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Title:The impact of coffee price changes on rural households in Uganda
Authors:Bussolo, Maurizio
Godart, Olivier N.
Lay, Jann
Thiele, Rainer
Issue Date:2007
Citation:[Journal:] Agricultural economics [ISSN:] 0169-5150 [Volume:] 37 [Year:] 2007 [Issue:] 2/3 [Pages:] 293-303
Abstract:Employing household survey data covering the periods 1992-1993, 1995-1996, and 1999-2000, this article shows for the case of Uganda that a coffee market liberalization followed by a price boom was associated with substantial reductions in poverty, which could even be sustained when prices went down again. Coffee is not planted by the richest farmers and the gains from higher coffee prices accrued to poorer and richer coffee farmers alike. Nor were poorer farmers hurt disproportionately when prices fell. In addition, we find strong spillovers from coffee production to other agriculture, which tends to favor the poor, and to nonagricultural activities. These multiplier effects are concentrated in coffee regions. In an economic environment characterized by a booming agricultural sector, coffee farmers were able to accommodate the negative price shock, in particular through agricultural diversification. General agricultural growth also cushioned possible negative multiplier effects in coffee regions. Overall, the case of coffee in Uganda thus lends support to the view that agricultural trade liberalization is beneficial for the poor.
JEL:I32
Persistent Identifier of the first edition:doi:10.1111/j.1574-0862.2007.00275.x
Document Type:Article
Appears in Collections:Economists Online

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