Trend Analysis of Agricultural Cooperatives in Coffee Marketing

Case of Oromia Coffee Farmers’ Cooperative Union, Oromia, Ethiopia

Authors

  • Asfaw Temesgen Wallaga University

Keywords:

Coffee market, cooperative union, export marketing, coffee farmers, Value chain

Abstract

This study is intended to examine the status of Oromia Coffee Farmers’ Cooperative Union (OCFCU) in coff e export marketing and to predict coffee export of the union in the intended years. Descriptive statistics was used for analyzing market share and trends of coffee market of the OCFCU. Linear regression (Least Square method) w s used to predict the trend projection of coffee export by the union. The result indicates that OCFCU has taken part in coffee marketing value chain by providing extension services to improve coffee productivity and quality; collec ing, processing and exporting coffee. In the years 2001 to 2015 OCFCU exported 56,603.19-ton coffee which was grown from 126 to 11,187.0 ton (mean 4,270.8 ton per annum). This accounts for 49.84% average growth rate of exported volume and obtain 3.479% market share from Ethiopia and 69.73% from part exported by Cooperative Unions. Based on the trend analysis of coffee export of OCFCU for the last 15 years, it was predicted for the coming ten years that the OCFCU will collect, process and export 157, 041.77 tons of coffee that was estimated to increase from 11,187.0 ton in 2015 to 18,213.94 ton in 2025.it is predicted to obtain total sale value of 11, 91 billion birr that is projected from 810.62 million in 2015 to 1.4 billion birr in 2025 with 3.75% average annual growth rate. From the result it is concluded that the union significantly taking part in coffee market value chain by collecting coffee from producers through member cooperatives in Oromia, processing, packing and exporting it. Furthermore, it is predicted that the coffee export volume and value of cooperative union will continue to grow by 2.6 and 2.4 folds respectively for the years 2016-2025 as a result millions of member small coffee farmers are continuing to be benefitted.

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Author Biography

Asfaw Temesgen, Wallaga University

Department of Cooperatives, College of Business and Economics Wollega University P.O. Box 596 Nekemte

References

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Published

28.09.2016

How to Cite

Temesgen, A. (2016). Trend Analysis of Agricultural Cooperatives in Coffee Marketing: Case of Oromia Coffee Farmers’ Cooperative Union, Oromia, Ethiopia. Journal of Science, Technology and Arts Research, 5(3), 67–76. Retrieved from https://journals.wgu.edu.et/index.php/star/article/view/328

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Section

Original Research

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Plaudit