Abstract:

Ethiopia
is producing ranges of coffee varieties with unique flavors, quality and
traditional organic and shade grown coffee by smallholder farmers for which
actors including cooperatives are involved in adding values at each stage of
the activities of the value chain. This study focused on examining the linkage
between cooperatives and other actors in coffee value chain, and analyzing
factors influencing the effectiveness of cooperatives in coffee value chain.
The study was conducted in Sasiga district. All the five primary coffee
cooperatives were selected purposely and 134 respondents were selected using PPS sampling technique. Both
Primary and secondary data collection methods were used. The data was analyzed
using descriptive statistics and Binary logistic regression model.
The result of the descriptive statistics showed that there was strong linkage
among chain actors. The Binary
logistic regression model revealed that trust, technology, market
information and training has statistically significant positive partial effect
on the effectiveness of cooperatives in coffee value chain at P-value of less
than 5% while timely delivery of products and financial support have
statistical significant positive effect on the effectiveness of Cooperatives in
coffee value chain at p-value of between 5%and 10%. Though the result of the
descriptive statistics showed that there is strong linkage among chain actors,
greater attention should be given by all stakeholders to further strengthen the
linkage by minimizing the adverse effect of practices which erodes members
trust and affects the effectiveness of cooperatives in coffee value chain. On
top of these, the chain actors should exchange technologies and market
information to increase their competitiveness. Sustained training has to be
offered to cooperatives based on need assessment to enhance their technical
capacity to process coffee for adding value. Similarly, coffee cooperatives
financial base has to be strengthened through promoting self-financing
strategies and interventions.

Key words: Coffee,
Cooperative, Effectiveness, Linkage, Value chain