Coffee Marketing in Mana Woreda

deep brown tree Marketing in Mana Woreda4.5.1. Market PlacesMarket is an important factor that affects household decision-making in agricultural activities. Access to grocery stores is a distance measured in kilometers to reach the ne atomic number 18st market. The written report revealed the infrastructure in Mana woreda is for the most part satisfactory. There is an availability of market places near to villages with easy road gateway and proximity to vaingloriousr towns. This has assisted eliciters to reduce their transport cost and extend their market surplus and margins. The access has further supported to increase hot chocolate production by the bring uping households. According to the survey result, it is confirmed that the sightly distance from the main road is at about 2km and from a instead close average distance from the main village market is at about 3.7 Km. Sample households are also located at a distance of 4.2km from cooperatives. The main market cente r is in Yebbu town, which is the woreda capital.4.5.2. Market Participants hot chocolate tree bean passes through several stages before it reaches the ultimate consumers. These stages are local hookup station, processing, storage, transportation and grading, exporting and domestic distribution. Both governmental and private enterprises are participating in involveing, processing, wholesaling and exporting activities (Elias, 2005). This study identified different burnt umber market participants in the exchange functions between acquireers and final consumers. The major java market participants in the study range include deep brown make households, local collectors, wholesalers (suppliers) and Cooperatives.Coffee growers are the unproblematic election actors who cultivate and supply drinking chocolate to the market. They do not have adequate, reliable and timely market instruction than traders which forced them to sell their produce at low change legal injury. loc al collectors are farmers or part time traders in assembly markets who collect drinking chocolate from farmers in village markets for the purpose of reselling it to wholesalers and consumers in the main market center. They use their financial resources and local knowledge to collect a plenty of burnt umber from the surrounding area. Wholesalers are known for buy of coffee in a large amount with better financial and information capacity. They secure coffee either directly from farmers or local collectors. They pass out large amount of coffee to the regional market (Jimma) and to terminal markets (Addis Ababa). Service Cooperatives (primary societies) do up of different local peasant associations play an important office in organizing farmers. They own washing stations and warehouses. They purchase coffee from the farmers and distribute to unions.4.5.3. Marketing ChannelsGenerally, four trade channels were identified in the study area where coffee was personnel casualty fro m producers to consumers. The first channel was passing coffee from producers via coffee primary cooperatives to export through secondary cooperatives (Unions). In the second channel producers sold dried coffee to collectors who were selling to primary cooperatives to be exported directly through the Union. The third channel is a mind marketing channel with larger number of marketing agents through which sunlight dried coffee is passed from the coffee growers to coffee collectors and dry processed coffee is passed from coffee wholesalers to export market. In the last channel, coffee growers sell their coffee to wholesalers to export through exporters.The coffee marketing channels of the study area can be sketched like thisTherefore, the structure of coffee marketing governance in the study area was characterized by the presence of individual coffee farmers to the production side and coffee primary cooperatives, local collectors and wholesalers (suppliers) to the marketing side. T he Oromia Coffee Farmers Cooperative Union and private exporters were the members of the coffee marketing structure away(p) the study area.4.5.4. Place and Price of Coffee SaleAs the outset point for the distribution of coffee from producer to final consumer, farm respondents were asked where they were selling their different forms of coffee. According to the audition respondents, the major market places for selling both(prenominal) red cherry red and sundried coffee were the nearest local markets for collectors, primary cooperative associations and Yebbu town (main market center of the woreda) for wholesalers and other(a) marketing agents. With complaisance to whom the sample farm households are selling their coffee among the different marketing agents (intermediaries), they responded differently with regard to red cherry and sun-dried coffee.Farmers sell their coffee in the form of red cherry during harvesting and in sun-dried form after storing for some months. For the red cherry coffee, the majority (about 72.3%) of the farm household were sold to the Cooperatives. The remaining 19.2% and 8.6% were sold to Local collectors and Wholesalers respectively.Local collectors purchase the bulk of coffee in the case of sun dried (70.8%) from farm households where as the remaining 22% and 7.2% of sun-dried coffee bought by coffee wholesalers and cooperatives respectively.As indicated in the above table 4.10, from the total production of coffee, the sample farm respondents are producing more of sun-dried coffee (63%) than that of red cherry (37%). The red cherry coffee will be sold instantly after harvesting mostly for cooperatives which have washing stations and communicate pulpers. According to the survey result, the principal cost of the farmers was cost of transporting coffee to the market followed by labor cost.Regarding with equipment casualty, there is a difference in the determine between red cherry and sun-dried coffee. The price of sun-dried coffe e was higher than that of red cherry. All of the sample farm respondents in the study area reported that the average price for red cherry was some 6 Birr/kg during the last harvest season whereas for sun-dried coffee the mean price was 24.4 Birr/kg. But the prices of both types of coffee were fluctuating from time to time.Farmers sell their coffee for cooperatives as well as local traders. They preferred to sell their coffee to cooperatives because most of the sample farm households are members of the cooperatives and the prices of cooperatives for red cherry and sun-dried coffee were better than the other local traders. But, cooperatives were not active participants in the early and late seasons and prospered to buy red cherry. During this time farmers were forced to sell their coffee (especially sun-dried) to local traders at a lower price due to limited talk terms power.According to the survey result, the sample respondents replied that there is no uniform coffee price at the market place. The reason for difference in the price of coffee was color difference (2.6%), quality difference (89.7%) and Farmers negotiating capacity (8.7%). Prices were exclusively determined by traders negotiating with farmers during time of transaction. Majority of farmers responded that they were price takers. Price setters were mostly local traders (81.7%) and only 18.3% of the farmers were in a localisation to decide on coffee price.Regarding with the terms of payment, 76.2 percent of the respondents stated that they were selling their coffee on cash basis and received the price as soon as they sold.According to the survey result, 71.3 percent of the respondents replied that the trend of coffee market is apparently decreasing across time. The reason behind this is the mutant and volatility of coffee price. Hence, the benefits earned from the production of coffee are significantly deteriorating because of the declining prices of coffee in the market.