VALUE CHAIN COORDINATION IN COFFEE SECTOR: AN ANALYSIS OF INFLUENCING FACTORS FOR SMALLHOLDERS UPGRADING IN TANZANIA
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Academy of International Business Sub-Saharan Africa Chapter
Abstract
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This study aims to provide understanding of how value chain coordination in coffee sector influences smallholders upgrading in Tanzania. The study’s conceptual framework is based on global value chains and institutional perspective. Qualitative data collection approach through interviews, focus group discussions and documentary review was employed. Results indicate that critical factors can be grouped into institutional framework, standards, financing, and business management. The study recommends that to achieve a well-coordinated value chain that enhances smallholders upgrading, there is a need to improve institutional infrastructure, encourage local investment, facilitate good business models, and create financing mechanism for coffee production and selling.
Keywords
Qualitative method,, Transaction cost Analysis, Value chain coordination, upgrading, coffee, Tanzania