The Impact of Commodity Price Changes on Rural Households : The Case of Coffee in Uganda

Policies and external shocks affecting agriculture, the main source of income for rural households, can be expected to have a significant impact on poverty. The authors study the case of Uganda. Throughout the 1990s, more than 90 percent of its poor lived in rural areas and, during the same period,...

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Main Authors:	Bussolo, Maurizio, Godart, Olivier, Lay, Jann, Thiele, Rainer
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2012
Subjects:	AGRICULTURAL ACTIVITIES AGRICULTURAL GROWTH AGRICULTURAL INCOMES AGRICULTURAL INPUTS AGRICULTURAL POLICY AGRICULTURAL PRODUCTION ALTERNATIVE CROPS CAPITA CONSUMPTION CAPITA INCOMES CHANGES IN POVERTY CLIMATIC ZONES COFFEE COFFEE CROP COFFEE FARMERS COFFEE GROWERS COFFEE MARKET COFFEE MARKETS COFFEE PRICE COFFEE PRICES COFFEE PRODUCERS COFFEE PRODUCTION COFFEE SECTOR COFFEE YIELDS COMMODITY COMMODITY PRICE CONSUMPTION AGGREGATE CONSUMPTION EXPENDITURE CONSUMPTION EXPENDITURES COTTON COTTON PRODUCTION COUNTERFACTUAL CROP CROP AGRICULTURE CROP INCOME CROP PRICES CROPS CULTIVATION DIVERSIFICATION DOMESTIC MARKET ECONOMIC GROWTH EXPENDITURE EXPENDITURES EXPORT CROPS FARM FARM EMPLOYMENT FARM HOUSEHOLDS FARM INCOME FARM LABOR FARM SIZE FARMER FARMERS FARMING FARMS HARVESTING HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD WELFARE IFPRI IMPACT ON POVERTY INCOME DISTRIBUTION INCOME GAP INCOME GROWTH INCOME SHARES INFLATION LAND SIZE LANDHOLDINGS LIVING STANDARDS MACROECONOMIC STABILITY MARKET LIBERALIZATION MARKET PRICE MARKET PRICES MARKET STRUCTURE MARKETING PER CAPITA CONSUMPTION PLANTING POOR POOR BENEFIT POOR FARMERS POORER FARMERS POORER HOUSEHOLDS POVERTY IMPACT POVERTY LINES POVERTY REDUCTION PRICE CHANGES PRICE EFFECT PRICE FLUCTUATIONS PRICE INCREASE PRICE INCREASES PRICE LIBERALIZATION PRODUCE PRODUCER PRICES PURCHASING REDUCTION IN POVERTY RURAL RURAL AREAS RURAL GROWTH RURAL HOUSEHOLDS RURAL PHENOMENON RURAL POVERTY SAVINGS SCHOOLING SMALL LANDHOLDINGS STRUCTURAL ADJUSTMENT STRUCTURAL ADJUSTMENT PROGRAMS STRUCTURAL REFORMS SUB-SAHARAN AFRICA WELFARE MEASURE WORLD MARKET WORLD MARKETS YIELDS
Online Access:	http://documents.worldbank.org/curated/en/2006/12/7255566/impact-commodity-price-changes-rural-households-case-coffee-uganda http://hdl.handle.net/10986/9278

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spelling	okr-10986-92782021-04-23T14:02:42Z The Impact of Commodity Price Changes on Rural Households : The Case of Coffee in Uganda Bussolo, Maurizio Godart, Olivier Lay, Jann Thiele, Rainer AGRICULTURAL ACTIVITIES AGRICULTURAL GROWTH AGRICULTURAL INCOMES AGRICULTURAL INPUTS AGRICULTURAL POLICY AGRICULTURAL PRODUCTION ALTERNATIVE CROPS CAPITA CONSUMPTION CAPITA INCOMES CHANGES IN POVERTY CLIMATIC ZONES COFFEE COFFEE CROP COFFEE FARMERS COFFEE GROWERS COFFEE MARKET COFFEE MARKETS COFFEE PRICE COFFEE PRICES COFFEE PRODUCERS COFFEE PRODUCTION COFFEE SECTOR COFFEE YIELDS COMMODITY COMMODITY PRICE CONSUMPTION AGGREGATE CONSUMPTION EXPENDITURE CONSUMPTION EXPENDITURES COTTON COTTON PRODUCTION COUNTERFACTUAL CROP CROP AGRICULTURE CROP INCOME CROP PRICES CROPS CULTIVATION DIVERSIFICATION DOMESTIC MARKET ECONOMIC GROWTH EXPENDITURE EXPENDITURES EXPORT CROPS FARM FARM EMPLOYMENT FARM HOUSEHOLDS FARM INCOME FARM LABOR FARM SIZE FARMER FARMERS FARMING FARMS HARVESTING HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD WELFARE IFPRI IMPACT ON POVERTY INCOME DISTRIBUTION INCOME GAP INCOME GROWTH INCOME SHARES INFLATION LAND SIZE LANDHOLDINGS LIVING STANDARDS MACROECONOMIC STABILITY MARKET LIBERALIZATION MARKET PRICE MARKET PRICES MARKET STRUCTURE MARKETING PER CAPITA CONSUMPTION PLANTING POOR POOR BENEFIT POOR FARMERS POORER FARMERS POORER HOUSEHOLDS POVERTY IMPACT POVERTY LINES POVERTY REDUCTION PRICE CHANGES PRICE EFFECT PRICE FLUCTUATIONS PRICE INCREASE PRICE INCREASES PRICE LIBERALIZATION PRODUCE PRODUCER PRICES PURCHASING REDUCTION IN POVERTY RURAL RURAL AREAS RURAL GROWTH RURAL HOUSEHOLDS RURAL PHENOMENON RURAL POVERTY SAVINGS SCHOOLING SMALL LANDHOLDINGS STRUCTURAL ADJUSTMENT STRUCTURAL ADJUSTMENT PROGRAMS STRUCTURAL REFORMS SUB-SAHARAN AFRICA WELFARE MEASURE WORLD MARKET WORLD MARKETS YIELDS Policies and external shocks affecting agriculture, the main source of income for rural households, can be expected to have a significant impact on poverty. The authors study the case of Uganda. Throughout the 1990s, more than 90 percent of its poor lived in rural areas and, during the same period, large international price fluctuations as well as an extensive domestic deregulation affected the coffee sector, its main source of export revenues. Using data from three household surveys covering the 1990s, the authors confirm a strong correlation between changes in coffee prices (in a liberalized market) and poverty reduction. This is highlighted by comparing the performance of different households grouped according to their dependence on coffee farming. Regression analysis (based on pooled data from the three surveys) of consumption expenditure on coffee-related variables, other controls, and time-fixed effects corroborates that the mentioned correlation is not spurious. The authors also find that while both poor and rich farmers enter the coffee sector, the price boom benefits the poorer households relatively more, whereas the liberalization seems to create more opportunities for richer farmers. Finally, notwithstanding the importance of the coffee price boom, the agricultural policy framework and the thorough structural reforms in which the coffee market liberalization was embedded have certainly played a role in triggering overall agricultural growth. These factors appear to matter especially in the second half of the 1990s when prices went down but poverty reduction continued. 2012-06-26T19:00:42Z 2012-06-26T19:00:42Z 2006-12 http://documents.worldbank.org/curated/en/2006/12/7255566/impact-commodity-price-changes-rural-households-case-coffee-uganda http://hdl.handle.net/10986/9278 English en_US Policy Research Working Paper; No. 4088 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Uganda
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	AGRICULTURAL ACTIVITIES AGRICULTURAL GROWTH AGRICULTURAL INCOMES AGRICULTURAL INPUTS AGRICULTURAL POLICY AGRICULTURAL PRODUCTION ALTERNATIVE CROPS CAPITA CONSUMPTION CAPITA INCOMES CHANGES IN POVERTY CLIMATIC ZONES COFFEE COFFEE CROP COFFEE FARMERS COFFEE GROWERS COFFEE MARKET COFFEE MARKETS COFFEE PRICE COFFEE PRICES COFFEE PRODUCERS COFFEE PRODUCTION COFFEE SECTOR COFFEE YIELDS COMMODITY COMMODITY PRICE CONSUMPTION AGGREGATE CONSUMPTION EXPENDITURE CONSUMPTION EXPENDITURES COTTON COTTON PRODUCTION COUNTERFACTUAL CROP CROP AGRICULTURE CROP INCOME CROP PRICES CROPS CULTIVATION DIVERSIFICATION DOMESTIC MARKET ECONOMIC GROWTH EXPENDITURE EXPENDITURES EXPORT CROPS FARM FARM EMPLOYMENT FARM HOUSEHOLDS FARM INCOME FARM LABOR FARM SIZE FARMER FARMERS FARMING FARMS HARVESTING HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD WELFARE IFPRI IMPACT ON POVERTY INCOME DISTRIBUTION INCOME GAP INCOME GROWTH INCOME SHARES INFLATION LAND SIZE LANDHOLDINGS LIVING STANDARDS MACROECONOMIC STABILITY MARKET LIBERALIZATION MARKET PRICE MARKET PRICES MARKET STRUCTURE MARKETING PER CAPITA CONSUMPTION PLANTING POOR POOR BENEFIT POOR FARMERS POORER FARMERS POORER HOUSEHOLDS POVERTY IMPACT POVERTY LINES POVERTY REDUCTION PRICE CHANGES PRICE EFFECT PRICE FLUCTUATIONS PRICE INCREASE PRICE INCREASES PRICE LIBERALIZATION PRODUCE PRODUCER PRICES PURCHASING REDUCTION IN POVERTY RURAL RURAL AREAS RURAL GROWTH RURAL HOUSEHOLDS RURAL PHENOMENON RURAL POVERTY SAVINGS SCHOOLING SMALL LANDHOLDINGS STRUCTURAL ADJUSTMENT STRUCTURAL ADJUSTMENT PROGRAMS STRUCTURAL REFORMS SUB-SAHARAN AFRICA WELFARE MEASURE WORLD MARKET WORLD MARKETS YIELDS
spellingShingle	AGRICULTURAL ACTIVITIES AGRICULTURAL GROWTH AGRICULTURAL INCOMES AGRICULTURAL INPUTS AGRICULTURAL POLICY AGRICULTURAL PRODUCTION ALTERNATIVE CROPS CAPITA CONSUMPTION CAPITA INCOMES CHANGES IN POVERTY CLIMATIC ZONES COFFEE COFFEE CROP COFFEE FARMERS COFFEE GROWERS COFFEE MARKET COFFEE MARKETS COFFEE PRICE COFFEE PRICES COFFEE PRODUCERS COFFEE PRODUCTION COFFEE SECTOR COFFEE YIELDS COMMODITY COMMODITY PRICE CONSUMPTION AGGREGATE CONSUMPTION EXPENDITURE CONSUMPTION EXPENDITURES COTTON COTTON PRODUCTION COUNTERFACTUAL CROP CROP AGRICULTURE CROP INCOME CROP PRICES CROPS CULTIVATION DIVERSIFICATION DOMESTIC MARKET ECONOMIC GROWTH EXPENDITURE EXPENDITURES EXPORT CROPS FARM FARM EMPLOYMENT FARM HOUSEHOLDS FARM INCOME FARM LABOR FARM SIZE FARMER FARMERS FARMING FARMS HARVESTING HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD WELFARE IFPRI IMPACT ON POVERTY INCOME DISTRIBUTION INCOME GAP INCOME GROWTH INCOME SHARES INFLATION LAND SIZE LANDHOLDINGS LIVING STANDARDS MACROECONOMIC STABILITY MARKET LIBERALIZATION MARKET PRICE MARKET PRICES MARKET STRUCTURE MARKETING PER CAPITA CONSUMPTION PLANTING POOR POOR BENEFIT POOR FARMERS POORER FARMERS POORER HOUSEHOLDS POVERTY IMPACT POVERTY LINES POVERTY REDUCTION PRICE CHANGES PRICE EFFECT PRICE FLUCTUATIONS PRICE INCREASE PRICE INCREASES PRICE LIBERALIZATION PRODUCE PRODUCER PRICES PURCHASING REDUCTION IN POVERTY RURAL RURAL AREAS RURAL GROWTH RURAL HOUSEHOLDS RURAL PHENOMENON RURAL POVERTY SAVINGS SCHOOLING SMALL LANDHOLDINGS STRUCTURAL ADJUSTMENT STRUCTURAL ADJUSTMENT PROGRAMS STRUCTURAL REFORMS SUB-SAHARAN AFRICA WELFARE MEASURE WORLD MARKET WORLD MARKETS YIELDS Bussolo, Maurizio Godart, Olivier Lay, Jann Thiele, Rainer The Impact of Commodity Price Changes on Rural Households : The Case of Coffee in Uganda
geographic_facet	Uganda
relation	Policy Research Working Paper; No. 4088
description	Policies and external shocks affecting agriculture, the main source of income for rural households, can be expected to have a significant impact on poverty. The authors study the case of Uganda. Throughout the 1990s, more than 90 percent of its poor lived in rural areas and, during the same period, large international price fluctuations as well as an extensive domestic deregulation affected the coffee sector, its main source of export revenues. Using data from three household surveys covering the 1990s, the authors confirm a strong correlation between changes in coffee prices (in a liberalized market) and poverty reduction. This is highlighted by comparing the performance of different households grouped according to their dependence on coffee farming. Regression analysis (based on pooled data from the three surveys) of consumption expenditure on coffee-related variables, other controls, and time-fixed effects corroborates that the mentioned correlation is not spurious. The authors also find that while both poor and rich farmers enter the coffee sector, the price boom benefits the poorer households relatively more, whereas the liberalization seems to create more opportunities for richer farmers. Finally, notwithstanding the importance of the coffee price boom, the agricultural policy framework and the thorough structural reforms in which the coffee market liberalization was embedded have certainly played a role in triggering overall agricultural growth. These factors appear to matter especially in the second half of the 1990s when prices went down but poverty reduction continued.
format	Publications & Research :: Policy Research Working Paper
author	Bussolo, Maurizio Godart, Olivier Lay, Jann Thiele, Rainer
author_facet	Bussolo, Maurizio Godart, Olivier Lay, Jann Thiele, Rainer
author_sort	Bussolo, Maurizio
title	The Impact of Commodity Price Changes on Rural Households : The Case of Coffee in Uganda
title_short	The Impact of Commodity Price Changes on Rural Households : The Case of Coffee in Uganda
title_full	The Impact of Commodity Price Changes on Rural Households : The Case of Coffee in Uganda
title_fullStr	The Impact of Commodity Price Changes on Rural Households : The Case of Coffee in Uganda
title_full_unstemmed	The Impact of Commodity Price Changes on Rural Households : The Case of Coffee in Uganda
title_sort	impact of commodity price changes on rural households : the case of coffee in uganda
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/12/7255566/impact-commodity-price-changes-rural-households-case-coffee-uganda http://hdl.handle.net/10986/9278
_version_	1764406798976024576

The Impact of Commodity Price Changes on Rural Households : The Case of Coffee in Uganda

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