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Crop commercialization in Rwanda: Current market participation and drivers

Author: Warner, James

Publisher: Intl Food Policy Res Inst

Published: 2024-05-13

Total Pages: 32

ISBN-13:

In this paper, we explore the current levels and participation of crop commercialization by Rwandan smallholder farmers. Our basic unit of analysis is total crop sales divided by the total value of crop production, either at the household or specific crop level. Overall, our findings suggest that approximately 80 percent of farmers participate in crop market sales and sell an average of 33 percent of their total production. However, there is a wide variety of percentage sales by crop and, in general, higher-valued crops are sold by more commercialized farm households. We also find that value of crop production per hectare rises with greater commercialization, suggesting that developing greater market commercialization, particularly with more valuable crops, may increase household incomes and aid in the economic transformation.

Costs and returns in Rwandan smallholder agricultural production: Gross margins and profitability analyses

Author: Mugabo, Serge

Publisher: Intl Food Policy Res Inst

Published: 2024-07-01

Total Pages: 23

ISBN-13:

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This paper explores crop commercialization among smallholder agricultural households in Rwanda from a cost and revenue perspective to determine profitability at the farm level. We use standard revenue and cost equations to assess the commercial viability of the smallholders. In general, we find that a household’s total crop production creates positive returns even if implicit costs, such as own family labor and fertilizer subsidies, are included. Specifically, over 80 percent of our sample households generated positive economic returns from farming— referred to as demonstrating a positive gross economic margin (GEM). However, if only crop market sales and market input costs are used in the calculations, only 40 percent of agricultural households generated positive returns—referred to as demonstrating a positive gross marketing margin (GMM). Most of the explanation for this difference is that the typical farm household sells only about one-third of its crop production by value. This outcome suggests that many agricultural households continue to focus on cultivating food crops for their own consumption and do not specialize in commercial production. This is to be expected in an economic context where input, credit, and commodity markets are still developing, production decisions are still shaped by high levels of weather and market risk, and production risk management options are limited, among many other factors. The results of this research provide a better understanding of how Rwandan smallholders might move towards higher value production, with the ultimate goal being to increase household revenues and welfare and accelerate the country’s economic transformation.

A Market Facilitator's Guide to Participatory Agroenterprise Development

Author: Shaun Ferris

Publisher: Catholic Relief Services

Published: 2006-09

Total Pages: 144

ISBN-13: 1614920028

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This publication is a product of the experiences and lessons learned while implementing agroenterprise projects in eastern and southern Africa. A Market Facilitator's Guide is based on a resource-to-consumption framework, which is the central theme of the "enabling rural innovation" approach for rural development. This approach seeks to empower farmer groups with the necessary skills to make informed decisions for their economic development, based on an analysis of their surroundings, assets and skills. The methodology also aims for outcomes that are equitable, gender focused and participatory.

Agricultural Commercialization, Economic Development, and Nutrition

Author: Joachim Von Braun

Publisher: International Food Policy Research Insitute

Published: 1994

Total Pages: 444

ISBN-13:

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Subsistence production: a sign of market failure. Commercialization cannot be left to the market. Household effects of commercialization. Nutrition effects of commercialization. Policy action needed.

Future Drivers of Growth in Rwanda

Author: The World Bank;Government of Rwanda

Publisher: World Bank Publications

Published: 2020-07-06

Total Pages: 452

ISBN-13: 1464812853

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A strong and widely acknowledged record of economic success-including a three-and-a-half-fold increase in per capita income since 1994--places Rwanda among the world’s fastest--growing economies. Traumatic memories of the 1994 genocide are gradually fading, as associations begin to take a more positive form--of a nation on the rise, powered by human resilience, a sense of common purpose, and a purposeful government. Past successes and a sense of frailty have fueled aspirations for a secure, prosperous, and modern future. Sustaining high rates of economic growth is at the heart of these ambitions. Recent formulations of the nation’s Vision 2050 set a target of achieving upper-middle-income status by 2035 and high-income status by 2050. Future Drivers of Growth in Rwanda: Innovation, Integration, Agglomeration, and Competition, a joint undertaking by experts from Rwanda and the World Bank Group, evaluates the country’s possibilities and options in this endeavor. The report identifies four essential drivers of growth--innovation, integration, agglomeration, and competition--and reforms in six priority areas: human capital development, export dynamism and regional integration, well-managed urbanization, competitive domestic enterprises, agricultural modernization, and capable and accountable public institutions.

Drivers of youth engagement in agriculture: Insights from Guatemala, Niger, Nigeria, Rwanda, and Uganda

Author: Babu, Suresh Chandra

Publisher: Intl Food Policy Res Inst

Published: 2021-03-31

Total Pages: 29

ISBN-13:

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Engaging burgeoning youth populations in developing country agriculture is seen as an important strategy toward effective, efficient, and sustainable food system transformation. Yet the policy, institutional, technological, and capability barriers and ways to overcome them for successful participation of youth in agriculture are not fully understood. We use a conceptual framework that identifies key pathways to prosperity for youth and classifies contextual and driving factors that contribute to the success of youth engagement in agriculture. The framework comprises four broad categories of strategic interventions: policy and socioeconomic environment; institutional; technological/business infrastructure; and individual skills and capacities. In the context of this framework, we then present insights from cases of youth participation in agriculture in five countries: Guatemala, Niger, Nigeria, Rwanda, and Uganda. The countries and cases were purposively selected as part of ongoing research on youth engagement in agriculture. Policies and strategies play an important role in creating an enabling environment for youth engagement in agriculture, including by fostering transparency and accountability in the policy system and promoting youth engagement in the private sector through agricultural extension and other services. Institutions and intermediaries provide financial support, training, and access to market for youth entrepreneurs. Support in these areas should be strengthened. Systems approaches, such as multi-stakeholder platforms, provide holistic support to young agripreneurs (entrepreneurs in agriculture), but require effective coordination. Similarly, information and communication technologies can play a facilitating role by providing platforms to network and receive updated market information but need to be significantly scaled up. Individual capacities can drive youth engagement in agriculture and agripreneurship but must continue to be built up through expanded education and training on technical and functional skills. As policymakers and program managers search for interventions that can promote youth involvement in agriculture in their own countries, the insights from the five countries examined that are presented in this paper may be useful for identifying context-specific challenges and pathways to successful youth engagement in agriculture in their own countries. The framework presented here can be applied to study youth engagement issues in any country or in sub-national, decentralized contexts to generate evidence to guide the design of youth-in-agriculture development programs. There is a need to support, strengthen, and implement the driving factors identified in this paper for expanding youth engagement in agriculture.

World Development Report 2008

Author: World Bank

Publisher: World Bank Publications

Published: 2007-10-15

Total Pages: 384

ISBN-13: 9780821368091

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The world's demand for food is expected to double within the next 50 years, while the natural resources that sustain agriculture will become increasingly scarce, degraded, and vulnerable to the effects of climate change. In many poor countries, agriculture accounts for at least 40 percent of GDP and 80 percent of employment. At the same time, about 70 percent of the world's poor live in rural areas and most depend on agriculture for their livelihoods. 'World Development Report 2008' seeks to assess where, when, and how agriculture can be an effective instrument for economic development, especially development that favors the poor. It examines several broad questions: How has agriculture changed in developing countries in the past 20 years? What are the important new challenges and opportunities for agriculture? Which new sources of agricultural growth can be captured cost effectively in particular in poor countries with large agricultural sectors as in Africa? How can agricultural growth be made more effective for poverty reduction? How can governments facilitate the transition of large populations out of agriculture, without simply transferring the burden of rural poverty to urban areas? How can the natural resource endowment for agriculture be protected? How can agriculture's negative environmental effects be contained? This year's report marks the 30th year the World Bank has been publishing the 'World Development Report'.

Commercialization of Smallholders

Author: Berhanu Gebremedhin

Publisher: ILRI (aka ILCA and ILRAD)

Published: 2010-01-01

Total Pages: 30

ISBN-13:

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The literature on commercial transformation of smallholders makes little distinction between market orientation (production decision based on market signals) and market participation (sale of output). This paper analyzes the determinants of market orientation and market participation in Ethiopia separately and examines if market orientation translates into market participation. Empirical results show that market orientation translates strongly into market participation. The key implication of this study is that policy, technological, organizational and institutional interventions aimed at promoting commercial transformation of subsistence agriculture should follow two-pronged approach: improving market orientation of smallholders at production level, and facilitating market entry and participation of households in output and input markets. Focusing on either may not be as effective in achieving the transformation.

Gender in Agriculture Sourcebook

Author: World Bank

Publisher: World Bank Publications

Published: 2008-10-07

Total Pages: 764

ISBN-13: 0821375881

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The 'Gender in Agriculture Sourcebook' provides an up-to-date understanding of gender issues and a rich compilation of compelling evidence of good practices and lessons learned to guide practitioners in integrating gender dimensions into agricultural projects and programs. It is serves as a tool for: guidance; showcasing key principles in integrating gender into projects; stimulating the imagination of practitioners to apply lessons learned, experiences, and innovations to the design of future support and investment in the agriculture sector. The Sourcebook draws on a wide range of experience from World Bank, Food and Agriculture Organization (FAO), International Fund for Agricultural Development (IFAD), and other donor agencies, governments, institutions, and groups active in agricultural development. The Sourcebook looks at: access to and control of assets; access to markets, information and organization; and capacity to manage risk and vulnerability through a gender lens. There are 16 modules covering themes of cross-cutting importance for agriculture with strong gender dimensions (Policy, Public Administration and Governance; Agricultural Innovation and Education; Food Security; Markets; Rural Finance; Rural Infrastructure; Water; Land; Labor; Natural Resource Management; and Disaster and Post-Conflict Management) and specific subsectors in agriculture (Crops, Livestock, Forestry, and Fisheries). A separate module on Monitoring and Evaluation is included, responding to the need to track implementation and development impact. Each module contains three different sub-units: (1) A Module Overview gives a broad introduction to the topic and provides a summary of major development issues in the sector and rationale of looking at gender dimension; (2) Thematic Notes provide a brief and technically sound guide in gender integration in selected themes with lessons learned, guidelines, checklists, organizing principles, key questions, and key performance indicators; and (3) Innovative Activity Profiles describe the design and innovative features of recent and exciting projects and activities that have been implemented or are ongoing.

Strategies for Sustainable Land Management in the East African Highlands

Author: J. Pender

Publisher: Intl Food Policy Res Inst

Published: 2006

Total Pages: 502

ISBN-13: 0896297578

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Deforestation, overgrazing, and unsustainable methods of cultivation are threatening agriculture and food security in the highlands of East Africa. In response, economists and other development professionals have turned their attention to combating the pr