PROMOTION OF AGRIBUSINESS CLUSTER IN RICE VALUE CHAIN AND ITS IMPACT ON FARMER’S WELFARE IN RWANDA CASE OF MUKUNGURI AGRIBUSINESS CLUSTER (NYAMIYAGA SECTOR, KAMONYI DISTRICT)

Abstract

The study conducted is titled, Promotion of agribusiness cluster in rice value chain and its impact on farmer’s welfare in Rwanda, a case of Mukunguri agribusiness cluster (Nyamiyaga sector, Kamonyi District).The objectives of study were to examine the structure of Rice agribusiness cluster , to analyze the level of agriculture production in the Rice agribusiness cluster area , to analyze the contribution of Mukunguri Agribusiness Cluster to the welfare of farmers and to set up the best strategies that can improve the performance of Mukunguri agribusiness . In conducting the study the mixed approach of qualitative and quantitative were adopted, proposing sampling technique were used in sampling ,while questionnaire, interview, documentary, and debriefing meeting through focus group discussion were used in data collection. Descriptive statistical analysis was used in data analysis. The findings showed that before the implication of MRPIC the rice value chain was composed by agri-shops as inputs suppliers, rice farmers as producers of paddy rice, and KABUYE s.a in collecting, processing and wholesaling function. The supermarkets, shops, open market and urban traders in retailing. Nowadays, value chain actors as well as supporters have changed. MRPIC LTD is currently negotiating with cooperatives and individual farmers to establish a contract farming which determine their business partnership in Rice value chain. The results also showed during agribusiness cluster, cooperative arrived to increase the working area, productivity and total production. The findings also revealed the increase of members capacity in the adhesion to health insurance ,and the tangible improvement in housing where the house property owner had increased from 81% to 98.4%.The study recommended that MRPIC LTD and COOPRORIZ ABAHUZABIKORWA must take advantage of new relationship with involvement of all stakeholders with strong collaboration.