Analysis of Transaction Costs in Coffee Cooperatives: A Case of Arumeru District of Tanzania

Abstract

This study assesses the capacity of co-operatives in reducing the transaction costs in Arumeru district, Arusha region. The main objective was to compare transaction costs between users and non users of co-operatives. Descriptive statistics and independent sample t-test were used to analyse the data. When the transaction costs from all aspects were added up and the means compared by using t-statistic, the result showed that transaction costs incurred by members and non-members of co-operatives don’t differ significantly. The study recommends the monitoring and evaluation of policies formulated to insure good performance of coffee production and marketing.