Managerial crisis in agricultural marketing co-operative unions and the legal environment in Tanzania mainland: the case of Shirecu and Nyanza co-operative unions.

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University of Dar es Salaam
Co-operative societies in Tanzania have been in existences for decades and have played a major role in the economy of the country, particularly in the agricultural and marketing of major cash crops namely cotton, coffee, cashew nuts, tobacco, tea and sisal. From the beginning, co-operative societies were regarded as instruments for improving the social and economic development of the people in terms of income generation. As such the majority of co-operatives had, since the colonial period, been engaged in either agricultural or marketing of farm produce mainly cash crops. In order to ensure that co-operatives operated in an organized system, laws and regulations were enacted so as to provide guidelines on how cooperative societies would be organized and run. The Laws aimed at facilitating the smooth management in order to achieve the objectives of their establishment. Since their introduction, co-operatives have not enjoyed a smooth operation. They have experienced a tough and challenging operational problems on account of unending changes of laws and regulations on co-operatives; state interference as well as serious mismanagement of the affairs of their business. Apart from the several changes in co-operative laws aimed at improving performance of their management, there is little achievement on this respect manifested by mismanagement of the business and properties leading to unending crises in these organizations. This work therefore discusses the history and development of co-operatives in Tanzania mainland and examines their objectives through out the period under discussion. Further, the work examines the organizational and structural management of co-operatives and critical review of various legislation on co-operatives is made vis-a-vis the existing managerial crises in co-operative unions under discussion. The work discusses the major contributors to the existing crises and roles played by the law on co-operatives, the state and members themselves. A critical analysis is made to establish whether the role played by cooperatives has changed with time by comparing performance of cooperatives throughout the period under discussion. Finally the work discusses the possible causes and effect of managerial arises in co-operatives by referring to Nyanza Co-operative Union (NCU) and Shinyanga Region Co-operative Union (SHIRECU) as case studies of the subject. An assessment of the consequences of those crises is made with reference to NCU and SHIRECU and recommendations to arrest the situation follow thereafter.
Agriculture cooperative, Law and legislation, Co-operative unions, Tanzania mainland, Shirecu and Nyanza co-operative, Management, Shinyanga Region Co-operative Union (SHIRECU), Nyanza Co-operative Union (NCU), Agricultural and marketing, Cash crops
Kugesha, F. H. (2004). Managerial crisis in agricultural marketing co-operative unions and the legal environment in Tanzania mainland: the case of Shirecu and Nyanza co-operative unions. Masters dissertation, University of Dar es Salaam. Available at (