Survival Strategies for Primary Co-Operative Societies in Arusha Region After Trade Liberalisation

Abstract

This study mainly focused on the survival strategies that were being used by selected cooperative enterprises in Arusha region after trade liberalisation. In particular, the study sought to assess the performance of those co-operatives in coffee marketing. The socioeconomic advantages and disadvantages, relating to the identified survival strategies, were also analysed to establish the extent to which they affected the co-operative members of those enterprises. In the same vein, the study also sought to identify policy implications of those survival strategies within the framework of a liberalised market economy. This research was conducted in Arumeru district, in Arusha region. According to the author, Arusha region was selected because: • It was one of the major areas which cultivated Arabica coffee the market share of which had declined considerably after trade liberalisation in coffee marketing; • The region had co-operative societies with a variety of marketing channels - some selling directly to the auction, others to the union, and still others to private buyers; and • Historically, the region used to have strong co-operative societies. Engare Olmotonyi and Nkoanrua agricultural marketing co-operatives, which were selected for this study, were both operating under the union - Arusha Co-operative Union (ACL)) - before trade liberalisation in coffee marketing. However, immediately after the liberalisation, both societies pioneered to sell directly to the auction. The two societies also established multiple marketing channels. Therefore, it was expected that their long experience in this kind of marketing arrangement would provide adequate and useful data for this study. Further, given the fact that their main cash crop was coffee, it was relatively convenient to assess the societies' performance by studying the income pattern from that crop alone.