Effects of Coffee Production on Household Income among Smallholder Farmers in Mbinga District, Tanzania

Abstract

Coffee production plays a crucial role in supporting rural livelihoods and the Tanzanian economy by generating income, creating jobs, and boosting export earnings. Despite its importance, smallholder coffee farmers continue to face challenges, including low productivity, volatile prices, and limited access to markets and inputs. However, its effects on household income are not explicit. This study thus examined the effects of coffee production on household income among smallholder farmers in the Mbinga District. A cross-sectional research design was employed, and data were collected from 327 smallholder farmers through structured questionnaires and interviews with key informants. Both descriptive and inferential statistics, specifically the chi-square test, were used to examine the association between coffee production and smallholder farmers’ income levels. The results revealed that the income from coffee production (mean TZS 3,695,069.11) was significantly higher than the income from other sources (mean TZS 1,542,350.75), demonstrating that coffee production is the main livelihood activity for smallholder farmers. Moreover, the number of coffee trees, years of experience, input use, yield, and market price were significantly associated with income level (p < 0.05). The study concludes that although coffee production substantially enhances household income, disparities persist because of differences in access to resources, farm size, and productivity. These findings underscore the importance of improving coffee production inputs, extension services, and market access to strengthen coffee farmers’ economic resilience and ensure sustainable rural livelihoods.