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AGRICULTURAL SYSTEM IN RWANDA by: Aimable Nsabimana Dec. 23rd 2011 ABSTRACT Over the past decade, Rwanda has become the symbol of progress in Africa. It has received praise for numerous initiatives to deal with corruption and efforts to modernize its economy. Agriculture is an unmovable cornerstone of Rwandan society. Eighty percent of the population depends on the land work for their livelihoods. Farmers depend on a unique mixture of geographical landscapes, topography and microclimates. This presents substantial challenges. The land scarcity and the fact that Rwanda has one of the highest population densities in Africa, culminate in farming being conducted by smallholders who own, on average, 0.5 hectares of farmland. Furthermore, as the name “The Land of One Thousand Hills” suggests, soil erosion is an impending problem with some cultivation occurring on slopes of up to 55%. These factors, combined with the fact that the country is landlocked, with the nearest ports, Mombasa and DarEs-Salaam, being over 700 miles away, places constraints on Rwanda foreign development and would seem insurmountable for an ordinary person. In order to overcome malnutrition and sustain food security, the country has significantly promoted three main food crops countrywide. These include the Maize, Beans and Potatoes. The Potatoes are essentially produced in northern regions in volcano soil while the Maize and Beans are extensively developed in South and East of the country where the production of them is relatively high. While agricultural export production represents a small part of aggregate production, Rwanda has exploited the high quality characteristics of its coffee, pyrethrum and tea sectors to increase incomes for small holder farmers in these sectors. The country has planned 20 years middle and long term development program (commonly called Rwanda 2020 vision) which is mainly focused on Economic Development and Poverty Reduction Strategy. The agriculture sector is at the core of this vision and will play a big role in its success. Key words: Economics, Economic Development, food and cash crops ii LIST OF TABLES Table 1: Potato Production in Rwanda (tonnes) ............................................................................. 9 iii LIST OF FIGURES Figure 1: Geographic map of Republic of Rwanda ........................................................................ 1 Figure 2: Farmers harvesting tea leaves in Kitabi Factory Area, 2010 ........................................ 13 Figure 3: Pyrethrum Farmers in Musanze District ....................................................................... 14 iv ABBREVIATIONS ISAR: Rwanda Institute for Research in Agriculture DRC: Democratic Republic of Congo GDP: Gross Domestic Product MINAGRI: Ministry of Agricultural and Animal Resources MINECOFIN: Ministry of Economic Planning and Finance RADA: Rwanda Agricultural Development Authority IITA: International Institute of Tropical Agriculture RIU: Research Into Use NGO: Non Government Organization FAOSTAT: Food Agricultural Organization Statistics USD: United State Dollar OCIR-CAFÉ: Rwanda Institute for Coffee Research and Development CWS: Coffee Washing Station USAID: United States of America for International Development UK: United Kingdom Frws/Kg: Rwandan francs per Kilo v TABLE OF CONTENTS ABSTRACT................................................................................................................................................... i LIST OF TABLES ....................................................................................................................................... iii LIST OF FIGURES ..................................................................................................................................... iv ABBREVIATIONS ...................................................................................................................................... v TABLE OF CONTENTS ............................................................................................................................. vi CHAPTER 1 INTRODUCTION .................................................................................................................. 1 1.1 A general overview on the Republic of Rwanda ................................................................................ 1 1.2 Systems in Rwandan agriculture ......................................................................................................... 2 1.3 Climate change.................................................................................................................................... 3 1.4 Technology and adaptability ............................................................................................................... 4 1.5 Crop production .................................................................................................................................. 5 CHAPTER 2 FOOD CROPPING RWANDA .............................................................................................. 6 2.1 Banana................................................................................................................................................. 6 2.2 Maize .................................................................................................................................................. 7 2.3 Potatoes ............................................................................................................................................... 8 2.4 Beans ................................................................................................................................................... 9 2.4.1 Overview and place of beans in the agricultural sector in Rwanda ............................................. 9 2.4.2 Bean production constraints in Rwanda..................................................................................... 10 CHAPTER 3 CASH CROPPING IN RWANDA ....................................................................................... 11 3.1 Coffee................................................................................................................................................ 11 3.2 Tea .................................................................................................................................................... 13 3.3 Pyrethrum Production in Rwanda ..................................................................................................... 14 CHAPTER 4 CONCLUSIONS .................................................................................................................. 15 REFERENCES ........................................................................................................................................... 16 vi CHAPTER 1 INTRODUCTION 1.1 A general overview on the Republic of Rwanda Rwanda is one of African countries, entirely landlocked, with four shared frontier countries; in the North there is Uganda, West – Democratic Republic of Congo (DRC ), East- Tanzania and South- Burundi. This can be observed through the figure given below. Figure 1: Geographic map of the Republic of Rwanda Source: Website Design by Internetwebsitedesign.com.au Rwanda is located in Central Africa between latitudes 1°04’ and 2°51’ south and longitudes 28°45’ and 31°15’ east. Its surface area is 26.338 sq km, divided into water and lands. Land is 24,668 sq km and water: 1,670 sq km. The estimate of the population on January 19th 2010 was 10,746,311 people, that is an average population density of 408 people per sq km. Back on real density or physiological density (People per area of arable land), 46% of the total area used for human sustenance through cropping and livestock developments give a density of 887 people per 1 sq km. The country is predominantly agricultural with few options that would reduce the pressure on land resources. Rwandan population is at high rates made by youth, less than 35 years at 60%. That is, their impact on development may be significant if their implication is made and rendered effective. Rwanda is a poor rural country with about 85% of the population engaged in (mainly subsistence) agriculture and some mineral and agro-processing. In 2008, minerals overtook coffee and tea as Rwanda's primary foreign exchange earner. The estimates of GDP in 2009 were $5.1 billion. The real GDP growth rate was 4%, per capita income is $510, purchasing power parity in 2006 $1,600, average inflation rate in 2008 was 5.7%. Agriculture in 2009 has contributed with 36.4% of GDP and main crops are coffee, tea, pyrethrum (insecticide made from chrysanthemums), bananas, beans, sorghum, potatoes, and livestock. Industrial sector contributed with 14.2% of GDP and main products are cement, agricultural products, beer production, soft drinks, soap, furniture, shoes, plastic goods, textiles, cigarettes, pharmaceuticals while the services sector made 43.7%. Trading status of the Rwandan economy in 2009 was estimated as exports $193 million in tea, coffee, coltan, cassiterite, hides, iron ore, and tin. Major markets are China, Belgium, and Germany. The imports were $963 million spent on foodstuffs, machinery and equipment, steel, petroleum products, cement, and construction material from Kenya, Germany, Belgium, France, Uganda, and Israel. The climate of Rwanda is temperate with two rainy seasons (February to April, November to January); mild in mountains with frost and snow are possible. The environment in Rwanda is being destroyed through deforestation resulting from uncontrolled cutting of trees for fuel; overgrazing; soil exhaustion; soil erosion and widespread poaching. 1.2 Systems in Rwandan agriculture Rwanda has 4 main types of land: cultivated lands, marshlands, forests, and soils allowing water resources. Cultivated lands represents 1,12 million hectares, around 46% of the country, distributed between 870,000 ha of annual crops and 250,000 of permanent crops. But the ministry of agriculture and animal resources assess that around 420,000 to 560,000 ha more could be cultivated. Forest area represents around 8% of the country which are mainly located in 2 natural protected areas. The climate is temperature tropical type with an average temperature of 19oC and annual rainfall ranging between 900 and 1,600mm. The country experiences a short rainy season from September to November and a long rainy season from February to May. The short dry season runs from December to January and the long dry season from June to mid-September. Rwanda is divided into three topographical zone: a Lowlands having less than 1,500 m of altitude and which cover the whole part of the Eastern part of the country; a Midlands (1,500 to 1,900 m) stretching on both side of the Congo-Nile Ridge; a Highlands (above 1,900 m) that cover the highlands of the Congo-Nile Ridge. The spatial pattern of the agriculture regions in Rwanda follow the physical environmental factors which affect crop growth and due to the fact that Rwanda is characterized by dramatic contrasts in temperature and rainfall as the elevation changes from the lowland savanna areas of the East to the mountain chains of the West. That is, Rwandan agricultural economy depends on the status of the occurring climatic conditions which results its vulnerability on any change. 1.3 Climate change Climate describes changes in the variability or average state of the atmosphere over time scales ranging from decades to millions of years. These changes can be caused by naturally processes of the Earth, external forces (e.g. variations in sunlight intensity) or, more recently, human activities. Human induced climate change refers to global warming, which translates an average increase in the Earth's temperature, which in turn causes changes in climate and had affected the eastern Africa countries where Rwanda is located. Warmer Earth may lead to changes in rainfall patterns, a rise in sea level, and a wide range of impacts on plants, wildlife, and humans. Back to our country, Rwanda, with full reliance on agriculture and with high population pressure preoccupation, the agriculture adaptability on the changing climate so as to fulfill our every day food demands and the technological application is required accordingly to our: topography, arable lands surface, water availability, financial means, human capital formation so as to apply suitably and accordingly the required level of technology. 3 Climate change is expressed through a wide range of characteristics among which we can find: water scarcity within areas which can result desertification of places; global warming and frost in various areas, rainfall schedule changes which in turn impact on agriculture failures; calamities and other disasters around the world which devastate human treasurers and making many deaths in quick and short times, atmospheric temperature increase and complicated diseases in association; fauna and flora species extinction in different corners of the globe. The country is susceptible of knowing powerful degradation of environment caused by heavy rainfall causing the erosion and the deforestation. Because of the reduction of biodiversity and ecosystem, some species of animals, birds and vegetation had already disappeared. Not only disappearance of some plant species but also complexities in resistance and yielding status of the remaining ones. 1.4 Technology and adaptability Climatic conditions are key determinants of Rwandan agricultural economy: progress and/or shrinking of weather and humidity are directly linked to atmospheric status and environmental viability. Rwandan farmer producers’ yield has been always affected by the conditions in the climate context. The mechanism to handle the preoccupation is the green revolution. There is need for remedies about how to mitigate climate change consequences in order to allow the environment to be viable and productive in food resources. However green revolution practices evidences indicating that excessive reliance on monoculture farming and agro industrial inputs, such as capital-intensive technology, pesticides, and chemical fertilizers that may negatively impact the environment and rural society; it will be an obligation for our systems to face those critical corners of our development with appropriate mechanisms that ensure environmental viability. The economy of Rwanda is based on the agricultural sector. Farmers are living at mercy of the weather. A single storm can flatten a crop, kill herds of livestock and raze agricultural out buildings. Floods which happen sometime in rain season can sweep away all plantations even the topsoil. The high winds and violent rainfall can lay waste staple during the rainy season. 4 A drought is equally catastrophic in this part of Africa and it is causing the most damage to the farm. The fragile, semi-arid and arid soils like the south part and eastern part of Rwanda and most of part of region of Eastern Africa is prone to be desert. The adaptability on climate change takes its roots from technological application adjusting rainwater utilization and mainly roof waters, agro forestry application in each and every cropping system, organic manure use in order to preserve the fertility and viability for microorganisms, capacity building in terms of information transmission on sustainable agriculture techniques in order to create and strengthen awareness of small population grouped in farmer producers organizations (cooperatives). 1.5 Crop production Agricultural production in Rwanda can be grouped into three categories: food crops (leguminous, cereals, roots and tubers, banana); the traditional cash crops (coffee, tea, pyrethrum) and the new cash crops or export crops (fruits and vegetables, flowers, spices). Food crops occupy 92% of the total cultivated land; while coffee and tea occupy respectively 6,3 and 1,6 of the total cultivated land (MINAGRI, 2010). The dominant farm type is smallholder due to the fact that Rwandan population is young in high rates which induce the lands to be divided into small parts by parents giving their young married children. Not only for parents to their kids but also the general population pressure on land resources cause this by sharing among community members in order to use those lands. The rural economy of Rwanda is based on traditional agriculture, semi-intensive, subsistencebased production with important improvements towards intensive cropping systems. It is not easy for Rwanda to practice full intensive agriculture with monoculture-based cropping and mechanized due to its topography, soil structure, farmer producers’ skills and mindset, population growth status, labor force in the sector and means. 5 CHAPTER 2 FOOD CROPPING RWANDA 2.1 Banana The Rwandan Banana industry presents consumption types of Banana products in three main forms such as Brewing Bananas at 60%, cooking bananas at 30% and dessert Bananas at 10% (RADA 2010). Banana is a reliable crop that contributes highly in household income, food security and regional trading. Banana is the second major food crop in Rwanda next only to beans. It is used both as food and cash crop (MINECOFIN, 2001, Kiiza et al. (2004). The crop is grown all over the country by small-scale farmers, but principally in Eastern province (ex- Kibungo), (ex-Gisenyi) and (ex-Cyangugu) in Western province. Banana requires a tropical climate with temperatures ranging between 15 and 30o C and 1000-2000 mm of annual rainfall. Bananas are evolving best on deep soils. The banana crops can give good yields in around 1500 m and only a small portion in East part of the country is too dry for the production of bananas. The soils in the central part of Rwanda may be a limiting factor for banana production because of soil mineral-poor and thus may require a special program of fertilization. Banana is a pro-ecological culture, highly suitable for downhill mountains. The scope of banana industry in Rwanda since long ago has shown a reliance on brewing banana. Brewing banana counts 60% of the total banana production in Rwanda banana industry. That is, the reason is declining level of soil fertility which has been a major constraint to increase the productivity especially for cooking banana and dessert species. Factors of this declining level of soil fertility are based on population pressure in an increased way which induces agriculture intensification. Kigali is the best at 80%, say 15,000 tons. The tremendous decrease is found in the year 1994. After 1994 till now, the level of production measurement has shown an increase. Rwanda is among top producers and top consumers even which induces it to imports from mainly Uganda, Tanzania and Democratic Republic of Congo (MINAGRI, 2007). The consumption of bananas in Rwanda is one of the highest in the Great Lakes region. In the year 2000, annual per capita consumption was estimated at 258 kg (ibid.). About 80% of Rwandan 6 households practice banana production mainly for household food security and income generation. A typical household’s agricultural enterprise regime comprises 50% tubers, 30% bananas and 20% legumes, cereals and vegetables (RADA, 2007). 2.2 Maize According to International Institute of Tropical Agriculture (IITA), 2002, Maize is increasingly becoming an important food and cash crop for small-scale farmers in Rwanda. According to an earlier survey carried out in 1990, volume traded for the rural areas was estimated at about 5,000 tons while in 2000 this figure had risen to nearly 50,000 tons. The total quantity of maize purchased has surpassed internal supply, making Rwanda a net importer of maize. While the approximate quantity demanded (marketed) of maize in Rwanda is in the order of 55,000 tons per annum, only about 30,000 of this is from internal production, implying a deficit of about 25,000 tons per annum, which is met by imports from Uganda and Tanzania. Domestic demand for maize is driven by changes in the traditional markets of food and feed. The food market is currently the most important accounting for about 55,000 tons of marketed output and about 30,000 tons of subsistence output. On the other hand, the major feed producer in Rwanda is expected to consume about 480 tons per month (5,760 tons per year) once full production is achieved. Quality is an important market variable with uniformity, cleanliness dryness and color being the main parameters. This survey found that although Rwandan maize is clean, it contained grain of different color increasing the costs of sorting and grading by about 25%. The current poor market integration of maize farmers could be the primary socioeconomic explanation for this. Available data indicate that there has been a decline in maize production. While average production during the pre-war period (86-90) was about 90,000 tons per annum, that for the post war period average (97-00) averaged 60,000 tons per annum, implying a decline of about 39% over the period 1987-2000 (ISAR, 2002). While maize production has generally decreased, the population has been increasing leading to a sharp fall in per capita maize production. Per capita production has declined from about 16 kg per person in 1987 to about 8 kg per person in 2000, representing in this case a decline of about 50 %. 7 Constraints facing maize production include both biotic and abiotic factors. However, the latter combined with marketing problems are more responsible for limiting maize exploitation and utilization in the country. There is insufficient production of good quality seed while the multiplication and distribution system is not effective at getting the seeds to the poor farmers in the country. Less than 2% of the farmers use quality seed mainly from NGOs, leaving the majority of farmers with own seed saved from previous harvests. 2.3 Potatoes Potatoes are a very important crop in Rwanda. In 2007, it was estimated that close to one million tons of potatoes were produced in the country and that average per capita consumption was 125 kg (FAOSTAT). Only cassava contributes more energy to the average Rwandan's diet. The research into use (RIU), one if NGOs operating in Rwanda facilitated Potato Innovation Platform operates in Gicumbi District of Northern Rwanda. The key issue which emerged from stakeholder discussions was the acute lack of quality seed potatoes. This shortage is being addressed through initiatives focused on both the formal and informal seed sectors. In the formal sector, the focus is on production of mini-tubers. In the informal sector the focus is on capacity building of farmers to enable them to practice better selection of seed potatoes from their own crops. Potatoes were identified as a key crop, because demand is very high: in a six month period in 2009 prices increased by more than 100%. Potatoes grow well in several parts of Rwanda and Gicumbi District has advantages due to environmental factors and proximity to markets, Ministry of Agriculture (MINAGRI, 2010) Potatoes were introduced in Rwanda in the early 1900s, but since the early 1960s they have become a crop of increasing economic significance. Until the seventies, most varieties came from Europe. Because of the 1994 Rwandan genocide and its consequences, germplasm has been lost and varieties have degenerated, with a sharp drop in crop yields. The potato underpins Rwanda's food security. Annual consumption is a very high at 125 kg per person, per year making potato the country's second most important source of energy after cassava. 8 Table 1: Potato Production in Rwanda (tons) Year Harvested production Year Harvested production 2000 957,202 2005 1,314,050 2001 1,012,269 2006 1,285,149 2002 1,038,931 2007 967,000 2003 1,099,549 2008 1,162,000 2004 1,072,770 2009 1,200,000 Source: FAO Statistics Division 2010 2.4 Beans 2.4.1 Overview and place of beans in the agricultural sector in Rwanda Beans are the primary source of dietary proteins in Rwanda as they supply 65% of national dietary proteins compared to 4% from animal sources. Beans also contribute generous amount of energy (32%); and of micronutrients: iron, zinc and vitamins A and B that promote normal human body and cognitive growth and development. Due to their diversified nutritional content and predominant protein supply in Rwandan diets, beans are regarded as a near-perfect food (CIAT, 1995), and as the meat for the poor. However, the on-farm productivity of about 0.8 – 1.0 t ha-1 is still low compared with 2 t (for bush) and 5 t ha-1 (for climbers) that are achieved with optimal management conditions. This low productivity, coupled with the high per capita consumption for beans of 60 kg (three times of Africa’s) the demand for beans in outweighs production and Rwanda is a net importer of bean grain that is equivalent to USD 12.9 million (Ferris 2002). The proliferation in population, especially in urban areas has recently created an exponential rise in opportunity for marketing and earning income from beans by farmers. To exploit this, the farmers will be better linked and be responsive to the specific bean markets and consumer demands and preferences of grain types, such as the yellow, red, red mottled and white seeded beans that fetch premiums prices instead of the current predominant unmarketable mixed varieties. 9 2.4.2 Bean production constraints in Rwanda Self sufficiency in bean production in Rwanda is severely constrained by field and storage losses due to damage caused by prevalent diseases and pests, (biotic factors) as well as soil and moisture related abiotic problems that are compounded by poor agronomic management practices 10 CHAPTER 3 CASH CROPPING IN RWANDA The agricultural exports in Rwanda are composed of three main crops which are Coffee, Tea and Pyrethrum. Tea is produced throughout the year while coffee and pyrethrum are produced on seasonal basis. 3.1 Coffee In Rwanda, the coffee industry plays an important role in the country’s economy. For many years, coffee remains Rwanda’s top export and main source of foreign exchange income (Boudreau, et al., 2009). It provides a livelihood for almost 500,000 Rwandan families (approximately 2 millions of people, close to 25% of the total population (OCIR-CAFÉ 2005); many of whom work in cooperatives and grow coffee on small plots (Boudreau et al., 2009). A total of 38,559 hectares (MINAGRI, 2008) are located on the country’s hillsides. It is estimated that 500,000 households, distributed over two-third of the country depend on coffee as an important source of income. The majority of Rwandan coffee growers mixed coffee trees with subsistence crops. Others simply removed them or abandoned them towards staple crops. The current coffee productivity in Rwanda is ranged from 750 kg to 2,500 kg per ha (about 0.3 to 1 kg per coffee tree) according to efficiency of used using farming methods and coffee region. Coffee Arabica is the most coffee cultivated (99%). Robusta constitutes 1% of the total coffee produce in Rwanda. According to Descroix and Sonek (2009), there are six basic environment factors that need to be taken into account while selecting the best suitable places to plant coffee. i.e temperature, water availability, sunshine intensity, wind type, soil type and topography of the land. Temperature values and their fluctuations have significant impact on the behavior of the coffee tree. The optimum mean temperature for coffee Arabica is given as 18oC during the night and 22oC during the day whereas optimal average annual temperatures are given between 22 and 28oC. Tolerated extremes extend to 15oC during the night and 25-30oC during the day. Temperature higher than 25oC cause reduced photosynthesis and prolonged exposure to the temperature above 30oC incur leaf chlorosis and generate “star flowers”, or blossom wilting as well as defective fruit set. High temperature also favors the development of coffee Leaf Rust and 11 fruit blight in coffee plant and accelerate fruit maturation whist low temperature favors coffee berry diseases (Wintgens, 2009). Rainfall pattern also matters. It must include a few months with little or no rain and this period is necessary to induce flowering. A total annual rainfall between 1400 and 2000 mm is favorable for Arabica growing, whereas Robusta need about 2000-2500 mm. Rate below 800-1000 mm for Arabica and 1200 mm for Robusta, even if they are well distributed, can be hazardous to the productivity of the coffee plantation. Coffee sector in Rwanda is a source of household income mobility which contributes to the livelihood of great number of the population starting from small farmer producers, marketers in various categories, national exports and to national GDP. In 2000, there were only two coffee washing stations (cws) in the country and neither of them was operational. There was no knowledge of processing and storage techniques, financial and administrative management of washing stations, and no established marketing contacts with premium quality importers and roasters. In 2005, the forty six stations produced 1,107 metric tons of fully washed coffee. Thousands of Rwandans have been trained in improved production techniques, wet processing, storage, cupping, financial and cooperative management, and marketing. The rapidity with which the sector has evolved is unprecedented and has surprised virtually every knowledgeable industry insider. The evolution of coffee production in Rwanda and the transformation of Rwanda’s coffee sector have happened relatively quickly. In 2000, Rwandan farmers were producing semiprocessed coffee for sale on world markets. Farm gate prices paid to farmers were low (60Frws/kg) and the prospects for farmers and exporters to increase income or profits were limited. Since the late 1990s, the government has liberalized the sector by removing a variety of barriers to trade, creating new incentives for groups and individuals to invest in coffee production and facilitating entrepreneurship in the coffee industry. In a focused, decade-long effort, the government, working with the private sector and with donors, has reshaped this important industry: the regulatory framework for coffee production has been modified, over 100 coffee 12 washing stations have been built, donors have supported the development of market linkages between producers and foreign buyers, cooperatives have been formed, and smallholder farmers are working together in an effort to increase quality and improve marketing and branding. 3.2 Tea In Rwanda, tea was introduced as an industrial crop in early 1960. Black tea production started in 1965. Since then, the tea sector has become the most important source of export earnings after the coffee market plunged in recent years. Tea is now number one export earner; contributing up to 34% of the total national exports. Figure 2: Farmers harvesting tea leaves in Kitabi Factory Area, 2010 Since its introduction in Rwanda, tea production and export earnings from it increase steadily except during the 1994 war. In year 2002, 16000 tones of made tea were produced and export earnings totaled to US$ 23 million. Tea export totaled to 34% of the total of Rwanda export earnings. The current tea sector consists of 10 tea factories, 8 government owned plantation known as industrial Blocks, 3 tea cooperatives known as Coopthés and 11 tea small holders associations known as Thé Villageois. The total planted area is 12,862 hectares. The factories installed capacity is 15,500 tones of made tea per annum. The tea sector provides employment to 52,838 people, tea farmers and workers together. A combination of high altitude, good rainfall and local tropical type of soil favour high productivity and quality in Rwanda. Presently, quality and productivity are not sufficient competitives. We have the best quality in Kitabi, Gisovu, and Mata. The good quality in Pfunda, Nyabihu, Rubaya, good medium in Gisakura, medium in Mulindi and Shagasha. 13 3.3 Pyrethrum Production in Rwanda The pyrethrum crop is one of main important cash crops currently under extensive improvement. This is because various researches and applications are experimented in East African region about the pyrethrum production. Most of huge investments are jointly undertaken by the USA, UK and the Government of Rwanda in the promotion and increase of pyrethrum production (MINAGRI, 2010). Companies that rely on access to pyrethrum require a sustainable and consistent high-quality source of correctly processed flowers. Figure 3: Pyrethrum Farmers in Musanze District USAID, SC Johnson, and Texas AgriLife Research Institute are working together to ensure the long-term, sustainable and responsible development of Rwanda’s pyrethrum flower industry. By working with farmers to set up cooperatives that promote best practices in terms of pyrethrum collection, transportation and drying; partners seek to improve and accelerate training of farmers in flower production. Alliance partners are also working with the country’s only pyrethrum processing plant to design and implement a credit program that will enable smallholder farmer groups to borrow money to purchase equipment for properly drying flowers. Through these efforts, alliance partners had increased production from the 219 tons of dried flowers produced in 2008 to 500 tons in 2010 while also increasing their pyrethrum content. 14 CHAPTER 4 CONCLUSIONS Rwanda, one of the landlocked countries in central Africa, relies essentially on agriculture. This sector is considered as an engine of life development and as raw material in up warding the other sectors such as industry and services and thus the whole economy. Agricultural development is currently being intensified in sides, cash cropping as well as food crops. Due to geographical location of the country, not touching to a board of Sea nor Ocean and few elements of mineral resources; agriculture is an important economic resource. Food and cash crops such as Maize, Beans, banana, coffee and tea play a major role in stabilizing food security in the first place and then impact greatly on national GDP throughout annual exports. Maize, Beans and Banana industry plays an important role to the totality of the population food security and acts as households’ income provider. They are cropped countrywide on 65% of the arable land. Weaknesses in adaptability have shown a decrease in yielding and these accelerate imports despite Rwandan international ranking among producers. The main cash crops include Coffee, Tea and Pyrethrum. The Coffee industry plays an important role in the country’s development. For many years, coffee remains Rwanda’s top export and main source of foreign exchange income. Adding value to the coffee supply chain is adding direct economic benefits and important indirect social benefits to the lives of individuals and to the health of communities in Rwanda. Tea sector is the second after coffee to bring to the country foreign currencies and contributing to the livelihoods of thousands of Rwandan population. The pyrethrum crop production in Rwanda is relatively significant and the country together with USAID is currently providing various extension services to the farmers in Northern region in order to increase the pyrethrum yield. But on the other hands, the agriculture in Rwanda is still traditional, which needs to be really improved in order to increase the agricultural production significantly and sustainably. 15 REFERENCES Books Ir Sihimbiro Francois, Sustainable impact in the Rwandan coffee sector, SNV case study 2008. Karol C. Boudreaux, A Better Brew for Success Economic Liberalization in Rwanda’s Coffee Sector, 2009 Reports and Journals Agricultural Policy Development Project Research Report No. 14, The Impact of Agricultural Growth on Employment in Rwanda: A Three-Sector Model, August 2002. OCIRTHE, A new tea sector strategy for Rwanda year 2005-2010, December 2006. MINAGRI, (RADA), Statistics of Trend in crop production, August 2010. International Institute of Tropical Agriculture and ISAR, Maize sub-sector market survey on Rwanda, November 2002 FAO statistics Division, Potatoes platform innovation, Annual report, 2010 GoR, National Agricultural Policy, March 2004. Government of Rwanda, “REMA, Rwanda State of Environment and Outlook Report”, 2009. Websites consulted http://www.theodora.com/wfbcurrent/rwanda/rwanda_economy.html http://www.spread.org.rw/spread_project.php http://www.researchintouse.com/programmes/riu-rwanda/riu-rw42innovplat-potato.html www.minagri.gov.rw www.minecofin.gov.rw 16