The brokerage institution and the development of agricultural markets: New evidence from Ethiopia

Recognition that policies aimed at ‘getting prices right’ in less-developed countries have not been successful due to incomplete markets has spurred a new wave of reforms aimed instead at ‘getting markets and institutions right’. Previous studies of this policy shift have documented the potentially...

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Main Authors: Quattri, Maria, Ozanne, Adam, Beyene, Seneshaw Tamru
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2012
Subjects:
Online Access:https://hdl.handle.net/10568/153843
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author Quattri, Maria
Ozanne, Adam
Beyene, Seneshaw Tamru
author_browse Beyene, Seneshaw Tamru
Ozanne, Adam
Quattri, Maria
author_facet Quattri, Maria
Ozanne, Adam
Beyene, Seneshaw Tamru
author_sort Quattri, Maria
collection Repository of Agricultural Research Outputs (CGSpace)
description Recognition that policies aimed at ‘getting prices right’ in less-developed countries have not been successful due to incomplete markets has spurred a new wave of reforms aimed instead at ‘getting markets and institutions right’. Previous studies of this policy shift have documented the potentially crucial role played by the brokerage institution in crop commercialization. However, few have investigated the factors that influence wholesalers’ decisions regarding their use of brokers. Results from a primary survey with traders show that brokerage services are particularly valuable for wholesalers who lack social capital and storage capacity, who are based in areas with low population density, and who trade at a distance, especially when roads are not asphalt. Buyers in drought-prone domains rely on brokers more for their long-distance purchases, while sellers in moisture-reliable domains employ brokers more for their long-distance sales. These results provide useful indications regarding where and how the recent formalization of brokerage functions through the Ethiopian Commodity Exchange (ECX) could be most beneficial for the functioning of Ethiopian agricultural markets.
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spelling CGSpace1538432025-11-06T06:35:24Z The brokerage institution and the development of agricultural markets: New evidence from Ethiopia Quattri, Maria Ozanne, Adam Beyene, Seneshaw Tamru markets agriculture crops commercialization commodity markets Recognition that policies aimed at ‘getting prices right’ in less-developed countries have not been successful due to incomplete markets has spurred a new wave of reforms aimed instead at ‘getting markets and institutions right’. Previous studies of this policy shift have documented the potentially crucial role played by the brokerage institution in crop commercialization. However, few have investigated the factors that influence wholesalers’ decisions regarding their use of brokers. Results from a primary survey with traders show that brokerage services are particularly valuable for wholesalers who lack social capital and storage capacity, who are based in areas with low population density, and who trade at a distance, especially when roads are not asphalt. Buyers in drought-prone domains rely on brokers more for their long-distance purchases, while sellers in moisture-reliable domains employ brokers more for their long-distance sales. These results provide useful indications regarding where and how the recent formalization of brokerage functions through the Ethiopian Commodity Exchange (ECX) could be most beneficial for the functioning of Ethiopian agricultural markets. 2012 2024-10-01T13:57:57Z 2024-10-01T13:57:57Z Working Paper https://hdl.handle.net/10568/153843 en Open Access application/pdf International Food Policy Research Institute Ethiopian Development Research Institute Quattri, Maria; Ozanne, Adam; Beyene, Seneshaw Tamru 2012. The brokerage institution and the development of agricultural markets: New evidence from Ethiopia. https://hdl.handle.net/10568/153843
spellingShingle markets
agriculture
crops
commercialization
commodity markets
Quattri, Maria
Ozanne, Adam
Beyene, Seneshaw Tamru
The brokerage institution and the development of agricultural markets: New evidence from Ethiopia
title The brokerage institution and the development of agricultural markets: New evidence from Ethiopia
title_full The brokerage institution and the development of agricultural markets: New evidence from Ethiopia
title_fullStr The brokerage institution and the development of agricultural markets: New evidence from Ethiopia
title_full_unstemmed The brokerage institution and the development of agricultural markets: New evidence from Ethiopia
title_short The brokerage institution and the development of agricultural markets: New evidence from Ethiopia
title_sort brokerage institution and the development of agricultural markets new evidence from ethiopia
topic markets
agriculture
crops
commercialization
commodity markets
url https://hdl.handle.net/10568/153843
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