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Credit Analysis

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CHAPRET ONE
  1. Introduction
      2.1 Back Ground
Some 800 million people of the world consume too title food for a healthy and active life (Twenty and Donald, 1997) Moreover, at least quarter a billion people periodically face food shortage as food accessibility is interrupted by unstable weather, price fluctuations, employment, and by pestilence such as drought disease, and war.
Deepening food crises in several developing countries specially those in sub-Saharan Africa (SSA), has increasingly became the concern of many researchers, planners donors and international development agencies, who have given high priority to the study of food system and the problem of food in security (Gezahegn, 1995) Per capital food production in SSA including Ethiopia has been declining over the last three decades. Despite the available resources and the efforts made by the governments in SSA, food insecurity remained to be one of the crucial issues of concern. The gap b/n food production and consumption in SSA contrives has been caused by the lower rates of growth in agricultural production Ethiopia is one the most food insecure countries in the world, the large number of its population, about 50% is living at subsistence levels (MOFED, 1992)), and depending on the food grains production, which is highly Venerable to droughts. The production volume of food grain crops as well as the per capital food production has shown tremendous fluctuation throughout the 1980s & 1990s, thus resulting in severe food shortage in the country (Gezahagn, 1995). Domestic food supply has failed to meet the basic food intake of 2100k cal per person per day (equivalent to 225 kg/head of creeds per annual), annual deficit increased from 0,75 million tons tons to 1970/80 to over 5 million tons in 1993/94, which is more than its fold increase is just 14 years. This condition in Ethiopia leads to shift between chronic and acute food insecurity expressed by bread and deep crisis which often is the...

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