IFPRI’s research in Ethiopia dispelled the commonly believed causes of cereal price hikes: cross-border trade, increased demand for consumption, diversification into high-value crops, and speculative hoarding. In 2006, Ethiopian cereal prices were rising sharply and threatened food security, especially for net cereal purchasers. To develop research-based evidence to inform policy responses to the price spikes, IFPRI conducted a set of studies that examined agricultural production, markets, and prices within the country.