Sugarcane Farmers' Satisfaction with Contract Farming Service Quality under the Co-operative Model in Kilombero Valley, Tanzania

Abstract

Farmers' associations in Kilombero Valley have been providing services to sugarcane contract farmers and helping them with their farming activities since the 1990s. However, there have been elements of dissatisfaction with the service quality provided by the associations for many years. To address the issue, farmers in Kilombero Valley switched from using the farmers’ association model to Agricultural Marketing Co-operative Societies (AMCOS) in 2017. It has not been determined whether there is a positive change as a result of the shift. This article assessed service quality under Agricultural Marketing Co-operative Societies in Kilombero Valley. The aim is to determine farmers’ satisfaction level with the services. The study employed a cross-sectional design. Both simple random and purposive sampling techniques with proportionate stratified sampling methods were used. The SERVQUAL model's five dimensions were used to collect data from 361 smallholder sugarcane contract farmers via a questionnaire-based survey and key informant interviews. Descriptive statistics and structural equation modelling based on the partial least square were used in analysing quantitative data. The study found a relationship between service quality dimensions and smallholder farmer satisfaction, with empathy, assurance, and tangibles being statistically significant. Despite switching from using the farmers’ association model to AMCOS, smallholder sugarcane farmers had a negative perception on the contract farming service quality provided by AMCOS. It is recommended that service quality should be improved to meet the needs of smallholder farmers and reduce complaints, particularly regarding delays in supply of farming inputs. Also, AMCOS leaders and staff should improve their customer service and service efficiency to meet farmers' needs.