Ethiopian Commodity Exchange

Executive summary Agricultural commercialise in Ethiopian has been broad plagued by superior transaction costs and non integrated food marketplace culture. Small scale farmers came to the market with little information. Ethiopian trade good exchange, the newly established organization, is providing a market place where buyer and sellers can come together to trade and be informed of quality, delivery and payment. Currently, ECX has 496 members - 346 are suppliers and 150 sellers from the coffee industry. ECX started operation of concern coffee in November 2008. The main objective of this research is to gain awareness about this infant organization and market system, its place for coffee export marketing system and at boastfully its contribution for the development of the countrys economy. CHAPTER 1: BACKGROUND OF THE BUSINESS 1.

1 Introduction In the Ethiopian context, Agricultural markets are characterized by prohibitively high transaction costs, evidenced by the lack of sufficient market coordination between buyers and sellers, the lack of market information, the lack of trust among market actors, the lack of contract enforcement, and the lack of grades and standards, implies that buyers and sellers operate within abridge market channels, that is, only those channels for which they can obtain information and in which they have a few trusted occupation partners. Extensive empirical analyses of Ethiopian market behavior olibanum reveals that market actors conduct business across short distances, with few partners, in few markets, and with limited storage, The persistence of these market constraints in Ethiopia points to the fact that market crystalizes alone, defined as the removal of polity distortions, are necessary but not sufficient to upraise market performance. This suggests that the new development agenda, not only in Ethiopia but throughout post-reform Africa, is to move beyond market reform to market development. In addition to policy incentives, key interventions are required... If you want to get a full essay, order it on our website: Ordercustompaper.com

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