An evaluation of the role played by coffee marketing Institutions to coffee smallholders in Kilimanjaro region, 1970-1984
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Date
1990
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Sokoine University of Agriculture
Abstract
Changing socio-political and economic circumstances
and technological innovations necessitate institutional and conceptual adjustments to new conditions. Such changes which have occurred in Tanzania since
Independence in 1961 have changed the country's crop marketing system. The purpose of this study has been to find out and narrate the causes, effects and salient features of the institutional changes of the Tanzania's crop marketing system in the period between 1970 and 1984. Coffee marketing institutions in Ki 1imanj aro Region are used as a case study.
In this study two hypotheses were set and tested. First it was hypothesized that coffee marketing system under the Tanganyika Coffee Board (TCB)/ Kilimanjaro Native Cooperative Union (KNCU) was more efficient than under the Coffee Authority of Tanzania (CAT). To test this hypothesis secondary time series data on producer's price as percentage of f . o . b price, un i t marketing margin, unit marketing costs, potential final payment, unit administrative expenses, unit administrative expenses as percentage of unit marketing costs, current ratio and quantity of coffee sold were collected. Regression Analysis of these secondary data has shown
that unit administrative and marketing costs were
significantly lower during KNCU time than
period. These factors enabled KNCU to *
significantly higher producer's price as
f.o.b price than could CAT. From these observations the
during CAT pay farmers
percentage of
: (iii)
hypothesis that coffee marketing system under TCB/KNCU was more efficient than under CAT cannot be rejected and it is cone1uded that TCB/KNCU was significantly more efficient than CAT when marketing farmers coffee.
Secondly5 it was hypothesized that TCB/KNCU and affiliated cooperative societies were more concerned with the development of coffee farmers than the CAT. To test this hypothesis primary data on attitudes of farmers towards the crop marketing organization were collected by means of a questionnaire administered to fifty (50) randomly selected farmers. t and Chi-square tests were used to test the hypothesis. The corresponding parametric and non—parametric statistical inference proved that KNCU was significantly more efficient in providing managerial services when purchasing farmers coffee. The services included inspection, grading, weighing of crops and paying farmers. CAT was, however, significantly more efficient in the provision of inputs and extension services to farmers.
Consequently it is recommended that in Tanzania agricultural crops shou1d be marketed by agricultural marketing cooperatives and marketing boards. The cooperative should be owned and controlled by the members on a democratic basis. The effectiveness of marketing boards can be improved by increasing the participation of farmers, processors, merchants and consumers in their decision making process.
Description
Dissertation
Keywords
Coffee marketing, Institutions, Coffee smallholders, Kilimanjaro region, 1970-1984