Factors Affecting Coffee Marketing Activities: The Case Of Oromia Coffee Farmers Cooperative Union, Gelan town, Oromiya Regional State, Ethiopia

Abstract

This marketing system that could enhance producers’ share of market price due to insufficient movement of agricultural cooperatives to develop bargaining power of producers through farmer’s direct market strategy. Enabling rural poor people to have better access to markets is one of the key strategic thrusts within its broader objective of reducing rural poverty (IFAD, 2003) study carried out to determine the factors affecting coffee marketing in Oromia Coffee Farmers’ Cooperative Union. The data collected through semi-structured questionnaire, interview and focus group discussion was used. The sources of the information primary cooperatives societies that affiliated to the union. For the study purpose, four primary cooperative societies affiliated to the union selected based on purposive sampling and the numbers of members of four primary 350 in number. Yamane’s formula of sample determination would have adopted and the samples of 187 respondents are determined in which the respondents selected in a both Non –probability and probability sampling techniques was used. The researches design researcher used descriptive and explanatory research design. The qualitative data analyzed using content analysis while the quantitative data analyzed quantitatively used descriptive statistics such as frequency, percentages, inferential statistics such as correlation and multiple regressions using statistical package for social science (SPSS) version 20. The result of study revealed that Production, Finance, Government regulation, Infrastructure, Price and Quality affect coffee market were found to be statistically significant at significance level 5%. The model summary of regression analysis result revealed that from the change in the dependent variable (coffee marketing), 85% of it was explained by the independent variables considered in study namely, production, finance, government regulation, infrastructure, price and quality. From the result conclusion drawn by researchers were-although farmers were engaged coffee production, financing coffee, government regulation, infrastructure, price decision and quality controlling shows union not solved for members of primary cooperative. From the result recommendation given researchers were-the Union has to work on coffee production, finance, government regulation, infrastructure, price and quality required more attention by union.