Liberalization of coffee market and its implication on poverty reduction to smallholder coffee farmars in Mbozi district in Mbeya
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Date
2011
Authors
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Journal ISSN
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Publisher
Sokoine University of Agriculture
Abstract
This study dealt with the liberalized coffee market and its implication on smallholder coffee producers’ poverty reduction. Specifically the study aimed at assessing the structure of the current coffee market, assessing the extent of availability of agricultural inputs to coffee producers, examining the availability' of credit facilities to coffee farmers, determining smallholder coffee productivity per unit area and determination of profitability' of the coffee production to smallholder farmers. The study adopted a cross sectional research design technique whereby 180 respondents (smallholder coffee producers) were interviewed using a pre-structured questionnaire. In addition, a Focused Group Discussion (FGD) was also used to collect primary data and to verify responses from the structured interviewers. In analysing data, SPSS 12.0 was used for descriptive and other statistical analysis. Descriptive statistics determined included; means, frequencies, standard deviation, percentages and other summary statistics. In addition to the above regression analysis and gross margin analysis were done to determine the profitability of small holders coffee production in a liberalized market. Results from the regression analysis showed that extension sendees, availability of credit, and availability of agricultural inputs had a positive and significant (P<0.05) influence on profit obtained from coffee sales. However, for some reasons number of buyers, form of coffee sold and cost of production showed a negative influence on profit from coffee sales. Generally, the study revealed that liberalization of coffee market in Mbozi district has been important in reducing poverty among smallholder coffee producers.
Description
Dissertation
Keywords
Coffee market, Poverty reduction, Coffee farmars, Agricultural inputs