Synopsis: Crop commercialization in Rwanda: Current market participation and drivers

As Rwanda emerges from the effects of COVID-19 and global price shocks caused by the Russia/Ukrainian conflict, there is an opportunity to focus on agricultural fundamentals to drive its economic transformation. One aspect of the transformation is how farm households are engaging in crop commerciali...

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Autores principales: Warner, James, Benimana, Gilberthe Uwera, Mugabo, Serge, Ingabire, Chantal
Formato: Brief
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2024
Materias:
Acceso en línea:https://hdl.handle.net/10568/141779
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author Warner, James
Benimana, Gilberthe Uwera
Mugabo, Serge
Ingabire, Chantal
author_browse Benimana, Gilberthe Uwera
Ingabire, Chantal
Mugabo, Serge
Warner, James
author_facet Warner, James
Benimana, Gilberthe Uwera
Mugabo, Serge
Ingabire, Chantal
author_sort Warner, James
collection Repository of Agricultural Research Outputs (CGSpace)
description As Rwanda emerges from the effects of COVID-19 and global price shocks caused by the Russia/Ukrainian conflict, there is an opportunity to focus on agricultural fundamentals to drive its economic transformation. One aspect of the transformation is how farm households are engaging in crop commercialization. This policy note outlines basic findings and suggested recommendations derived from a 2022 Rwandan commercialization household survey. Our basic unit of analysis is total crop sold divided by total value produced, averaged at either the household or individual crop level. Key findings include:  Approximately 20% of our sampled smallholder households do not sell any crops. However, contrary to a subsistence/commercial farm dichotomy, most households sell on a broad continuum ranging from 1 – 100% with an average of 33% of their total crop production marketed.  Crop value per hectare increases with greater marketed sales, indicating that farmers switch from lower value food crops (e.g. beans, cassava, maize) to cash crops such as fruits and vegetables where they market higher percentages.  Crop value per hectare is not correlated with land size, revealing that crop choices drive value and not increasing land-related economies of scale. This finding underscores the pivotal role of crop selection in determining agricultural productivity and economic returns, rather than mere expansion of land holdings.  Irrigation, land size, hiring labor and input purchases increase market participation as well as percentage of sales. Conversely, a larger family size has a negative effect on both.
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spelling CGSpace1417792025-12-08T09:54:28Z Synopsis: Crop commercialization in Rwanda: Current market participation and drivers Warner, James Benimana, Gilberthe Uwera Mugabo, Serge Ingabire, Chantal agriculture commercialization food crops markets cash crops food security income surpluses As Rwanda emerges from the effects of COVID-19 and global price shocks caused by the Russia/Ukrainian conflict, there is an opportunity to focus on agricultural fundamentals to drive its economic transformation. One aspect of the transformation is how farm households are engaging in crop commercialization. This policy note outlines basic findings and suggested recommendations derived from a 2022 Rwandan commercialization household survey. Our basic unit of analysis is total crop sold divided by total value produced, averaged at either the household or individual crop level. Key findings include:  Approximately 20% of our sampled smallholder households do not sell any crops. However, contrary to a subsistence/commercial farm dichotomy, most households sell on a broad continuum ranging from 1 – 100% with an average of 33% of their total crop production marketed.  Crop value per hectare increases with greater marketed sales, indicating that farmers switch from lower value food crops (e.g. beans, cassava, maize) to cash crops such as fruits and vegetables where they market higher percentages.  Crop value per hectare is not correlated with land size, revealing that crop choices drive value and not increasing land-related economies of scale. This finding underscores the pivotal role of crop selection in determining agricultural productivity and economic returns, rather than mere expansion of land holdings.  Irrigation, land size, hiring labor and input purchases increase market participation as well as percentage of sales. Conversely, a larger family size has a negative effect on both. 2024-05-08 2024-05-08T19:59:18Z 2024-05-08T19:59:18Z Brief https://hdl.handle.net/10568/141779 en https://hdl.handle.net/10568/141718 Open Access application/pdf International Food Policy Research Institute Warner, James; Benimana, Gilberthe; Mugabo, Serge; and Ingabire, Chantal. 2024. Synopsis: Crop commercialization in Rwanda: Current market participation and drivers. Rwanda SSP Policy Note 11. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/141779
spellingShingle agriculture
commercialization
food crops
markets
cash crops
food security
income
surpluses
Warner, James
Benimana, Gilberthe Uwera
Mugabo, Serge
Ingabire, Chantal
Synopsis: Crop commercialization in Rwanda: Current market participation and drivers
title Synopsis: Crop commercialization in Rwanda: Current market participation and drivers
title_full Synopsis: Crop commercialization in Rwanda: Current market participation and drivers
title_fullStr Synopsis: Crop commercialization in Rwanda: Current market participation and drivers
title_full_unstemmed Synopsis: Crop commercialization in Rwanda: Current market participation and drivers
title_short Synopsis: Crop commercialization in Rwanda: Current market participation and drivers
title_sort synopsis crop commercialization in rwanda current market participation and drivers
topic agriculture
commercialization
food crops
markets
cash crops
food security
income
surpluses
url https://hdl.handle.net/10568/141779
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AT ingabirechantal synopsiscropcommercializationinrwandacurrentmarketparticipationanddrivers