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NATIONAL UNIVERSITY OF RWANDA

FACULTY OF AGRICULTURE
DEPARTMENT OF AGRICULTURAL ECONOMICS AND
AGRIBUSINESS
ACADEMIC YEAR: 2011-2012
THE PROMOTION OF RICE PRODUCTION AS A SOLUTION TO
THE LOWER LEVELS OF SAVING AND INCOME IN THE
RURAL AREAS OF RWANDA.
CASE STUDY: KOAIRWA COOPERATIVE
STUDY PERIOD: 2007-2011

dissertation

submitted

Agriculture

as

to

partial

the

faculty

of

fulfillment

of

requirements for the award of the Bachelors


degree with honours in Agricultural Economics
and Agribusiness.
By NGANGO Jules

SUPERVISOR: Mr. HABIMANA Kizito, Msc

Huye, June 2012

DECLARATION
I, NGANGO Jules, hereby declare that, the work presented in this dissertation entitled
THE PROMOTION OF RICE PRODUCTION AS A SOLUTION TO THE LOWER
LEVELS OF SAVING AND INCOME IN THE RURAL AREAS OF RWANDA: Case
Study of KOAIRWA Cooperative is my original work and has never been presented
elsewhere for any academic award.
All consulted references have been systematically presented in references.
Signature: .........................
NGANGO Jules
Date: .................................

ii

DEDICATION

I dedicate this Dissertation to:


Almighty God,
My parents,
My entire family,
And
Friends.

iii

ACKNOWLEDGEMENT
I am greatly indebted to Mr. HABIMANA Kizito for undertaking the tasks of supervising
this work, his willingness, guidance and assistance to identify in this research. I gained a
tremendous amount of knowledge under his supervision.
I am deeply indebted to the Government of Rwanda for providing funds for my studies. A
special word of appreciation goes out to the National University of Rwanda through the
faculty of Agriculture; I admire your advices, knowledge provided, favorable learning
environment and cooperation during my studies at University.
Special thanks go to the entire management of KOAIRWA for providing the required
information. Without the cooperation and involvement of the farmers at Rwasave
marshland, this work would have gone nowhere. You have taught me a lot about rice. Thank
you also for embracing new things. Your patience in answering my numerous questions and
willingness to work with me on the field is well appreciated.
I express again my gratitude and thanks to my father MUGEMANGANGO Andr and my
mother NYIRABAGABE Jacqueline for your love, your encouragement, advices and
support during my studies. Special recognition also goes to my sisters MUKAMUGEMA
Alice, MUGEMA Julie and MUKANGANGO Juliette for their encouragement and support.
Finally, I am grateful to all my colleagues and all students of the faculty of agriculture for
their moral support during the four years of my studies at National University of Rwanda.
May God bless you all!

iv

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 yAbahinzi bIgishanga 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

: tonne

UCORIRWA
%

: Union des Coopratives Rizicoles au Rwanda


: Percent

TABLE OF CONTENTS

DECLARATION.................................................................................................................. i
DEDICATION .................................................................................................................... ii
ACKNOWLEDGEMENT .................................................................................................. iii
LIST OF SYMBOLS, ABBREVIATIONS AND ACRONYMS ......................................... iv
TABLE OF CONTENTS..................................................................................................... v
LIST OF TABLES ............................................................................................................. ix
LIST OF FIGURES ............................................................................................................. x
ABSTRACT ....................................................................................................................... xi
CHAPTER I. GENERAL INTRODUCTION ...................................................................... 1
1.1. BACKGROUND OF THE STUDY .......................................................................... 1
1.2. PROBLEM STATEMENT........................................................................................ 2
1.3. RESEARCH QUESTIONS ....................................................................................... 4
1.4. HYPOTHESES ......................................................................................................... 4
1.5. OBJECTIVES OF THE STUDY ............................................................................... 4
1.5.1. General Objective ............................................................................................... 4
1.5.2. Specific objectives .............................................................................................. 4
1.6. SCOPE OF THE STUDY.......................................................................................... 5
1.7. SIGNIFICANCE OF THE STUDY ........................................................................... 5
1.8. ORGANISATION OF THE STUDY ........................................................................ 5
CHAPTER II: LITERATURE REVIEW ............................................................................. 6
2.1. INTRODUCTION..................................................................................................... 6
2.2. DEFINITIONS OF KEY CONCEPTS ...................................................................... 6
2.2.1. Rice .................................................................................................................... 6

vi

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

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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

ix

LIST OF TABLES

Table 1: Top 10 rice producers by country in 2009 (paddy production in tons) .................... 9
Table 2: Area, average yield, rice production and night temperatures for each rice scheme. 12
Table 3: Rice Production Trends in Rwanda, 2000-2009.................................................... 14
Table 4: Total Milled Rice Production ('000 t) ................................................................... 15
Table 5: KOAIRWA rice production and commercialization ............................................. 28
Table 6: Age group of respondents in Rwasave marshland ................................................. 30
Table 7: Family size of respondents in Rwasave marshland ............................................... 32
Table 8: Annual income before joining KOAIRWA .......................................................... 34
Table 9: Quantity of rice produced by KOAIRWA farmers in 2011 ................................... 35
Table 10: OLS estimates of rice production in Rwasave marshland ................................... 36
Table 11: Monthly level of saving after joining KOAIRWA .............................................. 38
Table 12: The use of loan for those who have taken it ........................................................ 40

LIST OF FIGURES
Figure 1: Map of Rwanda showing the major Rice growing areas. ..................................... 13
Figure 2: Sequence of postharvest operations..................................................................... 16
Figure 3: Rice marketing channels in Rwanda ................................................................... 17
Figure 4: Distribution of Respondents by sex ..................................................................... 29
Figure 5: Marital status of respondent ................................................................................ 31
Figure 6: Education level of respondents ........................................................................... 32
Figure 7: Respondents views on the reasons of joining KOAIRWA ................................. 33
Figure 8: Size of land under rice cultivation ....................................................................... 35
Figure 9: Annual income (Rwf) from sales in 2011 ............................................................ 37
Figure 10: Members of KOAIRWA who have bank account.............................................. 38
Figure 11: Members of KOAIRWA who have taken a loan in the last five years ............... 39
Figure 12: Economic advantages of growing rice ............................................................... 40

xi

ABSTRACT
Rice consumption in Rwanda is on the rise due to the increase in urbanization and
population growth. Much of the rapidly growing demand for rice in Rwanda will be met
from increased rice production in irrigated marshland, which covers about 1.2 % of the total
arable land. Therefore, rice production in Rwanda should be promoted through various
strategies such as extension of cultivable area of marshlands, construction and maintenance
of the water supply systems to permit exploitation of the cultivable areas through the two
growing seasons.
This study has examined the promotion of rice production as a solution to the lower levels of
saving and income in the rural areas of Rwanda. Case study of KOAIRWA Cooperative
with study period: 2007-2011. The study was mainly based on data from 65 members of
KOAIRWA located in Huye District, Southern Province.
The study had two main specific objectives: To analyze the constraints of rice production in
Rwanda and to identify the strategies of promoting rice production in Rwanda in general.
The researcher adopted quantitative and qualitative methods of data collection through selfadministered questionnaire, interview guides and library search.
Findings from the study seem to indicate that rice production has contributed significantly to
the increase of income for farmers through the sale of their production, thus the sale of rice
production has contributed to the food security of the Rwandan population living in Huye
District. Furthermore, the establishment of KOAIRWA has contributed a lot to the
promotion of welfare of the members such as the increase of income, the improvement of
savings, and access to health services and the payment of school fees of their children.
After analyzing and interpreting the data, recommendations and suggestions on what to be
implemented by the government and the farmers cooperative of rice were highlighted in
order to increase the levels of saving and income in the rural areas of Rwanda.

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 countrys
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. Agricultures 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

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

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

of rice production as a solution to the lower levels of saving and income in the rural areas of
Rwanda.
1.3. RESEARCH QUESTIONS
1. What are the strategies of promoting rice production in Rwanda?
2. What are the constraints of rice production in Rwanda?
3. What are the effects of rice production on levels of saving and income in the rural areas of
Rwanda?
1.4. HYPOTHESES
1. There are various strategies of promoting rice production in Rwanda such as extension of
cultivable area of marshlands, construction and maintenance of the water supply systems to
permit exploitation of the cultivable areas, etc.
2. Rice production encounters various constraints such as insufficient availability of water in
rice fields, insufficient use of agricultural inputs, poor post harvest.
3. Rice production contributes to the improvement of levels of saving and income for the
members of KOAIRWA Cooperative.
1.5. OBJECTIVES OF THE STUDY
1.5.1. General Objective
The general objective of this study is to analyze the contribution of rice production on levels
of saving and income in the rural areas of Rwanda.
1.5.2. Specific objectives
1. To identify the strategies of promoting rice production in Rwanda in general.
2. To analyze the constraints of rice production in Rwanda.
3. To investigate the role of KOAIRWA cooperative in the improvement of levels of saving
and income of rice farmers in Rwasave marshland, Huye district.

4. To investigate the challenges being faced by rice farmers in Rwasave marshland; suggest
solutions and recommendations to challenges.
1.6. SCOPE OF THE STUDY
Due to limited time and financial means, this research will be concerned with rice farmers of
KOAIRWA cooperative in Rwasave marshland, Huye district as a representative sample of
all rice farmers in Rwanda. This will help to collect more data from field and to obtain
reliable results. Study period (2007-2011) will be taken in this research.
1.7. SIGNIFICANCE OF THE STUDY
This study will represent findings reflecting the contribution of rice production on levels of
saving and income in the rural areas and the role of cooperatives in improving levels of
saving and income of rice farmers in Rwanda.
This is valuable to rural dwellers, policymakers and donor community in determining and
implementing policy that promote rice production in all available marshland thus developing
rural economy.
1.8. ORGANISATION OF THE STUDY
This study is divided into five chapters: The first chapter is the general introduction; it gives
the background of the study, the statement of the problem, research questions, hypotheses,
and objectives of the study, scope of the study and the significance of the study.
The second chapter is the literature review, which describes generally the major concepts of
the topic and other work related to the study. It gives an overview of rice production in
general and the Rwandan rice in particular.
The third chapter is entitled Methodology, it presents methods and techniques used in data
collection, process of the study and the sample size.
The fourth chapter focuses on data analysis interpretation of the results; it shows the
findings of this work and the suggestions comparatively to the previous works.
The last chapter is conclusion and recommendations.

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 worlds 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).

2.2.2. Production
Business dictionary defines production as the processes and methods employed to transform
tangible inputs (raw materials, semi finished goods, or subassemblies) and intangible inputs
(ideas, information, knowledge) into goods or services.
Production is the process of the creation of goods and services aimed at satisfying the wants
of individuals (private wants) or groups (public wants), (Bagumire, 2005).
2.2.3. Income
One approach sees income as a reward that the owners of fixed factors of production receive
as a result of allowing their land, capital and labor to take part in production. The other sees
income as the flow of resources that households receive that may be spent on consumption
and on saving, (FAO, 2004).
According to Mc Connell Brue (2002), income is a flow of dollars (or purchasing power)
per unit of time derived from the use of human or property resources.
Michael Parkin et al. (1939), define income as the amount received by households in
payment for the services of factors of production.
2.2.4. Saving
According to Richard et al. (1991:68), economists define saving as the part of after-tax
income which is not consumed. Hence, households have two choices with their disposable
income either to consume or to save.
Christopher, Pass et al. (1988:484), state that, saving is the proportion of a persons
(personal saving), companys or institutions (retained profits) income that is not spent on
current consumption. They say, saving is typically placed on deposit with bank, saving
society, etc, or used to acquire financial and physical assets such as shares or plant.
In his study, William (1989:4), it is generally argued that, saving may be thought of as
current period resources or productions that are not consumed in the current period but
rather are made available for future consumption.

Mc Connell Brue (2002), define saving as the disposable income not spent for consumer
goods; equal to disposable income minus personal consumption expenditure.
2.3. OVERVIEW OF RICE INDUSTRY
2.3.1. Global Rice Industry
Rice is one of the most important staple foods in the world. Rice has become the second
most important cereal in the world after wheat in terms of production, due to a recent decline
in maize production, (Jones, 1995). It is widely cultivated throughout the tropics; and where
flood controls are effective as in South-east Asia, production is high. Over 50 percent of the
worlds population depends on rice for about 80 percent of their food requirements. About
95 percent of the global output of rice is produced and consumed in developing countries,
(Van Nguu Nguyen, 2000).
Rice is grown on about 158 million hectares. It is especially important in Asia where
approximately 90% of the worlds rice is grown. The annual global production is about 678
million tons of paddy rice, of which 90% of the total was produced by Asian farmers, with
two countries, the Peoples Republic of China (including Taiwan) and India, producing 55%
of the total crop, (FAOSTAT, 2011).
Today, there are 111 countries in the world producing rice, these include Asians countries,
most countries in west Africa, some countries in central and East Africa, most of central
American countries, Australia and a few states in the United States of America, (Choudhury,
2005). Top ten rice producers countries in the world (Table 1).

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
(0 c )

Bugarama

1200

6.4

7600

15-20

Muvumba

460

5.0

2300

10-15

Rwamagana

729

4.6

3353

< 10

Ngenda

385

4.5

1732

10-15

Cyunuzi

250

4.0

1000

----

Butare

2017

3.7

7463

10-15

Mukunguri

300

1.8

540

< 10

Kabuye

172

1.8

310

10-15

Total

5513

24598

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 Peoples Republic of Korea participated in the Rice development program
and in Butare, the American government through ACDI / VOCA has contributed financially
towards the construction of hydro agricultural infrastructure of some of the rice schemes
managed by CODERVAM, (J.N. Jagwe et al., 2003).
Figure 1: Map of Rwanda showing the major Rice growing areas.

Kagitumba - Muvumba

Ntende
Kayonza
Kanyonyomba
Muhazi

Cyimpima
Gitinga

Bishya

Mukunguri

Kajevuba
Gashara
Shyogwe

Cyarubare
Rusuri
Mbazi
Agasasa
Cyili
Rwasave

Source: MINAGRI, 2011

Mwambu

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.


Paddy purchased
from

Cleaning

By-products

Drying

Grading

Storage

Milling

Distribution

Parboiling

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.

17

Figure 3: Rice marketing channels in Rwanda


Out growers

Rice cooperative schemes

Wholesalers

Small-scale processors

Imports

Urban & Rural


Retailers

Consumers
Individual households
Schools & Colleges
Hospitals
Prisons
Hotels & Restaurants
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.

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 yAbahinzi bIgishanga 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
120

100
80

43
female

60
28

male

40
57
20

37

0
Frequency

Percentage

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

30

of school fees of the children, health insurance, etc. 21.5% of respondents have the age
between 50 and 60 years old. Similarly, they still have more responsibility in their family as
stated above.
Table 6: Age group of respondents in Rwasave marshland
Age group

Number of respondent

Percentage

<20

1.5

[20-30[

12

18.5

[30-40[

14

[40-50[

17

26

[50-60[

14

21.5

>60

12

18.5

Total

65

100

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


70

65

60

50
42
40
Frequency
30

Percentage
23

20

15

12
10

Single

Married

Widow

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.

32

Figure 6: Education level of respondents


90

85

80
70
60

55

50
Frequency

40

Percentage

30
20
10

9
4

0
illiteracy

Primary school

Secondary school

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

10

5.26

Source: Primary data

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

41.5

45
40
35

30

27

25
16

20

26.2

24.6
17

Frequency
Percentage

15
10

7.7

5
0
Access to inputs

Access to
financial
services

Access to the
market

Access to farm
extension
services

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.

34

It is very important to mention that no respondent can gain hundred thousand Rwandan
francs and more, the results show clearly that the annual income of farmers before joining
KOAIRWA was very low and consequently they could not pay themselves the health
insurance of the whole family and the school fees of their children.
Table 8: Annual income before joining KOAIRWA
Annual income

Frequency

Percentage

0-20000Rwf

19

29.2

20000-50000Rwf

33

50.8

50000-80000Rwf

10

15.4

80000-100000Rwf

4.6

Total

65

100

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

Farm size in ares


35
30
25
20
15

30

Farm size in ares

10
5

7.7
3

0
Minimum

Mean

Maximum

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.

36

Table 10: OLS estimates of rice production in Rwasave marshland


Coefficients
Unstandardized

Standardized

95% Confidence Interval

Coefficients

Coefficients

for B
Lower

Model

B
(Constant)

Std. Error

Beta

22.300 25.830

Farm size in Ares 52.290 2.879

.916

Sig. Bound

Upper Bound

.863

.391 -29.317

73.918

18.164 .000 46.538

58.043

Dependent Variable: Rice production (kg)in 2011


Model Summary
Adjusted
Model R
.916

R Std. Error of the

R Square Square

Estimate

.840

106.610

.837

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 r2 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 ts 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

Annual income(Rwf) in 2011


500000
450000
400000
350000
300000
250000
200000
150000
100000
50000
0

450000

127371
30000
Minimum

Mean

Maximum

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.

38

Figure 10: Members of KOAIRWA who have bank account

100
100
80

65
Yes

60

No

40
20

0
Frequency

Percentage

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

9.2

15000Rwf and more

Total

65

100

Source: Primary data

39

c) Loan taking
The figure 11 below illustrates the number of KOAIRWA members who have taken a loan
and those who have not taken the loan in the last five years. This figure shows that only
12.3% of respondents have taken a loan during the last five years whereas the remaining
87.7% of respondents have not taken any loan during the last five years. The logic behind
this is that most farmers rely on their cooperative as a source loan and they have said that the
management of cooperative does not give the loan easily for the reasons of lack of money.
Figure 11: Members of KOAIRWA who have taken a loan in the last five years

87.7
90
80
70
60
50
40
30
20
10
0

57
Yes
No
8

Frequency

12.3

Percentage

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.

40

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

Frequency

Percentage

Consumption

12.5

Investment

87.5

Total

100

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
84.6

90
80
70
60

55

50

Frequency

40

Percentage

30
20
6

10

9.2

6.2

0
Gain enough income

Source: Primary data

Be able to save

Facility of getting credit

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 socioeconomic 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 socioeconomic benefits from rice production.

46

REFERENCES
A. TEXTBOOKS
A.Kathiresan, 2010. Mapping of Poverty Reduction Strategy Papers (PRSPs), sector
strategie and policies related to rice development in Rwanda. 7-9p.
Chandler Robert F., 1979. Rice in the tropics: A guide of development of national programs,
USA. West view press. Inc. Colorado.
Choudhury I., 2005. Environmental status Evaluation of agroecosystem of South 24
Paraganas Districts, West Bengal using remote sensing and GIS Techniques, Nadia,
West Bengal, India.
Christensen, Larry B., 1991. Experimental methodology. 269p.
Dagnelie P., 1980. Thories et mthodes statistiques. II. Applications agronomiques.
Gembloux, Belgique : Les Presses agronomiques de Gembloux, 463 p.
Grist D.H., 1986. Rice 6th Edition. Longman, London and New York.
J.N.Jagwe, G. Okoboi, P. Hakizimana, J. Tuyisinge, and M. Rucibigango, 2003. Marketing
Survey of the Rice sub-sector in Rwanda. 8-12p.
Jones, R.A.D., I.C. Mahapatra and S.A. Raymundo, 1995. Rice research in Sierra Leone.
Kenneth D. Bailley, 1978. Methods of social research, 83p.
Kerlinger, Fred N., 1964. Foundations of behavioral research; educational and
psychological inquiry, 700p.
Kipps M.S., 1970. Production of field crops 6th Edition, McGraw-Hill, New York.
Wigginton. 335-346p.
Mc Connell Brue, 2002. Macroeconomics.

47

Michael Morris, Liz Drake, Kene Ezemenari and Xinshen Diao, 2008. Promoting
sustainable pro-poor growth in Rwandan agriculture. 1-2p.
Michael Parkin, Robin Bade, 1939. Macroeconomics.
Oelke E.A, RA Porter, AW Grombacher, and PB Addis, 1997. Wildrice-new interest in an
old crop cereal foods world 42. 234-247p.
Pass, Christopher; Lowes, Bryan and Robinson, Andrew (1988). Business and
Macroeconomics.
Richard G., Andy Lipsey (1991). Economics, 7th Edition HarperCollins publishers Inc.New
York.
William H., Branson, 1989. Macroeconomics: theory and policy.

B. DISSERTATIONS, REPORTS AND JOURNALS


AMIS RWANDA, 2010. National Rice Production Program (period 2006-2016)
Eugne 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 coopratives et associations rizicoles. Rapport
final, Kigali.
Van Nguu Nguyen, 2000. FAO Rice Information Volume 2

C. ELECTRONIC SOURCES
FAOSTAT, 2011. FAO Statistics online databases on www.fao.org
http://www.faostat.fao.org
www.raosoft.com/samplesize.html
www.fao.org/cms/world/rwanda/CountryInformation
http://www.fao.org/docrep/meeting/004/ac346e/ac346e00.htm.
www.businessdictionary.com/definition/production.htm
www.amis.minagri.gov.rw

49

APPENDIX

50

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:

Single
Married
Widow

4. Education level:

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= 610 years; 3= 1115 years; 4= 1620 years; 5= Over 20 years
3. When did you join KOAIRWA?
4. Were you growing rice before joining KOAIRWA?
1=yes; 2=no
5. Why did you decide to become a member of KOAIRWA?
1=Access to inputs (Fertilizers and Pesticides); 2=Access to financial services; 3=Access
to the market; 4=Access to farm extension services
Other, specify .
6. What was your annual income before joining KOAIRWA?
0-20000Rwf
20000-50000Rwf
50000-80000Rwf
80000-100000Rwf
100000 and above

52

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 Amount borrowed in 2010

Amount borrowed in 2011

from)

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?
.......