Challenges of Coffee Price Fluctuations and Sustainability of Agricultural Marketing Co-Operatives in Tanzania: Experience from Mbozi and Rombo Districts

The challenge of change in price of coffee as well as sustainability of agricultural marketing co-operatives in Tanzania has serious implication to farmers and AMCOS dealing with production and marketing of coffee respectively. This paper aimed at assessing the sustainability of Agricultural Marketing Cooperatives in Tanzania by looking at the pricing mechanisms used and how these affect the sustainability of AMCOS in coffee growing districts of Rombo in Kilimanjaro and Mbozi which was part of Mbeya but current is in new region of Songwe. In the course of the project, the team of experts interviewed and gathered data/information from 86 farmers and 32 leaders of primary cooperative associations in the two districts. Data collection was done through questionnaires as well as focus group discussions with respondents of the selected cooperative business associations. Results have shown that unfavorable coffee prices, access to extension services, pests and coffee diseases, unreliable coffee markets, shortage and untimely accessibility of farm inputs, are the main challenges of change in price of coffee as well as sustainability of AMCOS. In general, the basic conclusions of this paper suggest that Promotion of Public Private Partnership (PPP) in the cooperative sector is very important in order to encourage this sector to grow quickly and positively. Training and extension services should also be provided to coffee farmers targeting on improvement of quality and increasing quantity of coffee produced. The Government together with TCB (Tanzania Coffee Board) need to rethink of nature, extent and intensity of inclusiveness of coffee farmers at high market value, from local, regional level and international market.