Risk analysis of vegetables marketing in Rwanda. A case of carrots and cabbages produced in northern province, Rubavu district and supplied across the country

Jean Jacques Kubwimana

Journal of Agribusiness and Rural Development, 2020, vol. 56, issue 2

Abstract: Due to the perishable and biological nature of the vegetable production process, there is difficulty in scheduling the supply of vegetables to market demand. Vegetables are subjected to higher price, quality, and quantity risks because of changing consumer demand and production conditions. The core focus of this study was to reach, measure, and analyze the marketing risk level of vegetables produced in the Northern Province (Rubavu district), Rwanda. This study was based on a survey conducted with 90 vegetable sellers. At least 30 couple of wholesalers and middlemen visited the Rubavu district to trade the vegetables with various retailers across the country. The study used primary data collected through structured questionnaires and secondary data sources. A five-point Likert scale associated with the bivariate analysis was used to rank the risk level while the full models of linear regression analysis and factor analysis were used to identify the major risk factors affecting the Rwandan vegetable market. The mean score results derived from the Likert scale indicated that low prices of seasonal products, weak market channels, poor logistics and market communications, poor product handling and packaging, lack of storage and higher perishability were identified as the most important sources of risk. Therefore, the use of forward contracts, access to market information, selling at crude prices due to perishability, contractual arrangements, maintaining good relationships, and upgrading the storage network system were statistically significant measures for overcoming these risks.

Keywords: Marketing; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pojard:356094

DOI: 10.22004/ag.econ.356094

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