Impact of Coffee Market Price on Merchandise Trade: the case in Mettu Town.

Abstract

Obviously, coffee trade has attached other trade sectors to it, i.e. what ever the trade sector may be it has apparent linkage. But this is true particularly in the context of the place where the study has taken place. As coffee is the second most valuable commodity after petroleum in the world, it touches many economic aspects. In context of Ethiopia, coffee trade is a very' big business both for the local and nation economy. Coffee generates over 60% its total import earning. Furthermore directly or indirectly 25% of the Ethiopian population relies for their income on coffee production. On the other hand expanded trade is now become more crucial to future development than any time in this century. Trads are woven in to need of basic assertion like never before. The fall of trade mean directly result in economic deficit Therefore it is easy to predict -that, coffee market can affect the merchandise sale activity. Our country is making money from coffee trade then with the emphasis of coffee and improvement of other trade sectors, we should be developing in to better economic standardization.