ASSESSMENT OF THE CHALLENGES OF COFFEE AND OIL SEED EXPORTERS IN ETHIOPIA

Abstract

International trade, if properly managed, can contribute to a nation’s economic growth. One of the reasons for international trade is the presence of the imbalance of natural resources of countries. The efficiency of a given country's international trade is highly dependent on the efficiency of the participants of in this sector. One of the main actors in international trade is exporters. The main purpose of this research was to assess the major challenges of coffee and oil seed exporters in Ethiopia. Among different barriers, this study aimed at identifying the major challenges in the area of foreign management, identifying institutional obstacles, challenges related to organizational capacity, and logistics-related challenges. From different scholars and research, major variables are self-extracted in each category and prioritize the problem of coffee and oilseeds exporters. Despite the fact that these variables are also used in other research pilot studies were conducted to communicate with respondents before the questionnaire was distributed for the data collection process. To get a clear picture of the challenges Non-probability sampling method called convenient sampling technique used. The data analysis process completed using SPSS statistical packaging software and descriptive statistics relative importance index (RII) methods of analysis used to prioritize the challenges faced by both exporters. The findings showed that most exporters are unable to generate profit from this sector and they are doing business to get foreign currency to import different materials because of a high transaction cost in local and international transportation, lack of financial resources, lack of researching and market segmentation were identified as serious factors which influence this sector. Therefore government and other concerned stakeholders should address the identified problems accordingly by considering the dynamics of the global market.