Impact of Coffee Technologies: A Multinomial Endogenous Switching Regression Model

Abstract

Sector of agriculture plays a significant role in Ethiopian economy. Ethiopia has huge potential to increase coffee production as it endowed with suitable elevation, temperature, and soil fertility, indigenous quality plantation materials, and sufficient rainfall in coffee growing belts of the country. The combination of coffee technologies adoption has a significant effect on coffee productivity. The study was aim at identifying the impact of coffee Varity and coffee land management practice on annual coffee yield in south western Ethiopia. This study develops a multinomial endogenous switching regression model of farmers' choice of combination of coffee technologies and impacts on coffee technologies. Both qualitative and quantitative data collected in multistage sampling techniques. Data was collected from both primary and secondary data sources. 196 sampled households from three woreda in the zone and 430 plots of 196 farmers household is considered in the survey. Two primary results were found. First, adoption rate and intensity of improved coffee variety is greater than adoption of coffee management practice. Secondly adoption of coffee technologies determined by much institutional, resource and other related factor. This implies that policy makers and other stakeholders promoting a combination of technologies can enhance coffee yield through reducing production costs and decreasing coffee vulnerability to disease.