English

Ahmed Mohammed

doi:10.5897/ajmm2015.0458

Abstract

The purpose of this paper is to identify the commodity market opportunities and contests of Ethiopia Commodity Exchange market (ECX). The Ethiopian commodity exchange market plays a paramount role to alter Ethiopian agriculture commodity market history and transform the economy through a dynamic, efficient and transparent marketing system. To do this, data were collected in a survey questioners and an interview guided questionnaires employed for both permanent and intermediate members of the commodity exchange together with a deep projective interview. Properly implemented and regulated, commodity exchanges can contribute greatly to the achievement of a country’s economic and developmental issues. Hence the overall objective of this study is to assess the challenges faced and growth prospects. The challenges associated with commodity marketing include the potential for market abuse, increased cost of trading, liquidity issues, quality problem and unfair competition among traders. Key words: Commodity exchange, market opportunities, ECX

Highlights

The Ethiopia commodity exchange (ECX) signifies a major advancement in the development of the Ethiopian agro-commodity market (Goggin, 2005) to promote the commercialization of major agricultural commodities
A commodity exchange is a central marketplace where sellers and buyers meet to transact in an organized fashion, with certain clearly specified and transparent „rules of the game‟
The total population comprised a total of 128 respondents, of which the majority (80.4%) of household traders were males, whereas, the remaining were females.Most of the traders were found in the age category between 33 and 48 years

Summary

Introduction

The Ethiopia commodity exchange (ECX) signifies a major advancement in the development of the Ethiopian agro-commodity market (Goggin, 2005) to promote the commercialization of major agricultural commodities. The ECX serves as a central marketplace where trade is funneled through a single, well-defined mechanism. The scope of the ECX is to promote the commercialization of major agricultural commodities, such as grains, pulses and coffee. A commodity exchange is any organized marketplace where trade is funneled through a single, well-defined mechanism (Eleni, 2005). Agricultural commodities flow from surplus markets mainly confined in the western highland regions, through the central market to the deficit markets throughout the country (Addisalem, 2009). It shows that variations in agrocommodity prices are significantly correlated across these markets, suggesting a significant level of market integration (Dercon, 1995)

Objectives

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Conclusion