Agricultural Transformation Institute Launches Program that Benefits 6.5 Million Farmers

Addis Ababa, November 18, 2025 (ENA) -- The Agricultural Transformation Institute (ATI), in collaboration with the Ministry of Agriculture, has launched the second phase of the Agricultural Commercialization Clusters Program that benefits more than 6.5 million farmers today.

Named Agricultural Commercialization through Climate-Smart and Inclusive Innovations (ACCII), the event was attended by senior government officials, ambassadors, development partners, private sector representatives, and farmers.

The original Agricultural Commercialization Clusters (ACC) program was initiated in 2019 to transform small-holder farming toward a more productive and market-oriented system.

Over its five-year implementation, the ACC reached more than 4.4 million farmers, including 2.43 million organized into Farmer Production Clusters (FPCs) which strengthened collective marketing and improved access to services.

Building on ACC successes, the ACCII program was launched today to scale agricultural transformation through climate-smart practices and market innovations, focusing on developing dynamic Farmer Production and Agribusiness Companies.

Speaking at the event, Agriculture Minister Addisu Arega said ACCII is both timely and strategic, promoting climate-smart agriculture while strengthening market linkages and value addition.

 

"This program is a milestone towards modernizing our agriculture and enhancing the livelihoods of millions of farmers," he stated.

Noting that agriculture remains the backbone of Ethiopia’s national economy, the Minister stressed the need for a modern agricultural approach to overcome systemic challenges, including climate variability and rising food prices.

According to the Minister, ACCII is set to expand its reach to 6.5 million farmers across nine regional states, integrating nutrition, gender, and youth inclusion into its framework.

It will also focus on building stronger institutions for monitoring and coordination.

On his part, Ethiopian Agricultural Transformation Institute Director-General Mandefro Nigussie said that Agricultural Commercialization through Climate-Smart and Inclusive Innovations (ACCII) builds upon the previous ACCI initiative.

 

Several enhancements and key differences from the initiative include selection of additional strategic commodities alongside the original eleven.

Also, the geographic coverage of ACCII has been expanded to reach more regions across the country, he added.

In terms of financial model, ACCII will implement a co-investment model, enhancing support for primary change agents, including smallholder farmers and other stakeholders.

Denmark's Ambassador to Ethiopia, Sune Krogstrup, hailed the launch of the Agricultural Commercialization through Climate-Smart and Inclusive Innovations (ACCII) as a significant milestone.

 

As a longstanding supporter of climate-smart agriculture in Ethiopia, Denmark is proud to witness the positive impact on the livelihoods of millions of farmers with notable improvements in productivity and income, he said.

Emphasizing the achievements of the Agricultural Transformation Institute (ATI), which recently received FAO 2025 Award for its efforts, Ambassador Krogstrup expressed his country’s commitment to supporting Ethiopia's shift from smallholder farming to a more commercial and competitive agricultural sector.

The Ambassador pointed out that Denmark is the first mover, trusted partner and major donor to ACCII, contributing approximately 79 million USD.

The program is crucial to mainstream climate change initiatives, gender equality, and youth empowerment while transforming farmer production clusters into established agricultural companies, he underlined.

ACCII would also address the challenges faced by refugees and internally displaced persons (IDPs) through a humanitarian development peace approach, targeting the integration of over 300,000 individuals and enhancing their resilience to climate change and socio-economic challenges.