Value chain Analysis of Coffee (coffee Arabica): the case of Arsi zone, Oromiya National Regional State of Ethiopia

Abstract

This study aimed at value chains analysis of coffee in selected districts of Arsi zone, Oromia, Ethiopia with specific objectives of identifying the major coffee value chain actors, their roles and functions, identifying the existed coffee marketing channels, analyzing the market performance of actors (benefit distributions) and identifying the constraints and opportunities along the coffee value chain. Descriptive statistics, value chain approaches, market performance analysis were used to analyze the data. The value chain analysis revealed that, input suppliers, producers, primary cooperatives, collectors, wholesalers, exporters and consumers were the main coffee value chain actors. The share of margin in coffee value chain revealed that, producers (51.9%) take the line share followed by exporters (21.26%) and wholesalers (10.31%) while primary cooperative and local collectors are poorly positioned in the coffee value chain in the study area. Constraints like price fluctuation, shortage of market information, higher input cost, limited extension services, long distance to the market, diseases and pests, poor linkage with value chain actors, using inappropriate drying methods and lack of packaging materials are major challenges in coffee value chain in the information, training on pre and post-harvest management developing and