The impact of market liberalization to members of agricultural marketing cooperative societies: the case of Moshi and Rombo districts, Tanzania
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Date
2011
Authors
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Publisher
Sokoine University of Agriculture
Abstract
In Tanzania Cooperatives societies and unions emerged as socio-economic institutions in the 1920s purposely to protect the interests of indigenous coffee growers in production and marketing. Following economic and market reforms in 1990s. which propagated market liberalisation, the reform have not lead to the expected improvement in the productivity, incomes and overall livelihoods of coffee growers. As a consequence. primary cooperatives societies or Agricultural Marketing Cooperative Societies (AMCOS) and cooperative unions like KNCU have been unable to provide satisfactorily the essential services to their members. This study analysed the impact of market liberalisation to members of AMCOS in Rombo and Moshi rural districts whereby 120 members of AMCOS and 12 Key informants were involved through use of structured questionnaires and checklist in focus group discussion. The results indicate that; following market liberalisation, AMCOS are disorganised and lack strong management such that they are easily penetrated by unfaithful traders (PCBs) who are normally organised, well informed tricky, tactical, works in cartel and come to hike for profit. There is no substantial welfare improvement to AMCOS members due to unpredictable pricing of coffee. Also bureaucracies, lack of transparency and farmers involvement by KNCU management are the major factors causing AMCOS members' detachment to join G-32s. Basing on these findings, the study recommends that primary societies should be informative and inquisitive in searching for coffee quality production and market information by establishing farmers’ ICT centre. AMCOS should strengthen their organisations’ management (societies and unions) with emphasis on participatory and majority consensus. The government and KNCU should support AMCOS by enacting policies which deliberately protect and nurture them in terms of skills and power to negotiate, conduct regular stakeholders forum where farmers directly and, or through representation by their management actively participate, negotiate and defend their interest to instigate focused and collective objectivity.
Description
Dissertation
Keywords
Market liberalization, Agricultural marketing, Cooperative societies, Indigenous coffee growers