Determinants of coffee market outlet choice in Wollega Zones, Oromia regional state, Ethiopia

The study entitled major determinants of coffee market outlet choice of households in Wollega Zones, indicate Coffee accounts for 25–30% of the country’s total foreign currency earnings and the amount of foreign currency earnings from coffee increases over the years with a varying rate. However, the country's productivity—averaging 0.71 tons per hectare—is significantly lower than Brazil's 0.78 tons per hectare, Vietnam's 1.31 tons per hectare, and Colombia's 0.76 tons per hectare which indicate low in compered to other countries. Ethiopia is Africa's largest coffee producer and the fifth largest exporter globally, producing over 500,000 metric tons annually, with production dependent on weather and other conditions. This highlights the urgent need for interventions to strengthen Ethiopia’s coffee market and improve farmers’ livelihood opportunities. In order to achieve objectives of the study, both primary and secondary data was collected. Primary data was collected using multistage sampling techniques, from 188 coffee producing households using structured questionnaire. Descriptive study shows, there is negatively significant mean difference between different market outlets based on Sex of household head and adoption of new variety seed and positively significant based on availability of credit and education. This shows the more educated the more prefer consumer market outlet choice. Mean difference test shows the choice of market outlet less for male, decrease with number of family size, with adoption new variety and age while increase with education, credit access and with being a member of equb.Multivariate regression model reveal that education and access for credit increase range of choose in all market outlet choice types except education has no effect in case of rural market choice. In other effect adoption of new variety seed will decrease probability choosing urban traders and rural traders while shock and family size will decrease choice of brokers and consumers respectively. Major constraints of coffee production include: limited:market availability, credit supply, agricultural inputs, fluctuated output prices, lack of transport and storage facilities, labor shortages for loading and unloading, restricted market information, high input costs, and market information asymmetry due to brokers withholding critical data were ranked as first, second and etc. respectively based on their severity. Therefore, improving market outlet by providing credit access, training, fostering economies of scale in transport, and exploring new market avenues, reduce reliance on intermediaries is an asset. Thus, Policymakers play a crucial role in shaping livelihood outcomes through giving credit and educational training for rural households.