Commercialization of Coffee Production in Coffee-Based Farming Systems in Ethiopia

Abstract

Commercialization of agriculture is an important part of the agrarian transformation of low-income economies and a means of ensuring food security, enhanced nutrition, and incomes. This study was designed to examine coffee commercialization in the coffee-based farming system of Ethiopia. It was conducted in two regional states, namely, Oromia and Southern Nation, Nationalities and Peoples (SNNP) which constitute 95% of coffee production in the country. Data were collected using a structured questionnaire from a total of randomly selected 953 households. The Tobit model is used to identify factors affecting farmers' coffee commercialization in major coffee-producing areas. The results of the study showed that 89% of coffee-producing households supply coffee to the market. Coffee is more commercialized (76%) compared to other staple foods (such as maize) in the area. The econometric result also showed positive effects of access to key public services (education and extension services) and the adoption of improved coffee varieties on the commercialization level of coffee. The positive effect of radio ownership on coffee market participation also suggests the need for more farm-based tailored radio programs that can provide market information for the farmers. Diversification through intercropping is a method to promote the marketing of cash crops, which necessitates wider diffusion of enhanced climate-smart practices. Moreover, research, extension, and other development partners must pay due attention to any barriers/drivers that encourages the access and use of the improved varieties.