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Strategic grain reserves in Ethiopia: Institutional design and operational performance

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  • Rashid, Shahidur
  • Lemma, Solomon

Abstract

Holding strategic grain reserves to address food price hikes has received renewed attentions in recent years. This paper examines such a program in Ethiopia that has been successful in addressing several emergencies since the 1990s. The analysis suggests that the key ingredients behind the success are a unique institutional design, coordination during emergencies with food-based safety net programs, and keeping the grain stocks to a minimum. Institutional design is unique because, unlike similar agencies in other countries, Ethiopia's Emergency Food Security Reserve Administration (EFSRA) is independent of price stabilization and hence is not engaged in buying and selling of grain. The paper also demonstrates that scaling up school feeding programs will generate additional food demand and an effective outlet for stock rotation; and that increasing the stock level for price stabilization will adversely affect both grain markets and the performance of the EFSRA.

Suggested Citation

  • 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).
  • Handle: RePEc:fpr:ifprid:01054
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    References listed on IDEAS

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    3. Tewodaj Mogues, 2011. "The Bang for the Birr: Public Expenditures and Rural Welfare in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 47(5), pages 735-752.
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    6. Rashid, Shahidur & Taffesse, Alemayehu Seyoum, 2009. "Grain Markets and Large Social Transfers - An Analysis of Productive Safety Net Program in Ethiopia," 2009 Conference, August 16-22, 2009, Beijing, China 51764, International Association of Agricultural Economists.
    7. Ahmed, Akhter U. & Rashid, Shahidur & Sharma, Manohar & Zohir, Sajjad, 2004. "Food aid distribution in Bangladesh," FCND briefs 173, International Food Policy Research Institute (IFPRI).
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    11. Paul Dorosh, 2009. "Price stabilization, international trade and national cereal stocks: world price shocks and policy response in South Asia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 1(2), pages 137-149, June.
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    Citations

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    Cited by:

    1. Kelbore, Zerihun Getachew, 2013. "Transmission of World Food Prices to Domestic Market: The Ethiopian Case," MPRA Paper 49712, University Library of Munich, Germany.
    2. Kornher, Lukas & Kalkuhl, Matthias, 0. "Food Price Volatility in Developing Countries and its Determinants," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 52.
    3. Breisinger, Clemens & Ecker, Olivier & Funes, Jose & Yu, Bingxin, 2010. "Food as the basis for development and security: A strategy for Yemen," IFPRI discussion papers 1036, International Food Policy Research Institute (IFPRI).
    4. Rashid, Shahidur & Negassa, Asfaw, 2012. "Policies and performance of Ethiopian cereal markets," IFPRI book chapters,in: Food and agriculture in Ethiopia: Progress and policy challenges, chapter 5 International Food Policy Research Institute (IFPRI).
    5. Christophe Gouel, 2014. "Food Price Volatility and Domestic Stabilization Policies in Developing Countries," NBER Chapters,in: The Economics of Food Price Volatility, pages 261-306 National Bureau of Economic Research, Inc.
    6. Díaz-Bonilla, Eugenio, 2014. "On food security stocks, peace clauses, and permanent solutions after Bali:," IFPRI discussion papers 1388, International Food Policy Research Institute (IFPRI).
    7. Clarke, Daniel J. & Hill, Ruth Vargas, 2013. "Cost-benefit analysis of the african risk capacity facility:," IFPRI discussion papers 1292, International Food Policy Research Institute (IFPRI).
    8. Díaz-Bonilla, Eugenio, 2016. "Volatile volatility: Conceptual and measurement issues related to price trends and volatility:," IFPRI discussion papers 1505, International Food Policy Research Institute (IFPRI).
    9. World Bank, 2012. "Using Public Food Grain Stocks to Enhance Food Security," World Bank Other Operational Studies 11878, The World Bank.

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    Keywords

    strategic grain reserves; agricultural price policies; safety net programs;

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