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Samuel Diro Chelkeba
Solomon Aseffa Ayele
Beza Erko Erge
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Samuel Diro Chelkeba
Solomon Aseffa Ayele
Beza Erko Erge
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Journal of Agricultural Economics and Rural Development

Trends and determinants of coffee commercialization among smallholder farmers in southwest Ethiopia

Samuel Diro Chelkeba*, Solomon Aseffa Ayele, Beza Erko Erge

*Ethiopian institute of agricultural research; Jimma agricultural research center, Jimma, Ethiopia.

Jimma University; college of business and economics, Jimma; Ethiopia.

Ethiopian institute of agricultural research; Jimma agricultural research center, Jimma, Ethiopia

Accepted 14 July, 2016.

Citation: Chelkeba SD, Ayele SA, Erge BE (2016). Trends and determinants of coffee commercialization among smallholder farmers in southwest Ethiopia. Journal of Agricultural Economics and Rural Development, 3(2): 112-121.

Copyright: © 2016 Chelkeba et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are cited.

Abstract

Transforming agricultural output from subsistence to commercial based is being the crucial option for many agriculture dependent developing countries. This study was aimed to assess coffee commercialization trends and factors that affect coffee commercialization level. Primary data was collected from 156 households of three coffee potential districts of Jimma zone through personal interviews. Descriptive statistics and econometric models were used to analyze the data. The result of the study revealed that the mean coffee consumption level was 21.6 % and the overall mean commercialization level was 68 % which is higher at Manna district (74 %). The results of Tobit model also shows distance to main market and distance to marketing cooperatives, transport cost and land allocated for other crops affects level of coffee commercialization negatively and significantly. However, total land holding of the household head, coffee price and volume of coffee produced affects level of commercialization positively and significantly. It is recommended support towards developing institutional sectors like marketing cooperatives and improving physical access to market places could yield positive results towards coffee commercialization by smallholder coffee producers.

Key words: Coffee, Commercialization, Marketing cooperatives, Subsistence, Tobit model