Quarterly Journal of International Agriculture No. 2/05
Economic analysis of farmers’ preferences for coffee variety attributes: lessons for on-farm conservation and variety adoption in Ethiopia
Edilegnaw Wale
Alemaya University, Ethiopia
Karin Holm-Müller
University of Bonn, Germany
John Mburu
Center for Development Research (ZEF), University of Bonn,
Germany
Manfred Zeller
University of Goettingen, Germany
Abstract
The knowledge to-date recaps Coffea arabica to have originated in
Ethiopia and its genetic diversity in the country is proved to be high.
However, this diversity is threatened due to policy, institutional and
market failures. Despite a tremendous attention to salvage this loss
through on-farm conservation, there is no adequate contextual research
done as to how this strategy can be harmonized with farmers’ livelihood
strategies and how policy can face the potential trade-off with modern
technology adoption.
Understanding farmers’ preferences for variety attributes is important
in the implementation of sensible on-farm conservation and variety
adoption strategies since it offers policy directions to harmonize
trade-offs and capitalize on synergies. To this end, the paper studies
farmers’ preferences for distinct coffee variety attributes – yield,
yield stability, marketability and environmental adaptability. Using a
utility maximization framework and drawing on Lancaster’s
characteristic model, farmers’ preferences for variety attributes are
derived as an outcome of their livelihood decisions. Following this, a
multinomial logit model is estimated. The data come from 266 coffee
growing farmers in southwestern Ethiopia. The results have shown
various factors inducing or deterring farmers’ preferences for the
studied variety attributes. Based on the empirical results, the paper
derives policy implications on on-farm conservation and improved coffee
variety adoption in Ethiopia.
Keywords: coffee diversity, Ethiopia, attribute preferences, on-farm conservation, variety adoption
Vol. 44 (2005), No. 2: 121-139