Coffee Marketing Chain Analysis Towards Export Performance in Ethiopia

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Date

2025-09-23

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AAU

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Coffee exports significantly contribute to a country’s economic development through income generation, foreign currency earnings, and employment opportunities. For sustainable national economic growth, a strong export performance is essential. This study aimed to assess the key factors and actors influencing coffee export performance in Ethiopia. To achieve this, primary data were collected from 71 respondents using questionnaires, supplemented by interviews with 24 selected exporters to enrich the findings. The questionnaires were pre-tested on 9 exporters who were excluded from the final analysis. Both descriptive and inferential statistics, including multiple linear regression estimated by ordinary least squares and correlation analysis, were applied. A mixed-methods approach combining quantitative and qualitative techniques was employed, with explanatory research design supported by STATA software for data analysis. Descriptive statistics revealed that the roles of financial institutions, the Ethiopian Commodity Exchange, marketing channels, agricultural practices, government regulations, and marketing structures were perceived as weak, with mean scores below 3.40. All independent variables showed moderate and positive correlations with export performance. The regression model was validated through diagnostic tests, identifying heteroscedasticity, which was addressed using robust regression techniques. The analysis highlighted marketing channels as the most significant factor influencing Ethiopia’s coffee export performance. Key informants emphasized that enhancing domestic production, improving infrastructure, promoting quality and value addition, investing in agricultural technology, strengthening cooperatives, and expanding access to global markets are critical areas for government and institutional support. The study further recommends reforms in marketing structures and government policies to foster a transparent, competitive market environment and reduce entry barriers. These measures are vital to boosting coffee export performance and supporting Ethiopia’s economic development

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