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Presented by : SEBAHIZI PrudenceDirector : Dr. JOSE Ariyappillil Mathai

NATIONAL UNIVERSITY OF RWANDA Faculty of Economics, Social Sciences and Management

Department of ECONOMICSOption : DEVELOPMENT STUDIES

‘AGRIBUSINESS AND SMALL- SCALE FARMERS IN RWANDA’

A CASE STUDY OF PASSI FLORA GROWERS IN RULINDO DISTRICT

August 18, 2004

‘AGRIBUSINESS AND SMALL- SCALE FARMERS IN RWANDA’

A CASE STUDY OF PASSI FLORA GROWERS IN RULINDO DISTRICT

PRESENTATION OF THE MEMOIR ENTITLED

3Agribusiness and Small-Scale Farmers in Rwanda

BACKGROUND TO THE STUDY

the introduction of different forms of vertical integration and alliances

• The trend of market-oriented reforms,

• multilateral trade liberalization

• Structural adjustment programs

the increased integration of

world markets

Led to

the need for higher level of managed coordination.

a new approach of market access problems facing farmers in

developing countries.

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STATEMENT OF THE PROBLEM

The lack of access to market

- Need for agricultural sector to be

organized.

Strengthening the linkages between

rural farmers and agricultural market

5Agribusiness and Small-Scale Farmers in Rwanda

Objectives

General objective:

To analyze the contribution of agribusiness to

sustainable agricultural development given the

linkage between small- scale farmers and

processing industries

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Specific objectives are:

1. To examine the impact of links with agribusiness on farming

activities.

2. To study the impact of agro-allied industries on farmers’ income.

3. To analyze the contribution of farmers’ income, earned from fruits

sales, to the financing of inputs such as fertilizers, pesticides and

seeds.

4.To assess the advantages of grouping rural farmers in association

Objectives

7Agribusiness and Small-Scale Farmers in Rwanda

Hypotheses1. The links with agribusiness has increased incentives for

small-scale farmers to produce more.

2. Fruits processing industries demand in that particular area influences the level of farmers’ production of fruits in Rulindo district.

3. Agro-allied industries enhance farmers’ income;

4. The incomes farmers earn from sales of Maracuja help them to finance inputs (seeds, fertilizers and pesticides).

5. It is better for small farmers to group themselves in associations.

8Agribusiness and Small-Scale Farmers in Rwanda

Scope and limitations

This study adopted a case study approach.

Limit :

MARACUJA GROWING AND PROCESSING

IN RULINDO DISTRICT,

KIGALI RURAL PROVINCE

9Agribusiness and Small-Scale Farmers in Rwanda

Organisation of the Text

• Chap1 : General introduction

• Chap 2: Literature review

• Chap 3 Methodology

• Chap 4: Presentation of research findings.

• Chap 5: Summary

Literature review

Farm supplies

Feed Seed Machinery and

Equipment

Wholesale

Containers Fertilizers

Transportation Power

Farming

Processing

Distribution

Processed food Non-processed food Wholesale and

retail traders

All others

Consumer

Agribusiness organization

A flowchart of agribusiness

ASSESS SITUATIONMarket

Conditions

Competition Customers Your Firm

Identify SWOT Strengths,

Weaknesses,Opportunit

ies, Threats

Set

goa

ls

CRAFT STRATEGYPrioritize target markets

Develop core strategy

Position image

Develop market mix

Product, Price, Promotion, Place

Strategic Market Planning

IMPLEMENT STRATEGY

Implement

Evaluate results

Agribusiness in Rwanda : ADC Services

15Agribusiness and Small-Scale Farmers in Rwanda

Methodology- Type :

phenomenological methodology

( A case study )

- Methods :

Interview schedule and documentation methods

- Technique: Stratified sampling (proportionate sampling)..

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Household sex Group farmers Smallholder

farmers

Frequency Frequency

Male

Female

15 (65.2)

8 (34.8)

17 (81.0)

4 (19.0)

Total 23 (100) 21 (100)

Data analysis and interpretation

Distribution of respondents according to Sex

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Data analysis and interpretation

Educational status of respondents

Level of education Group farmers Smallholder farmers

Frequency Frequency

Illiterate

Primary dropouts

Completed primary

Secondary dropouts

Completed secondary

Diploma/degree

8 (34.8)

8 (34.8)

6 (26.1)

1 (4.3)

0 (0)

0 (0)

6 (28.6)

6 (28.6)

4 (19)

2 (9.5)

2 (9.5)

1 (4.8)

Total 23 (100) 21 (100)

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Data analysis and interpretation

Monthly

income

Group farmers Smallholder farmers

On farm

activities

Off farm

activities

Total On farm

activities

Off farm

activities

Total

< 5000

5000-10000

10000-20000

>20000

4 (17.4)

11 (47.8)

8 (34.8)

0 (0.0)

18 (78.3)

4 (17.4)

1 (4.3)

0 (0.0)

0 (0.0)

5 (21.7)

12 (52.2)

6 (26.1)

7 (33.3)

12 (57.2)

2 (9.5)

0 (0.0)

14 (66.7)

4 (19.0)

2 (9.5)

1 (4.8)

2 (9.5)

13 (62.0)

4 (19.0)

2 (9.5)

Total 23 (100) 23 (100) 23 (100) 21 (100) 21 (100) 21 (100)

Household income differentials between farmer groups

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Data analysis and interpretation

Production of Maracuja before and after the set up of processing plants.

Period Before After

Group farmers

Small farmers

Mean quantity Mean income Mean quantity Mean income

45 Kg/month

38 Kg/month

1,350 Frw

1,140 Frw

105 Kg/month

65 Kg/month

15,750 Frw

9,750 Frw

Total average 41.5 Kg/month 1,245 Frw 85 Kg/month 12,750 Frw

Growth rate in

%

- - 104.8 924.1

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Hypotheses testingUsing a t-test for the difference between means, the following hypotheses

were proved right:

•The links with agribusiness has increased incentives for

small-scale farmers to produce more.

•Agro-allied industries enhance farmers’ income;

•It is better for small farmers to group themselves in

associations.

Conclusion

Processing plants in Rulindo district have benefited

farmers in this particular area by :

-Providing market security for their produce,

-Increasing their income.

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Recommendations•Strengthen the links between the rural farmers with

agribusiness firms;

•Promote rural credit and increase public investment

in agriculture;

•Provide Technical assistance to farmers;

•Improve rural infrastructure

•Extend the scope of the study

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Thank You For your

attention