Droughts, cereal prices, and price stabilization options in Ethiopia

Increases in cereal prices can have adverse effects on poor net food buyers. This is a particular problem in Ethiopia because of frequent natural calamities – especially droughts – that lead to significant price hikes. Conversely, falling domestic prices of some cereals (especially maize), typically...

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Main Authors: Dorosh, Paul A., Smart, Jenny, Minten, Bart, Stifel, David
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2018
Subjects:
Online Access:https://hdl.handle.net/10568/146815
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author Dorosh, Paul A.
Smart, Jenny
Minten, Bart
Stifel, David
author_browse Dorosh, Paul A.
Minten, Bart
Smart, Jenny
Stifel, David
author_facet Dorosh, Paul A.
Smart, Jenny
Minten, Bart
Stifel, David
author_sort Dorosh, Paul A.
collection Repository of Agricultural Research Outputs (CGSpace)
description Increases in cereal prices can have adverse effects on poor net food buyers. This is a particular problem in Ethiopia because of frequent natural calamities – especially droughts – that lead to significant price hikes. Conversely, falling domestic prices of some cereals (especially maize), typically at harvest time, can be detrimental to producers who are net sellers. Price stabilization efforts are therefore an important consideration for Ethiopian policy makers. This paper sheds light on options for cereal price stabilization in Ethiopia drawing on experiences of other developing countries. The international experience in food price stabilization shows that while some countries have achieved success, the efforts of many others have actually destabilized market prices at great fiscal cost. We assess the extent to which price stabilization efforts in Ethiopia were effective during the major El Niño induced drought of 2015/16 and find that opportunities were missed to enhance food security and consumer welfare through permitting private sector imports in order to curtail the rise in cereal prices and to reduce fiscal costs for the government and donors.
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spelling CGSpace1468152025-11-06T05:41:21Z Droughts, cereal prices, and price stabilization options in Ethiopia Dorosh, Paul A. Smart, Jenny Minten, Bart Stifel, David weather hazards cereals drought food security prices Increases in cereal prices can have adverse effects on poor net food buyers. This is a particular problem in Ethiopia because of frequent natural calamities – especially droughts – that lead to significant price hikes. Conversely, falling domestic prices of some cereals (especially maize), typically at harvest time, can be detrimental to producers who are net sellers. Price stabilization efforts are therefore an important consideration for Ethiopian policy makers. This paper sheds light on options for cereal price stabilization in Ethiopia drawing on experiences of other developing countries. The international experience in food price stabilization shows that while some countries have achieved success, the efforts of many others have actually destabilized market prices at great fiscal cost. We assess the extent to which price stabilization efforts in Ethiopia were effective during the major El Niño induced drought of 2015/16 and find that opportunities were missed to enhance food security and consumer welfare through permitting private sector imports in order to curtail the rise in cereal prices and to reduce fiscal costs for the government and donors. 2018-11-15 2024-06-21T09:08:52Z 2024-06-21T09:08:52Z Working Paper https://hdl.handle.net/10568/146815 en Open Access application/pdf International Food Policy Research Institute Ethiopian Development Research Institute Dorosh, Paul A.; Smart, Jenny; Minten, Bart; and Stifel, David. 2018. Droughts, cereal prices, and price stabilization options in Ethiopia. ESSP Working Paper 126. Washington, DC and Addis Ababa, Ethiopia: International Food Policy Research Institute (IFPRI) and Ethiopian Development Research Institute (EDRI). https://hdl.handle.net/10568/146815
spellingShingle weather hazards
cereals
drought
food security
prices
Dorosh, Paul A.
Smart, Jenny
Minten, Bart
Stifel, David
Droughts, cereal prices, and price stabilization options in Ethiopia
title Droughts, cereal prices, and price stabilization options in Ethiopia
title_full Droughts, cereal prices, and price stabilization options in Ethiopia
title_fullStr Droughts, cereal prices, and price stabilization options in Ethiopia
title_full_unstemmed Droughts, cereal prices, and price stabilization options in Ethiopia
title_short Droughts, cereal prices, and price stabilization options in Ethiopia
title_sort droughts cereal prices and price stabilization options in ethiopia
topic weather hazards
cereals
drought
food security
prices
url https://hdl.handle.net/10568/146815
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AT stifeldavid droughtscerealpricesandpricestabilizationoptionsinethiopia