Quality of life of smallholder coffee farmers using warehouse receipt system in Mbozi District

Abstract

This study was conducted to assess the quality of life of smallholder coffee farmers that use warehouse receipt systems in the Mbozi District. The grounded theory research design was applied to assess the benefits of the warehouse receipt system in smallholder coffee farmers’ lives by using a qualitative approach. Studies have shown that warehouse receipt systems give farmers access to loans; hence a concern of improvement in the quality of life of smallholder coffee farmers arose. The sample size of the study was 30 respondents from smallholder coffee farmers, Coffee Management Services and Mbozi Coffee Curing Company Ltd warehouse operators, Agricultural and Marketing Co-operative Society leaders, Co-operative and Rural Development Bank, and Mbozi district co-operative officers, obtained by purposive and convenience sampling. Data was collected from interviews and conducting focus group discussions. Thematic analysis was used to analyse data. The study found that the warehouse receipt system has improved farmers’ material living conditions, quality of education attained by their dependents, quality of farming activities, quality of health, economic security, and physical safety. The study concluded that the warehouse receipt system improves the quality of life of smallholder coffee farmers in the Mbozi District. The government through the Bank of Tanzania is advised to review and set favourable terms and conditions for loans payable to farmers. The focus should be on the reduction of loan interest rates charged by commercial banks and setting favourable loan repayment periods in order to reduce the costs added to farmers and promote farmers’ involvement in the warehouse receipt system