Factors Affecting Farmers’ Coffee Market Outlet Preference in Southwest Ethiopia: Survey Result of Coffee Potential Districts of Jimma Zone

Abstract

The aim of the study was to show determinants of coffee farmers’ preference of coffee market outlet in south west Ethiopia/Jimma zone. Cross-sectional data was collected from 156 randomly selected rural households of three districts. The study used multinomial logistic regression model to determine factors affecting coffee market outlet preference of coffee producers. Informal buyers, formal traders, brokers and cooperatives were four main coffee market outlet exist on the study area. 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 markets. Based on the main findings, the study recommends extensionists to aware coffee producers to choose good market outlets such as cooperatives for efficient and profitable marketing of coffee and suggests the government to increase the access of cooperatives and the improvement of the infrastructure to enhance coffee marketing.

Keywords: Broker, cooperative, Cross sectional, Formal trader, Informal buyer, Marketing outlet, Multinomial logistic