FACTORS AFFECTING COFFEE VALUE CHAIN IN COOPERATIVE UNION: THE CASE OF MULTIPURPOSE COOPERATIVE UNION KELLEM WOLLEGA ZONE

Abstract

Coffee sector has been contributing a substantial value to the livelihood of the rural people. Therefore, the aim of this study is to investigate the Factors Affecting the Coffee Value Chain in multipurpose Cooperative Union case of Kellem Wollega zone of Oromia region. The survey method is used here for the realization of this objective.The total population for the study is 1966 (selected primary cooperative) members found under kellem Wollega zone multipurpose cooperative union. For the study, data was collected from the members of the Union; a random sampling technique is employed in order to give equal chance for each union members/respondents. 332 questionnaires were collected for analysis purpose of the study. Collected data was analyzed by SPSS version 20 software/Python3 for elaboration of the basic objective or research questions different statistical tools of measurement were undertaken. The result of the study revealed that the related factors of infrastructure marketing, cooperative factors and financial roles are significantly affecting the coffee value chain of the cooperative union with model explaining .629 or 62.9% of variance in dependent variable by Independent variables. It is concluded that Market related factors have highest positive impact on Cofee value chain.Cooperative related factors have second highest impact on Coffee value chain. Infrastructure related factors have third highest impact on Coffee value chain. Financing related factors have fourth highest impact on Coffee value chain