Abstract
In 1976 Tanzanian coffee farmers were receiving 44 per cent of the world price, as compared with 76 per cent in Kenya. The imposition of a windfall coffee tax combined with the changes in relative prices against exports brought about by macroeconomic policies meant the little of the windfall directly accrued to peasants. There were, however, profound changes in the peasant economy during the period of our analysis, which we will argue, in Part III, were attributable to macroeconomic performance, and hence indirectly to the coffee boom.