Structure, Conduct and Performance of Grain Trading in Tigray and its Impact on Demand for Commodity Exchange: The Case Maychew, Mokone, Alemata, Mekelle and Himora

83 Pages Posted: 11 Sep 2010 Last revised: 14 Sep 2016

Date Written: September 10, 2010

Abstract

Grain markets of Alemata, Maychew, Mokone, Mekelle and Himora are observed to operate in highly inefficient market structure, with very low level of trust at meso and macro level. As result the marking system is less developed and less efficient in terms of creating space and time utility. In which lack of finance is the most critical problem. Under such reality warehouse receipt system with receipts that can be used as collateral for loan are critical first stage needed to get the market right. If ECX’s exchange service has to be introduced it has to be low cost and low value added service, if not it may not find significant demand among grain traders.

Keywords: Ethiopian commodity exchange, social capital, networks, market development, warehouse receipt system

Suggested Citation

Mezgebo, Taddese and Dereje, Fekadu, Structure, Conduct and Performance of Grain Trading in Tigray and its Impact on Demand for Commodity Exchange: The Case Maychew, Mokone, Alemata, Mekelle and Himora (September 10, 2010). Available at SSRN: https://ssrn.com/abstract=1674833 or http://dx.doi.org/10.2139/ssrn.1674833

Taddese Mezgebo (Contact Author)

Mekelle University ( email )

Mekelle, 451
Ethiopia
251911480483 (Phone)
251344407610 (Fax)

Fekadu Dereje

University of Oslo ( email )

PO Box 6706 St Olavs plass
Oslo, N-0317
Norway

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