DETERMINATES OF MARKET SUPPLY OF COFFEE BY SMALLHOLDER FARMERS IN MESKAN DISTRICT, EAST GURAGE ZONE, ETHIOPIA

Abstract

This study aimed to assess the determinants of market supply of coffee by smallholder farmers in Meskan Woreda, East Gurage Zone, Ethiopia. A survey of 386 households was conducted using simple random sampling methods during the 2014/15 Ethiopian calendar year. The study used structured questionnaires to collect primary data, which were analyzed using descriptive and inferential statistical techniques, including multiple linear regression and chi-square tests. The results revealed that factors such as the sex of the household head, family size, livelihood diversification strategies, access to irrigation, and average annual coffee production significantly influenced the market supply of coffee. The chi-square test further indicated a significant relationship between the market supply of coffee and factors like livelihood diversification strategies, access to irrigation, access to credit, proximity to markets, cooperative membership, and access to infrastructure. The study found that 63.2% of the variation in coffee supply to the market could be explained by these factors. The study recommends targeted policies and interventions to enhance the productivity of coffee farmers, including improving access to irrigation and credit, providing training and support, fostering collaboration, and encouraging diversification to ensure a steady supply of coffee to the market while promoting sustainable agricultural practices.