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The Transmission of International Commodity Prices to Domestic Producers

Author

Listed:
  • Marcel Fafchamps

    (Centre for the Study of African Economies)

  • Ruth Hill

    (Department of Economics, University of Oxford)

  • Aliziki Kaudha

    (Uganda Bureau of Statistics, Entebbe, Uganda)

Abstract

Using detailed data from three simultaneous surveys of producers, traders, and exporters, this paper examines the transmission of international coffee prices through the domestic value chain in Uganda. We find that fluctuations in the international coffee price are reflected in prices paid by exporters and large traders. However, prices paid at the market level need not reflect prices actually received by farmers. This apparent lack of price transmission may be due to seasonal changes and to the fact that producers are more likely to sell at the farm-gate when prices go up. We also find some evidence that the number of itinerant coffee buyers increases when prices rise.

Suggested Citation

  • Marcel Fafchamps & Ruth Hill & Aliziki Kaudha, 2004. "The Transmission of International Commodity Prices to Domestic Producers," Development and Comp Systems 0409038, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:0409038
    Note: Type of Document - pdf; pages: 28
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0409/0409038.pdf
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    Citations

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    Cited by:

    1. Bussolo, Maurizio & Godart, Olivier & Lay, Jann & Thiele, Rainer, 2006. "The impact of commodity price changes on rural households : the case of coffee in Uganda," Policy Research Working Paper Series 4088, The World Bank.
    2. World Bank, 2004. "The Socialist Republic of Vietnam : Coffee Sector Report," World Bank Publications - Reports 14405, The World Bank Group.
    3. Spencer Dorsey, 2020. "The opportunity cost of intrastate violence and the out-of-sample validity of commodity price shocks," The Journal of Defense Modeling and Simulation, , vol. 17(3), pages 309-324, July.
    4. Baffes, John, 2006. "Restructuring Uganda's coffee industry : why going back to the basics matters," Policy Research Working Paper Series 4020, The World Bank.
    5. Maurizio Bussolo & Olivier Godart & Jann Lay & Rainer Thiele, 2007. "The impact of coffee price changes on rural households in Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 293-303, September.
    6. Boysen, Ole & Matthews, Alan, 2012. "The differentiated effects of food price spikes on poverty in Uganda," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122445, European Association of Agricultural Economists.
    7. Christian K.M. Kingombe, 2012. "The Linkage between Outcome Differences in Cotton Production and Rural Roads Improvements - A Matching Approach," IHEID Working Papers 12-2012, Economics Section, The Graduate Institute of International Studies.
    8. Macchiavello, Rocco & Miquel-Florensa, Josepa, 2019. "Buyer-Driven Upgrading in GVCs: The Sustainable Quality Program in Colombia," CEPR Discussion Papers 13935, C.E.P.R. Discussion Papers.
    9. Ole Boysen, 2009. "Border Price Shocks, Spatial Price Variation, and their Impacts on Poverty in Uganda," The Institute for International Integration Studies Discussion Paper Series iiisdp306, IIIS.

    More about this item

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P - Political Economy and Comparative Economic Systems

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