Location Of Coffee Distribution Center In Jimma Zone,Oromia Region-Ethiopia

Ethiopia is the largest farmer of coffee in Africa,the country's contribution to the world production is approximated to be 4.3%which makes it the fifth largest farmer in the world^[1].However,the performance of the coffee industry is not as good.There are a number of quality problems faced by coffee traders and other logistical problems especially to small holder farmers who produce about 95%of the coffee.The main cause of poor quality is attributed to post-harvesting practices which are logistical in nature i.e.storage and transportation^[2].Huge transportation costs are incurred by farmers to move their products to the market^[3].From the markets,transportation is done by freelance truck owners whose availability is unpredictable.These small holder farmers cover an average distance of 12.2 km whenever they need to take their coffee to the nearest market place.Upon arrival,customer presence is not assured,thus,some produce goes without sell for a number of days.The aim of this research was to identify optimal location logistics facilities(i.e.consolidation/storage centres which will improve upstream processes as well at improve the productivity of smallholder farmers in Jimma Zone of Oromia region.The problem was modelled as a p-median location problem which seeks to site p facilities in such a way that the least total of production times distance travelled to the assigned facility is achieved and the gravity location model which has a similar objective.Two hundred?200?farm units were identified using Arc GIS from which 11 clusters were made based on their location.In each cluster the optimal location was found using the p-median model which was implemented using the Pulp package in python.Thereafter,three sub-regions?north,south and west?were formed by combining clusters and optimal locations were identified in each sub-region.The optimal solution shows a total cost saving of Br 347,389.99?about 35.8%?and 49%?from 12.22 to 6.04?reduction in the distances covered by farmers,this also entails that the number of trips will also have to reduce thereby increasing efficiency and productivity.Building of distribution centers in the identified locations will curb the transportation problem faced by famers in Jimma zone.With such facilities in place,the overall logistics system of coffee will be improved and will go a long way in helping farmers improve their productivity.Additionally,stakeholders should consider investment in such facilities which assures return on investment if well-coordinated.