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Policies and performance of Ethiopian cereal markets:

Author

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  • Rashid, Shahidur
  • Negassa, Asfaw

Abstract

Cereal production and marketing is the single largest sub-sector within Ethiopia’s agriculture. It dominates in terms of its share in rural employment, agricultural land use, and calorie intake, as well as its contribution to national income. The sub-sector accounts for roughly 60 percent of rural employments, about 73 percent of total cultivated land, more than 40 percent of a typical household’s food expenditure, and more than 60 percent of total caloric intake of a typical household in the country.1 The contribution of cereals to national income is also large: according to available estimates, cereals’ contribution to agricultural value added is 65 percent (Diao et al. 2007), which translates to about 30 percent of GDP.2. Thus, it is no surprise that, despite differing political ideologies, all agricultural production and marketing policies since the 1960s have had a focus on the cereals sub-sector. Since 1991, strategies for both growth and poverty reduction have placed a heavy emphasis on cereal production and marketing. The Agricultural Development Led Industrialization (ADLI) strategy, the Sustainable Development and Poverty Reduction Plan (SDPRP), and the Plan for Accelerated and Sustained Development to End Poverty (PASDEP) all highlight the importance of cereals in Ethiopia’s overall economic development. The Government of Ethiopia (GoE) instituted the Participatory Demonstration and Extension Training System (PADETS), in the mid-1990s with the specific purpose of increasing cereal production through demonstration of seed-fertilizer technology. As part of these strategies, the Government of Ethiopia (GoE) has undertaken substantial market reforms, accelerated investments in road and communication networks, and initiated programs to increase cereal production through large-scale demonstrations of the benefits of modern seeds and greater fertilizer use. The structure of Ethiopian cereal markets has undergone massive changes since the 1960s due to dramatic shifts in government agricultural production and market policies, vast improvements in marketing infrastructure, and major increases in domestic production. This paper documents these experiences. It begins by giving a historical overview of policies that have directly or indirectly affected cereal production and marketing.

Suggested Citation

  • Rashid, Shahidur & Negassa, Asfaw, 2011. "Policies and performance of Ethiopian cereal markets:," ESSP working papers 21, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:esspwp:21
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    References listed on IDEAS

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    1. Diao, Xinshen & Fan, Shenggen & Yu, Bingxin & Kanyarukiga, Sam, 2007. "Agricultural growth and investment options for poverty reduction in Rwanda:," IFPRI discussion papers 689, International Food Policy Research Institute (IFPRI).
    2. Williams,Jeffrey C. & Wright,Brian D., 2005. "Storage and Commodity Markets," Cambridge Books, Cambridge University Press, number 9780521023399, July - De.
    3. Asfaw Negassa & Robert J. Myers, 2007. "Estimating Policy Effects on Spatial Market Efficiency: An Extension to the Parity Bounds Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 338-352.
    4. Barrett, Christopher B., 1997. "Food marketing liberalization and trader entry: Evidence from Madagascar," World Development, Elsevier, vol. 25(5), pages 763-777, May.
    5. Taffesse, Alemayehu Seyoum, 1997. "Government policy and dynamic supply response: a study of the compulsory grain delivery system," MPRA Paper 18674, University Library of Munich, Germany.
    6. Rashid, Shahidur & Lemma, Solomon, 2011. "Strategic grain reserves in Ethiopia: Institutional design and operational performance," IFPRI discussion papers 01054, International Food Policy Research Institute (IFPRI).
    7. Christopher B. Barrett & Jau Rong Li, 2002. "Distinguishing between Equilibrium and Integration in Spatial Price Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 292-307.
    8. Bernard, Tanguy & Spielman, David J. & Seyoum Taffesse, Alemayehu & Gabre-Madhin, Eleni Z., 2010. "Cooperatives for staple crop marketing: Evidence from Ethiopia," Research reports 164, International Food Policy Research Institute (IFPRI).
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    11. McNew, Kevin & Fackler, Paul L., 1997. "Testing Market Equilibrium: Is Cointegration Informative?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(2), pages 1-17, December.
    12. Franzel, Steven & Colburn, Forrest & Degu, Getahun, 1989. "Grain marketing regulations : Impact on peasant production in Ethiopia," Food Policy, Elsevier, vol. 14(4), pages 347-358, November.
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    1. repec:bla:agecon:v:48:y:2017:i:4:p:469-480 is not listed on IDEAS
    2. Minten, Bart J. & Legesse, Ermias & Beyene, Seneshaw & Werako, Tadesse, 2015. "Feeding Africa's cities: The case of the Supply Chain of Teff to Addis Ababa," 2015 Conference, August 9-14, 2015, Milan, Italy 212465, International Association of Agricultural Economists.
    3. Kalle Hirvonen & John Hoddinott, 2017. "Agricultural production and children's diets: evidence from rural Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(4), pages 469-480, July.
    4. repec:ags:eeaeje:259415 is not listed on IDEAS
    5. Minten, Bart & Tamru, Seneshaw & Engida, Ermias & Kuma, Tadesse, 2013. "Using evidence in unraveling food supply chains in Ethiopia: The supply chain of teff from major production areas to Addis Ababa:," ESSP working papers 54, International Food Policy Research Institute (IFPRI).
    6. Meijerink, Gerdien & Bulte, Erwin & Alemu, Dawit, 2014. "Formal institutions and social capital in value chains: The case of the Ethiopian Commodity Exchange," Food Policy, Elsevier, vol. 49(P1), pages 1-12.

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