Date of this Version
Abayo, A., & Nogueira, L. 2022. The Analysis of Coffee Farmgate Prices in African Developing Countries: An Econometric Analysis. Undergraduate Honors Thesis. University of Nebraska-Lincoln.
The coffee industry contributes significantly to the African economy. The current rising production costs and climate change in the coffee industry make it challenging for African coffee producers to keep up with the rising costs of production, leading to farm abandonment and poor standards of living of coffee farmers in African countries. This paper analyzes the impact of various macroeconomic, production, consumption, and climate factors, on the prices paid to coffee growers in African countries at farmgate. The results indicate that the increase in temperature reduces price paid to African coffee growers at farmgate. We also observe that coffee farmgate prices increases with the the U.S. gross domestic product (GDP). Additionally, we find evidence that global consumption has a significant impact on coffee farmgate prices. However, country consumption and production share do have a significant impact on coffee farmgate prices.