Browsing by Author "Mhando, David Gongwe"

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Adaptation to changes in the coffee value chain And the price of coffee among coffee producers in Two villages in Kilimanjaro, Tanzania
(African Study Monographs, 2013) Mhando, David Gongwe; Haller, Tobias; Mbeyale, Gimbage; Ludi, Eva
Market liberalization in Tanzania has eroded the monopoly of the cooperative unions by allowing private coffee buyers (PCBs) to compete with them on equal footing. Similarly, farmers groups and primary societies are now allowed to sell coffee at auction. Thus, farmers have various options for selling their coffee. Similarly, the coffee industry has experienced large fluctuations in prices and stagnation in production. How do farmers react to these changes? Can and do farmers profit from different market conditions and sell to different traders at the lower end of the value chain, or do they remain with cooperatives or farmers groups? This study was conducted in Mruwia and Mshiri villages in Moshi Rural district. Whereas Mshiri village remains attached to the Kilimanjaro Native Cooperative Union (KNCU), Mruwia has detached from this organization and sells coffee independently. The sample (103) was randomly selected from the coffee farmers in the two villages. Data were collected through surveys, focus group discussions (FGDs), and socio-anthropological methods (participant-observation, biographies, and thematic interviews). Results indicate that the selection of whom to sell coffee depends largely on farmers’ dependence on coffee and prices, other benefits accrued, and whether the initial costs are covered by buyers. Additionally, most respondents did not sell coffee to PCBs. Thus, prices, the institutional infrastructure, and the structure of local communities were important when making decisions about how and with whom to trade.
Conflict as motivation for change: the case of Coffee farmers’ cooperatives in Moshi, Tanzania
(2014) Mhando, David Gongwe
The policies of the Tanzanian government regarding cooperative societies have never been consistent, and frequent policy changes have shaken the foundation of these institutions, rendering farmers’ cooperatives unstable and unable to cope with the dynamics of production and a market environment. As a result, small-scale farmers have fallen victim to organisations whose leaders are corrupt, inexperienced in the management of their organisations, overly bureaucratic, and unable to assist farmers in production and marketing endeavours. In this context, members of cooperatives have had to deal with issues related to confl icts of interest. This paper explores why several rural primary cooperatives in Moshi, Tanzania, withdrew from the Kilimanjaro Native Cooperatives Union (KNCU) and formed an alternative organisation to produce and market their coffee. Data were obtained from oral histories, focus group discussions, case studies, and interviews, as well as a literature review. Both internal and external factors contributed to the change in coffee marketing in Moshi. These factors include confl icts among the members of the KNCU, the selfi shness of some leaders, changes in production and marketing policies, and externally imposed requirements for qualifying for loans from commercial banks. Although confl ict among the members of the KNCU has been longstanding and inevitable, not enough has been done to improve the performance of the KNCU and to increase the security of small-scale farmers engaged in coffee marketing.
Dynamics of indigenous organisations: the sengu Gathering of the matengo people of Mbinga district, Tanzania
(2014) Mhando, David Gongwe
This paper explores the dynamics of Sengu, an indigenous organisation among the Matengo people of Mbinga District, Tanzania. It explains how Sengu has been transforming over time and fits itself among the Matengo Society. Based on literature review, formal and informal interviews, oral histories and participant observation, the paper traces the development, organisation, roles and disintegration of the pre-colonial Sengu. Furthermore, it explains how and why the present Sengu has been revived and transformed to suit the current developmental challenges of the Matengo people in Kindimba, and in other Matengo villages. The findings reveal that the potential of indigenousness, prevailing spirit of collaboration, sharing, environmental conservation, declining revenue from coffee as well as good leadership of the Sengu committee are among the reasons for its successful revival and operation. The revived Sengu has been transformed in terms of members’ composition, area of coverage, organization and functions. The paper suggests that developmental activities in any society have a higher chance of success if focal features, local knowledge and beliefs of the people are recognized and appreciated. Furthermore, leaders with vision and commitment are of paramount importance for the existence and successful operation of indigenous organizations.
Farmers’ coping strategies with the changes of coffee marketing system after economic liberalisation: the case of Mbinga District, Tanzania
(Kyoto University, 2005) Mhando, David Gongwe
Mbinga District is well known as one of the major coffee producing areas in Tanzania. The inhabitants of the district known as the Matengo, combine ngolo cultivation to produce food crops and also engage in coffee cultivation for income. In 1986, the Tanzanian government introduced an Economic Recovery Programme that liberalized coffee marketing in 1993. In 2002, the government introduced a single licensing system in the coffee industry to stimulate competition among buyers and improve income for farmers. At the same time, the global coffee market witnessed improvement in production and processing technology, and the entry of new coffee producing countries. These resulted in global overproduction that decreased prices of coffee to unprecedented levels. A coffee industry that supported the national economy of Tanzania for many years was ushered into a period of transformation and uncertainty. This thesis documents and examines the trend in policy evolution and the effects these have had on the practice of stakeholders in Mbinga District. The nature of the rural economy is evaluated under the previously state controlled marketing system. The farmers’ responses and coping strategies during the period of economic liberalization are then analysed and discussed. Chapter 1 describes the historical transition of policies from African Socialism to economic liberalization and the tendency of diversification of rural livelihoods after which the objectives of this study are stated. In Chapter 2, an outline of the livelihoods is described and coffee cultivation is contextualized with the farming system. Chapter 3 compares changes in coffee marketing policies before and after economic liberalization, and sequences the characteristics in a historical perspective. In chapters 4 to 6 the case study of Mbinga District is documented, analysed and presented. Chapter 4 outlines the roles of and changes in the Mbinga Cooperative Union (MBICU), Private Coffee Buyers (PCBs), and Primary Societies (AMCOS), and analyses the marketing system. In Chapter 5 describes the current situation and problems of the coffee industry in Mbinga, the fluctuation of coffee prices and cost of agricultural inputs, and the strategies employed by stakeholders to cope. Prior to economic liberalization, MBICU facilitated coffee farming by providing credit, affordable inputs and marketing. After economic liberalization, MBICU could not obtain loans from commercial banks to continue supporting coffee cultivation because it did not service loans that were previously provided. Moreover, its capacity was rapidly weakened due to competition from the PCBs and it subsequently collapsed in 1996. The PCBs filled the gap left by MBICU. However, the PCBs did not provide services to coffee farmers similar to that provided by MBICU. They did not avail agricultural inputs and credits to fanners. The fanners, who previously depended on MBICU for the provision of affordable inputs, faced severe economic difficulties as production costs increased. The farmers were dissatisfied by the purchasing system adopted by the PCBs. The price of chemical fertilizers began to increase after 1996, while the market price of coffee decreased rapidly. In 2002, when a single license system was introduced, AMCOS started to purchase coffee and established a payment system where part of the farmer’s income was paid in form of input purchase vouchers. This system assisted the farmers to obtain inputs thereby contributing to solve the problem of inputs. Chapter 6 examines farmers’ coping strategies in response to policy changes by analysing the results of field research conducted in the villages. The transformation of both the rural economy and the fanning system are described. Although many farmers who marketed coffee through the AMCOS appreciated the voucher system, they preferred selling coffee to the PCBs to the AMCOS. As such PCBs bought more coffee than AMCOS. This indicates that the farmer’s recognized the importance of management of expenditures based on their previous experiences with market economy, which greatly changed the structure of the rural economy. Consequently, coffee revenue, which was once invested in business, is currently invested in other activities to generate income and this assists the farmers to reduce the risks. When the global market prices stagnated, the government encouraged the purchase of coffee according to each grade a situation that motivated the farmers to produce high-quality coffee in a bid to increase income. The farmer’s organized themselves into groups that trained farmers to produce high quality coffee and identify appropriate marketing outlets. Introducing improved varieties and obtaining appropriate technology enhanced coffee quality. Selecting the most cost effective market for each grade maximized income. Networks and linkages among farmers’ groups became well established. The strategy of producing high quality coffee and identifying the most cost effective buyers spread fast among farmers in Mbinga District. An evaluation of the farmers’ coping strategies after economic liberalization revealed a structural transformation of the rural economy. The farmers tried various strategies to cope with policy changes within the context of their natural and social environment while making the best use of their experiences with the market economy. However, oversupply keeps prices stagnant while the prices of inputs keep rising. The sustainability of coffee cultivation in Mbinga will depend on constant supply of inexpensive inputs. It is presumed that formation of a cooperative union that pursues profit and values transparency while facilitating coffee farming, AMCOS and farmers’ groups would play a key role. It can be concluded that ten years of economic liberalization detached farmer’s from a state subsidized system to one of economic self-reliance that modified the structure of the rural economy.
Production and marketing of orange in two Villages in Muheza district, Tanzania
(Textversion, 2018-03) Mhando, David Gongwe; Ikeno, Jun
This study examines the current situation and challenges in orange production and marketing in Muheza District, Tanga Region, Tanzania. Tanga Region is a major orange production area in Tanzania, and it is estimated that more than 80% of all oranges in Tanga Region are produced in Muheza District. Utilizing field data collected in Mkuzi and Mindu villages in Muheza District, this paper explores the current situation of orange production and marketing. Orange production makes a substantial contribution to the district’s economy; 80% of the district council revenue is derived from taxes on orange production and about 75% of household income in 2011 was estimated to be delivered from oranges. Although orange production is extremely important in this district, the real situation regarding production and marketing has not been closely investigated. In this paper, I discuss the present situation regarding orange production and marketing and present an empirical study conducted in two representative villages in Muheza District. It is argued that the marketing chain controls orange production in the two villages because participants higher up the chain can directly control the production process through their interactions with producers. However, at the end, the traders who have control of the orange farms, and the producers are often relegated to mere watchmen of their own plots. To address this issue, an integrated approach is recommended where dependence on orange cultivation is reduced by diversifying into other sources of income, such as planting fast-growing timber trees along the boundaries of farms, to supplement producers’ income from orange.
Profitability analysis of tree growing in the Southern Highlands of Tanzania
(HINDAWI, 2021-01) Lusambo, Leopold Pascal; Nyanda, Suzana Samson; Mhando, David Gongwe
This study aimed at determining the extent to which the smallholder tree growers benefit from tree growing activities. It strove to accomplish the following: (i) analyse costs and benefits associated with tree growing activities; (ii) determine profitability indices; and (iii) assess economic status of respondents in the study area. Stratified random sampling technique was used to draw respondents. Mixed research methods for data collection were employed: household survey using semistructured questionnaire, key informants’ interviews, focus group discussions, and researcher’s direct observation. Data were analysed using Statistical Package for Social Sciences (SPSS) and Microsoft Excel computer programmes. Profitability was analysed by gross profit margin (GPM) and return on investment (ROI). Findings suggested that tree growing activities are profitable with GPM of 21% and ROI of 26%. ANOVA results showed no statistical difference within study districts between tree growers and non-tree growers. The possible explanation of this situation could be that tree growers have not invested much the benefits they get from tree growing into asset endowment. ANOVA results on household income revealed a similar pattern except in Njombe DC where there was a statistical significant difference in household income between tree growers and non-tree growers (F (1, 64) � 5.989, P � 0.017). The effect size of the difference is medium (Eta � 0.08). It is concluded that tree growing activities in the Southern Highlands of Tanzania are economically profitable.
Unlocking institutional constraints to increasing coffee production in Tanzania
(2019) Mhando, David Gongwe
The agricultural policies advocated by the Tanzanian government for the cooperative societies and the coffee sector have not been stable. Frequent changes in policy have affected the sector, hindering the effectiveness of the institutions that deal with the coffee sector. Most of these policy changes have failed to foster growth of coffee production. Despite the market potential of Tanzanian coffee, policies and institutional constraints have resulted in the stagnation of annual coffee production at 50,000 tons per year for over four decades. Currently, the Tanzanian coffee sector is challenged by lack of political will to develop and increase the productivity of coffee. Thus, institutional constraints have led to a failure to support research and extension activities, limited production and distribution of hybrid seedlings, and failed to support data collection on production, number of coffee farmers and farm size. Weak cooperative organizations and failure to take private sector aboard are further consequences of institutional constraints. This paper discusses the institutional constraints facing the coffee sector and capitalizing on available opportunities for increasing coffee production in Tanzania. Since coffee production in Tanzania has the potential to reach its optimum production level, it is therefore recommended that the government address the identified constraints, commit itself to development of the crop and reinvest part of the revenue collected from the coffee sector in research and development. Public Private Partnership could be forged to revive the coffee industry by bringing onboard the private sector to invest and assist in the provision of extension services, which are important for enhancing production growth through improvement of the recommended agricultural practices, marketing efficiency and technological change.
Why do smallholder famers in four Tanzanian districts continue with coffee production despite fluctuating prices?
(2018-12) Mhando, David Gongwe; Mdoe, Ntengua Seleman
Coffee production and marketing in Tanzania faces many challenges; price and weather variability, limited access to agricultural inputs, poor extension services, lack of irrigation, lack of credit facilities and land shortage which have decreased their capacity to consistently meet the supply of quality and required quantity. Despite of the challenges, coffee continues to be the main source of income to smallholder farmers. The study explores why coffee is still the most important crop to small scale farmers in four districts despite of the challenges they face. Household survey was conducted to 189 randomly selected coffeefarmers. The study found out that despite of the production and marketing challenges, coffee farming has remained a source of reliable income, a traditional crop and cultural symbol. Conclusions are reached that gaining from coffee production provides the means of investment to other food crops.