Mbise, Mirau2020-05-082020-05-082009http://hdl.handle.net/20.500.11810/5440This 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.enCooperatives, Transaction costs, Coffee, Marketing SystemJournal Article, Peer Reviewed