Determinants of members loyalty to cashewnut agriculture marketing co-operative societies in Mkuranga district, Tanzania

Abstract

Agricultural co-operatives are playing a crucial role in uplifting smallholder farmers and development of the agribusiness sector. The main objective of this study was to examine the determinants of members' loyalty to cashewnut agricultural marketing co operative societies (Amcos). Amcos in Mkuranga, Tanzania. The specific objectives were to examine socio-demographic factors affecting members loyalty to cashewnut Amcos; determine the influence of services provided by Amcos on members loyalty; examine the effect of Amcos service quality on members loyalty; Examine the effect of cashewnut Amcos leadership on members loyalty. This study was guided by field theory as the leading theory and Servqual model. The study adopted a cross-sectional research design. The target population of the study was all cashew nut farmers who are members of Amcos in Mkuranga district, a sample of 350 respondents was involved. The study gathered both quantitative and qualitative data. The qualitative data were analysed through content analysis while the quantitative data were analysed using descriptive statistics, Servqual model and regression analysis. The study findings indicated that socio-demographic factors, including age, level of education, and farm size, significantly influence cashew nut farmers' loyalty to agricultural marketing co operative societies. On the other hand, gender, marital status, and family size were found to have no significant impact on farmers' loyalty. Co-operative training and education, marketing services, subsides farm input, linkage to financial institutions had the most substantial positive effect on members' loyalty. The Servqual model revealed significant gaps between members' expectations and perceptions in various dimensions; both had a negative gap ranging from 3 to 8. The study concluded that the independent variables, including linkage to financial institutions, subsidised farm inputs, co-operative training and education, and marketing services, collectively explain approximately 51% of the variation in members loyalty. These variables were found to have a positive influence on farmers' loyalty, with co-operative training and education having the most substantial impact. The study recommends that Amcos should tailor their strategies and services based on farmers' socio-demographic characteristics to enhance loyalty. The study recommends that Amcos should prioritise and invest in providing high-quality training and educational programs for farmers. Given that training and education were found to have the most substantial positive effect on loyalty, Amcos should allocate resources to develop comprehensive and effective training modules on various aspects of agriculture and co-operative management. The study recommends that Amcos should strengthen their leadership and management practices, with a particular emphasis on providing training and educational opportunities. Effective leadership is crucial for creating a positive and supportive environment within the co-operative.