Direct coffee export business and improvement Of amcos members livelihood in tanzania Evidence from primary co-operative societies pulled away from Kilimanjaro native co-operative union

Abstract

The current market reform has brought changes through which coffee business is undertaken in Tanzania, in a traditional marketing system Kilimanjaro Native Co-operative Union (KNCU) could collect and market coffee on behalf of the primary co-operative societies dealing with coffee production in Kilimanjaro region, today some primary co-operative societies which pulled themselves away from KNCU are selling their coffee direct to the market for the purpose of generating income and improving their livelihood. Findings shows that Direct Export Coffee Business contribute positively towards AMCOS members livelihood in Tanzania including maintaining higher levels of income, making small farmers able to construct decent houses and send their children to school, and provision of health insurance to sustain rural livelihoods. The study recommended that, there is a need for government to intervene and provide enough support to these AMCOS including providing co-operative education and training to members, putting in place attractive trade policies and conditionality to foster coffee business, presence of governance and good leadership within the primary co-operative societies, access to financial services, adoption of new production technology and employing Competitive Marketing Strategy to resist market competition.