Assessing the impact of Gikonko Joint Venture Farming on rice famer’s income and access to market. Case of UCORIBU farmers, 2011-2015

Abstract

This study assess the impact of joint venture farming on farmers‟ incomes and market access in Rwanda by using a case study of UCIBU (Union of rice cooperatives owner of 40% of Gikonko Rice Limited acquired through joint venture partnership with ICM owner of the remaining 60% of the factory). The study uses secondary data from UCORIBU and primary data solicited from 63 rice farmers and key informants, through the administration of a structured questionnaire and interview. The study findings show that in addition to increased prices of paddy rice paid on time, the Joint venture provides access to the necessary resources that contributes to increased output and quality which were the main constraints of paddy rice marketability and profitability. Some of these resources include extension services, credit on free interest, inputs, and guaranteed markets for their produce among others. Paddy rice Production has increased by (40%) from 2011 to 2015 and this increase enabled farmers to earn sufficient income to cover production cost and remain with an estimated annual minimum net income of 215000Rwf and annual maximum net income of 1850000Rwf. In addition, joint ventures farmers are provided bonus for meeting paddy rice delivery target. Per unit production a farmer gets Rwf 5 to 20 more than the market price. The joint venture paid dividends to farmers amounting to 57,791,46857Rwf.Thus the study concludes that joint venture can help small farmers raise their incomes through ready access to market as long as production and quality is increased. However, despite the achievements realized so far; there are a number of challenges affecting rice growers, among others, inadequate seed that is currently being used, insufficient technical assistance and shortage of water supply, necessity for rice growing. Therefore, the study recommends that, farmers should be given a valley dam to insure constant water supply in the area. Technical difficulties associated with production process should be addressed to reduce losses and keep increasing paddy production and quality.