This study conducted to analyse coffee value chain in Nensebo district of West Arsi zone. Nensebo district offers great potential forest coffee, largely untapped due to poor harvesting and post-harvest management and producers have no incentives to improve quality of coffee products through proper management practices. The study was to identify coffee value chains; describe the value additions of different actors in the coffee value chain and linkage of each actor, their functions and chain relationships. Examine marketing margins and performance along the coffee value chains in terms of income and social benefits, and examine factors that affect marketable surplus; and identify key constraints and opportunities in the coffee value chains. The study can generate valuable information on value chain analysis of coffee marketing would assist policy makers to make relevant decision to intervene in the coffee value chain and designing of appropriate policies and strategies development. Government and non-governmental organizations that are intervening though their programs in the development of coffee sub-sector would also benefit from the results of this study. The findings are useful

A study entitled value chain analysis of coffee was undertaken in Jimma zone, Ethiopia with the aim of identifying the value chain actors, describing value additions, and estimating the share value of respective actors along the chain. 138 farmers from six kebeles of two districts were sampled using a multi-stage stratified random sampling technique. Other than farmers, respondents from cooperatives, unions, suppliers, large state growers, exporters, domestic wholesalers, domestic retailers, domestic consumers and value chain enablers were also considered. Data were collected from primary source through semi- structured interview schedule, checklists, and focus group discussion; and from secondary sources. Descriptive method of data analysis was used to analyse the data. The value chain analysis result revealed that direct actors identified in coffee value chain were input suppliers, smallholder growers, large scale private and state farms, cooperatives/unions, suppliers, exporters, domestic wholesalers, retailers, and consumers and assumed different functions along the value chain (engaging directly in production, processing/value addition, trading and marketing). Other indirect enabling institutions charging different services were also identified. The computation of value share for participating actors indicated that the contribution of value addition by the smallholder farmers if participated in drying would be increased from that of red cherry selling due to the better relative price offered for dry cheery coffee compared. Furthermore, farmers are better to be encouraged in drying coffee (value additions) as an alternative for better value share contribution, price, and income generation.

In today's global market, quality is an order wining criteria. Quality of a cup of coffee depends on every step in the value chain starting from the crop including planting, harvesting, primary and secondary processing, marketing, and storing or transporting. Ethiopia, as a major producer and exporter of coffee, one fourth of its population depends on this sector. In this context, a minor improvement in the coffee supply chain would have significant socio-economic importance. This research aimed at analyzing the detail value chain of the coffee industry towards quality improvement and competitiveness in general. The outcome will help to design and implement interventions by the government and non-government organizations so that the benefits obtained form the sector could be maximized.

Exchange rate policies can have important implications on incentives for export agriculture. However, their effects are often not well understood. We study the issue of foreign exchange controls and pricing in the value chain for Ethiopia’s coffee - its most important export crop. Relying on unique pricing and cost data, we find that coffee exporters are willing to incur losses during exporting by offering high prices for coffee locally in order to access scarce foreign exchange. The losses in export markets are then more than recovered in importing, indicating rents - import parity prices are significantly lower than the prices charged for imported goods, so that profits on imports are much higher than the losses incurred in exporting. We further show that the high coffee wholesale prices are transmitted to farmers, so that they benefit from the rents downstream. These results suggest that a better exchange rate alignment to reduce the overvaluation of the local currency in this case would have a lower impact on export crop producer prices than typically is anticipated.

Master's Thesis from the year 2014 in the subject Agrarian Studies, grade: 5 (Excellent), Szent István University (Institute of Regional Economics and Rural Development), course: Rural Development and Agribusiness, language: English, abstract: The general objective of this paper is to analyze the trends of coffee sector in Ethiopia in general. Furthermore it wants to generate baseline information on production and marketing systems of the selected study area in particular by concentrating on parameters like production, marketing, institutional and organizational support and challenges and opportunities. Currently, Ethiopia contributes 3.6 percent of the total value and 3 percent of the total quantity of coffee traded to the global market, which leads the country to be the 10th largest exporter of coffee in the world and the first exporter in Africa. 40% of the total coffee production of Ethiopia is exported, which earns 33% of the overall value of agricultural goods exported and 24% of the whole export value of the country. Over one-third of the population living in the rural areas and over 15 million populations sustain their livelihoods and participated in coffee production. There are around one million coffee growers in the country. Coffee has been an important commodity which has got greater attention by the government of Ethiopia. It is the first cash crop that the Ethiopia Commodity Exchange (ECX) started trading operations in April 2008 in order to advance coffee markets in the country. High costs and high risks of transaction were the features of agricultural markets in Ethiopia before 2008, with only one third of the production reaching the market. Besides, smallholder farmers have little information about the market which limits them to sell their final products at the nearby market, deal with good prices as well as minimizing their market risk. Coffee market incompetence chiefly affect the income of coffee farmers and discourage them in the process of coffee production and marketing which lead to a significantly decreases in the country’s foreign exchange. This suggests that it is very critical to study and monitor systematically the production and marketing systems in all coffee growing areas of the country for the sake of planning and designing suitable research and development interventions that are applicable to the specific systems.