Eroded Coffee Traceability and Its Impact on Export Coffee Prices for Ethiopia
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.
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- David BOANSI & Christian CRENTSIL, 2013.
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1606, Kiel Institute for the World Economy.
- 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 (CSAE), vol. 20(5), pages 704-736, November.
- Arslan, Aslıhan & Reicher, Christopher Phillip, 2010. "The Effects of the Coffee Trademarking Initiative and Starbucks Publicity on Export Prices of Ethiopian Coffee," Proceedings of the German Development Economics Conference, Hannover 2010 22, Verein für Socialpolitik, Research Committee Development Economics.
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- Arslan, Aslıhan & Reicher, Christopher Phillip, 2010. "The effects of the Coffee Trademarking Initiative and Starbucks publicity on export prices of Ethiopian coffee," Kiel Working Papers 1606, Kiel Institute for the World Economy (IfW).
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