Development Study

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Browsing Development Study by Author "Wondifraw Desalegn"

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    An Investigation of the Challenges and Prospects of Public Participation in Local Development Kirkos Sub City in Addis Ababa City Administration: The Cases of Woreda 4, 5, and 9 of Kirkos Sub City
    (Addis Ababa University, 2023-06) Wondifraw Desalegn; Filmon Hadaro (PhD)
    In the case of the three chosen woredas in Kirkos sub-city, Addis Ababa city administration, the study looked at the practices and possibilities of community engagement The volatility of commodity prices in the supply chain has a significant impact on edible oil producers in international trade. The price of edible oil is influenced by various factors, including supply and demand, weather conditions, geopolitical tensions, and currency fluctuations. These factors can cause sudden and unpredictable changes in commodity prices, which can affect the profitability of edible oil producers. According to a report by the Food and Agriculture Organization (FAO), the global price of vegetable oils increased by 20% in 2020 due to supply disruptions caused by the COVID-19 pandemic. The report also highlights that the volatility of commodity prices can lead to food insecurity and poverty in developing countries that rely on imported food. One example of how commodity price volatility affects edible oil producers is seen in the case of palm oil. Palm oil is one of the most widely used cooking oils globally, with Indonesia and Malaysia being the largest producers. In recent years, palm oil prices have been volatile due to factors such as weather conditions, changes in government policies, and fluctuations in currency exchange rates. In 2019, for instance, palm oil prices fell sharply due to oversupply caused by increased production from Indonesia and Malaysia. This led to a decline in profits for palm oil producers who were forced to sell their products at lower prices than they had anticipated. According to a report by Reuters, some Indonesian palm oil companies had to delay or cancel expansion plans due to low prices. Another example is seen in the case of soybean oil. Soybean is one of the most important crops globally and is used as a source of protein for animal feed as well as for cooking oil production. The price of soybean oil is influenced by various factors such as weather conditions, trade policies, and demand from China. In 2018, for instance, soybean prices fell sharply due to trade tensions between China and the United States. China is one of the largest importers of soybeans, and the imposition of tariffs by the US on Chinese goods led to a decline in demand for soybeans. This, in turn, led to a decline in soybean prices, which affected the profitability of soybean oil producers. To mitigate the impact of commodity price volatility on edible oil producers, various strategies can be adopted. One such strategy is to diversify the sources of raw materials used in production. By sourcing raw materials from different regions, edible oil producers can reduce their exposure to supply disruptions caused by weather conditions or geopolitical tensions. Another strategy is to hedge against commodity price fluctuations by using financial instruments such as futures contracts or options. These instruments allow producers to lock in prices for their products and reduce their exposure to price volatility. In conclusion, the volatility of commodity prices in the supply chain has a significant impact on edible oil producers in international trade. The examples cited above demonstrate how sudden changes in commodity prices can affect the profitability of these producers. To mitigate this impact, various strategies can be adopted, including diversifying sources of raw materials and hedging against price fluctuations using financial instruments. Keywords: Community participation, Sub city, city Administration, projects.