Coffee Market Chain Analysis in Manna District Jimma Zone, South Western Oromia, Ethiopia

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Osman Rahmeta
Shimelis Zewudie

Abstract

This study was aimed at analyzing the coffee market chain in Mana district, Jimma Zone, Oromia region, South Western Ethiopia. The study was a cross sectional study. Both primary and secondary data sources were used. Mana district and two coffee cooperative associations were selected purposively based on their coffee production potentials. A total of 123 coffee producers, cooperative members, were selected randomly as the subject of the study. Interview schedule was used to collect the primary data. Both descriptive statistics and linear regression were used to analyze the data. The study revealed that the major actors in the coffee market chain in the study area are coffee
producers, coffee producers’ cooperatives, local coffee collectors, wholesalers, coffee producers’ union, and exporters. It was found that the coffee producers earn more gross profit when they sell to cooperative than when they sell to the local collectors and wholesalers.The ordinary least square analysis with R2= 0.878 pointed out that land allotted for coffee production, selling price, experience in coffeeproduction and access to market information were found to have a significant impact on the supply of coffee to the market.The study also pointed out that, the major constraints facing the coffee producers were shortage of finance and lack of price choice for the producers, lack of timely market information and inconsistent market price, respectively. Finally, improving the constraints would enhance the cooperatives’ members’ benefits.

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How to Cite
Rahmeta, O., & Zewudie, S. (2020). Coffee Market Chain Analysis in Manna District Jimma Zone, South Western Oromia, Ethiopia. Ethiopian Journal of Applied Science and Technology, 10(2), 46-52. Retrieved from http://journals.ju.edu.et/index.php/ejast/article/view/2156
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Articles
Author Biographies

Osman Rahmeta, Jimma University College of Agriculture and Veterinary Medicine

Jimma University College of Agriculture and Veterinary Medicine

Departmenet of Agricultutural Economics and Extensions

Shimelis Zewudie, Jimma University Business and Economics College

Jimma University Business and Economics College
Department of Management