Ethiopia Commodity Exchange Authority

Understanding Teff: A Review of Supply and Marketing
Issues
Prepared by Engdawork Tadesse

January 2009
Addis Ababa

Contents
1

Summary ................................................................................................................................... iii

2

INTRODUCTION...........................................................................................................................1

3

4

5

6

2.1

Background .........................................................................................................................1

2.2

Objective of the Study ..........................................................................................................1

2.3

Scope and Significance of the Study ......................................................................................2

2.4

Source of Data and Method of Analysis .................................................................................2

BACKGROUND.............................................................................................................................3
3.1

Origin and diversity..........................................................................................................3

3.2

Ecology and Geographic Distribution.....................................................................................3

3.3

Properties and use.............................................................................................................4

3.4

Agronomy and limitation of the crop ...............................................................................5

3.5

Prospects ...........................................................................................................................6

Production of Teff .......................................................................................................................8
4.1

Regional Distribution of Teff Production........................................................................12

4.2

Major Teff producing Zones............................................................................................13

4.3

Surplus and Deficit Areas ...............................................................................................15

4.4

Marketed Surplus of Teff.................................................................................................15

MARKETING OF TEFF .................................................................................................................17
5.1

Peculiarities in Teff Marketing .......................................................................................17

5.2

Market infrastructure......................................................................................................17

5.3

Storehouse facilities.........................................................................................................18

5.4

Market information .........................................................................................................18

5.5

Transportation.................................................................................................................19

5.6

Market Participants.........................................................................................................19

5.7

Teff Grading and Standardization...................................................................................20

PRICE ANALYSIS OF TEFF ............................................................................................................22
6.1

Price volatility of Teff ......................................................................................................22

6.2

Teff price linkage across markets ....................................................................................22

References .......................................................................................................................................24
Annexes...........................................................................................................................................25

List of Tables
Figure 4-1 Average Production Percentage Share by Crop for the Period 2003/04-2007/08 .........
Figure 4-2 Average Cultivated Area Percentage Share by crop for the Period 2003/04 -2007/08 ...
Figure 4-3 Trend of Teff Production..................................................................................................
Figure 4-4 Percentage share of Teff Production by Region...............................................................
Table 4-1 Average annual growth rate of production, cultivated area and yield of Teff ..............10
Table 4-2 Distribution of appropriate technologies applied area in hectares for Teff production
........................................................................................................................................................11
Table 4-3 Regional distribution of Teff production.......................................................................12
Table 4-4 Major Teff producing zones at national level ..............................................................14
Table 4-5 Percentage share of Teff utilization pattern by small holder farmers at national and
regional level..................................................................................................................................16
Table 5-1 Teff grades ......................................................................................................................21
List of Figures
Figure 4-1 Average Production Percentage Share by Crop for the Period 2003/04 -2007/08 ........8
Figure 4-2 Average Cultivated Area Percentage Share by crop for the Period 2003/04 -2007/08 ... 9
Figure 4-3 Trend of Teff Production...............................................................................................11
Figure 4-4 Percentage share of Teff Production by Region............................................................13

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1

Summary

Teff is one of the major cereal crops in Ethiopia which is mainly used for food
consumption. The composition of Teff shows that it has good mineral content and
generally higher amount of the essential amino acids. The crop can grow well in
moisture stress and waterlogged conditions better than other cereals. It can also be
grown from sea level up to 2800m, under various rainfalls, temperature and soil
regimes. Most of the Ethiopian farmers use traditional varieties of Teff which is known
to have a very low yield, around 910 kg per hectare. Modern varieties are also used in
many regions such as Gojjam and Shewa but in very small areas. The yield of the
modern varities is estimated to be 1700-2200 kg per hectare on farmers’ fields and 22002800 kg per hectare on research managed large farms.
The objective of this analytical study is to understand the commodity Teff with respect
to volume of production, marketable surplus, distribution channel, grade and
standards, marketing issues and price. Various analytical techniques such as trend
analysis, percentage change, percentage share, average, standard deviation, coefficient
of variation and correlation coefficient were used to assess the characteristics under
study. Based on the analysis of production, supply, demand, marketing and price
issues, the following facts have become evident.

Teff has a number of peculiar features which make it a preferred crop among
farmers. Being the most preferred staple food in the country, demand for the
product is ever increasing. For instance, the annual volume of production had
increased from 16,773,480 quintals in 2003/04 to 29,929,235 quintals in 2007/08,
with average annual growth rate of 15.75 percent. It has also an excellent
resistance to moisture stress and is suitable for multiple cropping, and it is not
easily attacked by weevils and other pests. Its straw is a valuable feed during the
dry season.

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Amhara, Oromia, SNNPR, Tigray and Benshangule-Gumz regions are the major
Teff producing regions in the country. According to the 2007/08 Agricultural
Sample Survey, Amhara and Oromia regions took the first and the second
position in Teff production. The productivity of the land measured by yield
(quintal per hectare) for Amhara is greater than that of Oromia. SNNPR and
Tigray regions took the third and fourth position in Teff production, respectively.

Looking at the zonal distribution of teff production, there are 19 major Teff
producing zones in the country which account for more than 83 percent of the
country’s total Teff production. These zones are found in Tigray, Amhara and
Oromia regions. Of all these zones, East Gojjam is the leading zone contributing
for more than 10 percent of the national annual Teff production. There are also
other potential Teff producing zones in Amhara (North Gonder, North Shewa
and West Gojjam zones) and in Oromia (West Shewa, East Shewa and South
West Shewa zones); which contribute, individually, from five to ten percent to
the national Teff production.

The volume of surplus Teff production in a given year depends on the intensity
of application of improved agricultural technologies, prevalence of weather
condition suitable to Teff production and availability of family or hired labor for
peak agricultural activities. According to CSA reports, farmers sold on average
26 percent of their produce annually. The rest is either consumed domestically,
reserved for purpose of seed, paid in kind as wage for hired labor or transferred
to other persons in the form of a gift.

In the Ethiopian grain marketing system, there are two types of markets,
conventionally termed as ‘major’ and ‘village’ markets. Major markets are those
markets connected to the zonal towns, the regional City and to Addis Ababa
with all weathered highway. Village markets, on the other hand, are located

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outside the highway and mostly supply marketable surplus to the nearby major
markets in a given wereda. Most of the grain traders in village and major
markets share common characteristics:
 Have very small amount of stock holding and poor storage building

facilities.
 Rely on their own personal contacts for getting market information, and
 Are large in number and make the supply channel remarkably longer

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2

INTRODUCTION

2.1 Background
Teff is a grain crop solely produced in the country for human consumption. It grows in
most of the agro-ecology zones of the country. In 2007/08 meher season, Teff ranks first
in total crop land and second next to maize in quantity produced among other cereals.
This high and growing market demand of the crop and its large volume of production
with increasing trend encouraged the ECX to consider the crop to trade on its platform.
The objective of this study is to understand the commodity Teff. Emphasis is given to
the analysis of volume of production, marketable surplus, distribution channel, grade
and standards, and marketing issues. Accordingly, the remaining parts of this section
elaborate the objectives, scope and methodology of the study. The rest of the report is
organized in five sections. In section three, origin and diversity, ecology and
geographical distribution, properties and use, agronomy and crop limitation and
prospects of Teff production will be discussed. Section four deals with Teff production
trend, regional distribution, major producing zones, surplus production and deficit
area. Marketed surplus of Teff will be also discussed in this section. In section five, Teff
marketing especially market peculiarities, infrastructure and participants and grading
and standardization will be discussed. The price nature of Teff will be discussed in
section six.

2.2

Objective of the Study

This study tries to understand and analyze the supply, demand and marketing issues
of Teff production. More specifically, the study tries to assess;

The volume and trends of Teff production and market supply of Teff in
the country.

Major sources of Teff supply by regions and zones.

2.3

Marketable surplus and marketing channels of Teff.

Price nature of Teff

Scope and Significance of the Study

The scope of this study is limited to the National level with focus on Teff production,
supply and marketing aspects based on secondary data. The different national
agencies in the country that produce statistical data mainly deliver the meher season
agricultural data. However, the belg season agricultural data and also data on
commercial and state farms are hard to obtain from these agencies. The out come of
this study is used as an input for decision makers on issues related to Teff production
and marketing. More over, it is also an input for researchers that make deeper analysis
on the subject matter under study.

2.4

Source of Data and Method of Analysis

The analysis has utilized only secondary sources, and data collected by national
agencies (Central Statistical Agency and EGTE) and different international websites.
These different sources are used for comparison, cross checking and more insights in
the analysis. The data consist of information on quantity terms for Teff production,
supply and prices.
The method of analysis is mainly simple descriptive statistics such as percentage,
mean, pie chart, trends, standard deviation, coefficient of variation and correlation
coefficient.

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3

BACKGROUND

3.1 Origin and diversity
The fact that several endemic and non endemic species of Eragrostis, some of which are
considered the wild relatives of Teff, are found in Ethiopia and, in addition, the fact that
the genetic diversity for Teff exists nowhere in the world except in Ethiopia, indicates
that Teff originated and was domesticated in Ethiopia. Many writers identified Ethiopia
as the centre of origin and diversity of Teff. As with several other crops, the exact date
and location for the domestication of Teff is unknown. However, according to different
sources there is no doubt that it is a very ancient crop in Ethiopia, where domestication
took place before the birth of Christ around 4000-1000 BC.
On the basis of linguistic, historic, geographic and botanical notes, Teff is assumed to
have originated in northeastern Africa. The current area of cultivation is probably not
the initial one of domestication; domestication probably occurred in the western area of
Ethiopia, where agriculture is precarious and semi-nomadic.

3.2

Ecology and Geographic Distribution

Teff is adapted to a wide range of environments and is presently cultivated under
diverse agro climatic conditions. It can be grown from sea level up to 2800 m, under
various rainfalls, temperature and soil regimes. However, according to experience
gained so far from national yield trials, conducted at different locations across the
country, Teff performs excellently at an altitude of 1800 - 2100 m, annual rainfall of 750 850 mm, growing season rainfall of 450550 mm and a temperature range of 10°C - 27°C.
A very good result can also be obtained at an altitude range of 1700 - 2200 m and
growing season rainfall of 300 mm. Teff is day length sensitive and flowers best during
12 hours of daylight.
Most of the Ethiopian farmers use traditional varieties of Teff and these are distributed
all over the country. Local varieties such as GeaLamie, Dabi, ShewaGimira, Beten and
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Bunign, which are early maturing (<85 days), are widely used in areas that have a short
growing period due to low moisture stress or low temperature. The same varieties are
also used in areas with adequate rainfall and where double cropping is practiced. In the
highly productive and major Teff producing regions of Gojam and Shewa, and in other
regions where environmental stress is not severe, the local varieties such as Alba, Ada
and Enatit are used. Modern varieties are used in many regions but in very small areas
within each region. In the regions of Gojam and Shewa, which are located in the central
highlands of Ethiopia and are also the largest and major Teff production areas in the
country, modern and traditional varieties are used.

3.3 Properties and use
The composition of Teff is similar to that of millet, although it contains generally higher
amounts of the essential amino acids. The amino acid composition of Teff is excellent; its
lysine content is higher than that of all cereals except rice and oats; it has good mineral
content and its straw is nutritious.
In Ethiopia, Teff is traditionally grown as a cereal crop. The grain is grinded to flour
which is mainly used for making local bread called Injera and sometimes for making
porridge. The grain is also used to make local alcoholic drinks, called tela and katikala.
Teff straw, besides being the most appreciated feed for cattle, is also used to reinforce
mud and plaster the walls of houses and local grain storage facilities called gotera. Teff
grain, owing to its high mineral content, has started to be used in mixtures with
soybean, chickpea and other grains in the baby food industry.
Injera made from Teff is traditionally consumed with wot, a sauce made of meat or
ground pulses like lentil, faba bean, field pea, broad bean and chickpea. The traditional
way of consuming Injera made from Teff with wot provides a well balanced diet.

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3.4

Agronomy and limitation of the crop

In Ethiopia, Teff is cultivated in much the same way as wheat and barley. Depending on
the location and maturity period of the varieties, it is grown during the main growing
season between July and November, and also during the small rainy season between
March and June. It is mainly cultivated as a mono crop, but occasionally under a
multiple cropping system.
Teff can be planted in late may similar to millets. Late plantings have the advantage to
control emerged weeds by tillage prior to planting, which can be significant since Teff is
a poor competitor with weeds during the early growth stages. Teff should be seeded 12–
15 mm deep either broadcast or in narrow rows. The tiny seed size requires much
pulverized soils; otherwise, the seed can not emerge. This calls for cultural practices
requiring huge amount of family and/ or hired labor during land preparation, weeding
and harvesting.
Teff performs better both in good and bad years. It grows well in moisture stress and
waterlogged conditions better than other cereals. Moderate rates of nitrogen and
phosphorus fertilizer are suggested to prevent lodging. In netosoils area if early sown
crops failed; the field will be left solely for Teff. While in versisoils area if early sown
crops failed, the land will be allocated to either to Teff or other crops like chick pea,
grass pea and lentil.
The small size of Teff seed poses problems during sowing, and indirectly during
weeding and threshing. At sowing, the very small seed size makes it difficult to control
population density and its distribution. This remains true whether one broadcasts the
seed by hand, uses a broadcaster or a seed driller. The uneven plant stand after
germination has an impact on nutrient use, efficiency of the crop and crop yield. Owing
to the scattered plant stand, farmers find it difficult to use mechanical weeding
implements and are forced to either hand-weed or to use chemical herbicides.

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Local varieties give low yield. At present the national average grain yield of Teff is 910
kg/ha. Improved varieties of Teff give a grain yield of 1700-2200 kg/ha on farmers'
fields and 2200-2800 kg/ha on research managed large farms. However, no
comprehensive study has been conducted to assess the yield potential of the crop.

3.5

Prospects

Ethiopian farmers prefer to grow Teff because of the following advantages:

It can be grown in areas experiencing moisture stress.

It can be grown in waterlogged areas and withstands anaerobic conditions better
than many other cereals, including maize, wheat and sorghum.

It is suitable for use in multiple cropping systems such as double, relay and
intercropping.

Its straw is a valuable feed during the dry season when there is an acute
shortage. It is highly preferred by cattle over the straw of other cereals and
demands high prices in the markets.

It has acceptance in the national diet, has high demand and high market value
and hence enables farmers to earn more than with other crops.

It is a reliable and low risk crop.

In moisture stress areas, farmers use it as a rescue crop. For example, around Kobo and
Zeway, which are areas with low and erratic rainfall, farmers’ first plant maize around
April. If this fails after a month or more because of moisture stress or pest problems they
plough it under and plant sorghum. If this also fails after a month or more then they sow
Teff as a last resort, which often survives on the remaining moisture in the soil and yields
some grain for human consumption and straw for feed.

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It is not attacked by weevils and other storage pests and therefore is easily and
safely stored under local storage conditions. This results in reduced postharvest
management costs.

Compared with any other cereals growing in Ethiopia it has fewer disease and
pest problems.

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4

Production of Teff

Teff is one of the major cereal crops in Ethiopia. It is used throughout the country almost
by all citizens for food, especially for the preparation of local bread called ‘Injera’ and
local alcoholic drink called ‘Tela’ and ‘Katikala’. Its production mainly depends on soil
type, altitude and agro-ecologic climatic conditions. It is the first in volume of cultivated
area in the group of cereal crops and the second next to maize in volume of production.

Figure 4-1 Average Production Percentage Share by Crop for the Period 2003/04-2007/08

Others(
Finger millet,oats &
rice)
4%
Sorghum
18%

Teff
20%

Barley
11%

Maize
28%

Wheat
19%

Source: CSA annual agricultural sample survey

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Figure 4-2 Average Cultivated Area Percentage Share by crop for the Period 2003/04-2007/08

Others
(Finger millet,oats
& rice)
5%
Teff
28%

Sorghum
18%

Maize
19%

Barley
13%
Wheat
17%

Source: CSA annual agricultural sample survey
Because of very high prospects on the production of this crop by Ethiopian farmers,
every year the volume of production shows an increasing trend with average annual
growth rate of 15.75 percent during the period 2003/04 to 2007/08 (see Figure 4-3 ).
Teff productivity depends on good weather condition and use of appropriate technologies
(fertilizer, improved seed, and herbicide) with the recommended rate and time. The farm
management data of the annual agricultural sample survey of CSA show that the growth of
the use of appropriate technologies is minimum compared to the growth of total Teff cultivated
area (see Table 4-2). The data reveal that small holder farmers utilize fertilizer better than other
inputs. Since use of improved seeds is not significant, the increase in productivity observed
during the period of analysis is mainly the result of the existence of timely and welldistributed rainfall and good weather conditions.

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Table 4-1 Average

annual growth rate of production, cultivated area and yield of Teff
Cultivated

Production
Year

in quintal

%
change

Area
in hectare

%

Yield in

%

change

qui./hec

change

2003/04

16,773,480.00

1,989,068.00

8.43

2004/05

20,255,214.00

20.76

2,135,553.00

7.36

9.48

12.46

2005/06

21,755,977.00

7.41

2,246,017.00

5.17

9.69

2.22

2006/07

24,377,495.00

12.05

2,404,674.00

7.06

10.14

4.64

2007/08

29,929,235.00

22.77

2,565,155.22

6.67

11.67

15.09

Average growth rate

15.75

6.57

8.60

Source: CSA annual agricultural sample survey

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Figure 4-3 Trend

of Teff Production

Volume in millions quintal

30.00
25.00
20.00
15.00
10.00
5.00
2003/04

2004/05

2005/06

2006/07

2007/08

Table 4-2 Distribution of appropriate technologies applied area in hectares for Teff production

Year

Total Teff
Cultivated
Area
in hectare

Improved
seeds
%
applied
share
area in
hectare

Irrigation
Pesticide
applied
%
applied
area in
share
area
hectare
in hectare

%
share

Fertilizer
applied
area in
hectare

%
share

50.12

2003/04

1,989,068.00 12,151.00

0.61

7,835.00

0.39

393,112.00

19.76 996,852.00

2004/05

2,135,553.00 15,448.00

0.72

7,756.00

0.36

523,109.00

24.50 1,138,047.00 53.29

2005/06

2,246,017.00 24,712.00

1.10

7,895.00

0.35

622,646.00

27.72 1,319,598.00 58.75

2006/07

2,404,674.00 13,172.00

0.55

9,044.00

0.38

731,899.00

30.44 1,425,135.00 59.27

2007/08

2,565,155.22 17,599.00

Average 2,268,093.44 16,616.40

0.69 18,414.00
0.73

10,188.80

0.72 781,288.00
0.44

610,410.80

30.46 1,530,978.00
26.58

59.68

1,282,122.00 56.22

Source: CSA annual agricultural sample survey

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4.1

Regional Distribution of Teff Production

Mostly Teff is produced by small holder farmers at the central, eastern and northern
highlands of the country on fragmented lands with rain fed conditions in both, Meher
and Belg, seasons. Amhara, Oromia, SNNPR, Tigray and Benshangule-Gumz regions
are the major Teff producing regions in the country. According to the 2007/08
agricultural sample survey, Amhara and Oromia regions took the first and the second
position in Teff production, respectively. The productivity of the land measured by
yield (quintal per hectare) for Amhara is greater than that of Oromia. SNNPR and
Tigray regions took the third and fourth position in Teff production, respectively. The
productivity in SNNPR is by far less than that of Tigray and even other Teff producing
regions in the country (see Table 4-3 ).
Table 4-3 Regional distribution of Teff production
Region

Area
cultivated
in hectares

Tigray
Afar
Amhara
Oromia
Somalia
BenshanguleGumz
SNNPR
Gambella
Harari
Dire Dawa

% share of
regional area
cultivated

178742.14
1047084.74
1082816.68
-

7.0
40.8
42.2
0.7

% share of
regional
productio
n
7.6
2283031.14
42.4
12685684.13
41.5
12412870.81
0.7
205102.25
7.8
2322467.96

Yield
in
qu's/h
et
12.77
12.12
11.46
-

-

10.87
9.89
-

-

-

2,565,155.22
29,929,234.99
Source: 2007/08 annual agricultural sample survey, CSA

11.67

National Level

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18870.52
234789.37
-

Production in
quintals

-

9.2

Page 12

Figure 4-4 Percentage share of Teff Production by Region

Fig 2.4 Percentage share of Teff Production by Region
Benshangule-Gumz
1%
SNNPR
8%

Tigray
8%

Oromia
41%

Amhara
42%

4.2 Major Teff producing Zones

According to the CSA data on annual agricultural sample survey, there are 46 zones
and 9 special weredas in the country in which production of Teff is widely practiced.
These include five zones in Tigray regions, ten zones and one special Wereda in
Amhara regions, seventeen zones in Oromia regions, three zones in Benshangule -Gumz
regions and eleven zones and eight special weredas in SNNPR regions (See ANNEX 1).
However, more than 83 percent of the country’s Teff production comes from 19 zones
found in Tigray, Amhara and Oromia regions.
East Gojjam is the leading zone in Teff production constituting more than 10 percent of
the national annual Teff production. There are also potential Teff producing zones in
Amhara ( North Gonder, North Shewa and West Gojjam zones) and Oromia ( West
Shewa, East Shewa and South West Shewa zones) regions which contribute five to ten
percent of the national annual Teff production (see Table 4-4). Most of Teff surplus
production in the market comes from these major producing areas and is distributed to
the deficit markets through the grain market channel.

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Table 4-4 Major Teff producing zones at national level
Area
zone
Region
Tigray

Production

cultivated in

%

in quintals

hectares

share

Yield In
%

qui/hec

share

Central Tigray

69262.03

2.70

694607.38

2.32

10.03

South Tigray

59695.43

2.33

672192.75

2.25

11.26

North Gonder

143897.66

5.61

1561611.93

5.22

10.85

South Gonder

126752.8

4.94

1167656.4

3.90

9.21

North Wollo

65744.04

2.56

861151.82

2.88

13.1

South Wollo

113828.84

4.44

1273186.14

4.25

11.19

North Shewa

138755.42

5.41

1680250.12

5.61

12.11

East Gojjam

221752.56

8.64

3018976.49

10.09

13.61

West Gojjam

142451.8

5.55

2181529.41

7.29

15.31

Awi

59111.09

2.30

586836.59

1.96

9.93

East Wellega

71121.17

2.77

865751.26

2.89

12.17

66128.6

2.58

970097.94

3.24

14.67

Jimma

130698.04

5.10

1374056.13

4.59

10.51

West shewa

141809.87

5.53

1599282.42

5.34

11.28

North Shewa

113056.99

4.41

1100963.83

3.68

9.74

East Shewa

154506.02

6.02

1978854.34

6.61

12.81

91128.81

3.55

951920.38

3.18

10.45

126100.24

4.92

1535776.12

5.13

12.18

70296.51

2.74

895868.97

2.99

12.74

the 3 regions

2106097.92

82.10

24970570.42

83.43

11.86

National

2,565,155.22

Amhara

Oromia

Illubabor

Arsi
South west
shewa
Horoguduro
Total of the 19 zones in

29,929,234.99

11.67

Source: 2007/08 annual agricultural sample survey, CSA

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4.3

Surplus and Deficit Areas

Surplus areas are defined as areas with a significant marketable surplus for export to
other regions of the country (Eleni Z. Gebre-medhin 124 research report, 2001). With
respect to Teff production, entire shewa of Oromia and Amhara regions and entire
Gojjam are the major Teff surpluses producing areas of the country. Conversely, deficit
areas are defined as areas that have a net grain deficit and import grain from other areas
of the country. Entire Wollo, Tigray region, and the Harar/ Dire Dawa region in eastern
Ethiopia and most of the pastorals area of the country are considered as deficit areas of
the country.

4.4 Marketed Surplus of Teff
The annual volume of marketed surplus of Teff depends on the yearly use of improved
agricultural technologies, weather condition suitable to Teff production and availability
of family or hired labor for peak agricultural activities. The agricultural sample
enumeration survey report, conducted by CSA in 2001/02 shows that of the total Teff
production in the country farmers sold on average 26 percent of their produce. The
remaining is used for household consumption, reserved for purpose of seed, paid in
kind as wage for hired labor and transferred to other persons in a form of gift (see Table
4-5).

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Table 4-5 Percentage share of Teff utilization pattern by small holder farmers at
national and regional level
Wages
Geographic

Household

Area

Consumption

Seed

Sale

In

Animal

kind

Feed

Others

Ethiopia

56.52

13.26

25.77

1.69

0.11

2.65

Tigray

66.21

12.62

15.98

0.45

0.11

4.63

Afar

63.78

8.35

26.14

0.34

-

1.39

Amhara

61.19

12.07

20.63

3.05

0.08

2.98

Oromia

54.17

13.7

28.29

1.33

0.17

2.35

Somali

24.12

10.89

64.99 -

Gumuz

59.52

13.68

22.81

1.94

0.38

1.67

S.N.N.P.R.

39.67

12.18

45.33

0.51

0.18

2.14

-

-

Benishangul-

Gambela

-

Harari

80

10.72

58.14

17.46

Addis Abeba

Dire Dawa

-

-

-

-

-

-

-

9.28 -

-

-

22.48

-

0.3 -

-

-

1.62

-

Source: CSA, 2001/02 Agricultural Sample Enumeration Survey

ECEA-Economic Analysis

Page 16

5

MARKETING OF TEFF

5.1 Peculiarities in Teff Marketing
In Ethiopia, Teff is produced mainly for the purpose of local consumption. Injera made
of Teff is the favorite diet of the citizens and usually considered as a prestige in the
community. For consumers, its taste and preference is unique making other grains the
poor substitute for Teff. Because of these reasons, the demand for Teff is consistently
high over time and its demand is inelastic to price variability compared to other grain
crops in Ethiopia. Another peculiar characteristic usually mentioned by farmers is that
it will be stored for long time.
Price paid for Teff varies with its quality. White teff is considered to be the best quality
and fetches premium price to farmers. However, in terms of the nutritional value,
studies carried out on Teff indicate that red varieties have more ironic content and
suitable aroma/ taste than that of the white one( Seyfu,1993).

5.2 Market infrastructure

5.2.1 Characteristics of rural markets
There are two types of markets, all over in the country. These are conventionally termed
as major and village markets. Major markets are markets that are connected to zonal
city, regional city and Addis Ababa with all weathered highway. There are also towns
in a wereda considered as major markets that do not have an outlet to zonal city,
regional city and Addis Ababa through all weather roads. These major markets have
easy access to transport facilities. Many studies indicate that farmers travel as far as
30km to reach the major markets.

ECEA-Economic Analysis

Page 17

Village markets, on the other hand, are located outside the highway and most of the
time they supply marketable surplus to the nearby major markets in a given wereda.
Farmers establish village markets to get a market outlet for their produce and to obtain
consumable items when they are unable to visit major markets. At times when family
members get engaged in agricultural activities, farmers are forced to provide their Teff
produce to rural assemblers in village markets. Moreover, village markets are
characterized by one or two types of agricultural products. These products are
eventually supplied to major markets through rural assemblers.

5.3 Storehouse facilities
Teff can be stored for longer periods without being attacked by w eevils. It is also possible to
store it in any local made storing materials. Some wholesalers usually store produces till the
price gets its highest level, which requires huge amount of investment for warehouse and
working capital. However, since most rural grain traders have very small amount of stock
holding capacity and poor storage building facilities, they usually transport their stock
holding immediately to the central grain market so that they can regain their working
capital.

5.4

Market information

The Central Statistical Agency collects prices from 119 markets for the preparation of the
Consumer Price Indices, but they are released too late to be used as a decision making tool
by farmers and traders. At the same time, the Ethiopia Grain Trade Enterprise collects
monthly wholesale and retail prices of major grains (cereals and pulses) in about 25 markets
throughout the country for its own purpose and publishes it periodically on its website.
Similarly, Ethiopia Radio and Radio Fana used to generate and disseminate market
information; though they are now terminated.
Farmers try to have information on the price level before delivering their product to the
market either through visiting the major markets physically or by requesting price
ECEA-Economic Analysis

Page 18

information from other farmers. On the other hand, a trader can get price information from
his intimate friend participating in the grain market. Currently, because of the rapid
diffusion of mobile phone facilities, the market information among traders is being easily
accessed. Farmers, brokers and traders generally rely on their own personal contact
networks in order to gather relevant and timely market information.

5.5 Transportation
Transportation facility is the important marketing function which enables producers in
surplus producing areas gain better market price while consumers in deficit areas get
reduced marketing price than would have been prevailing otherwise. Due to poor
infrastructure, most farmers use donkeys, human load, horse, and vehicle to transport
their produce to the nearby village or major markets as far as 30km within a wereda.

5.6 Market Participants
Producers are the single important part of the marketing structure without whom all
other marketing practices is impossible. Producers near the major markets supply their
produce in these markets. Those producers located far away from major markets might
supply to rural assemblers or travel to the major markets. Rural assemblers collect
agricultural products from rural areas and supply to major markets.
There are also assembly wholesalers who collect Teff from both farmers and rural
assemblers. The role of these middlemen in the marketing chain is multifaceted. They
are responsible for Teff mixing up and packing in 100kg and facilitate transportation of
same to the terminal market. To effectively execute their roles, they need to have a
working capital, weighing balance, canvas, negotiating skill in local language,
knowledge of different varieties of Teff, price information, etc.
At the terminal market, assembly wholesalers directly sell Teff to wholesalers, retailers
and consumers through brokers. These wholesalers are responsible to temporarily store
and negotiate with purchasers until the produce is disposed.
ECEA-Economic Analysis

Page 19

5.7 Teff Grading and Standardization

The quality of teff is traditionally graded into five by the Assembly wholesalers of the
major markets. These are: Magna (very white), Nech (white), Sergegna (mix between
white and red), abolse and key (brown). The four grades indicate the color of the Teff
variety while abolse is the name given to the improved Teff variety. Magna teff is the first
grade while key teff is the last in terms of their value in the market.
Most traders employ three categories of grade; namely, Nech, Sergegna and key. Thus,
every collector in the market has three canvases and a weighting balance to buy Teff
from the farmers or rural traders. The teff coming from farmers and rural assemblers is
sorted in one of the three canvases according to its color. In each marketing day, the
purchased Teff is mixed up in the given canvas to have similar color before it is bagged
in 100kg lots. The major purpose of this task is to collect large volume of similar grades
from the small quantity of Teff supplied by small-scale producers.
However, the Quality and Standard Authority of Ethiopia has set standards for
produces of Teff. According to Quality and Standards Authority of Ethiopia (QSAE),
Teff is classified into four; namely,

very white (magna)/ which has a 98-100% very white Teff grains/,

White (Nech)/ which has a 95-98% or more white Teff grains/,

Brown (key)/ which has a 94-100% of brown Teff grains/, and

Mixed (sergegna) which has a mixture of white and brown Teff grain in a
greater or in lesser proportion of the above classes (see Table 5-1).

ECEA-Economic Analysis

Page 20

Table 5-1 Teff grades
Classes

Characteristics

Maximum limits of impurities in %
Grades
1

2

3

4

Very

98-100% of white

Foreign matter

1.5

2.5

3.5

5.0

white

Teff grains

Stone

0.6

0.6

0.6

0.6

White

95-98% of white

Foreign matter

1.5

2.5

3.5

5.0

Teff grains

Stone

0.6

0.6

0.6

0.6

Foreign matter

1.5

2.5

3.5

5.0

Stone

0.6

0.6

0.6

0.6

mixture of white

Foreign matter

1.5

2.5

3.5

5.0

and brown Teff

Stone

0.6

0.6

0.6

0.6

Brown

94-100% of brown
Teff grains

Mixed

grain
Source: Ethiopian Standard. 2001. Teff Specification. Ref.No. ES 671:2001

ECEA-Economic Analysis

Page 21

6
6.1

PRICE ANALYSIS OF TEFF
Price volatility of Teff

The variability of Teff prices through time at market level was measured using standard
deviation and coefficients of variation and the results for different markets are given in
ANNEX 2. At the wholesale level the average standard deviation for the white Teff price
level was 113 birr/quintal while the average coefficient of variation was 23%. Similarly,
at the wholesale level the average standard deviations for the mixed and red Teff were
111 birr/quintal and106 birr/quintal, respectively, and the average coefficient of
variations were 25% and 27%, respectively.
Comparatively high price variability was observed at Addis Ababa, Dessie, Nazareth
and Nekempt for the three different types of Teff. There are also remarkably high
coefficients of variation at Dire Dawa, Mekele and Ziway for mixed Teff and Bale Robe,
Debre Birhan, Dire Dawa, Mekele, Shashemene and Ziway for red Teff. The range of
price percentage variation among markets varies for the three different types of Teff.
The white Teff price at whole sale level varies from 16.8 to 30.6 percent across the
markets whereas the mixed and red Teff price varies from 17.7 to 31.6 percent and from
20.2 to 33.1 percent, respectively. This indicates that the range of percentage variation
for the three types of Teff is somewhat similar. However, if we look at the standard
deviation or coefficients of variation across markets, we can observe high magnitude of
variability. Probably, this is a manifestation of the under developed market
infrastructure and the lack of communication infrastructure between the markets.

6.2 Teff price linkage across markets
The strength of price linkage across different markets on Teff at whole sale price level is
measured using correlation coefficients and the results are given in Annex 3- Annex 5.
The wholesale Teff price correlation coefficients matrix reveals that all correlations
ECEA-Economic Analysis

Page 22

across markets for white Teff, mixed Teff and red Teff were statistically significant at a
probability of 1%. The spatial correlation coefficient for white Teff was greater than 0.80
in all of the 153 cases and greater than 0.90 in 146 of 153 cases. Similarly, for mixed and
red Teff the spatial correlation coefficient were greater than 0.80 in all of the cases and
greater than 0.90 in 124 of 136 cases for mixed Teff and in 99 of 105 cases for red Teff.
Therefore, the wholesale Teff price correlation coefficient matrix indicates that there
were very strong linkages among the prices across the markets for the three different
types of Teff.
For white Teff and mixed Teff, it was observed that Ambo, Debre Markos and Jimma have
strong price correlation (between 0.80 and 0.90) with Addis Ababa and Dire Dawa. A
Similar result is also observed for the other major towns (see Annex 3-Annex 5 for
details).

ECEA-Economic Analysis

Page 23

References
CSA Annual report of Agricultural sample survey
Mesfin Haile, Agajie Tesfaye, Lemlem Aregu and Eyob Mulat 2004, Market access versus
productivity: The case of teff, Holetta Agricultura l Research Center
Gebre Medhin Eleni Z. (2001), Market Institution, Transaction costs and Social capital in
the Ethiopian Grain Market. Research report No. 124, IFPRI, Washington, DC
Gebremeskel, D.T.S Jayne and J.D. Shafter 1998, Market Structure, Conduct and
Performance: Constraints on Performance of Ethiopian Grain Markets, working paper No.
8, Grain Market Research Project, Addis Ababa, Ethiopia
Asfaw Negassa 1998, Vertical and Spatial Integration of Grain Markets in Ethiopia:
Implications for Grain Market and Food Security policies, working paper 9, Grain Market
Research Project, Addis Ababa, Ethiopia

http://www.worldbank.org/html/cgiar/newsletter/sep97/10tef.html
http://www.hort.purdue.edu/newcrop/cropfactsheets/teff.html

ECEA-Economic Analysis

Page 24

Annexes
ANNEX 1. Zonal distribution of Teff production in the major producing regions
Region
Tigray

zone

cultivated

share

%

Production

share

Yield

Tigray

40033.08

1.56

511782.56

1.71

12.78

Central Tigray

69262.03

2.70

694607.38

2.32

10.03

6061.21

0.24

*

*

*

South Tigray

59695.43

2.33

672192.75

2.25

11.26

West Tigray

3690.37

0.14

45315.91

0.15

12.28

North Gonder

143897.66

5.61

1561611.93

5.22

10.85

South Gonder

126752.8

4.94

1167656.4

3.90

9.21

North Wollo

65744.04

2.56

861151.82

2.88

13.1

South Wollo

113828.84

4.44

1273186.14

4.25

11.19

North Shewa

138755.42

5.41

1680250.12

5.61

12.11

East Gojjam

221752.56

8.64

3018976.49

10.09

13.61

West Gojjam

142451.8

5.55

2181529.41

7.29

15.31

Waghemra

22220.17

0.87

207589.23

0.69

9.34

Awi

59111.09

2.30

586836.59

1.96

9.93

Orormia Zone

11843.87

0.46

135718.32

0.45

11.46

726.49

0.03

11177.69

0.04

15.39

West Wellega

30220.59

1.18

301896.54

1.01

9.99

East Wellega

71121.17

2.77

865751.26

2.89

12.17

66128.6

2.58

970097.94

3.24

14.67

Jimma

130698.04

5.10

1374056.13

4.59

10.51

West shewa

141809.87

5.53

1599282.42

5.34

11.28

North Shewa

113056.99

4.41

1100963.83

3.68

9.74

Argoba Special
Oromia

%

North West

East Tigray

Amhara

Area

Illubabor

ECEA-Economic Analysis

Page 25

Region

zone
East Shewa

Area

%

cultivated

share

Production

%
share

Yield

154506.02

6.02

1978854.34

6.61

12.81

91128.81

3.55

951920.38

3.18

10.45

West Hararghe

8465.36

0.33

106484.43

0.36

12.58

East Hararghe

3749.05

0.15

35507.49

0.12

9.47

Bale

40424.1

1.58

393329.24

1.31

9.73

Borena

2176.49

0.08

35645.63

0.12

16.38

126100.24

4.92

1535776.12

5.13

12.18

Guji

10667.31

0.42

58912.04

0.20

5.52

Kelem

10926.13

0.43

103668.12

0.35

9.49

Horoguduro

70296.51

2.74

895868.97

2.99

12.74

West Arsi

11341.39

0.44

104855.93

0.35

9.25

Matakel

13868.57

0.54

164678.95

0.55

11.87

Assosa

3682.95

0.14

26030.61

0.09

7.07

373.13

0.01

2785.42

0.01

7.47

Gurage

22097.6

0.86

235880.61

0.79

10.67

Hadiya

43847.85

1.71

424651.19

1.42

9.68

Tembaro

10878.83

0.42

94144.52

0.31

8.65

Wolayita

22557.96

0.88

175408.98

0.59

7.78

6521.52

0.25

88773.95

0.30

13.61

Sheka

780.37

0.03

6099.07

0.02

7.82

Kaffa

28883.98

1.13

280139.53

0.94

9.7

Gamo Goffa

29593.13

1.15

343453.97

1.15

11.61

Bench Maji

7460.78

0.29

90046.72

0.30

12.07

Arsi

South west
shewa

Benshangu
le-Gumz

Mao Komo
SNNPR

Kembata-

South Omo

ECEA-Economic Analysis

Page 26

Region

zone

Area

%

cultivated

share

Production

%
share

Yield

Yem Special

6783.02

0.26

54464.57

0.18

8.03

Amaro Special

4025.98

0.16

40654.1

0.14

10.1

879.84

0.03

5369.42

0.02

6.1

2031.74

0.08

15856.48

0.05

7.8

Special

1377.51

0.05

14163.17

0.05

10.28

Dawro

11143.72

0.43

89510.83

0.30

8.03

Basketo Special

2592.86

0.10

28832.68

0.10

11.12

Konta Special

5331.85

0.21

46458.35

0.16

8.71

15673.59

0.61

163582.24

0.55

10.44

8665.82

0.34

93164.59

0.31

10.75

29,929,234.99

98.59

11.67

Burji Special
Konso Special
Derashe

Silitie
Alaba Special
National

2,565,155.22

Source: 2007/08 annual agricultural sample survey, CSA

ECEA-Economic Analysis

Page 27

ANNEX 2. Average Price, Standard deviation and Coefficient of variation for markets
in Ethiopia at wholesale price level (Monthly data from July 2006 to June2008)

Market Place
Addis Ababa
Ambo
Assela
Bahir Dar
Bale Robe
Debre Birhan
Diredawa
Dessie
Debre Markos
Debre zeit
Gonder

Average Price
Standard Deviation
Coefficient of
(Birr/Quintal)
(Birr/Quintal)
Variation
White Mixed Red White Mixed Red White Mixed Red
499
463 372 133.19
127.9 110.7
26.7
27.6 29.78
465
446
84.54
108.8
18.2
24.4
484
442 400 117.58
113.8 102.3
24.3
25.7 25.57
447
413 389
89.15
87.92 87.44
19.9
21.3 22.46
417
137.9
33.11
500
476 390 126.37
121 121.2
25.3
25.4 31.11
503
467 427
84.27
147.5 135.8
16.8
31.6 31.77
490
453 398 132.91
129 108.4
27.1
28.5 27.23
457
412 331
97.95
73 66.76
21.4
17.7 20.15

519
468

434 380

131.16
100.26

100.4 90.48

25.3
21.4

478
449
93.88
90.86 19.6
484
439 393 103.63
102.7 89.02
21.4
533
447 395 125.89
116.7 110.8
23.6
478
428 374
131.4
112.7 101.7
27.5
438
408 367 133.83
119.5 103.6
30.6
491
462 366 108.27
103.9 113.5
22.1
451
412
- 126.02
115.5
27.9
517
467 391 121.93
123.9 115.7
23.6
483
442 386
113
111
106
23
26.2
21.7 22.9
Source: These statistics computed based on EGTE monthly data.
Hossana
Jimma
Mekele
Nazareth
Nekempt
Shashamene
Woliso
Ziway
Average
S.D

ECEA-Economic Analysis

23.1 23.78
20.3
23.4
26.1
26.4
29.3
22.5
28
26.5
25

22.63
28.06
27.19
28.24
30.97
29.58
27

Page 28

ANNEX3 - White Teff Wholesale Price Correlation Coefficients across Markets.
addis
ababa

ambo

assela

bahir
dar

debre
birhan

dire
dawa

dessie

debre
markos

debre
zeit

gonder

hossana

jimma

mekele

nazareth

nekempt

shashemene

woliso

ziway

1

.897(**)

.979(**)

.939(**)

.966(**)

.971(**)

.972(**)

.875(**)

.968(**)

.955(**)

.946(**)

.876(**)

.954(**)

.983(**)

.962(**)

.949(**)

.959(**)

.971(**)

ambo

.897(**)

1

.906(**)

.955(**)

.948(**)

.845(**)

.902(**)

.968(**)

.916(**)

.932(**)

.933(**)

.902(**)

.927(**)

.918(**)

.933(**)

.944(**)

.934(**)

.931(**)

addis ababa
assela

.979(**)

.906(**)

1

.965(**)

.984(**)

.988(**)

.980(**)

.917(**)

.983(**)

.989(**)

.959(**)

.935(**)

.982(**)

.989(**)

.971(**)

.980(**)

.978(**)

.985(**)

bahir dar

.939(**)

.955(**)

.965(**)

1

.977(**)

.963(**)

.953(**)

.964(**)

.974(**)

.977(**)

.944(**)

.950(**)

.962(**)

.971(**)

.940(**)

.981(**)

.967(**)

.969(**)

debre birhan

.966(**)

.948(**)

.984(**)

.977(**)

1

.986(**)

.985(**)

.952(**)

.985(**)

.988(**)

.965(**)

.949(**)

.990(**)

.985(**)

.984(**)

.984(**)

.982(**)

.987(**)

dire dawa

.971(**)

.845(**)

.988(**)

.963(**)

.986(**)

1

.982(**)

.874(**)

.992(**)

.977(**)

.980(**)

.895(**)

.981(**)

.989(**)

.972(**)

.959(**)

.969(**)

.991(**)

dessie

.972(**)

.902(**)

.980(**)

.953(**)

.985(**)

.982(**)

1

.899(**)

.981(**)

.964(**)

.939(**)

.919(**)

.980(**)

.985(**)

.975(**)

.959(**)

.965(**)

.975(**)

debre markos

.875(**)

.968(**)

.917(**)

.964(**)

.952(**)

.874(**)

.899(**)

1

.930(**)

.953(**)

.922(**)

.942(**)

.934(**)

.914(**)

.925(**)

.963(**)

.939(**)

.925(**)

debre zeit

.968(**)

.916(**)

.983(**)

.974(**)

.985(**)

.992(**)

.981(**)

.930(**)

1

.972(**)

.942(**)

.947(**)

.978(**)

.990(**)

.967(**)

.967(**)

.983(**)

.979(**)

gonder

.955(**)

.932(**)

.989(**)

.977(**)

.988(**)

.977(**)

.964(**)

.953(**)

.972(**)

1

.968(**)

.950(**)

.979(**)

.975(**)

.965(**)

.991(**)

.974(**)

.982(**)

hossana

.946(**)

.933(**)

.959(**)

.944(**)

.965(**)

.980(**)

.939(**)

.922(**)

.942(**)

.968(**)

1

.924(**)

.952(**)

.952(**)

.969(**)

.966(**)

.952(**)

.974(**)

jimma

.876(**)

.902(**)

.935(**)

.950(**)

.949(**)

.895(**)

.919(**)

.942(**)

.947(**)

.950(**)

.924(**)

1

.961(**)

.936(**)

.932(**)

.942(**)

.964(**)

.949(**)

mekele

.954(**)

.927(**)

.982(**)

.962(**)

.990(**)

.981(**)

.980(**)

.934(**)

.978(**)

.979(**)

.952(**)

.961(**)

1

.983(**)

.982(**)

.969(**)

.987(**)

.985(**)

nazareth

.983(**)

.918(**)

.989(**)

.971(**)

.985(**)

.989(**)

.985(**)

.914(**)

.990(**)

.975(**)

.952(**)

.936(**)

.983(**)

1

.970(**)

.968(**)

.982(**)

.992(**)

nekempt

.962(**)

.933(**)

.971(**)

.940(**)

.984(**)

.972(**)

.975(**)

.925(**)

.967(**)

.965(**)

.969(**)

.932(**)

.982(**)

.970(**)

1

.961(**)

.978(**)

.975(**)

shashemene

.949(**)

.944(**)

.980(**)

.981(**)

.984(**)

.959(**)

.959(**)

.963(**)

.967(**)

.991(**)

.966(**)

.942(**)

.969(**)

.968(**)

.961(**)

1

.963(**)

.976(**)

woliso

.959(**)

.934(**)

.978(**)

.967(**)

.982(**)

.969(**)

.965(**)

.939(**)

.983(**)

.974(**)

.952(**)

.964(**)

.987(**)

.982(**)

.978(**)

.963(**)

1

.979(**)

ziway

.971(**)

.931(**)

.985(**)

.969(**)

.987(**)

.991(**)

.975(**)

.925(**)

.979(**)

.982(**)

.974(**)

.949(**)

.985(**)

.992(**)

.975(**)

.976(**)

.979(**)

1

**. Correlation is significant at the 0.01 level (2 tailed)

ECEA-Economic Analysis

Page 29

ANNEX 4 - Mixed
addis
ababa

Teff Wholesale Price Correlation Coefficients across Markets

ambo

assela

bahir
dar

debre
birhan

dire
dawa

dessie

debre
markos

gonder

jimma

mekel e

nazareth

nek empt

shashem ene

woliso

ziway

1

.986(**)

.979(**)

.954(**)

.967(**)

.967(**)

.975(**)

.906(**)

.964(**)

.955(**)

.889(**)

.936(**)

.866(**)

.977(**)

.943(**)

.976(**)

.970(**)

.986(**)

1

.974(**)

.933(**)

.957(**)

.952(**)

.972(**)

.899(**)

.964(**)

.954(**)

.888(**)

.915(**)

.817(**)

.973(**)

.936(**)

.962(**)

.957(**)

.979(**)

.974(**)

1

.972(**)

.986(**)

.984(**)

.979(**)

.925(**)

.976(**)

.954(**)

.946(**)

.952(**)

.898(**)

.981(**)

.970(**)

.992(**)

.983(**)

bahir dar

.954(**)

.933(**)

.972(**)

1

.984(**)

.974(**)

.950(**)

.964(**)

.974(**)

.958(**)

.927(**)

.963(**)

.949(**)

.970(**)

.972(**)

.976(**)

.969(**)

debre birhan

.967(**)

.957(**)

.986(**)

.984(**)

1

.995(**)

.977(**)

.952(**)

.988(**)

.967(**)

.935(**)

.972(**)

.924(**)

.985(**)

.985(**)

.982(**)

.981(**)

.967(**)

.952(**)

.984(**)

.974(**)

.995(**)

1

.976(**)

.952(**)

.985(**)

.980(**)

.932(**)

.985(**)

.920(**)

.977(**)

.987(**)

.976(**)

.989(**)

dessie
debre
markos

.975(**)

.972(**)

.979(**)

.950(**)

.977(**)

.976(**)

1

.902(**)

.964(**)

.955(**)

.904(**)

.943(**)

.859(**)

.971(**)

.948(**)

.971(**)

.968(**)

.906(**)

.899(**)

.925(**)

.964(**)

.952(**)

.952(**)

.902(**)

1

.960(**)

.934(**)

.913(**)

.940(**)

.929(**)

.953(**)

.959(**)

.934(**)

.911(**)

gonder

.964(**)

.964(**)

.976(**)

.974(**)

.988(**)

.985(**)

.964(**)

.960(**)

1

.979(**)

.930(**)

.956(**)

.896(**)

.984(**)

.981(**)

.972(**)

.970(**)

hossana

.955(**)

.954(**)

.954(**)

.958(**)

.967(**)

.980(**)

.955(**)

.934(**)

.979(**)

1

.909(**)

.937(**)

.863(**)

.978(**)

.952(**)

.959(**)

.969(**)

jimma

.889(**)

.888(**)

.946(**)

.927(**)

.935(**)

.932(**)

.904(**)

.913(**)

.930(**)

.909(**)

1

.898(**)

.873(**)

.929(**)

.923(**)

.958(**)

.928(**)

mekel e

.936(**)

.915(**)

.952(**)

.963(**)

.972(**)

.985(**)

.943(**)

.940(**)

.956(**)

.937(**)

.898(**)

1

.914(**)

.948(**)

.981(**)

.943(**)

.950(**)

nazareth

.866(**)

.817(**)

.898(**)

.949(**)

.924(**)

.920(**)

.859(**)

.929(**)

.896(**)

.863(**)

.873(**)

.914(**)

1

.909(**)

.920(**)

.913(**)

.897(**)

nek empt

.977(**)

.973(**)

.981(**)

.970(**)

.985(**)

.977(**)

.971(**)

.953(**)

.984(**)

.978(**)

.929(**)

.948(**)

.909(**)

1

.967(**)

.981(**)

.974(**)

shashem ene

.943(**)

.936(**)

.970(**)

.972(**)

.985(**)

.987(**)

.948(**)

.959(**)

.981(**)

.952(**)

.923(**)

.981(**)

.920(**)

.967(**)

1

.955(**)

.963(**)

woliso

.976(**)

.962(**)

.992(**)

.976(**)

.982(**)

.976(**)

.971(**)

.934(**)

.972(**)

.959(**)

.958(**)

.943(**)

.913(**)

.981(**)

.955(**)

1

.979(**)

ziway

.970(**)

.957(**)

.983(**)

.969(**)

.981(**)

.989(**)

.968(**)

.911(**)

.970(**)

.969(**)

.928(**)

.950(**)

.897(**)

.974(**)

.963(**)

.979(**)

1

addis ababa
ambo
assela

dire dawa

hossana

**. Correlation is significant at the 0.01 level (2-tailed).

ECEA-Economic Analysis

Page 30

ANNEX 5 - Red Teff Wholesale Price Correlation Coefficients across Markets
addis
ababa

assela

bahir
dar

bale
robe

debre
birhan

dire
dawa

dessie

debre
markos

gonder

jimma

mekel e

nazareth

nek empt

shashem ene

1

.960(**)

.938(**)

.926(**)

.962(**)

.964(**)

.951(**)

.942(**)

.954(**)

.874(**)

.947(**)

.880(**)

.955(**)

.945(**)

.977(**)

assela

.960(**)

1

.985(**)

.935(**)

.988(**)

.990(**)

.981(**)

.969(**)

.986(**)

.958(**)

.966(**)

.936(**)

.989(**)

.982(**)

.992(**)

bahir dar

.938(**)

.985(**)

1

.930(**)

.974(**)

.984(**)

.985(**)

.942(**)

.982(**)

.947(**)

.967(**)

.963(**)

.984(**)

.979(**)

.974(**)

bale robe
debre
birhan

.926(**)

.935(**)

.930(**)

1

.954(**)

.960(**)

.954(**)

.937(**)

.952(**)

.869(**)

.963(**)

.889(**)

.924(**)

.955(**)

.950(**)

.962(**)

.988(**)

.974(**)

.954(**)

1

.991(**)

.988(**)

.962(**)

.987(**)

.938(**)

.974(**)

.938(**)

.986(**)

.977(**)

.992(**)

dire dawa

.964(**)

.990(**)

.984(**)

.960(**)

.991(**)

1

.989(**)

.956(**)

.990(**)

.945(**)

.989(**)

.939(**)

.985(**)

.987(**)

.994(**)

dessie
debre
markos

.951(**)

.981(**)

.985(**)

.954(**)

.988(**)

.989(**)

1

.944(**)

.979(**)

.925(**)

.982(**)

.964(**)

.991(**)

.983(**)

.980(**)

.942(**)

.969(**)

.942(**)

.937(**)

.962(**)

.956(**)

.944(**)

1

.971(**)

.923(**)

.944(**)

.860(**)

.949(**)

.963(**)

.965(**)

gonder

.954(**)

.986(**)

.982(**)

.952(**)

.987(**)

.990(**)

.979(**)

.971(**)

1

.942(**)

.971(**)

.926(**)

.977(**)

.981(**)

.987(**)

jimma

.874(**)

.958(**)

.947(**)

.869(**)

.938(**)

.945(**)

.925(**)

.923(**)

.942(**)

1

.922(**)

.885(**)

.944(**)

.945(**)

.935(**)

mekele

.947(**)

.966(**)

.967(**)

.963(**)

.974(**)

.989(**)

.982(**)

.944(**)

.971(**)

.922(**)

1

.935(**)

.973(**)

.978(**)

.967(**)

nazareth

.880(**)

.936(**)

.963(**)

.889(**)

.938(**)

.939(**)

.964(**)

.860(**)

.926(**)

.885(**)

.935(**)

1

.957(**)

.922(**)

.919(**)

nekempt

.955(**)

.989(**)

.984(**)

.924(**)

.986(**)

.985(**)

.991(**)

.949(**)

.977(**)

.944(**)

.973(**)

.957(**)

1

.976(**)

.982(**)

shashemene

.945(**)

.982(**)

.979(**)

.955(**)

.977(**)

.987(**)

.983(**)

.963(**)

.981(**)

.945(**)

.978(**)

.922(**)

.976(**)

1

.978(**)

ziway

.977(**)

.992(**)

.974(**)

.950(**)

.992(**)

.994(**)

.980(**)

.965(**)

.987(**)

.935(**)

.967(**)

.919(**)

.982(**)

.978(**)

1

addis ababa

**. Correlation is significant at the 0.01 level (2-tailed).

31

ziway