NATIONAL UNIVERSITY OF RWANDA

FACULTY OF AGRICULTURE

DEPARTMENT OF AGRICULTURAL ECONOMICS AND

AGRIBUSINESS

ACADEMIC YEAR: 2011-2012

A dissertation submitted to the faculty of

Agriculture as a partial fulfillment of

requirements for the award of the Bachelor’s

degree with honours in Agricultural Economics

and Agribusiness.

By NGANGO Jules

SUPERVISOR: Mr. HABIMANA Kizito, Msc

Huye, June 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

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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: .................................

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DEDICATION

I dedicate this Dissertation to:

Almighty God,

My parents,

My entire family,

And

Friends.

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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 André 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!

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LIST OF SYMBOLS, ABBREVIATIONS AND ACRONYMS

BC : Before Christ

CIP : Crop Intensification Program

CODERVAM : Cooperative de Developement Rizicole des Vallees du Mutara

et al. : et ses collaborateurs

FAO : Food and Agriculture Organization

GDP : Gross Domestic Product

Ha : Hectare

IFAD : International Fund for Agricultural Development

IRRI : International Rice Research Institute

ISAR : Institut des Sciences Agronomiques du Rwanda

Kg : Kilogram

KOAIRWA : Koperative y’Abahinzi b’Igishanga cya Rwasave

MINAGRI : Ministry of Agriculture and Animal Resources

MINECOFIN : Ministry of Finance and Economic Planning

NRDS : National Rice Development Strategies

OLS : Ordinary Least Squares

RADA : Rwanda Agriculture Development Authority

RSSP : Rural Sector Support Project

Rwf : Rwandan francs

SACCO : Saving and Credit Cooperatives

SPSS : Statistical Package for Social Sciences

T : tonne

UCORIRWA : Union des Coopératives Rizicoles au Rwanda

% : Percent

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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

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2.2.2. Production .......................................................................................................... 7

2.2.3. Income ................................................................................................................ 7

2.2.4. Saving ................................................................................................................ 7

2.3. OVERVIEW OF RICE INDUSTRY ......................................................................... 8

2.3.1. Global Rice Industry ........................................................................................... 8

2.3.2. The Rwandan Rice Industry ................................................................................ 9

2.4. IMPORTANCE OF RICE PRODUCTION ............................................................. 10

2.4.1. Importance of Rice in the world ........................................................................ 10

2.4.2. Importance of Rice to the Rwandan Economy ................................................... 10

2.5. RICE PRODUCTION IN RWANDA ...................................................................... 12

2.5.1. Rice growing schemes in Rwanda ..................................................................... 12

2.5.2. Rice Production trends ...................................................................................... 14

2.6. RICE MARKETING IN RWANDA........................................................................ 15

2.6.1. Paddy processing in Rwanda ............................................................................. 15

2.6.2. Rice supply channels in Rwanda ....................................................................... 16

2.7. CONSTRAINTS FOR THE DEVELOPMENT OF THE RICE SECTOR IN

RWANDA ..................................................................................................................... 18

2.7.1. Constraints related to rice production ................................................................ 18

2.7.2. Constraints related to marketing of rice ............................................................. 20

2.8. STRATEGIES OF PROMOTING RICE PRODUCTION IN RWANDA ................ 20

CHAPTER III: METHODOLOGY .................................................................................... 23

3.1. INTRODUCTION................................................................................................... 23

3.2. RESEARCH DESIGN ............................................................................................ 23

3.3. PROCESS OF THE STUDY ................................................................................... 23

3.4. THE TYPE OF THE STUDY ................................................................................. 24

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3.5. STUDY POPULATION .......................................................................................... 24

3.6. SAMPLE SIZE ....................................................................................................... 24

3.7. SOURCE OF DATA ............................................................................................... 25

3.8. METHODS OF DATA COLLECTION .................................................................. 25

3.8.1. Questionnaire .................................................................................................... 25

3.8.2. Observation ...................................................................................................... 25

3.9. DATA ANALYSIS ................................................................................................. 25

CHAPTER IV: DISCUSSION OF THE FINDINGS ......................................................... 26

4.1. INTRODUCTION................................................................................................... 26

4.2. PRESENTATION OF THE STUDY AREA ........................................................... 26

4.2.1. Localization ...................................................................................................... 26

4.2.2. Historical perspective of KOAIRWA ................................................................ 26

4.2.3. Objectives of KOAIRWA ................................................................................. 27

4.2.4. Mission statement of KOAIRWA ..................................................................... 27

4.2.5. The administrative organization of KOAIRWA ................................................ 27

4.2.6. KOAIRWA rice production and commercialization .......................................... 27

4.3. ANALYSIS AND INTERPRETATION OF THE FINDINGS ................................ 29

4.3.1. Demographic Characteristics of Respondents ....................................................... 29

4.3.1.1. Distribution of Respondents by sex ................................................................ 29

4.3.1.2. Distribution of Respondents by age ................................................................ 29

4.3.1.3. Distribution of Respondents by marital status................................................. 30

4.3.1.4. Education ....................................................................................................... 31

4.3.1.5. Family size .................................................................................................... 32

4.3.2. Reasons of Farmers to join KOAIRWA ................................................................ 33

4.3.3. Annual Income of Farmers before joining KOAIRWA ......................................... 33

viii

4.3.4. Rice Production and Marketing ............................................................................ 34

4.3.4.1. Field size under rice cultivation...................................................................... 34

4.3.4.2. Rice production in Rwasave marshland .......................................................... 35

4.3.4.3. Relationship between rice production and land size ........................................ 35

4.3.4.4. Annual income from sales .............................................................................. 37

4.3.4.5. Saving ............................................................................................................ 37

4.3.4.6. Economic advantages of growing rice ............................................................ 40

4.3.5. Constraints of Rice Production in Rwasave Marshland ......................................... 41

4.3.6. Strategies of Promoting Rice in Rwasave Marshland ............................................ 41

CHAPTER V: SUMMARY OF THE FINDINGS, GENERAL CONCLUSION AND

RECOMMENDATIONS ................................................................................................... 43

5.1. SUMMARY OF THE FINDINGS .......................................................................... 43

5.2. GENERAL CONCLUSION .................................................................................... 44

5.3. RECOMMENDATIONS ........................................................................................ 44

REFERENCES .................................................................................................................. 46

APPENDIX ....................................................................................................................... 49

APPENDIX 1: “QUESTIONNAIRE FOR SURVEY” ....................................................... 50

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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

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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

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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 self-

administered 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.

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CHAPTER I. GENERAL INTRODUCTION

1.1. BACKGROUND OF THE STUDY

In many developing countries, agriculture is still a major source of employment and income.

Rwanda's economy is mainly based on agriculture. In 2005, approximately 90 percent of the

economically active population was employed in agriculture and a large part of the farmers

had an average size of their land less than 1 hectare per household. Despite government

efforts to encourage migration of labor out of agriculture to relieve pressure on the country’s

severely constrained land resources, agriculture remains by far the main source of

employment. The agricultural sector currently accounts for about 42 percent of GDP in real

terms, (Michael Morris et al., 2008).

Agriculture is the most important sector in the economy of Rwanda in terms of contribution

to GDP, employment, and foreign exchange earnings. Agriculture’s contribution to growth

is even larger when strong multiplier effects are taken into account. Agriculture also

contributes significantly to national food self-sufficiency, as over 90 percent of all food

consumed in the country is domestically produced, (Michael Morris et al., 2008).

The rural incomes come mainly from the sale of food crops, livestock and cash crops.

Unfortunately, it is clear that these last two decades, agricultural production remained

insufficient to meet the needs of the growing population and inducing food insecurity and

increasing poverty levels especially in rural areas where there is hard to find non-agricultural

work, (FAO, Country Information).

It is in this case that the government of Rwanda through MINAGRI identified rice

production as a significant component of the agricultural sector in Rwanda that has high

potential to drive economic growth, (IFAD, 2009).

Rice was introduced in Rwanda in the 1950s with simple trials being made by the Chinese,

through their mission known as “Formose”, in the regions of Bugarama in Cyangugu and

Kabuye. By 1967, significant progress had been made which resulted in the development of

several rice schemes across the country. In 1988, ISAR has initiated a coordinated rice

2

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

3

land degradation by erosion, insufficient exploitation of marshlands and insufficient use of

agricultural inputs. The problem is also due to poor marketing of locally produced rice.

In year 2000, as part of its strategy for growth and poverty reduction, the Government of

Rwanda set a goal to increase per capita income from US$ 230 to US$ 900 and halve the

incidence of poverty by 2020. One of the principal sources of growth in the short to medium

term was the agriculture sector, (Michael Morris et al., 2008).

In order to create a more self-reliant food balance in the country, the government has

developed a strategy to a number of food crops, which include maize, beans, rice, passion

fruits and sweet potatoes. The reason for focusing on these crops is that they are crops which

offer better trade and value added prospects than the traditional food staples, (J.N. Jagwe et

al., 2003).

Rice is one of the major staple crops in Rwanda being targeted and to be promoted. It is used

as cash crop and food crop. Rice crop has become increasingly important in Rwanda and has

recently been targeted by the Ministry of Agriculture in its fight for food security, household

incomes and the enhancement of nutritional standards. The importance of promoting rice

production is to improve economic development and must clearly be exploited.

The strong presence of farmers’ cooperatives enables farmers to collectively access the

inputs such as seeds and natural resources. 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. Public private partnerships in extension services can accelerate the

dissemination of on-farm technologies to farmers. Such endeavours shall increase

productivity levels in rice growing schemes, (MINAGRI, 2011).

Therefore, the aim of the study is to know whether the promotion of rice production is likely

to be the best strategy to improve levels of saving and income for small farmers.

In order to contribute towards economic development and poverty reduction through the

promotion of rice production, I have undertaken the research work entitled “the promotion

4

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.

5

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.

6

CHAPTER II: LITERATURE REVIEW

2.1. INTRODUCTION

This chapter reviews key issues of the existing literature on the topic under study. The study

will relate findings of other scholars on the relationship between rice production and levels

of saving and income in the rural areas of Rwanda. Most aspects to be looked at in this

chapter are: definitions of key concepts and different theories about them, background to

rice production in Rwanda and elsewhere, the performance of rice production and

contribution to farmers’ income, importance of rice production and strategies of promoting

rice production in Rwanda, constraints of rice production in Rwanda.

2.2. DEFINITIONS OF KEY CONCEPTS

2.2.1. Rice

Rice (oryza sativa) is the cereal crops which are grown purposely for food (consumption)

but sometimes it can be grown for sale. It is the most important cereal crop in the developing

world and is the staple food of over half the world’s population. It is generally considered a

semi aquatic annual grass plant, (Oelke et al., 1997).

Rice has many uses and it is used to make various dishes, from the main course to the

desserts. Rice has been cultivated for such countless ages that its origin must always be a

matter for conjecture. Botanists base their evidence of the origin of rice on the habitats of the

wild species, (Grist, 1986).

It is believed that since 10 000 BC, rice was grown in china and southern eastern Asia and

that it is where rice originated. The first crops were observed in China (Hemu Du region)

around 5000 BC. They later appeared in Cambodia, Vietnam and Southern India. From

there, derived species Japonica and Indica expanded to other Asian countries such as Korea,

Japan, Myanmar, Pakistan, Sri-Lanka, Philippines and Indonesia, (Grist, 1986).

7

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 person’s

(personal saving), company’s or institution’s (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.

8

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

world’s 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 world’s 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 People’s 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 producer’s countries in the world (Table 1).

9

Table 1: Top 10 rice producers by country in 2009 (paddy production in tons)

1. China 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

Source: FAOSTAT, 2011

2.3.2. The Rwandan Rice Industry

Rice production has become a significant component of the agricultural sector in Rwanda.

Conforming to Rwandan geographic conditions, rice is grown mostly in inland valley

swamps referred to as marshlands. It has emerged as the most suitable crop for the

marshlands and inland valleys in recent years. Owing to support by the Ministry of

Agriculture and Animal Resources (MINAGRI), the area under rice cultivation in Rwanda

rose from 3 549 ha in the year 2000 to currently about 12 000 ha, all of which is irrigated.

Subsequently, rice production in Rwanda has increased to about 55 000 t in 2007.

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) average yield (t/ha) production (t) Night temperature

(0c )

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

Source: UCORIRWA, 2003

These rice schemes cover nearly 5500 hectares of mainly marshland and were designed to

meet the food needs of the growing urban population.

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 People’s 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.

Source: MINAGRI, 2011

Kagitumba - Muvumba

Kayonza

Kanyonyomba

Ntende

Cyimpima

Gashara

Mwambu

Gitinga

Agasasa

Cyili

Rwasave

Mbazi

Rusuri

Cyarubare

Kajevuba

Muhazi

Mukunguri Shyogwe

Bishya

14

2.5.2. Rice Production trends

Having acknowledged the potential of rice production in marshlands and the trends in

consumer demand, the Government of Rwanda declared rice as a priority crop in 2002.

Government of Rwanda has since invested tremendous amount of resources through several

high profile development projects for the rice sector in the country, (MINAGRI, 2011). As

a result, the total domestic rice production has increased from 11,654 tons in 2000 to about

111,076 tons in 2009 (Table 3). Such a significant increase in rice production was

contributed by the several initiatives taken by MINAGRI in marshland reclamation and

facilitation of inputs to farmers.

Table 3: Rice Production Trends in Rwanda, 2000-2009

Year Paddy production (tons) Area Harvested (Ha) 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

Source: FAOSTAT, 2011

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

Source: MINAGRI, 2011

2.6. RICE MARKETING IN RWANDA

2.6.1. Paddy processing in Rwanda

The original design for the rice schemes in Rwanda was to vertically integrate all the

processes of rice production right from production until the final product ready for

utilization by the consumer. All processes used in paddy processing until the distribution to

the consumer are shown in figure 2.

16

Figure 2: Sequence of postharvest operations.

Source: CHANDLER, 1979

Most of the processing units do act as intermediaries between the producers and the

consumers. They do purchase paddy from the farmers, mill it and sort it and then sell the

milled rice to consumers. Other by-products from the milling process are the broken grain,

the husks and the bran. The bran is usually sold to animal feed manufacturers. The

processing of rice is made easy if the grain is well dried and uniform in size. In cases where

the grain size is not uniform, high broken grain incidences are experienced and the milling

recovery rate lowers, (J.N. Jagwe et al., 2003).

2.6.2. Rice supply channels in Rwanda

In Rwanda, rice is mainly grown through the farmer cooperative schemes set up by the

government. However, some of the population that is not under the membership of the

cooperative scheme may also engage in rice growing. These have been referred to as out

growers in figure 3.

Paddy purchased

from

Cleaning Drying Storage Milling Distribution

Grading Parboiling

By-products

17

Figure 3: Rice marketing channels in Rwanda

2.7. STRATEGIES OF PROMOTING RICE PRODUCTION IN RWANDA

KEY: Major channel

Minor channel

Source: J.N. Jagwe, 2003

Rice produced under the farmer cooperative schemes is centrally processed and the final

product is mainly sold directly to consumers. This is the main rice-marketing channel. Other

channels involve rice from the cooperative scheme being sold to wholesalers who sell it to

retailers and finally to consumers.

Rice cooperative schemes

Wholesalers

Urban & Rural

Retailers

Consumers

Individual households

Schools & Colleges

Hospitals

Prisons

Hotels & Restaurants

Imports

Small-scale processors

Out growers

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

The equitable distribution of water is a major constraint amongst rice growers,

particularly during the dry season and for farmers whose fields are located at the

lower end of a marshland.

Deterioration and destruction of the drainage and irrigation infrastructure. This has

resulted into the silting of canals, deterioration of water catchments points and

destruction of leveled plots set up which lead to poor water control.

The untimely access to good quality seeds has also been reported to limit farmers’

ability to start the season on time and obtain the high yields possible.

There is a very limited research aimed at improving performance of rice in terms of

yield, disease and pest tolerance and good grain characteristics. This result from

inadequate human, technical and financial resources.

Insufficient use of agricultural inputs, both in terms of quality and quantity, resulted

into the degeneration of the input supply chain at a national and local level.

Lack of knowledge on input usage and the high cost of inputs especially inorganic

fertilizers, came out as the reasons for low or no input usage in Rice production in

Rwanda.

Most of the Chinese varieties that have been grown over the last 30 years are less

superior to the newly introduced and the imported varieties such as Basmati and the

Pakistan varieties. The newly introduced and important varieties have better desired

qualitative such as a good aroma, long grain, easier to cook and most are tolerant to

the notorious rice blast disease.

In the absence of a strong extension network, rice growers in Rwanda mostly learn

the production techniques from each other and through self trial and error.

Poor organization of producers to take charge of input supply, field management as

well as maintenance of the various infrastructures for production, handling,

processing and marketing.

20

2.7.2. Constraints related to marketing of rice

There is lack of adequate infrastructure including drying areas, threshers, huskers and stores

which make it difficult to carry out the post harvest management of the crop. This results in

losses in terms of quantity as well as quality of the produce hence less competitively on the

market, (MINAGRI, 2005).

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. The implication of this low

quality is that lower farm gate prices are offered for the locally produced rice hence making

the enterprise less profitable, (MINAGRI, 2011).

For instance, the high post harvest losses (quantity and quality) of harvested grains can

severely limit the profitability and marketability of locally produced rice.

Most of the rice producers are price takers rather than setters and this is due to their urgent

liquidity needs therefore they are usually offered the lowest farm gate prices for their

produce. This greatly reduces the profitability of the enterprise, (J.N. Jagwe et al., 2003).

Most of the rice growers and other stakeholders along the rice value chain are constrained by

the credit availability. This results in the lack of investment capital which limits the

involvement of the private sector, (MINAGRI, 2011).

2.8. STRATEGIES OF PROMOTING RICE PRODUCTION IN RWANDA

Through a number of high profile agricultural development projects, the Ministry of

Agriculture and Animal Resources (MINAGRI) has revamped and rendered several

marshlands to farmers for rice cultivation. The government has also facilitated the delivery

of inputs such as seeds, fertilizers and pesticides, (Kathiresan, 2010).

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. Furthermore, private entrepreneurship in provision of

mechanization services and sourcing of machineries and implements need to be encouraged.

Training of rural artisans, mechanics, technicians and engineers on the usage and

maintenance of farm machineries will improve the adoption of mechanization in rice sector,

(MINAGRI, 2011).

Improved access to finance through diversified loan schemes and increased rural banking

facilities and services that are targeted to farmers, cooperatives, agro-dealers, service

providers and traders in marshlands will speed up the transfer of socio economic benefits

from increased rice production, (MINAGRI, 2011).

23

CHAPTER III: METHODOLOGY

3.1. INTRODUCTION

This chapter presents the methodological approach, the data collection techniques and the

entire process that will be used to conduct the study. It shows the methods that the

researcher will use to collect and analyze the data, the selection of the respondents, and it

further spells out how the information was obtained from respondents, analyzed and

interpreted to enable the researcher to draw logical conclusions.

Kenneth D. Bailley (1978: 83) defines the methodology as the set of methods and principles

that are used when studying a particular kind of work. A method composes all intellectual

process in orderly system or arrangements that enable a researcher to reach an aspect of

knowledge by using various techniques.

Methodological research is controlled by investigation of the theoretical and applied aspects

of measurement, mathematics and statistics, and way of obtaining and analyzing data,

(Kerlinger, Fred N., 1964).

3.2. RESEARCH DESIGN

Christensen (1991: 269); defines research design as an outline, a plan or a strategy

specifying the procedures to be used in investigating the research problem. It is simply the

framework or plan of the study used as a guide in collecting and analyzing data. For the

purpose of the current study the survey method was adopted.

3.3. PROCESS OF THE STUDY

This study will involve both qualitative and quantitative data. The qualitative data are

subjective in nature. Numerical data analysis and statistical tests are objective in nature and

deal with measuring phenomena. For this study, computation of percentages, frequencies

and hypotheses testing will be done.

24

3.4. THE TYPE OF THE STUDY

Survey research was chosen due to the fact that this is an exploratory analytical study on the

assessment of the importance of rice production on levels of saving and income of rice

farmers in Rwanda.

Analytical study is defined as an investigation that seeks to explain in details the

phenomenon. An exploratory research on the other hand, is a study conducted to investigate

a new phenomenon or “old” phenomenon examined for a different perspective.

3.5. STUDY POPULATION

The population under study is the members of KOAIRWA Cooperative. KOAIRWA

Cooperative has 1179 members with 503 women and 676 men, this is a big population that

is the reason a sampling method was used.

3.6. SAMPLE SIZE

According to Dagnelie (1980), without using any mathematic formula, we can confirm that

the precision of results obtained from surveys by questionnaire. The study will be conducted

on a sample of 65 farmers.

The choice of sample size from 1179 farmers was guided by sample size calculator by

Raosoft.Inc (online software that calculates the sample size).

By taking margin of error of 10%, confidence level of 90% (level of significance is 10%)

and the population size of 1179 farmers. Raosoft sample size calculator has given the

recommended sample size of 65 farmers.

Where:

The margin of error is the amount of error that I can tolerate.

The level of significance is the amount of uncertainty I can tolerate.

25

3.7. SOURCE OF DATA

The researcher used both primary and secondary data to carry out the study.

Primary data refers to the information collected specifically for the purpose of the

investigation at hand. This was obtained from selected respondents through individual

interviews at field. The respondents mainly were the members of KOAIRWA selected as

they were seen have much information on rice production.

Secondary data on the other hand is the information not gathered for the immediate study at

hand but some purpose. The source of secondary data includes library books, articles,

journals, published annual reports, and other researches that have been done before.

3.8. METHODS OF DATA COLLECTION

3.8.1. Questionnaire

The information was obtained through a structured questionnaire. The questionnaire

contained both close-ended and open-ended questions. The questionnaires were filled by the

researcher as many rural farmers do not know how to read and write.

3.8.2. Observation

The observation is a method that most commonly involves sight or visual data collection,

and could also include data collection via other senses, such as hearing, touch, or smell. The

use of this method does not preclude simultaneous use of other data gathering techniques.

The researcher used this method by scrutinizing the way respondents answered questions

and attempted to deduce some information from answers provided.

3.9. DATA ANALYSIS

This technique helped to quantify the data from research and to represent them as tables or

graphics which give a good image to readers. The Microsoft word, Microsoft Excel

programs and SPSS 16.0 Program for windows were used in data treatment and then the

interpretations and conclusions.

26

CHAPTER IV: DISCUSSION OF THE FINDINGS

4.1. INTRODUCTION

This chapter presents and discusses the major findings of the study and then interpretations.

This was in due regarding to the objectives of the study. Responses were collected from the

number of sample size and it was believed to be representative enough to allow for

generalization to the place. In the presentation of the finding, statistical tables and

percentages were used to summarize the data.

The data was collected from 65 respondents. The researcher himself collected the data

manually. Various findings were derived from the data collected in relation from the study

objectives. In presentation of the findings, statistical tables and percentages were used to

summarize the data. The study findings are based on the data collected from KOAIRWA

respondents. The analysis was done on the responses of 65 respondents who responded the

questionnaire.

4.2. PRESENTATION OF THE STUDY AREA

4.2.1. Localization

The KOAIRWA cooperative which has been my area of study is located in Huye district, in

the southern province. The main crop cultivated is rice where rice is cultivated in Rwasave

marshland. This cooperative is working on area of 127.1 Ha.

4.2.2. Historical perspective of KOAIRWA

KOAIRWA (Koperative y’Abahinzi b’Igishanga cya Rwasave) was created in 2006 in order

to fight against poverty which was prevalent among farmers around Rwasave marshland but

at that time it was an association with 1080 members with 604 men and 476 women.

KOAIRWA has got the legal personality in 2007, at that time it had also 1080 members of

which 604 were men and 476 were women. At this time, KOAIRWA has 1179 members

with 676 men and 503 women, (KOAIRWA, 2011).

27

4.2.3. Objectives of KOAIRWA

The objectives of KOAIRWA are:

-To fight against poverty of their members.

-To promote rice production in Rwasave marshland.

4.2.4. Mission statement of KOAIRWA

The principal mission of KOAIRWA is to increase quantity and quality of rice production.

Through this mission, the cooperative plays an important role in the socio-economic

development of rural area.

4.2.5. The administrative organization of KOAIRWA

The organs of KOAIRWA are:

-The general assembly which is the supreme organ.

-The executive committee composed by the President, vice-President and the Secretary.

-The supervision council composed by the Coordinator and the Treasurer.

4.2.6. KOAIRWA rice production and commercialization

The KOAIRWA cooperative has now become a big cooperative and plays a great role in the

socio-economic development of small farmers. Rice productivity has been improved with

time and the yield is now estimated at 6.2 t/ Ha whereas the yield was 3t/ Ha in 2006. The

area under rice production is estimated to 127.1 Ha, (KOAIRWA, 2011).

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 Area cultivated (ha) Quantity produced (T) 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

Source: KOAIRWA annual report, 2007, 2008,2009,2010,2011

29

4.3. ANALYSIS AND INTERPRETATION OF THE FINDINGS

4.3.1. Demographic Characteristics of Respondents

In order to know well the characteristics of our respondents, we are going first of all to

present their profiles. Remember that we have 65 members of KOAIRWA who constitute

our sample population.

4.3.1.1. Distribution of Respondents by sex

The figure 4 below shows that the sample was made up of 65 respondents of which 37

(57%) were men and 28 (43%) were women. The difference of men and women is not really

large and it shows that women are also involved in rice production which is very beneficial

to the whole family.

Figure 4: Distribution of Respondents by sex

Source: Primary data

4.3.1.2. Distribution of Respondents by age

According to table 6 below, the majority of farmers have the age between 40 and 50 years

old (26%); the persons of this age have the willingness to work hard in order to increase the

income of their family and they have also more responsibility in the family like the payment

37

57

28

43

0

20

40

60

80

100

120

Frequency Percentage

female

male

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 1.5

[20-30[ 12 18.5

[30-40[ 9 14

[40-50[ 17 26

[50-60[ 14 21.5

>60 12 18.5

Total 65 100

Source: Primary data

4.3.1.3. Distribution of Respondents by marital status

The figure 5 below shows that the majority of respondents are married. They account for

about 65% of the total sample while about 23% of respondents are widows and the

remaining 12% of respondents are single. Therefore the main demographical profile of

respondents is married.

31

Figure 5: Marital status of respondent

Source: Primary data

4.3.1.4. Education

The figure 6 below shows that 85 % of farmers surveyed have attended the primary school

and 9% did not attend the school, and few of them (6 %) have attended secondary school.

This suggests that the majority of rice growers in Rwasave marshland have the primary

school education while others are illiterate; this becomes a very big obstacle for the adoption

of new technologies on rice crop management.

8

42

15 12

65

23

0

10

20

30

40

50

60

70

Single Married Widow

Frequency

Percentage

32

Figure 6: Education level of respondents

Source: Primary data

4.3.1.5. Family size

The results from this study showed that the average size of a family of respondents is

estimated at five members for each household. The families who have the minimum size are

those with one member, these are mostly single persons. The largest family has ten members

(Table 7).

Table 7: Family size of respondents in Rwasave marshland

Family size

Minimum Maximum Mean

1 10 5.26

Source: Primary data

6

55

4 9

85

6

0

10

20

30

40

50

60

70

80

90

illiteracy Primary school Secondary school

Frequency

Percentage

33

4.3.2. Reasons of Farmers to join KOAIRWA

During the survey, the respondents claimed various factors that have pushed them to take

decision of joining KOAIRWA. Figure 7 shows clearly the major reasons of joining

KOAIRWA where 27 respondents (41.5%) have decided to join the cooperative for the

purpose of accessing to agricultural inputs such as fertilizers and pesticides. 26.2% of

respondents decided to join the cooperative to access to the market because the cooperative

provide a reliable and dependable market. 24.6% of respondents have decided to join the

cooperative to get access to the financial services whereas 7.7% of respondents decided to

join this cooperative to get access to farm extension services.

Figure 7: Respondents’ views on the reasons of joining KOAIRWA

Source: Primary data

4.3.3. Annual Income of Farmers before joining KOAIRWA

According to table 8, the results from this study showed that 33 respondents (50.8%) said

that their annual income before joining KOAIRWA was only between 20000 and 50000

Rwf, 19 respondents (29.2%) could only get the amount of money between 0 and 20000

Rwandan francs which is very little, 10 respondents (15.4%) could gain between 50000 and

80000 Rwandan francs and only 3 respondents (4.6%) could have the amount of money

between 80000 and 100000 Rwandan francs.

0

5

10

15

20

25

30

35

40

45

Access to inputs Access to financial services

Access to the market

Access to farm extension services

27

16 17

5

41.5

24.6 26.2

7.7

Frequency

Percentage

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 3 4.6

Total 65 100

Source: Primary data

4.3.4. Rice Production and Marketing

4.3.4.1. Field size under rice cultivation

The figure 8 below shows that the area under rice cultivation for each household in Rwasave

marshland is very small. This study has reported an average field size of 7.7 Ares (770 m2)

per household, and the household who has the smallest field size, has 3 Ares (300 m2) and

the one with the largest field size has 30 Ares (0.3 Ha) for each household. This suggests

that in Rwasave marshland, farmers cultivate rice in plots where the size per plot is

estimated at 5 Ares but there are exceptions of plots with 4 Ares and 3Ares which is the

minimum one.

35

Figure 8: Size of land under rice cultivation

Source: Primary data

4.3.4.2. Rice production in Rwasave marshland

The results from this study showed that the average quantity of rice produced by each farmer

in 2011 for two growing seasons was estimated to 425.3Kg. The lowest quantity produced in

2011 was 100Kg while the highest quantity encountered was 1500Kg (Table 9).

Table 9: Quantity of rice produced by KOAIRWA farmers in 2011

Rice production (Kg)

Minimum Maximum Mean

100 1500 425.3

Source: Primary data

4.3.4.3. Relationship between rice production and land size

The table 10 illustrates an empirical analysis of the relationship rice production and size of

land cultivated.

3 7.7

30

0

5

10

15

20

25

30

35

Minimum Mean Maximum

Farm size in ares

Farm size in ares

36

Table 10: OLS estimates of rice production in Rwasave marshland

Coefficients

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

95% Confidence Interval

for B

B Std. Error Beta

Lower

Bound Upper Bound

(Constant) 22.300 25.830 .863 .391 -29.317 73.918

Farm size in Ares 52.290 2.879 .916 18.164 .000 46.538 58.043

Dependent Variable: Rice production (kg)in 2011

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

.916 .840 .837 106.610

Source: Primary data

Yi= 22.3 + 52.29xi + i

r2

= 0.84

Where Yi= Rice production (Kg)

Xi= Farm size in Ares (000m2)

i= Error term

The simple regression analysis gives a positive effect of farm size on rice production. There

was an estimated increase of 52.29Kg in average rice production resulting from 1 Are

(100m2) increase in the size of the land cultivated. The r

2 value of 0.84 means that about 84

percent of the variation in rice production is explained by land size. Since r2 can at most be

1, the observed r2 suggests that the sample regression line fits the data very well.

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

Source: Primary data

4.3.4.5. Saving

a) Bank account

The figure 10 below shows that a hundred percent of respondents have a bank account. This

suggests that during the survey, all members KOAIRWA have agreed that they have a bank

account in SACCO UMURENGE and it is where they are paid after supplying their

production to the cooperative.

30000

127371

450000

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

Minimum Mean Maximum

Annual income(Rwf) in 2011

38

Figure 10: Members of KOAIRWA who have bank account

Source: Primary data

b) Level of saving

The table 11 below shows that 90.8% of respondents said that they can now save each

month the amount of money between 0 and 5000 Rwandan francs and only 9.2% of

respondents can now save each month the amount of money between 5000 and 15000

Rwandan francs. It is very important to mention that no respondent can save 15000Rwf and

more. This level of saving suggests that farmers can pay themselves the health insurance of

the whole family.

Table 11: Monthly level of saving after joining KOAIRWA

Monthly saving Frequency Percentage

0-5000Rwf 59 90.8

5000-15000Rwf 6 9.2

15000Rwf and more 0 0

Total 65 100

Source: Primary data

0

20

40

60

80

100

Frequency Percentage

65

100

0 0

Yes

No

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

Source: Primary data

d) The use of loans

The table 12 below shows that 87.5% of respondents, who have taken the loan during the

last five years, use it for the investment in rice production whereas the remaining 12.5% use

it for consumption. This suggests that few farmers, who have taken the loan in the last five

years, have mostly used the investment in rice production.

0

10

20

30

40

50

60

70

80

90

Frequency Percentage

8 12.3

57

87.7

Yes

No

40

Table 12: The use of loan for those who have taken it

Use of loans Frequency Percentage

Consumption 1 12.5

Investment 7 87.5

Total 8 100

Source: Primary data

4.3.4.6. Economic advantages of growing rice

The figure 12 below shows that about 84.6% of respondents have gained enough income

from rice production, 9.2% of respondents said that rice production has improved their level

of saving and 6.2% of respondents have agreed that rice production can be taken as a facility

of getting credit. According to this study, rice production has a major importance to the

economic development of KOAIRWA members.

Figure 12: Economic advantages of growing rice

Source: Primary data

55

6 4

84.6

9.2 6.2

0

10

20

30

40

50

60

70

80

90

Gain enough income Be able to save Facility of getting credit

Frequency

Percentage

41

4.3.5. Constraints of Rice Production in Rwasave Marshland

Rice growers from Rwasave marshland were requested during the survey to reveal various

constraints faced at production and marketing of rice in their marshland. The major

constraints identified by farmers were as follow:

Farmers are not paid at time for their production delivered to the cooperative and this

has been reported to limit farmers’ ability to start the season on time.

Small area for paddy drying and inadequate storage facilities.

Lack of factory for paddy processing.

The inequitable distribution of water among rice fields, particularly during the dry

season and for farmers whose fields are located at the lower end of the marshland,

this is also related to poor maintenance of the water supply infrastructures.

Inadequate market and the low price for the paddy rice.

The cooperative does not give credit easily to their members and this causes the

problem of poor investment.

Lack of assistance by the cooperative in paddy processing particularly in rice

milling.

High cost of inputs like fertilizers and labor.

4.3.6. Strategies of Promoting Rice in Rwasave Marshland

During the survey, rice growers in Rwasave marshland have proposed various strategies that

their cooperative should put in action in order to overcome those constraints they usually

face in the production and marketing of rice. The major strategies proposed by farmers were

as follow:

The management of cooperative should pay at time their members after the delivery

of the production. Furthermore they should give them better prices.

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

CHAPTER V: SUMMARY OF THE FINDINGS, GENERAL CONCLUSION AND

RECOMMENDATIONS

5.1. SUMMARY OF THE FINDINGS

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. The study was mainly based on data from

65 members of KOAIRWA located in Huye District, Southern Province.

Farmers have decided to join the cooperative of rice production (KOAIRWA) to get access

to inputs, in order to increase their rice productivity. This study has shown that the rice

production has contributed significantly to the increase of annual income of farmers

compared to the income they gained before starting to cultivate rice.

The level of saving has been improved resulting from the fact that all farmers have a bank

account. Farmers have found various economic advantages from growing rice such as; the

increase of income, the increase of savings, the facility of getting credit and hence the

economic development of farmers.

Although farmers have clearly improved their level of saving and income, they still face

various constraints in their production and marketing such as inequitable distribution of

water among rice fields, small area for paddy drying and inadequate storage facilities; lack

of factory for paddy processing; inadequate market and the low price for the paddy rice; the

untimely payment of farmers; lack of credits for farmers, etc.

Farmers have suggested some strategies to overcome those constraints such as the

maintenance and construction of water supply systems enlargement of areas for paddy

drying and the building of new performing storage facilities; the building of factory for

paddy processing; the payment at time in order to start the season on time; facilitation to get

credit easily, etc.

44

5.2. GENERAL CONCLUSION

The aim of this study was to identify the contribution of rice production on levels of saving

and income of farmers in Rwasave marshland, Huye District. It was found that rice

productivity in Rwasave has increased from 3t/Ha in 2006 to 6.2t/Ha in 2011 and most of

this increment was due to inputs access and more extension services from their cooperative.

Furthermore, 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.

Although KOAIRWA was created to fight against poverty which was prevalent among

farmers around Rwasave marshland, this cooperative has managed to achieve its set

objective. In this regard, KOAIRWA has played an important role in the improvement of

levels of saving of their members because the results from the study have shown that all

members have a bank account and with their levels of saving, they have been able to pay

themselves the school fees of their children and the health insurance of the whole family.

Therefore, rice production in Rwasave marshland through the organization of farmers in

KOAIRWA cooperative has contributed significantly to poverty reduction and socio-

economic development of farmers.

5.3. RECOMMENDATIONS

The following recommendations were made in order to promote rice production in Rwanda

in general:

Due to scarce land resource, the government of Rwanda through MINAGRI should

put more and more effort in rice production because it is expected to give high yield

per unit area and it generates more income to rural farmers, and also it provides a

sustainable food security.

Traditional farmers should be encouraged to adopt modern crop production and

management practices including efficient use of improved crop varieties and

fertilizers as well as pesticides for the purpose of improving their productivity.

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 socio-

economic 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. Théories et méthodes 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.

B. DISSERTATIONS, REPORTS AND JOURNALS

AMIS RWANDA, 2010. National Rice Production Program (period 2006-2016)

Eugène Bagumire, 2005. The impact of rice cultivation on rural livelihoods. Case study of

rice production in Muvumba District.

FAO, 2006. Handbook on rural households’ livelihood and well-being

FAO, 2002. The development and use of integrated crop management for rice production

IFAD, January 2009. Making Rice a Cash Cow in Rwanda.

IRRI, 1993. International rice research Institute. P.O.Box 933, 1099 Manila, Philipines.

ISAR, 2003. Presentation of ISAR Rice research program, Rubona.

Kayiranga Didace, 2006. The effect of land factors and management practices on rice yields.

Case study in Cyili inland valley, Gikongo Ditrict, Rwanda, Thesis Rubona. 5-17p.

MINAGRI, 2005. National Rice Production Program (period 2006-2016).

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 coopératives 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

APPENDIX 1: “QUESTIONNAIRE FOR SURVEY”

Questionnaire No

Name of interviewer

Date of interview

Cell

Sector

District

Province

I. INTERVIEWEE IDENTIFICATION

1. Sex: Male Female

2. Age: ………….

3. Marital status:

4. Education level:

Single

Married

Widow

Illiterate (No education)

Primary school

Secondary school

University

51

5. Number of people in your family: …………

II. Rice production and marketing

1. What is the size of your farm under rice cultivation?

0 – 0.5 ha 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= 6–10 years; 3= 11–15 years; 4= 16–20 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

7. Quantity of rice produced and sold from 2007 to 2011

Year Quantity harvested Quantity sold Market price/ kg Annual income

from sales

2007

2008

2009

2010

2011

8. Do you have a bank account or an account in any financial institution?

1=yes; 2=no

9. Did you take a loan?

Source of money (Borrowed

from)

Amount borrowed in 2010 Amount borrowed in 2011

10. What was the use of your loan?

1=consumption; 2=investment; 3=income generating activities

Other, specify ……………………………………………………………………………

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

16. What are the constraints do you face in rice production? …………………………………

…………………………………………………………………………………………………

…………………………………………………………………………………………………

17. What are the strategies to put in place in order to overcome those constraints?

…………………………………………………………………………………………….......

…………………………………………………………………………………………………