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Governance and Upgrading in Coffee Value Chain: the Case of Dale Woreda, Sidama Zone, Southern Ethiopia

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Governance and Upgrading in Coffee Value Chain: the Case of Dale Woreda, Sidama Zone, Southern Ethiopia COLLEGE OF SOCIAL SCIENCES DEPARTMENT OF GEOGRAPHY AND ENVIRONMENTAL STUDIES GOVERNANCE AND UPGRADING IN COFFEE VALUE CHAIN: THE CASE OF DALE WOREDA, SIDAMA ZONE, SOUTHERN ETHIOPIA BY: GASHAW ADDISIE NOVEMBER 2019 ADDIS ABABA, ETHIOPIA GOVERNANCE AND UPGRADING IN COFFEE VALUE CHAIN: THE CASE OF DALE WOREDA, SIDAMA ZONE, SOUTHERN ETHIOPIA BY: GASHAW ADDISIE A THESIS SUBMITTED TO THE DEPARTMENT OF GEOGRAPHY AND ENVIRONMENTAL STUDIES OF ADDIS ABABA UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTERS OF ARTS IN GEOGRAPHY AND ENVIRONMENTAL STUDIES (specialization in Urban and Regional Development and Planning) ADVISOR: TEBAREK LIKA (PhD) NOVEMBER 2019 ADDIS ABABA, ETHIOPIA ADDIS ABABA UNIVERSITY COLLEGE OF SOCIAL SCIENCES DEPARTMENT OF GEOGRAPHY AND ENVIRONMENTAL STUDIES GOVERNANCE AND UPGRADING IN COFFEE VALUE CHAIN: THE CASE OF DALE WOREDA, SIDAMA ZONE, SOUTHERN ETHIOPIA BY: GASHAW ADDISIE APPROVED BY THE BOARDS OF EXAMINERS __________________ _________________ __________________ Advisor Signature Date __________________ _________________ __________________ Examiner Signature Date __________________ _________________ __________________ Examiner Signature Date II Acknowledgment Above all, I am thankful to the Almighty God. Then, I wish to express my special gratitude to my advisor Dr. Tebarek Lika for his constructive comments and advice throughout the preparation of this paper. I also want to express my gratitude to my family for their material and moral support. Most of all, I would like to express my heartfelt gratitude, especially, to Makeda Berihun, Dagmawi Ayele and Fasil Shimelis for all your contributions. I thank you very much!! It is also my pleasure to extend my appreciation to my families and friends Asnake Yimer, Endris Asnake, Habiba Asnake, Erkihun Degu, Ambachew Shiferaw, Hayleyesus Wendim, Shiferaw Lake, Kebede Yichalewal, Getinet Mitiku, Senayit Bisrat, Getachew Rete and others for their contribution. I really thank you all!! I am greatly indebted to the staff members of Ethiopia Coffee and Tea Development Authority, Ministry of Trade, Dale Woreda Agricultural and Natural Resource Office, Ethiopian Commodity Exchange, Sidama Coffee Farmers’ Cooperative Union and others for their valuable support in giving data and other relevant documents. I Table of Contents Contents Page List of Tables ................................................................................................................................. V List of Figures ............................................................................................................................... VI List of Acronyms/Abbreviations.................................................................................................. VII CHAPTER ONE ............................................................................................................................. 1 INTRODUCTION .......................................................................................................................... 1 1.1 Background of the Study .................................................................................................. 1 1.2 Statement of the Problem ................................................................................................. 3 1.3 Objectives of the Study .................................................................................................... 4 1.3.1 General Objective ......................................................................................................... 4 1.3.2 Specific Objectives ....................................................................................................... 4 1.4 Research Questions .......................................................................................................... 5 1.5 Significance of the Study ................................................................................................. 5 1.6 Scope of the Study............................................................................................................ 5 1.7 Limitation of the Study .................................................................................................... 6 1.8 Organization of the Thesis ............................................................................................... 6 CHAPTER TWO ............................................................................................................................ 7 REVIEW OF RELATED LITERATURE ...................................................................................... 7 2.1 Introduction ........................................................................................................................... 7 2.2 Basic Concepts and Definitions ............................................................................................ 7 2.2.1 Value Chain Analysis ..................................................................................................... 7 2.2.2 Purpose of Value Chain Analysis ................................................................................. 12 2.2.3 Domains of Value Chain Analysis ............................................................................... 12 2.3 Theoretical Perspectives in Value Chains ........................................................................... 14 2.3.1 Theory of Value Chain Analysis .................................................................................. 14 2.3.2 Global Value Chain (GVC) .......................................................................................... 14 2.3.3 Upgrading in Value Chains .......................................................................................... 16 2.3.4 Governance in Value Chains ........................................................................................ 19 2.3.5 GVC as an analytical tool ............................................................................................. 26 2.4 Overview of the Coffee Sector in Ethiopia ......................................................................... 27 II 2.4.1 Coffee in the Global Scenario ...................................................................................... 27 2.4.2 Coffee in Ethiopia Scenario .......................................................................................... 28 2.5 Empirical Evidence ............................................................................................................. 35 2.5.1 Status of the Coffee Value Chain in Ethiopia ............................................................... 35 2.5.2 Research Gaps .............................................................................................................. 38 2.6 Conceptual Framework ....................................................................................................... 40 CHAPTER THREE ...................................................................................................................... 42 RESEARCH METHODOLOGY.................................................................................................. 42 3.1 Description of the Study Areas ........................................................................................... 42 3.2 Research Paradigms ............................................................................................................ 44 3.3 Research Method ................................................................................................................. 46 3.4 Research Design and Approach .......................................................................................... 47 3.5 Source of Data and Data Collection Techniques ................................................................ 47 3.5.1 Source of Data .............................................................................................................. 47 3.5.2 Data Collection Techniques .......................................................................................... 48 3.6 Sampling Techniques and Sample Size .............................................................................. 49 3.6.1 Sampling Techniques ................................................................................................... 49 3.6.2 Sampling Size ............................................................................................................... 50 3.7 Methods of Data Analysis ................................................................................................... 51 3.8 Validity, Reliability and Ethics ........................................................................................... 53 CHAPTER 4 ................................................................................................................................. 56 DATA ANALYSIS AND INTERPRETATION .......................................................................... 56 4.1 Socio-economic and Demographic Analysis ...................................................................... 56 4.1.1 Age and Gender of the Respondents ............................................................................ 56 4.1.2 Age Distribution and Family Size ................................................................................ 56 4.1.3 Ethnicity of Respondents .............................................................................................. 57 4.1.4 Education Level ...........................................................................................................
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