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.
