Determinants of Farmers’ Preference to Coffee Market Outlet in Jimma Zone: The Case of Coffee Potential Districts

Abstract

Background and objective: Choice of a marketing outlet is one of the key ingredients to successful marketing of both agricultural and non-agricultural products. The aim of the study was to show determinants of coffee farmers’ preference of coffee market outlet in Southwest Ethiopia/Jimma zone. Methodology: Cross-sectional data was collected from 156 randomly selected rural households of three Districts. Structured questionnaire prepared for household heads were filled by the help of selected and well trained enumerators. The study used multinomial logistic regression model to determine factors determining coffee market outlet preference. Results: Informal buyers, formal traders, brokers and cooperatives were four main coffee market outlet exist on the study area. Multinomial logistic regression result shows that number of extension visit has positive and significant effect on the preference of formal red coffee markets and transport cost to the main market has negative and significant impact on formal traders preference relative to informal buyers. Distance to cooperatives has negative and significant effect on the preference of farmers for cooperatives and number of visit by extensionists has negative and significant effect on formal dry coffee markets and brokers and positive and significant effect on cooperatives as compared to informal market.Recommendations: Based on the main findings the study recommended extensionists to aware coffee producers to choose good market outlets such as cooperatives for efficient and profitable marketing of coffee and recommended the government to increase the access of cooperatives and the improvement of the infrastructure to enhance coffee marketing.

Keywords: Marketing outlet, Cross sectional, Multinomial logistic, Formal traders, Informal buyers, Brokers