Who wants to get involved? Determinants of Sanya Juu farmers’ willingness to invest in a dairy processing co-operative plant

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.