Assessment on performance of small scale agro industries: implications of coffee processing industries: a case study of bench maji zone, south west Ethiopia

Abstract

The overall aim of the study was to examine the productivity performance of coffee processing industries. Methodologically, total sample size was 294 respondents. To select these sample size from ten coffee processing industry systematic sampling methods were used. for data collection: interview, questionnaire and focus group methods were applied. Moreover, for data analysis both descriptive and econometric methods were used. Furthermore, productivity and logistic models were used to analyze the study. Therefore, the study finding showed that employees working in industries were did not have got incentives. Furthermore, concerning about total productivity of coffee supplied to industry and its output minimum, maximum and average productivity are: 0.32, 0.44 and 0.37respectively. From productivity comparison between cherry coffee (wet method of processing) and dry coffee (dry method of processing), dry method of processing is more productive than wet method of processing. Therefore, it is strongly profitable, hiring employees those have good education background level or providing continuous on work training for workers those working in coffee processing industries by collaborating with local government, non-governmental organization and coffee processing industry owners.