Employing new agricultural systems, especially seed varieties released from research centers, Ethiopian smallholder wheat farmers have increased their income margin though producing quality wheat and supplying them to macaroni and pasta factories. This was revealed when Ethio-Italian Development Cooperation celebrated the ending of the first phase of its partnership with farmers producing macaroni and pasta wheat varieties in five districts in Bale zone. Smallholder farmers said, they are gaining more by utilizing improved wheat varieties released from research centers thus enabled them to double their productivity. Apart from the distribution of seed varieties, fields visits were organized to localities in connection with the end of the first phase of the engagement. Moreover, the joint project is creating lucrative market linkages with food factories. According to project consultant, the project in its five year execution period consumed over U$ 475,000, which included setting up of 15 warehouses as well as purchase of three seed filtering equipment, a field vehicle and building of a laboratory were all part of the project. He indicated that with the addition of quality work on coffee, the second phase of the project will further maintain the already achieved successes at introducing wheat varieties. According to the Chief Administrator of Bale Zone, Ethio-Italian partnership project has boosted the zone’s production from 500 tonnes productivity range for pasta and macaroni wheat to 15,000 tonnes following the launching the project.