The Influence of Farmer Collaboration on the Sustainability Performance of Cashew Nut Supply Chains in Tanzania

Abstract

Supply chains are key in implementing sustainability performance, yet it remains unclear how farmer collaboration can enhance the sustainability performance of Cashew nut supply chains. Cashew nuts are among Tanzania's major cash crops, with export revenues of over US$302 million in 2024. The crop has huge potential to eradicate poverty, reduce price fluctuations, and improve farmers’ bargaining power. However, the extent to which cashew supply chains deliver economic, social and environmental sustainability performance is still not well understood in the Tanzanian context. Grounded in Social Exchange Theory, this study examines the influence of farmer collaboration on sustainability performance of Cashew nut supply chains in Tanzania. A quantitative survey was conducted to collect data from 400 farmers in Mtwara, Lindi and Ruvuma regions. A proportionate stratified sampling technique was employed for selecting the sample. For data analysis, structural equation modelling was employed. Results show a significant positive influence of farmer collaboration on all three dimensions of sustainability performance, indicating that when farmers worktogether, they can gain cost advantages, spread risks and thereby improve their supply chains' sustainability performance. By studying all three dimensions within a single model, practitioners can draw on this knowledge to enhance production efficiencies, community welfare and environmental management. It is recommended that supply chain partners collaborate with policymakers and design programs that strengthen group-based governance structures and build grassroots capabilities for collaborative actions. The article contributes to the operations research literature by operationalising sustainability performance as a multidimensional supply chain problem, providing empirical relationships that prioritise collaboration among farmers to improve economic, social andenvironmental sustainability performance.Keywords: Farmer Collaboration, Sustainability Performance, Supply Chain, Cashew Nut