Structural Transformation of Cereal Markets in Ethiopia

Abstract

We study cereal markets in Ethiopia over the last decade, a period that has been characterised by important local changes, including strong economic growth, urbanisation, improved road and communication infrastructure, and higher adoption of modern inputs in agriculture. These changes are associated with better spatial price integration as well as with significant declines in real price differences between supplying and receiving markets and in cereal milling and retail margins. In short, important improvements have occurred in Ethiopia's cereal marketing system. This is especially important because dysfunctional cereal markets were previously identified as an important cause of food insecurity in the country.

Transforming Staple Food Value Chains in Africa: The Case of Teff in Ethiopia

“…More fertiliser use is especially prevalent in areas closer to Addis Ababa and most intensification of agriculture -as measured through the increasing use of chemical fertilisers -is happening in these well connected areas, as has been documented in other settings (Reardon et al, 2014;Wiggins, 2000). 8 The increasing use of fertiliser seems driven by the better availability of fertilisers, incentives (through the higher relative prices of teff over time [Minten, Tamru, & Stifel, 2014]), as well as the better knowledge of its use through efforts of extension agents. We also see strong uptake of herbicides, for those farmers living close by Addis, increasing from 50 per cent to 100 per cent of the farmers.…”

Social Desirability, Opportunism and Actual Support for Farmers’ Market Organisations in Ethiopia

“…This, however, does not provide a full explanation, as dedicated members of the FMO can be expected to do everything to sell through the FMO. Similarly, agile FMOs are expected to be able to arrange financial constraints and to develop contracts with buyers in the wholesale market, in particular in Ethiopia where the economy is growing rapidly and urban food markets are developing fast (Collier & Dercon, 2014;Minten, Stifel, & Tamru, 2014;Tadesse & Shively, 2013). We observe that there is hardly any development of these more entrepreneurial activities.…”

Price Transmission Asymmetry in Spatial Grain Markets in Ethiopia

“…The measures while dismantling the monopoly of the marketing parastatal, have promoted the role of private sector in agriculture marketing activities (Getnet, 2008). In order to circumvent the infrastructure bottlenecks and facilitate interregional trade flows, a significant amount of public resources were also used to upgrade and construct new inter-regional roads (Minten et al, 2012). With the objective of diffusing improved technology (particularly focusing on fertilizers and improved seeds), the government also designed and implemented a massive nation-wide extension programme (Minten et al, 2012).…”

“…Growth of the cereal sub-sector in Ethiopia is expected to come from expansion in the area cultivated and through an increase in yield (Minten et al, 2012). Since farmers are currently operating on their land frontier, the option of pushing the land frontier is very limited and as a result, increasing yield remains the most viable option (Wondemu, 2011;Diao and Pratt, 2007).…”