Opportunities and Constraints: The Warehouse Receipt System for Coffee Production and Marketing in Mbinga District, Tanzania
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This paper assessed the extent to which WRS has developed a transparent and efficient marketing system within the framework of a liberalized market to increase benefits of coffee production to smallholder farmers. It examines Mbinga District,one of first districts selected as a pilot for implementation of the WRS programme,using multistage data collection at the village level including a household survey,Focus Group Discussions, key informant interviews and observation. The units of analysis were primary societies, coffee farmers and their groups. The findings indicated that for those using it, WRS has improved coffee marketing and increased the participation of cooperatives and other groups in coffee marketing. In addition, WRS has promoted farmers’ groups by providing loans that have motivated them to improve coffee husbandry practices and hence increase quality,helping them qualify to sell coffee directly at the auction. At the same time, despite WRS being in operation for the last 8 years, most respondents were unaware of its existence. The study indicates the importance of more transparency on the side of rural primary societies, PCBs and banks, since farmers have the right to be informed and educated on the daily operations of their societies as well as coffee marketing process.
Abstract
This paper assessed the extent to which WRS has developed a transparent and efficient marketing system within the framework of a liberalized market to increase benefits of coffee production to smallholder farmers. It examines Mbinga District,one of first districts selected as a pilot for implementation of the WRS programme,using multistage data collection at the village level including a household survey,Focus Group Discussions, key informant interviews and observation. The units of analysis were primary societies, coffee farmers and their groups. The findings indicated that for those using it, WRS has improved coffee marketing and increased the participation of cooperatives and other groups in coffee marketing. In addition, WRS has promoted farmers’ groups by providing loans that have motivated them to improve coffee husbandry practices and hence increase quality,helping them qualify to sell coffee directly at the auction. At the same time, despite WRS being in operation for the last 8 years, most respondents were unaware of its existence. The study indicates the importance of more transparency on the side of rural primary societies, PCBs and banks, since farmers have the right to be informed and educated on the daily operations of their societies as well as coffee marketing process.
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