Institutional arrangements for specialty coffee: a case of Hai and Moshi rural districts, Tanzania
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Date
2009
Authors
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Journal ISSN
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Publisher
Sokoine University of Agriculture
Abstract
This study aimed at assessing the institutional arrangements for specialty coffee in Hai and
Moshi Rural districts in terms of marketing performance. The specific objectives were to;
describe the existing institutional arrangements in the study area,
affecting yield of coffee,
investigate factors
examine factors influencing coffee farmers' decision to
participate in specialty coffee market and assess factors affecting the degree of coffee
farmers’ participation in specialty coffee market. Purposive, stratified and random
sampling techniques were employed in data collection using structured questionnaires
which was also supplemented by focus group discussions and field observations. About
250 coffee farmers were interviewed. Descriptive statistics, multiple linear regression
analysis and probit analysis were used to analyse the data. Results showed that higher
price and payment assurance were very important in influencing the institutional
arrangement preferences by farmers. Income, tree density, delivery cost, labour, farmer
training and age of coffee tree were statistically significant in influencing the yield of
coffee. Investment cost was found to influence both yield and decision of farmers’
participation in specialty coffee market. Other factors which were significant in
determining coffee farmers’ participation in specialty coffee market were technical
assistance and market competition. Premium price, membership in group and transaction
cost were significant in determining the decision to participate in specialty coffee market
as well as the degree of participation. Further more, age of the household head, education
and payment arrangements were also important in determining the degree of coffee
farmers’ participation in specialty coffee market. Recommendations put forward include;
policy reinforcement to ensure enforceable contracts, supporting the establishment of input
procurement system, designing mechanism of transportation of cherries from farms to the
CPUs and facilitation of formation of FBGs in other crops to provide similar services to
improve farmers’ livelihood.
Description
Dissertation
Keywords
Institutional arrangements, Assessing specialty coffee, Moshi Rural Districts, Tanzania