Factors Affecting Value Chain Performance Of Coffee: The case Of Sheka Zone, South West Ethiopia
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Date
2019-05
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Addis Ababa University
Abstract
The study was conducted to analyze and explain factors affecting value chain performance of coffee in Sheka Zone, South west Ethiopia. Sheka coffee is definitely among the most distinguished coffee varieties grown in South Western Ethiopia, a region known for its fine coffees. Towards this end, this descriptive and explanatory study utilized a combination of multistage, census woredas survey to quantitatively assess the supposed relationship between the dependent and independent variables. Primary data was collected by distributing a total of 197 questionnaires and collecting 178 questionnaires with 90.35 % response rate. Secondary data was gathered for sales volume and grade of coffee from 2009 – 2018. The study employed quantitative and qualitative analysis. Findings of the study identified that the finance, access to market, access to information, government policy and the physical environment in place for the subsector are contributing to the performance of coffee value chain in terms of coffee quality grade, sales volume and value addition. Finally, constraints in efficiency of value chain of coffee, the role of government policy in creating favorable production and marketing environment to value chain actors by alleviating the problems related with access to market ,access to information and physical environment, support of financial institutions in encouraging coffee related investments, services provided by market institutions (Ethiopian Commodity Exchange) in alleviating obstacles in the value chain performance are areas that need greater attention in order to robust coffee value chain performance in Sheka Zone’s.
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Keywords
Coffee, Value,, Chains, Performance,, Factors