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