Abstract
This paper clarifies the average structure of farm household economy in Lukani Village that is situated on the western slope of Mt. Kilimanjaro in Tanzania in order to facilitate the analysis of the effects of coffee price volatility on the villagers’farm management, households, and livelihood. The conceptual diagram of the farm household economy can be used to analyze the effects of the Coffee Crisis of 2001-02 (when international coffee prices were registering historic lows) and a fair trade project (wherein producer price increases are guaranteed).
