ACRONYM AND ABBREVIATION

CSA Central Statistical Authority

BoFED Bureau of Finance and Economic Development
ECX Ethiopia Commodity Exchange
GDP Growth Domestic Product
GTP Growth and Transformation Plan
SNNPR South Nations, Nationalities and People's Regional state
IOT Institute of Technology
TVET Technical and Vocational Education and Training
UG under Grade

1
 TABLE OF CONTENTS

ACRONYM AND ABBREVIATION .......................................................................................................... 1

TABLE OF CONTENTS .............................................................................................................................. 2
LIST OF TABLES ........................................................................................................................................ 4
LIST OF FIGURES ...................................................................................................................................... 4
ABSTRACT .................................................................................................................................................. 5
CHAPTER ONE ........................................................................................................................................... 6
INTRODUCTION ........................................................................................................................................ 6
1.1. Background of the Study............................................................................................................... 6
1.2. Statement of the Problem .............................................................................................................. 7
1.3. Objectives of the Study ................................................................................................................. 7
1.3.1. General Objective ................................................................................................................. 7
1.3.2. Specific Objectives ............................................................................................................... 8
1.4. Scope and Limitations of the Study .............................................................................................. 8
1.5. Beneficiaries ................................................................................................................................. 8
CHAPTER TWO .......................................................................................................................................... 9
REVIEW OF RELATED LITERATURES .................................................................................................. 9
2.1. Description of the Value Chain Concept ...................................................................................... 9
CHAPTER THREE .................................................................................................................................... 11
METHODOLOGY ..................................................................................................................................... 11
3.1. Description of the Study Area ..................................................................................................... 11
3.2. Selection Criteria of Coffee Value Chain ................................................................................... 13
3.3. Data Types, Sources and Method of Data Collection ................................................................. 14
3.4. Sample Size Determination and Sampling method ..................................................................... 14
3.5. Data Analysis .............................................................................................................................. 14
CHAPTER FOUR ....................................................................................................................................... 16
RESULTS AND DISCUSSION ................................................................................................................. 16
4.1. Benchmarking ............................................................................................................................. 16
4.2. Value Chain Mapping ................................................................................................................. 17
4.2.1. Mapping the AS-IS Coffee Value Chain Starting from Yirgachefe ................................... 17

4.2.2. The Benchmark Coffee Value Chain: The Case of Brazil .....................................................19

2
 4.2.3. Gap between AS-IS and the Benchmark ................................ Error! Bookmark not defined.
4.3. Description of constraints in the AS-IS value chain relative to the benchmark .......................... 21
4.4. Analysis of value addition process in the bench mark value chain ............................................. 30
4.5. Technology Identification ........................................................................................................... 43
4.6. Technology Identification, categorization and Prioritization ...................................................... 45
4.7. Coffee Value Chain Actors and Their Roles ............................................................................... 47
CHAPTER FIVE ........................................................................................................................................ 49
SUMMARY, CONCLISIONS AND RECOMMENDATIONS ................................................................ 49
5.1. Summary and Conclusion ........................................................................................................... 49
5.1. Recommendations ....................................................................................................................... 55
6. REFERNCES ...................................................................................................................................... 57

7. APPENDIXES ........................................................................................................................................58

3
 LIST OF TABLES

Table 1. GTP priority sectors........................................................................................................ 13

Table 2. 10 coffee producing countries by year 2017/18 in mil bags of 60kg ............................. 16

LIST OF FIGURES

LJXUH
) 3RUWHU¶V UHSUHVHQWDWLRQ RI D YDOXH FKDLQ............................................................... 9
Figure 2. Map of Yirgachefe Woreda (Source: BOFED, 2016)................................................... 12
Figure 3. Productivity rate of world coffee producing countries in quintal per hectare............... 17
Figure 4. The AS-IS coffee value chain starting from Yirgachefe............................................... 18
Figure 5. The benchmark coffee value chain: the case of Brazil... Error! Bookmark not defined.
Figure 6. Gap b/n AS-IS & benchmark value chain ...................... Error! Bookmark not defined.
Figure 7. Fish Bone diagram representing actors of the coffee value chain................................. 48

4
 ANALYSIS OF COFFEE VALUE CHAIN: THE CASE OF YIRGACHEFE
WOREDA, GEDEO ZONE, SOUTHERN NATION NATIONALITIES AND
PEOPLES REGIONAL STATE, ETHIOPIA

ABSTRACT
Coffee produced in Yirgachefe had been internationally known as the rarest and most prized
coffee, especially in America. But farmers in Yirgacheffe complain that they are not benefited
from the existing coffee supply and half of the coffee supplied to ECX to be exported do not fulfill
the criteria of ECX. These might be due to some technical and socio-economic factors. Thus this
study was conducted to identify those factors that reduced the quality of Yirgachefe coffee. The
general objective of this study was analyzing coffee value chain and Its specific objectives are to
trace the value chain of Yirgachefee coffee AS-IS from input supply to consumption, to identify
all the constraints that impede the competitiveness of coffee in the case area in the national &
global market and to determine the role of actors in the coffee value chain for the intervention.
To achieve these objectives, both primary and secondary data were collected. The primary data
were collected from 30 farm households, 16 traders, 3 processors and 17 consumers using pre-
tested semi-structured questionnaire. Individual interview and observation were employed to
collect primary data. Secondary data were collected from different published and unpublished
sources. The data collected were analyzed using mapping and narrative approach. The study
result showed that there is a gap between the bench mark value chain and the existing AS-IS
value chain in input supply, land preparation, production, harvesting, processing and marketing
functions. Regarding input supply, Shortage of improved seeds, Reduced productivity due to
manual operation, and Transmission of coffee disease due to untreated hand tools are identified
as constraints on the AS-IS value chain. In land preparation, No ploughing practice or trend
before holing among farmers in the study area, and Lack of holing machine or equipment.
Production problems identified are that Slashing, hoeing, pruning, Stumping & de-suckering
using PaQXaO WRROV; SRPH IaUPHUV GRQ¶W XVH IHUWLOL]HUV SHULRGLFally; Some farmers use un-
decomposed or sub-standard compost; farmers in the study area have not been undertaking
mulching practice; intercropping competitive non-leguminous plants rather than using
complementary ones; and Untimely uprooting the infected coffee tree. Lack of machine support
and Picking unripe & over ripped cherries together with the red cherry are out of harvesting
problems. Quality problems due to processing mixed varieties of coffee; Using pulping machines
inappropriately and operating with maladjusted disk type, which creates quality problems,
Manual separation, and shortage of drying materials such as mesh wire sacks made from fibbers
are also out of processing problems. Regarding marketing, Insufficient storage units; Wastage
during sample taking and Extra warehousing costs are identified as constraints in the AS-IS
value chain. The study result indicated the need to encourage the entry of TVET, IOT, and
Coffee, Tea and Spices Authority to fill the gap.

Key words: Coffee Producers, Coffee value chain, ECX, TVET, Coffee processing industries.

5
 CHAPTER ONE
INTRODUCTION

1.1. Background of the Study

Coffee is produced in more than fifty developing countries in Latin America, Africa, and Asia
and it is an important source of income for 20-25 million families worldwide. Ethiopia, the
birthplace of coffee, stands first in coffee production in Africa and is the fifth largest coffee
producer in the world next to Brazil, Vietnam, Colombia, and Indonesia, contributing about 4.2
percent of total world coffee production. By 2011/12, the country had produced approximately
500,000 metric tons of coffee.

Out of nine regional states of Ethiopia, coffee is dominantly produced in Oromia national
regional state and Southern Nation, Nationalities and People regional state. As per the regional
coffee, tea and spices authority, south nations, nationalities and peoples regional state contributes
around 60 % of the total washed coffee and around 40% of the total unwashed coffee being
supplied to domestic and international markets. Sidama and Gedeo zones are the first and the
second highest producers of coffee in SNNPR.

Yirgachefe Woreda is one of the six woredas of Gedeo zone and is the highest producer of coffee
in the Zone. It contributed around 32.1% of the total washed coffee and around 26.4 % of the
total unwashed coffee produced in the Zone in 2017. The total annual production of coffee in
2016/2017 was 70546 qt which was around 30.1% of the total coffee produced in the zone in
2016/2017 which is 234061qt.

The woreda is internationally known for its good flavor coffee. Tehsale (2017) stated that the
washed coffee of Yirgacheffe is the most famous washed Ethiopian coffee, especially in the
United States (as a trademark). It has a test of Blueberry overtones and aroma, with a hint of
floralness and wineyness in the finish. But farmers in Yirgachefe complain that they are not
benefited from the existing coffee supply while their coffee had been internationally accepted as
the rarest and most prized. The other problem is that although Ethiopia has been taking part in

6
exporting coffee to the World market, half of the total production including the one supplied
from Yirgachefe is supposed to be consumed locally (Belay Kinati, 2017), which implies that
half of the coffee supplied to ECX to be exported do not fulfill the criteria of ECX and rated as
under qualifying.

Therefore, these study addresses factors that contributed to under-qualification of coffee from
Yirgachefe in terms of value chain analysis. In doing this, the study will address various
technical, institutional and technological gaps that contributed to low quality in the value chain
from input supply up to consumption.

1.2. Statement of the Problem

Yirgachefe is known for its high production of coffee in Gedeo zone. It is the first in coffee
production from 6 woredas of Gedeo zone. Coffee produced in Yirgachefe had also been
internationally known as the rarest and most prized coffee, especially in America. But farmers in
Yirgacheffe complain that they are not benefited from the existing coffee supply and half of the
coffee supplied to ECX to be exported do not fulfill the criteria of ECX. This implies that half of
the coffee produced in Yirgachefe is being consumed domestically. This might be due to some
technical, technological, institutional, managerial, socio-economic and environmental factors.
Thus, this study was conducted to identify those factors that reduced the quality of Yirgachefe
coffee. The study employed value chain analysis method ti investigate the problem

1.3. Objectives of the Study

1.3.1. General Objective

The objective of this study is to analysis the coffee value chain in SNNPR in case of Yirgachefe
to identify the constraints within the chain in the pursuit of technological interventions.

7
 1.3.2. Specific Objectives

- To identify the value chain of Yirgachefee coffee AS-IS from input supply to consumption.
- To study international best practice to be used as a benchmark to take competitive advantage.
- To identify all the constraints that impede the competitiveness of coffee in the study area in
the national & global market.
- To determine the role of actors in the coffee value chain for the intervention.

1.4. Scope and Limitations of the Study

Coffee value chain study is vast and addresses all actors from input supply up to consumption in
the importer country. But this study is limited to investigate the case of only those actors which
are found in Yirgachefe and up to the zonal market (Dila). Although coffee is produced and
marketed in all 6 Woredas of Gedeo Zone, this study is also limited to coffee production and
marketing problems of Yirgachefe Woreda in the form of value chain analysis because of time
and financial constraints. Most of the respondents were unable of reading and writing. Due to
this there was inability of respondents to read and respond to the questionnaires. These
limitations were tackled by employing interview method

1.5. Beneficiaries

The beneficiaries of this study will be

Smallholder farmers engaged in coffee production.
Coffee processing industries
Tvet colleges
Universities
Small and micro enterprises engaged in coffee production
Cooperatives
Wholesalers & retailers

8
 CHAPTER TWO
REVIEW OF RELATED LITERATURES

2.1. Description of the Value Chain Concept

As a starting point, it is important to outline the value chain concept. According to Michael
Porter, a value chain "disaggregates a firm into its strategically relevant activities in order to
understand the behavior of costs and the existing and potential sources of differentiation" (Porter
1985). This value chain allows us to diagnose the competitive advantage of a firm or industry
and to enhance this advantage by tailoring the value chain (Porter 1985). Nevertheless, the value
chain concept has evolved over the years since Porter's definition. In the narrow meaning, a
value chain includes the range of activities performed by a firm to produce a certain output. It
refers to the work by Porter (1985) on competitive advantages. Porter (1985) utilized the
framework of value chains to assess how a firm should position itself in the market and in
relation to suppliers, buyers, and competitors.

Figure 1 3RUWHU¶V UHSUHVHQWDWLRQ RI D YDOXH chain

Source: Porter (1985)

7KH µEURDG¶ DSSURDFK WR YDOXH FKDLQV ORRNV DW WKH FRPSOH[ UDQJH RI DFWLYLWLHV
LPSOHPHQWHG E\
various actors (primary producers, processors, traders, service providers, etc.) to deliver a raw
material to retail of the final SURGXFW 7KH µEURDG¶ YDOXH FKDLQ VWDUWV IURP WKH SURGXFWLRQ V\
VWHP
of the raw materials and moves along the linkages between enterprises engaged in trading,

9
 assembling, processing, etc. This broad approach does not only look at the activities
implemented by a single enterprise. Rather, it includes all its backward and forward linkages, up
until the level at which the raw material produced is linked to the final consumer. In a more
FRQWHPSRUDU\ VHQVH D µVLPSOH¶ YDOXH FKDLQ FRXOG EH GHILQHG DV WKH GHVFULSWLRn of a full
range of
activities necessary to carry a product or service from conception, through the various production
stages (including physical transformation and other producer services), distribution to the final
consumer, and removal after its use. Nonetheless, in real life applications, value chains tend to be
more complex, involving several producers, creating manifold links within the value chain.
Therefore it can appear that one value chain may be composed of several smaller value chains
(Kaplinsky and Morris 2001). In the context of globalization, the word fragmentation

10
 CHAPTER THREE
METHODOLOGY

3.1. Description of the Study Area

Yirgachefe Woreda is one of the 6 Woredas of Gedeo zone which is located at the east-central
part of Gedeo zone at a distance of 37 km from the capital city of the Zone, Dila and at 127 km
0
from the capital of SNNPR, Hawassa. Astronomically it is situated in the coordinates of 6 06 to
latitude and 38009 to 380 31 East longitudes. The total area of the Woreda was 266 sq.km and it
was 6 029 North bordered on the south by Kochere , on the west by the Oromia region, on the
north by Wenago , on the east by Bule, and on the southeast by Gedeb (SNNPR BoFED, 2012).

There were around 246,573 people in the Woreda who live being clustered in 36 Kebeles, out of
which 50.3% (123997) were females and the rest 49.7% (122576) were males as per the 2013
projection of Central Statistics Agency (CSA, 2013) for the coming 4 years from 2014-2017. The
total household size was estimated to be 41096. Around 87% (214,439) of the total population
are living in rural areas depending on crop production and livestock raising and the rest 13%
(32134) are dwellers in the urban part of the Woreda.

The average population density is estimated to be 933 persons per square kilometer and the
average land holding size of the Woreda is around 0.65 hectare, which is much below the
QDWLRQDO DYHUDJH RI WRWDO KRXVHKROGV¶ ODQG KROGLQJ LQ UXUDO DUHDV KHFWDUHV &6$
DQG :RUOG
Bank, 2013). Agro-ecologically, the Woreda exhibits 93% Weina Dega (Midland) and 7% Dega
(Highland). It has to mean annual temperature ranging from 15.1 c too 20 c, elevation
o
ranging
from 1501 to 3000 masl and average annual rainfall ranging from 1201mm to 1800mm (Woreda
BoFED, 2015).

Regarding coffee production, the Woreda was ranked as highest producer of coffee in Gedeo
zone as out of the total 36 kebeles of the woreda, 33 were coffee producer kebeles. Of this
amount, 26 are registered as high producer kebeles. The total annual production for the year
2015/16 was 49464 quintals of washed coffee and 21082 quintals of unwashed coffee according

11
to the reports of Yirgachefe coffee, tea and spices production coordination department
(CTSPCD, 2017). The figure below shows a map of Yirgachefe Woreda

Figure 2. Map of Yirgachefe Woreda (Source: BOFED, 2016)

12
3.2. Selection Criteria of Coffee Value Chain

The coffee value chain is selected for analysis based on the selecting criteria set by federal TVET
agency. First GTP-2 priority sectors were listed among them the main economic activity in the
case area was identified which is agriculture. In Yirgachefe woreda the livelihood of the society
is mainly dependent on crop production in which coffee plays a dominant role in terms of land
coverage, employment, GDP share, market share, the share of export, growth potential, market
potential, product diversification, conservation importance & women empowerment. Table 1:1
below shows the growth and transformation plan (GTP) priority sectors from which the coffee
value chain is selected.

Table 1. GTP priority sectors

Growth and Transformation Plan (GTP)

Priority Sectors
Agriculture
1 Crop production
Coffee value chain

4.2 Road Transport

2 Industry development
4.3 Shipping Transport
2.1 Textile and Garment 4.4 Air Transport
2.2 Leather Industry 4.5 Energy
2.3 Sugar 4.6 Water and Irrigation
2.4 Cement 4.7 Telecommunication
2.5 Metal Engineering 4.8 Urban Development
2.6 Chemical 5. Trade
2.7 Agro Processing 6. Health
3 Mining 7. Culture, Tourism, & Sport
4 Economy and infrastructure 8. Social
4.1 Rail Transport

13
3.3. Data Types, Sources and Method of Data Collection

Both primary and secondary data were used to conduct this study. Primary data was collected
from various value chain actors including cooperative unions, traders, exporters, producers,
consumers, financial organizations, and ECX. Secondary data was collected from internet
sources, published and unpublished reports. Data have been collected from primary data sources
using data collection instruments such as observation, pre-tested semi structured questionnaire
and check lists. During observation, availability of coffee farm, the farming system, farm tools
used, traders retail shops, and processors processing machines have been observed. Check lists
were used to collect data from agricultural experts of the Woreda and from experts of the
Woreda Trade and Industry Development Coordination Unit, cooperative unions, financial
organization, ECX experts and zonal agricultural experts to have the overall outlook on the flow
of coffee throughout the value chain and the different support services delivered by value chain
actors. Interview method has been employed to collect data from farmers, traders, processors and
consumers using separate questionnaires.

3.4. Sample Size Determination and Sampling method

Regarding sample size, 30 producers, 16 traders including ECX exporters, 3 processors

(industries) and 17 consumers were arbitrarily determined as samples for this particular study
due to time and budgetary constraints. Random sampling method was used to select producer
farmers from 3 kebeles of Yirgachefe Woreda. All 16 traders including ECX exporters,
processors and 17 consumers were randomly selected as samples for this study.

3.5. Data Analysis

Both qualitative & quantitative data collected through various methods were analyzed by using
descriptive method of data analysis. The collected data from both sources were analyzed by
using value chain analysis approach. Value chain map was used to depict the coffee value chain
in Ethiopia explicitly. After collection of data from interview and desk study, the analysis is done
by value chain analysis. Stakeholder matrix was used to show the role of chain supporters take
part in the coffee value chain. Chain mapping is used to show the value chain of coffee in the

14
country. In addition, a comparative analysis of the AS-IS value chain and the benchmark value
chain of coffee had been undertaken.

15
 CHAPTER FOUR
RESULTS AND DISCUSSION

4.1. Benchmarking

The bench mark was selected based on the total production and productivity history of countries.
The following table shows the total production and productivity of the world top 10 coffee
producers including our country Ethiopia

Table 2. 10 coffee producing countries by year 2017/18 in mil bags of 60kg

Name of country Yield per hectare per year Remark

Brazil 61
Vietnam 30
Colombia 13
Indonesia 11
Honduras 7.5
Ethiopia 6.5
India 6
Mexico 5
Peru 4.9
Guatemala 4.1

The above countries also differ in their productivity rate. The following figure also shows
productivity rate of these coffee producing countries in quintal per hectare in order of their
importance. Therefore, brazil is selected as a bench mark for this comparative study to compare
with the existing value chain of coffee (AS-IS) in Ethiopia, especially of Yirgachefe.

16
 45

40

35

30

25

20

15

10

0
am razilaRic sra ala Peruia ad G ia ia ro ia xicoay ia ts
tn b u m d
In gan PN ad se
iop Colomb n n
za coa
tcos d eat th Salvn Me eK
Vie n U o an ry
o E d T
H u In o
G iv

Figure 3. Productivity rate of world coffee producing countries in quintal per hectare

4.2. Value Chain Mapping

4.2.1. Mapping the AS-IS Coffee Value Chain Starting from Yirgachefe

Figure 3 below shows the AS-IS map of coffee value chain which starts from Yirgachefe where
most of the coffee produced in Gedeo zone comes. The map starts from input supply and ends at
export. The coffee that flows through each stage either changes its form or changes its palace
from where it was produced up to export. In each stage, the different functions undertaken by
respective actors have been listed. Each activity being undertaken in the AS-IS value chain is
being compared to figure 4 which is the benchmark (Brazilian experience) and mapped under the
AS-IS map. The gap between Brazilian experience and the AS-IS condition are also identified
and mapped in figure 5. This map shows what is available there in Brazil but not here in
Ethiopia and functions which are available but are not being properly undertaken.

17
Input Supply Land Production Export
preparation
Seed or
Site selection Planting wet processing Dry processing Foreign
seedling Picking Local
importer
wholesalers
Fertilizers Clearing
Slashing, hoeing,
Red cherry Dry cherry
Local Foreign
pruning & Stumping Drying collection collection
retailers wholesalers
Farm tools Uprooting Series1

Fertilizing Pulping Hulling Local

Human Laying out Foreign
resource Consumers retailer
Mulching Fermentation
Ploughing
Foreign
Holing and Washing sieving consumer
Intercropping
Refilling KEY:
Drying
Main Chain

Sorting Sub Chain

Disease & pest
management
Packing

Figure 4. The AS-IS coffee value chain starting from Yirgachefe Storing

Transportation

18
 Harvesting Processing ECX

soil & water

conservation
 4.2.2. The Benchmark Coffee Value Chain: The Case of Brazil

Land International National and

Inputs Production Harvesting Processing International
Preparation Buyer Retail

Chemical Super
Choice of Dry and Wet Method
cleaning of the Markets
Seeds plantation area Planting of coffee Soluble coffee
area beneath the
coffee trees companies

Drying Start on Small

Uprooting and in Covering coffee Harvest Day
Fertilizer situ burning should with plant residues Soda Retail
clear Remove Fermen Companies
per carp
tation Self-service
Piling up soil close
Soil conservation to the coffee tree Machines
Chaff
trunk: removed Washed
Soluble coffee Institutional
Sorted by packers
Nutrition size &
Dried Markets
management Packed
Pits for planting
Coffee Shops
Industrial Processing
Pruning and Roasting
Planting of shade intercropping Companies
trees Bars &
Grading process
Restaurants
Disease and Pest
Roasting
Management
KEY:
Grinding
Preventive
Main Chain
measures against
water deficit Caffeine Reduction
Sub Chain

19
 Picking

Drying
Tools and
Machines

New
technologies
4.3. Description of constraints in the AS-IS value chain relative to the
benchmark

Input supply
Function Problem
Seed: ± Shortage of improved seeds
- Framers of Yirgachaffee mainly use ± Use of Substandard/unspecified seed
74110, 74112, 74,148, 74,158 and varieties
1377 seed varieties ± Skill gap in seed preparation
- Besides, the use local varieties ± Lack of convenient cold store rooms for
- coffee seed's moisture content tested seeds to maintain moisture at an
with knife or tooth appropriate level
± Shortage of coffee research institutes
regionally and nationally
Seedling: ± Manual watering
- Seedbed preparation ± The mortality rate is high in bare root
- Sowing seeds, watering (manual planting
irrigation), sheltering, weeding ± Shortage and expensiveness of plastic (poly
- Bare root seedling bag) supply
- seedlings raised in poly bags ± The mix of d/t varieties due to insufficient
training and follow-up
Fertilizer: ± An inappropriate ratio of components
± Use of organic fertilizer or compost ± An inappropriate layering of ingredients
20 ± Use of locally available materials such ± Lack of transportation facilities to bring
as animal dung, biomass (coffee husk parchments from coffee processing
or parchment), wood ash, forest soil & industries to farmlands.
bamboo & any biodegradable materials ± Poor integration between farmers &
can be used for compost preparation. processors
± Inadequate storage for compost
Farm tools ± Reduced productivity due to manual
± Use of manual tools (watering cane,

21
 slashes, spade type of hoe, three prolonged operation
hoes, pruning shear, hand saw etc) ± Transmission of coffee disease due to
untreated hand tools
± Poor weed control
± Tiresome (time-consuming)
± Poor quality of farm tools
± A poor linkage between farmers & farm
tool suppliers
± An absence of user manual for farm tools
& pieces of equipment
± No irrigation scheme
Human resource
- Farmers - Shortage of trained manpower
- Labourers - The high wage rate for daily laborers
- Experts - Lack of periodic skill gap training for
- Trainers farmers & labor force
- Supervisors - lack of adequate extension service
- Provision of inconsistent supervision by
subject matter specialists & other others

Land preparation
Function Problem
Site selection: ± inappropriate slopes on the selecting areas
± a place rich in decomposed plant pieces ± poor fertility
± having shed trees and windbreaks ± deficiency in the required nutrients and
± sufficient rain distribution minerals
± poor treatment of soil
± frost action and impacts
Clearing ± Tiresome & time taking manual work
- Site clearing by slashing ± Unsafe operation with hand tools
Uprooting

22
- Uprooting is undertaken by using the hoe,
saw, and ax
Laying out
- Laying out is carried out by using hand
tools such as tape rule, line level & pegs
Plowing
± it involves tilling and turns over outer
and inner soil layers for coffee planting
Holing:
± Manual holding 3 months before planting
± 6o cm* 6o cm area of the hole
± Putting top soil & subsoil separately after
holing
± Refilling the topsoil mixed with 2kg of
compost after two months
Production
Function
Planting
± Opening the refilled hole manually
± Planting seedlings by keeping the collar zone
± Mulching operation around a radius of 10cm
from the planted seedling
± Construction of temporary shed in the
direction of sunrise & sunset (in the east-
west direction)
Slashing, hoeing, pruning, Stumping & de-
suckering:
- perform slashing operation three times in a
year
23
± Tiresome & time taking manual work
± Unsafe operation with hand tools
± shortage of appropriate hand tools
± Lack of surveying materials
± Skill gap on laying out & levelling
± No ploughing practice or trend before
holing among farmers in the study area
± Lack of holing machine or equipment
± Inconsistency using a standard of holding
dimension
± Negligence in putting topsoil & subsoil
separately
± Untimely refilling
Problem
± Some farmers are unable to plant the
seedling by keeping the collar zone
± 0RVW RI WKH IDUPHUV GRQ¶W XVH PXOFKLQJ
during planting
± Manual operation
± insufficient &inconsistent supervision
± poor provision of extension services for
farmers/producers
± use of manual tools for all mentioned
operations
± inefficient control of perennial weeds
± some farmers are unable to perform the
- perform hoeing operation twice in a year hoeing operation periodically
- main pruning is performed immediately after ± some farmers are not using a temporary
harvesting (manually operated) shedding
- maintenance pruning performed at list twice ± they are not practicing proper de-
per year suckering; it reduces productivity;
- stamping operation is carried out after ± some farmers show resistance against
harvesting; stamping(rejuvenation) operation
- they are leaving many suckers beyond the ± lack of adequate stamping materials such
optimum as sow & saw blades
± IDUPHUV RIWHQ GRQ¶W XVH GLVLQIHFWDQW
chemicals or
± they do not disinfect their stamping tools
using chemicals or fire before and after
application
Fertilizing: ± 6RPH IDUPHUVGRQ¶WXVH IHUWLOL]HUV
± Use of organic fertilizer or compost periodically (twice a year)
twice per year ± Some farmers use un-decomposed or sub-
- Use of locally available materials such as standard compost
green leaf, crop residue, animal manure,± 6RPH IDUPHUV GRQ¶W XVH WKH UHFRPPHQGHd
biomass (coffee husk or parchment), wood amount (3-5kg per plant per round)
ash, forest soil & bamboo & any ± Unable to use the fertilizer around the
biodegradable materials can be used for canopy & mixed with soil
compost preparation. ± application of compost without
- applying 5kg or 5spade per coffee tree considering the age of the coffee tree as
well as a round of practicing
- farmers in the study area are not
considering C and N ratio properly

24
Mulching:
- mulching used as a control of weeds ± farmers in the study area have not been
- it conserves soil & moisture content, using enough mulching materials other
- it increases soil fertility, than enset by-products;
- farmers in the study area are using ± They are not giving attention regarding
some parts of enset such as leaves, the practicing of mulching and its real
sudo stems importance for the growth of a coffee tree

Soil and water conservation: ± practicing soil & water conservation after
- it involves a construction of planting the coffee seedling rather than
structures such as a trench, micro- before
basin, pet and tie ridges, etc ± low-quality structures that may facilitate
erosion rather than be conserving soil and
water
± some farmers do not use such structures
at all
± having skill gap in designing structures
Intercropping: ± Taro has a negative effect on soil fertility
- Intercropping with haricot bean (for /competition for nutrient & water/ and
improving soil fertility & income generation, other non-leguminous plants
false banana (for shedding & consumption)
& taro (for food)
- Helps for weed control
Disease & pest management: - Untimely uprooting the infected coffee
- Uprooting and burning the infected coffee tree
tree on the spot - Some farmers are using the infected tree
- farmers have been using coffee berry for firewood (not burning at the spot)
disease(CBD) resistant varieties such as - Not treating hand tools with chemicals &
74110 and 74112 fire

25
Harvesting
Function
Picking:
- preparation of picking materials & drying
bed using bamboo basket & other wooden
materials
- Manual picking of red cherry
- Drying or selling red cherries for
processors
- Supplying red cherries to processors within
eight hours after picking
Processing
Function
Red & dry cherry collection:
- Red & dry cherry buying & sorting
- Transporting
Wet & dry coffee processing:
Wet processing:
- it involves pulping or separating clean
coffee from parchment using the pulping
machine with the help of water
26
Problem
- Tedious & time taking a manual operation
- Labour intensive (lack of machine support)
- Picking unripe & over ripped cherries
together with the red cherry
- Some farmers are unable to meet the
delivery time;
- not practicing proper sorting before
processing undergone
- Adulteration with foreign materials &
soaking in water to uplift weight
- Using inappropriate picking materials
Problem
- Lack of transportation facilities &
infrastructure
- Quality problems due to untimely arrival of
red cherry for washed coffee processing
- Processing mixed varieties of coffee
- Quantity based price setting rather than
quality
- Using pulping machines inappropriately and
operating with maladjusted disk type, which
creates quality problems
- Lack of trained machine operators
- Not undertaking pulping or processing
washed coffee in the day at which the red
cherry-picked or collected;
- not applying recirculation effectively so as to

Dry processing:
- it involves milling through which the
removal of husk from the sun-dried coffee
so as to get clean unwashed coffee (Fisher)
- Sieving has been taken place for sundried
coffee to separate byproducts from pure
one using manually
Fermentation:
± Removal of mucilage by soaking with
water in the fermentation tank
Drying:
- Drying bed preparation & cemented drying
floor
- Reduces moisture content in the coffee
bean till it reaches 11.5 to 12%
- mostly the stage of drying testing has been
practiced using teeth
27
save the volume of water needed for wet
processing and reducing the number of
lagoons required for storing liquid by-
products or sewage
- Over & under fermentation
- Some parchments are fermented with the
coffee bean in the fermentation tank
- Manual separation
- Poor standard of hulling machines
- Time taking operation
- not using color sorter machines to save the
effort of manual sorting costs
- inappropriate application of fermentation
time interval in terms of different agro-
ecologies
- inconsiderate of volume, coffee bean
maturity, temperature, altitude and variety
during fermentation
- Insufficient drying bed & cemented floor
preparation
- shortage of drying materials such as mesh
wire sacks made from fibers, yellow plastic
cover sheets, etc
- Lack of uniformity in drying
- Overdrying & under drying
- lack of artificial and solar drying

Sorting
- Manual Separation of foreign materials,
broken bean, beans infected by disease &
insect pests, and other defects from coffee
bean
Packing
± Manual Packing sorted coffee in sacks
(60kg for washed & 85kg for unwashed)
Storage
- Storage of sacks of coffee in a separate
warehouse
- Should free from bad odor
technologies, which are important during a
heavy rainy season of coffee processing
- lack of moisture testing instrument
- Labor intensive and time taking
- tedious manual separating of defects from
the clean washed and unwashed coffee
- Manual operation
- Less accurate
- shortage of packing materials
- Using undesirable bags (plastic bags)
- Some farmers store in rooms where animals
are living
- Not well-ventilated storerooms or
warehouses
- Inappropriate and bottleneck ordering

Marketing
Function Problem
ECX - Insufficient storage units
- Storage services - Wastage during sample taking
- Taking samples - Extra warehousing costs
- Testing & Grading
- Auction (plays an intermediary role between
coffee suppliers & exporters)
Exporters - A blending of differing traits
- Purchasing coffee from suppliers - Unfair payment for different quality
- Selling coffee to foreign importers standards

28
 - Poor linkage with a foreign market
(farmers)
Local wholesalers: - Lack of sustainable provision of
- Purchasing coffee from ECX coffee the retailers
- Selling to retailers - Always selling UG coffee to retailers
Local retailers: - Lack of sustainable provision of
- Purchasing coffee from ECX coffee to consumers
- Selling to retailers - Always selling UG coffee to
consumers

29
 4.4. Analysis of value addition process in the bench mark value chain

4.4 Analysis of value addition process in the bench mark value chain
Input supply

No Value Function Existing Technology

1 Input Access to Agricultural Inputs: In Brazil,

supply cooperatives are the main distribution
channel for lime, fertilizers,
agrochemicals and seeds
1.1 Seed Variety and Smart use of inputs
from research and Technology
centre. i.e.
Resilience to climate change,
Resistance to pests and diseases.
Improve more coffee quality.
1.2 Fertilizer worm compost, bovine
Manure or organic compost.
1.3 Tool and
Machines
1.4 NEW HYBRID COFFEE VARIETIES:
New technologies in less time-clones with
desirable agronomic features like :-
High productivity;
New High quality;
Technologies High vigor;
Resistance to leaf rust;
-Shorter orthotropic inter node length.

30
 Land preparation
No Value Function Existing
Technology
2 Land In the organic management of coffee plantations techniques
Preparation for covering the soil with litter are frequently used (husks
Choice of and various residues from plantations or from the agro
plantation area industry, such as coffee husks, sugar cane fiber, etc); live
Uprooting and soil cover (vegetation that is cultivated or grows
insist burning spontaneously kept covering the soil) and
should clear green fertilizers (plants that are cultivated in the local or
Soil brought from elsewhere, which are incorporated to the soil
conservation with the purpose to preserve the soil fertility, which can be
used as a crop rotation, live-fences, wind breakers,
surrounding strips and road edges). The use of plant
biomass as source of organic matter represents one
opportunity for the producer to decrease their dependence in
relation to the use of manure. Additionally, the soil cover
protects it against erosion and decreases the incidence of
spontaneous plant growth.

31
 Planting
± Slightly acid (pH 5.2 to 6.3) well drained
soil
± Beginning of wet season
± Vertical position or 30° angle
Pits for Spacing - need light for fruit ripening
planting ± Arabica, 1350 trees/ha
Time to fruiting
± Take 3-4 years to obtain mature plant
± Fruit on year old wood

Planting of Grevilea¶ WUHHV VKRXOG EH SODQWHG EH -14 m apart.

Inside the coffee plantation, the tree distribution should
shade trees
be approx. 70 plants/ha.
Protection against frost should start three years after the
trees have been planted.

Production process
No Value Function Existing Technology

3 Production

Slightly acid (pH 5.2 to 6.3) well

drained soil
3.1 Planting of Beginning of wet season
coffee Vertical position or 30° angle
Spacing need
- light for fruit ripening
Arabica, 1350 trees/ha

32
 Time to fruiting:-
Take 3-4 years to obtain mature
plant
Fruit on year old wood
Another way to prevent frost damage is to
cover coffee plants with a thick layer of
plant residues the day before suspected
Covering coffee frost. After the frost risk is over, this
3.2 with plant protective layer should be removed. This
residues procedure promotes complete protection
against severe frost ± it is crucial that
there is adequate covering of the coffee
plantation for it to be effective.
3.3 Piling up soil close
to the coffee tree
trunk:

3.4 Nutrition Prominent role o f In caper:

management
developing, transferring and
assisting farms (especially small
ones) to adopt new technologies.
mulching, irrigation, fertilizer
and pests management; pruning;
etc.

33
 CYCLIC PRUNING PROGRAM:-
Increased average productivity
and reduced labor costs.
Plant training
Coffee sustainable curriculum
pruning and
3.5 implemented
intercropping

3.6 Disease and Pest

management
3.7 Preventive
measures against
water deficit
Harvesting
No Value Function Existing Technology
4 Harvesting With the purpose of facilitating the harvest

4.1 Chemical cleaning and reducing the conditions suitable for the
of the area beneath rapid deterioration of the fruits that fall
the coffee trees either before or during the harvest.

Most done by hand

Materials, such as sacks, spreaders and
clothes must also be acquired in
advance so that the harvest is
completed within a maximum period
of two to three months for large
plantations.
4.2
Ripe berries only Pick every 8-10
Picking
days

34
 Processing
No Value Function Existing Technology

5 Processing Washed ( Wet)

-Water under pressure
-Dried - spread out to dry
± Sun
± Artificial heat
Dry
Dray and wet Initial drying done on trees Spread on
method concrete, tile or matted surface
Immediately after harvesting, coffee is
5.1 VXEPLWWHG WR WKH µZDJJLQJ¶ RSHUDWLRQ
with the purpose of removing gross
impurities that are mixed with the fruits.
The harvested coffee must be placed
immediately in the vehicle, or in sacks, The solar cabinet drier
and transported for drying on terraces. The exell solar drier
Grinding is a means of adding value to a product.
There are basically two types of grinders.
- Manual grinders and motorized grinders.

Manual grinding mills

There are many manual grinders that could be used to
grind coffee.
An experienced operator can grind about 20kg in an
eight hour day. However, this is hard and boring work.
Grading A treadle or bicycle could easily be attached to the
5.2 grinder, which will make the work easier. With this
process
system, one person could grind about 30kg in one day.

35
5.3 Industrial
Roasting (370°F to 540°F)
Processing
Removes moisture
Roasting
Light roast lose 3-5% moisture
and Dark roast lose 8-14% moisture
Caffeine Time (up to 30 min) determines flavor
Reduction Decreasing the amount of
Chlorogenic acid
Trigonelline

36
6 Marketing
90 Coffee Cooperatives in Brazil

Smallfarmershavethesamemarketandte
chnologyaccessthanthebiggerones.

Integrated Solution: inputs, equipment

and services

Cooperatives - Facilitate access

to:(i)domestic and international
markets and (ii) risk management
instruments (hedge).

Adding Value: Investment in coffee

industrialization and Incentive for the
production of specialty coffees.

37
 4.4.1. Gap between AS-IS and the Benchmark
Land International National and
Inputs Preparation Production Harvesting Processing Buyer International
Retail

Chemical
Choice of cleaning of the
Seeds plantation area Planting of coffee area beneath the
coffee trees

Uprooting and in Covering coffee Small

Fertilizer situ burning should with plant residues Retail
Picking Remove Soda
clear
per carp Fermen Companies
tation Self-service
Piling up soil close
Soil conservation Chaff Machines
to the coffee tree Drying Washed
Tools and trunk: remove
Machines d Soluble coffee
Dried Institutional
Sorted by packers
Nutrition Markets
size &
management Packed
New Pits for planting
technologies Coffee Shops
Industrial Processing
Plant training Roasting
Planting of shade
pruning and Companies
trees Bars &
intercropping Grading process Restaurants
Disease and Pest KEY:
Roasting Main chain
Management
Main chain gap
Grinding Sub chain
Preventive
measures against Sub chain gap
water deficit Caffeine Reduction Mismanaged approach

Figure 5. Gap b/n AS-IS & benchmark value chain

38
Dry and Wet Method Super
Soluble coffee Markets
companies

Drying Start on
Harvest Day
Prioritization of constraints
Value chain Problems
Production ± use of manual tools for all mentioned operations
± inefficient control of perennial weeds
± some farmers are unable to perform the hoeing operation periodically
± some farmers are not using a temporary shedding
± they are not practicing proper de-suckering; it reduces productivity;
± some farmers show resistance against stamping (rejuvenation) operation
± lack of adequate stamping materials such as sow & saw blades
± IDUPHUV RIWHQ GRQ¶W XVH GLVLQIHFWDQW FKHPLFDOV RU
± they do not disinfect their stamping tools using chemicals or fire before and after application
± Some faUPHUV GRQ¶W XVH IHUWLOL]HUV SHULRGLFDOO\ WZLFH D \HDU
± Some farmers use un-decomposed or sub-standard compost
± 6RPH IDUPHUV GRQ¶W XVH WKH UHFRPPHQGHG DPRXQW -5kg per plant per round)
± Unable to use the fertilizer around the canopy & mixed with soil
± application of compost without considering the age of the coffee tree as well as a round of
practicing
± farmers in the study area are not considering C and N ratio properly
± practicing soil & water conservation after planting the coffee seedling rather than before
± low-quality structures that may facilitate erosion rather than be conserving soil and water
± some farmers do not use such structures at all
± having skill gap in designing structures
± farmers in the study area have not been using enough mulching materials other than enset by-
products;
± farmers in the study area have not been using enough mulching materials other than enset by-
products;
± They are not giving attention regarding the practicing of mulching and its real importance for
the growth of a coffee tree
± They are not giving attention regarding the practicing of mulching and its real importance for
the growth of a coffee tree
± Taro has a negative effect on soil fertility /competition for nutrient & water/ and other non-
leguminous plants
± practicing soil & water conservation after planting the coffee seedling rather than before
± low-quality structures that may facilitate erosion rather than be conserving soil and water

39
 ± having skill gap in designing structures, some farmers do not use such structures at all
Marketing - Insufficient storage units
- Wastage during sample taking
- Extra warehousing costs
- A blending of differing traits
- Unfair payment for different quality standards
- Lack of sustainable provision of coffee the retailers
- Poor linkage with a foreign market (farmers)
- Lack of sustainable provision of coffee to consumers
Processing - Using pulping machines inappropriately and operating with maladjusted disk type, which
creates quality problems
- Lack of trained machine operators
- Not undertaking pulping or processing washed coffee in the day at which the red cherry-
picked or collected;
- not applying recirculation effectively so as t
- Lack of transportation facilities & infrastructure
- Quality problems due to untimely arrival of red cherry for washed coffee processing
- Processing mixed varieties of coffee
- Quantity based price setting rather than quality
- Manual separation
- Poor standard of hulling machines
- Lack of uniformity in drying
- Using undesirable bags (plastic bags)
- Some farmers store in rooms where animals are living
technologies, which are important during a heavy rainy season of coffee processing
Input supply ± Shortage of improved seeds
± Use of Substandard/unspecified seed varieties
± Skill gap in seed preparation
± Lack of convenient cold store rooms for seeds to maintain moisture at an appropriate level
± Shortage of coffee research institutes regionally and nationally
± An absence of user manual for farm tools & pieces of equipment
± A poor linkage between farmers & farm tool suppliers
± Shortage of trained manpower
± An inappropriate layering of ingredients

40
 - Poor weed control
- Lack of periodic skill gap training for farmers & labour force
- lack of adequate extension service
Land ± inappropriate slopes on the selecting areas
preparation ± poor fertility
± deficiency in the required nutrients and minerals
± poor treatment of soil
± frost action and impacts
± No ploughing practice or trend before holing among farmers in the study area
± Untimely refilling
± Lack of holing machine or equipment
± Inconsistency using a standard of holding dimension
± Negligence in putting topsoil & subsoil separately
Harvesting - Tedious & time taking a manual operation
- Labour intensive (lack of machine support)
- Picking unripe & over ripped cherries together with the red cherry
- Some farmers are unable to meet the delivery time;
- not practicing proper sorting before processing undergone
- Adulteration with foreign materials & soaking in water to uplift weight
± Using inadequate picking materials

41
42
 4.5. Technology Identification
Production 1. Water pump
2. Stamping machine
3. Pruning machine
4. Slashing machine
5. Disease, pest control & prevention techniques
6. Water Pump Operation Manual
7. Intercropping manual
8. Weed control technique
9. User manual for stamping machine
10. User manual for pruning machine
11. Use water pump
12. Use pruning machine
13. Use stamping machine
Marketing 14. Marketing network (between input suppliers, producers, processors,
traders,& ECX)
15. Infrastructure
16. Transportation vehicles
17. Out-grower mechanism
Processing 18. Pulping machine
19. Hulling machine
20. Roasting machine
21. Grinding machine
22. User manual for a pulping machine
23. User manual for a hulling machine
24. User manual for a roasting machine
25. User manual for grinding machine
26. Use pulping machine
27. Use hulling machine
28. Use roasting machine
29. Use grinding machine

43
Input supply 30. Poly bag
31. planter
32. transportation vehicles
33. soil test kit
34. Nursery
35. Tractor Drawn Disc Plough
36. Tractor Drawn Disc Harrow
37. Soil Sampling Manual
38. Land Preparation Manual
39. Seedling Preparation Manual
40. Tractor Operation & Maintenance Manual
41. Farm equipment supply center
Land preparation 42. holing machine
43. tractor
44. site clearing Equipment
45. holing machine manual
46. use site clearing equipment
47. use holing machine
48. uprooting machine
49. use uprooting machine
50. user manual for uprooting machine

44
 4.6. Technology Identification, categorization and Prioritization

Value chain Techno ware (18) Human ware (17) Info ware (22) Orga ware (25)

Production 1. Water pump 1. Seed selection 1. Seed selection manual 1. Irrigation unit
2. Stamping criteria 2. Planting manual 2. Compost

machine 2. planting techniques 3. Compost preparation preparation

3. stamping technique manual unit
3. Pruning
4. pruning technique 4. Stamping manual 3. Nursery center
machine
5. weed management 5. Pruning manual 4. Skill training
4. Slashing
technique 6. Holing manual center
machine
6. Quality compost 7. Compost preparation
making manual

Marketing 5. Marketing
network
6. Out-grower
mechanism
7. Transportation
vehicles
8. Infrastructure

Processing 9. Pulping 7. User manual for a

machine pulping machine
10. Hulling
machine
11. Roasting
machine
12. Grinding
machine

45
8. User manual for a
hulling machine
13. User manual for a
roasting machine
14. User manual for
grinding machine
Input 9. Poly bag 15. Prepare land for 8. Seed Quality Manual 9. Nursery
supply 10. Planter seed production 9. Soil Sampling Manual 10. Soil Analysis

11. transportation 16. Test soil samples 10. Land Preparation Center
and analyze results Manual 11. Research &
vehicles
17. How to establish the 11. Seedling Preparation development
12. soil test kit
nursery Manual center
13. Tractor
18. Project and 12. Organic fertilizer 12. Road access &
Drawn Disc
technology-based Manual infrastructure
Plough training for 13. Machine Operating 13. Coffee
14. Tractor smallholder farmers Manual production
Drawn Disc equipment
Harrow supply center

Land 15. holing 19. Use site selection 14. Site selection manual
preparation machine criteria 15. Holing machine

16. tractor 20. Use holing machine

21. Use stamping
17. site clearing
machine
Equipment

46
 18. Training
center for the
manual use of farm
16. Stamping machine tools
manual

Marketing 22. Marketing

network
23. Out-grower
mechanism
24. Transportation
vehicles
25. Infrastructure

Harvesting 19. Harvesting 22. Use harvester 17. Harvesting machine

machine manual
4.7. Coffee Value Chain Actors and Their Roles

The actors participating in the coffee value chain include farmers (growers of coffee for living- to
use money obtained from sale of coffee for basic needs), middlemen/intermediaries (for collection
of coffee from farmers and suppliers to domestic/local market, exporter or Ethiopian commodity
exchange), unions or cooperatives associations, processors (hullers and wet mills), exporting firms
and local roasting firms.

Input suppliers: Agro-input dealers; agricultural chemicals, seedlings from research centers.
Large-scale producers directly buy from international suppliers whereas the rest get from local
agro-dealers.

Coffee producers: The sector segmented as small-VFDOH FRIIHH IDUPHUV DQG FRIIHH IDUPHUV¶ service
cooperatives, medium-sized producers, and large-scale commercial private enterprises, produce for
local and global market depending on the graded standard of coffee quality inspection body.

Collectors: Buy coffee from smallholder farmers at their locality and supply to processors and have
a crucial role in the coffee assembly and transfer the collected coffee to the processers.

Primary cooperative: Members' collect coffee together as well as purchase others coffee in village
town as a group and supply to a cooperative union.

Processors: Both dry and wet processing are carried out at processing station by processors. It
includes hulling and pulping of coffee and sorting, grading packing and weighing is carried out here
in large scale producers & cooperatives all processing work is accomplished by the producers by
their own processing plants.

Cooperative Union: Collect coffee from primary cooperative members in bulk, makes value
addition practice such as hulling/processing, clearing, sorting and packaging and export directly to
international buyers. In addition, Cooperative Union plays a significant role in the area of market
linkages with international traders, collateral for cooperatives, and technical support to other
cooperative and representing other cooperative members in the marketing process as well.

47
Wholesalers: There are private enterprises and individual that has got legal license to participate in
a coffee transaction according to the regulation set by the country coffee transaction undertaken at
ECX, and they buy processed coffee from collectors and sell the best quality to exporters and the
rejected one for domestic retailer buyers that obtained from large any sources.

Exporters: Involved in the international a transaction marketing operations buying the coffee from
wholesalers at ECX and export the finished clean and standardized coffee bean.

Retailers: The retailers purchase coffee from the large-scale producers, exporters and cooperative
for the international market and the rejected and lower graded coffee supplied to the domestic
market.

Consumers: Ultimate users of coffee that can be international or domestic users

Consumers Input supply

ECX Traders

Coffee Production Value Chain

Producers Processors Exporters

Figure 6. Fish Bone diagram representing actors of the coffee value chain

48
 CHAPTER FIVE
SUMMARY, CONCLISIONS AND RECOMMENDATIONS

5.1. Summary and Conclusion

This study was conducted in Yirgachefe Woreda found in Gedeo Zone, SNNPR, Ethiopia and had
the general objective of analyzing the coffee value chain in the Woreda. The specific objectives
were to identify were to trace the value chain of Yirgachefee coffee AS-IS from input supply to
consumption, to study international best practice to be used as a benchmark to take competitive
advantage, to identify all the constraints that impede the competitiveness of coffee in the case area
in the national & global market and to determine the role of actors in the coffee value chain for the
intervention.

Coffee is the second most traded commodity in the world after oil (Roldán-Pérez 2007). It is one of
the major income generating commodities in Yirgachefe and the Woreda has high potential in
coffee production. It was the highest producer of coffee in Gedeo Zone. The total annual production
for the year 2015/16 was 49464 quintals of washed coffee and 21082 quintals of unwashed coffee.
The data for this study were generated by individual interview using questionnaires and by
observation using observation check list. This was supplemented by secondary data collected from
different published and unpublished literatures. The analysis was made by comparing the AS-IS
value chain with the bench mark value chain which is Brazilian experience. A total of 30 coffee
producer households (26 male headed and 4 female headed) were randomly selected from three
Kebeles found in Yirgachefe. About 16 traders, 3 processors and 17 consumers were also
interviewed.

The study result indicated that that there is a gap between the bench mark value chain and the
existing AS-IS value chain in input supply, land preparation, production, harvesting, processing and
marketing functions. Regarding input supply, Shortage of improved seeds, Bare root seedling,
inappropriate composition in compost preparation, Reduced productivity due to manual operation,
Transmission of coffee disease due to untreated hand tools and Shortage of trained manpower are
identified as constraints on the AS-IS value chain. In land preparation, constraints such as

49
 inappropriate slopes on the selecting areas, Unsafe operation with hand tools, No ploughing practice
or trend before holing among farmers in the study area, Lack of holing machine or equipment,
Inconsistency using a standard of holding dimension and Some farmers are unable to plant the
seedling by keeping the collar zone. Production problems identified are that Some farmers are
unable to plant the seedling by keeping the collar zone, Slashing, hoeing, pruning, Stumping & de-
suckering using PDQXDO WRROV 6RPH IDUPHUV GRQ¶W XVH IHUWLOL]HUV SHULRGLFDOO\ WZLFH D \HDU
6RPH
farmers use un-decomposed or sub-standard compost; farmers in the study area have not been using
enough mulching materials other than enset by-products; intercropping competitive non-leguminous
plants rather than using complementary plants; Untimely uprooting the infected coffee tree. Labour
intensive (lack of machine support) and Picking unripe & over ripped cherries together with the red
cherry are out of harvesting problems. Quality problems due to untimely arrival of red cherry for
washed coffee processing; Processing mixed varieties of coffee; Using pulping machines
inappropriately and operating with maladjusted disk type, which creates quality problems, Manual
separation, Poor standard of hulling machines; inappropriate application of fermentation time
interval in terms of different agro-ecologies; shortage of drying materials such as mesh wire sacks
made from fibbers, yellow plastic cover sheets, and Lack of uniformity in drying are also out of
processing problems. Regarding marketing, Insufficient storage units; Wastage during sample
taking and Extra warehousing costs are identified as constraints in the AS-IS value chain.

5.1. Recommendations

The following recommendations are drown based on the results of the study

1. The study result indicates that most of the farm tools used to produce coffee are traditional
and are operated manually. Therefore, TVET colleges should imitate the technologies
practiced in the bench mark.

2. The study indicated that some farmers are using local coffee seeds due to shortage of coffee
seed supply and there is knowledge gap in coffee production and marketing. Therefore,
coffee, tea and species authority of Yirgachefe woreda, Gedeo zone and SNNPR region

50
 should supply sufficient coffee seeds and mobilize coffee value chain actors starting from
input supply up to consumers.

3. The result also indicated that there is no interdependence among value chain actors.
Therefore, industry owners should support producers and develop out grower scheme in the
process of coffee production.

4. Most of the farmers, industries and coffee traders responded that they are not getting loans
to produce and market coffee. Therefore, financial institutions such as saving and credit
institutions, commercial bank and development bank should facilitate loans for coffee
production and marketing.

5. The observation by transect walk revealed that there is no farm equipment supply center in
WKH ZRUHGD 7KHUHIRUH FRIIHH SURGXFHUV¶ FRRSHUDWLYHV VKRXOG HVWDEOLVK IDUP
WRROV DQG
equipments supply centers.

6. The review of literatures showed that there were limited resources to refer regarding coffee
value chain of Ethiopia in general and Yirgachefe in particular. Therefore, institutes of
technology in universities such as Dila university and Hawassa university should intervene
in research and development to identify constraints in coffee value chain

7. The observation by transect walk have shown that coffee processing industries in the woreda
are not using the byproducts (coffee parchment, husks and liquid wastes) as alternative
energy sources such as ethanol and briquettes. Therefore, the woreda, zonal and regional
mineral, and energy bureau should work in collaboration with coffee, tea and spices
authority on the issue

51
 6. REFERNCES

Agricultural
[1]. economics, UHVHDUFK H[WHQVLRQ DQG IDUPHUV¶ OLQNDJH FRRUGLQDWLRQ
UHVHDUFK
directory. 2012.
[2]. Alemseged Assfa, Getaneh Arega, 2013. Ethiopian Coffee Exporters Association ECEA:
Abraham Tegegn Woldesenbet value chain analysis of vegetables: the case of habro and
kombolcha woredas in oromia region, Ethiopia 2013
[3]. Anwar Abasanbi Abadiga, 2010. Assessment of coffee quality and its related problems in
Jimma zone of oromia regional
[4]. A. Manan, A. Ghafoor1, A. H. Hashmi, M. A. Raza and R. Shafqat, 2013. Marketing
margins analysis of seed cotton in district khanewal, Pakistan, Journal of Science (Vol. 65
No. 2 June, 2013). Institute of Business Management Sciences, at University of Agriculture
[5]. $QQXDO 5HYLHZ $QXDULR 5pWURVSHF§YH 5HWURVSHF§YD
Birhanu Teferra and Shiferaw Bekele, Trondheim, 2009. The effects of fair trade on coffee
[6]. Producer. Case Study of Ethiopian Coffee Cooperatives, the 16th International Conference
of Ethiopian Studies, Ed. By Svein Ege,
[7]. Basic Information and Performance of Agriculture and Rural Development Bureau, 2001
Belli, P., & Tan, J. 1998. Hand book on economic analysis.
[8]. Centre T. T., & Cooperation, R. 2012. Mapping Study on Value Chain Initiatives in ACP
regions Felicity
[9]. Proctor and Valerio Lucchesi Key Findings and Observations Public version revised
August, 2012 Original version October, 2011.
[10]. Canadian Agriculture and Agro-Food in the Global Economy 2013-14. 2013
Coffee Export Marketing In. 2013

52
 7. APPENDIXES

53
Appendix A:
%ª /* /* /á /o /ä /¢ 9oT oU å¥ :é ህ ù: Ù×U pØ¿ ¢ 5’ ź ¢ &U g : üWüÔ: ÜU:
Ôçmሄ¯j&U bé÷B bj Ç*§: ô̄ Ôæÿ8 5†T ¥W ¢ 5’Ž Ô -äק
Ô&U bé÷B bù bªúB
1. ¢ ¬ሞ Ç÷ (¢ Ç ል) ሁ V 8
1.1 ¢ ሚ Xõ% : % ሌ ----------------- ል ማ: &¯W ---------------
1.2 ý 8 --------
1.3  ¯ሜ ---------
1.4 ¢ :ምህ ù : ªô ½ -----------(% o ል -----)
1.5 ¢ Å *@ ሁ V 8 --------
1.6 ¢ )5ÿ * *• : ----- ( ƒW ¯ -------- ---------)
1.6.1 j 1-15 Ž መ: ----------( ƒW ¯ -------- ---------)
1.6.2 j 15-64 Ž መ: ----------( ƒW ¯ -------- ---------)
1.6.3 j 64 Ž መ: % ላ § ----------( ƒW ¯ -------- ---------)
2. ¢ ¨dp X ሚሁ V 8
2.1 ×ላ ላ ¢ መ ø: §˜8 (% ሄ/ù ) ---------
2.2 % &U ¢ 5 ÿU ማï : (% ሄ/ù ) --------
2.3 ም ù : ¢ ሚ ü Ü¢ መ ø: W (% ሄ/ù ) --------
2.4 ም ù 8 ማ R : (kW 8 ል/ሄ o5ù )-----------
2.5 ¢ J /ñ /መህ % ù b ( ል X: ? ሀ.b‰ ለ . b §ª ለ ም
2.6 b ( ል j ሆS ምW Üምjማህ % õ ምW Üም¥ Â ] ሉ ? --------------------------------------------
3. ¢ &U ም ù : ሁ V 8
3.1 &U መምô : jºመõ ምW ¥ ህ ል Žመ: b ×õ ?--------
3.2 %2009 Ž .ም¥ Â [: ¢ ም ù : መ×W (% k/ል ) % g : &U -------------- % ªô &U -------------
3.3 ¢ ም ù : ሁ V 8 j Ž መ: Ž መ: ¢ ሚ¥ ü ¢ ˆ ሀ. g ¢ ßመô ለ.g¢Rü ሐ. ለ Ü̂
¢ ለ ም̂
ም oW ¥ :-----------------------------------------
4. ¢ b መ÷ô : ሁ V 8 (b ¬ ማï % 5j ላ ለ ማ : )
4.1 ¢ ሚ × ሙ : ¢ &U ’ù ¢ :] R̂ˆ ;
ሀ . ¢ b m( 'ˆW ’ù ለ . ም ù : ’ù
4.2 ¢ &U ’ù j¦: ¥ Â ] ሉ ?
ሀ . j ÷ ማï ለ . j Ç*ù U ም ù ም ù ሐ. j ሌሎ B b /b úB መ . j ሌላ ---------------------
4.3 ÷ ‰ ¢ ሚ¥ ’ Å » j ሆ R ለ b ’  ½º6 ል ×U ƒ ª†ል ? ሀ . ƒ º†ለ ሁ ለ . b ል ƒü k̄ ም
4.4. ’ù ¢ ማ¥ ’ Å »U j ሌሎ B 5 ማ: /ù̄ ¿;B ¢ ማ¥ Â [ j ሆ R ¢ ሚ 5o ሉ:W ¢ &U BÇ_ j ¢ :
¥ Â ] ሉ ?-------------------
4.4.1 ¢ ሚ¥ ’ Å »: /¢ ሚ “: BÇ_ ምW Ž§R : R ˆ
ሀ . Ü8 % b ÿù ማª* ላ§¢ 5’ Å ½ ለ . % b ÿù j ô Ù: ¢ 5’ Å ½ ሐ. % ሁለ 6 ም
4.4.2 ለ ም W መ ô Ø------------------------------------------------------------------------------------------------
4.5. ለ ሚ 5o ሉ: ¢ &U BÇ_ ¢ ሚ ል ˆ ¢ ማ ï —Ç¿: % 5 መለ j 5
4.5.1 ¢ ሚ5oሉ% :W ማï ማW Üô Û Ã;‰BW R ላ jˆÌ Ì̄ ¯—Ç¿: % : j ህ ù b j
5 ህ ïñ% ለ Ä̂–ˆÜ
% መ ô /% ማ ÿù b ለ ል ÿ ¥̂ ’ Å º ሉ ሀ.b’Žለሁ ለ . b ለ ’ Å ¿ም
4.5.2 b ለ ’ Å ¿ምmሉ g ù ‰ ¢ ሚìõ% : Ä –U ¢ ሚ×ሙ% : ¢ b ì÷ù ል : jላ §Üý ------
4.5.3 ¢ ማ ï ¥ ÿ ñ÷‰BW ¥ j U R̂ ሉ ? ሀ . b j U Û ለ ሁ ለ.bለjUW ˆ ም
4.5.4 ¢ ማ¥ mU Ŝ j ሆ R ለ ም W ?---------------------------------------------------------------------------
4.5.5 ¢ &U 5m ለ Ì Ì̄ ¯—Ç¿: W : % W : :U Ü ል : ¥ ’ Å ½ ሉ ?
4.5.6 ÃÌ̄ ¯¢ ሚ õ: % ም W R̄ ˆ / ሀ . % g ¿ ለ . % ማ W

54
 * % g ¿ j ሆR ለ b W ¯ÃÌ̄ ¯ÿú ምW ¥ ህ ል ü Ž:U ƒä§×§ል ----------
4.5.7 ¢ ሚ¥ ’ Å »:W Ì Ì̄ ¯j ሚ5o ሉ% : ƒ: % ምW ¥ ህ ል ƒù ªም*ለ ¥̂ ’ Å ½ሉ ?--------
4.5.8 ¢ ሚ õ:W Ì Ì̄ ¯b ÿù g W ®: ¥ ም×ሉ ? ----------------------------------
4.5.9 ¢ 5ÿ÷ˆW ÃÌ̄ ¯% b ÿù þªS ማAU ምW ßም÷ˆ§መል ÿ ሉ ?-----------------------------
4.5.10 ¢ 5’ Å ½ˆW ¢ &U BÇ_ g W ®: §5o ላ ሉ ? ----------------------------------
5 ¢ &U ም ù :U ም ù 8 ማ R : n¿ b ÿú ú ምሁ V 8
ሀ . ም W Úú ¥ m ሄ ሉ? 1. b m ሄ ለ ሁ 2. b ለ m ሄ ም ¯
¢ ሚ¥ m ሄ « j ሆ R % Žመ: ምW ¥ ህ ል Ä– ? -------------
b ለ mሄ ¯ምmሉ ለ ምW ------------
ለ . k:t; ¥ m ሄ ሉ ? 1. b m ሄ ለ ሁ 2. b ለ m ሄ ም ¯
¢ ሚ¥ m ሄ « j ሆ R % Žመ: ምW ¥ ህ ል Ä– ? -------------
¢ ማ¥ m ሄ « j ሆ R ለ ም W? -------------------------------
ሐ. ለ k:t;ምሆR ለ ምW Úú 5Ç( ù ¢ ሚ×ሙ: መïö ¥ ö ¥ ‰B ምW ምW U =ƒ
1. ማ S †ል (Â ½÷ ( ለ 2 Ú: ማ ÿö ¥ • '¥ Â ...ሌሎ B) 2. % ማ W
ሐ. - ô ½ˆW ¢ ×% p ም : ¥ ’ Å ½ ሉ ? 1. b ’ Å ½ ለ ሁ 2. b ላ ’ Å ¿ም
መ. ¢ ማ¥ ’ Â » j ሆ R ለ ም W ? -------------
ì . ¢ ሚ×ሙ: ¢ መ ª( ö ¥ Ž§R : 1. ¢ 5ÿÜú ማ ª% ö ¥ (p ም : Ç ¢ 5*ላ ላ &U  ለ (
ሌሎ B)
2. üü̂ ÷ /n ሚ m ል ማ ª% ö ¥
ô . ¢ ሚ×ሙ: ማª% ö ¥ % Ž መ: W : Ä–gU % ምW ¥ ህ ል መ×W Rˆ ?--------------
ü . ¢ &U % 8U R ÿ : 5( § ÜÜù ¥ ªù Å ሉ ? 1.b ªù Å ለ ሁ 2. b ላ ªù Ç ም
* ¢ ሚ¥ ªù Ã jሆR ለ ¥ :] %̂ 8 % ምW ’® /
* ¢ ማ¥ ªù Ã j ሆ R ለ ም W ?---------
. - ( ል ü *ል §×ማሉ ? 1. g ×መለ ˆ 2. b ል ×ምም
. ¢ ሚ×ሙ j ሆ R ¢ ሚ×ሙ:W ¢ ( ል ü *ል Ž§R : §Üý -----------------
%. Ì —Ì — §×መሉ ? 1. g ×መለ ˆ 2. b ል ×ምም
5 . ¢ Üላ ’§×መሉ ? 1.g ×መለ ˆ 2. b ል ×ምም
= . ¢ &U  ô • ñ÷ §ì÷ሉ ? 1.g ì÷ ለ ሁ 2. b ል ì÷ም
E . ¢ &U g ªÿ ñ÷‰BW §ì÷ሉ ? 1.g ì÷ለ ሁ 2. b ል ì÷ም
*b ል ì÷ምmሉ ለ ምW ? ------------
*g ì÷ለ ሁ mሉ % ምW Ž§R : ’® ? 1. R ሎ b ¬ % መ:m ል 2. % መ È W ል
R . ለ መô Ø: ¢ &U g ªÿ ’®ምo W ¥ 6W §Çለ ð -----------------------
Z . ¢ b ÿù U ˆሃ Ü% ñ÷‰B % ማï ˆÜ ¥ m ሄ ሉ / ሀ.bmሄለሁ ለ.bላmሄም ¯
* ¢ ሚ¥ mሄ « jሆR % ምW Ž§U : ’® ----------------
* ¢ ማ¥ jሄ«jሆS ለ ምW --------------------------
6. ¢ Ç*Ž: b ù + : ሁ V 8
6.1 ለ &U ም ù : ¢ ሚሆ S Ç*Ž;BW (መ Å — መ b ል p ል ÜÜ መል ሚ¥ ù â: ¢ b ል Å
+ —ù Ç ÀT ¥ መ j መ@ ÀT ¥
*â ለ þ:o : ..) ¥ Â Z ሉ ሀ.bÂZለሁ ለ.bለÂ_ም
6.2 ¢ ሚ¥ Â [ j ሆ U j ማ W
6.3 ¢ ማ¥  [ jሆR % &U ምù :U ምù 8ማR : ላ§¢ ሚ¥ ÿ ô̄ 5̂ü  X ምW R̄ ˆ ;--------------------
6.4 ¢ &U 5ô ÿ ም ù 6W ( ለ ÿ:  ለ ( ) j¦: ¥  ] ሉ / ሀ . ÷ j መ’ Å ºˆ&U ለ . jdW « :ö ሐ .
j ሁለ 6 ም መ . ሌላ -----
6.5 5 ô ÿ ም ù 6W ለ ም W Ž ለ ማ¥ ˆሉ 8 ል /§×ሙ% 8 ል /----------------
7. ¢ &U ም ù : b ÿ % ÿ *U ¯ህ ô -ም ù : b ¥ ¥ — ሁ V 8
7.1 ¥ መ ô 6:W ¢ &U ም ù : % ም W Ž§R : ሁ V 8 ¥ ’ Å ½ ሉ / ሀ .
ሀ . % g 6 ለ g W « :ö b ù ( ሉ ለ . % ªô /ºW ÿል &U መል o ሐ . % መ â /% W ¯ Å § ƒå መ ù &
b ’ Å ½ ለ ሁ መ. ሁሉም
7.2 j መ ô 6: ¢ &U ም ù : ም W ¥ ህ ሉ W g¿ (%) /
ሀ . ለ 8×% &U —Ç¿: ¥ ù ( ሉ -------k /ል ለ . ለ ል 8×% &U —Ç¿: ¥ ù ( ሉ -------k /ል ሐ . % መ ù &
መል o ¥ ’ Å ½ ሉ----k /ል

55
 7.3 ለ 8×% &U ¢ ሚለ ሙ: ¢ &U Ž§R : ----------- ሀ . § *@ ለ . §U ö ¥ ¢ 5 ለ ለ ሐ. * ለ 6
¢ 5 ለ ለ መ . ሌላ
7.3 ለ ል 8×% /ºW ÿል &U —Ç¿: ¢ ሚለ ሙ: &U -- ሀ . § *@ ለ . §U ö ¥ ¢ 5 ለ ለ ሐ.
* ለ6¢5ለለ መ . ሌላ
7.4 j )5ÿ * b ( ላ : ˆÜ% ለ ማÄ–&U ለ ማˆW ¢ ሚ¥ mሄ ªማ̂R ˆ / ----------------------------
7.5 ለ ማ %̂ ማ W *m ሄ ¯¢ 5 ለ Ü÷: §X÷†ል ? ለ ም W/
7.6. ¢ ለ ማŴ ñ÷ ¢ ሚ¥ mሄ «: % ምW R̄ ˆ ? ሀ.%g¿ ለ . % ማ W ሐ. % ሁለ 6 ም
7.8 ¢ 5 ላ &U ለ መ ለ ˆ Ç*§: ¥ ô & ¢ 5 ላ †Å §j ÿ ል ‰8 ል ? ሀ . §jÿ ላ ል ለ . b §j ÿ ለ _ ም
* ¢ ማ§j ÿ ል ‰ j ሆ R ለ ም W/..............
7.9 ለ ለ ማñ÷ ¢ ሚ×ሙ: ÿ ---------- ሀ . ù â: ለ . ¢ ማ ª% ö ¥ j ô Ù: ሐ. ¢ âÀT ¥ መ.
ሌሎ B
7.10 ለ 8×% &U —Ç¿: jሆU %  ለ 6U % W : ü Ž: ል £ R : ¥ ù % ሉ ለ ማ¥̂ ù ( ሉ ----------
7.11 ለ ል 8×% &U —Ç¿: jሆU &U W % ምW መል k ¥ ªù ሉ ሀ . % b ል Å/Ü ለ . j ሚ W ; % 5ì÷
b ˆ¯ማ
ሐ. % መø: ላ§% መ ×: መ. j&U ’ላ§ ô Ç jመø: ላ§% መል ም
7.12. ለ &U ማj መ@ ምW Ž§R : ÿ §×መሉ ሀ . % ÀT ¥ ለ . % È 5÷ ሐ . % መ Å ’ W መ. ሌላ
8. ¢ &U ም ù : ƒá‰B
8.1 ¢ &U ’ù መ Ç †Å (*ù /l .Ç ) -------------
8.2 ¢ ማ% ö ¥ /p ም : ƒá (% Ž መ: /ሄ o5ù ) ---------------
8.3 ለ g W o *m) ñ÷ ¢ ሚ¥ ÿል Ç ¢ ü ˆሃ §ል *• : % Žመ: -----------
8.4 ለ ለ ማ¢ ሚ¥ ÿ ል Ç ¢ ü ˆሃ §ል *• : ----------
8.5 ለ ማô̄ ¥ U (b ል Å b ˆ¯ማ ) ማ¥ (ÀT ¥ ù â: )--------------------
9. ¢ Ç*§: ሁ V 8
9.1 ¥ መô 6:W g : &U ለ ማW § ×ሉ ?
ሀ . ÷ ለ ä̂Â % ¥ g ል m ለ ሁ ለ . ለ ም ù : Â % ¥ b ÷' R Å ® ሐ . ለ መ ìô 8… J /ñ /ማህ % ù መ.
ሌላ --------------
9.2 ¥ መ ô 6:W 1l .Ç g : &U % W : *ù § ×ሉ ;
ሀ . ለ b ÷' R Å ® ----------- ሐ. ለ መ ìô 8… J /ñ /ማህ % ù----------- መ. ሌላ --------------
9.3 j ለ § j 5×ý:  œ‰B ለ ማ W * اመ ù Ú ሉ ----------- ለ ም W? ----------------
9.4 ¥ ’ Å »:W ªô /ºW ÿል &U ለ ማW § ×ሉ ?
ሀ . ÷ ለ ä̂Â % ¥ g ል m ለ ሁ ለ . ለ ም ù : Â % ¥ b ÷' R Å ® ሐ . ለ መ ìô 8… J /ñ /ማህ % ù መ.
ሌላ --------------
9.5 ¥ መ ô 6:W 1l .Ç ªô /ºW ÿል &U % W : *ù § ×ሉ ;
ሀ . ለ b ÷' R Å ® ----------- ሐ. ለ መ ìô 8… J /ñ /ማህ % ù----------- መ. ሌላ --------------
9.6. ¥ መ ô 6:W ªô /ºW ÿል &U ¢:§ Úሉ ?
ሀ . % b m ( '%̂ 5j ለ ሉ ¢ መ º መ ö ¥ ªô ½ Ç*§: ማ j ላ : ለ . % ü ÿù ላሉü 'ÿ '‰B ሐ . % መ W Â ¯
ù ×*ˆለ ሚ Â “
መ. ለ &U ማ’ Å ½ dW « :ö ì . % ሁሉም ô . ሌላ ---------
9.7. j ላ § j5×ý:  œ‰B ለ ማ W * اመ ù Ú ሉ ? ----------- ለ ም W? ----------------
9.8. ¥ መ ô 6:W ¢ &U †Å ¢ ሚ ƒ R ˆማ R ˆ ?
ሀ . ÷ ለ . b ÷' R Å ® ሐ . መ ìô 8… J /ñ /ማህ % ù መ. Â % ¥(ላ È :U b ù + : ) ì .መW Ç :
ô. ሌላ
9.9. ¢ ሚ Ø% : +8j መXö ¥ ‰ ምW ¥ ህ ል §ù ል --------- (l .ሜ/ª )
9.10. ¢ Â % ¥ መ ô ½ ¥ Â Z?ሉ ሀ . b ‰ ለ.bላÂ_ም
9.11 b‰mሉ j ማW?--------
10. ¢ Å̄ U o ::ል ሁ V 8
10.1 ¢ *ù̄ b ù + : % 2009 Ž .ም b Ç_ 5†ል ሀ.b‰ ለ . b ላ Â Z ሁም
10.2 b‰j ሉ jማW ? . h ሞመ§o ú §U W
ሀ ለ . j Ú( *ù̄ ሐ . j( W o መ. j J /ñ /ማህ % ù ì .
ሌላ ------
10.3 ምW ¥ ህ ል *ù ( % Ž መ: ) ------------
10.4 * ù̄ ለ ማ ÇZ: ¢ 5×ሙ: ማ ¥ š /† :U ምW R % ù ---------------

56
 10.5 ¢ &U §U መማመም( ለ ሙ¥ ‰B % ù % : o::ል ¥ ªù Å ሉ / ሀ.b‰ ለ . b ¥ ªù Ã ም
10.5.1 ¢ % ሌ ል ማ: ì÷5] % ƒù ምW ¥ ህ ል U : Å̄ U o::ል ¥ ªù Å ሉ -------
10.5.2 ¢ ƒô ¢ &U U §( ለ ሙ¥ ‰B % ƒù ምW ¥ ህ ል U : Å̄ U o::ል ¥ ªù Å ሉ -------
10.5.3 ¢ ˜W ¢ &U U §( ለ ሙ¥ ‰B % ƒù ምW ¥ ህ ል U : Å̄ U o ::ል ¥ ªù Å ሉ -------
10.5.4 ¢ oል ል ¢ &U U §( ለ ሙ¥ ‰B % Žመ: ምW ¥ ህ ል U : Å̄ U o ::ል ¥ ªù Å ሉ -------
10.5.3 ¢ ª÷ል ¢ &U U §( ለ ሙ¥ ‰B % Žመ: ምW ¥ ህ ል U : Å̄ U o::ል ¥ ªù Å ሉ -----
10.6. % &U b መ÷ô :U Ç*§: ላ§ ል ×U b Ç_ 5¥̂ ሉ̂ ሀ . b ˆለ ሁ ለ . b ላ ም̂
10.6.1. m [ j ማ W ----------------
10.7. ሌሎB % &U b መ÷ô :U Ç*§: ላ§Å̄ ¢ ሚ¥ ªù à 5ማ: bሉ ሀ . b ሉ ለ . ¢ ሉም
10.8. m ሉ g R ማ W U =-̂-------------------------------------------------------------
10.9. ¢ ሚ ü Ø: Å̄ ም W R̄ ˆ ----------------------------------
11. % &U b መ÷ô : —Ç¿:U Ç*§: ላ§¢ R % õ መል mምb Å ×ሚ‰BU ¢ 5 5†ሉ BÇúB ምW ምW
U =ˆ /---------------------------------------------------------------------------------------------------------------------------
-------------------------

Appendix B:
Ô&U b÷'‰B (b’ ÅÀB ) ¢ 5’ź äק
1. ¢ Ç ል/®ሞ Ç÷¥ … ሁ V 8‰B

1.1 ¢ ሚ Xõ% : b ¯÷ ----------------- %ሌ ---------------

1.2 ý 8 --------

1.3  ¯ሜ ---------

1.4 ¢ :ምህ ù : ªô ½ ሀ . 1-4 ለ . 5-8 ሐ. 9-10/12 መ. ¯ሎመ ì . Ç̄ö U j”¥ % ላ §

1.5 ¢ Å *@ ሁ V 8 --------

1.6 ¢ )5ÿ * *• : ----- ( ƒW ¯ -------- ---------)

1.6.1 j 1-15 Ž መ: ----------( ƒW ¯ -------- ---------)

1.6.2 j 15-64 Ž መ: ----------( ƒW ¯ -------- ---------)

1.6.3 j 64 Ž መ: % ላ § ----------( ƒW ¯ -------- ---------)

2. ¢ &U Ç*§: ƒá‰B

2.1. ¢ 5ü ማ õ% : ¢ &U W ǯŽ§R : ?

ሀ . ¢ 8×% &U b ’ Å ¿R : ለ . ¢ ªô &U b % Úö R : ሐ . ሁለ 6W ም

2.2. ¢ &U መÇ †Å (g : -------*ù /l .Ç ªô ------*ù /l .Ç )

2.3 j —Ç¿: g j Ç*§: ô̄ ¢ ሚ¥ ÿ ል Ç ¢ ü ˆሃ §ል *• : % Ž መ: -----------(ƒW ¯ ---- --

----)

2.3.1. ሚ¢ ü ˆሀ §ል *• : ------------ Žመ8… ¢ ªመƒ— ƒá -----------

57
 2.3.2. Ä –¥ … ¢ ü ˆሀ §ል *• : ------------ ¢ 1W ¢ ˆሎ o¥ /% ü ˆ -----------

2.4 ¢ b W ¯b መ: ¢ ማ W ¢ l÷§ †Å(ለ 8×% &U —Ç¿: ----------(*ù ) ለ ªô &U —Ç¿: --------
---- (*ù )

2.5 ለ ማô̄ ¥ U (¢ g ¿ ƒW : b ል Å b ˆ¯ማ *:W ÀW ¥ ላ 7o : )

ማ¥ (ÀT ¥ ù â: )-------------

2.6. j ማ’ Å ½ dW « :ö መ Å ’ W g j ¬ላ ም ù : Â % ¥ ô̄ % kW 8 ል /መ lU W : §j ላ ሉ ? ------
------

2.7. ለ â_ U b ˆ÷¿ % b W ¯kW 8ል ምW ¥ ህ ል §j ላ ሉ ? ----------*ù

2.8. %2009 Ž .ም¢ መÅ ’ W l÷§ ምW ¥ ህ ል j ÿሉ ? ---------- *ù

2.9. % &U ú W Ç ሂ ª: ¢ ሚ ƒØ (j8×% &U U jል 8×% &U ማ’ Å ½ dW « :ö ‰B )5ô ÿ ምù :

ም W ¥ ªù Ã8 ል /
ሀ . g Ú ለ ሁ ለ . ለ p ም : —Ç¿: ሐ. ለ g R ù ¼(g 8X ል j ü ል *ù n: ) መ. ለ &U Ã—Ì — ì .
ለ መ X ô. b ል ×ምም
2.10 ¢ ማ§×ሙ j ሆ R ለ ም W /

2.11 % &U ú W Ç ሂ ª: ¢ ሚ×ሙ: ማ W U ማ9ö ¥ ሎB ምW ምW U =ˆ /

ሀ . ለ 8×% &U —Ç¿: -----
ለ . ላ ል 8×% &U —Ç¿: ----------

2.12 g j b ሁ W ¥ ል 8×ሙ: ማ W
/ማ 9ö ¥ ል ÇW ለ &U —Ç¿: % ×ም b ላ Ç ¢ ሆ S : ¢ :`>
U =ˆ /

3. ¢ Ç*§: ሁ V 8

6.1 g : /ºW ÿል &U j ¢ : ¥ Â ] ሉ ?

ሀ . j÷ ማÿ b ምù A ለ . j b ù b ªúB % ÇŸ ሐ . j ህ *ô : ÷ማህ % ù b ( ላ : መ . ሌላ ------------
--

6.2. %2009 Ž .ምምW ¥ ህ ል &U “ (g : ------------- kW 8 ል ºW ÿ ል ---------- kW 8 ል)

6.3. j 5Â • &
ˆ U ¢ 5’ Å º¢̂ 8×% U ¥ ል 8×% &U መ×W (kW 8 ል)

6.3.1. j5Â • ĝ : &U ምW ¥ ህል ¢ 8×% &U 5’ Å º ? -------------- (kW 8 ል)

6.3.2. j5Â • º̂W ÿል &U ምW ¥ ህ ል ¥ ል 8×% / ù &U 5’ Å?º-------------- (kW 8 ል)

6.4. ¢ ሚ  “:W ¢ &U †Å ¢ ሚ ƒ R ˆማ R ˆ ?

ሀ. ÷ለ . bù bõ ሐ. መ ìô 8… J /ñ /ማህ % ù መ. Â % ¥(ላ È :U b ù + : ) ì .መW Ç :
ô . ሌላ

6.5. ¥ ’ Å »:W ¢ 8×% /¥ ል 8×% &U ለ ማW § Úሉ ?

ሀ . % d:¨ì¥ ም ù :  % ¥ ለ ሚ ÿ 5 ላ l‰B ለ . Ü8 ለ ä̂ % ¥ (fo ù : )

58
 6.6. ¥ ’ Å »: ¢ 8×% &U % d:¨ì¥ ምù :  % ¥ ¢ 5ü ת̂ô ½ ;
ሀ . ªô ½ 1------- (kW 8 ል) ለ . ªô ½ 2 ------- (kW 8 ል) ሐ. ªô ½ 3 ------- (kW 8 ል) መ. ªô ½ 4 -------
(kW 8 ል)

ì . ªô ½ 5 ------- (kW 8 ል) ô . j ªô ½ % 8B ------- (kW 8 ል)

6.7. ¢ 5×ü ˆW ªô ½ ¥  Zw%̂ ምW ምoW ¥ : Rˆ ? -----------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
------------------------

6.8. ¥ ’ Å »: ¥ ል 8×% &U % d:¨ì¥ ምù :  % ¥ ¢ 5ü ת̂ô ½ (Q1-Q5; <Q5)

ሀ . ªô ½ 1------- (kW 8 ል) ለ . ªô ½ 2 ------- (kW 8 ል) ሐ. ªô ½ 3 ------- (kW 8 ል) መ. ªô ½ 4 -------
(kW 8 ል)

ì . ªô ½ 5 ------- (kW 8 ል) ô . j ªô ½ % 8B ------- (kW 8 ል)

6.9. ¢ 5×ü ˆW ªô ½ ¥  Zw%̂ ምW ምoW ¥ : Rˆ ? -----------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
--------------------------

6.10. ¥ ’ Å »:W 1ÿô ýላ ¢ 8×% &U % W : *ù § ×ሉ ? (1ÿô ý ላ - 17 l ሎ Ç÷ም )

ሀ . ªô ½ 1------- (*ù ) ለ . ªô ½ 2 ------- (*ù )) ሐ. ªô ½ 3 ------- (*ù ) መ. ªô ½ 4 ------- (*ù )
ì . ªô ½ 5 -------(*ù ) ô . jªô ½ % 8B ------- (*ù )

6.11 ¥ ’ Å »:W 1ÿô ýላ ¥ ል 8×% &U % W : *ù § ×ሉ (1ÿô ý ላ - 17 l ሎ Ç÷ም )

ሀ . ªô ½ 1------- (*ù ) ለ . ªô ½ 2 ------- (*ù )) ሐ. ªô ½ 3 ------- (*ù ) መ. ªô ½ 4 ------- (*ù )
ì . ªô ½ 5 -------(*ù ) ô . jªô ½ % 8B ------- (*ù )

6.12 j ለ § j 5×ý:  œ‰B ለ ማ W * اመ ù Ú ሉ ? ----------- ለ ም W? ----------------

6.13. ¢ Â % ¥ መ ô ½ ¥ Â Z?ሉ ሀ . b ‰ ለ.bላÂ_ም
6.14. b‰mሉ j ማW?--------

6.15. ለ &U W ǯñ÷ *ù̄ ƒ ¥̂ ሉ̂ ? ሀ.b‰ ለ . b ላ ም̂

b‰mሉ j ማW---------------------------------------- ምW ¥ ህ ል *ù ---------------------------------------------

6.16. j&U Ç*§: Åù 5¥ §˜ ል ×U ƒ ¥̂ ሉ̂ ? ሀ.b‰ ለ . b ላ ም̂

6.17. ¢ W ǯÿ¯b ƒÚÜ ሁV 8 ምW §መ ላ ል ? ሀ . b ¯m ሚ ለ.መm j ለ] ሐ. ላል
6.18. ¢ *: ማô Å Â âb ü ÚÜU  ÿ̄ : ሁV 8 ምW §መ ላ ል ? ሀ . b ¯m ሚ ለ . መ mj ለ ] ሐ. ላ ል
6.19. ¢ *: ማô Å Â âÿ ¥ ü ý̄ ƒª ’ መS ምù : —Ç¿:U Ç*§:  *5¥̂ ሉ̂ ? ሀ.b‰
ለ . b ላ ም̂
b‰mሉ ለ ም W? ----------------------------------------

59
6.20. % Ç*§: ù Ž6 ¥ Â ×መ‰: 5Çú:U መል m ም b Å Ú ሚም W ¯U =ˆ ? -----------------------------------
---------------------------------------------------------------------------------------------------------------------------

7. 8. %&U b’Ž½:U Ç*§: ላ§ ¢R%ሩ መል m ም bÅ×ሚ‰BU ¢5 ስ 5†ሉ BÇ ሮ B ም W ም W U=ˆ /---------------

--------------------------------------------------------------------------------------------------------

Appendix C:
Ôd:¨ì¥ éù:  %¥ -¬× ùWâ %&U l̂ÙU ñ÷ קÔ5üçõ ÇÔÿ+B ¢ ô% Ô -äק

1. ¢ Ç ል/¬ሞ Ç÷¥ … ሁ V 8

1.1 b ¯÷ - o ል ል -------------------˜W ------------------ƒô ----------------

1.2 ¢ Â Ÿ/ä5ƒm§ % መሆW ¥ ለ ‰: ¢ ñ÷ ል ም¯ምW ¥ ህ ል Rˆ -----------

60
 1.3 ý 8 ----------

2. ¢ ምù :  % ¥ ¢ መÅ ’ W b  ል Çሎ: b ü ÚÜñù Ž6 ምW §መ ላ ል ?
ሀ / % Üõ ÈW¢ ሚ 8§ Rˆ ለ / BÇúB ¥ ሉ % : Rˆ
2.1. % Üõ ÈW¢ ሚ 8§ Rm̂ ሉ ¥  Zˆ× ሜ8 §Çለ ðል W

-------------------------------------------------------------------------------------------------------------------------------

2.2. BÇù b ለ mሉ ¥ j 5ለ ˆW BÇù §Çለ ðል W --------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------

2.3. j ላ § bለ ላ ሏ=B̂ÇúB መ:ሄ ‰BW '×ýል W --------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------

3. ¢ ምù 6W b Ü ¢ ሚÿôሙ: j ¢ : Rˆ ?
ሀ . j መ lU ላ § /j Ü* ማ¥ ñ÷ ለ . % መ Å ’ W j5j ማ=ˆ ሐ. j ሁለ 6 ም
3.1. ለ ም W?

-------------------------------------------------------------------------------------------------------------------------------

3.2. % b ¬ý ¢ &U Ç*§: ù Ž: ¢ &U g j መ ß መ ù b W ú ù ¢ መ Å ’ W b  ል Ç ሎ 6 ¢ ም ù : «mW

ማ ×% Bሏል ƒ§ ?
ሀ / b‰b B ሏል ለ / ¢ ለ ም b ላ @ለ ም
3.3. j ላ § ለ ô % Ü̂¥ መል ‰ b ላ @ለ _ ም j ሆ R ም oW ¥ 6W 'Â ል ø ል W -----------------------------
---------------------------------------------------------------------------------------------------------------------------

4. ¢ መÅ ’ W b  ል Çሎ: b ü Ú؃áW ለ መR b Bሏል *ለ ¥̂ምU ሉ ?

ሀ / b‰b B ሏል ለ / b ላ @ለ ም
4.1. b ላ @ለ ምmሉምo W ¥ :‰W &Â ል ðል W ---------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------

5. ¢ መ Å ’ W b  ል Ç ሎ: b ü ÚØ¢ &U Ü÷:W ማ ×% b B ሏል *ለ ¥̂ ም U ሉ ?

ሀ / b‰b B ሏል ለ / b ላ @ለ ም
5.1. b ላ @ለ ምmሉመ:ሄ ም̂W R̄ ˆ ? -------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------

6. % 5ƒm§R :‰ ¢ b ÷'‰BW &U % ምW Ž§R : ሁV 8 Rˆለ ላ l‰B ¢ ሚ Ø: ;

ሀ . % መ Å ’ W j 5j መ=ˆ ለ . % መlU ላ§% ሚm ሄ ¯Ç*§:
6.1. % ¢ :] b̂ Ü ¢ 5 ለ Ü ም§Â Z ል ; --------------------------------------------------------------------------
------------------ 6.2 ለ ም W-------------------------------------------------------------------------------------

7. jôል U ñ÷ Åù 5¥ §˜መW Ç 8…ምሆS መW Ç 8… ¥ ል ሆS 5ማ: Å̄ b ù̄  ¥̂ ሉ̂

ሀ.b‰ ለ . b §ª ለ ም

61
 7.1 መል ‰ b‰jሆU j¢ :`> መ ö ¥ );B -------------------------------------------------------------------

7.2 ም W Ž§R : Å̄ B b  [ ----------------------------------------------------------------------------

7.3 % &U l̂ ል U ñ÷ ላ§ ል ×U ƒ ª¥̂ ƒ ሉ ሀ.b‰ ለ . b §ª ለ ም

7.4 ¢ ƒlል U ÷ ÿ¯b ƒÚÜ ሀ . b ¯m ሚ ለ.መm jለ] ሐ. ላ ል
8. ƒlል ሆR %̂ መñô ; ምW Ž§R : ƒá‰BW ¥ ƒÚሉ ---------------------------------------------------------

8.1 %2009 ምW ¥ ህ ል ƒáb ‰Ø /ለ 8×% -----------------* ù ለ ል 8×% ------------*ù )

8.2 %2009 % b W ¯kW 8 ል ም W ¥ ህ ል Ü ል Â'b  [ (j8×% -----------------* ù j ል 8×% -----*ù )

8.3 %2009 Ž .ምôል ሆR ም̂W ¥ ህ ል &U b Ø ( ¢ 8×% --------k /ል ¥ ል 8×% ------------k /ል )

9. % &U Ç*§: ƒlል U ñ÷ ላ§¢ R % õ መል mምb Å ×ሚ‰BU ¢ 5 5†ሉ BÇúB ምW ምW U =ˆ /--------

----------------------------------------------------------------------------------------------------------------------------

62
Appendix D:
For whole sellers
1. Sex 1. Male 2. Female
2. Age _______ (years)
3. Marital status 1. Married 2. Single 3. Divorced 4. Widowed
4. Household size ______ (male ______ female ______)
5. Experience ________
6. Education _____ (graders)
7. What type of coffee do you buy?
1. Washed
2. Unwashed
3. All
8. From where do you get the coffee you buy?
1. ECX
2. Individual farmers
3. Cooperatives
4. All
5. Others _____________________________________
9. How many quintal of coffee did you buy in 2009 E.C from
1. ECX (washed _______ unwashed _____)?
2. Individual farmers (washed _______ unwashed _____)?
3. Cooperatives (washed _______ unwashed _____)?
4. Others
10. At what price did you buy 1 quintal of coffee in 2009 E.C. from
1. ECX (washed _______ birr unwashed _____ birr)?
2. Individual farmers (washed _______ birr unwashed _____ birr)?
3. Cooperatives (washed _______ birr unwashed _____ birr)?
11. For whom did you sale your coffee in 2009 E.C and quantity sold?
1. Retailers (washed _______ qt unwashed _____ qt)?
2. Processors (washed _______ qt unwashed _____ qt)?
3. Consumers (washed _______ qt unwashed _____ qt)?
4. Others ___________________________

12. Where do you sell your coffee ?

1. At my shop
2. At market place
3. At retailers shop
4. At processors shop
5. Others _____________________________
13. What are the different costs you incurred in whole selling in 2009 E.C?
1. Transport cost ________ birr
2. Warehouse cost ________ birr

63
 3. Packaging cost _________ birr
4. Advertising cost ________ birr
5. Tax _______ birr
6. Others _______________________________________________________
14. What is your selling price of 1 qt of coffee when you sell to
1. Retailers (washed _______ birr unwashed _____ birr)?
2. Processors (washed _______ birr unwashed _____ birr)?
3. Consumers (washed _______ birr unwashed _____ birr)?
4. Others
15. Did you get any training regarding your business (wholesaling)? 1. Yes 0. No
16. Have you needed credit for coffee wholesaling in 2009 E.C? 1. Yes 0. No
17. Did you receive credit for your business (coffee wholesaling?) 1. Yes 0. No
18. If yes how many birr? __________ birr
19. Do you have license in coffee wholesaling? 1. Yes 0. No
20. If no why? _____________
21. If yes, how do you state the licensing process? 1. Bureaucratic 2. Easy 3. Moderate
22. What are the different opportunities in coffee wholesaling?
______________________________________________________________________________
23. What are the different constraints in coffee wholesaling?
_________________________________________________________________________________
___________________________________________________________________________

64
Appendix E:
For Retailers
1. Sex 1. Male 2. Female
2. Age _______ (years)
3. Marital status 1. Married 2. Single 3. Divorced 4. Widowed
4. Household size ______ (male ______ female ______)
5. Experience ________
6. Education _____ (graders)
7. From where do you get the coffee you retail?
1. Farmers
2. Cooperatives
3. Wholesalers
4. Others _____________________________________
8. How many quintal of coffee did you buy in 2009 E.C from
1. Farmers _________ quintal
2. Cooperatives _________ quintal
3. Wholesalers _________ quintal
4. Others _____________________________________
9. At what price did you buy 1 quintal of coffee in 2009 E.C. from
1. Farmers _________ birr
2. Cooperatives _________ birr
3. Wholesalers _________ birr
4. Others _____________________________________
10. For whom did you sale your coffee in 2009 E.C and quantity sold?
1. Processors_______ qt)?
2. Consumers _______ qt)?
3. Others ___________________________
11. Where do you sell your coffee ?
1. At my shop
2. At market place
3. At processors shop
4. Others _____________________________
12. What are the different costs you incurred in whole selling in 2009 E.C?
7. Transport cost ________ birr
8. Shop rent cost ________ birr
9. Packaging cost _________ birr
10. Advertising cost ________ birr
11. Labor cost _________ birr
12. Tax _______ birr
13. Others _______________________________________________________
13. What is your selling price of 1 KG of coffee when you sell to
5. Processors _______ birr?
6. Consumers _______ birr?

65
 7. Others
14. Did you get any training regarding your business (retailing)? 1. Yes 0. No
15. Have you needed credit for coffee retailing in 2009 E.C? 1. Yes 0. No
16. Did you receive credit for your business (coffee retailing?) 1. Yes 0. No
17. If yes how many birr? __________ birr
18. Do you have license in coffee retailing? 1. Yes 0. No
19. If no why? _____________
20. If yes, how do you state the licensing process? 1. Bureaucratic 2. Easy 3. Moderate
21. What are the different opportunities in coffee retailing?
________________________________________________________________________________
______________________________________________
22. What are the different constraints in coffee retailing?
________________________________________________________________________________
__________________________________________________________________________

66
Appendix F:
For Hotels and Road side coffee stalls(boilers)

1. Sex 1. Male 2. Female

2. Age _______ (years)
3. Marital status 1. Married 2. Single 3. Divorced 4. Widowed
4. Household size ______ (male ______ female ______)
5. Experience ________ (years)
6. Education _____ (grade)
7. From where do you get the coffee you buy?
1. Farmers
2. Retailers
3. Wholesalers
4. Others __________________
8. How many quintal of coffee did you buy in 2009 E.C from
1. Farmers ___________ (quintal)
2. Retailers ___________ (quintal)
3. Wholesalers __________ (quintal)
4. Others __________________
9. At what price did you buy 1KG of coffee in 2009 E.C. from
1. Farmers _________ (birr)?
2. Retailers ____________ birr)?
3. Wholesalers _____________ birr)?
4. Others ____________
10. How many cups of coffee do you get from 1 KG of coffee? __________ cups
11. what type of coffee boiler do you use to boil coffee? 1. Pot (Jebena) 2. Machine
12. what is purchasing cost of 1. Local pot (Jebena) ______ birr 2. Machine ______ birr
13. for how long do you use your boiling material? 1. Pot (Jebena) __years 2. Machine ____ years
14. What are the different costs you incurred in processing coffee in 2009 E.C?
14. Transport cost ________ birr
15. Machine cost ________ birr ( rent/depreciation cost ______)
16. Cups cost _________ birr
17. Water cost ________ birr
18. Labor cost ________ birr per year
19. Tax from coffee sale _______ birr
20. Others _______________________________________________________
15. What is your selling price of 1cup of coffee? ______ birr
16. Did you get any training regarding your business ? 1. Yes 0. No
17. Have you needed credit for coffee processing in 2009 E.C? 1. Yes 0. No
18. Did you receive credit for your business? 1. Yes 0. No
19. If yes how many birr? __________ birr
20. Do you have license in coffee processing? 1. Yes 0. No
21. If no why? _____________

67
 22. If yes, how do you state the licensing process? 1. Bureaucratic 2. Easy 3. Moderate
23. What are the different opportunities in coffee sale ?__________________________________
24. What are the different constraints in coffee sale? _________________________________

Appendix-G
Value Chain Selection Criteria Checklist
5=very high 4=high 3=medium 2=low 1=very low
NO CRITERIA RATING
Coffee En Mai Be Barl Rem
set ze an ey ark
1 Size of Sub sector 5 4 3 3 2
This is focus given to a subsector in enhancing the
employment opportunity, GDP share in the economy
and the market share.
2 Employment 5 3 2 3 2
For countries like Ethiopia, unemployment is a critical
problem. The selected value chain will create a
considerable amount of job opportunities and absorb
unemployed labor force. Thus, beyond supplying of
quality products a value chain expected to reduce
unemployment.
3 GDP Share 5 4 1 1 1
An Economic development of a country is the total
sum of GDP shares for every product/subsector. A
product that has a greater GDP share in an economy is
more likely to create jobs and alleviate poverty. A
selected value chain should be those
products/subsectors with a relatively higher share of
national GDP

68
4 Market Share 5 3 1 1 1
If a product is not competitive in quality and price on
the market to satisfy customer requirements it no
longer exists in the market. So the value chain we are
in a position to develop should have a sustainable and
significant market share.
5 Share of Export 5 2 1 1 1
Shares of the product/subsector from the country`s
total export of goods and services.
6 Growth Potential 5 4 2 2 2
The mathematical probability that a business will
become larger.
7 Market Potential 5 4 3 3 2
The estimated total sales revenue of all suppliers of a
product in a market during a certain period, for both
domestic and export scenario.
8 Factor Condition (human, material, knowledge, 5 4 2 2 2
capital, infrastructure)
Other condition factors related with human resources,
the accessibility of the materials, knowledge imposed,
amount of capital and infrastructure in producing the
product and services should be considered in selection
of value chain development.
9 Product Diversification 5 3 2 2 2
Enterprise is expanding opportunities through
additional market potential of an existing product.
Achieved by entering into
additional markets and/or pricing strategies.
10 Potential impact to MSE 5 3 1 1 1
Promotes the establishment of MSEs by creating jobs,
and strengthening the linkages with large industries

69
11 Conservation importance 5 4 1 4 1
A production of environment friendly product and
services, business operation with the utmost
consideration of the environment and natural resources
12 Women Empowerment 5 4 1 2 2
Women's empowerment, referring to
the empowerment of women in our present society,
has become a significant topic of discussion in regards
to development. Equal rights for men and women as a
basic human right is given great considerations. The
value chain that we are going to select should consider
gender equal opportunity
TOTAL RATING: coffee=100%, Enset=70%, Bean=42%, Maize=33%, Barely=32%
Comments: Based on the above selection criteria coffee is leading crop in Yirgachefe Woreda.
1.

70
71