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Ethiopia has been structurally in food deficit since at least 1980. The contribution of agriculture to food security has declined as the growth in food production has failed to keep pace with population growth. The level of chronic food insecurity also increases as the distinction between transitory and chronic food insecurity has become increasingly blurred (Devereux, 2000). Ethiopia is the world’s most food aid dependent country. Official statistics indicate that the country received 795 thousand metric tonnes of food aid annually between 1990 and 1999, which was about 10% of total domestic grain production. Food aid shipments increased to 997 thousand metric tonnes (equivalent to 11.5% of national production) between 2002 and 2032.