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The Impact Of Covid-19 On Statistical Characteristics of Coffee Market. Evidence From Ethiopian Coffee

Author : Tewodros Ayalew
Publisher : GRIN Verlag
Page : 65 pages
File Size : 45,28 MB
Release : 2020-12-10
Category : Business & Economics
ISBN : 3346312275

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Research Paper (postgraduate) from the year 2020 in the subject Business economics - Investment and Finance, grade: 96 %, World Wide Education (WORLDQUANT UNIVERSITY), course: FINANCIAL ENGINEERING CAPSTONE PROJECT, language: English, abstract: Following the recent world crisis as a result of COVID-19 pandemic, the world has suffered tremendous losses in almost all market sectors that form the global economy. In this light, the researchers have decided to carry out a market research in one of the sectors of the global economy which is the commodity market. That market has a booming characteristic specifically the Ethiopian coffee export market. Therefore, it will be the project point of focus. The capstone project focuses on analysing 30 years of data and the current year before and after the COVID-19 pandemic, as well as during the period it has existed. The research used a couple of modern day tools to gather and analyse the data which has been collected from the Ethiopian Coffee Authorities. Tools such as Python and Excel have been used to develop a model for prediction and to test the hypothesis such as the ARIMA, Simple Linear Regression as well as the Paired T-test. Correlation and Covariance analyses have been carried out to test the relationship between the Ethiopian coffee market and the global economy participants such as the US and China to evaluate the degree of relationship and to find out whether the COVID-19 Pandemic has any effects on the coffee market in Ethiopia. The research result shows that the Ethiopian coffee export market will double its revenue for the coming 10 years. The project find out COVID-19 has a significant negative relationship with the coffee market but as compared with other countries disasters, the coffee export market in Ethiopia has been slightly impacted, there was still significant growth in the market during this period due to governmental policies put in place to protect the market from crashing or suffering from very heavy losses over time. It can be considered as a role model for other world countries in combating the pandemic to protect the market.

Cash crops and food security

Author : Kuma, Tadesse
Publisher : Intl Food Policy Res Inst
Page : 22 pages
File Size : 11,84 MB
Release : 2016-09-27
Category : Political Science
ISBN :

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One of the key questions in food policy debates in the last decades has been the role of cash cropping for achieving food security in low income countries. We revisit this question in the context of smallholder coffee production in Ethiopia. Using unique data collected by the authors on about 1,600 coffee farmers in the country, we find that coffee income improves food security, even after controlling for total income and other factors and after addressing the endogeneity of coffee income. Further analysis suggests that the pathway for achieving this improved food security is linked to being better able to smooth consumption across agricultural seasons. In contrast with food crops, coffee sales take place almost throughout the whole year, providing farmers with cash income also during the lean season.

Volatile coffee prices: Covid-19 and market fundamentals

Author : Hernandez, Manuel A.
Publisher : Intl Food Policy Res Inst
Page : 12 pages
File Size : 39,44 MB
Release : 2020-06-02
Category : Political Science
ISBN :

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Over the past three months, coffee prices have experienced multiple spikes and high volatility. This is in contrast to world market prices of major staple foods, which have remained relatively stable. While experts initially attributed the instability of coffee prices to supply-side uncertainty and market tightening, the covid-19 pandemic seems to have aggravated coffee’s price fluctuations. The novel coronavirus represents an unprecedented joint supply and demand shock to the global coffee sector, constituting an enormous challenge to coffee growers, farm workers, and downstream value chain actors. These various supply and demand impacts will be felt at different points in time further contributing to global market uncertainties and the ongoing price volatility. The pandemic may also have major implications for poverty and food insecurity for the world’s 25 million coffee producers, most of whom are smallholders in low- and middle income countries that are unprepared to respond to a public health crisis of this proportion.

Economic impacts of COVID-19 pandemic in Ethiopia: A review of phone survey evidence

Author : Hirvonen, Kalle
Publisher : Intl Food Policy Res Inst
Page : 15 pages
File Size : 12,99 MB
Release : 2020-08-24
Category : Political Science
ISBN :

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As in most low and middle-income countries, the paucity of timely economic data in Ethiopia makes it difficult to understand the economic impacts of the COVID-19 pandemic. To mitigate this, several organizations have launched phone surveys to gather more information about the crisis. This research report reviews the available phone survey evidence as of mid-August 2020 and identifies knowledge gaps. First, the available evidence suggest that the pandemic has not led to unusually large increases in food prices. However, a case study in the vegetable sector suggests that price dynamics are highly context and crop specific, calling for more comprehensive price monitoring to identify food value chains and areas where food price increases may have been unusually rapid. Second, employment losses have concentrated on informal sector workers while redundancies in the formal sector have been less significant. Third, there is considerable uncertainty about the income, poverty, and food security implications of this crisis. While most households report income losses, the qualitative and subjective nature of these questions meanthat the magnitudes of these losses are unknown. In Addis Ababa, less subjective food security measures indicate only small negative changes in household food and nutrition security. Finally, due to limited access to mobile phones in rural areas, we have imperfect and incomplete information on how this crisis is affecting rural households.

Is the International Coffee Market Coming Home to Ethiopia?

Author : James Richard Francis Jeffrey
Publisher :
Page : 84 pages
File Size : 18,15 MB
Release : 2012
Category :
ISBN :

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This MA Report explains the impact coffee cooperatives are having on the Ethiopian coffee industry. It analyses how the current multi-billion dollar global coffee industry began in what remains one of the world's poorest countries, where arabica coffee was discovered sometime before the sixth century. It explains the emergence of coffee cooperatives historically, as well as their present role offering an alternative to the country's previous reliance on the assistance of Western nongovernmental organizations with their possible negative impact, including arguments they enforced a dependency on Ethiopia that impeded the country's development. In discussing coffee buyers and coffee consumption, the report focuses on America, although the same points made apply to the vast majority of Western countries. The report investigates whether cooperatives offer a business model sufficient to achieve self-sustainability for Ethiopian coffee farmers, and discusses how the interaction between and among cooperatives, unions, the Ethiopian government, and specialty coffee buyers in America is enabling Ethiopian coffee to increase its leverage on the international coffee market, generating essential income for the struggling Ethiopian economy. The report focuses on the following areas: the connection between poverty and linkage to markets; how coffee travels from smallholding farmers in Ethiopia to be sold in American cities like Austin, Texas; the emergence of certification systems like Fair Trade to protect farmers and ensure they receive a fair price for their produce, as well as the chain of commerce that Fair Trade is part of; the quality and characteristics of Ethiopian coffee; and whether cooperatives and unions can remain true to the original goals of serving their farmer members--not turning into purely profit-orientated businesses. While this report focuses on Ethiopia, it dissects and debates economic trends that usually affect developing nations producing coffee. It explores the logistics and ethics of prices paid in the West for coffee from developing countries like Ethiopia. The report ultimately aims to enlighten readers so they're able to make an ethical purchase of a good quality coffee, while aware of the myriad factors and trends affecting the international coffee market.

Traceability, Value, and Trust in the Coffee Market

Author : Ludovic Mbakop
Publisher :
Page : 0 pages
File Size : 49,1 MB
Release : 2023
Category :
ISBN :

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This study measures the impact of traceability attributes on international buyers' willingness to pay for coffee produced in Ethiopia and the impact of accurate information on the production location of the coffee on the pricing according to its type and grade. Two sets of regressions models were used to investigate the important determinant factors affecting the export prices of trader and producer coffee, one each for trader and producer coffee, to measure the impact of the ECX on the prices and to evaluate the effect of the coffee types and grades on the prices. The results show that after coffee was forced to be traded via the ECX, traceable coffee export prices increased more than the reported price of non-traceable coffee. We also found that after the introduction of the ECX, the reported export prices of coffee were much more closely aligned to the movements in the international prices of coffee than before the ECX. Furthermore, we also find evidence that exporters and overseas buyers do not trust the results of the inspection and grading of coffee by the ECX unless traceability is also present. This is the first study to evaluate foreign buyers' willingness to pay for the attribute of traceability of Ethiopian coffee and to see how traceability has affected buyers' trust in the grades given by the ECX for the coffee it graded.

The Coffee Guide

Author : United Nations Publications
Publisher :
Page : 328 pages
File Size : 41,48 MB
Release : 2021-12-09
Category : Coffee
ISBN : 9789211036831

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The Coffee Guide is the world's most extensive, hands-on, and neutral source of information on the international coffee trade.

The Human Capital Index 2020 Update

Author : World Bank
Publisher : World Bank Publications
Page : 301 pages
File Size : 42,61 MB
Release : 2021-05-05
Category : Political Science
ISBN : 1464816476

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Human capital—the knowledge, skills, and health that people accumulate over their lives—is a central driver of sustainable growth, poverty reduction, and successful societies. More human capital is associated with higher earnings for people, higher income for countries, and stronger cohesion in societies. Much of the hard-won human capital gains in many economies over the past decade is at risk of being eroded by the COVID-19 (coronavirus) pandemic. Urgent action is needed to protect these advances, particularly among the poor and vulnerable. Designing the needed interventions, targeting them to achieve the highest effectiveness, and navigating difficult trade-offs make investing in better measurement of human capital now more important than ever. The Human Capital Index (HCI)—launched in 2018 as part of the Human Capital Project—is an international metric that benchmarks the key components of human capital across economies. The HCI is a global effort to accelerate progress toward a world where all children can achieve their full potential. Measuring the human capital that children born today can expect to attain by their 18th birthdays, the HCI highlights how current health and education outcomes shape the productivity of the next generation of workers and underscores the importance of government and societal investments in human capital. The Human Capital Index 2020 Update: Human Capital in the Time of COVID-19 presents the first update of the HCI, using health and education data available as of March 2020. It documents new evidence on trends, examples of successes, and analytical work on the utilization of human capital. The new data—collected before the global onset of COVID-19—can act as a baseline to track its effects on health and education outcomes. The report highlights how better measurement is essential for policy makers to design effective interventions and target support. In the immediate term, investments in better measurement and data use will guide pandemic containment strategies and support for those who are most affected. In the medium term, better curation and use of administrative, survey, and identification data can guide policy choices in an environment of limited fiscal space and competing priorities. In the longer term, the hope is that economies will be able to do more than simply recover lost ground. Ambitious, evidence-driven policy measures in health, education, and social protection can pave the way for today’s children to surpass the human capital achievements and quality of life of the generations that preceded them.