Contributions of Cooperatives in Agricultural Marketin : a Case study of the Cashew nut product in the Mtwara Region

University essay from SLU/Dept. of Economics

Abstract: Tanzania's Government Cooperative Act 2008 presents a promising step in the right direction toward agricultural growth in Tanzania by promoting the development of a cooperative sector. Agriculture in Tanzania plays a significant role in the economy, particularly cash crops. This thesis investigates the Newala district cooperative in the Mtwara region to understand how a cooperative can support cashew nut production and international marketing. This study gives an introductory account of cooperatives in agriculture, including cooperatives' meaning, history, and role, with a particular focus on the Tanzanian context. The researcher has collected primary data through a questionnaire sent to respondents at the Tandahimba Newala district cooperative. The research also used secondary data, such as government and company documents, the internet, and articles, to form a background of organisations in the Tanzania cashew nut market. The primary and secondary data present the basis for the report's findings, discussion, and conclusions. The findings and conclusions suggest that cooperative marketing may be vital for bringing small farmers together to gain market power for collective benefits. The studied evidence shows how unions can be involved in the actual farming process to the marketing of produced goods by providing agricultural extension training and working as a bridge between different stakeholders, such as the farmers, banks, government, training institutions, and the market (buyers). At the same time, the continued development of the studied cooperative's market position is facing significant challenges from the government, which is intervening in the cooperative's decision-making in pursuit of political strategies and interests. Findings show that cooperative members would like the government to respect the instructional structures for the collective to be an independent entity to work accordingly to serve its purpose towards agricultural growth.

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