Abstract:
Access to market in the form of different channels for coffee farmer is crucial for
exploiting the potential of coffee production to contribute to increased cash income of
rural households. Identifying factors affecting market channel decision is therefore
important.
The study was conducted on three woredas of Jimma zones namely Manna woreda,
Gomma woreda, and Limmu kossa woreda where coffee is the main means of livelihood
of the society. Cross-sectional data was collected from the survey of rural households
living in the randomly selected three potential woredas of the zones. A total of 156
respondents were included in the survey. Statistical package for social science SPSS-16
was used for data analysis. Both descriptive and econometric methods has employed for
the quantitative data analysis. Determinants of farmers’ preference of coffee market
outlet analyzed using multinomial logistic regression model.
The result of the logistic regression model revealed that factors that determine farmers’
preference of coffee market outlets are farming experience of farmers, age of head, price
of coffee, distance to the nearest village market, distance to the nearest main market, and
distance to cooperatives and transportation cost to the main market. The result shows
that distance to main market and transportation cost positively and significantly related
to preference to cooperatives. Since distance from the farm to market significantly
determines farmer preference of coffee market outlet decisions, the study recommends
government should ensure developing markets for coffee farmers’ and establishment of
cooperatives within reach. Poor infrastructure was noted to be a hindrance in marketing
of coffee and this study recommend the improvement of the infrastructure to enhance
coffee marketing.
