Internationale Zeitschrift für Wirtschafts- und Managementwissenschaften

Assessing the Opportunity and Challenges of Ethiopia Commodity Exchange for the Members of Agricultural Product Export

Abstract

Habtamu Abebaw Worku

The main objective of the study was to assess the opportunities and challenges of Ethiopia commodity exchange for the members of the agricultural product export. This study used both primary and secondary sources of data. This study employed descriptive type of research and it employed a census research strategy to capture the relevant information from the respondent. The target population of the study was ECX members particularly the exporters. In this study the researcher used both semi structured questionnaire and unstructured interview. The collected data was analyzed using descriptive statistics. The result of the study indicated that ECX members particularly exporters have got the opportunity of market access, increment of sales volume and profit through ECX. In contrary, unsatisfied with communication and transportation service; lack of complete, accurate and accessible international marketing information, lack of adequate warehouses, grading and sampling system, higher penalty cost for not withdrawing commodities from the warehouses on time were found to be some of challenges of ECX for the members of the agricultural product export in ECX. Finally, to enhance the contribution of ECX and to alleviate the challenges of ECX for the members, it is recommended that ECX has to: - provide complete, accurate and easily accessible marketing information; rent or build adequate warehouse. It also advised that quality grading specialists of the exchange should treat all ECX members equally & build the elements of physical infrastructure that support commodity exchange.