VALUE CHAIN ANALYSIS OF COFFEE: THE CASE OF NENSABO WOREDA COFFEE FARMERS' COOPERATIVE UNION IN WEST-ARSI ZONE, OROMIA REGION, ETHIOPIA

ABSTRACT Ethiopian coffee production and its productivity level are unsatisfactory to uphold the country’s comparative advantage. The study attempted to analyze different factors that hinder coffee value chains in the study area. Accordingly to the finding various factors that have approximately similar influence on coffee value chains. A descriptive survey research design and explanasstory research design were adopted. Purposive and stratified sampling techniques were used . Both mixed quantitative and qualitative data collection approaches were done based on both primary and secondary data sources. The study targeted 117 respondents but 16(14%) questionnaires were not returned and 101 returned the survey questionnaire, indicating a response rate of 86 percent. Data were analyzed on quantitative basis using Pearson correlation and descriptive statistics. The findings of the Pearson correlation analysis indicate that all relationships between the independent variables that were the five performance of coffee value chain components were appropriate based on the coffee farmers cooperatives union rules and informations includes; actors roles and relationships, access to market and finance, government issues, competition issues and human and physical issues and the performance of coffee value chain proved whether positively and significantly correlated. Based on the findings, the researcher recommended that coffee value chain analysis should improve the actors roles and relationships, access to market and finance, government issues, competition issues and human and physical issues and the Oromia region concerned body should give more attention for the revision of the performance of coffee value chain. The study focused different major areas of coffee farmers’ union structure and the scenario indicates the necessity of further research in this area.