Practices And Chalenges Of Illegal Trade Of Coffee In Gomma Woreda, Oromia Regional State,south Wast Ethiopia

Abstract

The study was conducted to assess the practices and challenges of illegal trades of coffee in Goma Woreda. This study is important to increase the size of coffee to be exported through tackling the problems to be exerted in minimizing it. That raises hard currency of the nation. Also woreda’s annual revenue can be increased. The research design preferred for this study is descriptive and explanatory because it the research finds whether the problems exist or not. It is descriptive because it tries to describe the extent and existence of the illegal trade of coffee and to distinguish the major problems related with the increment of illegal trade of coffee in the study area. The study was used quantitative approach to gather the coffee stockholders’ opinions. Questionnaire was prepared in the form of close-ended. The prepared questionnaires have been disseminated to249 coffee stockholders and 210 of them filled and returned. Also 12 coffee stockholders have been interviewed and formal discussion was carried out with 31 coffee producers. For this study the target populations were coffee producers, coffee processors and coffee suppliers governmental offices of coffee stockholders in Gomma Woreda and Agaro Town. Agricultural and Rural Development Office of Gomma Woreda is legal responsibility in the coffee production and coffee market value chain. For the study the samples of Coffee producers, collectors, suppliers and processors were selected by stratified sampling method. According to Kothari (2005), a total of 323 respondents were fixed proportionally as a sample for this study. After the data were collected the collected data were compiled, edited and coded into categories using numeric values after assessing its consistency and relevance to the study. Then, the data was analyzed quantitatively with appropriate tools of data analysis. Analysis of quantitative data was achieved using Statistical Package for Social Sciences, SPSS. correlation analysis model was employed on this study. According to the finding of this study, practices and challenges of illegal trades of coffee are price difference, market situation poor treatment for stockholders and lack of application of the law in Goma Woreda. The way of controlling and directing mechanism by now is very poor in the study area. All processed coffee are not supplied to ECX especially sun dried coffee because of illegal activities. This creates a loss for the country which share the advantages which the country has got from coffee industry. Thus, the government should have to enforce to strengthen the legal controlling system to tackle this great loss.