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The Effects of the Coffee Trademarking Initiative and Starbucks Publicity on Export Prices of Ethiopian Coffee

Author

Listed:
  • Aslihan Arslan
  • Christopher P. Reicher

Abstract

The Ethiopian government initiated the Ethiopian Coffee Trademarking and Licensing Initiative in 2004 for three coffee origins: Sidama, Yirgacheffe and Harar. Following a court case between Starbucks and the Ethiopian government regarding the trademarking of Sidamo, Ethiopian government engaged in a public relations campaign to raise awareness for the Initiative, which was widely publicised in the international media especially after Oxfam organised a public campaign. This paper evaluates the effect of these interventions on the export prices of trademarked Ethiopian coffees. We find that the prices of the trademarked coffees increased by about 10 per cent relative to the non-trademarked coffees following these interventions. The magnitude of this change is comparable with the farm gate prices reported in the literature; however, we cannot establish direct causation or observe the passthrough into farm gate prices. Copyright 2011 , Oxford University Press.

Suggested Citation

  • Aslihan Arslan & Christopher P. Reicher, 2011. "The Effects of the Coffee Trademarking Initiative and Starbucks Publicity on Export Prices of Ethiopian Coffee," Journal of African Economies, Centre for the Study of African Economies, vol. 20(5), pages 704-736, November.
    • Handle: RePEc:oup:jafrec:v:20:y:2011:i:5:p:704-736
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    File URL: http://hdl.handle.net/10.1093/jae/ejr023
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    Cited by:

    1. Fekadu Gelaw & Stijn Speelman & Guido Huylenbroeck, 2017. "Impacts of Institutional Intervention on Price Transmissions: The Case of the Ethiopian Commodity Exchange," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 88-106, November.
    2. Oleg Groshev, 2014. "Time varying vine copulas for multivariate returns (in Russian)," Quantile, Quantile, issue 12, pages 53-67, February.
    3. Minten, Bart & Tamru, Seneshaw & Kuma, Tadesse & Nyarko, Yaw, 2014. "Structure and Performance of Ethiopia’s Coffee Export Sector," 2014: Food, Resources and Conflict, December 7-9, 2014. San Diego, California 197157, International Agricultural Trade Research Consortium.
    4. Minten, Bart & Tamru, Seneshaw & Kuma, Tadesse & Nyarko, Yaw, 2014. "Structure and performance of Ethiopia’s coffee export sector," ESSP working papers 66, International Food Policy Research Institute (IFPRI).
    5. Leonard Leung, 2014. "Eroded Coffee Traceability and Its Impact on Export Coffee Prices for Ethiopia," Development Discussion Papers 2014-04, JDI Executive Programs.

    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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