Constraints and opportunities in cluster-based farming in Ethiopia

Background In many developing countries, smallholders play a central role in the agricultural sector, and holding significant potential for agricultural growth and rural development. In Ethiopia, agriculture contributes about 37.57% to Et GDP and supports the livelihoods of most of the population. However, recent agricultural growth has not efficiently addressed persistent challenges of food insecurity, malnutrition, and rural poverty among smallholder farmers. To improve productivity and promote commercialization, the Agricultural Transformation Agency introduced cluster-based farming approach aimed at transforming subsistence farming into market-oriented production system. Despite its potential benefits, the adoption and expansion of cluster farming remain limited due to several constraints. Therefore, this study reviews the opportunities and constraints of cluster-based farming in Ethiopia from social, economic, ecological/environmental, institutional, and political perspectives. Methods This study employed a systematic literature review methodology. Relevant studies were identified through digital libraries, web sources, Ethiopian public university repositories, ATA government website and other academic databases. A keyword-based search strategy was used to identify relevant publications mainly covering the period from 2015 to 2026. Based on relevance to study objective, a total of 23 empirical studies were selected and analyzed. Results The findings indicate that cluster-based farming in Ethiopia provides several opportunities across multiple dimensions. Social opportunities include enhanced farmer-to-farmer interaction, knowledge sharing, and collaboration. Economic opportunities involve improved productivity, economies of scale, better market access, and increased bargaining power. Ecological opportunities include improved natural resource management and the potential adoption of climate-smart agricultural practices. Institutional opportunities arise from stronger partnerships and coordination among farmers, government agencies, and development organizations, while political support through national agricultural development strategies further promotes cluster initiatives. However, several constraints also affect the implementation of cluster-based farming. These include farmers’ resistance to collective approaches, limited economies of scale among smallholders, unfavorable agro-ecological conditions, weak institutional coordination, and political instability. Conclusions Cluster-based farming has the potential to transform smallholder agriculture in Ethiopia by improving productivity, commercialization, and rural livelihoods. However, its success depends on addressing key social, economic, ecological, institutional, and political constraints. Recommendation Prioritize should be given to improving rural infrastructure to better connect cluster farms with markets. Expand agricultural research, strengthening farmer training, and securing financial support for cooperatives are also essential. In addition, promoting pro-poor agricultural strategies, extending extension services and ensuring continuous government monitoring and evaluation are necessary to enhance the effectiveness and sustainability of cluster- based farming in Ethiopia.