Determinants of Marketing Channel Choice in Coffee Marketing: Evidence from Southern Ethiopia

Aravind Soudikar, Dr. Asfaw Wassie

Abstract


This studyaimed at assessing factors determining coffee farmers’ marketing channel choices in SNNPRS, Ethiopia with the specific objectives of identifying various marketing channels available for coffee marketing; describing the basic characteristics of coffee producers in study area and identifying factors determining coffee farmers’ marketing channel choices. Multi-stage random sampling techniques were applied to select 382 smallholder coffee farmers for interview schedules from purposively selected 3 Coffee producing kebeles/peasant associations/ in the Woreda/District. The result of multinomial logistic regression model revealed that thechoice of both private (formal and informal) market outlets was significantly affected by the age of household, land/farm size, membership to cooperatives, and access to credit services compared to base (coffee cooperatives) category. Indeed, the choice of formal private coffee market outlet was significantly affected by access to  market information and training compared to cooperative market outlet. Finally, the study confirmed the continued viability of coffee marketing cooperatives as suppliers of coffee in the study area.Therefore, policies aiming at increasing farmer’s access to modern coffee marketing system, provision of long term credit facilities, relevant trainings and timely market information are recommended to increase the income of coffee farmers.

Keywords: Coffee, Coffee farmers, Market outlet choices, Multinomial logistic model


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ISSN : 2251-1555