Abstract:
This paper assesses the effects of cotton market instability on Agriculture Marketing Co-operative Society
(AMCOS) in Tanzania. Specific objectives of the study were to examine the effect of instability of cotton
farmers' revenue in AMCOS, evaluate the effect of decline in cotton farmers’ income in AMCOS, investigates
the effect of cotton market instability in AMCOS, and analysing the factors contributing to cotton market
instability. To gather data for the study, 207 respondents from ten AMCOS in Meatu District were
interviewed. Questionnaires and interviews were the methods of data collection used. Descriptive statistics
and inferential statistics were used to analyse data. The findings of the study reveal that market instability
is directly related to fluctuations in crop prices, a decline in cotton production, and a poor input supply
system, which in turn leads to poor crop quality. These factors significantly impact the prices and hence
revenue that cotton farmers receive. Therefore concluded that, the existing cotton market leads to
instability in AMCOS. The instability in revenue and decline in income lead to cotton market instability. Six
factors have been concluded to contribute significantly to market instability and they include competition
with other crops, low demand in the world market, low price levels, poor climatic conditions, poor input
supply, and low production levels. This study recommends that AMCOS should provide up-to-date
educational support to its members to enhance their understanding of the activities required to produce
high-quality crops. There should be an emphasis on increasing cotton production through the effective use
of extension services and the adoption of improved quality inputs. Finally, the government should continue
to revise agricultural policies to address the issue of inadequate input supply, thus mitigating the risk of
low production. This paper provides insights into cotton market instability ending interventions.
