Coffee Value Chain in Ethiopia: A Case Study

Abstract

Coffee is a bulging commercial crop ever growing up in Ethiopia to export for gaining comparative advantageous of price and income. It also plays a pivotal role to supporting livelihoods of most of the people particularly poor within the territory of the country. It is obvious that the farmers are facing numerous problems encountered with coffee value chain for marketing of their products in marketing channel. The main objective of this research is to analyzing the factors influencing coffee cooperatives effectiveness in coffee value chain of Ilubabor Zone in Oromia Region of Ethiopia. Research is carried out with methodology of data analysis based on descriptive statistics and econometrics model. A logistic regression method is used to analysis the effectiveness of coffee cooperatives in coffee value chain and multi -collinearity regression analysis is employed to determine the correlation between explanatory variables. It is found that despite of inactiveness of cooperatives the coffee value chain is playing an important role to facilitating marketing of coffee in Ethiopia. The research is an important perspective to measuring emerging problems associated with value chain and its solutions with valuable recommendations.