Analysis of the coffee market structure, conduct, and performance in the Gimbo District of the Kaffa Zone in Southwest Ethiopia

Year : 2026 | Volume : 15 | Issue : 02 | Page : 63 81
By

Tariku Teka Mekuria,

  1. Associate Agricultural Economics Researcher, Southwest Ethiopia Agricultural Research Institute, Bonga Agricultural Research Center, Bonga, Ethiopia

Abstract

Coffee is a vital export commodity for Ethiopia, contributing significantly to the country’s GDP and rural livelihoods. In the Kaffa Zone, particularly in Gimbo District, coffee production serves as the primary source of income for smallholder farmers. Despite its economic importance, the coffee market in the study area faces several constraints, including low production capacity and inadequate market infrastructure. This study aimed to identify key actors in the coffee market chain and to analyze the market structure, conduct, and performance using the Structure–Conduct–Performance (SCP) framework. Primary data were collected from 200 coffee producers, 22 traders, and 22 consumers through a multi-stage sampling technique using structured questionnaires. Both descriptive statistical methods and econometric analyses were employed to examine market dynamics. The results indicate that coffee market supply is positively influenced by quantity produced, access to market information, availability of credit, educational level, and gender of the household head, while distance to the nearest market has a negative and significant effect Consumer outlet preference analysis revealed that 78.5% preferred retailers and 73.5% preferred private traders. Market concentration analysis (CR4 = 36%) indicated a weak oligopolistic market structure. The conduct analysis revealed that producers have limited bargaining power in price determination, indicating an imbalance in market influence. Performance analysis further showed that marketing margins vary across channels, with the highest margin observed in channel II (17.67%) and the lowest in channel III (10.69%). However, producers obtained the largest share of the consumer price in channel III (89.31%), indicating relatively better performance in this channel. Overall, the coffee market in Gimbo District is characterized by weak oligopolistic structure, limited producer influence, and varying efficiency across market channels. The findings highlight the need for improving market infrastructure, strengthening institutional support, and enhancing farmers’ access to information and financial services to promote a more efficient and equitable coffee marketing system.

Keywords: Coffee, market structure, market conduct, market performance, Gimbo District, economic analysis, consumer behavior, industry trends, agricultural economics

[This article belongs to Research & Reviews : Journal of Agricultural Science and Technology ]

How to cite this article: Tariku Teka Mekuria. Analysis of the coffee market structure, conduct, and performance in the Gimbo District of the Kaffa Zone in Southwest Ethiopia. Research & Reviews : Journal of Agricultural Science and Technology. 2026; 15(02):63-81.
How to cite this URL: Tariku Teka Mekuria. Analysis of the coffee market structure, conduct, and performance in the Gimbo District of the Kaffa Zone in Southwest Ethiopia. Research & Reviews : Journal of Agricultural Science and Technology. 2026; 15(02):63-81. Available from: https://journals.stmjournals.com/rrjoast/article=2026/view=251140

References

  1. Daviron B, Ponte S. The coffee paradox: Global markets, commodity trade and the elusive promise of development. London: Zed Books; 2005.
  2. Kilian B, Pratt L, Jones C, Villalobos A. Can the private sector be competitive and contribute to development through sustainable agricultural business? A case study of coffee in Latin America. Int Food Agribus Manag Rev. 2004;7(3):21–45.
  3. Agnola T, Ambrosini L, Beretta E, Gremlich G. Empowering global supply chains through blockchain-based platforms: New evidence from the coffee industry. 2025;4(1):3.
  4. Miatton F, Amado L. Coffee as a service: Embedding efficiency and sustainability in coffee roasters. In: Proceedings of the 2023 IEEE International Conference on Technology Management, Operations and Decisions (ICTMOD); 2023 Nov 22; pp. 1–7. Piscataway (NJ): IEEE.
  5. Worku M. Production, productivity, quality and chemical composition of Ethiopian coffee. Cogent Food Agric. 2023;9(1):2196868.
  6. Minten B, Dereje M, Engida E, Kuma T. Coffee value chains on the move: Evidence in Ethiopia. Food Policy. 2019;83:370–383.
  7. Bain JS. Barriers to new competition: Their character and consequences in manufacturing industries. Cambridge (MA): Harvard University Press; 1956.
  8. Goshme D, Ayele T, Duba D. Structure, conduct and performance of coffee market in West Guji Zone, Oromia Region, Ethiopia. Asian J Dairy Food Res. 2023;42(2):216–221.
  9. Acharya SS. Agricultural marketing in India. New Delhi: Oxford and IBH Publishing; 2004.
  10. Jones WO. Marketing staple food crops in tropical Africa. Ithaca (NY): Cornell University Press; 1972. 293 p.
  11. Food and Agriculture Organization of the United Nations. The state of food and agriculture 2016: Climate change, agriculture and food security. Rome: FAO; 2016.
  12. Mekuria TT. Analysis of coffee market chain: The case of Gimbo District, Kaffa Zone, Southwest Ethiopia [master’s thesis]. Haramaya (Ethiopia): Haramaya University; 2023.
  13. Belda RH. Population dynamism and agrarian transformation in Ethiopia. Afr J Agric Res. 2016;11(39):3863–3879.
  14. Osahon OJ, Kingsley O. Statistical approach to the link between internal service quality and employee job satisfaction: A case study. Am J Appl Math Stat. 2016;4(6):178–184. doi:10.12691/ajams-4-6-3.
  15. Greene WH. Econometric analysis. 5th ed. Upper Saddle River (NJ): Prentice Hall; 2003.
  16. Rahmeta O, Zewudie S. Coffee market chain analysis in Manna District, Jimma Zone, southwestern Oromia, Ethiopia. Ethiop J Appl Sci Technol. 2019;10(2):46–52.
  17. USAID COMPETE East Africa Trade Hub. Ethiopia coffee industry value chain analysis: Profiling the actors, their interactions, costs, constraints and opportunities. Nairobi: USAID; 2010.
  18. Diro S, Erko B, Asfaw E, Anteneh M. Share of coffee market outlets among smallholder farmers in western Ethiopia. World Appl Sci J. 2017;35(10):2144–2151.
  19. Shumeta Z, Urgessa K, Kebebew Z. Analysis of market chains of forest coffee in southwest Ethiopia. Acad J Plant Sci. 2012;5(2):28–39.
  20. Gebre E. Analysis of coffee market chain: The case of Gewata District, Kaffa Zone, Southwest Ethiopia [master’s thesis]. Haramaya (Ethiopia): Haramaya University; 2017.
  21. Mekuria TT, Alamerie K, Sileshi M. Determinants of smallholder farmers’ quantity of Coffea arabica supply to market: A case of Gimbo District, Kaffa Zone, Ethiopia. Res Rev J Agric Sci Technol. 2025;14(3):107–120.
  22. Mekuria TT. Factors influencing coffee retail selection among smallholder producers in Gimbo District, Kaffa Zone, Southwest Ethiopia. Res Rev J Agric Sci Technol. 2025;14(3):121–133.
Regular Issue Subscription Original Research
Volume 15
Issue 02
Received 07/01/2026
Accepted 08/04/2026
Published 30/07/2026
Publication Time 204 Days

Login

My IP

PlumX Metrics