Structural transformation in Ethiopia: Evidence from cereal markets

Type Report
Title Structural transformation in Ethiopia: Evidence from cereal markets
Author(s)
Publication (Day/Month/Year) 2012
URL http://essp.ifpri.info/files/2012/05/ESSP2_WP39_StructuralTransformationCerealMarkets.pdf
Abstract
We study cereal wholesale markets in Ethiopia in the last decade (2001–2011), a period that
has been characterized by important local changes affecting agricultural markets, including
strong economic growth, urbanization, improved road and communication infrastructure, an
increase in importance of cooperatives and commercial farms, and a doubling in commercial
surplus. We find that these changes are associated with significant declines in real price
differences between supplying and receiving markets, in cereal milling margins, as well as in
retail margins. Important improvements have thus happened in the last decade in Ethiopia’s
food marketing system, traditionally identified as a major cause of food security problems in
the country

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