Factors influencing choice decision for marketing channels by coffee farmers in Karagwe District, Tanzania
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Date
2017
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Publisher
Global Institute for Research & Education
Abstract
Marketing channel choice is among the most complex and challenging decisions facing farmers. This study
therefore assessed the factors influencing choice decision of marketing channels by coffee farmers in Karagwe
District of Tanzania. A cross-sectional research design was employed to collect data from 120 smallholder coffee
farmers using semi-structured questionnaire, participatory group discussions and key informants interviews. The
data were analysed using qualitative analytical techniques such as descriptive statistics as well as quantitative
methods such as regression analysis. The Multinomial Logit Model was employed to determine the factors
influencing farmers’ choice for marketing channel. The study found that farmers sell coffee through three main
marketing channels namely; Rural Primary Societies (35%), Private Coffee Buyers (46.7%) and Village buyers
(18.3%). The Model results show that three factors significantly influenced the farmer’s marketing channel choice
namely; Age of household head, price of dry coffee cherry and distance to selling center from homestead. Further
results showed that there were wide variations of farm gate prices between farmers selling in different market
channels. The study recommends the restructuring of cooperative societies, introduction of formal credit facilities to
provide favourable credit to farmers and the establishment of more rural primary cooperative societies’ and private
coffee buyers’ buying centers in the remote villages to reduce transportation costs.
Description
Global JournalloVol.6(2):1-10
Keywords
Marketing Channel, Contractual Choice Factors, Multinomial Logit Model