The Performance of Coffee Marketing in Ethiopia: The Case of IIIubabor and Jimma Zones
No Thumbnail Available
Date
1996-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
During the era of Derg, there had Deen state monopoly in
the coffee trade. the state coffee markecing parastatal
(Ethiopian Coffee Marketing Corporation ) wa s ope rating based on
fixed price arrangements . Once the state parastatal is in place
entry t o the coffee trade was difficult . The system has also
reduced competition among traders. The long term effect of such
a move was .suppression of producer incentive and production.
Hence it was apparent to the transitional government of
Ethiopia to liberalize the coffee market at all levels.
The main objectives of this study are: i ) to describe the
coffee marketing system in illubabor and Jimma zones, ii} to
assess the structure of coffee marketing in the study area ,
iii} to measure the efficiency of the coffee marketing system,
and iv} to assess the effect of the reform on performance of
coffee marketing and to provide basic information which assist
policy analysis. The analysis was carried out by using S-C-P
approach.
The results show that the liberalization policy adopted
has achieved certain improvements in the structure and
efficiency of the coffee trade. The reform have lifted the
licensing barrier and reduced tax levied on coffee trade and
license issuance fees. It has also abounded the restrictions
imposed on licensing. The reform have also resulted in the free
movement of prices. The bivariate correlation analyses shows
that prices in the selected markets are highly integrated with
the central market. The Timer's indices and the co integration
test also show the same result.
There are, however, a lot of shortcomings in the structure
and inefficiencies in the coffee marketing . There are high
market concentration, lack of capital and credit, and
restrictions on areas of operation. In some markets there is
also poor market information flow among traders. In view of the
efficiency, there appears to be significant seasonality and
inter - temporal price inefficiency.
Description
Keywords
Coffee Marketing, Jimma Zones