Factors affecting small scale coffee producer households well-being in Ethiopia: the case of oromia regional state, jimma zone of manna woreda

Abstract

Ethiopian economy is mostly dominated by agricultural sector like the economies of most developing countries. Coffee, tea, spices contribute around 33.6 % of total export earnings of US$2.9 billion, of which coffee alone contributed $866 million (30.2%) in 2017. Income from exported coffee in 2017was increased by 20% when compared with that of 2016. Although, coffee takes the lion‟s share in Ethiopia‟s GDP particularly with an upward movement from year to year during the last five years, there is no measurable impact on small scale coffee producer households‟ well-being. The aim of the study was to examine the factors affecting the wellbeing of small-scale coffee producers and evaluate their effect among coffee producers in Manna District of Jimma Zone, Ethiopia. The study was conducted using cross-sectional data collected in 2017/18 from a sample of 203 households selected through a multi-stage sampling approach. Data analysis was conducted using logistic regression model. The results indicate that from explanatory variables used to analyse factors affecting smallholder coffee producer households well-being; which examined by using well-being indicators variables living standards, health and education. The result indicates that educational level of house wife and household head, total land size, land for crop production, producing coffee as a primary product, fair-trade membership status, access to financial institution, access to health station, access to primary school, coffee selling place and access to agricultural extension workers have a significant impact on cumulative household well-being status. However, the impact level and magnitude is different. According to the logistic regression result, producing coffee as primary product accounts the lion share. Households those who produce coffee as a primary product have better well-being more likely by 0.68(68%) when compared to those who do not produce coffee as primary product. Households those who have better access to financial institution have chance to achieve better wellbeing more likely by 0.15(15%) when compared to those who do not have access to financial institutions. And the probability of households those are fair-trade certified members to achieve better well-being increases by 14% when compared to non-members. Moreover, when there is change in coffee selling place from cooperative to informal local traders and individual exporters, the probability of households to achieve better well-being reduces by 16% and 15%, respectively. Receiving fair price, access to right market, infrastructure (access to road) and access to health station have a positive impact on well-being of households. In contrast to this, access to school, cooperative membership status and having extension worker (DA) have a negative relationship with well-being of households in the study area. Coffee productivity and land for coffee production are insignificant in affecting wellbeing of the small scale coffee producer households. The results suggest that there is a need to gear policies towards enhancing coffee production to be a primary product, supporting them to have financial institutions, rightaccess to market, fair price for their coffee and also to increase efficiency of farmers so as to enhance living standard, better education and health which take them too better wellbeing.