Contract farming and the role of primary cooperative societies among tobacco farmers in Urambo, Tanzania

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Tobacco has been grown in Tanzania since the 1950s and remains a designated strategic crop. As part of a transformation strategy, the government has turned its attention to strengthening farmer cooperatives. This paper examines the role of producer cooperatives in mediating between smallholder farmers and tobacco-processing companies. The paper traces the transition from public marketing boards to private sector predominance and contributes to an understanding of the dynamics within contractual arrangements between lead firms and farmers. A survey of 228 households followed by in-depth interviews with tobacco-processing companies and cooperatives highlights a shift in power away from village government officials toward cooperative leaders, as the latter have become gatekeepers for various development projects offered by tobacco traders (especially through Corporate Social Responsibility programs) sidelining village executives. However, cooperatives still have limited bargaining power to negotiate better deals for tobacco producers, little capacity to influence the inputs distribution system and no control over side-selling. These findings shed light on the political role of cooperatives and the limits of their incorporation into rural development strategies.
Original languageEnglish
Publication date13 Nov 2019
Number of pages11
Publication statusPublished - 13 Nov 2019
EventPOLICOFA National Conference - Whitesands Hotel, Dar es Salaam, Tanzania, United Republic of
Duration: 13 Nov 2019 → …

Conference

ConferencePOLICOFA National Conference
LocationWhitesands Hotel
CountryTanzania, United Republic of
CityDar es Salaam
Period13/11/2019 → …

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