Coffee Marketing in Mana Woreda

4. 5. 1. Market Places

Market can be an essential aspect that affects household decision-making in agricultural activities. Usage of market segments is a distance measured in kilometers to reach the nearest market. The study revealed the infrastructure in Mana woreda is generally satisfactory. There can be an option of market places close to villages with easy road gain access to and proximity to much larger towns. This has assisted farmers to lessen their transport cost and enlarge their market surplus and margins. The access has further recognized to increase coffee development by the farming households. According to the survey final result, it is established that the common distance from the key road reaches about 2km and from a rather close average distance from the primary village market is at about 3. 7 Km. Sample homes are also located far away of 4. 2km from cooperatives. The primary market center is Yebbu town, which is the woreda capital.

4. 5. 2. Market Participants

Coffee passes through several levels before it reaches the ultimate consumers. These periods are local collection place, processing, storage, travel and grading, exporting and local distribution. Both governmental and private enterprises are participating in collecting, digesting, wholesaling and exporting activities (Elias, 2005). This review identified different espresso market members in the exchange functions between farmers and last consumers. The major espresso market members in the study area include espresso farm homeowners, local collectors, wholesalers (suppliers) and Cooperatives.

Coffee growers are the primary actors who cultivate and offer coffee to the marketplace. They do not have enough, reliable and timely market information than investors which compelled them to market their produce at low selling price. Local collectors are farmers or part time traders in assembly markets who collect coffee from farmers in village markets for the purpose of reselling it to wholesalers and consumers in the primary market middle. They use their money and local knowledge to collect a bulk of coffee from the surrounding area. Wholesalers are known for purchase of caffeine in a huge amount with better financial and information capacity. They purchase espresso either directly from farmers or local collectors. They spread large amount of caffeine to the regional market (Jimma) and also to terminal market segments (Addis Ababa). Service Cooperatives (primary societies) made up of different local peasant associations play an important role in arranging farmers. They own cleansing stations and warehouses. They purchase coffee from the farmers and disperse to unions.

4. 5. 3. Marketing Channels

Generally, four marketing channels were recognized in the analysis area where espresso was transferring from producers to consumers. The first route was passing caffeine from producers via coffee main cooperatives to export through supplementary cooperatives (Unions). In the second route producers sold dried caffeine to collectors who had been selling to most important cooperatives to be exported immediately through the Union. The third channel is a principal marketing channel with larger amount of marketing agents by which sun dried espresso is handed down from the espresso growers to coffee collectors and dry processed coffee is handed from espresso wholesalers to export market. Within the last channel, coffee growers sell their caffeine to wholesalers to export through exporters.

The espresso marketing channels of the analysis area can be sketched like this

Therefore, the framework of coffee marketing system in the study area was characterized by the existence of individual caffeine farmers to the creation side and coffee most important cooperatives, local collectors and wholesalers (suppliers) to the marketing side. The Oromia Coffee Farmers' Cooperative Union and private exporters were the associates of the espresso marketing structure outside the analysis area.

4. 5. 4. Place and Price of Espresso Sale

As the starting place for the distribution of coffee from developer to final consumer, plantation respondents were asked where these were offering their different forms of coffee. Based on the test respondents, the major market places for retailing both red cherry and sun-dried caffeine were the nearest local markets for collectors, principal cooperative associations and Yebbu town (main market center of the woreda) for wholesalers and other marketing real estate agents. With respect to whom the sample farm households are available their espresso among the various marketing realtors (intermediaries), they responded differently in regards to to red cherry and sun-dried coffee.

Farmers sell their caffeine in the form of red cherry during harvesting and in sun-dried form after storing for a few a few months. For the red cherry caffeine, almost all (about 72. 3%) of the plantation home were sold to the Cooperatives. The remaining 19. 2% and 8. 6% were sold to Local collectors and Wholesalers respectively.

Local collectors purchase the bulk of coffee in the case of sun dried (70. 8%) from plantation households where as the remaining 22% and 7. 2% of sun-dried espresso bought by coffee wholesalers and cooperatives respectively.

As indicated in the above stand 4. 10, from the full total production of coffee, the sample farm respondents are producing more of sun-dried coffee (63%) than that of red cherry (37%). The red cherry coffee will be sold soon after harvesting generally for cooperatives that have washing channels and hands pulpers. Based on the survey result, the principal cost of the farmers was cost of moving coffee to the market followed by labor cost.

Regarding with price, there is a difference in the purchase price between red cherry and sun-dried coffee. The price of sun-dried espresso was higher than that of red cherry. All the sample farm respondents in the study area reported that the common price for red cherry was almost 6 Birr/kg over the last harvest season whereas for sun-dried espresso the mean price was 24. 4 Birr/kg. However the prices of both types of espresso were fluctuating every once in awhile.

Farmers sell their coffee for cooperatives as well as local investors. They preferred to sell their espresso to cooperatives because almost all of the sample farm households are users of the cooperatives and the prices of cooperatives for red cherry and sun-dried espresso were much better than the other local professionals. But, cooperatives weren't active members in the early and late periods and preferred to buy red cherry. During this time period farmers were required to market their coffee (especially sun-dried) to local investors at less price due to limited bargaining electric power.

According to the survey result, the test respondents replied that there surely is no uniform espresso price at the market place. The reason behind difference in the price tag on caffeine was color difference (2. 6%), quality difference (89. 7%) and Farmer's negotiating capacity (8. 7%). Prices were exclusively determined by merchants negotiating with farmers during time of transaction. Majority of farmers responded that these were price takers. Price setters were generally local stock traders (81. 7%) and only 18. 3% of the farmers were in a position to decide on espresso price.

Regarding with the conditions of repayment, 76. 2 percent of the respondents explained that these were selling their coffee on cash basis and received the purchase price when they sold.

According to the study result, 71. 3 percent of the respondents replied that the tendency of espresso market is apparently lessening across time. The real reason for this is the fluctuation and volatility of espresso price. Hence, the benefits earned from the creation of caffeine are significantly deteriorating due to declining prices of espresso on the market.

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