Analysis of price incentives for maize in Ethiopia for the time period 2005–2012
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This technical note is an attempt to measure, analyze and interpret price incentives for Maize in Ethiopia over the period 2005 – 2012. For this purpose, yearly averages of domestic farm gate and wholesale prices are compared with reference prices calculated on the basis of the price of the commodity in the international market. The price gaps between reference prices and domestic prices along the commodity’s value chain indicate the extent to which incentives (positive gaps) or disincentives (n egative gaps) were present at the farm gate and wholesale level. The price gaps are expressed in relative terms as a percentage of the reference price, referred to as the Nominal Rate of Protection (NRP). These key indicators are used by MAFAP to assess the effects of policy and market performance on prices.