African Journal of Co-operative Development and Technology

Youth participation in cotton agricultural marketing cooperatives for sustainable rural employment creation in Tanzania

Rwekaza G. Cronery — Sun, 31 Dec 2023 00:00:00 +0000

Cooperative organizations have important in improving employment opportunity creation and other socio-economic development in many nations. The paper examined youth participation in cotton Agricultural Marketing Cooperatives Societies (AMCOS) for rural employment creation; where youth as the majority of the population were found to be not interested. Specifically, the paper had two objectives which were; to assess the perception of youth towards participating in AMCOS and to assess the available strategies by AMCOS on youth participation in agriculture. The cross sectional design was adopted, five primary AMCOS was surveyed where members of the AMCOS formed unit of analysis. The findings indicate that; on perception of youth towards AMCOS cotton business, youth engagement was found to be determined by the profit earned after cost of production. Cotton was perceived to be costly among youth as compared to profits earned. Also, youth were had bad perception on agriculture they are interested in other business. On the available strategies by AMCOS on youth participation in agriculture; the possibility to engage youth as members of the AMCOS was among the strategy that had higher. Also, youth engagement with their parents who are members was found to have impact in bringing youth on board hence employment creation can be feasible. The paper concludes that; Youth membership needs deliberate efforts by different interventions to make them attractive to cotton business that are payable. Also, more interactive strategies are still needed that are participative and that are integrated with youth preference which can make youth to be inclusive in agriculture for leveraging the level unemployment in the sector. The paper recommends; Primary AMCOS are required to develop tangible strategies that are integrated to youth preference. Local government loans on youth should target youth groups which are doing agriculture. Also, programs on youth participation and engagement on cooperative farming business will enhance the breath and worthiness for youth engagement hence creates youth employment widening.

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Determinants of Operational Sustainability of Agriculture Marketing Co- operatives in Kilimanjaro Region, Tanzania

Hosana Edwin, Kitala Christian Malamsha — Sun, 31 Dec 2023 00:00:00 +0000

Sustainability of Agriculture Marketing Co-operatives (AMCOS) has been an intricate issue that is debated day to day. This study assesses determinants of operational sustainability of AMCOS, specifically focused on operational model, member participation and the business environment. The theoretical framework of the paper was resource dependency theory. The sample size of the study was 400 owners (members and board members). Respondents selected from 8 primary AMCOS, 4 from poorly operational sustainably AMCOS and 4 from actively operational sustainably primary AMCOS. Questionnaires were administered to collect data. The questionnaire return rate were 288 (72%) respondents and since a response rate of 60 percent is good for data analysis and reporting and rate of 70 percent and overall is excellent, the 288 questionnaires were analyzed for this study. Quantitative approaches were deployed to analyze data involving descriptive and inferential statistics using SPSS 20th version. The test of multiple linear regression model assumptions shows fitting of model in all assumptions (linearity, normality, homoscedasticity, autocorrelation and Multicollinearity). Findings showed that operational model influenced operational sustainability by (0.120) while business environment changes influenced operational sustainability by (0.486) and lastly Members’ participations influence the operational sustainability by (0.196). Therefore, it is worthwhile saying that business environment had a higher contribution on AMCOS sustainability by 48.6% followed by member participations by 19.6% while business operation model had a 12% of the contribution. The study recommends more education on the use of entrepreneurial model of operations than traditional model. AMCOS members have to be provided with more education and knowledge on the usefulness of being involved in decisions of a co-operative. Business environment requires the bigger consideration than operational model and member participation in the interventions for enhancing effects on the co-operatives sustainability. The focus on coping strategies on climate change remains important to ensure sustainability of AMCOS.

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Influence of strategic financial resources on performance of deposit taking SACCOs in Kiambu County, Kenya

Jacquiline Kageni, Nderitu Monica, Kamau Joe — Sun, 31 Dec 2023 00:00:00 +0000

Savings and Credit Co-operatives (SACCOs) face challenges in keeping up with technological advancements and competition from larger financial institutions like commercial banks. The utilization of strategic resources defines their competitive advantage and performance. This study examined the impact of strategic financial resources on the performance of deposit-taking SACCOs in Kiambu County, based on the resource-based view theory. A descriptive survey research design was used, targeting 227 management staff in Kiambu County, including 26 top-level, 67 middle-level, and 134 lower-level managers. Stratified sampling selected a sample of 14 top-level, 36 middle-level, and 71 lower-level managers. Primary data was collected via a semi-structured questionnaire, administered using the drop and pick method. The instrument's face and content validity was verified, and reliability was measured using Cronbach’s alpha (α), with a coefficient of 0.7 or higher deemed adequate. Data analysis involved descriptive and inferential techniques. R² assessed the model's predictive power, and the F-statistic evaluated model fitness. The significance of variables influencing SACCO performance was determined by P-values at a 0.05 significance level. Findings indicated a moderate deployment of strategic financial resources and a positive correlation with SACCO performance. These resources were statistically significant in predicting performance. The study concluded that strategic financial resources have a substantial impact on SACCO performance. It recommends that SACCO management focus on acquiring and optimally utilizing these resources to improve performance.

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Influence of Members’ Education Level Externality on Growth of Savings and Credit Co-operative Societies in Uasin Gishu County, Kenya

Wilson K. Metto — Sun, 31 Dec 2023 00:00:00 +0000

Member education levels is immensely an indispensable knowledge resource that may be fostered through co-operative education to improve member participation on contribution towards co-operative growth. However, in the recent years, most co-operative education programs target the co-operative board members and employees. This leaves aside members yet they are the decision makers, owners and patrons of co-operatives thus inhibiting their potentials from being fully used in aiding co-operatives growth. The purpose of this study was to examine the effects of member education levels externalities on growth of Savings and Credit Co-operative Societies (SACCOS). Absorption capacity theory guided the study. The theory states that absorption capacity is a set of organizational routines and processes, through which organizations accept education, learnt, assimilate and use acquired knowledge to transform. A sample of 147 SACCOS and 384 members were drawn with the aid of purposive and simple random sampling techniques. The research design used was cross-sectional while survey, in-depth interviews and focus group discussion were data collection techniques; data were analyzed using binary logistic regression and content analysis technique. Results revealed that member education levels have spillover effects that are significant predictors of member participation; the p values were all less than 0.05 at 0.05 significant level on share capital contribution. The member education level aspects that contribute to SACCOS growth were education attainment, literacy, occupation and knowledge. Co-operative education knowledge in member education levels contributes to spillover effects like innovation, watchdog role and building trust and loyalty. The study recommended SACCOS to tapped and utilize member education levels externality by enhancing mandatory provision of co-operative education to all members; mainstreaming co-operative education on education levels under strict supervision of the Ministry of Co-operatives and SMEs.

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Institutional Arrangements for Marketing Non-Coffee Produce by Primary AMCOS in Tanzania

Rwekaza G. Cronery, Maeda Christina M. — Sun, 31 Dec 2023 00:00:00 +0000

The importance of cooperatives to engage into multiple crop marketing has attracted majority stakeholders on marking other crops alongside traditional crops. Marketing involves Supply as cooperative options for building resilience to future market shocks resulted by marketing single crop. This paper was based on marketing institutional arrangements in marketing none coffee produce by primary AMCOS in Tanzania, evidence from Karagwe, Muleba, Buhigwe and Kigoma districts. Specifically, the paper was to; examine the possible marketing arrangements in marketing none coffee produce and assess the available stakeholders in marketing of non-coffee produce as market opportunity. The study was based on Resource Based Theory (RBT); where, crops which is farmers resource that for long time, cooperatives has not been utilizing. A total of 19 primary cooperatives were sampled. Focus Group Discussion (FGD) was used to interview members of the primary AMCOS. The findings of this study revealed that; in marketing arrangements on marketing none-coffee produce it revealed marketing strategies which were; Accommodation of Marketing conditions for optimal marketing requirements, the use of locally available materials for storage before selling of produce, controlling middlemen for sustainable marketing and marketing arrangement depending on crops types and requirements. Others were; seasonality marketing based on crop
seasons, payment on delivery, marketing through contractual farming and business networks. Also, the study concluded that, each crops needs its own marketing arrangement to expand business markets so as to raise the farm gate price among farmers. The paper recommends to all primary traditional agricultural cooperatives to make assessments of the available crops that can be marketed by these primary cooperatives. Also, the paper recommends to TCDC, and Ministry responsible for cooperatives, to assist agricultural cooperative in business marketing arrangements to venture into multiple crop business.

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Barriers to the Accountability Mechanisms of co-operative Unions on Primary Agricultural Marketing Co-operative Societies

Nathaniel Towo, Godfrey J. Kweka, Deogratius Aikaruwa — Sun, 31 Dec 2023 00:00:00 +0000

The co-operative unions’ role in flourishing the existence of agricultural primary co-operatives are scantly observed. This is justified by 98% of primary co-operatives with unclean reports from the account point of view. Following the Agency theory, this article explores the accountability barriers of the co-operative union to the primary agricultural co-operative societies in Tanzania. The purposive sampling technique was used to select fifteen agricultural primary co-operatives actively involved along the supply chain of coffee in three co-operative Unions. Focus group discussions were held with five board members chosen from each primary co-operative. Also, individual interviews were conducted with the co-operative union's management. The thematic content analysis was used to analyze the gathered information. The transcribed data were scrutinized into sub-themes, themes, categories, and global themes and redefined into collective themes. According to the study findings, cooperative unions are hindered by several barriers in fostering accountability practices to primary co-operatives. Such barriers include delays and absence of regular meetings, low information dissemination, lack of transparency on coffee collection and marketing channels, and low access to agricultural inputs. These barriers have discouraged the primary co-operatives from cooperating with the co-operative unions. The study findings recommend active policies to reduce accountability barriers and ensure the sustained growth of the co-operative sector in Tanzania.

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Workers’ Cooperative Societies and Attainment of Host Institutions' Visions and Missions: A Case of Wazalendo SACCOS at Moshi Co-operative University, Tanzania

Odax Manumbu Lawrence — Sun, 31 Dec 2023 00:00:00 +0000

Worker Savings and Credit Cooperative Societies (SACCOS) play a vital role in promoting the attainment of institutional goals. This study examines Wazalendo SACCOS LTD at Moshi Co-operative University (MoCU) in Tanzania, focusing on how it supports the university's vision of becoming an eminent institution committed to sustainable co-operative and business development through quality training, research, and advisory services. The problem addressed is the need to understand the extent to which Wazalendo SACCOS contributes to MoCU’s economic, social, and environmental goals. The study aims to evaluate the alignment of Wazalendo SACCOS with MoCU’s vision and mission by assessing its impact on financial empowerment, social cohesion, and environmental consciousness. The 30 members and management of Wazalendo SACCOS, utilising purposive sampling to select key informants and participants for focus group discussions. Data were collected through interviews, document analysis, and focus group discussions, and were processed and analysed using thematic analysis. Findings demonstrate that Wazalendo SACCOS significantly enhances financial stability through savings mobilization and accessible credit, facilitating professional development. Socially, the cooperative fosters a sense of ownership, collaboration, and inclusive decision-making, creating a supportive community. Environmentally, Wazalendo SACCOS promotes eco-friendly practices and raises environmental consciousness among its members. The study concludes that worker SACCOS like Wazalendo SACCOS significantly contribute to institutional attainment by promoting economic empowerment, social cohesion, and environmental responsibility. Recommendations include continued close collaboration between the university and the cooperative and the integration of cooperative principles into university policies and practices.

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Environment Sustainability Standards and Export Performance of Coffee among Co-operatives in Tanzania

Neema P. Kumburu, Sara Mmari — Sun, 31 Dec 2023 00:00:00 +0000

Tanzania, as with many other coffee-producing countries in the world, accesses niche export coffee markets is by complying with quality and standards set in these markets. However, the influence of environmental sustainability standards on export performance is not known. This study assessed environmental sustainability standards and their effects on the export performance of coffee among co-operatives in Tanzania. Employing mixed methods, the study utilized a sample of 384 respondents from nine cooperatives. Descriptive statistics and inferential analysis were employed for data analysis. It was concluded that the main certification schemes operating in Tanzania are Organic, Fairtrade, Rainforest Alliance, and C.A.F.E. Practices by Starbucks. Furthermore, the study found that export performance has fluctuated yearly, leading to mixed sentiments regarding adherence to these standards. Additionally, it was determined that environmental sustainability standards have a significant positive influence on export performance. The study recommends AMCOS to increase the use of recyclable packaging, minimize the use of agrochemical, control soil erosion and deforestation. This can be done by directing more efforts towards enabling sensitizing cooperatives to adhere to sustainability standards. Strategies such as enhancing information dissemination to address the disconnect between producing and consuming countries through a coherent, reformed, and supportive international policy agenda are suggested. Moreover, setting sustainability standards and creating an operating environment that aligns with the local realities of coffee production are recommended to ensure that the benefits of international coffee trade sufficiently reach the producers.

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Challenges and training needs to primary Agricultural Marketing Cooperative Societies (AMCOS) in marketing of non-coffee produce in Tanzania

Rwekaza Gratian Cronery, Maeda Christina M. — Sun, 31 Dec 2023 00:00:00 +0000

Marketing challenges in agricultural cooperatives affects marketing advantages; in turn affects benefits to members. These challenges need solutions that were found to be addressed by education and training; that needs training assessments. Training on cooperative business can become a strategic for recovery planning building back better the cooperative societies. This research was done based on survey design based on a qualitative design. Data were collected using 19 focus group discussions and 5 key informant interviews. The findings on the challenges indicated that; production capacity was found not meting market requirement. The reliable markets for farmers were found not to be feasible. Middle men were found to be the controller of the markets. Marketing of none-coffee produce were found to require specified training requirements especially on meeting the market requirements. Also, the measurement in terms of selling the produce has become a stumbling block in developing a win-win situation among the producers and buyers. On the training needs the findings indicates that; the mixed crop marketing was found to be among the component that needs training. Training on the quality maintenance of produce from production to marketing and training on contract and business negotiation; the negotiation capacity among farmers were found to limit business performance. The study concludes that, the performance of cooperative in alleviating marketing challenges were found to be the stumbling block for agriculture cooperatives to meets the markets requirements. The study recommends that; Primary AMCOS to solicit training on production increase by farmers in primary AMCOS to curb marketing demands. Local government and the ministry responsible for trade and marketing to provide regulation on how middlemen can venture fare in agricultural business marketing to moderate business practices. The cooperative department and cooperative commission should empower primary cooperatives on marketing non-coffee by capacity building.

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