Trade Value Chains And Rent Distribution With Foreign Exchange Controls Coffee Exports In Ethiopia

Download or read book Trade, value chains, and rent distribution with foreign exchange controls: Coffee exports in Ethiopia written by Seneshaw Tamru and published by Intl Food Policy Res Inst. This book was released on 2019-09-18 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Exchange rate policies can have important implications on incentives for export agriculture. However, their effects are often not well understood. We study the issue of foreign exchange controls and pricing in the value chain for Ethiopia’s coffee - its most important export crop. Relying on unique pricing and cost data, we find that coffee exporters are willing to incur losses during exporting by offering high prices for coffee locally in order to access scarce foreign exchange. The losses in export markets are then more than recovered in importing, indicating rents - import parity prices are significantly lower than the prices charged for imported goods, so that profits on imports are much higher than the losses incurred in exporting. We further show that the high coffee wholesale prices are transmitted to farmers, so that they benefit from the rents downstream. These results suggest that a better exchange rate alignment to reduce the overvaluation of the local currency in this case would have a lower impact on export crop producer prices than typically is anticipated.

Download or read book Ethiopia's agrifood system: Past trends, present challenges, and future scenarios written by Dorosh, Paul A., ed. and published by Intl Food Policy Res Inst. This book was released on 2020-09-14 with total page 520 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ethiopia has experienced impressive agricultural growth and poverty reduction, stemming in part from substantial public investments in agriculture. Yet, the agriculture sector now faces increasing land and water constraints along with other challenges to growth. Ethiopia’s Agrifood System: Past Trends, Present Challenges, and Future Scenarios presents a forward-looking analysis of Ethiopia’s agrifood system in the context of a rapidly changing economy. Growth in the agriculture sector remains essential to continued poverty reduction in Ethiopia and will depend on sustained investment in the agrifood system, especially private sector investment. Many of the policies for a successful agricultural and rural development strategy for Ethiopia are relevant for other African countries, as well. Ethiopia’s Agrifood System should be a valuable resource for policymakers, development specialists, and others concerned with economic development in Africa south of the Sahara.

Download or read book How have foreign exchange market distortions and conflict affected agricultural production incentives in Myanmar? written by Myanmar Agrifood Program for Strategy and Analysis (MAPSA) and published by Intl Food Policy Res Inst. This book was released on 2024-10-22 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fluctuations in agricultural prices pose significant challenges for fragile and conflict-affected economies due to their critical role in ensuring food security. This study examines changes in agricultural prices at the export, wholesale, and farm level in the case of Myanmar, which experienced a surge in conflicts from 2021 onward, following a military coup. The major findings are as follows: • Regarding macroeconomic impacts, the military government implemented a dual exchange rate system, maintaining a fixed exchange rate significantly below the market rate and effectively imposing an across-the-board export tax on all export commodities of approximately 24 percent between August 2022 and August 2024. This policy particularly affects rice, Myanmar’s main staple and a key export crop. • The scarcity of foreign exchange due to this dual exchange rate system increased the costs of imported inputs. It is estimated that prices of inorganic fertilizers – farmers’ most important commercial input – saw an increase of 10 percent compared to the price in Thailand since the start of the dual exchange rate system. • Regarding domestic trade effects, regions with the highest insecurity exhibited similar agricultural output prices but higher input costs, resulting in reduced farm profitability compared to more secure regions. However, the magnitude of these effects is relatively small, with estimated increases in input prices due to insecurity ranging from one to six percent. Insecure areas also show more often a lack of input availability. • Farmers who reside in insecure areas reported between one and six percentage points higher lack of access to agricultural inputs – fertilizer, agrochemicals, mechanization, and seed - in their communities. The relatively small effects of insecurity on input and output markets suggest a degree of resilience in the private sector’s ability to maintain trade under conflict conditions. • The biggest effect on input markets is seen in the case of agricultural labor. Depending on the measure used, farmers in the most insecure areas had a 7 to 15 percentage points higher likelihood of reporting lack of access to agricultural laborers compared to the most secure areas. • The exchange rate policies are found to have been much more harmful for farmers’ incentives than the domestic trade effects, even for the most conflict-affected areas, indicating the importance of considering macroeconomic effects for agricultural incentives in Myanmar. • Despite the significant disincentives brought about by conflict, the agricultural sector has shown surprising resilience over the recent conflict period, seemingly linked to advantageous international price developments for farmers: international rice prices increased by 27 percent while urea prices decreased by 52 percent between August 2022 and May 2024. • While these international evolutions have partly mitigated the impact of the conflict on farmers’ profitability, the impacts of these price developments on consumers in Myanmar have, however, been severe. An analysis of rice retail prices in Myanmar over the last two and half years show that they have more than tripled and that the overall costs of the common diet more than doubled. A failure of nominal income to keep pace with this food price inflation led to an increase in poverty by 10 percent from the end of 2022 to the end of 2023.

Download or read book Millions Fed written by David J. Spielman and published by Intl Food Policy Res Inst. This book was released on 2009 with total page 179 pages. Available in PDF, EPUB and Kindle. Book excerpt: Humanity has made enormous progress in the past 50 years toward eliminating hunger and malnutrition. Some five billion people--more than 80 percent of the world's population--have enough food to live healthy, productive lives. Agricultural development has contributed significantly to these gains, while also fostering economic growth and poverty reduction in some of the world's poorest countries.

Download or read book World Development Report 2020 written by World Bank and published by World Bank Publications. This book was released on 2019-11-19 with total page 545 pages. Available in PDF, EPUB and Kindle. Book excerpt: Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.

Download or read book Coffee value chain analysis written by Mwesigye, F., Nguyen, H. and published by Food & Agriculture Org.. This book was released on 2020-11-19 with total page 106 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study aims to analyze the coffee value chain in Uganda and identify opportunities and constraints for enhancing youth employment. Coffee is one of the key agricultural commodities in the Government of Uganda’s pursuance of sustainable growth and job creation, especially for the rapidly expanding youth population. The study outlines a significant number of job opportunities for young people along this value chain, not only in production but increasingly in processing, trade and marketing, as well as service provision. It also suggests strategic upgrading options and outlines concrete policy actions to maximize youth participation in and benefits from the coffee sub-sector.

Download or read book The Coffee Guide written by United Nations Publications and published by . This book was released on 2021-12-09 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Coffee Guide is the world's most extensive, hands-on, and neutral source of information on the international coffee trade.