Opportunities and challenges of coffee marketing: Evidence from Gibe Woreda, Hadiya Zone, South Ethiopia

This study was initiated to opportunities and challenges of coffee marketing in Gibe district, Hadiya zone of Southern Nations Nationalities and peoples’ region. The nature of the product on one hand and the lack of marketing system on the other hand have resulted in low producers’ price and hence low benefit by the producers. Data was collected from 150coffee producing households and 25 traders through structured interview, focus group discussion, key informant interviews, as well as field observation. Structure, conduct and performance approach were used to analyze coffee market. The market actors in the study area were producers, local collectors, retailers, processors and consumers. Among the six marketing channels identified, the producers –retailers – consumers’ channel was found the first important in terms of volume of coffee transacted while the producer-local collector-consumer marketing channel was identified as the least. The result of the multiple linear regression reveals that the supply of coffee to the market is significantly affected by price of the product, quantity produced, access to extension service, age and access to market information were significant influence on marketable supply of coffee. The favorable weather condition, suitable land, water accessibility and current demand for the products and comprehensive policy of government for the development of the product are one of the opportunities for enhancement of the product in the area. There is information asymmetry between the coffee producers and traders in the study area. However, traditional ways of production, poor post product handling, product quality problems, and lack timely distribution of market information, transportation problems and lack of access to formal credit were the main challenges to increase market supply in the area. Thus, it is recommended that stockholders should give due attention in convey reliable and timely market information in order to increase bargaining power of market actors and efficient marketing of coffee in the study area. published by the Journal of Biodiversity and Environmental Sciences | JBES