THE CHALLENGE TO SUSTAINABLE GROWTH IN RWANDA’S COFFEE SECTOR

Daniel C. Clay and Alfred Bizoza

No 275678, Feed the Future Innovation Lab for Food Security Policy Research Papers from Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP)

Abstract: Recent in-depth analysis of current trends in Rwanda’s coffee sector, together with research findings from the Africa Great Lakes Coffee Support Program (AGLC) have revealed that low and stagnating production has placed Rwanda’s coffee sector in a vulnerable state (AGLC, 2016). Perennially low coffee prices (24 percent below others in the region) have resulted in low, often negative profits to farmers, discouraging them from investing in their plantations. Simply put, farmers have been left out of Rwanda’s “coffee renaissance” over the past 15 years and the consequences are now more apparent than ever. Many farmers report that losses in coffee have driven them to abandon their coffee trees and increasingly to uproot them in favor of other, more profitable crops. AGLC research shows that these trends are particularly acute among largeholder coffee farmers (those with 1000+ trees). These are farmers who are more highly commercialized, are highly responsive to cherry prices, and have other farming and off-farm options. They also own the majority (57 percent) of coffee trees in Rwanda (AGLC, 2016). Equally disconcerting is the finding that young farmers are choosing not to enter into coffee at all, often for the same reasons. They see clearly how their parents struggle to make a living in coffee and opt to produce other crops instead.

Keywords: Agricultural and Food Policy; Demand and Price Analysis; Food Security and Poverty; International Development (search for similar items in EconPapers)
Pages: 23
Date: 2018-06-01
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:miffrp:275678

DOI: 10.22004/ag.econ.275678

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