Investgation Of Factors Affecting Coffee Export Performance:The Case Of Limmu Coffee Farmers'Cooprative Union

Abstract

This study focused on assessing the factors affecting coffee export performance in the case of Limmu coffee farmers’ cooperative union (LCFCU), Jimma Zone. The research employed descriptive research design and followed mixed (quantitative and qualitative) approaches. The research used simple random probability sampling to fix the cooperative unions and select informants’ who participated in the questionnaire format and purposive sampling, to determine top managements who involved in the interview climate. Data were gathered from 102 questionnaire respondents and 10 management interviewees selected from five cooperative unions and employed relevant document investigation to triangulate data. Questionnaire was employed to gather quantitative data and interview was used to maintain management interview. The data obtained through different tools was organized in logical manner so as to help answer the basic research questions. The obtained data over all indicators were complementing /supporting/ each other to reveal the existing coffee export performance trends of the cooperative enterprises in the study area. The results showed that export marketing performance of Limmu coffee farmers cooperative union was critically hampered by technology innovation (firm characteristics); challenges related to export barriers and low management’s international experience (management characteristics); lack of production that attracts customers, lack of positive comment about the product from buyers, and critical problems related to good agronomic practice that supports certification (good agronomic practices); lack of specialty grade export coffee maintained through processing firm and get premium price (processing quality); the legal and political environment that has negatively affected the union’s coffee export performance, the socio-cultural environment that has negatively affected the union’s coffee export performance and the export market barriers that has adversely impacted the enterprise’s export performance (foreign market characteristics); and export market barriers existing in the exporting country (domestic market characteristics).Finally, the research pointed out some recommendation points: the top executive of Limmu coffee farmers’ cooperative union requires to effectively and efficiently employ working strategies pertinent to produce quality product through strategic decision making that help to effectively boost export marketing performance of the cooperative union .