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.