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Table 11 Maize import parity price calculation, 2005–2017

From: The impact of production shocks on maize markets in Ethiopia: implications for regional trade and food security

Description Maize import parity (2005–2016) Outlook period Scenario 2 (a drought)
Currency 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017
US (Gulf)_FOB, Maize (US No 2, Yellow) $/ton 98 121 163 222 165 185 292 298 260 193 170 159 187 187
Ocean freight (US-Djibouti) $/ton 42 37 68 70 58 57 48 48 51 52 51 45 45 45
Insurance – 0.3% of FOB $/ton 0.30 0.36 0.49 0.67 0.50 0.56 0.88 0.89 0.78 0.58 0.51 0.48 0.56 0.56
CIF at Djibouti port $/ton 141 159 231 293 224 243 340 347 312 246 222 205 233 233
Effective Exchange rate (EER) ETB/$ 10.4 10.5 11 12.5 15.5 19.3 19.5 20.7 21.5 22.7 23.4 24.5 22.9 22.9
CIF at Djibouti port in ETB ETB/t 1470 1675 2566 3659 3465 4695 6657 7173 6725 5588 5188 5036 5334 5334
Import tariff (5%) ETB/t 73.5 83.7 128.3 182.9 173.2 234.8 332.8 358.7 336.2 279.4 259.4 251.8 266.7 266.7
Port handling ETB/t 233 233 233 233 233 233 233 233 233 233 233 233 233 233
Import parity_Djibouti ETB/t 1777 1992 2928 4075 3871 5163 7222 7765 7294 6100 5681 5521 5834 5834
Distribution costs
Transport costs from Djibouti port to Addis Ababa (864 km) ETB/t 380 380 380 437 527 394 431 435 448 447 427 440 440 440
Unloading ETB/t 32 32 32 32 32 32 32 32 32 32 32 32 32 32
Import parity_Addis Ababa ETB/t 2189 2404 3340 4544 4430 5589 7685 8232 7774 6579 6140 5993 6306 6306
Addis Ababa_Maize (white) $/ton 169 169 194 426 288 184 268 281 310 253 223 229 250 250
Addis Ababa_Maize ETB/t 1760 1782 2152 5333 4452 3557 5247 5802 6674 5751 5203 5616 5733 9201
  1. Notes: The cost estimates for port handling, inland transport costs, and unloading are based on USAID Bellmon study (USAID, 2010); freight costs are collected from US wheat associates (www.uswheat.org)