The Transmission of International Commodity Prices to Domestic Producers

Marcel Fafchamps (), Ruth Vargas Hill () and Aliziki Kaudha
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Aliziki Kaudha: Uganda Bureau of Statistics, Entebbe, Uganda

Development and Comp Systems from EconWPA

Abstract: Using detailed data from three simultaneous surveys of producers, traders, and exporters, this paper examines the transmission of international coffee prices through the domestic value chain in Uganda. We find that fluctuations in the international coffee price are reflected in prices paid by exporters and large traders. However, prices paid at the market level need not reflect prices actually received by farmers. This apparent lack of price transmission may be due to seasonal changes and to the fact that producers are more likely to sell at the farm-gate when prices go up. We also find some evidence that the number of itinerant coffee buyers increases when prices rise.

JEL-codes: O P (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: Written 2004-09-23
Note: Type of Document - pdf; pages: 28
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