Measuring and Assessing Distortions in Coffee Commodity System: The Case of Jimma, Ethiopia
| dc.contributor.advisor | Demeke, Mulat (Dr) | |
| dc.contributor.author | Yadeta, Taye | |
| dc.date.accessioned | 2021-09-07T05:55:33Z | |
| dc.date.accessioned | 2023-11-04T10:30:59Z | |
| dc.date.available | 2021-09-07T05:55:33Z | |
| dc.date.available | 2023-11-04T10:30:59Z | |
| dc.date.issued | 1997-06 | |
| dc.description.abstract | The main objective of this study is to measure and assess distortions in coffee commodity system. To meet this end, both cross-sectional and time series data were collected and analyzed. Both dynamic and static analysis indicated that there have been some distortions in coffee commodity system which inhibit coffee producers from maximizing profit from coffee production. The time series analysis revealed that although there is a tendency for farmgate prices to move toward its border prices, the speed of adjustment is very low. High share of coffee in agricultural GDP contributed to this slow adjustment rate by inviting extensive government intervention into the sector. on the other hand overvaluation of the exchange rate and high share of coffee in total export adversely affected the short run transmission of the border price to farmgate price and long run rate of price protection respectively. PAM as a method of quantifying distortions and their effects on private and social profitability uncovered that coffee producers were making a meagre profit in 1988189 while exporters were receiving high profit. These situations were reversed in 1995196 owing to the policy reform. Coffee farmers have responded to the increased price (coffee) by planting more coffee, more use of hired labour etc. on the other hand devaluation and removal of subsidies caused the price of imported inputs to increase to unaffordable level. As the result farmers stopped spraying against CBD which might be the cause for insignificant coffee yield difference between the periods before and after there form . land, labour, extension services. and education were investigated to be the important determinants of coffee production in our study area. As to the allocation of these inputs are concerned the farmers of the study area have allocated their land efficiently while labor was not. Shortage of labor and risk aversion behavior of the farmers may result in sub-optimal use this input. Lastly based on the empirical result of the study , we recommend that the government should make a necessary effort to reduce direct tax from coffee, diversify export, reduce cost of fungicides, improve labor market and give premium for good quality coffee. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/27817 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Assessing Distortions | en_US |
| dc.subject | Coffee Commodity System | en_US |
| dc.title | Measuring and Assessing Distortions in Coffee Commodity System: The Case of Jimma, Ethiopia | en_US |
| dc.type | Thesis | en_US |