Determinants of Market Supply of Coffee (Coffee Arabica) The Case of Arsi Zone, Oromiya Region, Ethiopia

Abstract

This study aimed to analyze factors affecting market supply of coffee (coffee Arabica) in selected districts of Arsi zone, Oromia, Ethiopia with specific objectives of with specific objectives of characterizing the production and consumption level of coffee and analyzing the factors affecting quantity supplied of coffee of the study area. Purposive sampling, stratified sampling and simple random sampling techniques were used to select the representative coffee producers. Descriptive analysis and Multiple Linear Regression Models (ordinary least squares (OLS) estimation techniques were used to analyze the data. The findings of econometric result revealed that, access to transport facility, access to credit, land size of coffee, distance to the nearest market center, family size and prevalence of disease and insects were determinants for quantity supplied of coffee that affect significantly. Policy and post-harvest management developing and improving infrastructure (roads), facilitating extension services is recommended to enhance the market supply of coffee in the study area.