The efficiency of robusta coffee marketing channels in Karagwe District, Tanzania

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2013 Time Journals


T he study assesses ed the marketing efficiency of Robusta coffee under different supply channels in Karagwe district of Tanzania. C ross sectional research design as well as purposive, simple random and snow ball sampling techniques were used . Primary data were collected from 120 smallholder coffee farmers, 12 village traders and 8 key informants using semi structured questionnaire and key informants interview schedules S econdary data were collected fro m relevant coffee authorities’ records and reports. Various empirical approaches in evaluating coffee marketing efficiency were applied including: assessment of marketing information system, barriers of entry into coffee market, marketing channels’ costs a nd margins, conventional (simplified) marketing efficiency method and market concentration ratio measures. F armers selling coffee to un registered village buyers had the lowest marketing margins of 90.37% compared to those selling coff ee to registered priv ate buyers with 93.20% and 92.90% for Rural Co operative Societies. T he results from calculated market concentration ratios were 87.5% and 90.3% and the Herfindahl Hirschman Index of 0.29 which denotes that the coffee market is highly concentrated on few bu yers who control the price . Market information system was found to be asymmetric and the existence of bureaucratic coffee buying licensing system was also prevalent in the area It was concluded th at coffee marketing system in Karagwe district was ineffic ient thus reviewing the existing bureaucratic licensing system, dissemination of coffee marketing information through radios and mobile phones, restructuring of cooperative societies, introduction of formal credit facilities, and the establishment of more rural coffee buying posts to reduce transportation costs are recommended.


Time Journals of Agriculture and Veterinary Sciences Vol. 4(1):153-163, 2016


Marketing channel, Marketing Efficiency, Market Concentration ratio, Karagwe District