Abstract: Fertilizer use in Ethiopia has almost quintupled since the official elimination of input subsidy programs. Yet, application rates remain far below the recommended level and, given the limited scope for area expansion, fertilizer promotion continues to be the cen-tral focus for enhancing agricultural productivity. Unlike many other developing coun-tries, Ethiopia has moved from partial liberalization in the 1990s to government mo-nopoly control over imports, with exclusive marketing through farmers’ organizations, since 2008. In 2010, the government embarked on a new policy initiative, Growth and Transformation Program, which sets annual production targets for cereals by region. In Ethiopia, less than 40% of farmers use fertilizer and those who do, apply rates signifi-cantly below those recommended. This low fertilizer use is primarily due to prices being two to three times higher than prices on the world markets. Reducing the price of ferti-lizer requires a sound understanding of the product´s supply chain. This review focuses on fertilizer distribution chains, Fertilizer consumption and governmental policies on the fertilizer market system in Ethiopia.