Coffee Price Risk in the Market: Exporter, Trader and Producer Data from Uganda

Coffee is Uganda`s most important export good. Post-liberalisation, increased competitiveness has increased the extent to which the coffee price fluctuates throughout the marketing chain. Using original survey data collected at all levels of the value chain this paper examines which actors are most affected by coffee price risk. Coffee farmers are found to be most affected by coffee price risk and willingness to pay for price insurance among farmers is calculated using data on farmers` risk preferences and risk perceptions. Substantial demand for price insurance was found, as was wide variation in willingness to pay. Variation in perceptions of price risk among farmers is examined as a means to understanding this varying demand for insurance.