Market Dynamics and Value Chain Efficiency of Coffee Production: Basis for Business Enhancement
Abstract
Coffee production in the Philippines is characterized by a predominantly smallholder structure, changing consumer demand, uneven access to market information, and persistent constraints in infrastructure and finance. This study examined market dynamics and value chain efficiency in La Carlota City, Negros Occidental, and used the findings to formulate evidence-informed priorities for business enhancement. A descriptive-correlational design was applied to 115 purposively selected stakeholders comprising producers, consumers, and traders/market actors during the first and second quarters of 2026. Data were collected through a researcher-made questionnaire covering stakeholder profile, market dynamics, and value chain efficiency. Five experts assessed content validity using Lawshe's content-validity procedure; a pilot test with 30 respondents yielded Cronbach's alpha coefficients of .936 for both major constructs. Descriptive statistics, Kruskal–Wallis H tests, Mann–Whitney pairwise comparisons, chi-square tests, Gamma correlations, and Spearman's rho were used at α = .05. Market dynamics was rated high overall (M = 3.70, SD = 0.52), driven by high demand and consumer preferences (M = 4.14) and market information and producer role (M = 3.61), while price stability and fairness remained moderate (M = 3.35). Value chain efficiency was moderate overall (M = 3.19, SD = 0.60), with farm inputs at M = 3.40, roads and financing at M = 2.81, and technology and training at M = 3.38. Stakeholder role, age, experience, and coffee variety were associated with significant differences in value-chain efficiency, whereas sex and farm size were not. Market dynamics varied significantly by sex but not by role, age, experience, farm size, or coffee variety. Most importantly, value chain efficiency was positively associated with market dynamics (Spearman's ρ = .605, p < .001), indicating that improvements in production support, infrastructure, financing, technology, and training are closely linked with stronger market performance. The study concludes that local coffee competitiveness depends less on isolated production characteristics than on coordinated improvements in the value chain, transparent market institutions, and stakeholder-responsive business support