Vertical Integration of Coffee Export Practices, Challenges and Performance of Coffee Exporters in Ethiopia
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Date
2022-06
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Addis Ababa University
Abstract
In 2017, the Ethiopian Coffee and Tea Authority amended the coffee marketing system that enables exporters to buy coffee directly from suppliers outside the Ethiopian Commodity Exchange floor. And this study was conducted to asses the vertical integration of coffee export practices and the challenges of coffee exports in Ethiopia. Primary data was collected from 151 coffee exporters that used vertical integration marketing systems to source coffee. For data analysis, the researcher used descriptive and inferential statistics methods. Accordingly, the overall findings showed that coffee export vertical integration practices played a role in improving coffee export performance, but the forward and backward vertical integration practices were expected to improve the performance. Improving information sharing practices and capacity building activities in supply chain actors were considered as enablers in this study. And the researcher also found contract default, price volatility, a low level of production and credit constraints as challenges in coffee export vertical integration practices. And overall, the researchers of this study recommended all partners in the vertical integration practices to work closely to improve the coffee export performance as intended in the new marking system for vertical integration.
Key wards: Vertical Integration, Forward vertical integration, Backward vertical integration, Export performance.