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Author: Seneshaw Tamru
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 27
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Book Description
Exchange rate policies can have important implications on incentives for export agriculture. However, their effects are often not well understood. We study the issue of foreign exchange controls and pricing in the value chain for Ethiopia’s coffee - its most important export crop. Relying on unique pricing and cost data, we find that coffee exporters are willing to incur losses during exporting by offering high prices for coffee locally in order to access scarce foreign exchange. The losses in export markets are then more than recovered in importing, indicating rents - import parity prices are significantly lower than the prices charged for imported goods, so that profits on imports are much higher than the losses incurred in exporting. We further show that the high coffee wholesale prices are transmitted to farmers, so that they benefit from the rents downstream. These results suggest that a better exchange rate alignment to reduce the overvaluation of the local currency in this case would have a lower impact on export crop producer prices than typically is anticipated.
Author: Seneshaw Tamru
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 27
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Book Description
Exchange rate policies can have important implications on incentives for export agriculture. However, their effects are often not well understood. We study the issue of foreign exchange controls and pricing in the value chain for Ethiopia’s coffee - its most important export crop. Relying on unique pricing and cost data, we find that coffee exporters are willing to incur losses during exporting by offering high prices for coffee locally in order to access scarce foreign exchange. The losses in export markets are then more than recovered in importing, indicating rents - import parity prices are significantly lower than the prices charged for imported goods, so that profits on imports are much higher than the losses incurred in exporting. We further show that the high coffee wholesale prices are transmitted to farmers, so that they benefit from the rents downstream. These results suggest that a better exchange rate alignment to reduce the overvaluation of the local currency in this case would have a lower impact on export crop producer prices than typically is anticipated.
Author: Minten, Bart
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 33
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Book Description
We study the structure and performance of the coffee export sector in Ethiopia, Africas most important coffee producer, over the period 2003 to 2013. We find an evolving policy environment leading to structural changes in the export sector, including an elimination of vertical integration for most exporters. Ethiopias coffee export earn-ings improved dramatically over this period, i.e. a four-fold real increase. This has mostly been due to increases in international market prices. Quality improved only slightly over time, but the quantity exported increased by 50 percent, seemingly explained by increased domestic supplies as well as reduced local consumption. To further improve export performance, investments to increase the quantities produced and to improve quality are needed, including an increase in washing, certification, and traceability, as these characteristics are shown to be associ-ated with significant quality premiums in international markets.
Author: Dereje Tesfa
Publisher:
ISBN: 9783346007537
Category :
Languages : en
Pages : 28
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Book Description
Seminar paper from the year 2019 in the subject Business economics - Trade and Distribution, grade: A, language: English, abstract: Ethiopia is the single largest African producer of coffee with about half of its production going for export. It plays a central role in Ethiopia's economy and as the country's leading export is an important source of foreign exchange. The coffee bean export business reserved for Ethiopia citizens. Out of the total number of coffee exporting companies, 93 percent are private companies, 5% are coffee growing farmers' cooperatives, and 2 % are governmental enterprise. The extent to which cooperatives and private, including previous Ethiopian Grain Trade Enterprise (EGTE) now named Ethiopia Trading Business Corporation (የኢትዮጵያ የንግድ ሥራዎች ኮርፖሬሽን) and state farms, play a role in coffee exports from Ethiopia. Currently coffee generates less than 35 percent of the total export earnings. For the last several years its relative predominance in the export sector is decreasing because of increased contribution of other agricultural products like horticulture and floriculture. Consequently, only a little over 26% percent of the total export earnings is contributed by coffee during the year of 2011 (FDRE, 2011). This is the lowest share earned from export of coffee in the history of economy.
Author: Stephen K. Craven
Publisher:
ISBN:
Category : Ethiopia
Languages : en
Pages : 8
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Book Description
Author: Tamru, Seneshaw
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 25
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Book Description
Local value-addition in developing countries is often aimed at the upgrading of agricultural value chains, since it is assumed that doing so will make farmers better off. However, transmission of the added value through the value chain and constraints to adoption of value-adding activities by farmers are not well understood. We look at this issue in the case of coffee in Ethiopia – the country’s most important export product – and value-addition in the coffee value-chain through ‘washing’ coffee, which is done in wet mills. Washed coffee is sold internationally with a significant premium compared to ‘natural’ coffee, and we find that this premium is largely transmitted to producers. However, while wet mills have become more widespread, the share of washed coffee in Ethiopia’s coffee exports is not increasing over time and, even if coffee farmers have access to a wet mill, they often do not sell all their coffee cherries to them. Relying on a unique primary large-scale dataset and a combination of qualitative and quantitative methods, we examine the reasons for this puzzle. The reasons seemingly are twofold. First, labor productivity in producing red cherries, which wet mills require, is lower than for natural coffee, reducing incentives for adoption, especially for those farmers with higher opportunity costs of labor. Second, only impatient, often smaller, farmers sell red cherries, as more patient farmers use the storable dried coffee cherries as a rewarding savings instrument, given the negative real deposit rates in formal savings institutions.
Author: Abrham Gebreselassie
Publisher: GRIN Verlag
ISBN: 3346447790
Category : Technology & Engineering
Languages : en
Pages : 73
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Book Description
Master's Thesis from the year 2014 in the subject Agrarian Studies, grade: 5 (Excellent), Szent István University (Institute of Regional Economics and Rural Development), course: Rural Development and Agribusiness, language: English, abstract: The general objective of this paper is to analyze the trends of coffee sector in Ethiopia in general. Furthermore it wants to generate baseline information on production and marketing systems of the selected study area in particular by concentrating on parameters like production, marketing, institutional and organizational support and challenges and opportunities. Currently, Ethiopia contributes 3.6 percent of the total value and 3 percent of the total quantity of coffee traded to the global market, which leads the country to be the 10th largest exporter of coffee in the world and the first exporter in Africa. 40% of the total coffee production of Ethiopia is exported, which earns 33% of the overall value of agricultural goods exported and 24% of the whole export value of the country. Over one-third of the population living in the rural areas and over 15 million populations sustain their livelihoods and participated in coffee production. There are around one million coffee growers in the country. Coffee has been an important commodity which has got greater attention by the government of Ethiopia. It is the first cash crop that the Ethiopia Commodity Exchange (ECX) started trading operations in April 2008 in order to advance coffee markets in the country. High costs and high risks of transaction were the features of agricultural markets in Ethiopia before 2008, with only one third of the production reaching the market. Besides, smallholder farmers have little information about the market which limits them to sell their final products at the nearby market, deal with good prices as well as minimizing their market risk. Coffee market incompetence chiefly affect the income of coffee farmers and discourage them in the process of coffee production and marketing which lead to a significantly decreases in the country’s foreign exchange. This suggests that it is very critical to study and monitor systematically the production and marketing systems in all coffee growing areas of the country for the sake of planning and designing suitable research and development interventions that are applicable to the specific systems.
Author: Dorosh, Paul A., ed.
Publisher: Intl Food Policy Res Inst
ISBN: 0896296911
Category : Political Science
Languages : en
Pages : 520
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Book Description
Ethiopia has experienced impressive agricultural growth and poverty reduction, stemming in part from substantial public investments in agriculture. Yet, the agriculture sector now faces increasing land and water constraints along with other challenges to growth. Ethiopia’s Agrifood System: Past Trends, Present Challenges, and Future Scenarios presents a forward-looking analysis of Ethiopia’s agrifood system in the context of a rapidly changing economy. Growth in the agriculture sector remains essential to continued poverty reduction in Ethiopia and will depend on sustained investment in the agrifood system, especially private sector investment. Many of the policies for a successful agricultural and rural development strategy for Ethiopia are relevant for other African countries, as well. Ethiopia’s Agrifood System should be a valuable resource for policymakers, development specialists, and others concerned with economic development in Africa south of the Sahara.
Author: Asmerom Kidane
Publisher:
ISBN:
Category : Ethiopia
Languages : en
Pages : 56
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Book Description
Author: Teketel Haile-Mariam
Publisher:
ISBN:
Category : Coffee
Languages : en
Pages : 502
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Book Description
Author: World Bank
Publisher: World Bank Publications
ISBN: 1464814953
Category : Business & Economics
Languages : en
Pages : 511
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Book Description
Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.
