Kerchanshe, McCormick launch tractor partnership to push Ethiopia’s farm growth
The agreement gives Ethiopia access to Italian-built tractors as the country works to grow food production.
ETHIOPIA – Ethiopia’s agriculture sector entered a new phase today as the Kerchanshe Group and Italian tractor maker McCormick Tractors launched an exclusive distribution deal in Addis Ababa.
The two companies held the event at the Sheraton Addis and confirmed that Kerchanshe will serve as the only distributor of McCormick tractors in the country.
“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,” said Israel Degefa, the Group CEO at Kerchanshe.
The agreement supports the National Agricultural Mechanization Strategy. The strategy aims to grow productivity, raise the use of modern tools, and strengthen the country’s food security efforts.
McCormick Tractors, part of Argo Tractors, brings a long history of Italian engineering and durable farm machinery. The company now gains wider entry into one of Africa’s fastest changing farm markets. Kerchanshe has set up a dedicated Kerchanshe Tractor division to handle distribution, sales, and after-sales services.
Officials say Ethiopia wants to increase the number of tractors in use from about 20,000 units to 65,000 units. This partnership is expected to help the country close that gap and improve output on farms of all sizes.
Meeting rising demand for mechanization
Although Ethiopia remains one of Africa’s largest farming nations, less than a quarter of its arable land uses modern machines. The arrival of McCormick tractors will support commercial farms that need strong engines for crops grown for local and export markets. It will also strengthen service centers that rent machines to small farmers.
The equipment will serve special crop value chains as well, including coffee, pulses, and oilseeds. Many of these crops support rural incomes and bring in foreign earnings. Leaders in the sector believe this partnership will push farm yields upward and help Ethiopia get closer to its long-term goal of becoming a net exporter of food.
The launch comes at a time when interest in modern farm inputs continues to rise. Investors from Europe and Asia have shown fresh demand for land preparation equipment.
These investors plan to expand their operations by purchasing large tractors and planters. Many plan to invest several million Ethiopian birr, which ranges from ETB 10 million (approx US$173,000) to ETB 150 million (approx US$2.6 million) depending on the size of their projects.
Farm groups say these investments will support rural jobs and improve the country’s ability to meet food needs. As Ethiopia looks to modern tools and stronger private partnerships, players in the sector expect more announcements in the months ahead.
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