Assessment of Challenges and Opportunities of Value Addition in Sidama Coffee Value Chain: The Case of Dale District, Southern Ethiopia

Abstract

Coffee has a great social, cultural and livelihoods importance for the majority of Ethiopian population and to the national economy as well. This paper focuses on assessment of challenges and opportunities of value addition in sidama coffee value chain. Key Informant Interview (KII), Focus Group Discussion (FGD) and surveys were conduct to collect qualitative and quantitative data from key stakeholders in the coffee value chain. Qualitative data analysis methods and statistical analytic techniques were used to analyze the data. The survey result identified land, disease and climate change as the three major constraints for coffee value addition. In contrary the three major opportunities identified were demand for coffee, extension services & government policy. These results were further complemented by findings of the FGD and KII which identified dependence on rain-fed agriculture, disease, and lack of expert in the coffee sector as the major constraints and availability of trainings, increase in the price of coffee, the availability of Awada research center as opportunities.  Disease was identified as the major constraint in the process of value addition, which calls the focus of research centers on releasing new varieties and tackle the problem. In addition the dissemination of modern input technologies should be focused to increase productivity. Effort should also be made to strengthen farmers’ cooperative and encourage collective action of farmers to lower transaction costs to access inputs.

Keywords: Coffee/ Value chain/ /value addition/Sidama