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Rwanda Agribusiness MarketScan Report
Rwanda Agribusiness MarketScan Report
Rwanda Agribusiness MarketScan Report
lude:
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ISOKO RESEARCH
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ory services. Key economic updates and market opportunity for economic policy firm The market rationale for starting an economic policy advisory rm in Rwanda is strong as: (i) there is currently only one independent policy think tank and not a single economic policy advisory rm in the country; (ii) for economic policy ovides customized advice, the government largely relies on individual Rwanda-based consultants or services, and foreign consultancies, which has implications from a cost and quality perspective; and (iii) both the government and development partners have indicated a strong willingness to pay for local high quality economic policy analysis and advice.
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ACKNOWLEDGEMENTS
This
report
was
prepared
by
Laterite
Ltd.
(www.laterite-africa.com),
a
Kigali-based
advisory
service
firm,
for
the
Embassy
of
the
Royal
Netherlands
as
part
of
a
Rwanda-Uganda
trade
mission
organized
by
the
Netherlands
African
Business
Council
and
the
Rwanda
Chamber
Foundation.
The
principal
consultants
were
Dimitri
Stoelinga
and
Sachin
Gathani
from
Laterite
Ltd.
The
consultants
would
like
to
thank
the
Rwanda
Development
Board,
National
Agriculture
Export
Board,
Rwanda
Agricultural
Board,
Ministry
of
Agriculture
&
Animal
Resources
(MINAGRI),
the
Belgian
Development
Corporation
(BTC),
and
all
the
companies,
cooperatives
and
individual
farmers
we
interviewed
through
the
course
of
this
study
for
their
contributions.
Please
note
that
the
agribusiness
sectors
profiled
in
this
report
have
been
selected
based
on
discussions
with
the
Netherlands
African
Business
Council
and
the
Rwanda
Chamber
Foundation.
Rwanda
Agribusiness
MarketScan
|
May
2012
TABLE
OF
CONTENTS
CHAPTER
1:
OVERVIEW
OF
RWANDAS
AGRIBUSINESS
SECTOR
...........................
3
CHAPTER
2:
COFFEE
&
TEA
...................................................................................
11
CHAPTER
3:
FARMED
FISH
.....................................................................................
14
CHAPTER
4:
PROCESSED
FRUITS
(INCLUDING
STRAWBERRIES)
.......................
17
CHAPTER
5:
MACADAMIA
NUTS
...........................................................................
22
CHAPTER
6:
ANIMAL
FEED
(FROM
WHEAT
AND
MAIZE)
................................
24
CHAPTER
7:
PAPRIKA
.............................................................................................
26
CHAPTER
8:
SOYBEANS
...........................................................................................
28
CHAPTER
10:
SEEDS
................................................................................................
33
Annex
........................................................................................................................
35
1.1
RELEVANT
CONTACTS
BY
AGRIBUSINESS
SECTOR
......................................................................................
36
1.2
LIST
OF
MINAGRI
PROJECTS
.......................................................................................................................
38
1.3
SUPPORT
ORGANIZATIONS/PROGRAMS
FOR
RWANDAN
AGRICULTURE
.................................................
41
1.4
BUSINESS-TO-BUSINESS
SUPPORT
PROGRAMS
IN
RWANDA
....................................................................
44
Rwanda
Agribusiness
MarketScan
|
May
2012
1
Based
on
2010
export
data
(Comtrade)
Rwanda
Agribusiness
MarketScan
|
May
2012
milk,
yogurt,
water
and
fruit
juices,
with
annual
revenues
in
2010
of
about
US$7.5m.
The
company
is
rapidly
expanding
with
planned
investments
of
US$35
million2.
Smaller
agro-processing
industries
in
terms
of
the
local
processing
capacity,
include:
The
sugar
sector,
which
has
a
sole
processor:
Kabuye
Sugar
Works
(KSW),
owned
by
a
larger
Ugandan
Group
(the
Madhvani
Group).
Local
demand
for
sugar
is
estimated
at
US$80-90m
annually,
compared
to
domestic
production
averaging
US$10m
in
2010/2011.
The
maize
milling
industry,
which
is
dominated
by
one
large
miller:
Minimex
(turnover:
US$4m
in
2010).
Minimex
is
Bralirwas
sole
supplier
of
maize
grit
in
the
country,
and
has
entered
a
joint-venture
with
Bralirwa
to
start
Rwandas
two
first
mechanized
maize
farms
in
pilot
sites.
The
joint
venture
is
called
BraMin.
Minimex
produces
maize
grit,
maize
flour
and
maize
bran
(See
Chapter
6
on
Animal
Feed).
The
rice
industry,
which
has
a
number
of
very
small
rice
millers
but
is
dominated
by
Australian-owned
ICM
Rwanda
Agribusiness
(with
revenues
in
2011
estimated
at
US$7m).
The
food
processing
sector,
which
commercializes
and
packages
traditional
foods
and
drinks,
such
as
local
pepper
oil
(Akabanga),
passion
fruit
juice,
banana
wine,
cassava
flour,
oil
from
passion
fruit
seeds,
etc.
While
there
are
many
small
producers,
the
countrys
largest
processor
in
this
sector
is
Urwibutso
(with
annual
revenues
of
about
US$3.5m).
Pyrethrum
sector,
for
which
production
and
exports
in
the
form
of
refined
pale
extract,
crude
oleo
resin,
and
pyrethrum
marc
amounted
to
about
US$1.5m
in
2010
and
more
than
US$4m
in
2011.
The
countrys
only
pyrethrum
processor
is
Sopyrwa,
which
is
owned
by
a
large
Rwandan
holding
group,
the
Horizon
Group.
Rwanda
at
a
glance3
Total
Land
area:
26,338
sq
km
Cultivated
Land:
46%
(or
1.8m
ha)
Climate:
Temperate;
two
rainy
seasons;
mild
in
mountains
Freshwater
use:
68%
used
in
agriculture
Fertilizer
use:
16kg/ha
(2010)
Main
agricultural
products:
Coffee,
tea,
bananas,
beans,
sorghum,
potatoes
2
Rwanda
Development
Board
and
NAEB,
Opportunities
for
Investors
in
Rwandas
Horticulture
Sector,
February
2012
3
Adapted
from
IFDC:
http://www.ifdc.org/Nations/Rwanda
Rwanda
Agribusiness
MarketScan
|
May
2012
a.
Agriculture
There
is
a
mismatch
between
the
largest
agro- Graph
1
-
Cultivated
area
processing
sectors,
and
the
largest
agriculture
(2010)
sectors
by
production/cultivation.
As
can
be
seen
in
Banana
graph
1,
the
largest
crops
in
terms
of
cultivation
area
Beans
in
2010
were
by
and
large:
banana,
beans
and
Cassava
cassava;
followed
by
maize,
potatoes,
sorghum
and
Maize
sweet
potatoes.
These
staple
crops
are
produced
by
Irish
Potato
Sorghum
smallholder
farmers
-
within
cooperatives
-
for
Sweet
Potato
domestic
consumption.
There
is
very
little
Soya
processing,
packaging
or
exporting
of
these
products.
Vegetables
Excluding
tea,
coffee,
pyrethrum,
and
processed
Wheat
foodstuffs,
total
agricultural/agribusiness
exports
of
Peas
these
products
in
2010
amounted
to
a
mere
US$2.3m,
Fruits
Coffee
of
which
beans
(US$1.3m)
and
maize
(US$0.5m)
Yam
&
Taro
accounted
for
85%.
Groundnuts
Tea
While
aggregate
production
numbers
and
the
overall
Rice
productivity
of
these
sectors
remain
low,
recent
Sugar
trends
are
encouraging.
A
big
government-led
push
0
100
200
300
400
to
improve
agricultural
production
practices
has
led
Hecatares
to
impressive
increases
in
both
the
productivity
and
production
levels
of
certain
targeted
crops.
For
example:
the
productivity
of
cereals,
such
as
wheat
and
maize,
has
increased
by
a
whopping
compounded
annual
rate
of
25-30%
between
2006-2010;
the
productivity
of
cassava
production
by
16%
a
year.
Average
fertilizer
use
has
doubled
from
8.5kg/ha
in
2006
to
16kg/ha
in
2010;
and
farmers
are
making
increased
use
of
better
seeds:
+62%
for
maize,
+46%
for
wheat
and
+16%
for
Irish
Potato4.
Based
on
World
Development
Indicators,
the
land
productivity
of
Rwanda
(in
terms
of
value
added
per
ha)
was
comparable
to
that
of
Kenya
in
2009,
almost
double
Ugandas,
triple
that
of
Burundi,
and
significantly
higher
than
comparators
such
as
Tanzania,
Ethiopia
and
Mozambique.
Over
the
past
few
years,
there
has
also
been
an
increasing
focus
on
horticulture
and
alternative
high
value
export
crops.
Rwanda
has
the
right
climatic
and
soil
conditions
to
produce:
Fresh
fruits
(such
as
avocadoes,
passion
fruit,
strawberries,
tree
tomatoes,
gooseberries,
pineapple,
desert
bananas,
Japanese
plums,
and
mangoes);
Vegetables
(mushrooms,
soybeans)
Spices
(capsicum
-
paprika,
Birds
Eyes
Chilies)
Nuts
(macadamia,
cashew
nuts);
Cut
Flowers
(roses,
and
orchids);
Specialty
plants
(essential
oils
such
as
petunia
and
geranium,
pyrethrum,
vanilla
and
silk)
Small-scale
investments
in
these
sectors
have
started
to
take
hold:
East
African
Growers,
a
leading
Kenyan
agribusiness
group,
has
invested
in
commercial
avocado
production
in
Rwanda;
there
are
also
new
entrants
focusing
on
mushroom
production
(Kigali
Farms),
plant
propagation
for
fruits
and
horticulture
products
(FAIM),
macadamia
nuts
(Norlega),
and
soybeans
(Soyco
Ltd.
with
the
Mount
Meru
Group
of
Kenya).
4
World
Bank,
Rwanda
Economic
Update,
Spring
Edition,
2011
Rwanda
Agribusiness
MarketScan
|
May
2012
While
growth
has
been
strong
for
food
crops
and
high
value
export
crops,
there
is
currently
no
private
market
for
agri-inputs,
in
particular
fertilizers
and
seeds
(see
Chapter
10
on
Seeds).
Currently
seeds
and
fertilizers
are
imported
and
distributed
by
the
Rwanda
Agriculture
Board
(RAB)
for
food
crops
and
the
National
Agricultural
Exports
Development
Board
(NAEB)
for
export
crops.
Private
firms,
such
as
the
Export
Trading
Group,
Agrotech
and
Africhem,
import
seeds
and
fertilizers
to
supply
RAB
and
NAEB.
The
Government
has
preliminary
plans
to
privatize
the
fertilizer
sector
during
the
2013-2017
period,
and
there
are
ongoing
initiatives
to
encourage
private
sector
investments
in
the
seeds
sector.
Given
the
increases
in
fertilizer
and
seeds
usage
over
the
past
5
years,
these
are
sectors
are
becoming
attractive
for
potential
private
investment.
The
Monitor
Group5,
for
example,
estimates
current
annual
fertilizer
use
in
Rwanda
to
be
34000Mt,
or
about
US$30m.
The livestock and fisheries sectors are important for the Rwandan economy and in particular for peoples livelihoods, but only account for about 5% of the total value added in the agriculture sector, or 1.69% of GDP. The livestock sector contributed US$60m to GDP in 2011, while the fisheries sector contributed US$11.5m 6 . Livestock exports are nevertheless a larger foreign exchange income earner than the horticulture sector. For example: live animals and raw hides & skins exports amounted to an estimated US$6.4m in 2010. While sector growth has been comparatively modest over the past 5 years, growing at a compounded annual rate of 3% between 2006-2011, the livestock sector is showing signs of a new found vibrancy. Between 2009 and 2010, for example, the animal population increased significantly: the chicken population doubled, from about 2m to 4m; the goat population increased by 20%, from 2.5m to 3m; the rabbit population doubled, from about 0.4m to 0.8m 7, etc. According to the Ministry of Agriculture and Animal Resources, the outputs of the livestock sector have also increased by about 20% between 2010-2011, including the production of milk, eggs, honey, meat and fish. The downstream and upstream industries of the livestock sector are very small though. Downstream, there are some local large-scale producers of animal feed, in particular producers of wheat and maize bran, but these by-products of the milling industry tend to be exported to due to the small and scattered nature of the local market (see Chapter 6 on Animal Feed). Upstream, the countrys largest slaughterhouses and leather producers have shut down and there is hardly any processing or packaging of meat or chicken. Chicken breasts, for example, are not available locally. The structure of the fish industry will be discussed in more detail in Chapter 3.
5
Monitor
Group,
Investment
Profile
on
the
Fertilizer
Sector
for
the
GrowAfrica
Initiative,
2012
6
Based
on
National
Institute
of
Statistics,
GDP
National
Accounts
2011
7
Ministry
of
Agriculture
and
Animal
Resources,
Sector
Evaluation
Report
for
the
Joint
Sector
Review,
FY2010/2011.
Rwanda
Agribusiness
MarketScan
|
May
2012
The
Government
of
Rwanda
has
played
a
very
pro-active
role
in:
(i)
designing
and
implementing
policies
that
have
significantly
impacted
the
performance
of
Rwandas
agriculture
sector;
and
(ii)
improving
the
attractiveness
of
Rwanda
as
an
agri-business
investment
destination
and
securing
foreign
investment
deals.
Rwandas
overarching
National
Agricultural
Policy
was
designed
and
adopted
in
2004.
This
policy
led
to
the
development
of
two
5-year
strategic
implementation
plans,
the
second
of
which
was
adopted
in
2009.
The
updated
Strategic
Plan
for
Agricultural
Transformation
(PSTA)
became
the
basis
of
the
first
CAADP8-approved
Agricultural
Sector
Investment
Plan
in
Africa.
This
plan
has
led
to
the
introduction
of
a
number
of
large-scale
agricultural
transformation
programs,
in
particular
the
Crop
Intensification
Program
(CIP),
the
One
Cow
per
Poor
Family
(the
Girinka
program)
and,
the
Land
Husbandry,
Water
Harvesting
and
Hillside
Irrigation
(LWH)
Program.
These
programs,
in
particular
CIP,
are
credited
with
significantly
improving
agricultural
productivity.
Crop
Intensification
The
LWH
Program
The
Girinka
Program
Program
(CIP)
The
CIP
invests
heavily
in
the
Rwanda
became
the
first
The
Girinka
Program
-
or
the
provision
of
subsidised
inputs
country
to
receive
funding
for
One-Cow
Per
Poor
Family
(e.g.
fertiliser
and
high- the
Global
Agriculture
and
program
has
distributed
yielding
seed),
hillside
Food
Security
Program
over
11300
cows
to
targeted
irrigation,
progressive
(GAFSP)
in
April
2011.
The
low-income
households
in
terracing
and
marshland
$50M
funding
will
be
directed
Rwanda.
The
objective
of
the
development,
which
has
towards
the
Land
Husbandry,
program
is
to
reduce
poverty
allowed
farmers
to
increase
Water
Harvesting
and
Hillside
by
increasing
household
yields
substantially
(see
Irrigation
(LWH)
Program.
assets,
income
and
improving
World
Bank
Economic
The
objective
is
to
improve
food
security.
Update).
The
CIP
program
land
husbandry
and
increase
targets
the
production
of:
productivity
in
101
maize,
rice,
Irish
potato
and
watersheds
covering
at
least
wheat,
beans,
banana,
soya,
30,250ha
of
land.
peas
and
cassava
8 CAADP Comprehensive Africa Agriculture Development Program the continental strategy that addresses policy and capacity issues across the entire agricultural sector and African continent. 7
Rwanda
Agribusiness
MarketScan
|
May
2012
Stable
macro-economic
management:
Rwanda
is
one
of
the
top
10
fastest
growing
economies
in
the
world
(with
a
CAGR
of
about
8.2%
between
2001-2011),
it
has
a
comparatively
stable
currency,
a
controlled
inflation
rate
(lower
than
other
East
African
Community
comparators),
sustainable
debt
management
(credit
rating
upgraded
to
B
by
Fitch),
and
one
of
Africas
best
public
financial
management
systems,
in
terms
of
transparency,
target-orientation
and
budget
execution.
Rwanda
joined
the
East
African
Community
(EAC)
in
2007
and
the
EAC
Common
Market
in
2010.
This
gives
companies
operating
out
of
Rwanda
access
to
a
market
of
more
than
132m
potential
consumers
(not
including
Eastern
DRCs
30m
population).
Targeted
investments
and
initiatives
which
have
been
realized:
o Investments
in
cold-storage
facilities
at
the
airport
(current
capacity
30t);
o Increased
air-links
and
active
negotiations
with
airlines
to
drop
cargo
prices
to
below
US$2/kg
(current
airlines
connecting
to
Kigali
include
KLM,
Marinair
Cargo,
Brussels
Airlines,
Turkish
Airlines,
Qatar
Airlines,
and
in
the
near
future
Emirates
Cargo
which
has
recently
obtained
a
license
to
serve
Kigali
airport);
o The
identification
of
20
specific
sites
for
investors
in
the
horticulture
sector
all
within
100kms
from
Kigali.
o Institutional
investments
in
the
Rwanda
Development
Board
and
the
National
Agriculture
Export
Development
Board,
which
have
dedicated
departments
for
the
horticulture
sector
and
investor
support.
Rwanda
Agribusiness
MarketScan
|
May
2012
4. Key challenges
We
chose
to
highlight
three
key
challenges
for
foreign
investors
in
Rwandas
agriculture
/
agribusiness
sectors:
1. Land
availability.
Despite
efforts
by
Government
to
identify
sites
for
foreign
investors,
land
availability
in
Africas
most
densely
populated
country,
where
80%
of
the
population
lives
in
rural
areas,
is
a
major
constraint.
The
small
size
of
available
sites
puts
a
limit
on
the
scale
of
potential
future
mechanized/commercial
farming.
Companies
that
have
had
to
put
expansion
plans
on
halt
because
of
land
issues
include
Kabuye
Sugar
Works,
Rwandas
only
sugar
processor,
as
the
currently
allocated
area
for
sugar
farming
(3100ha)
does
not
suffice
to
support
growth.
In
order
to
bring
agricultural
production
to
scale
in
Rwanda,
investors
will
have
to
focus
on
high-yield/high-value
crops
or
adopt
a
business
model
that
entails
working
with
numerous
cooperatives,
often
in
different
locations
and
with
varying
levels
of
management
capacity.
The
Government
is
actively
trying
to
alleviate
the
land
constraint,
by
promoting
voluntary
land
consolidation
where
farmers
keep
the
land
rights,
but
synchronize
production
with
neighboring
farms.
2. Low
productivity
and
quality
of
produce
due
to
soil
quality,
soil
erosion,
low
irrigation,
bad
post
harvest
management
and
low
access
to
finance.
Arguably
the
biggest
problem
agribusiness
firms
in
Rwanda
face
is
low
capacity
utilization
due
to
the
low
quantity
and
quality
of
the
local
produce
(the
raw
material).
Minimex,
Rwandas
maize
miller
is
running
below
capacity
because
of
low
access
to
high
quality
maize;
Sorwatom,
Rwandas
tomato
processor
has
to
import
tomato
paste
from
China,
given
that
fresh
tomatoes
on
the
local
market
are
few
and
of
bad
quality;
ICM,
the
largest
rice
processor,
also
faces
shortages
because
of
the
quality
and
quantity
of
rice
production,
etc9.
The
main
reasons
why
productivity
is
low
and
quality
is
poor
include10:
(i)
limited
skill
base
in
good
agronomy
practices
in
most
agricultural
sectors
(ii)
low
soil
quality,
due
to
over-cultivation
and
too
little
fallowing;
(iii)
high
soil
erosion,
given
that
80%
of
arable
land
is
on
a
slope;
(iv)
insufficient
irrigation,
which
makes
farming
prone
to
landslides,
flooding,
changes
in
rain
patterns;
(v)
bad
post-harvest
management,
leading
to
an
estimated
loss
of
15%
of
production;
and
(vi)
low
access
to
finance
at
the
cooperative
and
farmer
levels,
which
are
major
barrier
to
capital
intensive
farming.
3. High
international
transportation
costs.
Despite
Government
efforts,
airfreight
transport
remains
expensive.
While
Rwanda
has
recently
expanded
links
for
passenger
travel,
cargo
links
remain
less
developed.
The
under-utilized
and
limited
cold-storage
capacity
is
also
a
constraint
to
large-scale
horticulture
efforts.
Exports
are
therefore
only
feasible
for
high-value
/
lightweight
crops.
The
state
of
the
local
transportation
infrastructure
also
provides
a
supply
chain
challenge.
For
example,
Rwanda
has
a
total
of
12,000
km
of
roads,
of
which
only
1,000
km
are
paved;
the
remainder
are
dirt
roads
with
varying
quality.
Furthermore,
the
road
infrastructure
leading
to
the
ports
of
Mombasa
(Kenya)
or
Dar
es
Salaam
(Tanzania)
are
also
in
a
deplorable
state,
which
has
increased
production
costs
in
Rwanda.
9
Sachin
Gathani
and
Dimitri
Stoelinga,
Learning-by-exporting
A
Deep-dive
into
Rwandas
exports
sector,
focusing
on
firms,
products
and
destinations,
forthcoming,
May
2012
10
Based
on
World
Bank
Rwanda
Economic
Update,
Spring
2011
Rwanda
Agribusiness
MarketScan
|
May
2012
5.
Identified
opportunities
Opportunities
to
invest
in
Rwandas
agriculture/agribusiness
that
have
been
documented
in
previous
studies
include:
Sourcing
and
canning
of
beans
for
the
domestic
and
regional
markets.
With
the
middle
class
in
the
region
growing
rapidly,
the
market
for
canned
beans
in
Rwanda
and
neighboring
countries
(Eastern
DRC,
Burundi)
could
reach
$55
85M
by
2017.
There
is
currently
no
local
beans
processor11
Soybeans.
There
is
a
high,
unsatisfied
demand
for
soy-based
cooking
oil,
which
is
currently
imported.
The
scale
of
the
opportunity
is
confirmed
by
Soycos
US$15m
investment
in
this
sector
aimed
at
producing
soybeans
for
local
consumption
and
processing
oil
and
animal
feed.
The
Soyco
investment
will
go
some
way
to
meet
the
high
demand
for
soybean
products
but
there
remains
scope
to
meet
the
supply
gap
Maize
milling
and
farming.
Minimex
Rwandas
largest
maize
miller
-
has
a
large
unutilized
capacity
and
is
looking
to
expand
commercial
maize
farming
Plant
propagation.
High
demand
for
new
plant
varieties
from
government
and
agribusiness
companies,
focusing
on
varieties
for
which
there
is
high
demand
on
global
markets
Avocado
packaging
facility
for
avocado
exports.
Europe
is
having
difficulties
in
sourcing
avocado
and
avocado
supply
is
subject
to
seasonal
fluctuations;
Rwanda
has
the
ideal
agro- climatic
conditions
for
avocado
cultivation12
Fruits
&
nuts.
Rwanda
has
ideal
agro-climatic
conditions
for
a
wide
variety
of
high-value
fruits
and
nuts.
Current
production
is
not
based
on
high
quality
varieties
Expanding
local
production
of
essential
oils.
Expand
existing
production
capacity
at
Ikirezi,
and
expand
cultivation
in
Nyagatare,
Gasabo
and
Kireke
districts
Marketing
and
distributing
fertilizers
and
seeds.
Given
recent
growth
in
fertilizer
and
high
quality
seeds
use,
there
is
a
potential
market
for
the
private
marketing
and
distribution
of
seeds
and
fertilizer
in
Rwanda
Fish-farming.
Due
to
low
supply,
fish
consumption
is
lower
than
in
neighboring
countries:
1kg
per
person
per
year
in
Rwanda
vs.
3.6
in
Burundi,
6.9
in
the
Democratic
Republic
of
Congo
and
10kg
in
Uganda.
11
See
Monitor
Analysis,
Grow
Africa
Initiative
-
Investment
Cases
for
Rwanda,
May
2012
12
See
Monitor
Analysis,
Grow
Africa
Initiative
-
Investment
Cases
for
Rwanda,
May
2012
10
Rwanda
Agribusiness
MarketScan
|
May
2012
2. Policy context
The National Tea Strategy: NAEB developed a new tea strategy14 in 2009 focusing in particular on finalizing the privatization of the tea sector. The last two government-owned tea factories, Mulindi and Shagasha, are currently being auctioned.
13
World
Bank
Rwanda
Economic
Update,
Spring
2011
14
www.naeb.gov.rw
11
Rwanda
Agribusiness
MarketScan
|
May
2012
The
National
Coffee
Strategy:
a
revised
coffee
strategy
was
implemented
in
2009,
increasing
the
focus
on
the
production
of
premium
fully-washed/specialty
coffee.
Regulators:
National
Agricultural
Export
Development
Board
registered
under
the
Ministry
of
Agriculture.
The
Rwanda
Tea
Authority
(OCIR
THE),
the
Rwanda
Coffee
Authority
(OCIR
CAF)
and
Rwanda
Horticulture
Authority
(RHODA)
were
merged
to
form
National
Agricultural
Export
Development
Board
4.
Supply
Chain
For
Tea:
Rwanda
primarily
produces
CTC
tea
(Cut-Tear-Curl),
which
is
handpicked
and
brought
to
the
tea
factories
for
processing.
Most
tea
is
exported
with
limited
quantities
earmarked
for
domestic
consumption.
Packaging
is
typically
sourced
from
Uganda
or
Kenya
and
is
then
sent
to
the
Mombasa
Tea
Auction
where
it
is
re-exported
to
international
markets.
For
Coffee:
Coffee
is
also
handpicked
and
is
then
sent
to
washing
stations
that
are
located
across
the
country.
Rwanda
has
now
developed
sufficient
capacity
to
wash
almost
two
thirds
of
all
coffee
produced.
The
number
of
coffee
washing
stations
has
grown
from
2
in
2002
up
to
almost
200
in
2011.
However,
only
20%
of
coffee
is
currently
fully
washed
and
many
of
the
coffee
washing
stations
that
have
entered
the
market
are
in
financial
distress.
Fertilizers
used
to
be
subsidized
by
the
government
but
subsidies
for
the
coffee
sector
are
gradually
being
removed.
IFDC,
through
the
PReFER
project,
is
assisting
the
transition
out
of
the
nationalized
procurement
and
distribution
of
fertilizers.
12
Rwanda
Agribusiness
MarketScan
|
May
2012
6.
Challenges
Ongoing
issues
in
the
coffee
sector
include
the
volatility
of
production
due
to
the
natural
cycle
of
the
coffee
trees,
the
ensuing
underutilization
of
washing
station
capacity
(only
43%
in
2010),
and
the
lack
of
consistency
in
the
quality
of
specialty
coffee.
There
have
been
significant
improvements
however,
with
companies
investing
significant
resources
towards
hiring
cupping
specialists,
investing
cupping
labs,
and
building
the
capacity
of
coffee
farmers
and
cooperatives
from
pre- harvesting
through
to
washing.
7.
Potential
opportunities
Investment: There are few investment opportunities for Dutch companies in the tea and coffee sectors: the Government of Rwanda has privatized most of the tea factories/estates in the country and is currently reviewing the bids for the last two factories; the coffee market is currently operating under-capacity, pointing towards high market saturation. Trade: There are opportunities for Dutch companies to invest in sourcing high quality Arabica coffee (both ordinary and specialty) and/or tea from Rwanda. Currently only Louis Dreyfus Commodities, headquartered in Rotterdam, trades in Rwandan coffee. In the tea sector, Rwanda is increasingly moving towards higher-grade teas, including green tea, white tea, and silver-tips tea, which can be sourced directly from companies such as Sorwath or recently privatized tea factories.
15
Sachin Gathani and Dimitri Stoelinga, Learning-by-exporting A Deep-dive into Rwandas exports sector, focusing on firms, products and destinations, forthcoming, May 2012
13
Rwanda
Agribusiness
MarketScan
|
May
2012
2.
Policy
context
The
Government
of
Rwandas
role
in
the
domestic
fishing
industry
is
led
by
the
PAGIEALAC
(Inland
lakes
Integrated
Development
and
Management
Support
Project).
It
is
a
AFDB
funded
project
that
runs
till
the
end
of
2012
and
is
involved
in
the
capacity
building
of
local
fisheries,
watershed
protection
for
17
inland
lakes,
rehabilitation
and
creation
of
fish
ponds,
rehabilitation
of
Kigembe
Fish
farm
into
a
modern
fish
hatchery,
construction
of
landing
sites
for
harvested
fish,
lakes
restocking,
purchasing
brood
stocks
on
behalf
of
farmers,
assisting
farmers
with
the
1st
cycle
feed
and
supplying
them
with
8
units
of
small
fish
feed
making
machines,
and
training
and
organizing
study
tours
on
behalf
of
fish
farmers.
PAGIELAC
recently
signed
an
$80K
agreement
to
plant
tilapia
in
Lake
Kivu
on
the
Rusizi
side.
The
project
will
be
entirely
funded
by
PAGIEALAC
and
is
aimed
at
increasing
productivity
of
fishing
cooperatives
and
local
living
standards.
16
Master
Plan
for
Fisheries
and
Fish
Farming,
2011
17
Ibid
14
Rwanda
Agribusiness
MarketScan
|
May
2012
program,
starting
with
the
ponds
and
today
they
are
being
used
for
seed
production
to
support
the
upcoming
fish
farmers.
The
rehabilitation
of
the
Centre
is
continuing
by
upgrading
it
into
a
fish
hatchery
capable
of
producing
at
least
10
million
fingerlings
annually.
It
has
7,000
males
and
5,000
females
(broodstock
of
Oreochromis
niloticus)
that
developed
from
the
parent
stock
imported
from
Lake
Albert.
Today
they
are
using
a
set
of
32
incubators
to
reproduce
the
Nile
Tilapia
and
have
been
able
to
produce
up
to
1
million
Tilapia
fingerlings
in
4
months.
Lakeside
Fish
Farm
began
in
2010
by
Roger
and
Faith
Shaw,
Lakeside
is
a
newly
established
high-end
aquaculture
firm.
The
company
will
establish
a
modular,
self-sufficient
and
independent
fish
production
line,
from
breeders
to
market-size
fish.
The
facility
will
be
an
independent
and
self- sufficient
fish
production
system,
including
a
complete
production
line
from
maintaining
brood
stock
and
fry
production,
to
market-size
fish
and
the
processing-packing
facilities,
including
all
necessary
auxiliary
systems.
The
company
plans
to
begin
operations
with
the
construction
and
implementation
of
a
hatchery
with
capacity
to
supply
6,000,000
fingerlings
(live
baby
fish)
per
year.
4. Supply Chain
PAGIEALAC has supported numerous cooperatives in farming fish. Traditionally, fish farming has gone hand-in-hand with rabbit farming in Rwanda. Feed is a major input in aquaculture production that can account for up to 60% of production costs18. There is no industrial manufacturing of fish- feed in the country with limited on-farm feeds being developed at farms. The industry depends on feed imports from Uganda. The fish-feed industry is at an impasse as the demand for fish-feed is too low to justify the significant investment requirements to manufacture feed locally but as the fish industry grows, there will be a strong need to develop a local feed factory.
Exports: the only fish exports are to DRC, which are re-exports of imports from the region. Rwanda does not currently have the capacity to export in large quantities. EAC: The East African Community has an abundance of opportunities for fishing throughout the region, as it is blessed with the longest and biggest lakes and rivers in the world: Lake Tanganyika, Lake Victoria, Lake Kivu, Congo River, Ruzizi River and River Nile, with an estimated 350 species of fish. Main species include the legendary Nile Perch, abundant Tilapia, Tiger-fish, Mud-fish and Cat- fish. The EAC, under the umbrella of the Lake Victoria Fisheries Organization (LVFO), is the main regulatory body overseeing the regional fish industry and they recently decided to increase awareness of proper fishing methods to curb fishing irregularities.
6.
Challenges
The
quality
of
fish
farming
practices
is
still
a
major
issue
in
the
Rwandan
fisheries
industry.
The
main
challenges
are:
Increased
degradation
and
overexploitation
of
the
lake-environments;
Poor
management
of
fisheries
at
the
local
level:
There
are
17
aquaculture
stations
(Kigembe,
Rwasave,
Runyinya,
Rushashi,
Ruli,
Rusumo,
Ngarama,
Cyamutara,Muko,
Bwafu,
Ndorwa,
18
Master
Plan
for
Fisheries
and
Fish
Farming,
2011
15
Rwanda
Agribusiness
MarketScan
|
May
2012
Kazabe,
Mabanza,
Kivumu,
Karengera,
Nkungu
and
Nyamishaba)
many
of
which
are
dilapidated
-
Kigemebe,
Nkungu
Rwasave
and
Rusumo
been
rehabilitated
by
PAIGELAC;
Almost
total
depletion
of
natural
fish
stocks
due
to
overfishing;
Lack
of
fish-eating
tradition
that
does
not
recognize
it
as
a
high-value
commodity,
partly
as
a
result
of
the
cost
and
fish
shortages
on
the
local
market;
Poor
linkage
of
aquaculture
and
other
agri-production
systems;
Lack
of
fisheries
and
aquaculture
inputs
including
seed,
feed,
gear,
equipment
and
others.
7. Potential opportunities
Based on growth estimates for Rwandas fish sector, there are a number of opportunities for Dutch companies to consider: Fish farming: opportunity to start high-tech / low cost fish-farms in Rwanda to address gaps in the local demand, both in terms of quantity and variety. Popular species include Tilapia. Fish feed: as aquaculture in the country grows, there will be an opportunity to import or locally produce fish-feed in Rwanda. Fish-feed can be produced using vegetable proteins, cereal grains, soy, which are all locally available. Fish trading: the importing, transporting and distribution of fish is not well developed in Rwanda. There is a potential for investment in the entire value chain.
16
Rwanda
Agribusiness
MarketScan
|
May
2012
Banana:
is
by
far
the
dominant
fruit
crop
in
Rwanda
in
terms
of
value
of
production.
Four
members
of
the
banana
family
are
consumed
or
produced
in
Rwanda:
cooking
bananas,
beer
bananas19,
apple
bananas
and
plantains.
Apple
bananas20
have
the
highest
unit
value
and
are
being
exported
in
organic
form
to
Europe
(in
2010,
banana
exports
to
Belgium
amounted
to
about
US$12,000
or
10tons21).
Most
elements
of
the
banana
value
chain
are
largely
in
place
though
one
link
in
particular
needs
to
be
improved:
management
of
cold
storage
facilities
at
the
airport.
There
is
also
a
large
export
market
for
organic
dried
apple
bananas
and
a
2006
survey
found
that
dried
organic
apple
bananas
and
dried
organic
pineapple
were
Rwandas
two
main
opportunities
for
the
dried
fruit
market22.
Current
productivity
of
banana
production
is
estimated
to
about
8
tons/ha
but
should
be
35-40tons/ha23.
Avocado: After bananas, avocado is the most widely produced fruit in Rwanda, with an annual output of 82,000t per year and 15,000ha under cultivation, and is produced by more than 500,000 small holder farmers. Rwandas climate is perfectly suited for avocado production. However, even though the local variety of avocado in Rwanda is superior in taste and consistency, the international market prefers the Hass or Fuerte variety, which also has good taste and also has a tougher rind which means it is less perishable and, consequently, easier to ship long distances without damaging the fruit24. The main reason that avocado exports from Rwanda have been low is due to the limited production of the Hass or Fuerte avocado varieties by smallholder farmers25. To counter this, the Government has taken a proactive step by distributing export-grade seedlings and educating farmers on the value of different avocado varieties in recent years. This is expected to yield exports of 20,000 metric tons over the next few years26. Avocado is produced all year round in Rwanda and can yield an estimated 21 metric tons per hectare for Hass avocadoes, compared to just 10 in Kenya. In a recent investment profile for Rwandas avocado sector, the monitor group identified
19
Sometimes
referred
to
as
wine
bananas.
20
Also
known
as
baby
bananas,
dessert
bananas
or
sweet
bananas.
21
MINAGRI
data 22
OTF,
Dried
Fruit
Survey
Analysis,
February
1
2006.
23
Based
on
interview
with
FAIM,
May
2012
and
MINAGRI
data
for
2011.
24
Study
on
Marketing,
Post
Harvest,
and
Trade
Opportunities
for
Fruit
and
Vegetables
in
Rwanda,
2009
25
Monitor
Group,
Investment
Profile
on
the
Avocados
Sector
for
the
GrowAfrica
Initiative,
2012
26
Ibid
17
Rwanda
Agribusiness
MarketScan
|
May
2012
avocado
packaging
and
exporting
(through
the
ports
of
Mombasa
or
Dar
es
Salaam)
as
a
significant
investment
opportunity
for
foreign
agribusiness
firms.
New
entrants
in
this
market
include
East
African
Growers,
a
Kenyan
group,
although
production
is
expected
to
be
limited,
subsidized,
and
targeted
mainly
at
the
local
market.
Pineapple:
is
a
significant
horticultural
crop
in
Rwanda,
grown
mainly
in
the
eastern
and
southern
parts
of
the
country.
In
addition
to
some
import
substitution,
there
is
an
export
market
for
pineapple
juice,
pulp
and
jam.
Urwibutso,
among
others,
produces
pineapple
juice
and
Shema
Fruits
also
used
to
regularly
export
fruit
jam
to
Europe.
The
main
challenges
with
pineapple
are:
(i)
the
variety
that
is
produced
locally
is
not
as
amenable
to
the
preferences
of
the
international
market,
which
are
inclined
to
production
from
producers
such
as
Ghana,
Ivory
Coast,
Cambodia,
etc.;
(ii)
because
of
the
tropical
climate,
pineapples
from
Uganda
and
Burundi
are
considered
to
be
of
better
quality;
(iii)
high
airfreight
costs
means
that
Rwandan
pineapples
cannot
be
competitive
in
the
export
market
due
to
the
relatively
low
value-weight
ratio
of
pineapple
(in
relation
to
many
other
fruits
and
vegetables)27;
and
(iv)
current
yields
are
low
as
the
fruit
is
being
over
propagated
and
is
only
producing
1ton/ha
when
it
can
yield
35-40tons/ha28.
Nevertheless,
a
study
by
JE
Austin
Associates
indicated
that
there
are
several
opportunities
for
other
pineapple
related
exports,
in
particular
pineapple
concentrate
for
which
there
are
interested
buyers
in
Switzerland
and
Singapore29.
Passion
Fruit:
is
the
fruit
of
choice
for
juices
in
the
domestic
market,
as
confirmed
by
processors
such
as
Inyange
Dairy
and
Urwibutso.
Rwandan
passion
fruit
also
has
a
superior
flavor
that
is
well
received
in
the
European
market
and
the
regional
market.
The
main
challenges
are
passion
fruit
diseases
and
weak
linkages
between
producers
and
processors.
Similar
to
pineapple
and
bananas,
the
current
yields
are
low
at
approximately
10tons/ha
due
to
the
woodiness
virus,
which
regularly
afflicts
the
fruit.
Tree
Tomato:
or
tamarillo30
is
grown
mostly
in
the
northwestern
and
western
parts
of
the
country.
Although
it
is
a
relatively
new
product
on
international
markets,
there
is
strong
demand
for
fresh
tree
tomato
(especially
organic,
therefore
Fair
Trade
certification
would
help)
particularly
in
the
UK,
Germany,
Netherlands
and
Spain 31 .
After
being
imported,
it
is
processed
into
juices,
concentrates,
jams,
gelatins
and
sweets.
If
processing
facilities
and
adequate
transport
were
available,
it
could
be
exported
also
in
the
form
of
fruit
pulp
or
concentrate.
Other
principal
exporters
of
tree
tomato
include
Kenya,
Zambia
and
New
Zealand.
The
main
challenges
are
the
lack
of
a
cold-chain
storage
system
and
inappropriate
practices
for
post-harvest
handling.
Mango:
requires
a
prolonged
period
of
measurable
rainfall,
which
is
limited
in
most
areas
of
Rwanda,
especially
for
the
varieties
sought
on
export
markets.
International
experts
agree
that
mangoes
cannot
be
competitive
in
Rwanda
in
comparison
with
mangoes
grown
in
warmer
climates
in
Burundi,
Tanzania
and
Uganda32.
But
this
does
not
mean
they
cannot
be
grown
in
Rwanda
for
domestic
consumption.
In
value,
mango
is
the
third
most
important
fruit
produced
in
the
country,
after
sweet
bananas
and
avocadoes.
Gooseberries:
This
crop
already
has
a
small
domestic
market
in
Rwanda,
particularly
for
jam
and
pastries.
Internationally,
Europe
imports
significant
amounts
of
gooseberries,
especially
from
Colombia
and
mostly
for
consumption
in
Germany.
In
order
to
compete
with
Colombia,
Rwanda
27
Study
on
Marketing,
Post
Harvest,
and
Trade
Opportunities
for
Fruit
and
Vegetables
in
Rwanda,
2009
30 This crop is also referred to as Japanese plum, and internationally it is known as tamarillo. 31 Study on Marketing, Post Harvest, and Trade Opportunities for Fruit and Vegetables in Rwanda, 2009 32 Ibid
18
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2012
would
have
to
export
organic
gooseberries;
the
Colombian
product
has
been
subject
to
criticism
for
high
doses
of
pesticides,
and
this
leaves
an
opening
for
an
organic
competitor33.
Strawberries:
Rwanda
has
good
growing
conditions
for
strawberries
but
the
local
varieties
are
small
and
often
have
poor
color,
to
the
point
of
sometimes
being
unacceptable
for
jams.
California
produces
excellent
varieties
of
strawberries
and
it
is
worth
conducting
trials
of
them
in
Rwandan
conditions.
Currently,
there
is
no
large-scale
production
of
strawberries
but
there
are
about
a
dozen
cooperatives
and
individual
growers
producing
strawberries
around
the
country.
Strawberry
production
is
however
expanding
rapidly
in
Rwanda
with
the
introduction
of
new
strawberry
varieties
by
FAIM
(see
below),
and
increasing
demand
from
the
largest
processor
of
Strawberry
products,
Urwibutso.
Urwibutso
makes
strawberry
jam
and
juice.
2.
Policy
context
The
main
regulator
for
processed
fruits
in
Rwanda
is
the
National
Agricultural
Export
Development
Board
(NAEB).
The
policy
strategy
is
incorporated
within
NAEBs
Horticulture
Policy
that
was
developed
in
2006.
The
Horticulture
Production
Department,
the
Certification
and
Export
Unit,
the
Quality
Control,
Inspection
&
Standards
Compliance
Unit
and
the
Marketing
&
Export
Logistics
Unit
perform
the
primary
functional
roles
within
NAEB
for
fruits
and
vegetables.
33 Ibid 19
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2012
Shekina
Enterprises:
is
an
agro-processing
company,
was
started
in
2008
by
Mr
Pierre-Damien
Mbatezimana
in
Rulindo
district.
Shekina
Enterprises
is
a
pioneer
firm
in
the
dried
cassava
leaves
market
and
after
4
years
remains
the
only
dried
cassava
leaf
producer
in
the
country.
Shekina
has
also
started
experimenting
with
other
products,
including
the
drying
and/or
milling
of
millet,
sorghum,
wheat,
soya,
and
even
the
drying
of
fruits
and
vegetables
such
as
pineapple,
bananas,
eggplant,
amaranth,
carrots
and
leeks.
4.
Supply
Chain
Fruits
are
harvested
by
cooperatives
and
there
are
no
commercial
fruit
farms
at
this
point
in
Rwanda
(except
a
recent
investment
by
the
East
African
Growers,
a
Kenyan
group,
to
cultivate
avocadoes
for
the
local
market).
Fruits
are
either
sold
on
local
markets,
exported
informally
to
neighboring
countries
(in
particular
Burundi,
Uganda
and
DRC),
or
sold
to
a
few
processors,
including
Urwibutso
(which
processes
a
whole
range
of
fruit
and
vegetable
products)
and
Inyange
which
also
processes
fruit
juice.
Packaging
is
typically
sourced
from
the
region
and
distribution
is
conducted
through
wholesalers
that
service
Kigali
and
the
rest
of
the
country.
There
are
currently
very
few
exports
of
fruit-based
products.
6.
Challenges
The
main
challenges
the
processed
fruits
industry
in
Rwanda
is:
Quality
is
the
single
most
pervasive
concern
for
development
of
the
fruits
(and
vegetables).
This
requires
appropriate
production
methods
including
approaches
to
disease
control,
post-harvest
handling
procedures,
the
use
of
cold
chain
facilities,
product
and
process
certifications,
and
even
the
type
of
packaging.
20
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Agribusiness
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2012
Critical
infrastructure
needs
include
coolers
and
dryers
at
the
field
level,
cold
chain
facilities,
greenhouses
or
tunnels,
and
improved
rural
access
roads
Financial
and
technical
assistance
for
obtaining
organic
and
other
certifications
will
be
needed
for
groups
of
small
farmers
In
general,
alliances
between
buyers
(or
processors)
and
producers
need
to
be
strengthened
and
made
into
multi-faceted
relationships
In
many
cases
financial
and
technical
assistance
will
be
needed
for
market
exploration
including
sample
shipments
The
varieties
are
not
amenable
to
tastes
in
potential
export
markets.
7. Potential opportunities
There are number of potential opportunities for Dutch firms: Investing in avocado packaging and exporting of the Hass variety: using a nuclear farm model associated with out-growers. Exports of avocado would be conducted through the ports of Mombasa and/or Dar es Salaam. Rwandas advantage lies in its climatic conditions, the comparatively high yields it achieves, and its proximity to the avocado exports value chain in Kenya and Tanzania. Investing in strawberry exports: strawberry exporting has potential in Rwanda as the climatic conditions suit strawberries very well. The constraint to strawberry exports are currently the variety used in-country, the high cost of air-transportation and post-harvesting methods. Nevertheless, the sector is growing rapidly with the introduction of new varieties by FAIM and increasingly also strawberry based products (jams, and yogurts). Other fruits with export potential include passion fruits, tree tomatoes and organic gooseberries.
21
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Agribusiness
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2012
Macadamia
nuts
are
produced
country-wide,
but
in
particular
in
the
Eastern
districts
of
Kayonza,
Ngoma
and
Nyagatare.
2.
Policy
context
The
production
of
higher-value
nuts,
such
as
Macadamia
nuts,
has
been
supported
by
the
Ministry
of
Agriculture
and
various
development
projects
since
the
early
2000s.
Today
the
National
Agriculture
Exports
Development
Board
has
2
ongoing
initiatives
to
support
macadamia
nut
production:
(i)
NAEB
runs
the
only
macadamia
tree
nursery
in
the
country,
with
seeds
imported
from
Kenya;
and
(ii)
NAEB
is
working
in
close
collaboration
with
Norlega,
the
only
processor,
to
open
macadamia
nut
collection
centers
throughout
the
country
(to
date
only
3
collection
centers
have
been
opened).
These
activities
are
still
in
their
early
stages.
22
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2012
Norlega
focuses
on
bioorganic
production
and
is
currently
seeking
to
obtain
bio
certification
from
the
East
African
association
of
bio
producers.
4.
Supply
Chain
There
is
only
one
nursery
in
the
country
that
grows
and
grafts
macadamia
trees
(operated
by
NAEB).
The
trees
are
then
distributed
to
farmers,
who
grow
them
with
minimal
fertilizer.
The
grown
nuts
are
then
collected,
sold
directly
on
the
market
or
collected
by
Norlega
representatives
for
roasting
and
packaging.
Distribution
is
currently
local
only.
6.
Challenges
According
to
Norlega,
the
main
challenge
to
growth
in
the
macadamia
sector
is
the
lack
of
macadamia
tree
nurseries
as
well
as
low
farmer
awareness
about
the
high-value
nature
of
the
tree
and
best
post-harvest
practices.
With
limited
processing
capacity
in
the
market
and
to-date
a
not
very
structured
supply
chain
(with
only
3
active
collection
centers
in
the
whole
country),
there
are
market
coordination
failures
that
are
constraining
growth.
7.
Potential
opportunities
Expanding Macadamia nut production and exports, using a nuclear farm-model and an out- grower scheme. Given the high-value nature of the crop and Rwandas excellent agro-climatic fit, there is a large opportunity to expand production, conditional on resolving the main constraints, which is the lack of macadamia tree nurseries, post-harvesting methods and farmer awareness about.
23
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Agribusiness
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2012
2. Policy context
The Government has recognized the need to develop a local animal feeds sector given that the scarce supply of animal feeds is regularly cited as one of the major challenges facing local farmers. Furthermore, it has been identified as a high potential export commodity to DRC and Burundi. As a result, the Government has assisted in promoting cassava and soybean production, through the establishment of Soyco Ltd. (see Chapter 8: Soybeans) and a cassava-processing factory in the Southern province that will produce cassava flour and convert the waste into fertilizer and animal feed.
Minimex: Minimex is Rwandas largest maize mill and was established in 2002 by a lawyer, Felician Mutalikanwa. Minimex has recently seen the entrant of a Dutch investor, Mr. Claude Mansell, who is the current Managing Director. Minimex has 4 main operations: (i) a modern maize milling plant on the outskirts of Kigali; (ii) Pro-Dev, its sister company, which in 2011 established a modern maize drying and storage facility in Rwamagana (iii) maize grits supplies to Bralirwa, for which Minimex is the sole supplier in the country and; (iv) BraMin, a joint venture with Bralirwa (the largest beer manufacturer in Rwanda), aimed at operating a modern maize farm in the Eastern region of the country. The bi-product maize bran is used as animal feed and represents a good source of income for the company (approx. 15%); it is sold directly to farmers at the factory and recently to buyers for large farms abroad (e.g. Kenya). Bakhresa Grain Milling: Bakhresa Grain Milling was incorporated in Rwanda on January 2009 and began operations as a wheat mill in Rwanda in May 2011 after a year of construction. Bakhresas Rwanda operations are part of the Bakhresa Group, a family business based in Tanzania. Bakhresa is one of two wheat flour producers in the country, vying with Pembe Flour Mills as the largest wheat producer. Wheat bran is exported to Kenya as animal feed for commercial farms.
34
http://www.newtimes.co.rw/news/index.php?i=14975&a=52940
24
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Agribusiness
MarketScan
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2012
Pembe
Flour
Mills:
Pembe
Flour
Mills
was
registered
as
a
new
business
in
Rwanda
in
2007.
Pembe
Flour
Mills
Group,
headquartered
in
Kenya
and
with
operations
also
in
Tanzania
and
Uganda.
Pembes
main
product
is
wheat
flour,
which
it
sells
under
the
Pembe
brand
name
and
it
also
sells
the
bi-products
of
production
for
animal
feed.
4. Supply Chain
Currently almost all the wheat is imported internationally by both Pembe and Bakhresa, which is then processed in their factories and distributed through Rwanda. Both Pembe and Bakhresa do export the wheat bran, which is used as animal feed to the region and primarily to Kenya due to the higher demand for animal feed in those markets. There is limited supply of animal feed to the local market which has led to commercial farmers mixing the feed themselves on site and few farms have purchased their own small machines to make the feed.
6.
Challenges
Domestic
production
is
limited
in
Rwanda.
The
only
animal
feeds
manufacturer,
SOPAR,
is
currently
facing
financial
difficulties
limiting
operations
and
the
other
main
producers
(Minimex,
Pembe
and
Bakhresa)
do
not
see
animal
feeds
production
as
the
core
of
their
business.
There
is
also
an
effort
to
increase
livestock
farmer
awareness
of
using
quality
concentrated
animal
feeds
as
a
significant
number
of
commercial
farmers
tend
to
mix
their
own
feed.
7.
Potential
opportunities
The
Government
is
currently
in
negotiations
with
the
Unga
Group
regarding
investment
into
SOPAR,
which
is
the
only
local
animal
feeds
company
that
has
run
into
financial
difficulties.
There
is
scope
to
expand
animal
feed
production,
given
the
unmet
domestic
demand
for
animal
feeds.
25
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2012
Chapter
7:
Paprika
1.
Background
&
Overview
Paprika
in
Rwanda
is
grown
in
small
quantities
and
is
referred
to
the
Capsicum
genum
(also
known
as
bell
pepper)
and
not
the
powdered
spice
that
can
be
made
from
some
forms
of
capsicum.
It
is
used
as
a
cooking
vegetable
in
meals
and
is
not
used
frequently
as
a
spice
in
local
cooking.
There
is
no
commercial
farm
that
grows
paprika
on
a
large-scale
but
several
cooperatives
have
focused
their
efforts
on
this
product.
Based
on
an
internal
market
research
survey 35,
we
found
that
most
cooperatives
grow
the
California
variety
of
paprika
primarily
for
domestic
consumption
during
the
3-month
season.
The
paprika
is
sold
in
local
markets
and
due
to
the
unpredictable
demand,
is
produced
mainly
on
an
order-basis.
The
average
retail
price
of
paprika
is
approximately
RWF
400/kg
(USD
0.66)36.
2.
Policy
context
Paprika
is
not
a
high
priority
of
the
government
or
the
donor/NGO
community
in
Rwanda
due
to
the
limited
and
erratic
market.
We
are
not
aware
of
any
support
mechanisms
or
initiatives
to
support
the
paprika
sector.
4. Supply Chain
Most cooperatives obtain their seeds from either Agrotec, a key player in distributing agricultural inputs in Rwanda. A number also produce their own seeds or import from either Kenya or the Netherlands. Inputs for paprika include NPK 37 , DAP 38 and imborera (natural fertilizer from animals). NPK inputs are used by at least 80% of the cooperatives surveyed. The paprika is cultivated over a 3-month season and sold in local markets and directly to restaurants and hotels. There is no local processing of the paprika and packaging is rudimentary.
5.
Sector
Exports
and
EAC
context
Export:
Geranium
Cooperative
is
the
only
organization
we
are
aware
of
only
one
cooperative
that
exports
limited
quantities
to
the
DRC.
No
informal
exports
of
paprika
have
been
recorded.
35
Laterite
interviewed
21
cooperatives
and
small-holder
farms
that
were
involved
in
growing
paprika
36
Based
on
internal
market
research
survey
37
Nitrogen,
phosphorus
potassium
complex
38
Di-ammonium
phosphate
26
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Agribusiness
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2012
EAC:
One
of
the
largest
producers
of
paprika
is
based
in
Tanzania,
the
Tanzania
Spices
Ltd,
which
grows
raw
paprika
for
exports
to
Spain.
The
company
is
a
local
subsidiary
of
a
major
Spanish
spice
processor,
EVESA.
Kenya
is
also
an
exporter
of
paprika
spices
to
Europe.
6. Challenges
The main challenges identified by the cooperatives during the survey include (ascending order): Limited domestic market Drought Diseases Fake agricultural inputs, e.g. fertilizers and seeds Lack of fertilizers
7. Potential opportunities
The domestic market is limited with erratic demand discouraging farmers from growing paprika at scale. However, cooperatives did indicate that a regional market combining Burundi and DRC would make paprika-growing a viable opportunity if investors are willing to source the market on their behalf. Given the success of the Tanzania Spices Company, there is an opportunity to export raw paprika to Europe for spice processing.
27
Rwanda
Agribusiness
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2012
Chapter
8:
Soybeans
1.
Background
&
Overview
Soybean
production
in
Rwanda
dates
back
to
the
1920s
when
it
was
first
introduced
by
INEAC
(Institut
National
pour
l'Etude
Agronomique
du
Congo
Belge).
By
1977,
Rwanda's
soybean
production
increased
to
6,000
hectares
motivated
by
the
installation
of
a
new
oil
mill
that
used
soybeans.
A
subsequent
decision
to
nationalize
most
of
the
trade
sector
led,
unfortunately,
to
a
sharp
drop
in
soybean
cultivation,
since
farmers
had
difficulty
selling
their
crops.
Research
on
soybean
continued
in
1975
through
trials
in
collaboration
with
the
University
of
Illinois,
which
led
to
the
identification
of
several
highly
productive
varieties
that
are
adaptable
to
Rwanda
agro- ecological
conditions39.
But
soybean
production
in
Rwanda
has
never
existed
on
a
large
scale,
and
has
declined
over
recent
years
due
to
the
fact
that
the
Rwandan
Agricultural
Research
Institute
(ISAR)
ceased
producing
the
inoculation
material
needed
for
nitrogen
fixation
by
the
soybean
plant
(the
bacterium
Rhizobium).
At
present,
only
small-scale
production
and
processing
of
soybean
takes
place:
maize-soy-sorghum
blend
(through
Somoma
industries),
tofu
and
soy-milk
(via
the
cooperative
Abahuje)
and
as
subsistence
consumption
when
used
in
porridge,
sauces
and
snacks40.
2.
Policy
context
Since
the
Rwandan
Agricultural
Research
Institute
(ISAR)
ceased
producing
the
Rhizobium
bacteria
needed
for
nitrogen
fixation
by
the
soybean
plant,
there
has
been
limited
policy
and
research
development
into
soybean
production
in
Rwanda.
Through
the
Clinton
Hunter
Development
Initiative,
there
is
a
renewed
interest
in
soybean
development
in
Rwanda.
Soyco Ltd.: incorporated in 2009, Soyco is a large soy processing business that will dramatically increase the demand for soybeans. The company is contracting with an estimated 30,000 local farmers to grow soybeans and is providing inputs to support them. Soycos own commercial farm will employ up to 1,400 farmers, and its factory will employ a staff of around 120. The project investment is expected to be USD 15M for produce edible cooking oil from soy and sunflower seed and the bi-product of the plants i.e. soy and sunflower cake is to be used as animal feeds. The plant will be based in the Kayonza District and is scheduled to be operational in mid-2013 and capacity is expected to be 200 mt per day although full capacity is expected to be achieved in the next 5 years. Partners include the Kenyan conglomerate Mt. Meru Group, Clinton Hunter Development Initiative, Crystal Ventures Ltd, Rwanda Social Security Board and Kayonza District.
Sosoma
Industries:
is
located
in
Kigali
and
processes
a
small
amount
of
soybeans
(300
MT/year)
for
blending
with
maize
and
sorghum
to
produce
a
nutritious
porridge
for
children.
Abahuje:
the
only
other
soy
processing
operation
in
Rwanda
at
present
is
the
ABAHUJE
soymilk
and
tofu
factory
in
Ruhango,
which
processes
1.5mt
soybeans
per
year.
The
facility
has
got
a
storage
capacity
of
10mt,
and
was
in
the
process
of
obtaining
new
machinery
to
process
both
tofu
and
soybean
oil.
39
Rwanda
Agricultural
Research
Institute
40
Assessment
of
Post-Harvest
Opportunities
in
Rwanda,
USAID
2010
28
Rwanda
Agribusiness
MarketScan
|
May
2012
4. Supply Chain
Generally, Rwandan soybean production takes four months from sowing to harvest and is cultivated for two seasons, in rotation with maize, rice, or other staple crops. In a 2010 study, some soybean demonstration plots where all inputs and improved production practices were applied reported achieving 1800 kg/ha but typically, yields average around 500kg/ha 41 . Small-scale farmers mainly produce soybean, and production is not organized into cooperatives with the exception of those producing for the Sosoma factory, and three cooperatives producing for the Abahuje soymilk and tofu factory in Ruhango. As mentioned above, soybean production has been seriously reduced by the cessation of supplies of Rhizobium, the bacterium) which must be used to inoculate the seed prior to sowing in order for nitrogen fixation which impacts the growth and productivity of the crop42. This is expected to change with the onset of the Soyco project in Kayonza. The very small volumes of soybeans currently produced result in negligible trade in Rwanda. The only significant commerce is between the Abahuje soy processing facility and three cooperatives which process soybean with their (and IFDC) assistance, and the soybean producing cooperatives affiliated with Sosoma Industries.
6.
Challenges
The
main
challenges
afflicting
the
soya
bean
industry
include:
Poor
production
techniques
have
led
to
significant
losses
arising
from
pod
shattering.
In
addition,
producers
require
training
on
improved
threshing
techniques,
and
grading
and
sorting;43
Lack
of
Rhizobium
(which
is
needed
at
sowing
to
ensure
nitrogen
fixation)
since
the
production
unit
at
ISAR-Rubona
ceased
operations;
Small-scale
farmers
have
limited
experience
producing
crop
on
commercial
scale
therefore,
will
require
substantial
training; Intensification
of
production
increases
risk
of
outbreak
of
soybean
rust
disease
7.
Potential
opportunities
The
potential
for
soybean
production
in
Rwanda
exists
due
to
the
large
demand
for
cooking
oil,
which
is
currently
imported
from
neighboring
countries.
The
Soyco/Kayonza
plant
is
expected
to
partially
satiate
this
demand
and
drive
the
growth
in
the
soybean
production
and
processing
industry
in
Rwanda
but
there
remains
scope
for
additional
investment
in
the
soybean
industry.
41
Assessment
of
Post-Harvest
Opportunities
in
Rwanda,
USAID
2010
42
Ibid
43
Ibid
29
Rwanda
Agribusiness
MarketScan
|
May
2012
Chapter
9:
Mushrooms
1.
Background
&
Overview
Mushroom
growing
started
in
Rwanda
in
1996
where
they
were
grown
in
bean
plants
residues.
Production
was
limited
until
2006
when
MINAGRI
signed
an
agreement
with
their
Chinese
counterparts
to
teach
the
mushroom
growing
technique
called
Juncao
(growing
mushrooms
in
grass),
which
has
been
quite
successful.
This
method
is
used
in
Rwanda
where
residues
of
rice,
maize,
sorghum
and
others
crops
are
grounded,
mixed
and
made
into
mushroom
beds.
Over
30
cooperatives
in
Rwanda
use
the
same
process
to
grow
mushrooms
and
today,
there
are
over
1000
mushroom
growers
in
Rwanda.
Production
is
concentrated
in
the
Kigali
area
and
the
Musanze
area
too
due
to
the
favorable
climate.
From
a
climactic
point
of
view,
mushrooms
like
it
fresh
and
humid.
They
have
a
narrow
tolerance
range
for
temperature.
Oysters,
depending
on
the
stage
in
their
life
cycle,
like
it
between
20
and
25
C.
One
can
recreate
this
temperature
range
with
air
conditioning,
but
that
is
energy-intensive.
In
the
elevated
parts
of
Rwanda,
one
can
use
the
prevailing
climate
as
is,
with
very
little
human
tweaking.
In
addition,
the
high
density
of
the
population
somewhat
makes
up
for
the
lack
of
cold
chain.
It
is
never
very
far
from
the
market,
and
as
it
happens,
the
best
growing
area,
climate-wise,
is
in
the
North,
only
one
hours
drive
away
from
kigali,
the
largest
market.
There
is
very
little
formal
tracking
of
yields.
My
best
guess
is
that
yeilds
at
the
moment
are
aboyt
30-40%
of
what
they
should
be,
due
to
high
contamination
rates
and
sub-optimal
management
of
environmental
factors
(temperature,
humidity,
Co2
levels).
Mushrooms
are
found
in
the
markets
mostly
in
the
rainy
season,
when
they
can
be
found
wild.
Furthermore,
encouraged
by
NGOs,
development
agencies
and
international
institutions
alike,
many
Rwandan
cooperatives
have
slowly
moved
into
the
mushroom
growing
business.
The
main
varieties
grown
in
Rwanda
include
oyster
mushrooms,
and
small
quantities
of
shitake
mushrooms.
A
2008
study
by
RDB
indicated
that
the
national
demand
(1,520
tons)
current
doubles
the
supply,
which
was
later
confirmed
by
a
2010
Oxfam
survey
citing
the
frustrations
of
local
restaurants
and
hotels
in
obtaining
the
appropriate
quality
and
quantity
of
fresh
mushrooms.
2.
Policy
context
The
Rwanda
Agricultural
Board
(RAB)
is
taking
a
lead
role
in
encouraging
mushroom
production
primarily
for
nutrition
reasons
but
also
to
boost
smallholder
farmers
incomes.
Given
the
success
of
the
Chinese
Juncao
technology
to
grow
mushrooms,
30
companies
are
already
producing
seeds
(spawns)
for
commercial
mushroom
production
and
more
than
1000
farmers
are
involved
in
mushroom
growing.
Based
on
these
results,
in
2006,
the
Government
through
RAB
invited
the
Chinese
Fujian
Agriculture
and
Forestry
University
to
set
up
the
Rwanda
Agriculture
Technology
Demonstration
Centre
(RATDC)
to
train
farmers
in
mushroom
growing.
The
program
based
in
Rubona
has
benefited
200
farmers
to
date.
3.
Profiles
of
Large
Firms
Kigali
Farms:
is
a
for-profit
social
enterprise
started
in
March
2010
by
the
Belgian
entrepreneur
Laurent
Demuynck.
KFs
focus
has
been
on
the
cultivation
of
oyster
mushrooms
because
they
can
grow
year-round,
are
rich
in
nutrients,
and
can
produce
high
yields
per
acre.
They
mass-produce
the
substrate
at
half
to
a
third
of
the
cost
of
todays
substrate,
incubate
the
mushroom
spawn
in
it,
and
help
set
up
a
network
of
independent
entrepreneurs,
farmers
and
cooperatives
who
can
fruit
30
Rwanda
Agribusiness
MarketScan
|
May
2012
the
substrate,
then
harvest
and
sell
the
mushrooms.
The
company
has
set
up
an
operation
in
Byumba
to
produce
the
substrate
on
a
large
scale
by
importing
the
bulk
processing
techniques
from
Italy
and
Spain,
which
they
hope
will
reduce
the
cost
of
the
substrate.
In
addition,
they
have
plans
to
explore
regional
exports,
mushroom
processing,
and
using
alternative
substrates
such
as
coffee
pulp
or
rice
straw.
BN
Producers:
set
up
in
2006
by
a
woman
entrepreneur,
Niyibaho
Berthilde.
The
company
focuses
on
production
of
mushroom
seeds
(tubes)
and
more
recently
selling
fresh
and
dry
mushrooms
to
hotels
and
supermarkets.
BN
Producers
has
partnered
with
Duterimbere,
a
womens
cooperative
to
build
capacity
of
women
growers
and
has
sought
financing
from
Oxfams
Enterprise
Development
Program.
In
March
2012,
a
new
mushroom
seeds
production
factory
in
Bugesera
was
launched,
funded
by
MINAGRIs
PADAB
(Project
dApuis
au
Development
Agricole
de
Bugesera)
project.
The
factory
is
expected
to
produce
20
thousand
seeds
per
day.
4.
Supply
Chain
Mushroom
cultivation
differs
from
traditional
farming
as
they
obtain
their
energy
from
degradation
of
organic
matter
(substrate)
and
not
the
sun.
Three
main
stages
are
involved
in
the
cultivation
of
mushrooms:
spawning
(seed
production
or
starter
culture),
substrate,
and
shooting/cropping.
The
spawn
is
typically
imported
from
Europe
but
the
incorporation
of
the
seeds
factory
in
Bugesera
indicates
a
move
towards
local
sourcing
which
will
improve
the
economics
of
the
production.
Substrate
development
is
being
conducted
at
a
large
scale
by
Kigali
Farms;
the
raw
materials
for
the
substrate
are
locally
available
agriculture
by-products
such
as
wheat
straw
and
potentially,
coffee
pulp
residues44.
The
post-harvest
substrate
can
then
be
composed
into
fertilizer
or
used
as
animal
feed.
The
lack
of
cold
storage
facilities
prevents
the
exports
to
regional
or
international
markets
so
most
of
the
produce
is
geared
towards
the
local
market
and
is
primarily
sold
fresh
but
can
be
sold
dry
or
in
powder
form
too.
5.
Sector
Exports
and
EAC
context
Exports:
there
are
no
exports
of
mushrooms
to
regional
or
international
markets.
All
produce
is
used
for
domestic
consumption.
EAC:
Exports
to
regional
markets
would
be
a
secondary
priority
given
the
high
transport
costs.
Burundi,
Eastern
DRC
and
southern
Uganda
can
be
serviced
overland
and
Nairobi,
possibly
by
air
(though
the
lack
of
cold
storage
facilities
could
hamper
this
unless
dry
mushrooms
are
exported).
6.
Challenges
The
main
challenge
in
the
sector
is
the
use
of
unreliable
production
methods,
which
has
resulted
in
high
production
costs
and
market
prices,
as
well
as
limited
and
unpredictable
yields.
The
cost
of
the
substrate
is
very
expensive
and
will
be
required
to
drop
by
a
factor
of
two,
in
order
to
make
it
viable
for
farmers
to
grow
it
at
scale
however,
new
initiatives
led
by
Kigali
Farms
(importing
bulk
44
These
substrate
ingredients
are
an
initiative
of
Kigali
Farms;
other
by-products
can
be
obtained
from
rice,
31
Rwanda
Agribusiness
MarketScan
|
May
2012
processing
techniques)
and
the
Rwanda
Agriculture
Technology
Demonstration
Centre
(RATDC)
bodes
well
for
the
future
of
this
promising
sector.
7.
Potential
opportunities
As
indicated
above,
the
demand
for
mushrooms
far
outweighs
the
current
supply.
This
is
substantiated
by
the
high
market
prices
which
is
on
par
with
meat
prices
(current
market
prices
hover
around
the
RWF2,000/kg
mark).
In
addition
to
fresh
mushrooms,
there
is
a
market
for
dried
mushrooms,
whole
or
in
powder
form45.
The
powder
can
also
be
used
as
a
fortification
agent
when
mixed
with
flour.
According
to
local
experts
in
the
mushroom
industry,
there
is
potential
to
develop
every
node
of
the
value
chain
but
the
keystone
is
the
substrate,
which
is
critical
to
the
quality
and
cost
control.
If
you
can
get
substrate
quality
up
and
production
costs
up,
then
substrate
manufacturers
can
sell
their
product
at
a
price
that
is
profitable
for
them,
and
profitable
for
the
mushroom
growers
downstream.
There
will
be
need
for
capital
in
both
segments
of
the
value
chain.
We
prefer
the
substrate
segment,
because
it
enables
the
rest
of
the
chain.
Rwanda
Agribusiness
MarketScan
|
May
2012
However,
there
is
significant
potential
to
develop
the
horticulture
seed
market
primarily
the
vegetable
seeds
for
the
domestic
market,
given
that
there
is
strong
demand.
Rwandas
topography
and
varying
climatic
conditions
afford
it
numerous
possibilities
to
set
up
production
units
for
international
horticulture
seed
traders/companies
involved
within
vegetables
and
flower
seed
production,
as
well
as
research.
2.
Policy
context
There
are
a
number
of
initiatives
in
for
developing
the
seed
sector
in
Rwanda.
Currently,
a
government
enterprise
is
under
construction,
the
Rwanda
Seed
Enterprise.
The
aim
of
this
company
is
to
process,
threat
and
bag,
sell
and
distribute
agricultural
seed
on
the
national
and
regional
market.
However,
the
main
challenge
is
the
conformity
to
EAC
harmonization
and
international
seeds
standards
such
as
ISTA
and
OECD,
but
process
is
in
development.
The
government
is
committed
to
promote
the
private
sector
and
there
are
a
lot
of
plans
ongoing
for
assuring
a
better
business
environment
in
the
seed
sector.
There
are
some
NGOs
and
development
agencies
working
in
the
seed
sector.
The
main
player
is
the
Belgian
Development
Agency
(BTC),
which
is
supporting
RAB
with
its
implementation
of
Rwanda
Seed
Initiative.
The
IFDC
is
also
active
through
its
Rwanda
Agro-Dealer
Development
(RADD)
program
that
among
other
activities
is
seeking
to
boost
the
supply
of
certified
seed.
33
Rwanda
Agribusiness
MarketScan
|
May
2012
4.
Supply
Chain
Currently
there
is
no
large-scale
production
of
seeds
in
Rwanda.
RAB
produces
certified
seed
by
a
net
of
seed
multipliers
and
directly
purchases
and
delivers
the
certified
seeds
to
farmers.
There
are
a
number
of
development
agencies
and
NGOs
that
are
working
on
certified
seed
multiplication
(directly
or
indirectly)
and
who
distribute
seed
such
as
IFDC,
FAO,
Catholic
Relief
Services,
USAID,
Research
Into
Use,
etc.
6. Challenges
The main challenge facing the seed industry is that the demand for quality seeds is not detailed known. Secondly, there is limited farmer awareness of quality seeds usage, which compounds the problem for some of the crops.
7. Potential opportunities
Despite the absence of robust market information, vegetable and forage seeds can be seen as viable opportunities in Rwanda 46. Another potential crop is potato seed (the seed and crop production of potato is primarily concentrated in Musanze area). Other possibilities are investment in seed production units by international horticulture seed traders/companies, which can to be exported to the Netherlands and other countries and thereafter being distributed internationally. Similarly, horticulture seeds such as green beans seeds and annual flower seed have good potential given that the current Arusha production is limited.
46 Interview with BTCs International Seed Business Expert and the RAB National Seed Coordinator, the co- managers of the Rwanda Seed Initiative 34
Rwanda
Agribusiness
MarketScan
|
May
2012
Annex
1.1
Relevant
Contacts
by
Agribusiness
Sector
1.2
List
of
Ministry
of
Agriculture
&
Animal
Products
(MINAGRI)
Projects
1.3
Support
Organizations/Programs
for
Rwandan
Agribusiness
1.4
Investment
Support
Programs
in
Rwanda
35
Rwanda
Agribusiness
MarketScan
|
May
2012
36
Rwanda
Agribusiness
MarketScan
|
May
2012
Ndabananiye
Samuel
Twizeyimana
Jean
Harerimana
Emmanuel
Abahujingendo
Cooperative
Mukarukundo
Donathila
Twifatanye
Cooperative
Impobaruta
Cooperative
Coaleka
Cooperative
Codeprag
Cooperative
Mukakarera
Vestine
Gasana
Ibrahim
Karugarama
Venuste
Bimenyimana
Eugene
Koamboka
Cooperative
Zikamabahari
Cooperative
Ntahondi
Cooperative
Twisungane
Cooperative
Individual
farmer
Individual
farmer
Individual
farmer
Cooperative
Individual
farmer
Cooperative
Cooperative
Cooperative
Cooperative
Individual
farmer
Individual
farmer
Individual
farmer
Individual
farmer
Cooperative
Cooperative
Cooperative
Cooperative
Soybeans
Soyco
Ltd.
Sosoma
Industries
Abahuje
Kigali
Farms
BN
Producers
COODAC
Peace
Cooperative
Garukurebe
Uwimanireba
Redempta
Hitabatuma
Denys
BTC
Seed
Initiative
National
Seed
Coordinator
Ramendra
Bhargava
Thadee
Musabyimana
TBD
Mushrooms
Laurent
Demuynck
Niyibaho
Berthilde
Cooperative
Cooperative
Cooperative
Individual
Individual
Seeds
Britt
Granqvist
Daniel
Nyikiza
granqvistbritt@hotmail.com
danyone101@yahoo.fr
kubaho.rwanda@yahoo.fr
info@kigalifarms.com
0788479053
0788551118
0788468394
0788762790
0788906879
0788881194
rkbhargava@mtmerugroup.com
sosoma@rwanda1.com/0788384189
TBD
0785632231
0783729671
0783194411
0783291128
0783068779
0785260290
0788544484
0788550190
0788631785
0783519229
0783227149
0783358258
0788487975
0783382783
0783193294
0783239504
0788888731
37
Rwanda
Agribusiness
MarketScan
|
May
2012
PAPSTA (Support Project to the Strategic Plan for the Agriculture Transformation)
To raise smallholder farmers income To increase agriculture production and marketing in marshland and hillside in an environmentally sustainable manner Increase productivity and commercialization of hillsides agriculture in target area
RSSP-2 (Rural Sector Support Project) LWH (Land Husbandry Water harvesting and Hillside Irrigation)
Capacity development in farmer organization, extension marketing and rural finance; Land husbandry, Water harvesting and Irrigation - Setting up Irrigating infrastructure in Rurambi Valley (1000 Ha) on which rice and Increase agricultural market-garden crops would be cultivated two production in Bugesera seasons yearly Region by setting up - Water and soil protection (WSP) through PADAB (Bugesera irrigation infrastructure, erosion control facilities on nearly 3200 ha of Agricultural protecting catchments and catchment basins. Development Support improving rain-fed farming - Building the capacity of the beneficiaries; Project) on nearly 5 000 ha of hills, as - Extending new technology; well as building the capacity - Distributing improved seeds and plants, and of farmers and supervisory intensifying rain-fed crops and agro-forestry; institutions - Conducting rural extension; - Establishing marketing infrastructure - Capacity building activities to fishers The sector goal is to especially in lakes management and sensitizing them on sustainable fishing contribute to the strengthening of the methods, PAIGELAC ((Inland lakes food security while the - Watershed protection activities around 17 Integrated Development specific objective is to inland lakes and Management Support improve the incomes of - Assisting fish farmers in the rehabilitation Project) actors in the fishery sub and creation of fish ponds sector in a sustainable - Rehabilitation of Kigembe fish farm into a manner modern fish hatchery - Construction of landing sites in order to
38
Rwanda
Agribusiness
MarketScan
|
May
2012
- - - - reduce
post
harvest
losses
and
improve
fish
commercialization
Carrying
out
lakes
restocking
with
Tilapia
niloticus
Purchasing
Tilapia
niloticus
brood
stocks
to
supply
to
the
farmers
for
the
1st
stocking
phase
Assisting
fish
farmers
to
get
the
1st
cycle
feeds
and
supplying
them
with
8
units
of
small
fish
feed
making
machines.
Training
and
organizing
study
tours
to
fishers
and
fish
farmers
in
order
to
acquire
more
knowledge
and
skills
on
commercial
fish
farming
Provide possible logistical and technical support to beneficiary farmers/cooperatives to optimize production and maximize profits with a major thrust on value addition initiatives for production of various silk products / handcrafts for local and foreign markets
N/A
Improved access to advisory services for crops and livestock Improved access and use of high quality planting materials of food crops for men and women
Improve food security in Bugesera region through a sustainable increase in agricultural production
The goal of the LISP is the creation of an enabling environment that will
- Support RAB to implement The Rwanda Seed Initiative (Seed policies, Seed production, Genebank, Rwanda Seed Enterprise, Private sector development and Quality control) - Support RAB to implement The Rwanda Farmer Field School Initiative (Nationwide FFS for all major crops and livestock, Contract private agricultural services providers, improved demand articulation) - Support to CICA (National extension resource center, Centre of excellence for extension material development, Mass coverage through radio messages) - Develop lake and marshland watersheds over a surface area of 4000 ha; - Rehabilitate irrigation facilities over 1 500 ha of marshland; - Develop irrigation facilities in small hillside areas watered by lakes (100 Ha); - Develop production (distribution of selected seeds, integration of cattle and goat rearing with irrigated farming, organization of farmers into cooperatives); - Rehabilitate 50 km of rural access roads; - Set up storage and processing facilities, and construct buildings The specific objective of LISP is to build the necessary infrastructure and services that will
39
Rwanda
Agribusiness
MarketScan
|
May
2012
stimulate
the
development
of
a
modern
livestock
industry
in
Rwanda
through
value
addition
and
access
to
markets.
The
goal
of
the
project
would
be
the
reduction
in
rural
poverty
in
Kirehe
District,
as
evidenced
primarily
by
a
step
improvement
in
household
food
and
nutrition
security,
asset
ownership
and
quality
of
life
indicators,
particularly
amongst
vulnerable
groups
including
woman-headed
households,
orphans
and
those
living
with
HIV/AIDS
contribute
to
the
development
of
a
sustainable
and
profitable
livestock
production
and
marketing
and
overall
improvement
of
the
livestock
industry
in
Rwanda.
- Local institutional development (Support to Agricultural Transformation, Water and Land Use management) - Agricultural Intensification (Value Chain development, Crop and livestock intensification, Irrigation development, Soil and Water conservation) - Feeder Roads - Project coordination
40
Rwanda
Agribusiness
MarketScan
|
May
2012
IFDC Rwanda 730, Kimihurura II, Gasabo District P.O. Box 6758 Kigali - Rwanda t: +250 551 042 11 e: ifdcrwanda ifdc.org: www.ifdc-catalist.org
TechnoServe
41
Rwanda
Agribusiness
MarketScan
|
May
2012
quality
coffee
assessment
and
processing
particularly
the
effective
use
of
wet
mills
to
produce
quality
washed
coffee
as
well
as
agronomy
best
practices.
Establishment
of
dairy
enterprises
and
developing
market,
technical
and
financial
linkages
Through
financial
and
technical
assistance,
USAID
helps
farmers
to
establish
cooperatives
and
improve
the
lives
of
their
members,
builds
coffee
washing
stations,
trains
world- class
Rwandan
cuppers
(professional
coffee
tasters)
and
markets
Rwanda's
premium
coffees
in
the
global
market
Provide
enhanced
drying
facilities,
business
training,
and
improve
annual
target
for
production
of
pyrethrum.
Help
facilitate
linkages
between
suppliers
and
international
exporting
companies.
The
partnership
promote
the
development
of
high-value
markets
to
increase
the
incomes
of
farmers
who
grow
birds
eye
chili
peppers
and
others
involved
in
the
value
chain.
SPREAD
also
funds
infrastructure
related
to
the
production
such
as
furnaces,
etc
Aims
to
increase
the
productivity
and
profitability
of
dairy
processors,
expand
opportunities
in
the
dairy
industry
and
improve
the
lives
of
Rwandans
in
rural
areas,
especially
people
living
with
HIV/AIDS
and
orphans
and
vulnerable
children
Technical
assistance
will
be
provided
to
groups
along
all
areas
of
the
supply
chain
including
dairy
farmers,
milk
haulers,
Milk
Collection
Centers
(MCCs),
processors,
and
retailers
helping
to
build
robust
horizontal
and
vertical
business-to-business
partnerships.
See
MINAGRI
list
of
projects
Aimable
Ntukanyagwe
Creating
strong
district,
watershed
a.ntukanyagwe@ifad.org
and
farmer-based
institutions
capable
of
sustaining
efficient
and
non- destructive
agricultural
and
livestock
production;
empower
small-scale
and
landless
farmers
to
plan
and
Dairy Program SPREAD Coffee (Sustaining Partnerships to Enhance Rural Enterprise and Agribusiness Development SPREAD Pyrethrum
Land OLakes
Support Project for the Strategic Plan for the Transformation of Agriculture Kirehe Community-based Watershed Management Project
42
Rwanda
Agribusiness
MarketScan
|
May
2012
implement
sustainable
market-led
investments
jointly
with
the
private
sector;
develop
2,000
ha
of
irrigated
land,
protecting
and
intensifying
about
20,000
ha
of
cultivated
catchment
area,
and
providing
cattle
and
goats
for
animal
solidarity
chains;
rehabilitate
feeder
roads
to
improve
links
between
farmers
and
markets
Benefit
smallholder
farmers,
and
especially
woman-headed
households
and
households
with
little
land,
involved
in
the
production
of
coffee,
tea,
sericulture
and
horticulture
by
achieveing
sustainable
increased
returns
to
farmers
from
key
export- driven
agricultural
value
chains,
through
increased
volumes
and
quality
of
production,
improved
marketing
and
effective
farmer
organisations;
strengthen
producer
cooperatives
as
full-fledged
economic
partners
of
the
private
sector
The
market
bundle
has
4
components:
empower
local
groups
of
farmers
(self-help),
provide
customized
farmer
training,
provide
capital
for
seeds
and
fertilizer,
market
facilitation
(post-harvest
handling
and
storage)
and
finally,
crop
insurance.
GHI
provides
access
to
land
and
patient
capital
for
community
gardens,
seeds
and
tree
seedlings
for
family
home
gardens,
technical
assistance
in
sustainable
agriculture
and
nutrition,
and
market
linkages.
One-Acre Fund
NGO supporting on one-acre subsistence farmers in Sub- Saharan Africa Non-profit focusing on HIV- positive individuals to improve their nutrition and health
43
Rwanda
Agribusiness
MarketScan
|
May
2012
Private Sector Investment (PSI) programme AECF is a US$150M private sector fund, backed by DANIDA, DFID, IFAD, NMFA and SIDA
Contingent on Funding windows currently there is not a Rwanda-specific funding window. Applications can be found at http://www.aecfafrica.org/r egform/pcw/ Applications should be sent to innovationsagainstpoverty@ se.pwc.com Detailed instructions on the application process can be found at: http://www.sida.se/English /Partners/Private- sector/Innovations-against- poverty/How-to-apply/ Deadline: November 2012 Application instructions are located here: http://www.businesspartner s.co.za/page/bpi-rwanda- apply-for-finance
Agribusiness Support
44
Rwanda
Agribusiness
MarketScan
|
May
2012
management,
technical,
and
marketing
expertise.
e.g.
CHDI
is
in
the
process
of
developing
two
new
large-scale,
value-additive
businesses
in
Rwanda:
a
soy
processing
plant
and
a
coffee
roasting
business.
Certain
companies
can
be
selected
for
support
in
the
form
of
development
Thomas
Bedenbecker
partnerships
with
the
public
sector
thomas.bedenbecker@giz.de
(PPPs).
Assessment
for
support
is
made
on
a
case
basis
45
Rwanda
Agribusiness
MarketScan
|
May
2012
Access to finance
Land availability
Transport
Post-harvest infrastructure
Energy
Water
Rwanda
Agribusiness
MarketScan
|
May
2012
Air
Links
and
High-Value
Exports
Insufficient
international
transport,
in
particular
airfreight,
has
so
far
limited
the
expansion
of
high-value
agriculture
products
Until
recently,
sector
efficiency
was
compromised
by
disconnected
subsistence
smallholder
farmers
Quality
of
horticulture
and
staple
crops
have
come
from
historically
low
levels
of
production
capacity
and
input
application
Although
tax
rates
are
very
competitive
in
the
region,
the
administration
of
taxation
laws
is
often
cited
by
private
sector
as
a
barrier.
Compliance
with
international
Sanitary
and
Phytosanitary
standards
will
be
vital
for
the
sector
to
access
regional
and
international
markets.
The
price
of
fertiliser
(both
organic
and
inorganic)
remains
relatively
high
(though
cushioned
by
Govt
subsidies
to
smallholders),
and
the
country
continues
to
be
very
dependent
on
imports
of
seeds
and
fertiliser.
Airlines
are
rapidly
ramping
up
their
air
cargo
services
with
numerous
new
routes
now
regularly
flying
to
new
destinations
in
DRC,
Europe,
Middle
East
and
Asia
opening
up
in
2011.
Cold
Storage
Facilities
are
in
place
at
Kigali
airport
with
30
tons
of
quality
storage
currently
and
government
subsidies
offered
for
horticulture
exporters.
Through
increasing
support
to
cooperatives
in
Rwanda,
land
consolidation
to
organise
agricultural
input
distribution
and
improve
productivity,
and
SME
development
being
a
key
government
priority
farmers,
the
capacity
of
farmers
in
Rwanda
is
rapidly
improving.
MINAGRI
has
invested
significantly
in
extension
services,
improved
inputs,
post-harvest
infrastructures,
land
husbandry
and
irrigation
to
improve
quality.
Farm-level
capacity
building
through
technical
assistance
has
been
provided
by
MINAGRI,
Belgian
Technical
Cooperation,
East
African
Growers
and
the
World
Bank.
RDB
is
providing
improved
regulatory
services.
Reform
of
Rwanda
Revenue
Authority
(RRA)
continues
at
a
fast
pace.
A
dedicated
Inspections
Directorate
is
being
established
in
the
Ministry
of
Agriculture,
with
international
support
to
train
and
develop
staff
in
Sanitary
and
Phytosanitary
standards.
Sector organisation
Quality of Produce
Tax administration
Certification
Agro-inputs
Supported by MINAGRI and USAID, the inorganic fertilizer market is expanding through the agro-dealer network and the introduction of international fertilizer companies.
47