Thesis (MScAgric)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: As agriculture remains the economic engine of rural Africa, reducing poverty in Africa will
depend largely on stimulating agricultural growth. To realize this growth, the efficient allocation
of a country’s scarce natural resources becomes a prerequisite. Rwanda is endowed with
extensive wetlands with a high potential for rice production due to its hilly topography, abundant
rainfall, and warm temperatures. However, many of these wetlands remain uncultivated despite
the prevailing rice deficit in the domestic and regional markets.
Over the past decade, Rwanda has increasingly become dependent on regional and global
markets for rice, as domestic supply is unable to keep pace with the growing domestic demand.
This production deficit has limited the potential gains that farmers and the nation could realize in
the form of income and foreign exchange earnings.
The main objective of this study is to determine Rwanda’s comparative advantage in rice and to
identify constraints limiting efficiency. To achieve this objective, this study utilizes the Policy
Analysis Matrix (PAM) to measure the comparative advantage in rice production and the level of
inefficiencies within the rice subsector in the Eastern Province of Rwanda. The key findings of
the analysis demonstrate that this province has a comparative advantage in rice. However, within
the sample, 68 % of rice farmers’ cooperatives, cultivating rice on 25% of the total area under
study, have no comparative advantage.
In terms of net welfare gains, due to market distortions, domestic rice prices are artificially high,
which creates a deadweight loss in the rice market. In particular, the protectionist policies (i.e.
rice import tariffs and farm inputs subsidization) induce the private farm profit to outweigh the
social farm profit. This abnormal profit allows rice production to become financially profitable
even where there is a comparative disadvantage.
On the demand side, although the domestic price of imported rice in Rwanda is slightly higher
than the local rice price, the majority of consumers prefer imported rice to local rice, due to its
long grain shape, aroma, and good quality. The low domestic demand for bold and short grain
rice, which is cultivated by 70 % of Rwandan rice farmers, limits domestic rice producers’
market share. Given the study’s findings, the policy recommendations are threefold. The first involves
technology dissemination and adoption. In order to improve the domestic rice production
capacity and competitiveness, without compromising efficiency, it is imperative for rice farmers
to adopt labour saving technologies. This technology adoption would allow for an increase in the
area on which rice can be grown efficiently, due to a reduced social production cost. The second
recommendation is that government should encourage research on the identification of aromatic
and long grain rice varieties that can adapt to Rwanda’s agroecology, thereby meeting
consumers’ demand preferences. Finally, though rice import tariffs protect domestic farmers
against foreign competition, these policies decrease consumers’ welfare due to a reduction in the
range of rice consumed in the domestic market. This study recommends the government to
facilitate exportation of local rice in regional markets, and reduce rice import barriers. This
intervention would benefit both farmers and consumers, while stabilizing the trade balance. / AFRIKAANSE OPSOMMING: Aangesien landbou steeds die ekonomiese enjin van landelik Afrika is, sal die vermindering van
armoede grootliks afhang van die stimulering van groei binne landbou. Die doeltreffende
toedeling van ‘n land se skaars hulpbronne is ‘n voorvereiste om hierdie groei te verwesenlik.
Rwanda het ekstensiewe vleilande met ‘n hoë potensiaal vir rysproduksie as gevolg van die
heuwelagtige topografie, oorvloedige reënval en warm temperature. Baie van die grond is egter
steeds onbewerk desnieteenstaande die heersende rystekort in die plaaslike en streeksmarkte.
Oor die afgelope dekade het Rwanda toemend afhanklik geraak van streeks- en globale markte
vir rys aangesien plaaslike aanbod nie kan byhou met die toemane in plaaslike vraag nie. Die
produksietekort het die potensiële voordele wat boere en die volk kan realiseer in die vorm van
inkomste en buitelandse valuta, beperk.
Die hoofdoelwit van die studie is om Rwanda se vergelykende voordeel in rys te bepaal en om
die beperkings ten opsigte van doeltreffendheid te identifiseer. Om hierdie doelwit te bereik, het
die studie die Beleidsanalise Matriks gebruik om die vergelykende voordeel in rysproduksie en
die vlak van ondoeltreffendheid in die ryssubsektor van die Oostelike Provinsie van Rwanda, te
meet. Die kern bevindinge van die analise dui daarop dat die Oostelike Provinsie van Rwanda ‘n
mededingende voordeel in rys het. In die steekproef is daar egter 68% van die rysprodusente
koöperasies wat geen mededingende voordeel het nie.
In terme van netto welvaartsvoordele, as gevolg van verwringing in die mark, is die plaaslike
prys van rys onnatuurlik hoog, wat ‘n dooieverlies skep in die rysmark. Spesifiek, die
beskermende beleide (d.i. rys invoertariewe en plaas insetsubsidies) het tot gevolg dat private
boerdery wins groter gewig dra as die sosiale boerdery wins. Die abnormale wins laat toe dat
rysproduksie finansiëel winsgewend word selfs al is daar ‘n vergelykende nadeel.
Aan die vraagkant, al is die plaaslike prys van ingevoerde rys in Rwanda ‘n klein bietjie hoër as
die plaaslike rysprys, verkies die meeste verbruikers die ingevoerde rys eerder as die plaaslike
rys, as gevolg van die lang korrel vorm, aroma en goeie kwaliteit. Die lae plaaslike verbruik vir
vet kort korrel rys, wat verbou word deur 70% van die Rwandese rysboere, beperk die plaaslike
rys produsente se markaandeel. Gegewe die studie se bevindings, is die beleidsaanbevelings drieledig. Die eerste behels
tegnologie oordrag en aanvaarding. Om plaaslike rysproduksie kapasiteit en mededingendheid te
verbeter sonder om doeltreffendheid af te skeep, is dit noodsaaklik vir rysboere om
arbeidsbesparende tegnologie te aanvaar. Die tegnologie aanvaarding sal die area wat
doeltreffend onder rys verbou word, vergroot as gevolg van verminderde sosiale produksiekoste.
Die tweede aanbeveling is dat regering navorsing oor die identifisering van aromaties en lang
korrel rys varieteite moet aanmoedig om aan te pas by Rwanda se agro-ekologie; om sodoende
verbruikers tegemoet te kom met hulle vraagvoorkeure. Laastens, al beskerm invoertariewe van
rys die plaaslike boere teen internasionale mededinging, verlaag hierdie beleide die
verbruikerswelvaart as gevolg van ‘n verlaging in die verskeidenheid rys wat in die plaaslike
mark verbruik word. Die studie beveel aan dat die regering die uitvoer van plaaslike rys in
streeksmarkte fasiliteer en die invoerbeperkings op rys verminder. Die ingryping sal beide boere
en verbruikers bevoordeel, terwyl die handelsbalans gestabiliseer word.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/98136 |
| Date | 12 1900 |
| Creators | Nkurunziza, Benjamin |
| Contributors | Traub, Lulama, Stellenbosch University. Faculty of Agrisciences. Dept. of Agricultural Economics. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 88, xxii pages : illustrations, maps |
| Rights | Stellenbosch University |
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