Value chain analysis of coffee: A story on journey of cherry from production site to consumer cup

Abstract

This study was conducted in 2017 AD to analyze the value chain of coffee in Gulmi and Palpa districts of Nepal. The general objective of this study was to analyze the existing value chain/market status of coffee and to develop strategies in enhancing the competitiveness of coffee sector. One hundred and sixty coffee producers were selected by a three- stage sampling procedure. Furthermore, 10 input suppliers, 10 traders and 5 consumers were randomly selected and interviewed from each districts. The benefit cost ratio of coffee producers and collectors were found 2.49 and 1.53 respectively. The producers share in consumer’s price was found 64.05%. The gross contribution margin of collectors, processors and retailers was found 30.51%, 39.00% and 0.90% respectively while the total gross marketing margin was found 35.94 %.Coffee is major commodity for income generation so better technologies on production, marketing and value addition should be imparted to farmers.

Keywords

• Benefit cost ratio,coffee,gross contribution margin,producers share,value chain

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