ASSESSMENT OF COFFEE EXPORT PERFORMANCE, CHALLENGE AND PROSPECTS: THE CASE OF ETHIOPIAN TRADING BUSINESSES CORPORATION

Abstract

Coffee has pivotal role in the Ethiopian economy. It is the main source of foreign exchange. This research project paper entitled Assessment of Coffee Export Performance, Challenge and Prospects: a case study of Ethiopian Trading Business Corporation”. The main objective of this study is to examine the performance and major determinants of Ethiopian Trading Businesses Corporation’s coffee export. The corporation’s coffee export marketing trends and the type of promotion tools it employed have been assessed. Descriptive statistics were employed for data analysis. To carry out this study both primary and secondary data have been used. The existing literatures were investigated. To collect the primary data from the corporation, questionnaire has been employed. In addition to this, an interview was conducted face-to-face with the corporation’s planning directorate director, planning team leader and export marketing team leader. The data were analyzed by applying SPSS software program. The major determinants of coffee export performances of the corporation are internal and external. Accordingly, these results show that impracticable export marketing research, lack of appropriate pricing strategies and using ineffective promotional methods are internal determinants of coffee export performance of the corporation. The presences of a higher competition from domestic and abroad competitors, higher freight cost, legal and government policy like; long and sophisticated export procedures are external determinants of export performance of the corporation. The corporation’s sales volume was fluctuating and decreasing for the last seven years due to different determinants mentioned in the research findings. Based on the findings of this study, the researcher has put vital recommendations on what the corporation should implement to improve its existing performance.