Analysis of coffee marketing system in Arumeru district of Tanzania
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Date
2007
Authors
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Publisher
Sokoine University of Agriculture
Abstract
This study assesses the capacity of co-operatives in reducing the transaction costs in
Arumeru district, Arusha region. The objectives were to describe the coffee
marketing system in the study area in particular, to assess the perception of farmers
toward co-operatives, to asses the factors for adopting coffee marketing channels and
to compare transaction costs between users and non users of co-operatives and to
recommend the appropriate marketing system. Data were collected using structured
questionnaire, which was supplemented by field observations. A total of 279 farmers
from five villages namely Nkoaranga, Poli, Imbaseni, Ndatu and Ngyani were
interviewed. Snowball sampling technique was adopted to get the respondents.
Descriptive statistics, logistic regression analyses and independent sample t-test were
used to analyse the data. Results of the study showed that 50% of respondents have
negative perception on co-operatives and 48% have positive perception while 2% do
not know if co-operatives are beneficial or not. Level of education was found to be
the most important factor that influences farmers’ perception. In logistic regression
analysis only information on market price and traders’ trustworthy was found to
influence adoption of various market channels significantly. From independent
sample t-test, the results revealed that the transaction costs incurred by members and
non-members of co-operatives do not differ significantly. Based on the findings of
the study, the following recommendations were put forward: Policies formulated
need monitoring and evaluation to insure good performance of coffee production and
marketing. Further reform and changes need to be done in co-operative
organizational and institutional to take advantage of the challenges and opportunities
opened up by globalization and technological changes. Lastly, the new research on
analysis and comparison of transaction costs between co-operative and private
traders is recommended.
Description
Masters Dissertation
Keywords
Coffee marketing system, Arumeru district, Tanzania