Profitability of Arabica coffee production in Uganda: the case of Zesui sub county Sironko district.

Abstract

The study was carried out to examine the profitability performance of coffee production in Uganda, in Zesui sub county Sironko district. It was to characterize the coffee farmers according to the selected socio economic variables, to determine the profitability levels of coffee farmers in the study area, to assess factors that affect the profitability performance of coffee production in the study area. The study used both primary and secondary data. Primary data was collected from farmers through interviews using questionnaires. The target population was 71 small-scale farmers from Zesui sub county Sironko district who were randomly selected. The data was analyzed using SPSS and Eviews. Both descriptive statistics and frequencies were used. Gross Margin analysis was used to determine profitability of coffee. A linear regression analysis was run to analyze factors that influence coffee profitability. Data presentation was in form of tables and figures to help interpret findings and generate conclusions that aided solution to the identified challenges. The research established that gender, access to extension services, education level, farm size, age, numbers of laborers, marital status had no significant influence on coffee profitability compared to marketing channel and farm size that had a significant effect on the coffee profitability. The study revealed that coffee farmers who marketed their coffee through cooperatives got higher profits than those who marketed through traders who purchase from homes. The study recommended that farmers should market their coffee through cooperatives since they earn higher profits