Analysis of Alternative Coffee Collection Financing in Selected AMCOS in Kilimanjaro Region

Abstract

This study examines the sources and characteristics of the alternative ways of financing crop collection by cooperative societies. Constrains and challenges faced in the liberalized market by those affiliated to their unions and those acting individually under G32 group were studied and reported. The study was based on selected rural primary cooperative societies (RPCA) in Kilimanjaro region. It was found that most agricultural marketing cooperatives were initially affected negatively by the liberalization of the economy. However, later, the majority were able to fine-tune, responding to market competitive pressures accordingly. For the case of Kilimanjaro region, findings demonstrate varying copying mechanisms for individual primary cooperatives. Nevertheless, in case of AMCOS, two approaches seem prominent. As indicated in the conceptual framework of this study, there are those which sold directly to the market and those which sold through their union, KNCU. This was consequences of KNUC sluggishness in responding to the market competition effectively, along with its operational inefficiencies then. For relieve, some of its member, primary societies brought up a resolution in its general meeting in 2003. One third of that special general meeting signed for lack of confidence to the union management, forming what is now called G32 group