WHEREAS, it is key in improvements in product quality, production efficiency, agricultural production competitiveness and linkage to agro-industries is a key pillar to realize structural economic transformation;

WHEREAS, it is critical to create market linkage between agricultural producers and processors, value-adding agro-industries and larger buyers in a sustainable manner by transforming them to produce for market;

WHEREAS, the existing laws do not adequately address the particular nature of agricultural production contracts, it becomes necessary to put a system in place that guarantees a producer-contractor relationship led by a comprehensive legal framework and ensures knowledge, skill, and technology transfer as well as market linkages;

NOW, THEREFORE, in accordance with Article 55(1 & 6) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows.