture sector into a more competitive, market-oriented system.
The hearing brought together stakeholders from the Ethiopian Agricultural Transformation Institute, Ethiopian Agricultural Businesses Corporation, Ethiopian Cooperative Commission, regional agriculture bureaus, the Ministry of Justice, and smallholder farmers. Participants raised questions and provided feedback on the draft, while strongly emphasizing the role of ABCs in improving farmers’ market access, strengthening value chains, and enhancing rural livelihoods.
Smallholder farmers participating in the hearing expressed appreciation for the proposed proclamation, describing it as a potentially transformative reform that could benefit both current and future generations.
A team led by Addisu Arega clarified that the establishment of Farmers’ Agribusiness Companies is designed to strengthen and complement existing institutions rather than replace them. He stressed that the broader reform agenda focuses on shifting smallholder farmers from subsistence production toward commercially oriented agribusiness participation.
Similarly, Mandefro Nigussie stated that the draft proclamation provides an enabling legal framework intended to enhance coordination among institutions engaged in input supply, marketing, and related services. He added that the framework is expected to improve sector efficiency and competitiveness.
The proposed legislation is expected to address long-standing challenges faced by cluster farmers, particularly weak bargaining power and limited market negotiation capacity. It also aims to promote value addition, expand employment opportunities, improve food security, and support the emergence of medium-scale agribusiness farmers.