Determinants the Value Chain of Coffee Product in Primary Coffee Producing Cooperatives in Dale Woreda of Sidama Regional State, Ethiopia

Abstract

This study was to identify the price in the coffee value chain, to assess the competition in the coffee value chain, to investigate the market information in the coffee value chain, to examine the roles of chain actors in the coffee value chain, to identify the infrastructure problem in the coffee value chain of primary coffee-producing cooperatives in dale woreda, Sidama Region. To achieve the objective of this study, the researcher employed a descriptive research design. Primary and secondary sources of data were used. The primary data was collected through a self-administrated questionnaire for 208 respondents selected using the Simple Random Sampling technique in selected 5 primary coffee producers farmers and interviews were also conducted with cooperative officials and executives of the selected public cooperatives in dale woreda. Qualitative and quantitative research approaches were employed. Descriptive statistics and inferential statistical methods were employed to analyze the data. Then, the multiple linear regression model result showed that out of five variables incorporated in the model, four variables like price, the role of chain actor, market information, infrastructure problem have a positive and statistically significant influence on value chain effectiveness. On the other hand, one remaining variable which is competition has a positive and statistically insignificant effect on the value chain effectiveness of coffee cooperatives in dale woreda. Based on findings, the researcher forwarded possible recommendations to coffee cooperatives in dale woreda to improve timely information, fair price, actor’s role, and infrastructure problem more than current status since one unit increase in the variables leads to value chain effectiveness.