Abstract:
The importance of a co-operative as a member-owned socio-economic institution has attracted
global focus to identify mechanisms by which co-operatives can meet members’ needs and
aspirations using co-operative democracy. In Tanzania, co-operative policy and legislation
highlight ownership and participative democracy to co-operatives; various efforts have been
made to ensure primary Agricultural Marketing Co-operative Societies (AMCOS) use member
democracy in decision making to sustain co-operative institutions. The study assessed the extent
to which democratic practices reflect member ownership in different decision making processes.
The study objective was to examine external interferences limiting co-operative sustainability
in the primary AMCOS in Bukoba and Moshi districts. A cross-sectional design was used
whereby 400 members were selected from ten primary AMCOS of Bukoba and Moshi districts.
The study used primary data by the use of household survey and interviews, focus group
discussions and key informant interviews. Documentary review was done to collect secondary
information. The findings on the external sustainability influence results shows government
roles were more identified as to tax members' produce than regulation and creating enabling
environment for co-operative business; a total of 47 deduction and tax items were found to effect
member produce on Farm Gate Price. Also, the decline of coffee price was the leading factor
affecting the co-operative business. The study recommends that ordinary members, board and
managers of the Primary AMCOS should prepare strategies that will expand the capital base of
their firm in order to have a sustainable capital system. Also, the role of the Government should
be creating enabling environment to co-operative rather than taxing co-operative members.
