Livelihood Capabilities’ Diversification Strategies Among Small- Scale Coffee Farmers in Hai and Arumeru Districts, Tanzania

Abstract

As the time went on, the level of livelihood complexities as a result of poor/low earning and income among small-scale coffee farmers is increasing. To ameliorate this situation, small-scale coffee farmers are compelled to adopt different livelihood diversification strategies so as to meet their daily livelihood requirements. Specifically, the paper intends to examine types of livelihood capabilities diversification strategies adopted by small-scale coffee farmers and assesses obstacles encountered by small-scale coffee farmers towards adopting livelihood capabilities diversification strategies. A cross-sectional research design using a mixed methods approach was adopted whereby 250 respondents were surveyed at their households. Data were collected mainly using a household survey, focus group discussion and key informants’ interview. Results revealed that shortage/lack of credit facility (capital) and available economic opportunities are among the determinants of small-scale farmers to adopt new livelihood diversification strategies. As a diversification strategy to coffee production, small-scale farmers were found dealing with livestock keeping, vegetable production, small and medium businesses while others were taking part in formal and informal employments. It is concluded that adoption of livelihood diversification strategies has been necessitated mainly by falling in income accrued from coffee; coffee is still a fundamental cash crop among small-scale farmers and small-scale farmers encounters several constraints in the process of producing coffee. The study recommends that credit sources with affordable conditionality should be made available and affordable by microfinance institutions to enable small-scale farmers acquire financial services for livelihood diversification strategies. Community members at village and ward levels should be proactive, ready and willing to diversify their economic activities by embarking on multiple income generating activities. Furthermore, the paper recommends to local administrative authority (wards and villages leadership) in collaboration with extension officers to take a deliberate initiative in mobilizing small-scale coffee farmers towards exploiting the available economic opportunities such as loans from microfinance institutions like Savings and Credit Co-operative Society (SACCOS) and Village Community Banks (VICOBA) where they can get capital for embarking into livelihood diversification strategy. In so doing, this will improve not only production among small-scale coffee farmers but also livelihood capabilities in meeting their daily lives and livelihood capabilities in adopting diversification strategies.