Coffee Marketing Chain Analysis Towards Export Performance in Ethiopia
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Date
2025-09-23
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Publisher
AAU
Abstract
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