1. Moshi Co-operative University
Collective Action among Smallholder Farmers in Tanzania: What are the Prospects and Challenges?
Benson Otieno Ndiege
Moshi Co-operative University
P.O.BOX 474, MOSHI, TANZANIA

2. Collective action
John Mwebe (2017)

3. Collective action Is Collaborative efforts
The group solves their common problem jointly
Is a model for Community-led Development

4. Collective action theory

5. Food security
Food insecurity remain intense in Low Income Countries (LIC)
Food insecurity is among the crucial crisis in Africa
Population growth rate threaten food security
There is inability to produce and distribute

6. Stakeholder farmers challenges in Tanzania
smallholder farmers
Adaptation of Mechanized agriculture, is a challenge
New approaches and adaptation of new approaches and technologies require financial resources

7. Per capita supply of substances providing energy
Food Balance Sheets - June 2010

8. Limited financial services
Unreliably production
Untimely production
Inappropriateness of the input suppliers
Inadequate capacities in the post-harvest management
Poor link in the value chain marketing

9. Collective action among smallholder farmers
Smallholder farmers form groups to increase their ability to access agricultural finance.
Including SACCOS, AMCOS and FAs
The collective action have prospects and challenges of wholesale lending to smallholders farmers.
four(4) cases of farmers groups in Morogoro and Dodoma Tanzania illustrate prospects and challenges

10. Collective action among smallholder farmers
Usually, the associations or co-operatives are liable for the loan from a lender.
They are responsible for collecting loans from its members and pay to the lenders.

11. Prospects
The collective actions is relevant in strengthening individual farmer’ financial access
- Increase creditworthy
- Promote savings
build self-reliance
Improvement of agricultural productivity
and food security

12. Challenges
Majority of small scale farmers did not payback their loans,
why?
- receiving large amount of money than their real need
- lenders give money to the farmer in one instalment
- lenders did not comply with group regulations
- Bad time - Farmers given money when they do not need it
- limited financial literacy

13. Is it sustainable model?
Failure to repay their loans increases financial burden
Defaulter defect from the group, thus, frightening cooperation
Remaining members may not be ready to bear burden, thus, jeopardizing sustainability of groups
Then, deepening poverty among small scale farmers.

14. Lesson learned
Despite the relevance of the collective action in extending financial services to smallholder farmers, there is a need to pay much attention on implementation arrangement as it is a key factor in enhancing group collective action performance

15. THANKS