Growing Together: Why Farmer Cooperatives Are Key to Transforming Agriculture

Collaborating with Farmer Cooperative Societies, farmer groups, and NGOs supporting these groups.

In mid-2023, as part of our mission to create sustainable solutions for the agricultural sector, we focused on collaborating with Farmer Cooperative Societies, farmer groups, and NGOs supporting these groups. Farmer cooperatives are instrumental in mobilizing farmers to address common challenges, improve bargaining power, and gain better access to resources and markets.

By pooling resources, farmers within cooperatives can purchase inputs like seeds, fertilizers, and machinery at reasonable costs. They also gain access to credit facilities, share knowledge and technical expertise, and increase their influence in negotiating prices and terms for their products.


The Role of Farmer Cooperatives in Tanzania

Farmer Cooperative Societies in Tanzania contribute significantly to rural development, food security, and economic growth. These societies consist of at least 25 members and are led by an elected committee that includes roles such as Chairman, Vice-Chairman, and Treasurer. All cooperatives, including non-farmer ones, are registered with the regional commissioner’s office.


How We Started

Among our many solutions, the Agrosoko Warehouse Management System (AWMS) emerged as a key offering to support cooperatives. AWMS ensures traceability, transparency, and market reach.

In late 2023, our team engaged with the district agricultural offices in Mvomero, Morogoro, and supported farmers in forming cooperatives through a structured approach:

  1. Sensitization: Educating farmers on the benefits of cooperatives.
  2. Capacity Building: Training on cooperative leadership and member responsibilities.
  3. Entry Fee and Share Price Determination: Guiding members to set entry fees and share prices collectively.
  4. Formation of Cooperatives: Supporting the election of temporary leaders and providing guidance on administrative duties.

One of our first successes was the Nguluvuga Agricultural Marketing Cooperative in Pemba Ward, which now has 45 members focusing on crops like cardamom, beans, and pigeon peas.


The Sourcing Operation

In October 2023, we conducted a sourcing operation in Mvomero to aggregate pigeon peas into the Agrosoko system.

Phase 1:

We utilized a dilapidated storage facility in Dihinda Ward as a collection point.

Phase 2:

The Agrosoko Warehouse Management System was deployed to showcase its benefits, including streamlined payments, shared resources for storage improvements, and enhanced market awareness.


Challenges Identified

  1. Exploitation by Middlemen: Farmers sold pigeon peas to local traders at rates 30% lower than market prices.
  2. Communication Gaps: Limited access to mobile phones led to shared phone numbers, complicating traceability.
  3. Lack of Records: Farmers lacked formal records, limiting their access to credit and financial opportunities.
  4. Transaction Gaps: Many farmers lacked bank accounts, necessitating cash transactions and creating logistical challenges.

Solutions by Agrosoko

  • Digital Payments Integration: Using AWMS to facilitate payments via mobile money or cooperative bank accounts.
  • Improved Traceability: Registering farmers and their deliveries for better communication and record-keeping.
  • Direct Farmer Engagement: Providing pricing updates and purchase schedules via Bulk SMS and USSD to eliminate middlemen.
  • Data-Driven Credit Access: Maintaining records of farmers’ production and sales history to share with financial institutions.

Our Ongoing Work

Looking ahead, we aim to partner with cooperative unions, NGOs, and other stakeholders to scale our solutions. By leveraging the Agrosoko Warehouse Management System, we plan to streamline the pathway from production to market, ensuring sustainability and growth for cooperatives and smallholder farmers.

Together, we can drive long-term agricultural development and reinforce our commitment to creating a sustainable future.

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