Seasonality of Staple Food Prices in Ethiopia: Does Warehouse Service Matter?

Abstract

Using 128 domestic and international monthly price series of four commodities, this study demonstrates how and to what extent warehouse service affects seasonality of food prices in Ethiopia. The study also examines the characteristics and degree of food price seasonality in the country. Our result shows that there is significant variation in the seasonal gap amongst crops - i.e. the highest seasonal gap being for maize (20%). We also find that 10-14% of monthly price volatility in Ethiopia is explained by its seasonality. Most importantly, our result reveals that availability of warehouse service has lessen the food price seasonal gap in Ethiopia.