Commodity exchanges: initial conditions and potential benefits
2005
Ian Goggin
An agricultural commodity exchange is based on a free market system and facilitates trade between farmers and buyers in agricultural goods and provides daily prices of farm produce. It has the potential to transform the Ethiopian agricultural market as it has done in other Sub-Saharan African countries like Zimbabwe. The benefits for the agricultural sector include improved market access and communication, increased competition, and ultimately more efficient and cost-effective markets. Moreover, a successful commodity exchange also allows for all sectors to participate and can thus increase the economic productivity of the country.
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