Ethiopia’s agriculture poised for increased productivity following Kerchanshe/McCormick partnership
Ethiopia’s agricultural sector has received a major boost following the official partnership between the Kerchanshe group and Italian tractor manufacturer McCormick tractors which is a brand of Argo Tractors.
The agreement which was unveiled today during a launch ceremony at the Sheraton Addis establishes the Kerchanshe group as the sole distributor of McCormick tractors in Ethiopia.
This partnership aligns strongly with the government’s national agricultural mechanization strategy which aims to increase productivity, expand the use of modern machinery and strengthen national food security.
The entry of McCormick Tractors, known for Italian engineering and high-performance machinery has been seen as a strategic entry point for Italian manufacturing company in Ethiopia since they will gain expanded access to one of Africa’s most rapidly transforming agricultural markets.
On the other hand, the Kerchanshe group has created a dedicated Kerchanshe tractor division to oversee distribution, sales, and the critical after-sale support infrastructure required by the Ethiopian market.
Speaking during the partnership launch, Israel Degefa, Group CEO, Kerchanshe said that Ethiopia’s Agricultural sector required a modernized agricultural system for improved productivity.
He said, “Ethiopia’s agricultural modernization requires robust, reliable and technologically advanced equipment. This partnership enables the Kerchanshe group to bring proven, globally respected machinery to farmers and commercial operators nationwide.”
According to the ministry of agriculture, Ethiopia aims to increase the number of tractors in operation from approximately 20,000 to 65,000 over the coming years. The Kerchanshe-McCormick collaboration is expected to play an important role in achieving this goal.
Although Ethiopia is deemed as one of Africa’s largest farming nations, less than 25% of its arable land is currently cultivated using modern mechanical power. The introduction of McCormick tractors is expected to support several key areas of the economy including commercial farms by delivering high power solutions for large-scale production of key staples and export crops, Mechanization service centers by strengthening rental and contracting hubs that serve smallholder farmers and lastly, it will support specialized crop segments by providing equipment suited for high-value commodities such as coffee, pulses and oilseeds.
The partnership is projected to accelerate yield improvements, expand mechanized services and support Ethiopia’s long-term aspiration of becoming a net food exporter.
Images Courtesy of Kerchanshe Group