Download or read book The Impact Of Covid 19 On Statistical Characteristics of Coffee Market Evidence From Ethiopian Coffee written by Tewodros Ayalew and published by . This book was released on 2020-11-12 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (postgraduate) from the year 2020 in the subject Business economics - Investment and Finance, grade: 96 %, World Wide Education (WORLDQUANT UNIVERSITY), course: FINANCIAL ENGINEERING CAPSTONE PROJECT, language: English, abstract: Following the recent world crisis as a result of COVID-19 pandemic, the world has suffered tremendous losses in almost all market sectors that form the global economy. In this light, the researchers have decided to carry out a market research in one of the sectors of the global economy which is the commodity market. That market has a booming characteristic specifically the Ethiopian coffee export market. Therefore, it will be the project point of focus. The capstone project focuses on analysing 30 years of data and the current year before and after the COVID-19 pandemic, as well as during the period it has existed. The research used a couple of modern day tools to gather and analyse the data which has been collected from the Ethiopian Coffee Authorities. Tools such as Python and Excel have been used to develop a model for prediction and to test the hypothesis such as the ARIMA, Simple Linear Regression as well as the Paired T-test. Correlation and Covariance analyses have been carried out to test the relationship between the Ethiopian coffee market and the global economy participants such as the US and China to evaluate the degree of relationship and to find out whether the COVID-19 Pandemic has any effects on the coffee market in Ethiopia. The research result shows that the Ethiopian coffee export market will double its revenue for the coming 10 years. The project find out COVID-19 has a significant negative relationship with the coffee market but as compared with other countries disasters, the coffee export market in Ethiopia has been slightly impacted, there was still significant growth in the market during this period due to governmental policies put in place to protect the market from crashing or suffering from very

Download or read book Trade value chains and rent distribution with foreign exchange controls Coffee exports in Ethiopia written by Seneshaw Tamru and published by Intl Food Policy Res Inst. This book was released on 2019-09-18 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Coffee Price Volatility in Ethiopia written by Firdu Gemech and published by . This book was released on 2005 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Macroeconomic Determinants of the Coffee Price Volatility in Ethiopia Application of the Garch Midas Model written by Tekle Bobo and published by GRIN Verlag. This book was released on 2020-10-20 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2020 in the subject Economics - Statistics and Methods, grade: 24, Haramaya University, language: English, abstract: Application of GARCH type model is a key for modeling and forecasting volatility for high frequency data such as daily commodity price. Following the same framework, the objective of the present study is to apply the multiplicative GARCH-MIDAS model for daily exported coffee price as proxy of daily total coffee price of Ethiopia over the period of 1-1-2008 to 7-17-2018 with the purpose of fitting and forecasting coffee price returns volatility. The GARCH-MIDAS model decomposes the conditional variance as short-term component of GARCH (1,1) process, and long-term component, with monthly frequencies of macroeconomic variables. In this study exchange rate (nominal exchange rate), inflation rate (general inflation), interest rate (lending interest rate), fuel oil price (price of imported petroleum and petroleum production), total consumption and money supply (broad money) macroeconomic variables were employed through MIDAS specification using beta-weighting scheme to analyze impact of the variables on the long-term volatility component. For fitted ARMA (1,1) of coffee price return ARCH effect test on the residual from the mean model revealed the existence of time varying conditional variance for the selected mean model. A conditional variance model GARCH (1,1) was selected and used to model the conditional variance of coffee price return with Quasi Maximum Likelihood along with Bayesian estimation methods and both estimation procedures indicated the persistence of conditional variance observed even for small sample under Bayesian estimation framework. Asymmetry test show the insignificance of the asymmetric term, while Lundbergh and Terasvirta Lagrange Multiplier and the Li-Mak portmanteau test for the residual of GARCH model show the existence of time varying unconditional variance and made call for GARCH-MIDAS model. From the result of estimated GARCH-MIDAS model exchange rate and inflation rate were found to be the best drivers of coffee price volatility in Ethiopia and used for in and out of sample forecast. Finally, the Mean Absolute Error Root Mean Square Error and Diebold Mariano test were used for evaluating and comparing the forecasting ability of GARCH-MIDAS component model against standard GARCH (1,1) model which indicated that, including exchange rate and inflation rate make efficient forecasting of coffee price volatility in Ethiopia.

Download or read book Exploring an Effective Coffee Price Volatility Management Mechanism in the Case of Ethiopia written by Jotework Gudeta Ayele and published by . This book was released on 2012 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Volatile coffee prices Covid 19 and market fundamentals written by Hernandez, Manuel A. and published by Intl Food Policy Res Inst. This book was released on 2020-06-02 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past three months, coffee prices have experienced multiple spikes and high volatility. This is in contrast to world market prices of major staple foods, which have remained relatively stable. While experts initially attributed the instability of coffee prices to supply-side uncertainty and market tightening, the covid-19 pandemic seems to have aggravated coffee’s price fluctuations. The novel coronavirus represents an unprecedented joint supply and demand shock to the global coffee sector, constituting an enormous challenge to coffee growers, farm workers, and downstream value chain actors. These various supply and demand impacts will be felt at different points in time further contributing to global market uncertainties and the ongoing price volatility. The pandemic may also have major implications for poverty and food insecurity for the world’s 25 million coffee producers, most of whom are smallholders in low- and middle income countries that are unprepared to respond to a public health crisis of this proportion.

Download or read book The Coffee Production and Marketing in Ethiopia An Analysis of Challenges and Opportunities written by Abrham Gebreselassie and published by . This book was released on 2021-06-04 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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

Download or read book Structure and performance of Ethiopia s coffee export sector written by Minten, Bart and published by Intl Food Policy Res Inst. This book was released on 2014-06-20 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the structure and performance of the coffee export sector in Ethiopia, Africa’s 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. Ethiopia’s 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.

Download or read book Investing in wet mills and washed coffee in Ethiopia Benefits and constraints written by Tamru, Seneshaw and published by Intl Food Policy Res Inst. This book was released on 2018-08-09 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Cash crops and food security written by Kuma, Tadesse and published by Intl Food Policy Res Inst. This book was released on 2016-09-27 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the key questions in food policy debates in the last decades has been the role of cash cropping for achieving food security in low income countries. We revisit this question in the context of smallholder coffee production in Ethiopia. Using unique data collected by the authors on about 1,600 coffee farmers in the country, we find that coffee income improves food security, even after controlling for total income and other factors and after addressing the endogeneity of coffee income. Further analysis suggests that the pathway for achieving this improved food security is linked to being better able to smooth consumption across agricultural seasons. In contrast with food crops, coffee sales take place almost throughout the whole year, providing farmers with cash income also during the lean season.

Download or read book The Production Marketing and Economic Impact of Coffee in Ethiopia written by Teketel Haile-Mariam and published by . This book was released on 1973 with total page 502 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Marketing mix and strategy for Ethiopia s coffee marketing written by Dereje Tesfa and published by GRIN Verlag. This book was released on 2019-08-28 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Challenges of Ethiopian Commodity Exchange in a Coffee Market written by Tekabe Sinatyehu and published by LAP Lambert Academic Publishing. This book was released on 2014-06-26 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt: To plan a suitable organizational growth as well as for great contribution for the economy, ECX need to identify the basic problems.Hence, the purpose of this study is to examine the basic challenges of ECX on coffee: with the reference of yirgachiffe, sidama, harari and jimma coffee.The findings result from this study reveal that shortfall of agricultural product, physical infrastructure, macroeconomic instability, price fluctuation, lack of adequate warehouses that accommodate ECX participants request, . Higher penalty cost imposed on the participants for not withdrawing their commodity from the warehouses, poor quality of warehouse service insufficient time to store and transfer the commodity, inefficient and inadequate in store credit; discouraging the membership requirement of ECX, expensive membership seat fee and exposed for corruption were found to be amongst the fore front challenges to the success of ECX

Download or read book The Economics of Smallholder Coffee Farming Risk and Its Influence on Household Use of Forests in Southwest Ethiopia written by Degnet Abebaw Ejigie and published by Cuvillier Verlag. This book was released on 2005 with total page 171 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Terms of Trade for Coffee and Economic Performance of Ethiopia written by Alasebu Yainshet and published by . This book was released on 1984 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Effect of Primary Commodity Price Cycles on Producers written by and published by . This book was released on 2009 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Institutions and Market Integration written by Manuel A. Hernandez and published by . This book was released on 2015 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: While the Ethiopian Commodity Exchange (ECX) is widely credited to be a successful on several accounts, there has been little rigorous empirical investigation. This paper attempts to fill that gap by analyzing how ECX has influenced the international-domestic price relationships of coffee -- the largest traded commodity on its floor. We examine three aspects of price dynamics -- market interdependence, volatility transmission, and structural breaks -- using a spatially disaggregated prices of five coffee varieties. The results indicate that contrary to popular media stories, ECX's success in improving coffee price relationships has been limited. The results appear to be robust under all three sets of analysis.