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

Year 2019, Volume: 3 Issue: 2, 225 - 232, 23.12.2019

Arjun Prasad Khanal Suman Khanal Shiva Chandra Dhakal Rishi Ram Kattel Jay Prakash Dutta

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

Supporting Institution

Ministry of Agriculture and Livestock development, Singhadurbar, Kathmandu, Nepal

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