Summary The paper describes the preparation and major features of the National Food and Nutrition Strategy for Ethiopia; and discusses current policy issues, including the impact of the liberalisation announced in March 1990. The country produces only 70 per cent of food requirements and has at least 9m food insecure people. The NFNS addresses these problems with a conservation‐based strategy to increase production and marketed surplus in high potential as well as food deficit areas. Population growth, environmental pressure and the risks of input‐intensive growth packages are the main issues of concern. The abolition of producer grain quotas may also be inflationary if urban price subsidies are to be maintained.