PRICE INTEGRATION IN THE ETHIOPIAN COFFEE MARKET

Abstract

The main purpose of this thesis is to show the price integration between the producers and the traders in the coffee market of Ethiopia. It looked the price difference and relationship of the main coffee producing areas as well as the final export price. As coffee is the country’s major foreign exchange product, the study gave the possible indications about the dynamics in the price difference in the coffee market. It took primary data from major coffee producing cooperatives as well as secondary data from different organizations. There are different factors that will determine the price of coffee, which price of buyers / retailers will play the major role. Since the country is still at the early stage of setting up market institutions, it is adversely affecting the welfare of producers and consumers.