It is commonly felt that the liberalisation of commodity markets has increased the exposure of commodity producers to price volatility. Using a generalized autoregressive conditional heteroskedasticity framework, we make a distinction between the predictable and unpredictable components of...

The volatility of coffee prices exposes coffee producers to price risk. Price risk is one of many risks faced by commodity producers in developing countries. Coffee is widely traded in the international commodity derivative markets. This offers scope for coffee producers to manage their price...

Purpose This paper aims to estimate the welfare effects for Ethiopian coffee producers from eliminating coffee price volatility. Design/methodology/approach To estimate volatility, the generalised autoregressive conditional heteroskedasticity technique is applied to monthly coffee prices in...