Determinants of Farmers Preference to Coffee Market Outlet The Case of South West Ethiopia, Jimma Zone

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.