Abstract:
The co-operative model is considered to be an essential means to empower small scale farmers
in the process of improving food security. Despite the extensive literature, the specific question
about how co-operatives facilitate the process of enabling small scale farmers including dairy
farmers lack empirical evidence. This study used two dairy co-operatives, i.e., Nronga and
Kalali Dairy Co-operatives which are in Hai District in Kilimanjaro, Tanzania, to learn the
roles of co-operatives in eliminating market failure and reducing the costs in empowering small
scale dairy farmers. The data were collected from 387 members of the two co-operatives. The
quantitative data were analysed using descriptive statistics while the qualitative data were
analysed using content analysis method. The results show that the co-operatives are beneficial
to the small scale farmers in terms of cutting down costs and ensuring market efficiency.
However, the effectiveness of co-operatives remained at risk because the concept of dairy
farming and commercialized agriculture as a whole is yet to be fully sold to the smallholder
farmers. Therefore, the levels of Government support and partnership with companies regarding
training and other capacity-building exercises, provision of extension services and raising
awareness levels in dairy farming and other best practices are required to improve
understanding among farmers and improving co-operatives to ensure sustainable growth of
small scale farmers.