Effect of ECX’s Market Information Service on Smallholder Coffee Farmers’ Livelihood and Transaction Cost: The Case of Gedeo Zone, SNNPR

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title




The aim of the study was to examine EXC’s MIS service effect in coffee smallholder farmers’ livelihood improvement and transaction cost in Gedeo zone, SNNPR. To investigate the study, descriptive and explanatory (causal) research design and quantitative approach are used. Probability and nonprobability sampling techniques and multi-stage cluster sampling technique are used to collect cross sectional data from 287 smallholder farmers using structured questionnaire. The ECX MIS service users and nonusers are significantly differ in education level, number of children above 16 years of age, number of languages spoken, in their radio listening habit, annual production level, annual revenue and expenditure they spend in farm and harvesting seasons. Logistic model is used to explore factors influencing farmers’ usage of ECX MIS service and to estimate propensity score to match the covariates for ECX’s MIS service users and nonusers. The result showed that age, education level, mobile ownership, access to extension service and availability of electricity significantly influenced household decisions of ECX’s MIS service usage. Propensity score matching (PSM) was used to determine the impact of ECX’s MIS service on smallholder’s income and transaction cost. The study found out that ECX’s MIS users’ income is higher than the nonusers and ECX’s MIS users incurred higher transaction cost than the nonusers. Generally, the study found out that the net effect from using ECX’s MIS service is positive so that smallholder’s livelihood can be substantially improved with effective implementation of MIS services. Therefore, the study recommends ECX’s to look into its MIS implementation practice and correct any miss deeds that resulted in smallholder incurring higher transaction costs.



Livelihood, Transaction Cost