Eroded Coffee Traceability and Its Impact on Export Coffee Prices for Ethiopia

Leonard Leung
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Leonard Leung: Department of Economics, Queen’s University, Canada

No 2014-04, Development Discussion Papers from JDI Executive Programs

Abstract: In December 2008, the Ethiopian Commodity Exchange (ECX) opened a new coffee platform that has transformed Ethiopia’s coffee trade. The way ECX handles coffee in a commodity fashion has eroded traceability, a characteristic sought after by overseas coffee buyers. This paper traces the forces that give rise to the commoditization of coffee. An empirical analysis using a dataset on export coffee transactions supports the view that eroded traceability suppresses the export price of non-traceable, ECX-sourced coffee, relative to fully traceable coffee. The cumulative monetary is estimated to be 280 million USD, equivalent to 26% of farmer’ farm gate income from coffee.

Keywords: Ethiopian Commodity Exchange; Ethiopian coffee; coffee traceability; commoditization (search for similar items in EconPapers)
JEL-codes: C12 D80 Q17 Q28 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2014-02
New Economics Papers: this item is included in nep-afr and nep-agr
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:qed:dpaper:249

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