Review on Structure-Conduct-Performance of Coffee Market in Ethiopia

Abstract

Coffee is the most important produced and traded commodities in the world. It serves as means of livelihood for majority smallholder farmers in Africa as well as Ethiopia. It is aimed to review structure-conduct-market performance of coffee market in Ethiopia. In this regard, Structure-conduct-performance is the common methods of analyzing marketing systems. The coffee market structure was characterized by high barrier to entry, differentiated product and dominated by a few traders. It mainly falls under weak and strong oligopoly market. The markets conduct review shows pricing and purchasing strategies was mainly determined by traders. The majority of the profit margin goes to private exporters and producers acquired least profit margin. Therefore the review recommended that a means of making the market more competitive should be created to enhance bargaining power of smallholder coffee producers and letting them acquire high share of profit margin from participation in coffee marketing.  

Keywords: Coffee, Ethiopia, Structure conduct performance

DOI: 10.7176/FSQM/86-04

Publication date: April 30^th 2019