In-Depth Assessment of Key Factors Affecting Coffee Production in Tanzania

Abstract

Coffee has been among the traditional cash crops and one of the main contributors to foreign earnings in Tanzania. Consequently, earnings from its exports have remained low due to various production challenges which in turn affects export growth. These challenges have never been properly and intensively recognized for better decision-making. Therefore, this study was set to provide an in-depth assessment and understanding of key factors affecting coffee production in Tanzania.The study used simple random sampling to collect information from 364 respondents in four highly coffee-growing districts in Ruvuma, Mbeya, and Songwe regions. Qualitative and quantitative data were collected through structured questionnaires from small-scale farmers. Data were then analyzed by using a statistical Package for Social Sciences (SPSS) and Excel. From the findings, poor agronomic practices such as inadequate application of fertilizer, poor pesticides and disease control, and aged low-yield coffee trees were found to be the main factors that strongly explain the relationship with low coffee production output due to their significant results. Furthermore, using regression the other variables found to significantly affect coffee production output level were limited access to finance and inadequate extension services. Based on the findings, sustainability of the coffee sector development, intensive government intervention is needed by putting more priority on training farmers best agronomic practices in the right way. This way, small farmers can be aware of the importance of the application of required agronomic practices as a key factor in the scale-up of productivity and production output. The Bank of Tanzania can also efficiently address the challenge of small-scale farmers in obtaining soft loans at a reasonable cost from financial institutions by creating an enabling environment. This should include the provision of a special loan facility to commercial banks connected with conditions to beneficial banks to lend to farmers at an indicative rate that can be affordable to small-scale coffee growers. These findings will inform policymakers and coffee stakeholders in the coffee value chain on the best actions and decision-making to enhance the sector's performance.