Investigating the Effects of Arjo‐Dhidhessa Sugar Factory on Land Use and Land Cover Dynamics: A Case of Arjo‐Dhidhessa Sugar Estate, East Wallaga, Oromia, Western, Ethiopia

Sugarcane plantations in sugar factories and farms have the potential to significantly influence local ecosystems and communities, leading to deforestation, degradation of soil quality, and reduced availability of water resources. This study aimed to determine the effect of the Arjo‐Dhidhessa sugar factory on land use and land cover change in the east Wallaga zone of the Oromia regional state. This study employed geospatial technology to investigate spatial and temporal changes in land use and land cover in the study area. Satellite images from 1983, 1996, 2009, and 2022 were used to evaluate changes in land use and land cover in the area. The study area underwent significant transformations in land use and land cover, including a 0.6% decrease in the total forested area, a 25.9% reduction in shrubland, and a 22.3% decrease in grassland coverage. Although agricultural land showed a significant increase of 21.34%, irrigated land increased by 14.8%, and built‐up areas expanded by 12.2%. The average annual growth rates for agricultural land, irrigated land, and built‐up areas were 217.4, 289.5, and 165.4 ha/year, respectively. The emergence of sugar factories and sugarcane farming was initiated at the expense of forestland, grassland, and shrubland. These changes have raised concerns about the potential ecological consequences and long‐term sustainability of the environment. The observed trends underscore the urgent need to address the environmental challenges faced by Arjo‐Dhidhessa Sugar Factory, which requires a collective and coordinated response from all relevant stakeholders to mitigate the negative impacts of decreasing natural habitats. These findings emphasize the importance of implementing sustainable land management practices that balance developmental initiatives with environmental conservation.