Tariku Teka Mekuria,
Kumilachew Alamerie,
Million Sileshi,
Abstract
This study investigates the factors influencing the market supply of coffee in various districts of the Gimbo District, Kaffa Zone, in Southwest Ethiopia. Coffee is Ethiopia’s most significant export crop, recognized for its extensive genetic diversity and its substantial contribution to the country’s GDP. Despite the district’s strong production capacity, the marketing structure remains predominantly traditional, compelling producers to sell through conventional channels that do not offer premium prices, thereby limiting market margins. The research utilized both secondary data from existing sources and primary data collected directly from respondents. In 2023, primary data was gathered from 200 coffee producers, 22 traders, and 22 consumers, while secondary data was sourced from local agricultural offices. The econometric analysis revealed four key factors that positively and significantly impacted market supply: the educational level of the household head, participation in coffee cooperatives, vehicle ownership, and the volume of coffee produced. Descriptive statistics, including means, standard deviations, frequencies, and percentages, were employed for the analysis. However, the distance to the nearest market had a statistically significant negative effect on market supply. Based on these findings, policy recommendations include expanding adult education programs to enhance farmers’ knowledge, promoting experience-sharing initiatives among coffee producers, strengthening farmers’ cooperatives, improving their financial capacity through the establishment of functional collection centers, and enhancing access to transportation services and infrastructure. Additionally, increasing productivity through improved extension services is crucial for enhancing the supply efficiency of the coffee sector. The quantity of coffee supplied to the market was significantly influenced by various factors, as demonstrated by the results of the Two-Stage Least Squares (2SLS) regression model. Previous studies have shown that the quantity of coffee produced positively affects market supply; specifically, an increase of one quintal in production leads to a 0.635 quintal increase in supply. Furthermore, supply is significantly affected by the distance to the nearest market, with supply decreasing by 0.651 quintals for every kilometer, underscoring the logistical and transportation challenges faced by farmers located further away. The supply of coffee is positively correlated with the educational attainment of household heads, as more educated farmers supply 1.12 quintals more coffee, reflecting their greater market awareness and adoption of modern practices. Improved marketing decisions and investment in inputs that enhance production are also encouraged, with cooperative membership and access to transit further promoting increased market participation
Keywords: Coffee, Two-Stage Least Squares, Market Supply, Gimbo District
[This article belongs to Research & Reviews : Journal of Agricultural Science and Technology ]
Tariku Teka Mekuria, Kumilachew Alamerie, Million Sileshi. Determinants of Smallholder Farmers Quantity of Coffea arabica L., Supply to Market: A Case of Gimbo District, Kaffa Zone, Ethiopia. Research & Reviews : Journal of Agricultural Science and Technology. 2025; 14(03):107-120.
Tariku Teka Mekuria, Kumilachew Alamerie, Million Sileshi. Determinants of Smallholder Farmers Quantity of Coffea arabica L., Supply to Market: A Case of Gimbo District, Kaffa Zone, Ethiopia. Research & Reviews : Journal of Agricultural Science and Technology. 2025; 14(03):107-120. Available from: https://journals.stmjournals.com/rrjoast/article=2025/view=234764
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| Volume | 14 |
| Issue | 03 |
| Received | 17/10/2025 |
| Accepted | 21/11/2025 |
| Published | 28/12/2025 |
| Publication Time | 72 Days |
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