This course book is prepared by Haramaya University, Department of Agricultural Economics. It is prepared by a project called AgShare Pilot Project. The project was initiated by Michigan State University (MSU) and funded by Bill-Melinda Gates Foundation. The project was implemented in collaboration with various institutions, namely Michigan State University (MSU), Collaborative Master’s Program in Agricultural and Applied Economics (CMAAE), South African Institute of Distance Education (SAIDE), Open Education Resources (OER), and CMAAE member-universities (Haramaya University, Moi University, Makerere University).

It is quite obvious that in developing countries, the education sector suffers from serious shortage of teaching materials. Yet, the available materials virtually reflect just the context of developed countries. The assumption is that it is possible to adopt textbooks and other teaching materials prepared in developed countries and build them into the context of developing countries. Nevertheless, this tradition of relying on materials prepared elsewhere, however well-designed, has never improved effective learning simply because real, effective teaching-learning cannot take place under a decontextualized situation.

Cognizant of this fact, the participants of this project prepared this course book in order to demonstrate that it is possible to prepare teaching materials that foster learning and teaching in context, particularly that of Sub-Saharan African countries--chiefly Eastern, Central, and Southern Africa. Each module of the course attempts to customize theories and concepts in a way that it would reflect the context of these developing countries. It is intended to help graduate students of agricultural economics and the related fields. The underlying premise is that such teaching materials enable graduate students to analyze and solve practical problems and, hence, reconstruct knowledge in its context.

In general, this module is prepared for the course Agricultural Marketing and Price Analysis’. This course is currently being offered in Master’s programs of both Haramaya University School of Agricultural Economics and Agribusiness and Moi University Department of Agricultural Marketing and Cooperatives. In this module there are about six topics. (AgEc541), focus will be made on two case-studies conducted on a selected commodity in order to explore the real context of agricultural marketing in a developing country.

The first topic of this module is: The Economic Role of Prices and Approaches to the Study of Agricultural Market Organization. Here the allocative, rationing and distributive roles of prices and the different approaches to the study of agricultural marketing are presented and discussed. In addition, case study reports and video footages that demonstrate coffee marketing in Ethiopia are included.

The second topic deals with: Theoretical Models of Market Structure and Performance. It covers the different types of market structure including perfect competition, monopoly, monopolistic competition and oligopoly. The third topic deals with: Spatial and Intertemporal Market Linkages. The fourth topic presents: Horizontal and Vertical Integration of Agricultural Industries. The fifth topic presents: Market Organizational Forms Unique to Agriculture. In addition, case study reports and video footages that demonstrate vegetable marketing in eastern Ethiopia are included.