Abstract:
Coffee is a critical agricultural commodity in East African countries, significantly con
tributing to their economies by generating foreign exchange, creating employment op
portunities and supporting the livelihoods of millions of smallholder farmers.Despite
its importance, the region’s coffee sector faces numerous challenges, including fluctu
ating international prices, climate change impacts, limited access to quality inputs,
policy and trade barriers, and economic instability. While various researchers have
explored aspects of coffee price in East Africa, there has been no comprehensive study
utilizing panel data to analyze these dynamics across multiple countries over an ex
tended period. This study addresses this gap by developing a statistical model to
analyze the evolution of coffee price in East African countries from 1996 to 2022.
Data were collected from FAOSTAT and the World Bank, and a panel data analy
sis model was employed. The findings reveal that regional trade agreements play a
vital role in enhancing coffee price and trading in the region. Additionally, factors
such as exchange rates, fertilizers, inflation rates, agricultural land, and foreign di
rect investment are significant determinants of coffee price. The study also identifies
that agricultural employment and inflation are currently under performing relative
to their potential contribution to the global market, indicating substantial room for
improvement. The objectives of this research are to identify key determinants of cof
fee price ,To evaluate the economic implications of green coffee price in East Africa
using panel data analysis techniques and provide actionable policy recommendations.
The insights gained from this study aim to inform policymakers and stakeholders in
developing strategies to promote sustainable coffee price, enhance economic stability,
and improve the livelihoods of coffee farmers in East Africa
