Peri-Urbanization and Commodity Diversification in Agricultural Marketing Cooperatives in Arumeru District, Tanzania

Abstract

This study was conducted in Arumeru District to assess the influence of periurbanization on commodity diversification in peri-urban AMCOS. Commodity diversification was observed in the context of individual members and AMCOS as an organization. The study was guided by Von Thunen Location theory and the FarmAgent model, and a cross-sectional design was applied. Using simple random sampling, the study involved 208 respondents from a population of448 active members. Primary data were collected through survey and key informant interview while secondary data were collected using documentary review. Numerical data were analysed using descriptive, multiple response and correlation analysis through SPSS version 21. Qualitative data were analysed using content analysis. The growth of peri-urbanization has resulted into various dynamics which subjected AMCOS and individual members into new environment with opportunities and challenges. To cope with the dynamics from peri-urbanization members have diversified into different on-farm and offfarm activities producing different commodities, although lacked support from their AMCOS. Peri-urbanization has also affected the factors of production such as land, labour, capital, information, and entrepreneurship as well as technology both positively and negatively. Regardless the challenges brought by peri-urbanization, still AMCOS members have been able to adapt to changing environment. The study recommended on changing AMCOS business objectives and by-laws to support members' diversified activities/commodities and make diversifications at organizational level.