Analysis of the Coffee Industry in Ethiopia

Analysis of the java Industry in EthiopiaSUMMARYEthiopia is the home and basis of inherent resources and hot chocolate Arabica diversities. It relies greatly on export of key agricultural crossroads in which cocoa is the bailiwick and important crop. The country has a reputation of high quality drinking chocolate berry tree over due(p) to its branded varieties of deep brown. But, most of the coffee bean berry call forthers in Ethiopia atomic number 18 non suitable of getting the benefits connected with doing and trade of a finest quality product due to deed, institutional and organisational supports, storage and functioning of domestic and multinational merchandise related constraints (ODI, 2009).Smallholder riseers argon the main(prenominal) producers of coffee by bestow 95 sh are of the total coffee come forwardput in Ethiopia. However, the incompatible challenges faced by coffee farmers chiefly affect their livelihood and caution them to engage active ly in the process of coffee exertion and merchandise which lead to a significantly decreases in the countrys abroad exchange. This suggests that it is very critical to lease and monitor systematically the production and merchandising systems in all coffee growing playing fields of the country for the sake of be after and designing suitable research and develop workforcet interventions that are applicable to the limited systems.Thus, the purpose of the study is to analyze the trends of coffee sector in Ethiopia in general and gene station baseline information on production and merchandise of coffee in Mana woreda of Jimma zone, one of the coffee growing areas of Ethiopia in particular by concentrating on parameters like production, marketplaceing, institutional and organizational support conditions and challenges and opportunities of the farm households.To achieve the objectives of the study, Mana woreda was purposefully selected. A two stage random take in technique was applied for the study as there were two consume units, i.e., Kebeles (Peasant Associations) and farm households. In the first stage, four kebeles were selected randomly out of 27 kebeles in the study woreda. In the second stage, a total of 90 farm households were selected randomly from all of the four kebeles to generate a socio-economic class round primary data on coffee production and marketing by means of semi-structured questionnaire. The required secondary data were in any case serene from relevant data sources. Microsoft Excel 2010 was utilize to enter the row data and exported to the statistical software called SPSS version 20 to analyze the data for descriptive statistics method of analysis.The socio-economic characteristics of the sample respondents in the study area revealed that majority of coffee farm households were males (93.3%) whereas the remaining were females. The age of the farm household head ranges from 20 to 68 years. The median(a) age of the coffee far mers was 42.23 years. About 90 percent lie within the most actively working age sept (18-64 years). 92.2% of the farm households were married while the rest were widowed and single. The average family size of it of the farm households was 5.44. The distribution of household heads by their level of culture showed that nigh 42.2% of farm household heads were illiterate and 27.8% can read and write. 24.4% had formal education up to grade 8, while 5.6% attained secondary education and above. An average dependency ratio of farmers is 0.71, which is check off compared to the national average, i.e., 0.97.All of the farm households in the study area were practicing factory farm activities, where cultivation of coffee took the major share. Coffee production (forest, semi-forest and tend coffee) is the main means of livelihood. Grain production ( mainly Maize, Sorghum and Teff), Fruit production (especially Avocado) and Off-farm activities are also reported as the another(prenominal) means of income for the farm households. The coffee farmers have an average of 21 years of farming experience (ranging from 4 to 38 years) in coffee production. The majority of the sample farmers (82.2%) own the drop between 1 ha and 3 ha. The average land holding in the study area was 1.84 ha per household (min. 0.5 ha and max. 6 ha) which is two times to a greater extent than the national average (0.8 ha). About 67.8 percent of smallholder farmers acquired their land through inheritance from their families and 27.8 percent has got the land officially from the governed kebeles (Peasant Associations) through redistribution.The study found out that crop production is the primary farming activity in the study area where cultivation of coffee took the major share. Coffee production (forest, semi-forest and garden coffee) is the basis of livelihood for the farmers. Farm households allocate larger portion of their land for coffee production and used inter-cropping method of producing c offee with other crops mainly for expending purposes and some of the crops helped to produce more coffee by inspection and repair as shade trees. Majority of the farmers owned forest and semi-forest coffees. Only 10 percent of the farmers cultivate garden coffee. The average yield of produced coffee was 13.33 cwt/ha which is larger than the national average (7.2 quintal/ha). All of the farmers produced two red cherry tree and sun dehydrated coffee. The proportion of sun dried coffee (63%) is higher than that of the red cherry (37%).Farm households used divergent sources of tire out for their coffee farm work (such as land clearing, position and ingathering) in the study area. The major source of labor was family labor (75%). tralatitiousistic form (Debo) and hired labor were also the other sources. The entire coffee farmers were not used in constitutional fertilizer, and chemical inputs like insecticide or pesticide for their coffee production. But majority (64.4%) of the farmers used traditional or organic manure instead of chemical inputs. This confirms that the type of coffee produced in the study area was naturally organic. They also have a habit of pose new coffee seedlings which are provided from their own nursery, local market and woreda ARDO. Coffee is harvested at the full maturity stage and stripping method of harvesting is mainly used since majority of the farmers owned forest/semi-forest coffees. Coffee farmers used traditional and temporary storage houses with poor storage facilities which affected negatively the inherent qualities and appearance of the green coffee.Results about coffee marketing showed that coffee growers, local collectors, wholesalers and cooperatives participated in coffee marketing channels with an availability of market places near to villages and with easy road access and proximity to larger towns. Farmers dispense their coffee in the form of red cherry during harvesting and in sun-dried form after storing for s ome months for cooperatives, local collectors and wholesalers. The values of red cherry and sun-dried coffee in the market were not stable and fluctuate from time to time. Meanwhile, the trend of coffee market is apparently decreasing across time as a result of this fluctuation and volatility of coffee price. Cooperatives purchase the majority of the red cherry coffee and give better coffee prices more than the local traders. Farm households were forced to sell their coffee produce at a lower price to local traders who merely set the price when cooperatives are inactive in the market due to absence of collective bargaining power and escape of price and market information. The principal salute of the farmers was cost of transporting coffee to the market followed by labor cost.Regarding with institutional and organizational support schemes for coffee farmers, denial to formal denotation is predominant for majority of the farm households despite the closeness to financial institu tions in the study area due to restricted criteria or inappropriate give terms (related to grace period, duration of payment and collective eligibility), high rate of interest and inaccessibility of identification agents. The extension services provided for farmers from DAs were not adequate and effective enough to support farmers in order to elicit their coffee production and marketing activities because of famines of technical expertise, facilities as well as ineffective means of communication.Primary cooperative associations which deal with coffee are found in the study area and most of the coffee farmers (85.6%) are members. The members are mainly benefited from cooperatives in getting better price than other traders, accessibility to sell their coffee products, transportation, provision of credit and training services. Thus, cooperatives are playing a vital role in improving the production and marketing problems of coffee farmers.Coffee farm households in Mana woreda faced both production and marketing problems. One of the most customary production problems encountered by coffee farmers was coffee berry disease. This is exacerbated since all of the farmers are producing organic coffee which excludes the use of fungicides and other chemicals. High number of old trees death and shortage of shade trees absence of improved technologies or traditional way of production inadequacy of appropriate extension services with qualified experts change of withstand condition scarcity of land and shortage of improved seeds and its higher cost were the other production constraints faced by the coffee farmers. The most frequent marketing problem was coffee market price volatility. Transport facilities lack of price and market information absence of collective bargaining/price setting lack of access and availability of credit middle men interference theft and traditional storage facility and packing materials were also the subsequent marketing problems of coffee farme rs in the study area.Despite the challenges, there are also opportunities for coffee farmers in Mana woreda. Suitable agro-ecology, accumulated traditional or ancestral knowledge of farmers with experience better access to nucleotide and proximity to local market places variety of coffee types suitable for roast industries cheap provision of labor growing domestic coffee consumption and a scope of value added niche product are the main opportunities.Therefore, relevant development programs that participates the farming community under the prevailing farming system should be planned and effectively executed. A number of actions subscribe to to be undertaken in order to promote the development of coffee market chain. This particularly includes, capacity building, technological applications and improved extension services. Institutional and organizational support condition is also a key to improve the coffee production and marketing constraints of farm households. In this ground, emp hasis should be presumption to expand transportation system and storage facilities, offering formal credit and effective extension services and strengthen cooperative associations to support farmers in coffee production and marketing.