COFFEE MARKETING SYSTEM IN ETHIOPIA: THE CASE OF SIDAMA ZONE
ADMASSU SHIBRU, KASSA BELAY
Abstract
The subject of this study was the coffee marketing
system in Sidama zone of southern Ethiopia. The results of the study show that
in the 1970's and 1980's the marketing system was highly regulated by the Government.
However, since the early 1990's various reform measures have been implemented
in order to liberalise the market. Moreover, the study reveals that coffee passes
through both legal and illegal marketing channels. Finally, the integration
of Sidama market and the Addis Ababa auction market was analysed using co-integration
and error-correction method. The results indicate that integration between the
two markets exists. However, the hypothesis of full market integration is rejected
Key words:
Coffee, marketing, prices, integration, channels