THE ROLE OF ETHIOPIAN COMMODITY EXCHANGE ON SALES PERFORMANCE OF COFFEE EXPORT COMPANIES IN ADDIS ABABA

Abstract

Commodity exchanges have crucial roles in the economic development of a nation at large and in the financial and non-financial developments of their market actors. Exporters of commodities as market actors of commodity exchanges are expected to benefit from agricultural commodity exchanges. The purpose of this paper was to examine “The role of Ethiopian Commodity Exchange (ECX) on sales performance of coffee Export companies in Addis Ababa. A systematic questionnaire was developed to assess the role of ECX from the viewpoint of its members involved in exporting coffee. A quantitative research methodology and explanatory research design was employed, and hypotheses were evaluated using a sample of 344 coffee exporters associated with ECX. From the 344 questionnaires distributed, valid responses were obtained from 287 participants, resulting in a response rate of 84%. The data were analyzed using descriptive statistics, correlation & regression. The findings of descriptive statistics of the independent variables showed that warehousing scored the highest rating with a mean value of 3.52 while the remaining variables also scored mean value above 3.40 this shows that, functions of ECX were perceived to be satisfactory to the members .The correlation analysis indicates a positive relationship among central trading, warehousing delivery, clearing transaction services, arbitration tribunal, and marketing information, with respective correlation coefficients of 0.572, 0.573, 0.512, 0.681, and 0.598. Additionally, the multiple regression analysis shows that these factors account for 54.4% of the variation in the export sales performance of coffee exporters as evidenced by an R square value of 0.544 and an adjusted R square value of 0.536