Author : Caetano Dos Santos Cristovao

Summary : This research was conducted in Ermera Regency with the purposes of analyzing: (1) market structure and barriers of entering and exiting the market; (2) market conduct; (3) market performance; and (4) factors influencing the choice of marketing channelsby coffee farmers. The primary data was collected in the form of a cross-section of 100 respondent farmers, 5 merchant middlemen and 4 whole traders using questionnaires as the aid tool, while the secondary data was obtained from the relevant agencies such as the Ministry of Agriculture and Fisheries of Timor-Leste, the Directorate of Industrial Crops and Agribusiness, the Ministry of Finance of Timor-Leste and related agencies as well as from the literature. Descriptive analysis was used to describe the institutions involved in the coffee marketing and the functions carried out. Quantitative analysis was used to analyze the efficiency of marketing, market performance and marketing channel choice analyzed using logit regression. The analysis of coffee market performance in Ermera Regency indicates that it has not been inefficient yet. It is seen from the uneven margin distribution and price share received by farmers in parchment coffee sales channels only by 47 percent. In coffee cherry sales, farmer’s gain 54 percent share while traders only by 46 percent. This indicates that coffee cherry sales are more profitable although it is realized that the processing goal is to obtain the value-added. In order to improve efficiency, it can be reached by choosing the channel giving the value of higher price share by reducing marketing costs and time for the sale of the coffee. From the results of analysis, statistically, it is known that only farming experience factor and the price of parchment coffee significantly influence the choice of coffee marketing channel II in Ermera Regency.