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Coffee Value Chains on the Move: Evidence from Ethiopia
International coffee markets are changing quickly due to market liberalization, increasingly stringent quality and safety standards, and the development of specialty coffee markets.  Coffee production takes place primarily in developing countries, and such changes could have significant impacts on smallholder coffee producers. In Africa south of the Sahara, Ethiopia represents the largest coffee market actor, and the country’s coffee sector has seen improved productivity and increased prices in recent years. However, according to a recent study[1] from IFPRI, the Ethiopian Development Research Institute (EDRI), and Bonn University, a wide range of challenges have slowed this transformation for smallholder farmers, who make up 95 percent of coffee producers in the country.
Offering Rainfall Insurance to Informal Insurance Groups: Evidence from a Field Experiment in Ethiopia

We show theoretically that the presence of basis risk in index insurance makes it a complement to informal risk sharing, implying that index insurance crowds-in risk sharing and leading to a prediction that demand will be higher among groups of individuals that can share risk. We report results from rural Ethiopia from a first attempt to market weather insurance products to existing informal risk-sharing groups. The groups were offered training on risk management and the possible benefits of holding insurance.

Index Insurance for Managing Climate-related Agricultural Risk: Toward a Strategic Research Agenda

In October 2011,the CGIAR program on Climate Change, Agriculture and Food Security (CCAFS) and the Index Insurance Innovation Initiative (I4) organized a jointworkshop hosted by the International Food Policy Research Institute (IFPRI). The workshop was designed to identify and address issues surrounding index‐based insurance for smallholder farmers and the rural poor in the developing world. Emphasis was placed on identifying key areas of research and learning for the academic and policy community to pursue.

Adoption of Weather-Index Insurance: Learning from Willingness to Pay Among a Panel of Households in Rural Ethiopia

In this paper we examine which farmers would be early entrants into weather index insurance markets in Ethiopia, were such markets to develop on a large scale. We do this by examining the determinants of willingness to pay for weather insurance among 1,400 Ethiopian households that have been tracked for 15 years as part of the Ethiopia Rural Household Survey. This provides both historical and current information with which to assess the determinants of demand. We find that educated, rich, and proactive individuals were more likely to purchase insurance.

An Experiment on the Impact of Weather Shocks and Insurance on Risky Investment

We conduct a framed field experiment in rural Ethiopia to test the seminal hypothesis that insurance provision induces farmers to take greater, yet profitable, risks. Farmers participated in a game protocol in which they were asked to make a simple decision: whether to purchase fertilizer, and if so, how many bags. The return to fertilizer was dependent on a stochastic weather draw made in each round of the game protocol. In later rounds of the game protocol, a random selection of farmers made this decision in the presence of a stylized weather-index insurance contract.

Flexible Insurance for Heterogeneous Farmers: Results from a Small Scale Pilot in Ethiopia

We analyze the effectiveness of a new approach in providing weather index-based insurance products to low-income populations. The approach is based on the concept of providing multiple weather securities that pay a fixed amount if the event written on the security (that monthly rainfall at a nearby weather station falls below a stated cutoff) comes true. A theoretical model is developed to outline the conditions in which weather securities could outperform crop-specific weather index-based insurance policies.

Quantifying Value Chain Analysis in the Context of Livestock Systems in Developing Countries

This paper attempts to inject more rigorous quantitative methods into value chain analysis. Approaches examined include System Dyanimcs (SD) that model flows and relationships between actors with which one can examine the impact of alternative scenarios over time. Agent-Based Models (ABM) model individual farmers, institutions, and social groupings. In SD models, actors are assumed to be the same whereas in ABM models a set of heterogenous characteristics may be defined for each agent.

Integrating Very Poor Producers into Value Chains

The Integrating Very Poor Producers into Value Chains Field Guide (Field Guide) is intended to provide the field-level practitioner with tools and applications to impact very poor households. The intended outcome of the Field Guide is to increase market engagement for very poor households, especially women, through enterprise development activities.

Evaluating Value Chain Interventions: A Review of Recent Evidence

This ILRI discussion paper reviews 20 value chain interventions and discusses the econometric techniques used to address the validity of findings. It explores the use of propensity score matching, instrumental variables, difference in difference, regression discontinuity, and randomized controlled trials. Qualitative and participatory methods are also examined with the idea that they may be able to better capture the complexity of value chain processes.

The wheat supply chain in Ethiopia: Patterns, trends, and policy options

Wheat is one of the four most important food grains in Ethiopia. As a source of calories in the diet, wheat is second to maize.  In terms of the area of production, wheat is fourth, after teff, maize, and sorghum.  In terms of the value of production, it is 4th or 5th, after teff, enset, and maize, and approximately tied with sorghum. 

Wheat production has expanded rapidly in the past decade.  According to the CSA, wheat production has grown at 7.5% per year since 1995-96 and at 9.3% over the past decade.

Identifying Priority Value-chains in Ethiopia

A major challenge when designing a National Agricultural Investment Plan (NAIP) is deciding how to prioritize between different opportunities, e.g., which value-chains should be promoted over others?

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