Abstract:
Smallholder dairy farmers in Tanzania face persistent challenges in
accessing formal markets and securing fair prices for their produce. Although
cooperatives offer a promising platform for collective investment and market
integration, actual financial participation remains uneven. This study explored what
drives dairy farmers in Sanya Juu to invest—or not—in a proposed dairy processing
cooperative. Drawing on the Theory of Planned Behavior, it examined how farmers’
belief in cooperative values, their financial literacy, and perceived benefits influence
their investment decisions. A total of 150 dairy farmers, including both cooperative
members and non-members, were surveyed using structured questionnaires. Key
informants were used to collect qualitative data for triangulation of quantitative
findings. Quantitative data were analyzed through descriptive statistics, t-tests, and
binary logistic regression while qualitative data were thematically analyzed. The
findings indicate that while 63.3% of all respondents expressed willingness to invest,
a slightly higher proportion of non-members (67.2%) were willing compared to
members (60.7%). Differences in belief in cooperative values between the two
groups were generally insignificant, although non-members showed stronger
conviction in integrity, while members placed more emphasis on solidarity. Binary
Logistic regression analysis revealed that belief in self-help, self-responsibility,
solidarity, and equity significantly influenced the willingness to invest. Demographic
factors such as age, sex, and education had no meaningful predictive power. The study concludes that farmers’ internal commitment to cooperative values—rather
than membership status or background—plays a decisive role in shaping their
investment behavior. To encourage broader participation, cooperatives must foster
transparent leadership and reinforce cooperative values through continuous education.
Policy support should also prioritize inclusiveness and trust-building mechanisms to
expand member and non-member engagement.
