Coffee Marketing Performance Analysis in South West Ethiopia

The study was designed to analyze the performance of coffee marketing in Bench Maji zone with the objectives of identifying the existing coffee marketing channel,determining marketing margins, examining price integration and identifying the major coffee marketing constraints.Coffee producers’collectors wholesalers and coffee producers wholesalers are the principal coffee marketing channels in the study areas. Results of market margin analysis revealed that coffee trading is highly profitable at the wholesale level, while producers share as a percentage of wholesale prices is low as compared to other regions’ farmers in the country. Market integration analysis indicates that the local and central markets are integrated in the long-run.The hypothesis of full market integration, however, is rejected which indicates,there is no efficient use of available information by the participants and thus markets are not fully integrated.land scarcity,diseases,Poor market information,credit services,poor road,lack of drying materials,presences of illegal traders, poor quality coffee&inadequate capital were identified as a major coffee production and marketing constraints in the study area.