The effect of Coffee Production and Trade on Gender Income Equality and Livelihood Improvement in bench-Sheko, and Sheka zone

Abstract

Coffee, as a globally traded commodity, has the potential to contribute significantly to achieving the sustainable development goals in developing countries. The aim of this paper is to evaluate the effect of coffee production and trading on gender equalities in income distribution and livelihood improvement in Bench-Sheko, and Sheka zone by using decomposition of Gini coefficient, Blinder-Oaxaca decomposition, and descriptive statistics for livelihood condition of the 392 households. The study illustrations moderate income inequality in the area, with coffee income being the most correlated with total household income. Additionally the study reveals that income inequality in male-headed households is greater than in women-headed households. The Gini coefficient is slightly higher for male-headed households, suggesting a more unequal distribution. Furthermore the results show those male farmers make 27% more money than female farmers, mostly because of market accessibility, land size, non-farm income, and coffee farming experience. Moreover the study found that male and female householders have better physical capital, but face challenges in accessing public services and financial resources. The result indicates that government of Ethiopia should emphasizes the need of addressing income inequality by improving market accessibility, increasing the size of land plots, and encouraging non-farm earning alternatives, particularly for female farmers. Furthermore result indicates the government should improving access to public services like, electricity, network, training centers, roads, markets, and loan provider institution that help to enhance the quality of rural livelihoods for coffee farmers in the study area.