The Changing Features of Governance in Agro-Food Value Chains: How Climate Change and Domestic Regulation Are Reshaping the Tanzanian Coffee Industry

Climate change and domestic regulatory interventions in producing countries are transforming the mechanisms of governance in agro-food value chains. The suitability of biophysical conditions for the cultivation of different crops in different areas is changing. At the same time, domestic reforms in several producing countries are seeking to empower smallholder farmers. In this paper, drawing from primary data collected for a collaborative research project, we assess the combined impacts of these factors on the governance of the Tanzanian coffee value chain. We show that, while climate change initiatives and domestic market reforms could have led to a more active role for smallholder farmers and their cooperatives in governing the value chain vis-a-vis international coffee traders, in reality they have further weakened their position. We conclude that the dominant role of global buyers in governing coffee value chains is likely to remain intact and that smallholder farmers are likely be bearing much of the cost of climate change adaptation and mitigation.