Co-operative members’ decisions on coffee marketing channels and factors influencing their choices in Rombo district, Tanzania
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Date
2017
Authors
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Publisher
Sokoine University of Agriculture
Abstract
Although Agricultural Marketing Co-operative Societies (AMCOS) play a major role in
coffee marketing, not all members seem to use them effectively since some of them are
using private traders as their coffee marketing channel. The question now is what
influences their choices on which channel to use on coffee marketing. The main objective
of this study was to analyze co-operative members’ decisions on coffee marketing
channels and factors influencing their choices in Rombo district. Specifically the study
aimed at describing the coffee marketing system and evaluates the existing potentials of
AMCOS, assessing the factors that influence co-operative member’s choice of coffee
marketing channel and comparing the transaction costs incurred by the user and non-user
of AMCOS in coffee marketing. Two-stage sampling procedure was followed to select
four AMCOS and a total of 200 sample respondents who were the co-operatives members.
Both primary and secondary data were collected. The study noted that, only 16.5% of the
members trade with private buyers. By using SWOT analysis the study found that co
operatives are internally strong, while the external analysis shows the co-operatives
current strategies do not respond well on the use of the external opportunities. Logistic
regression analysis indicated that only four variables that is, access to inputs, payment
system, access to market information and trust were significant at 0.05 probability level,
this means the aforementioned factors are the ones which influence co-operative member’s
choice of coffee marketing channel. From the independent sample t test it has been noted
that, AMCOS as a marketing channel has higher transaction costs than private traders. The study concluded that, co-operatives do not perform well in coffee marketing compared to
private traders although members have more faith to co-operatives than to private traders.
Therefore the study recommends that, there is a need to strengthen organizational and
institutional capacity of AMCOS.
Description
A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN
AGRICULTURAL AND APPLIED ECONOMICS OF SOKOINE UNIVERSITY
OF AGRICULTURE. MOROGORO, TANZANIA. 2017
Keywords
Coffee marketing channels, Agricultural Marketing Co-operative Societies, Rombo District, Co-operative members, SWOT analysis