Determinants of Coffee Producer Market Outlet Choice in Gololcha District of Oromia Region, Ethiopia: A Multivariate Probit Regression Analysis
The study was conducted in Gololcha District of Arsi Zone with the objective of identifying determinants of coffee producer market outlet choice. The primary data were collected through personal interviews from a total of 154 producers, using structured and semi-structured questionnaires. The multivariate probit model result indicated that the sex of the household head, level of education, means of transport ownership and access to information had positively influenced choice of wholesaler and negatively influenced choice of agent middle-men. Level of education was significantly and negatively related with agent middle-men, and significantly and positively influenced cooperatives’ and wholesalers’ channel choice. Enhancing institutional and infrastructural (transportation and extension) facilities is necessary to enable coffee producers to select efficient channels. In addition, the study recommends that steps be taken to establish and support multi-purpose coffee farmers’ cooperatives – grow their membership, as this should increase farmers’ income through marketing activities and supply of important inputs.
