Value Chain Analysis of Coffee in Jimma Zone of Oromia Regional State, Ethiopia

Abstract

A study entitled value chain analysis of coffee was undertaken in Jimma zone, Ethiopia with the aim of identifying the value chain actors, describing value additions, and estimating the share value of respective actors along the chain. 138 farmers from six kebeles of two districts were sampled using a multi-stage stratified random sampling technique. Other than farmers, respondents from cooperatives, unions, suppliers, large state growers, exporters, domestic wholesalers, domestic retailers, domestic consumers and value chain enablers were also considered. Data were collected from primary source through semi- structured interview schedule, checklists, and focus group discussion; and from secondary sources. Descriptive method of data analysis was used to analyse the data. The value chain analysis result revealed that direct actors identified in coffee value chain were input suppliers, smallholder growers, large scale private and state farms, cooperatives/unions, suppliers, exporters, domestic wholesalers, retailers, and consumers and assumed different functions along the value chain (engaging directly in production, processing/value addition, trading and marketing). Other indirect enabling institutions charging different services were also identified. The computation of value share for participating actors indicated that the contribution of value addition by the smallholder farmers if participated in drying would be increased from that of red cherry selling due to the better relative price offered for dry cheery coffee compared. Furthermore, farmers are better to be encouraged in drying coffee (value additions) as an alternative for better value share contribution, price, and income generation.

Keywords: Value Chain, Value Chain Map, Value Addition, Value Chain Enabler