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By Sara Gustafson

Over the last decade, Ethiopia’s dairy sector has expanded rapidly. Urban consumers have significantly increased the amount of money they spend on dairy products, and the number of domestic dairy processing firms has tripled to meet the growing demand. All of these signs point to significant structural transformation, which plays an important role in reducing poverty and increasing welfare in developing countries. However, a new study finds that despite its recent strong growth, Ethiopia’s dairy sector still faces some important hurdles.

By: Sara Gustafson

In the wake of the 2008 food price crisis, many policymakers and development practitioners shifted their focus toward enhancing the capacity and resilience of domestic food value chains. In West Africa, this new focus centered on rice. Since rice constitutes a leading staple food source in the region, it was hoped that increased investment in this area would increase domestic rice production and reduce reliance on imports, thus improving food security.

An estimated 73 million people in Africa faced acute levels of hunger and food insecurity in 2019, according to the 2020 Global Report on Food Crises, released this week. The continent accounted for 54 percent of the global total of severely food-insecure people. As the COVID-19 pandemic continues to spread around the world, developing countries in the region will likely see even further disruptions to food access. These disruptions will compound existing food crises and potentially create new ones.

This post first appeared on Trade for Development News and the ReSAKSS blog.

Despite longstanding recognition of the benefits of trade and the importance of improving competitiveness, Africa is performing beneath its potential in global and regional agricultural markets.

Since mid-2018, conflict in the Liptako-Gourma region, the border connecting western Niger, northern and eastern Burkina Faso, and central and northeastern Mali, has displaced almost 700,000 people and caused massive disruptions to market functioning and livelihoods, according to a recent alert from FEWS Net . These disruptions are expected to continue to drive urgent humanitarian needs through the rest of 2020.