FACULTY OF AGRICULTURE
DEPARTMENT OF AGRICULTURAL ECONOMICS AND
AGRIBUSINESS
ACADEMIC YEAR: 2011-2012
THE PROMOTION OF RICE PRODUCTION AS A SOLUTION TO
THE LOWER LEVELS OF SAVING AND INCOME IN THE
RURAL AREAS OF RWANDA.
CASE STUDY: KOAIRWA COOPERATIVE
STUDY PERIOD: 2007-2011
dissertation
submitted
Agriculture
as
to
partial
the
faculty
of
fulfillment
of
DECLARATION
I, NGANGO Jules, hereby declare that, the work presented in this dissertation entitled
THE PROMOTION OF RICE PRODUCTION AS A SOLUTION TO THE LOWER
LEVELS OF SAVING AND INCOME IN THE RURAL AREAS OF RWANDA: Case
Study of KOAIRWA Cooperative is my original work and has never been presented
elsewhere for any academic award.
All consulted references have been systematically presented in references.
Signature: .........................
NGANGO Jules
Date: .................................
ii
DEDICATION
iii
ACKNOWLEDGEMENT
I am greatly indebted to Mr. HABIMANA Kizito for undertaking the tasks of supervising
this work, his willingness, guidance and assistance to identify in this research. I gained a
tremendous amount of knowledge under his supervision.
I am deeply indebted to the Government of Rwanda for providing funds for my studies. A
special word of appreciation goes out to the National University of Rwanda through the
faculty of Agriculture; I admire your advices, knowledge provided, favorable learning
environment and cooperation during my studies at University.
Special thanks go to the entire management of KOAIRWA for providing the required
information. Without the cooperation and involvement of the farmers at Rwasave
marshland, this work would have gone nowhere. You have taught me a lot about rice. Thank
you also for embracing new things. Your patience in answering my numerous questions and
willingness to work with me on the field is well appreciated.
I express again my gratitude and thanks to my father MUGEMANGANGO Andr and my
mother NYIRABAGABE Jacqueline for your love, your encouragement, advices and
support during my studies. Special recognition also goes to my sisters MUKAMUGEMA
Alice, MUGEMA Julie and MUKANGANGO Juliette for their encouragement and support.
Finally, I am grateful to all my colleagues and all students of the faculty of agriculture for
their moral support during the four years of my studies at National University of Rwanda.
May God bless you all!
iv
: Before Christ
CIP
CODERVAM
et al.
: et ses collaborateurs
FAO
GDP
Ha
: Hectare
IFAD
IRRI
ISAR
Kg
: Kilogram
KOAIRWA
MINAGRI
MINECOFIN
NRDS
OLS
RADA
RSSP
Rwf
: Rwandan francs
SACCO
SPSS
: tonne
UCORIRWA
%
TABLE OF CONTENTS
DECLARATION.................................................................................................................. i
DEDICATION .................................................................................................................... ii
ACKNOWLEDGEMENT .................................................................................................. iii
LIST OF SYMBOLS, ABBREVIATIONS AND ACRONYMS ......................................... iv
TABLE OF CONTENTS..................................................................................................... v
LIST OF TABLES ............................................................................................................. ix
LIST OF FIGURES ............................................................................................................. x
ABSTRACT ....................................................................................................................... xi
CHAPTER I. GENERAL INTRODUCTION ...................................................................... 1
1.1. BACKGROUND OF THE STUDY .......................................................................... 1
1.2. PROBLEM STATEMENT........................................................................................ 2
1.3. RESEARCH QUESTIONS ....................................................................................... 4
1.4. HYPOTHESES ......................................................................................................... 4
1.5. OBJECTIVES OF THE STUDY ............................................................................... 4
1.5.1. General Objective ............................................................................................... 4
1.5.2. Specific objectives .............................................................................................. 4
1.6. SCOPE OF THE STUDY.......................................................................................... 5
1.7. SIGNIFICANCE OF THE STUDY ........................................................................... 5
1.8. ORGANISATION OF THE STUDY ........................................................................ 5
CHAPTER II: LITERATURE REVIEW ............................................................................. 6
2.1. INTRODUCTION..................................................................................................... 6
2.2. DEFINITIONS OF KEY CONCEPTS ...................................................................... 6
2.2.1. Rice .................................................................................................................... 6
vi
vii
viii
ix
LIST OF TABLES
Table 1: Top 10 rice producers by country in 2009 (paddy production in tons) .................... 9
Table 2: Area, average yield, rice production and night temperatures for each rice scheme. 12
Table 3: Rice Production Trends in Rwanda, 2000-2009.................................................... 14
Table 4: Total Milled Rice Production ('000 t) ................................................................... 15
Table 5: KOAIRWA rice production and commercialization ............................................. 28
Table 6: Age group of respondents in Rwasave marshland ................................................. 30
Table 7: Family size of respondents in Rwasave marshland ............................................... 32
Table 8: Annual income before joining KOAIRWA .......................................................... 34
Table 9: Quantity of rice produced by KOAIRWA farmers in 2011 ................................... 35
Table 10: OLS estimates of rice production in Rwasave marshland ................................... 36
Table 11: Monthly level of saving after joining KOAIRWA .............................................. 38
Table 12: The use of loan for those who have taken it ........................................................ 40
LIST OF FIGURES
Figure 1: Map of Rwanda showing the major Rice growing areas. ..................................... 13
Figure 2: Sequence of postharvest operations..................................................................... 16
Figure 3: Rice marketing channels in Rwanda ................................................................... 17
Figure 4: Distribution of Respondents by sex ..................................................................... 29
Figure 5: Marital status of respondent ................................................................................ 31
Figure 6: Education level of respondents ........................................................................... 32
Figure 7: Respondents views on the reasons of joining KOAIRWA ................................. 33
Figure 8: Size of land under rice cultivation ....................................................................... 35
Figure 9: Annual income (Rwf) from sales in 2011 ............................................................ 37
Figure 10: Members of KOAIRWA who have bank account.............................................. 38
Figure 11: Members of KOAIRWA who have taken a loan in the last five years ............... 39
Figure 12: Economic advantages of growing rice ............................................................... 40
xi
ABSTRACT
Rice consumption in Rwanda is on the rise due to the increase in urbanization and
population growth. Much of the rapidly growing demand for rice in Rwanda will be met
from increased rice production in irrigated marshland, which covers about 1.2 % of the total
arable land. Therefore, rice production in Rwanda should be promoted through various
strategies such as extension of cultivable area of marshlands, construction and maintenance
of the water supply systems to permit exploitation of the cultivable areas through the two
growing seasons.
This study has examined the promotion of rice production as a solution to the lower levels of
saving and income in the rural areas of Rwanda. Case study of KOAIRWA Cooperative
with study period: 2007-2011. The study was mainly based on data from 65 members of
KOAIRWA located in Huye District, Southern Province.
The study had two main specific objectives: To analyze the constraints of rice production in
Rwanda and to identify the strategies of promoting rice production in Rwanda in general.
The researcher adopted quantitative and qualitative methods of data collection through selfadministered questionnaire, interview guides and library search.
Findings from the study seem to indicate that rice production has contributed significantly to
the increase of income for farmers through the sale of their production, thus the sale of rice
production has contributed to the food security of the Rwandan population living in Huye
District. Furthermore, the establishment of KOAIRWA has contributed a lot to the
promotion of welfare of the members such as the increase of income, the improvement of
savings, and access to health services and the payment of school fees of their children.
After analyzing and interpreting the data, recommendations and suggestions on what to be
implemented by the government and the farmers cooperative of rice were highlighted in
order to increase the levels of saving and income in the rural areas of Rwanda.
Agriculture also
research program to improve rice quality. Since then, rice has become one of the major food
crops grown in Rwanda, (J.N. Jagwe et al., 2003).
In Rwanda, rice is cultivated mainly in the valley swamps, referred to as marshlands. They
are highly conducive for growing rice crop. In some marshlands, rice is the only crop that
thrives well and produces better yield than any other traditional crops during rainy season,
(Kathiresan, 2010).
The production of rice has been given a high priority and so the government is seeking to
increase productivity from the flood prone valley bottoms that are conducive for rice
growing. It has also been observed that rice is capable of giving very high yields of over 7T
per Ha per growth cycle, which is far above the yield from any other crops that can be
planted in marshlands. Therefore, rice production is considered the most profitable
enterprise and provides a viable alternate for millions of resource-poor rural farm families in
Rwanda, (J.N. Jagwe et al., 2003).
1.2. PROBLEM STATEMENT
Since the 1980s, Rwanda has been unable to meet its domestic food needs from national
production. The food deficit has been filled in by commercial imports and to a large extent
food aid, (J.N. Jagwe et al., 2003).
Despite the steep rice production increase, the country currently imports about 30 % of the
rice from countries such as Tanzania, India, Vietnam, Pakistan and Thailand (IFAD,
2009).Thus there is an urgent need to improve the total crop productivity. Furthermore Rice
produced in Rwanda is largely sold in unorganized rural markets, whereas the mainstream
urban markets largely sell imported rice. This is mainly because the locally produced rice
grains suffer higher breakages upon milling, (MINAGRI, 2011).
According to MINECOFIN, the causes of these problems are due to the fact that Rwandan
agriculture is largely for subsistence characterized by low productivity, low quality, low
value and low skills. The problem of low production and productivity is due to continued
of rice production as a solution to the lower levels of saving and income in the rural areas of
Rwanda.
1.3. RESEARCH QUESTIONS
1. What are the strategies of promoting rice production in Rwanda?
2. What are the constraints of rice production in Rwanda?
3. What are the effects of rice production on levels of saving and income in the rural areas of
Rwanda?
1.4. HYPOTHESES
1. There are various strategies of promoting rice production in Rwanda such as extension of
cultivable area of marshlands, construction and maintenance of the water supply systems to
permit exploitation of the cultivable areas, etc.
2. Rice production encounters various constraints such as insufficient availability of water in
rice fields, insufficient use of agricultural inputs, poor post harvest.
3. Rice production contributes to the improvement of levels of saving and income for the
members of KOAIRWA Cooperative.
1.5. OBJECTIVES OF THE STUDY
1.5.1. General Objective
The general objective of this study is to analyze the contribution of rice production on levels
of saving and income in the rural areas of Rwanda.
1.5.2. Specific objectives
1. To identify the strategies of promoting rice production in Rwanda in general.
2. To analyze the constraints of rice production in Rwanda.
3. To investigate the role of KOAIRWA cooperative in the improvement of levels of saving
and income of rice farmers in Rwasave marshland, Huye district.
4. To investigate the challenges being faced by rice farmers in Rwasave marshland; suggest
solutions and recommendations to challenges.
1.6. SCOPE OF THE STUDY
Due to limited time and financial means, this research will be concerned with rice farmers of
KOAIRWA cooperative in Rwasave marshland, Huye district as a representative sample of
all rice farmers in Rwanda. This will help to collect more data from field and to obtain
reliable results. Study period (2007-2011) will be taken in this research.
1.7. SIGNIFICANCE OF THE STUDY
This study will represent findings reflecting the contribution of rice production on levels of
saving and income in the rural areas and the role of cooperatives in improving levels of
saving and income of rice farmers in Rwanda.
This is valuable to rural dwellers, policymakers and donor community in determining and
implementing policy that promote rice production in all available marshland thus developing
rural economy.
1.8. ORGANISATION OF THE STUDY
This study is divided into five chapters: The first chapter is the general introduction; it gives
the background of the study, the statement of the problem, research questions, hypotheses,
and objectives of the study, scope of the study and the significance of the study.
The second chapter is the literature review, which describes generally the major concepts of
the topic and other work related to the study. It gives an overview of rice production in
general and the Rwandan rice in particular.
The third chapter is entitled Methodology, it presents methods and techniques used in data
collection, process of the study and the sample size.
The fourth chapter focuses on data analysis interpretation of the results; it shows the
findings of this work and the suggestions comparatively to the previous works.
The last chapter is conclusion and recommendations.
2.2.2. Production
Business dictionary defines production as the processes and methods employed to transform
tangible inputs (raw materials, semi finished goods, or subassemblies) and intangible inputs
(ideas, information, knowledge) into goods or services.
Production is the process of the creation of goods and services aimed at satisfying the wants
of individuals (private wants) or groups (public wants), (Bagumire, 2005).
2.2.3. Income
One approach sees income as a reward that the owners of fixed factors of production receive
as a result of allowing their land, capital and labor to take part in production. The other sees
income as the flow of resources that households receive that may be spent on consumption
and on saving, (FAO, 2004).
According to Mc Connell Brue (2002), income is a flow of dollars (or purchasing power)
per unit of time derived from the use of human or property resources.
Michael Parkin et al. (1939), define income as the amount received by households in
payment for the services of factors of production.
2.2.4. Saving
According to Richard et al. (1991:68), economists define saving as the part of after-tax
income which is not consumed. Hence, households have two choices with their disposable
income either to consume or to save.
Christopher, Pass et al. (1988:484), state that, saving is the proportion of a persons
(personal saving), companys or institutions (retained profits) income that is not spent on
current consumption. They say, saving is typically placed on deposit with bank, saving
society, etc, or used to acquire financial and physical assets such as shares or plant.
In his study, William (1989:4), it is generally argued that, saving may be thought of as
current period resources or productions that are not consumed in the current period but
rather are made available for future consumption.
Mc Connell Brue (2002), define saving as the disposable income not spent for consumer
goods; equal to disposable income minus personal consumption expenditure.
2.3. OVERVIEW OF RICE INDUSTRY
2.3.1. Global Rice Industry
Rice is one of the most important staple foods in the world. Rice has become the second
most important cereal in the world after wheat in terms of production, due to a recent decline
in maize production, (Jones, 1995). It is widely cultivated throughout the tropics; and where
flood controls are effective as in South-east Asia, production is high. Over 50 percent of the
worlds population depends on rice for about 80 percent of their food requirements. About
95 percent of the global output of rice is produced and consumed in developing countries,
(Van Nguu Nguyen, 2000).
Rice is grown on about 158 million hectares. It is especially important in Asia where
approximately 90% of the worlds rice is grown. The annual global production is about 678
million tons of paddy rice, of which 90% of the total was produced by Asian farmers, with
two countries, the Peoples Republic of China (including Taiwan) and India, producing 55%
of the total crop, (FAOSTAT, 2011).
Today, there are 111 countries in the world producing rice, these include Asians countries,
most countries in west Africa, some countries in central and East Africa, most of central
American countries, Australia and a few states in the United States of America, (Choudhury,
2005). Top ten rice producers countries in the world (Table 1).
196,681,170
2. India
133,700,000
3. Indonesia
64,398,900
4. Bangladesh
47,724,000
5. Viet Nam
38,950,200
6. Myanmar
32,682,000
7. Thailand
32,116,100
8. Philippines
16,266,400
9. Brazil
12,651,100
10. Japan
10,590,000
10
It is a profitable enterprise as far as the utilization of scarce cultivated marshlands and labor
is concerned, (IFAD, 2009).
In Rwanda, rice is mainly cultivated by resource-poor smallholders who grow the crop
through farmer-cooperative schemes set up by the Government. The 12 000 ha is cultivated
by about 62 000 farmers operating under 55 cooperatives, with an average of 0.2 ha per
household. The domestic rice consumption and hence the demand for milled rice grains has
also risen substantially. Despite the steep production increase, the country currently imports
about 30% of the rice it consumes from countries such as Tanzania, India, Vietnam and
Thailand. Thus there is an urgent need to improve the total crop productivity, (IFAD, 2009).
2.4. IMPORTANCE OF RICE PRODUCTION
2.4.1. Importance of Rice in the world
Rice is the most important crop to millions of small farmers who grow it on millions of
hectares throughout the world, and to the many landless workers who derive income from
working on these farms. It contributes to global efforts directed at poverty alleviation. Rice
provides 20 % of global human per capita energy and 15 % of per capita protein. Although,
rice protein ranks high in nutritional quality among cereals, protein content is modest. It also
provides minerals, vitamins, and fiber, although all constituents except carbohydrates are
reduced by milling (IRRI, 1993). Rice is one of the most important starchy foods of the
world, especially in the orient. The de-oiled bran is an excellent poultry and stock feed
(Kipps, 1970).
2.4.2. Importance of Rice to the Rwandan Economy
Rice production is considered the most profitable enterprise as regards the utilization of the
hydro-agricultural investments laid out. It has also been observed that rice is capable of
giving very high yields of over 7 T per Ha per growth cycle, which is far above the yield
from any other crops that can be planted in marshlands, (J.N. Jagwe et al., 2003).
11
According to J.N. Jagwe et al., (2003), Rice as a food commodity is steadily growing in
demand and consumption is mainly institutional or urban. Rice requires less energy to cook
than most of the other staples such as beans, banana and potatoes hence preferred by many
urban dwellers. Other desirable features of rice include its ease of storage, handling and
shelf life. Those features have made rice a popular choice of food in schools, homes,
restaurants, and public ceremonies in Rwanda. When processed, rice gives off several useful
by-products, which can be utilized in the animal feed industry, therefore also supporting the
development of the livestock sector, which holds a key position in the support of the
livelihood of the population especially by the protein supplement as well as household
income.
In addition to the reasons cited above for promoting rice production, another major
importance of growing rice is to reduce the amount of foreign currency spent on the imports
of rice.
Prospects for increasing rice production in Rwanda have attracted great attention from
government and donors. The government of Rwanda has secured funding from multilateral
and bilateral agencies to finance various projects in the rice sub-sector that aim to revitalize
rice production to meet the high local demand in Rwanda and to position the crop as a major
competitive export commodity in the region, (J.N. Jagwe at al., 2003).
The reasons forwarded by government for prioritizing rice production in Rwanda are that;
Rice will offer an efficient utilization of the abundant natural resource (marshland).
Rice will increase employment for the abundant labour force.
Rice will improve incomes to stakeholders in the rice sub sector.
Rice will provide sustainable food security.
Rice will improve the balance of trade position through exporting rather than
importing rice.
Rice production is a factor of monetization of the rural economy as almost the total
production is easily commercialized, generating income for producers and other
stakeholders.
12
Rice is easily conservable, marketable, transportable hence the post harvest losses
are minimal and the value of the crop is maximized.
2.5. RICE PRODUCTION IN RWANDA
2.5.1. Rice growing schemes in Rwanda
At present, the rice growing schemes of Rwanda are eight: Bugarama, Ngenda, Butare,
Kabuye, Muvumba, Mukunguri, Rwamagana, Cyunuzi. The following table (2) shows the
surface, average yield (t/ha), total production and night temperatures accordingly to the rice
growing schemes cited above.
Table 2: Area, average yield, rice production and night temperatures for each rice scheme.
Zone
area (ha)
production (t)
Night temperature
(0 c )
Bugarama
1200
6.4
7600
15-20
Muvumba
460
5.0
2300
10-15
Rwamagana
729
4.6
3353
< 10
Ngenda
385
4.5
1732
10-15
Cyunuzi
250
4.0
1000
----
Butare
2017
3.7
7463
10-15
Mukunguri
300
1.8
540
< 10
Kabuye
172
1.8
310
10-15
Total
5513
24598
13
The rest of the rice is produced on out grower fields and these presently cover about 1500
hectares and this makes the total production area countrywide to be about 7000 hectares. In
Bugarama, the Peoples Republic of Korea participated in the Rice development program
and in Butare, the American government through ACDI / VOCA has contributed financially
towards the construction of hydro agricultural infrastructure of some of the rice schemes
managed by CODERVAM, (J.N. Jagwe et al., 2003).
Figure 1: Map of Rwanda showing the major Rice growing areas.
Kagitumba - Muvumba
Ntende
Kayonza
Kanyonyomba
Muhazi
Cyimpima
Gitinga
Bishya
Mukunguri
Kajevuba
Gashara
Shyogwe
Cyarubare
Rusuri
Mbazi
Agasasa
Cyili
Rwasave
Mwambu
14
Yield (T/Ha)
2000
11654
4266
2.7
2001
15610
5090
3.1
2002
20976
6423
3.3
2003
27891
7607
3.7
2004
46191
12167
3.8
2005
62194
13922
4.5
2006
62932
14034
4.5
2007
62000
15005
4.1
2008
82000
18455
4.4
2009
111076
14433
7.7
15
Despite the registered increase in rice production, the production is still very low compared
to rice production in neighboring countries that are in the East African Community (EAC) as
shown in table 4 below.
Table 4: Total Milled Rice Production ('000 t)
Decade
Rwanda
Burundi
Kenya
Uganda
Tanzania
EAC
1970s
1.85
4.44
24.56
12.4
184.05
227.3
1980s
4.64
15.41
30.19
17.29
329.54
397.07
1990s
6.53
29.75
31.58
54.47
446.29
568.62
2000s
213.03
199
475
1394
7646
9927.03
16
Cleaning
By-products
Drying
Grading
Storage
Milling
Distribution
Parboiling
17
Wholesalers
Small-scale processors
Imports
Consumers
Individual households
Schools & Colleges
Hospitals
Prisons
Hotels & Restaurants
2.7.STRATEGIES
OF PROMOTING RICE PRODUCTION IN RWANDA
KEY:
Major channel
Minor channel
18
The rice out growers sell their produce mainly to small-scale processors. The rice is
processed and then sold to retailers and consumers in the nearby area. It is a common
practice for out growers to pay a small fee to the small-scale processors to process their
produce, which is later consumed domestically at a household level, (J.N. Jagwe et al.,
2003).
2.7. CONSTRAINTS FOR THE DEVELOPMENT OF THE RICE SECTOR IN
RWANDA
2.7.1. Constraints related to rice production
Despite the notable increase in yields, various challenges and constraints appear to hinder
the maximum productivity potential of rice in Rwandan marshlands, (IFAD, 2009).
Adverse climate (droughts, flooding), poor soil, pest, weeds, inappropriate modern varieties,
and lack of suitable modern technologies are the major causes of low productivity
(Kayiranga, 2006). According to J.N. Jagwe et al., 2003, The Ministry of Agriculture
(MINAGRI) in 2003, has reported that according to managers of several rice schemes which
account for most of rice production in Rwanda, the limiting constraints to rice production
are:
The most important disease in most rice growing areas in Rwanda is Rice blast
caused by P. Oyzae. It is common in Cyili and attacks the Yunyine4 variety when
grown for more than 3 consecutive seasons on a large scale. This disease is capable
of causing 80% loss in terms of yield. Other diseases include Sheath brown rot
caused by Pseudomonas fuscovaginae and this is found in areas above 1,500M such
as Cyili, Rwamagana and Kabuye. The other disease is fungal caused by
Sarocladium oryzae and is common in Bugarama.
Most of the rice producers countrywide do complain about the stalked-eyed fly
(Diopsis thoracica) whose larvae eat rice tillers causing them to dry out. Insecticides
such as Sumithion and karate are recommended for use to control this pest.
19
20
21
In order to promote rice production in Rwanda, the National Rice Development Strategies
(NRDS) lay emphasis on the following approaches:
Facilitation of research for development of rice value chain.
Expansion and diversification of land area under rice cultivation by reclaiming new
marshland areas that have the potential for rice production.
Improvement in productivity of small holder farms through efficient distribution and
use of inputs.
Establishment of new- and rehabilitation/maintenance of old infrastructures in
marshlands.
Construction and/or maintenance of the water supply systems to permit exploitation
of the cultivable areas through the two growing seasons.
Enhancement of quality and competitiveness of locally produced grains in domestic
and regional markets by introducing technologies and raising the awareness on
handling of paddy grains at harvesting, drying, winnowing and storage phases by the
producers.
Creation of favorable environments for the sustenance of rice sub-sector through
effective policy and regulatory frameworks.
Improving the knowledge on water use efficiency through training and by enabling
efficient organization of irrigation water user associations in marshlands will
increase land and crop productivity especially during the dry season.
Provision of subsidies to farmers cooperatives to acquire seed, fertilizer and other
inputs.
By setting rice as a priority crop, the government of Rwanda has sensitized the importance
of the development of rice sector amongst farmers, local administrative authorities, research
and developmental agencies in the country, non-governmental organizations and
developmental partners. The government has helped farmers set up rice cooperatives in all
rice production areas. The government treats cooperatives as delivery nodes of various
inputs and services meant for the development of rice sector, (Kathiresan, 2010).
22
There is an urgent need to expand the capacity of extension system to enable efficient
transfer of technologies on production, soil and water management, pest and disease
management, harvesting, post harvest handling and storage of rice in marshlands.
To
increase the efficiency of reaching out to the farmers, the government provides the technical
and financial provisions also to the local district authorities and non-governmental
organizations. Public private partnerships in extension services can also accelerate the
dissemination of on-farm technologies to farmers, (MINAGRI, 2011).
Rwanda Agriculture Development Authority (RADA) is responsible for introducing and
promoting technologies on rice production and post harvest processing amongst rice
growers. The research functions are largely carried out by a specialized rice unit of ISAR
through various regional and international collaborations. Crop Intensification Program
(CIP) is a flagship program of MINAGRI that focuses on the intensification of rice crop.
CIP aims to significantly increase total production of rice in the country by raising
productivity in small holder farms. It intends to accomplish this goal by facilitating access
to inputs (seeds and fertilizers), consolidation of land use, proximity extension services and
post harvest handling and storage, (Kathiresan, 2010).
The consistency and efficiency of farm operations such as land preparation, crop
management; harvesting and post harvest handling can be improved through appropriate
mechanization. Profitable mechanization options need to be identified for rice production in
marshlands and disseminated.
23
24
25
26
27
28
The table below summarizes the quantity produced with the amount of money farmers
gained in a determined period after commercialization and the area of production from 2007
until 2011.
Table 5: KOAIRWA rice production and commercialization
Year
Amount of money(Rwf)
2007
127.1
444.85
88,970,000
2008
127.1
508.4
111,848,000
2009
127.1
584.66
146,165,000
2010
127.1
673.63
188,616,400
2011
127.1
788.02
234,406,000
29
100
80
43
female
60
28
male
40
57
20
37
0
Frequency
Percentage
30
of school fees of the children, health insurance, etc. 21.5% of respondents have the age
between 50 and 60 years old. Similarly, they still have more responsibility in their family as
stated above.
Table 6: Age group of respondents in Rwasave marshland
Age group
Number of respondent
Percentage
<20
1.5
[20-30[
12
18.5
[30-40[
14
[40-50[
17
26
[50-60[
14
21.5
>60
12
18.5
Total
65
100
31
65
60
50
42
40
Frequency
30
Percentage
23
20
15
12
10
Single
Married
Widow
32
85
80
70
60
55
50
Frequency
40
Percentage
30
20
10
9
4
0
illiteracy
Primary school
Secondary school
Maximum
Mean
10
5.26
33
41.5
45
40
35
30
27
25
16
20
26.2
24.6
17
Frequency
Percentage
15
10
7.7
5
0
Access to inputs
Access to
financial
services
Access to the
market
Access to farm
extension
services
34
It is very important to mention that no respondent can gain hundred thousand Rwandan
francs and more, the results show clearly that the annual income of farmers before joining
KOAIRWA was very low and consequently they could not pay themselves the health
insurance of the whole family and the school fees of their children.
Table 8: Annual income before joining KOAIRWA
Annual income
Frequency
Percentage
0-20000Rwf
19
29.2
20000-50000Rwf
33
50.8
50000-80000Rwf
10
15.4
80000-100000Rwf
4.6
Total
65
100
35
30
10
5
7.7
3
0
Minimum
Mean
Maximum
Maximum
Mean
100
1500
425.3
36
Standardized
Coefficients
Coefficients
for B
Lower
Model
B
(Constant)
Std. Error
Beta
22.300 25.830
.916
Sig. Bound
Upper Bound
.863
.391 -29.317
73.918
58.043
R Square Square
Estimate
.840
106.610
.837
37
The coefficient of correlation of 0.916 shows that the two variables, rice production and
farm size, are highly positively correlated.
4.3.4.4. Annual income from sales
According to figure 9, the results from this study showed that farmers earn higher income
from the sales of their rice production than the income they gained before starting to
cultivate rice. This result from the fact that farmers gained on average 127371Rwf in 2011
from the sales of rice production whereas there was no farmer who could gain 100000Rwf
and more annually before joining KOAIRWA.
Figure 9: Annual income (Rwf) from sales in 2011
450000
127371
30000
Minimum
Mean
Maximum
38
100
100
80
65
Yes
60
No
40
20
0
Frequency
Percentage
Frequency
Percentage
0-5000Rwf
59
90.8
5000-15000Rwf
9.2
Total
65
100
39
c) Loan taking
The figure 11 below illustrates the number of KOAIRWA members who have taken a loan
and those who have not taken the loan in the last five years. This figure shows that only
12.3% of respondents have taken a loan during the last five years whereas the remaining
87.7% of respondents have not taken any loan during the last five years. The logic behind
this is that most farmers rely on their cooperative as a source loan and they have said that the
management of cooperative does not give the loan easily for the reasons of lack of money.
Figure 11: Members of KOAIRWA who have taken a loan in the last five years
87.7
90
80
70
60
50
40
30
20
10
0
57
Yes
No
8
Frequency
12.3
Percentage
40
Table 12: The use of loan for those who have taken it
Use of loans
Frequency
Percentage
Consumption
12.5
Investment
87.5
Total
100
90
80
70
60
55
50
Frequency
40
Percentage
30
20
6
10
9.2
6.2
0
Gain enough income
Be able to save
41
42
The cooperative should seek ways to enlarge area for paddy drying and build new
storage facilities.
The cooperative should work with different donors and financial institutions in order
to get money for building a factory of paddy processing.
The cooperative in partnership with RSSP should emphasize the maintenance of the
water supply systems to permit exploitation of the whole marshland through the two
growing seasons.
The cooperative should assist their members by giving them credit when needed.
43
44
45
There is a need to enhance the quality and competitiveness of locally produced gains
in domestic and regional markets by introducing technologies and raising the
awareness on handling of paddy grains at harvesting, drying and storage phases by
the producers.
RSSP should expand the capacity of extension system to enable efficient transfer of
technologies on production, soil and water management, pest and disease
management, harvesting, post harvest handling and storage of rice in marshlands.
Farmers should be encouraged to take loans in different financial institutions instead
of relying on small credits rarely given by their cooperatives because credits will
help them to increase their investment and then speed up the transfer of socioeconomic benefits from rice production.
46
REFERENCES
A. TEXTBOOKS
A.Kathiresan, 2010. Mapping of Poverty Reduction Strategy Papers (PRSPs), sector
strategie and policies related to rice development in Rwanda. 7-9p.
Chandler Robert F., 1979. Rice in the tropics: A guide of development of national programs,
USA. West view press. Inc. Colorado.
Choudhury I., 2005. Environmental status Evaluation of agroecosystem of South 24
Paraganas Districts, West Bengal using remote sensing and GIS Techniques, Nadia,
West Bengal, India.
Christensen, Larry B., 1991. Experimental methodology. 269p.
Dagnelie P., 1980. Thories et mthodes statistiques. II. Applications agronomiques.
Gembloux, Belgique : Les Presses agronomiques de Gembloux, 463 p.
Grist D.H., 1986. Rice 6th Edition. Longman, London and New York.
J.N.Jagwe, G. Okoboi, P. Hakizimana, J. Tuyisinge, and M. Rucibigango, 2003. Marketing
Survey of the Rice sub-sector in Rwanda. 8-12p.
Jones, R.A.D., I.C. Mahapatra and S.A. Raymundo, 1995. Rice research in Sierra Leone.
Kenneth D. Bailley, 1978. Methods of social research, 83p.
Kerlinger, Fred N., 1964. Foundations of behavioral research; educational and
psychological inquiry, 700p.
Kipps M.S., 1970. Production of field crops 6th Edition, McGraw-Hill, New York.
Wigginton. 335-346p.
Mc Connell Brue, 2002. Macroeconomics.
47
Michael Morris, Liz Drake, Kene Ezemenari and Xinshen Diao, 2008. Promoting
sustainable pro-poor growth in Rwandan agriculture. 1-2p.
Michael Parkin, Robin Bade, 1939. Macroeconomics.
Oelke E.A, RA Porter, AW Grombacher, and PB Addis, 1997. Wildrice-new interest in an
old crop cereal foods world 42. 234-247p.
Pass, Christopher; Lowes, Bryan and Robinson, Andrew (1988). Business and
Macroeconomics.
Richard G., Andy Lipsey (1991). Economics, 7th Edition HarperCollins publishers Inc.New
York.
William H., Branson, 1989. Macroeconomics: theory and policy.
48
MINAGRI, 2009. Strategic Plan for the Transformation of Agriculture in Rwanda Phase II
MINAGRI, 2011. National Rice Development Strategy (period 2011-2018).
RADA, 2008. Increasing Rice Productivity through Integrated Input Management. 5-20p.
Sendege Norbert, 2011. Rice Production in Rwanda.
UCORIRWA, 2004. Etude diagnostique des coopratives et associations rizicoles. Rapport
final, Kigali.
Van Nguu Nguyen, 2000. FAO Rice Information Volume 2
C. ELECTRONIC SOURCES
FAOSTAT, 2011. FAO Statistics online databases on www.fao.org
http://www.faostat.fao.org
www.raosoft.com/samplesize.html
www.fao.org/cms/world/rwanda/CountryInformation
http://www.fao.org/docrep/meeting/004/ac346e/ac346e00.htm.
www.businessdictionary.com/definition/production.htm
www.amis.minagri.gov.rw
49
APPENDIX
50
I. INTERVIEWEE IDENTIFICATION
1. Sex: Male
Female
2. Age: .
3. Marital status:
Single
Married
Widow
4. Education level:
51
3 4 ha
0.5 1 ha
4 5 ha
1 2 ha
above 5 ha
2 3 ha
2. How long you have been a rice farmer?
1= less than 5 years; 2= 610 years; 3= 1115 years; 4= 1620 years; 5= Over 20 years
3. When did you join KOAIRWA?
4. Were you growing rice before joining KOAIRWA?
1=yes; 2=no
5. Why did you decide to become a member of KOAIRWA?
1=Access to inputs (Fertilizers and Pesticides); 2=Access to financial services; 3=Access
to the market; 4=Access to farm extension services
Other, specify .
6. What was your annual income before joining KOAIRWA?
0-20000Rwf
20000-50000Rwf
50000-80000Rwf
80000-100000Rwf
100000 and above
52
Quantity harvested
Quantity sold
Market price/ kg
Annual
income
from sales
2007
2008
2009
2010
2011
from)
53
11. How is your level of saving after joining the cooperative? (Monthly)
0-5000Rwf
5001-15000Rwf
15001-30000Rwf
30001 and above
12. What are the benefits of growing rice?
1=Gain enough income; 2=be able to save; 3=Facility of getting credit
Other, specify
13. Where do you sell your produce?
1=KOAIRWA Cooperative; 2=local market; 3=Middlemen
Other, specify
14. How do you transport your rice production to your market (place of selling)?
1=by head; 2=Bike; 3=Pick up
Other specify
15. How does the cooperative assist you to improve rice productivity?
1=Access to credit; 2=offering farm extension services; 3=Provision of input (Fertilizers
or Pesticides);
4=Access to the maintenance of the water supply systems to permit exploitation of the
cultivable areas through the two growing seasons.
54
17. What are the strategies to put in place in order to overcome those constraints?
.......