Determinants of Smallholder Farmers’ Participation in Certified Coffee Value Chain: Evidence from Members of Coffee Cooperatives in Dale District, Sidamo, Southern Ethiopia

Abstract

The objective of this study was to identify determinants of smallholder farmers’ level of participation in certified coffee value chain. The study used household survey from 155 sample smallholder coffee farmers.  The econometric model (Truncated regression model) analysis identified that smallholder farmers’ level of participation (measured by the amount of coffee supplied as certified coffee) is positively affected by sex of the household head (in favor of male), proportion of land allocated for coffee, trust in cooperative management, annual coffee production & agricultural cash income, while age, education level, and distance from the coffee marketing centers have a negative influence. On the other hand, the effect of utilizing of credits and the farmers’ perception on the benefits of participation was found to be statistically insignificant. Addressing the infrastructure problems and promoting improved agronomic practices to boost better quality coffee in rural villages can have a positive effect to increase national certified coffee supply. Along with these strengthening the management of coffee farmers’ cooperatives to emplace transparent systems should be critically addressed.

Keywords: Coffee certification, smallholder farmers, cooperatives, Ethiopia