The objective of this report is to review available evidence on the potential to promote access to food for vulnerable groups in Ethiopia through two main methods: food transfer programs, and appropriate policies influencing the food marketing system. These issues are examined with a view to identifying priority issues for analysis under the MEDAC/MSU/USAID Food Security Project in Ethiopia. In particular, the report presents trends in food aid and food production in Ethiopia, and provides preliminary evidence of the possible disincentive effects of food aid on agricultural production incentives and investments in the food marketing system; discusses the costs and benefits of various food aid transfer programs, and highlights major unresolved issues requiring further analysis to guide Ethiopian policy makers' decisions on strategies to promote household food security; presents a set of "guiding principles" to minimize the trade-offs between meeting vulnerable groups' immediate food needs and promoting agricultural productivity growth over the long run; and identifies important unresolved issues for further analysis, in order to guide Ethiopian policy makers' decisions on ensuring household access to food through an appropriate mix of market and transfer mechanisms.