Determinants of Coffee Supply Chain Management in Jimma Zone

Abstract

The main objective of this study was to investigate the determinants of coffee supply chain management performance in Jimma Zone. In this study, both quantitative and qualitative datasets were collected and analyzed concurrently with more priority is given to quantitative data and the data were described side by side in a discussion based on each theme. Among 670 target populations of the study, 250 participants (135 farmers of cooperative members and 115 Cooperative leaders) were taken as sample respondents of the study. The study was employed simple random sampling technique and purposive sampling technique to select the respondents. The researcher was used questionnaire and interview to collect data in the study. Interviews were held with 9 farmers of cooperative members and 12 Cooperative leaders. The collected data was analyzed using both descriptive statistics such as: percentages, mean, weighed mean, standard deviation and inferential statistics such as: independent sample t-test, Pearson correlation coefficient, and multiple regression analysis used by computing the data on SPSS version 20. The finding of the study showed that the primary cooperative and cooperative union works towards Capacity building, infrastructure and information sharing was low. On the other hand, results also reveal that the primary Cooperative and Cooperative Union works towards Supplier and Customer Relationship was moderate. The result of study showed that, infrastructure factors and supplier - customer relationship have significant and high correlation with Supply Chain Management Performance. On the other hands, Capacity Building and Information Sharing have significant and moderate correlation with Supply Chain Management Performance. Furthermore, the finding of the study showed that, infrastructure factors and supplier - customer relationship variables have strongest determinants of supply chain management performance. On the other hands, Capacity Building and Information Sharing variables have strong determinants of supply chain management performance. The researcher also recommended that the primary Cooperative and Cooperative Union should have to improve the level of integration and communication of information sharing system with their partners.