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The contribution of coffee crops to socioeconomic development of Karenge sector in Rwamagana district. Case study of Kopakaka cooperative. period:2008-2011.

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par Evariste NIYONSENGA
INATEK - Bachelor's Degree 2012
  

Disponible en mode multipage

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INSTITUTE OF AGRICULTURE, TECHNOLOGY AND EDUCATION OF KIBUNGO

(INATEK)

THE CONTRIBUTION OF COFFEE CROPS TO SOCIOECONOMIC DEVELOPMENT OF KARENGE SECTOR IN RWAMAGANA DISTRICT.

CASE STUDY OF KOPAKAKA COOPERATIVE. PERIOD:2008-2011.

By

EVARISTE NIYONSENGA

A dissertationsubmitted to the Faculty of Education, Department of Economics and Management inpatial fulfilment of the requirements for the award of Bachelor's Degree in Economics with Education.

Supervisor: Dr THEODORE R.BUSORO

Ngoma, October2012

DECLARATION

I NiyonsengaEvaristehereby declare that the work presented in the book titled: The contribution of coffee crops to socio economic development of Rwamagana district in Karenge sector .case of KOPAKAKA cooperative. Is original research and has never been presented elsewhere for academic qualification. Where other people`s work is used references have been provided and in some cases quotations made.

Student'ssignature:...........................................................................................

EvaristeNIYONSENGA

DEDICATION

To my wife and children

To my sisters and brothers

To my friends and relatives

ACKNOWLEDGEMENT

First and for most my profound thanks got to the almighty God for his sustainability to me during all my life until this moment.I am highly recognizing all INATEK lecturers who provide to me with the necessary knowledge during my studies.

My heartfelt thanks go to my supervisorDr Théodore R. Busorowho devoted his previous time in supervising this work; his impeccable guidance toward the successful completion of this work can never be challenged.

Finally I acknowledge with much gratitude the efforts of my lady and friends who equipped me with all the life necessities as well as advising me and guiding me throughout my quest for knowledge.

May the almighty God bless you always.

LIST OF ABBREVIATIONS AND ACRONYMS

AC: After Christ.

BC: Before Christ.

BNR: Banque National du Rwanda.

COOPEC : Coopérative d'Epargne et de Crédit.

DFID:Department for International Development.

EDPRS: Economic Development and Poverty reduction Strategy.

FAO:Food and Agriculture Organization of the United Nations.

GDP: Gross Domestic Product.

HIV: Human Immunodeficiency Virus.

ICT: Information and Communication Technology.

KC: Kansas City.

KG: Kilo Gramm.

KOPAKAKA:Koperativey'AbahinzibaKawabaKarenge.

KOZIBI:KoperativeZigamaBigufashe.

MINAGRI: Ministry of Agriculture and Animal Resources.

NAEB: National Agricultural Export Board.

NCSR: National Coffee Strategy Revised.

NGO: Nongovernmental Organization.

OCIR: Office des Cultures Industrielles du Rwanda.(National Coffee BoardPlan for Agricultural Transformation)

PH: Potential Hydrogen.

PRSP: Poverty Reduction Strategy Paper.

PSTA: Plan Stratégique pour la Transformation de l'Agriculture.(Strategic

RCDA: Rwanda Coffee Development Authority.

SACCO: Saving and Credit Cooperative.

UK: United Kingdom.

US: United States.

USAID: United State Agency for International Development.

USD: United State Dollars.

USDA:United States Department of Agriculture.  

TABLE OF CONTENTS

DECLARATION i

DEDICATION ii

ACKNOWLEDGEMENT iii

LIST OF ABBREVIATIONS AND ACRONYMS iv

TABLE OF CONTENTS v

LIST OF TABLES viii

LIST OF FIGURE AND CHARTS ix

ABSTRACT x

CHAPTER ONE 1

GENERAL INTRODUCTION 1

1.1 Background of the study 1

1.2 Problem statement 2

1.3 Research question 4

1.4 Research Hypothesis 4

1.5 Research Objectives 4

1.6 Conceptual frame work 5

1.6.1 Independent variables 5

1.6.2 Dependent variables 5

1.7 Significance of the study 7

1.8 Scope of study 7

CHAPTER TWO 8

LITERATURE REVIEW 8

2.1 Definition and concepts 8

2.1.1 Coffee 8

2.1.2 Social 9

2.1.3 Economy 10

2.1.4 Socio-economics 10

2.1.5 Economic development 10

2.1.6 Cooperatives 11

2.2. Coffee over the world 11

2.2.1 Etymology of coffee 11

2.2.2 Cultivation of coffee 12

2.2.3 World Production 13

2.2.4. Roasting of green coffee 13

2.2.5 Storage of coffee 14

2.2.6. Commercialization of coffee 14

2.2.7. Faire trade coffee 15

2.2.8 Impact of coffee over the world 17

2.3 Coffee in Rwanda 18

2.3.1 Production 18

2.3.2 Evolution of coffee's quality in Rwanda 20

2.3.3 Prices of coffee of Rwanda 22

2.3.4 Marketing of coffee in Rwanda 23

2.3.5 Transport of coffee crops in Rwanda 25

2.3.4 Impact of coffee in economy of Rwanda 26

2.3.4.1 Contribution of coffee to entrepreneurship 26

2.3.4.2 Contribution of coffee to reduction of unemployment 27

2.3.4.3 Contribution of coffee to national incomes 28

CHAPTER THREE 30

METHODOLOGY 30

3.1 Methods and techniques of the research 30

3.2 Area of the study 30

3.3 Research design 30

3.4 Population 30

3.5 Sample size 30

3.6 Source of data 31

3.6.1 Primary data 31

3.6.2 Secondary data 31

3.7 Data collection instruments 32

3.7.1 Questionnaire 32

3.7.2 Interviews 32

3.7.3 Observation 32

3.8 Data processing procedures 33

3.8.1 Editing 33

3.8.2 Coding 33

3.8.3 Tabulation 33

3.9 Limitations of the study 33

CHAPTER FOUR 34

PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS 34

4.1Field of study description 34

4.1.1 Presentation of Rwamagana district 34

4.1.3 Presentation of cooperative KOPAKAKA 36

4.2 Identification of respondents 37

4.2.1 Identification of respondents by profession 37

4.2.2 Identification of respondents by sex 37

4.2.3 Identification of respondents by age 38

Source: primary data 38

4.3 Socio- economic contribution of coffee 38

4.3.1 The number of productive coffee trees per farmers 38

4.3.2 The income of farmers before and after becoming coffee farmers 39

4.3.3 The meal taken by farmers before and after becoming coffee farmers 40

4.3.4 The health insurance that have farmers before and after becoming coffee farmers. 41

4.3.5 Contribution of coffee in field of housing 42

4.3.6 Contribution of coffee to field of infrastructure 43

4.3.7 Contribution of coffee to investing activities 44

4.3.8 Contribution of coffee to saving 45

4.3.9 Contribution of coffee in education 47

4.4 Summary of the finding 47

CHAPTER FIVE 49

CONCLUSION, SUGGESTIONS, AND RECOMMENDATIONS 49

5.1 General conclusion 49

5.2 Recommendations 50

5.3 Suggestions for the further research 50

BIBLIOGRAPHY 51

APPENDICES 54

LIST OF TABLES

Table 1: Production of coffee in Rwanda 2

Table 2: Evolution of coffee prices 22

Table 3: Export development (Value in million of USD, Volume in Tons) 28

Table 4: Representations of respondents by profession 37

Table 5: Representations of members by sex 37

Table 6: Distribution of farmers by age 38

Table 7: Coffee trees that hold farmers 39

Table 8: Comparison of income before and after becoming coffee farmers 40

Table 9: Comparisons of times that farmers take meals per day 41

Table 10: Comparison of health insurance of farmers before and after becoming coffee farmers. 42

Table 11: The achievement of farmers in field of housing 43

Table 12: The achievement of farmers in field of infrastructure 44

Table 13: The achievement of farmers in the investing activities 45

Table 14: The annual saving of coffee farmers 46

LIST OF FIGURE AND CHARTS

Figure 1: Linking KOPAKAKA Cooperative with the socioeconomic development 2

Chart 1: Production of coffee in Rwanda 20

Chart 2: Evolution of coffee price 23

ABSTRACT

In the economy, the coffee is important. According to publications of OCIR-Café, by 2000, coffee process in Rwanda was a traditional way because there were only three washing stations. The traditional process decreased the production quality and quantity and the price of coffee was suffering the consequences. It waited for the month of October 2002 when the Rwandan government has adopted a new policy whose aim was to leave the regular coffee from no washing stations for high quality coffee and specialty. The subject, we wanted to give our participation in a study entitled «Contribution of coffee crops in socio economic development case of Rwamagana district Karengesector: 2008-2011.

To achieve the exploration of KOPAKAKA cooperative contribution and test the relationship between phenomenonsobserved, we are equipped with a questionnaire to identify the activities of coffee farmers of KOPAKAKA cooperative in improving the production of coffee and check the impact of the coffee farmers of the above cooperative in improving the socio-economic sector of the population of Karenge sector.

The answers provided by respondents and observations enabled us to achieve the following results: The KOPAKAKA cooperative activities play great contribution in socio conditions improvement, it rise the rate of entrepreneurship by investing in cultivation of coffee ,by building coffee washing station, by commercialization of coffee crops thus it contributes in reduction of unemployment ; it contributes also in the life conditions such as the improvement of times that farmers take food per day;the contribution in health insurance of coffee farmers ; it helps in the economic development such as building and rehabilitation duelling houses ,it helps them in the achievement of infrastructures,in the investing activities and it increases the saving rate.

We ended our work while recommending to NAEB to motivate people of favourable areas to maximize cultivation of coffee; to encourage investors to increase washing stations as cultivation of coffee increase;to motivate yearly coffee farmers who yield out great production of coffee crops.

CHAPTER ONE

GENERAL INTRODUCTION

1.1 Background of the study

Our country Rwanda is a land locked countrywhose land area is 26,338km2. Its location is between 1-3 degree of latitude, in South and 29-31 degree of longitude in East. 75 miles from equator.Its surface cultivated is shared as following: 47% for crops land; 20% for forest; 18% for pasture and 13% for others.The GDP is 400 USD per yearwhen the target is 900 USD per year.

National policy of science and technology and innovation is to transform Rwanda's currently agriculture based economy to knowledge based economy by year 2020. (MURENZI R. www.uis.unesco.org)

Our country as many other developing countries focus on economic development programs.One among them is to develop industrial culture. The coffee has been and it remains the important source of foreign currencies for Rwanda. For increase the production coffee and exportation revenues, political leaders supported by the agricultural institutions,promoted the culture of coffee by increasing a number of trees of coffee and instauration of washingstations of coffee.

Coffee has been grown in Rwanda since its introduction by German Missionaries in 1904. The crop was mainly kept by the colonial administration to respond to the need for coffee that they cherished but also to support the economy of the country. Coffee growing was then made compulsory and the number of coffee producers grew progressively and consequently, the number of coffee trees and the plantation area considerably increased. Office des cultures industrielles du Rwanda (OCIR) was created in 1945, with the mandate of fixing the qualitative norms and classification systems, generating and diffusing information pertaining to the coffee sector and establishing an environment of cooperation between different stakeholders that are engaged in the coffee sector.

In 1998, coffee production occupied around 6.3 percent of the total cultivated land (OCIR 1998). Meanwhile as production increased, private operators started setting up coffee processing factories.

The motivation of choosing this topic is to resort some results from the fact of increasing the number of coffee' trees, the production proportional to the number of coffee trees; revenue proportional to the numbers of trees; impact of revenue to the education, consumption, health, saving and investment

In order to incite the Rwandan citizens and the foreigners to invest more in the culture of coffee, the economic development plan and social of Rwanda were characterized by increasing national enterprises. Whose aim is to improve the quality of coffee.

1.2Problem statement

In general, the central and southern areas of Rwanda are moderately suitable for coffee growing with the yield varying from 200 to 900 kg of dry coffee per hectare. The highland region in the Northern Province is unsuitable for coffee because of very low temperatures. The lowland region of the eastern province is also not suitable for coffee growing due to insufficient rainfall and longer dry season; the soil fertility is too low for the coffee crop (OCIR 1998, MINAGRI 2000) almost all produced coffee is exported as its domestic consumption is quite low.

Apart from productions recorded during the period in the 1980's and some scattered peak years (1991, 1999, 2002 and 2004) the country's coffee production and exports declined specially since 1990. In 1992 farmers had started neglecting coffee.

Some of the causes which led to the fall of production are poor fertility of coffee plantations and poor performance of coffee extension activities. This degradation is also associated with genocide of 1994: many coffee producers were killed while others went into a prolonged exile; coffee extension workers were very few, which resulted in a lack of follow-up and supervision for coffee producers to care for the crop. Research on coffee was also disrupted following the shortage of necessary means (OCIR 1998). It is in the present decade that the crop is again taking off. In terms of quantity, the average production of coffee is now of 26,100 tons per year (OCIR 2005).

External factors are also important. These include the big reduction in coffee priceson the international market maintained on a low level due to overproduction of coffee in countries like Brazil and Vietnam. Since the competitiveness of Rwanda coffee is being based solely on the price, the consequences of the fall in the market price have had a huge impact on Rwandan coffee sector. Rwandan coffee producers continue to receive very low prices (OCIR 2005).

The quality of coffee depends on the maintenance of coffee trees in the cultivation stage. Other problems include inefficient systems of quality control in processing, insufficient price differentiation in relation to quality and excessive competition among factories and exporters (MINAGRI2004). The methods used by farmers in processing are traditional (depulping by stone) and were quite adequate when the quantity was low. However, with increasing quantity the traditional system failed andquality deteriorated. There were only a few washing stations which also lacked the appropriate equipment.

To meet the above challenges, since 1998 the Government, through OCIR Café, hasundertaken a promotional program me of investing in coffee production. The changing trends include the replacement of old varieties by more performing varieties, improving the general plantations' condition (weeding, mulching, pruning), using inputs (fertilizer, pesticides against diseases and pests), as well as the restructuring of the producers' environment (establishment and support given to producers'associations) in order to progressively take care of all the activities pertaining to output's increase (MINAGRI 2006).

The coffee quality is also being improved through making growers sensitive to producing high-quality coffee, strengthening the cooperative spirit within coffee producers' associations for the establishment of washing stations and encouraging private entrepreneurs to invest in the sector (MINAGRI 2006).

Results have started to show as the overall coffee production is now being revitalized in the different coffee producing regions of the country. Coffee production increased from 14,268 tons of green coffee in 1998 to 29,000 tons in 2004 (MINAGRI 2004); and the overall quality of coffee production has improved with high-quality coffee rising from 19.2 percent in 2000 to 45 percent in 2005 (OCIR2005).

For Rwamaganadistrict, and Karenge sector in particular; the previous problems revealed related to the degradation of quality and the great reduction in coffee prices, lead to the reduction of areas of coffee plantation in Karenge sector.

During that period the conditions of Karengecitizensdeclined and their contribution to the development of their region decreased. But in 2005, when MINAGRI started to improve the quality and strengthening the cooperative spirit within coffee producers and establishment of washingstations;the coffee farmers of Karenge sector launched KOPAKAKA cooperative with aim of improving the quantity and the quality of coffee crops and increasing the areas on which coffee is cultivated.And improvesocio economic development of Karenge sector.

1.3 Research question

Is therea causeand effect relationship betweenthe KOPAKAKA cooperativeand socioeconomic developmentof Karenge sector?

1.4Research Hypothesis

Hypothesis of research is to state the relationship between phenomenon observed. It is conception temporary of reality from the problem of study based on the reality and explorations made; we formulated the following hypothesis:

Based on the facts observed; it appears that KOPAKAKA cooperative contribute significantly to the improvement of socioeconomic development of Karenge sector.

1.5 Research Objectives

The research objective is to explore the contribution of cooperative KOPAKAKA activitiesin the improvement of socioeconomic development ofKarenge sector of Rwamagana District in Eastern province.

1.6 Conceptual frame work

After formulating the hypothesis, we developed research methods allows us to verify it. This work was to select items that can be modified and will be subject to direct manipulation. These are called "variables".

1.6.1 Independent variable

This is a factor that is selected and manipulated and is totally independent of behaviour observed.The independent variables of our subject are "KOPAKAKA Cooperative and its activities." Our research has investigated the activities of Cooperative in order to detect his contribution on socioeconomic development of members. By assessing the following indicators:

- Culture of coffee

- Farmers training

- Socio welfare facilities

- Job creation

1.6.2 Dependent variable

It is a measurable behaviour observed in a subject which is influenced by the independent variable. The dependent variables of our subject are "improvements in socio-economic situation of the population. Our research has used the appropriate methods and techniques to see the improvements shown by the members in the socio-economic development of Karenge Sector. By asking questions on the following points:

Socio development

- Education

- Health insurance

- Meals

Economic development

- Income

- Savings

- Investment

- Dwelling house

Figure 1: Linking KOPAKAKA Cooperative with the socioeconomic development

Cooperative KOPAKAKA activities

- Culture of coffee

- Farmers training

- Socio welfare facilities

- Job creation.

Socio development

- Education

- Health insurance

- Meals

Economic development

- income

- savings

- investment

- Dwelling house.

Improvement of socioeconomic development of Karenge sector.

Independents variables

Dependents variables

Independent variables:

1.7 Significance of the study

This research believes that it will contribute substantial for a numbers of people including researchers, government, and policy makers and myself as researcher.

To the researchers, the study will acts as a future reference who will require information about study. It will help to them to acquire skills and knowledge about the contribution of culture of coffee in socio-economic development, to the society; it will provide information on coffee crops, some recommendations provided by the researcher offer the founding. To the researcher, the study will help himtoacquire skills about the contribution of coffee crops in the socio economic development in Rwamagana District Eastern Province.

1.8Scope of study

The study conducted in Karenge Sector, in Rwamagana district where operates KOPAKAKAcooperative. My works consists in collection of data on the culture of coffee. For the best analysis and interpretation of data, the work is demarcated in space, in time and in domain.In time, the work is demarcated during the period of four years: from 2008 to 2011.In the domain, our study is in the economic domain.

CHAPTER TWO

LITERATURE REVIEW

«Traditionally, agriculture and forestry were central to rural life. They were the major employers of labour, the main sources of income within the rural economy and indirectly had a powerful influence on traditions, power structures and life styles» (Lane 1994,www.jcu.edu.au/business/public/groups/.../jcudev_012907.pdf, May 20, 2012)

This chapter attempts to review areas and various literature related to the culture of coffee, cooperatives and their values inrelation to socio-economic development. This section has a variety of resources to refer to the researcher restricted herself to only those sources that will directly to the study.

2.1 Definition and concepts

2.1.1 Coffee

According to the Wikipedia, free encyclopaedia ( www.en.wikipedia.org/wiki/coffee), Coffee is a brewedbeverage with a bitter, acidic flavour prepared from the roasted seeds of the coffee plant. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia, South Asia and Africa. Green (unroasted) coffee is one of the most traded agricultural commodities in the world. Coffee can have a stimulating effect on humans due to its caffeine content. It is one of the most-consumed beverages in the world.

Coffee has played a crucial role in many societies. The energizing effect of the coffee bean plant is thought to have been discovered in the northeast region of Ethiopia, and the cultivation of coffee first expanded in the Arab world. The earliest credible evidence of coffee drinking appears in the middle of the 15th century, in the Sufi shrines of Yemen in southern Arabia. From the Muslim world, coffee spread to India, Italy, then to the rest of Europe, to Indonesia, and to the Americas. In East Africa and Yemen, it was used in religious ceremonies. As a result, the Ethiopian Church banned its secular consumption, a ban in effect until the reign of Emperor Menelik II of Ethiopia. It was banned in OttomanTurkey during the 17th century for political reasons, and was associated with rebellious political activities in Europe ( www.en.wikipedia.org/wiki/coffee).

Coffee berries, which contain the coffee seeds or "beans", are produced by several species of small evergreen bush of the genusCoffea. The two most commonly grown are the highly regarded CoffeaArabica, and the "Robusta" form of the hardier Coffeacanephora. The latter is resistant to the devastating coffee leaf rust ( Hemileiavastatrix). Once ripe, coffee berries are picked, processed, and dried. The seeds are then roasted to varying degrees, depending on the desired flavor. They are then ground and brewed to create coffee. Coffee can be prepared and presented in a variety of ways.

2.1.2 Social

The term social refers to a characteristic of living organisms as applied to population's humans and other animals. It always refers to the interaction of organisms with other organisms and to their collective co-existence, irrespective of whether they are aware of it or not, and irrespective of whether the interaction is voluntary or involuntary. The word "Social" derives from the Latin word socii ("allies"), it is particularly derived from the Italian Socii states that historically allied with the Roman Republic, though they famously rebelled against Rome in the Social War of 91-88 BC.

In the absence of agreement about its meaning, the term "social" is used in many different senses and regarded as a fuzzy concept, referring among other things to:

Attitudes, orientations, or behaviours which take the interests, intentions, or needs of other people into account (in contrast to anti-socialbehaviour) have played some role in defining the idea or the principle. For instance terms like social realism, social justice, social constructivism, social psychology and social capital imply that there is some social process involved or considered a process that is not there in regular, "non-social" realism, justice, constructivism, psychology, or capital.

In contemporary society, "social" often refers to the redistributive policies of the government which aim to apply resources in the public interest, for example, social security. Policy concerns then include the problems of social exclusion and social cohesion. Here, "social" contrasts with "private" and to the distinction between the public and the private (or privatized) spheres, where ownership relations define access to resources and attention (http://en.wikipedia.org/wiki/Social).

2.1.3 Economy

An economy consists of the economic systems of a country or other area; the labor, capital and landresources; and the manufacturing, production, trade, distribution, and consumption of goods and services of that area ( www.en.wikipedia.org/wiki/economy).

A given economy is the result of a process that involves its technological evolution, history and social organization, as well as its geography, natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions.

2.1.4 Socio-economics

According to Gustav Cassel (1932),Socio-economic or social economics is an umbrella term with different usages. 'Social economics' may refer broadly to the "use of economics in the study of society. More narrowly, contemporary practice considers behavioral interactions of individuals and groups through social capital and social "markets" (not excluding for example, sorting by marriage) and the formation of social norms. In the latter, it studies the relation of economics to social values.

2.1.5 Economic development

According ASSIMWE, H.M. (2006), economic development is a sustained improvement in people's standard of living and welfare. It is a measure of quality of life of people. Economic development involves an improvement in the availability in the basic needs, an increase in the per capita income, an improvement in the variety of socio-economicindicators such as an increase in literacy rate, higher life expectancy, and reduction in poverty level, improved health, more education and others. Development incorporates a measure of human welfare.

2.1.6 Cooperatives

According to International Cooperative Alliance cited by www.en.wikipedia.org/wiki/-cooperative, «a cooperative ("coop"), co-operative ("co-op"), or coöperative ("coöp") is an autonomous association of persons who voluntarily cooperate for their mutual social, economic, and cultural benefit».Cooperatives include non-profit community organizations and businesses that are owned and managed by the people who use its services (a consumer cooperative) and/or by the people who work there (a worker cooperative).

A cooperative is a collectively-owned firm established to further the wellbeing of its members. In contrast to investor owned firms, co-op members are not primarily interested in financial return on investments but in the maintenance of services provided by the co-op. By definition, co-ops are firms that are not tradable (Markus, H., 2005:6).

According to DFID (2008) cited by Suleman A.C. (2009:3), the definition of co-operatives is built on four major catch words; first, they are formed by groups of people, who have a specified need or problem. Second, the organization is formed freely by members after contributing to its assets. Thirdly, the organization formed, is governed democratically in order to achieve desired objectives on equitable norms, and fourth, it is an independent enterprise promoted, owned and controlled by people to meet their needs (DFID: 2008). It is about peoples' organization to capture different opportunities in the economy where they can address their economic needs and aspirations. By the same token therefore, cooperatives can be formed in any sector of the economy of a country such as agriculture, minerals, industries and service sectors.

2.2. Coffee over the world

2.2.1 Etymology of coffee

The first reference to "coffee" in the English language is in the form chaoua and dates to 1598. In English and other European languages, coffee derives from the Ottoman Turkish kahve, via the Italian caffè. The Turkish word in turn was borrowed from the Arabic: `qahwah'. Arab lexicographers maintain that qahwah originally referred to a type of wine, and gave its etymology, in turn, to the verb ÞåÇqaha, signifying "to have no appetite",since this beverage was thought to dull one's hunger ( www.en.wikipedia.org/wiki/coffee).

2.2.2 Cultivation of coffee

a) Planting

The traditional method of planting coffee is to put 20 seeds in each hole at the beginning of the rainy season; half are eliminated naturally. A more effective method of growing coffee, used in Brazil, is to raise seedlings in nurseries that are then planted outside at six to twelve months. Coffee is often intercropped with food crops, such as corn, beans, or rice during the first few years of cultivation (James A., 1983).

The two main species grown: Arabica coffee is generally more highly regarded than Robusta coffee.Robusta tends to be bitter and have less flavour but better body than Arabica. For these reasons, about three-quarters of coffee cultivated worldwide is C. Arabica. Robusta strains also contain about 40-50% more caffeine than Arabica. For this reason, it is used as an inexpensive substitute for Arabica in many commercial coffee blends. Good quality Robusta beans are used in some espresso blends to provide a full-bodied taste, a better foam head (known as crema), and to lower the ingredient cost (Belachew M., 2003:763).

However, Coffeacanephora is less susceptible to disease than coffeeArabica and can be cultivated in lower altitudes and warmer climates where coffeeArabica will not thrive. The robusta strain was first collected in 1890 from the Lomani River, a tributary of the Congo River, and was conveyed from Zaire to Brussels to Java around 1900. From Java, further breeding resulted in the establishment of Robusta plantations in many countries. In particular, the spread of the devastating coffee leaf rust (Hemileiavastatrix), to which coffee. Arabica is vulnerable, hastened the uptake of the resistant robusta. Coffee leaf rust is found in virtually all countries that produce coffee (Waller J.M. and all, 2007:171).

b) Pests of coffee crops

Over 900 species of insect have been recorded as pests of coffee crops worldwide. Of these, over a third arebeetles, and over a quarter are bugs. Some 20 species of nematodes, 9 species of mites, several snails and slugs also attack the crop. Birds and rodents sometimes eat coffee berries but their impact is minor compared to invertebrates.In general, Arabica is the more sensitive species to invertebrate predation overall. Each part of the coffee plant is assailed by different animals. Nematodes attack the roots, and borer beetles burrow into stems and woody material,the foliage is attacked by over 100 species of larvae (caterpillars) of butterflies and moths (www.en.wikipedia.org/wiki/coffee).

c) Management of the pests

Mass spraying of insecticides has often proven disastrous, as the predators of the pests are more sensitive than the pests themselves.Instead, integrated pest management has developed, using techniques such as targeted treatment of pest outbreaks, and managing crop environment away from conditions favouring pests. Branches infested with scale are often cut and left on the ground, which promotes scale parasites to not only attack the scale on the fallen branches but in the plant as well (Idem).

2.2.3 World Production

According to USDA (2009), in 2009 Brazil was the world leader in production of green coffee, followed by Vietnam, Indonesia and Colombia. Arabica coffee beans are cultivated in Latin America, eastern Africa, Arabia, or Asia. Robusta coffee beans are grown in western and central Africa, throughout Southeast Asia, and to some extent in Brazil.

Beans from different countries or regions can usually be distinguished by differences in flavor, aroma, body, and acidity. These taste characteristics are dependent not only on the coffee's growing region, but also on genetic subspecies (varietals) and processing. Varietals are generally known by the region in which they are grown, such as Colombian, Java and Kona (Castle T.J., 1991:158).

2.2.4. Roasting of green coffee

According Kummer (2003:37), coffee is usually sold in a roasted state, and with rare exceptions all coffee is roasted before it is consumed. It can be sold roasted by the supplier, or it can be home roasted.The roasting process influences the taste of the beverage by changing the coffee bean both physically and chemically. The bean decreases in weight as moisture is lost and increases in volume, causing it to become less dense. The density of the bean also influences the strength of the coffee and requirements for packaging.

The actual roasting begins when the temperature inside the bean reaches approximately 200 °C (392 °F), though different varieties of beans differ in moisture and density and therefore roast at different rates. During roasting, caramelisation occurs as intense heat breaks down starches in the bean, changing them to simple sugars that begin to brown, changing the colour of the bean (Kummer, 2003:261).

Sucrose is rapidly lost during the roasting process and may disappear entirely in darker roasts. During roasting, aromatic oils and acids weaken, changing the flavour; at 205 °C (401 °F), other oils start to develop. One of these oils is caffeol, created at about 200 °C (392 °F), which is largely responsible for coffee's aroma and flavour (Dobelis, I.N., 1986:370-371).

2.2.5 Storage of coffee

Once roasted, coffee beans must be stored properly to preserve the fresh taste of the bean. Ideally, the container must be airtight and kept in a cool, dry and dark place. In order of importance: air, moisture, heat, and light are the environmental factors responsible for deteriorating flavour in coffee beans.

Folded-over bags, a common way consumers often purchase coffee, are generally not ideal for long-term storage because they allow air to enter. A better package contains a one-way valve, which prevents air from entering

In 1931, a method of vacuum packed cans of coffee was introduced, in which the roasted coffee was packed, ninety-nine percent of the air was removed and the coffee in the can could be stored indefinitely until the can was opened. Today this method is in mass use for coffee in a large part of the world. (Brown A. www.foodnetwork.com)

2.2.6. Commercialization of coffee

Coffee is bought and sold by roasters, investors and price speculators as a tradable commodity in commodity markets. Coffee futures contracts for Grade 3 washed arabicasare traded on the New York Mercantile Exchange under ticker symbol KC, with contract deliveries occurring every year in March, May, July, September, and December.Coffee is an example of a product that has been susceptible to significant commodity futures price variations.

Higher and lower grade Arabica coffees are sold through other channels. Futures contracts for Robusta coffee are traded on the London International Financial Futures and Options Exchange and, since 2007, on the New York Intercontinental Exchange. Coffee has been described by many, including historian Mark Pendergrast, as the world's "second most legally traded commodity (Pendergrast M, 2009:38-41).

The coffee industry currently has a commodity chain that involves producers, middlemen exporters, importers, roasters, and retailers before reaching the consumer. Middlemen exporters, often referred to as coffee "coyotes," purchase coffee directly from small farmers. Large coffee estates and plantations often export their own harvests or have direct arrangements with a transnational coffee processing or distributing company. Under either arrangement, large producers can sell at prices set by the New York Coffee Exchange.

Green coffee is then purchased by importers from exporters or large plantation owners. Importers hold inventory of large container loads, which they sell gradually through numerous small orders. They have capital resources to obtain quality coffee from around the world, capital normal roasters do not have. Roasters' heavy reliance on importers gives the importers great influence over the types of coffee that are sold to consumers (www.globalexchange.org).

According FAO (2003), behind petroleum, coffee is the second most traded product in the world. Worldwide, 6.7 million metric tons of coffees were produced annually in 1998-2000, and the forecast is a rise to seven million metric tons annually by 2010.

2.2.7. Faire trade coffee

According to the World Fair Trade Organization and the other three major Fair Trade organizations (Fair-tradeLabelling Organizations International, Network of European World shops and European Fair Trade Association), the definition of fair trade is "a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade". The stated goal is to offer better trading conditions to marginalized producers and workers. Fair trade organizations, along with the backing of consumers, campaign for change in the rules and practice of conventional international trade. However, not all coffee producers are happy with the methods or results.

Fair Trade organizations promote a trade environment in which the coffee importer has a direct relationship with the coffee producer, excluding the middlemen. Coffee importers provide credit to certified farmers to help them stay out of debt with coffee traders so they can develop long-lasting trade relationships. Producer organizations are paid a floor price (Fair-trade Minimum Price) of US$ 125 cents per pound for Fair-trade certified washed Arabica and US$ 120 cents for unwashed Arabica, or the market price, if higher. The free trade price of coffee rose above this minimum in September 2007, but due to recent economic events, the free trade price dropped back below this minimum in October 2008. The fair trade price for (conventional natural Robusta) coffee has been $1.01 since June 2008. The price of conventional commodity coffee was also over $1 in 2008, but about $0.70 in 2009 (www.fairtrade.net)

Coffee was incorporated into the fair-trade movement in 1988, when the Max Havelaar mark was introduced in the Netherlands. The very first fair-trade coffee was an effort to import a Guatemalan coffee into Europe as "Indio Solidarity Coffee".(Rice R.A., 2001:39-66)

Since the founding of organizations such as the European Fair Trade Association (1987), the production and consumption of fair trade coffee has grown as some local and national coffee chains started to offer fair trade alternatives.For example, in April 2000, after a year-long campaign by the human rights organization Global Exchange, Starbucks decided to carry fair-trade coffee in its stores.Since September 2009 all Starbucks Espresso beverages in UK and Ireland are made with Fair-trade and Shared Planet certified coffee (DePelsmacker and all, 2005:363-385).

A 2005 study done in Belgium concluded that consumers' buying behavior is not consistent with their positive attitude toward ethical products. On average 46% of European consumers claimed to be willing to pay substantially more for ethical products, including fair-trade products such as coffee. The study found that the majority of respondents were unwilling to pay the actual price premium of 27% for fair trade coffee (Idem).

2.2.8 Impact of coffee over the world

The coffee sector played a seminal role for the economic and social modernization of Latin America. It was the main dynamic factor for the economies of many countries and a pivotal element of social transformation. It was, perhaps, the principal force behind the introduction of free labor in many Latin American countries. Today, at the beginning of a new century, the coffee sector continues to play an important role in the social and economic coffee sector played an important role in many countries such as Brazil, Colombia, Costa Rica,and a bit later and to a lesser degree in other countries in South and Central America. To be sure,the coffee sector grew during that period to become a catalyst for the economic and socialmodernization in those countries.

On the economic side, coffee was one of the most important export items, generatinghard currency and having a major impact on the gross domestic product. The coffee sector wasone of the pillars of the economy. For example, around 1925, coffee represented around seventypercent of Brazil's total exports and around eighty percent of Colombia's total exports.

As Werner Baer states in his book «The Brazilian Economy», coffee had many secondaryeffects on the economy such as employment of free immigrant labor, foreign investment ininfrastructure, capital accumulation of coffee growers, and the derived growth of industry.1

Additionally, the demand for free labor led many coffee producers in Brazil to join the campaignfor the abolition of slavery. Similarly, Roberto Junguito and Diego Pizano in their book«Production de Café en Colombia» reminds us that the economic relevance of coffee was notlimited to its impact on growth via increased exports.2 They suggest that coffee has had a clearlink with the development of other sectors and with the overall development process ofColombia. Among other impacts they stress the links between coffee production withemployment and the social situation given the activity's high demand for labor, its relation withpublic finances, its impact on industrial, regional, and institutional development and its role in national politics.

Coffee production also stimulated the insertion of Latin American economies in the world trade. In this period, given its high level of dependence on external markets, the price of coffee was the principal factor in guaranteeing equilibrium in the balance of payments and, as a consequence, guaranteeing macroeconomic stability and economic growth. Income generated by coffee production and exports created domestic demand in the industrial sector in many countries, allowing for the diversification of their economies.In other words, domestically, social development was highly dependent on the jobscreated and sustained by the production and export of coffee. There is no doubt that coffee was adynamic factor in many countries of Latin America in the early twentieth century.

Income generated by coffee exports had an important role in creating demand for the domesticmanufacturing sector, and, according to some analysts, export tax revenues helped thegovernment to support the industrial development in many countries of the region. It is clear that coffee is on the base of the economic and social development in manyareas of our region. At its peak, the coffee sector generated thousands of jobs and allowed forsome social mobility of people involved in the activity. Jobs, wages, freedom, migration, andsocial mobility were the elements of the coffee economy in such countries as Brazil, Colombia,El Salvador, and Guatemala.

2.3 Coffee in Rwanda

2.3.1 Production

Coffee has been grown in Rwanda since its introduction by German Missionaries in 1904. The crop was mainly kept by the colonial administration to respond to the need for coffee that they cherished but also to support the economy of the country. Coffee growing was then made compulsory and the number of coffee producers grew progressively and consequently, the number of coffee trees and the plantation area considerably increased. The National Coffee Board (OCIR) was created in 1945, with the mandate of fixing the qualitative norms and classification systems, generating and diffusing information pertaining to the coffee sector and establishing an environment of cooperation between different stakeholders that are engaged in the coffee sector. In 1998, coffee production occupied around 6.3 percent of the total cultivated land (OCIR, 1998). Meanwhile as production increased, private operators started setting up coffee processing factories.

Rwanda produces Arabica coffee of bourbon and typicalspecies. In general, the coffeetree grows well and gives a sufficient production in regions with altitude between1400 and 1900 meters, rainfall between 1500 and 1600 mm, temperature between 18°C and 22° C and soils with acidity levels (pH) between 4.5 and 6, which are fertile,fragile and quite permeable (MINAGRI, 2004). Even though coffee is interspersed inall parts of the country, regions of suitability to its cultivation were identified relativeto the above characteristics (OCIR 1998). For instance the shores of Lake Kivu in the Western province of the country are suitable for coffee growing with very goodproductivity. The rich volcanic soils, rainfall distribution and clement yearlongtemperatures favour the slow maturation of the coffee bean which is good for thecoffee taste. The productivity per hectare varies between 1100 and 1600 kg of drycoffee.

In general, the central and southern areas are moderately suitable for coffee growingwith the yield varying from 200 to 900 kg of dry coffee per hectare. The highlandregion in the Northern Province is unsuitable for coffee because of very lowtemperatures. The lowland region of the eastern province is also not suitable forcoffee growing due to insufficient rainfall and longer dry season; the soil fertility istoo low for the coffee crop (OCIR 1998, MINAGRI, 2004). Mulch, manure andsometimes chemical fertilizer are used to maintain soil fertility. Coffee is harvestedbetween the months of March and July (MINAGRI, 2004).

According to the research done by NAEB during 2011, Rwanda has about 90 million coffee trees with over 400,000 coffee farmers operating on an estimated area of about 35,000 hectares. The production recorded from 2008 is represented in the following table below.

Table 1: Production of coffee in Rwanda

Year

Production in tons

2008

21, 000

2009

16,000

2010

19,000

2011

16,371

Source: NAEB, Annual report 2011.

Chart 1: Production of coffee in Rwanda


Source: NAEB, Annual report 2011.

The above table shows that the production of 2008 was 21000tons ,the production of coffee was decreased in 2009 until 16000 tons a decrease was 5000 tons which is 23.8% ;in 2010 the production was increased up to 19000tons an increase was 3000tons which is 18.7% ,where as in 2011 the production has been 16371 tons here the production was decreased to 2629tons then it was decrease of 13.29% this report shows that the production of coffee is fluctuated; means that if the production was high in the previous year it fall in the following year.

2.3.2 Evolution of coffee's quality in Rwanda

Rwandan coffee is among the top rated coffees in the US, European and the Asian coffee markets. This coffee is raising the coffee industry's profile in its awareness creation campaigns. The taste of Rwandan coffees has outperformed many of the coffees that are delivered to different international coffee events because of its balanced flavor, aroma and fruity tastes (www.naeb.gov.rw).

This positive rating has boosted the industry's ongoing branding efforts and has ultimately raised demand for Rwandan coffee as consumers increase their uptake. However, the biggest part of Rwandan coffee usually go to blenders who mix it with the produce from other countries before the final product is bought by the consumer. Rwandan coffee can still obtain a high intrinsic value as a single origin for the end users and branding it for the country can provide an opportunity to penetrate various niche markets (www.naeb.gov.rw).

The coffee buyers from all over the world recognize Rwanda for the ability to provide the type of beans they require to make their coffee businesses a success.

- Arabica coffee: Arabica coffee represents more than 98 percent of all the coffees produced from Rwanda.

- Robusta beans: The Robusta market represents less than two percent of all coffee produced in Rwanda.

- Value added coffees: These are coffees that are roasted and packaged. Approximately 2% of the total coffee produced is sold in a value added form.

The quality of coffee depends on the maintenance of coffee trees in the cultivation stage. Other problems include inefficient systems of quality control in processing, insufficient price differentiation in relation to quality and excessive competition among factories and exporters (PSTA, 2004). The methods used by farmers in processing are traditional (depulping by stone) and were quite adequate when the quantity was low. However, with increasing quantity the traditional system failed and quality deteriorated. There were only a few washing stations which also lacked the appropriate equipment.

To meet the above challenges, since 1998 the Government, through OCIR Café, has undertaken a promotional programme of investing in coffee production. The changing trends include the replacement of old varieties by more performing varieties, improving the general plantations' condition (weeding, mulching, pruning), using inputs (fertiliser, pesticides against diseases and pests), as well as the restructuring of the producers' environment (establishment and support given to producers' associations) in order to progressively take care of all the activities pertaining to output's increase (MINAGRI, 2006).

The coffee quality is also being improved through making growers sensitive to producing high-quality coffee, strengthening the cooperative spirit within coffee producers' associations for the establishment of washing stations and encouraging private entrepreneurs to invest in the sector (MINAGRI, 2006).

Results have started to show as the overall coffee production is now being revitalized in the different coffee producing regions of the country.

2.3.3 Prices of coffee of Rwanda

Price is the money to pay in exchange for goods or services; it is also a value of an item in money term.(ASIIMWE, H.M., 2006:139) The following table presents the prices of coffee of Rwanda from 2008 until 2011.

Table 2: Evolution of coffee prices

Year

Unit price USD/kg

2008

3.62

2009

3.47

2010

3.96

2011

4.78

Source: NAEB, annual report 2011.

Chart 2: Evolution of coffee price

Source: NAEB, 2011.

This graph represents the price of coffee from 2008, where the price was 3.62 u s dollars. The price has increased in 2009 up to 3.47 us dollars, in 2010the price has increased once again up to 3.96. And in 2011 the price raised up to 4.78 us dollars. The word coffee price increased significantly leading to the overall increase of coffee prices. Lower production in some central Mercian countries and Columbia andunfavorableclimatic conditions in several coffee producing countries attributed to this(from co annual review 2008/2009)

2.3.4Marketing of coffee in Rwanda

In many developing countries, governments are heavilyinvolved in the agriculture sector, and that certainly holdstrue in Rwanda, where coffee has been a major export fordecades. The Belgian government as well as the two independent,pre-genocide governments controlled importantaspects of the coffee trade for their political and financialgain. Through compulsory production, export taxes, and amonophony export control agency, these regimes capturedthe profits of mostly poor coffee farmers, and used thefunds to help maintain political power (Bates 1981). Producershad little incentive to invest in the production ofhigh-quality coffee, and so for decades Rwandans produced a small volume of low-quality coffee.Significant government involvement in Rwanda's coffeesector began in the 1930s, when the Belgian colonial governmentlaunched a series of «coffee campaigns.» Governmentauthorities built nurseries and supplied seeds, butthey also required Rwandan farmers to plant coffee trees(Dorsey 1983). The government also introduced pricerestrictions, imposed mandatory quality guidelines, andissued special licenses that allowed only some firms to purchasecoffee. Export taxes were imposed on coffee sales, andindividual income taxes were imposed on producers, which helped support them and the colonialgovernment.

Following Rwanda's independence, from 1962-1973, the government retained most of these policies becauseit had limited alternatives for raising revenue. A governmentMarketing board (OCIR, subsequently OCIR-Café),together with a monophony export company, Rwandex,purchased, and then sold on world markets, the vast majorityof coffee grown in Rwanda. The farm gate price was set bythe government.3 Middlemen bought beans from farmersand sold them to Rwandex, which in turn sold them toforeign buyers. The locations where smallholders broughttheir beans for purchase acted as «the economic arm of theGitarama (Verwimp 2003).Heavy government involvement in the coffee sector continued from 1973 to 1994.Duringthe 1970s and 1980s, as world coffee prices rose, coffeeexports provided between 60 and 80 percent of Rwanda'sexport revenue (Berlage, Capéau, and Verwimp 2004).The government ensured control of these importantrents by appointing relatives and political supporters.

Today, the Rwandan government is less directly involved inthe coffee sector. Farmers have more choice about what togrow, to whom to sell their beans, and how to market theirproduct. Private sector investment in the sector is rising. Thisincreased openness is part of a larger government effort toimprove economic growth in the country. Rwanda's Vision2020 is a strategic plan for economic change. This plan has,since 2003, provided a guideline for sectoral policy settingwith Rwanda's ministries (MINECOFIN, 2007).

The goals created by Vision 2020, together with Rwanda'sPoverty Reduction Strategy Paper (PRSP) and the subsequentEconomic Development and Poverty Reduction Strategy (EDPRS), include improving the institutional environmentto allow for increased private sector developmentand infrastructure improvements, focusing on good governance(including democratization, national reconciliation,political stability, and security), improving agriculturalproductivity, improving human capital through investmentsin health and education, creating a service-basedeconomy with a focus on ICT (information and communicationtechnology), reducing external support, relying more export and promoting regional integration (MINECOFIN, 2007).

Some progress has been made toward achieving the Vision2020 goals. Real GDP growth has been strong for more thana decade: 10.8 percent over 1996-2000 and 6.4 percent over2000-06 (MINECOFIN, 2007), reaching a high of 11.2 percent in 2009 (althoughit was estimated to fall to under 5 percent for 2010). With an emphasis on private-sector-ledgrowth and improvements in the environment for doingbusiness, the economy is diversifying, merchandise trade levels are rising, and the service sector is expanding. Particularlyfor rural Rwandans, reform in the coffee sector isplaying an important part in helping thousands of farmersincrease their incomes, by creating jobs and providingopportunities for new skills training. The reform measuresare also strengthening human and social capital and, in theprocess, may also be generating valuable social benefits.

Commercialization contribute to the improvement of socio conditions because from the harvest of coffee cherries of farmers to the world market ,it passes to many categories of traders who gain from it and improve their socio life conditions

2.3.5 Transport of coffee crops in Rwanda

Rwanda as a landlocked country with limited paved roads in rural areas where most coffee is grown, transport costs in Rwanda are high. Diop, Brenton, and Asarkaya (2005) argue that Rwanda's smallholder subsistence farmers are disconnected from markets as a result of «extremely high» transport costs. The authors estimate that transport costs from farm gates to the export port of Mombasa were 80 percent of the producer price.20 Transport within Rwanda itself was estimated at 40 percent of the producer price. If transport costs were reduced, through the development of better rural infrastructure and, in particular, more effective rural transport routes, access to markets would improve and poverty levels would likely be reduced. The authors find that a 50 percent reduction in the transport costs in rural areas would lead to a 20 percent increase in producer prices for coffee, which in turn would reduce poverty levels among coffee farmers by more than 6 percent. Given the continued emphasis on coffee production as a strategy to alleviate rural poverty, improving the rural transport system will be an important way to connect farmers to markets and to increase their household income.Transport of coffee contribute to the social conditions improvement ,the coffee cherries harvested from farmers need many workers for transporting this one to the industries of transforming coffee .thus these workers earn from this transport of coffee.

2.3.4 Impact of coffee in economy of Rwanda

2.3.4.1 Contribution of coffee to entrepreneurship

Entrepreneurs are investingin building coffee-washing stations, where cherries areprocessed for sale. Rural communities are forming cooperatives,some of which also build washing stations and processcherries. Exporters are competing for opportunities to sellRwanda coffee to foreign buyers. Other entrepreneurs haveestablished cafés that feature local coffee. In other words,along a value chain, Rwandans are benefiting from theopportunity to produce and sell specialty coffee.At the production level, thousands of Rwanda's smallholderfarmers are benefiting from higher coffee prices forfully washed specialty coffee.

NGOs have helped farmers establish cooperatives andhave trained co-op members in quality control, processing,and marketing efforts. To date, more than 100 washing stationshave been built around the country with the supportof the government, donors, NGOs, and the private sectoras a result, Rwanda is producing more high qualitycoffee and demand for the country's specialty coffeeis increasing.Rwanda's coffee industry is that more of the farmers(approximately 500,000) who grow coffee have an opportunityto sell their beans for higher prices. The price thatcooperatives and private sector coffee-washing stations arepaying farmers for cherries rose from between 60 and 80Rwandan francs in 2004 to between 160 and 180 Rwandanfrancs in 2008 (MINAGRI, 2008).

OneStudy finds that farmers who sell coffee cherries to washingstations increase their annual expenditures by 17 percentcompared with farmers who sell lower-quality parchmentcoffee (MUREKEZI and LOVERIDGE, 2009). The samestudy indicates that since reform, coffee farmers haveincreased their food consumption and their overall householdexpenditures, leading to improved food security andto generally improve economic conditions for coffeefarmers.

2.3.4.2 Contribution of coffee to reduction of unemployment

As of 2006, 4,000 jobs had been created at coffee-washingstations (USAID publication 2006). Though many of theseare part-time jobs during the harvest season, others arefull-time positions managing stations and cooperatives.Co-op and washing-station employees are learning valuablebusiness skills: accounting, marketing, and negotiating.An estimated 100 Rwandans have learned to cup coffee 12at milling operations and at exporters, other Rwandans sortbeans, operate milling equipment, and prepare beans forshipment. And as the new coffee culture grows in Rwanda,jobs are starting to be created in retail outlets such as thepopular Bourbon Café in Kigali.

Although Rwanda has made good progress in the specialtycoffee sector, stakeholdersrecognize that more mustbe done to consolidate these gains and to direct attentionto the most pressing problems in the sector. To refocusattention, the Rwandan government issued a revisedNational Coffee Strategy (NCSR) in 2009. The NCSR createda modified strategy for the coffee sector; one thatbuilds on lessons learned implementing the 2002 strategy.It sets a new, lower production target of 33,000 tons ofcoffee by 2012, 19,000 tons of which is to be fully washed.The government anticipates revenues of $115 million ifthis much coffee is produced (Rwanda Ministry of Agricultureand Animal Husbandry and Ministry of Trade andIndustry 2008).The new policy identifies five target projects: improvingfarming techniques, providing support to make washing (MINAGRI 2008)

The new policy identifies five target projects improving forming techniques providing support to make washing stations more profitable, helping private exporters improvemarketing and sales, conducting a census of all coffee-growingareas, and partnering to do toll roasting in China and theMiddle East.13 In an effort to add more value locally, theRwanda Coffee Development Authority (RCDA) has partneredwith the Hunter Foundation to build a factory to roastand package coffee locally. The hope is that this effort willproduce more than 100 full-time jobs and another 2,000indirect jobs.14 While coffee production cannot, by itself,solve the many problems faced by the poor in Rwanda,changes in the industry are helping coffee farmers and otherworkers in the industry better cope with poverty, and thesechanges also seem to be generating positive social benefits.

The coffee from its cultivation necessarily need workers `, its harvest need workers, its transportation provide labour, its commercialization provide also labour, the washing station need workers. All these above process provide employment from it, socio conditions are improved; and then great part of society gain good conditions of live from coffee.

2.3.4.3 Contribution of coffee to national incomes

The Rwandan exports remained dominated by traditional export products (coffee, tea and minerals) representing 60.2% of the total export earnings in 2010. Tea exports have continued to perform better in both value and volume increasing by 15.2% and 15.5% respectively, resulting mainly from stable international prices.Coffee exports also performed better than 2009 increasing highly by 50.4% in value and by 21.6% in volume as a result of improvement in domestic production and high international prices. Driven by overall upward trend of prices on international markets for minerals, the Rwanda mining exports value increased by 22.4% despite a decline in volume by 10.3% in 2010 compared to 2009. The increase in prices is mostly attributed to tin whose prices rose by 62.3% from an average of USD 6.69/kg in 2009 to 10.86/kg in 2010.

Table 3: Export development (Value in million of USD, Volume in Tons)

 

2009

2010

Change

Coffee

14992.36

37.29

18235.85

56.08

22%

50%

Tea

18689.30

48.24

21528.48

55.71

15%

15%

Minerals

6093.54

55.43

5466.35

67.85

-10%

22%

Others

 

93.98

 

111.63

 

25%

Total exports

 

234.94

 

297.28

 

27%

Source:BNR, Statistic Department, 2010.

The value of other exports including re-exports representing 38% of the total export earnings in 2010 has increased by 18.6%, when taking into consideration cross border survey data. Other export products are dominated by a set of products such as bovine and cattle, wheat flour, beans, hides and skins, pyrethrum etc... Re-exports are dominated by Tin with a share of 69% of total re exports.

Compared to 2009, coffee exports increased by 50% in 2010 from 37.3 million USD to 56 million of USD. The situation resulted from large increase in volume by 22% from 14,992 tons in 2009 to 18,235.8 tons in 2010. The international prices also recorded an increase of 23.7% during the period under review.

The volume of fully washed coffee exported increased from 3,209 tons in 2009 to 3,957 tons in 2010. Its exports value represented 28% of the totalvalue of coffee exported in 2010. Despite the progressive increase, the proportion of the fully washed coffee exported remains Low compared to the objective of transforming 85% of the production into fully washed coffee in 2012.

Compare to 2009, tea exports value recorded good performance with an increase of 15% in 2010 resultingessentially from the increase of volume by 15% from 18,689 tons to 21,528 tons while the unit price was quite stable from 2.58 USD/KG to 2.59 USD/kg in 2010.

Mining sector benefited from overall upward trend of prices minerals on international markets. Rwanda mining exports value increased by 22% despite a decline in volume by 10.3% in 2010 compared to 2009. The increase in prices is mostly attributed to tin whose prices rose by 62.3% from an average of USD 6.69/kg in 2009 to 10.86/kg in 2010. Nevertheless, in 2010, the overallmineral production increased by 9.3%; especially due to Tin with a share of 80.2% and which increased by 25.6% whileColombotantalite and Wolframdeclined by 43.0% and 12.2% respectively. The rise in the volume of tin was prompted by the increase in price compared to 2009. But mineral exports volumedeclined by 10% due to the time Lag between the production-processing and exports periods as well as the required time of building enough quantity to export.

The above data illustrate that the coffee contribute more in increasing of national income, it rise this one proportionally to the quantity of tons exported ,if the quantity is high,national income from coffee increase also proportionally to the word price .thus if the quantity of coffee to export increase national income from coffee will increase too.

CHAPTER THREE

METHODOLOGY

This study was carried out in Rwamaganadistrict of eastern province in Karenge sector Therationale behind choosing this area is that coffee production is successful inthe former area due to its natural soil endowment while the latter is known for itscooperative thrive in the coffee sector This was viewed as giving representativeness of impact of coffee in socio economics development in Ramayana district.

3.1 Methods and techniques of the research

Several techniques were used to get the data required such as literature research, discussion with key informants, survey and observation. An explanation of how eachwas performed follows below.

3.2Area of the study

Due to financial and time constraints, this research was conducted in Karenge sector,Rwamagana district, Eastern province of Rwanda

3.3Research design

In order to acquire accurate and concurrent research findings, the researcher used qualitative and quantitative methodologies and also the questionnaires and interviews are used in data collection as research techniques.

3.4Population

The population of this research was 1020members of cooperative KOPAKAKA.

3.5Sample size

In this research, the researcher used random and systematically sampling techniques in order to select the appropriate sample size. According to Grinnell and William (1990:118) defined the population as the totality of persons or objectives which the study is concerned.The population of this research will be composed of members of cooperative KOPAKAKA living in Karenge sector Rwamagana District. From the targeted of respondents, a simple size of 102 from 1020beneficiaries will be targeted by using systematic random sampling frame, a starting point is chosen at random, and thereafter at regular intervals.

1020:102=10. So every 10th beneficiaries is chosen after a random starting point between 1 and 10 if the random starting point is 10, then the beneficiaries selected are 10,20,30,40,50,60....1020.

Due to aim of having a successful study, the information was collected from one hundred and two respondents both females and males who were aged twenty one (21) and above years old.

3.6 Source of data

In view of gathering useful data, the researcher used data from both primary and secondary source of data

3.6.1 Primary data

According to Kakooza, (1990), Primary data is the unprocessed information that is found from the field (during process of interviewing and questioning the respondents.)

The primary data was collected through arrangement of formal and informal discussions, questionnaire and interviews

3.6.2 Secondary data

This is the source data which the researcher used to collect the information from documents, publications, government reports, textbooks, magazines, convention reports, libraries in order to be documented in matters of the research topic. So, the researcher visited different libraries, e-library, annual reports and so and so on.

3.7 Data collection instruments

In collection of data, the researcher used only three research instruments which include questionnaire, and interview and observation.

3.7.1 Questionnaire

According to Kakooza (1996), questionnaire is an instrument that consists of a set of questions to which the subject responds in writing. Like any good test, questionnaires must ask for information that Hundred and two (102) respondents can follow without assistance.

This technique helped the researcher to collect primary data through a survey based on self-administered questionnaires with both open-end and close-end questions.

3.7.2 Interviews

According to Cambridge international dictionary English standard, (Blackman, 1998), an interview is a series of questions in formal or informal situation, usually in order to obtain information about different themes, an interview is face-to-face communication between interviewers and interviewees that is why the researcher asked prepared and none prepared questions to three respondents(Representative of cooperative KOPAKAKA, Agronomist of sector Karenge and Agronomists of Rwamagana district) with view of knowing their reactions about the role of coffee in their socio economics development.

3.7.3 Observation

Observations made during interviews or when travelling around the rural areas andfarms are also important in explaining certain findings. For instance, farmers madereflections on the many problems they faced in the past and how they used to dealwith them. This provided an understanding of the cooperatives benefits that were notmentioned in any document.

Through visits of farmers in their homes, observations were made as to how the coffee farmers live in their home; how their houses are built; their infrastructures and the economic development of Karenge sector.

3.8 Data processing procedures

Data processing referred to the categorization of responses into meaningful information in order to carry out their patterns.

3.8.1 Editing

It is a process that was carried out after data collection process in order to ensure that the information collected from the respondents was accurately recorded. The researcher edited the recorded responses in respect of cross checking all collected questionnaires to ensure that all wrong entries were corrected.

3.8.2 Coding

This was consisted of translating edited responses into numerical figures or terms.A complete coding schedule was done to ensure that various responses obtained were classified into meaningful forms so as to bring out those essential patterns of interest

3.8.3 Tabulation

According to Alton, (1971), once data is edited and coded the following step is to put together them in same kind of table and may undergo some other forms of statistical analysis. This kind ofstatisticaltables show the number of occurrences of responses to particular theme.

3.9 Limitations of the study

In processes of carrying out this research the researcher faced the following constraints:Conducting out research, while studying and working was a limiting factor for the success of this research; therefore, the researcher visited many times the supervisor, members of cooperativeKOPAKAKA and agronomists of Karenge sector and Rwamagana district.

CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS

This chapter attempts to present, analyze and interpret the various research findings in order to relate it with the study objectives. The research dealt with coffee cropsin socioeconomic development. To raise the information, the researcher used questionnaires, interviews and observation as tools of data collection from the farmers as well as the staff of Karenge Sector and KOPAKAKA cooperative.

4.1Field of study description

4.1.1 Presentation of Rwamagana district

According to monograph of Rwamagana,around 80%Ramagana's populationpractices agriculture and thiscontributes in the economy of the District. In this District, farmers are classified into two categories: the first composed of the people who practices agriculture only;include, those who combine agriculture with other activities such as traders and civilians servants.Coffee is a main industrial culture comparatively to the others cultivated in Rwamagana District.It is less cultivated in Kigabirosector,Mwurire sector, Munyaga sector. Whereas in the others Sectors such as Karenge,Nzige,Muyumbu and Nyakaliro; the coffee plantation covers a great area.

4.1.2 Presentation of Karenge sector

According to Monographic of Karenge Sector(2007), Karenge sector has63.19km, 7 cells and 36 villages compound it with 19682 people.Karenge sector is located in south of Rwamagana district toward the EASTof Kigali city.Karenge sector presents the following borders:Insouth there is Mugesera and Rukumberi sector of Ngoma district;inNorth thereis Nzigesector; In EAST there is Rubona sector In West there isNyakaliro and Juru sectors.

A. Socio-economic situation of Karenge sector

Around 90% of the population of Karenge Sector practice agriculture and this one play a great importance in the economy of Karenge sector.Inthis sector there is two categories of farmers: Farmers whopractice agriculture only and farmers who mix agriculture with others works.In Karenge sector the land starts to loose its productive capacity because of more exploitationsand effects of erosion.The agriculture in this area is dominated by provisional culture and industrial culture.

- Provisional culture:according to the economic development and occupation of superficies the culture follow the following order: banana tree 45%Market gardener 15%; cereal 5%.

- Industrial culture:Karenge sector is the best productive of coffee in the areas of Rwamaganadistrict,now days there is 1265000 productive coffee trees and 85000 non productive coffee trees ;both cover 540ha;in this sector,they expect to plant coffee on 280ha in 2012;in this sector one plant of coffee produces 9kg of crops per year,there is also three washing stations which are Nyamatete coffee center,kopakabi and Rwacof -Karenge.The other industrial cultures such as macadamia,moringa,and vanilla are not more expended.(from documentation of Karenge sector)

B. Vision of karenge sector

According to Monographic of Karenge sector(2007) the development of Karenge sector is based on the agriculture and breedthus this sector has target for achieving the great agricultural output particularly for culture of coffee, banana tree, pineapple and tomatoes. In the domain of stock farming,Karenge sector has target for increasing quality and quantity of livestock, with objective ofstrengthening the artificial insemination system for cows and promoting the project «one cow,one family». The objective of developmentof millennium and vision 2020 is to allow to Karenge sector to overcome the state of under development and poverty for the economic development.These are expressed by the socio indicators. Karenge sector has set the following objectives:

- To reduce poverty at 50%.

- To strengththe primaryeducation.

- To strength the fight against HIV, malaria and others epidemics.

- To reduce the children mortality rate to two over three and maternal mortality to three overfour.

- To maintainenvironment protection for long life development.

4.1.3 Presentation of cooperative KOPAKAKA

KOPAKAKA cooperative has been created in 2005.It comprises 62 members only;withan objectiveof improving the economic capacity the members (farmers of coffee of Karengesector) and to improve the quantity and the quality of coffee crops. Nowadays, it is comprises 1020 members ; All of these members sell their coffee crops in the washing station called RWACOF-KarengeThese members of cooperative benefit great advantages from it ;such as:

- Training coffee farmers (members of cooperative).

- To receive new plants of coffee with target of improving the number of coffee trees.

- The coffee farmers receive the funding through their cooperative such as: chemical fertilizers, insecticide products.

- The funding for education of their children.

- The coffee farmers are helped by the cooperative in the payment of health insurance. (From documentation of cooperative KOPAKAKA).

In conclusion,this cooperative plays great importance in the development of its members and then in the development of the area (Karenge sector); in payment of taxes, in contribution to building of the schools, to entertain roads and others.

4.2 Identification of respondents

4.2.1 Identification of respondents by profession

Table 4: Representations of respondents by profession

The following table shows the repartition of members by profession

Profession

Effective 

Percentage

farmers

72

70%

teachers

17

17%

Agents of cooperative

13

13%

Total

102

100%

Source:primary data

The coffee farmers of cooperative are subdivided in to two categories: the farmers who practices agriculture only and the others who mix agriculture with the others professions. Here in cooperative we have 72 farmers who practice agriculture only or 70% and 30 farmers who mix agriculture with the others professions such as teaching, the teachers are 17 or 17% and services in the cooperative are 13 or 13%.

4.2.2 Identification of respondents by sex

The following table represents the repartition of members by sex.

Table 5: Representations of members by sex

sex

effective 

percentage

female

34

33%

male

68

67%

Total

102

100%

Source: primary data

According to the above table, thenumbers of respondents are 102 combined with female and male where female are 34 or 33% and male are 68 or 67%.

4.2.3 Identification of respondents by age

The following table represents the repartition of respondents by age

Table 6: Distribution of farmers by age

Age

Effective

Percentage

30-40

34

33%

40-50

25

24%

50-60

30

30%

60-70

13

13%

Total

102

100%

Source:primary data

4.3Socio- economic contribution of coffee

According to the income earned from coffee crops, I investigated how farmers satisfy their needs. I asked the question to the farmers with a target of how many productive coffee trees owned by farmers.

4.3.1The number of productive coffee trees per farmers

The first question had a target ofgetting out the number of productive coffee trees that hold respondents .Thequestion was to know how many productive coffee trees each respondent has?

Table 7: Coffee trees that hold farmers

Number of coffee trees

effectives

percentage

Less than 200

4

4%

200-400

8

8%

400-600

17

17%

600-800

30

29%

Over 800

43

42%

Total

102

100%

Source:primary data

According to Asiimwe H.M(2006)» Production refers to the process of converting inputs in to out puts, the out puts can be goods or services.» Based on the above citation, the productive coffee tree of KOPAKAKA cooperative produces the primary production. The coffee crops needed directly in the washing station which is their market.Each member of KOPAKAKA earns from the productive coffee trees that he has. According to the above table, which represent number of coffee trees that hold coffee farmers, a great part of members have the number of coffee tree which is over 800 there are 43 or 42%; 30members have between 600-800 coffee trees or 29%. 17 members have between 200-400 coffee trees or 8% and 4 members have less than 200 coffee trees or 4%.

4.3.2The income of farmers before and after becoming coffee farmers

The second question had a target of getting out the income that holds farmers before and after becoming coffee farmers.

Table 8: Comparison of income before and after becoming coffee farmers

Level of income

Effective of farmers before becoming coffee farmers

Effective of farmers after becoming coffee farmers

Effective

percentage

Effective

percentage

Less than 200,000

26

25%

0

0%

200,000-400,000

55

54%

17

17%

400,000-600,000

17

17%

25

25%

600,000-800,000

0

0%

26

25%

Over 800,000

4

4%

34

33%

Total

102

100%

102

100%

Source: primary data

Basing on the above table the farmers of KOPAKAKA cooperative have increased their income in comparison to what they earned before. After becoming coffee farmers, 34 farmers or 33% gain over 800,000 per year whereas before becoming coffee farmers 4 farmers only or 4% gained over 800,000 per year. 26 farmers or 25% earn between 600,000-800,000 after becoming coffee farmers whereas before they were 17 farmers or 17% who earned such amount of money. 17 farmers or 17%earn between 200,000-400,000 after becoming coffee farmers whereas before they were 55 farmers or 54% who gained such amount of money. Zero or zero per cent earn less than 200,000 whereas before they were 26 members or 25% who gained less than 200,000 Rwandan francs per year. Therefore coffee plays a great role in the augmentation of income of coffee farmers.

4.3.3The meal taken by farmers before and after becoming coffee farmers

The third question had a target offinding out how much time the farmers took meals before and after becoming the coffee farmers.

Table 9:Comparisons of times that farmers take meals per day

The time that farmers take meals

Effective of farmers before they become coffee farmers

Effective of farmers after they become coffee farmers

Effective

Percentage

Effective

Percentage

Once

9

9%

0

0%

Twice

85

83%

9

9%

Three time

8

8%

93

91%

Total

102

100%

102

100%

Source:primary data.

According to ASIIMWE, H.M. (2006:138), «consumption depends on income» no one can consume without capacity to pay consumption, more capacity of payment increase more consumption capacity increase. According to thetable above, related to the number that farmers take meals per day, the members of thecooperative increased. The number of taking meals per dayafter becoming coffee farmers in comparison with the number of times they took meals before. 93 farmers or 91% take meals three times per day after becoming coffee farmers whereas 8 farmers or 8% took meals per day before becoming coffee farmers 9 farmers or 9% take meals two times per day after becoming coffee farmers whereas 85 farmers or 83% took meals per day before becoming coffee farmers. Zero farmers or zero percent take meals one time per day after becoming coffee farmers whereas 9 farmers or 9% took meals per day before becoming coffee farmers. Thereforecoffee contributes more in taking meals per day of coffee farmers of the KOPAKAKA cooperative.

4.3.4The health insurance that have farmers before and after becoming coffee farmers.

The fourth question had a target of getting out the health insurance of farmers before and after becoming coffee farmers.

Table 10: Comparison of health insurance of farmers before and after becoming coffee farmers.

Kind of health insurance

Effective of farmers before becoming coffee farmers

Effective of farmers after becoming coffee farmers

Effective

Percentage

Effective

Percentage

No health insurance

17

17%

0

0%

Obtain drugs hardly

42

41%

0

0%

Mutual health

26

25%

85

83%

Others (RAMA,MMI)

17

17%

17

17%

Total

102

100%

102

100%

Source: primary data.

According to the table above, coffee contributes to payment of health insurance of coffee farmers.85 farmers or 83% pay health insurance after becoming coffee farmers (mutual health) whereas 26 farmers or 25% only paid such insurance. Zero or zero percent of farmers hardlypay drugs after becoming coffee farmers whereas 42 farmers or 41% hardly paid drugs before becoming coffee farmers. Zero farmers or zero percent of farmers do not have capacity to pay health insurance after becoming coffee farmers whereas 17 farmers or 17% of members did not have capacity to pay health insurance.

By observation, in health, there is improvement by comparison of the situation before 2005 and the actual situation where before they were disease related to malnutrition whereas nowadays there is no disease related to malnutrition. Therefore Coffee crops have a great contribution to payment of health insurance.

4.3.5 Contribution of coffee in field of housing

The fifth question had a target of getting out the achievement in field of housing after becoming coffee farmers.

Table 11: The achievement of farmers in field of housing

Kind of achievement in the field of housing

Effective of farmers

percentage

Constriction of dwelling house

55

54%

Rehabilitation of dwelling house

47

46%

No thing

0

0%

Total

102

100%

Source: primary data

According to the above table, coffee crops contribute more in the achievement of the field of housing.47 farmers or 46% have done the rehabilitation of dwelling house after becoming coffee farmers; 55 farmers or 54% of coffee farmers have built the duelling house.

By observation a researcher seen that coffee crops contributes in reduction of unemployment in Karenge sector. In comparison of the actual socio economic situation and the previous before 2005; there is a great difference. The actual socio economic development of Karenge sector has shifted toward the positive side. On the point of rehabilitation and building dwelling houses there is a great difference between comparisons of the situation before 2005 and the actual situation.

On the point of karenge market, before 2005 the buildings of Karenge market, were not in the good state but nowadays the market is well built and the warehouses are rebuilt in cadastre plan; this explains the development of Karengesector. Therefore coffee crops play a great importance in the achievement of field of housing of coffee farmers'members of KOPAKAKA.

4.3.6 Contribution of coffee to field of infrastructure

The sixth question had a target of getting out the achievement in the field of infrastructure after becoming coffee farmers.

Table 12: The achievement of farmers in field of infrastructure

Kind of achievement in the field of infrastructures

Effective of farmers

percentage

Water supply

8

8%

Electricity supply

9

9%

Supply in biogas

0

0%

Supply in water and electricity

64

63%

Nothing at all

21

20%

Total

102

100%

Source: primary data

Based on the above table, coffee crops contribute to the achievement of field of infrastructure .64 farmers or 63% have water and electricity in their home, 9farmers or 9% have electricity in their houses, 8 farmers or 8% have water in their home,21 farmers or 20% neither water nor electricity.There are no coffee farmers who have biogas in their homes

By observation, there is improvement in infrastructures such as water supply and electricity supply; at this point; the infrastructure level was very low before 2005 but nowadays the infrastructure is at the sufficient level. Therefore coffee crops contribute more in water and electricity supply in the coffee farmers of cooperative COPAKAKA.

4.3.7 Contribution of coffee to investing activities

Theseventh question had a target of getting out the achievement in the investing activities of farmers after becoming coffee farmers

Table 13: The achievement of farmers in the investing activities

Kind of investing activities of coffee farmers

Effective of farmers

percentage

Modern agriculture

93

91%

trade

9

9%

transport

0

0%

crafts

0

0%

Nothing

0

0%

Total

102

100%

Source: primary data

Based on the above table coffee crops contribute to the investing activities of coffee farmers.93 farmers or 91% invest in the activities related to agri-livestock modern.9 farmers or 9% invest in trade. In the coffee farmers of KOPAKAKA no one invest in transport and crafts.

By observation, On the point of transport, the number of cars and motorcycles which were in Karenge before 2005 were few by comparison of the number that there are nowadays in Karenge sector. This means that the sector of transport has increased. Therefore coffee crops contribute to the investing activities of coffee farmers.

4.3.8 Contribution of coffee to saving

The eighth question had a target of getting out the annual saving capacity before and after becoming coffee farmer.

Table 14: The annual saving of coffee farmers

Annual saving

Effective of farmers before becoming coffee farmers

Effective of farmers after becoming coffee farmers

Effective

Percentage

Effective

Percentage

Less than 50,000

9

9%

0

0%

50,0000-100,000

38

37%

4

4%

100,000-200,000

25

25%

13

13%

200,000-400,000

26

25%

38

37%

Over400,000

4

4%

47

46%

Total

102

100%

102

100%

Source:primary data

According to Asiimwe, H.M. (2006:139), «saving is the part of income that is set aside for future use. «The coffee farmers earn amount of money from coffee crops; one part of income has to be saved for future use to satisfy the future plans. According to the above table coffee crops contribute to the increase of capacity of saving. 47 farmers or 64% save over400,000after becoming coffee farmers whereas before they were 4 farmers or 4%;38 farmers or 37% save between 200,000-400,000 after becoming coffee farmers whereas they were 26 farmers or 25% before becoming coffee farmers,13 farmers or 13%save between 100,000-200,000 whereas they were 25 farmers or25% before they become coffee farmers,4 farmers or 4%save between 50,000-100,000 after becoming coffee farmers whereas before they were 38 farmers or 37%.There arezero farmers or zero percentthat save less than 50,000 whereas they were 9 farmers or 9% before becoming coffee farmers.

By observation a researcher seen thatOn the point of saving; before 2005, there was only one cooperative of saving and credit called KOZIBI KARENGE whereas nowadays there are others four financial institutions which are COPEC INGASHYA; VISION FINACE COMPANY; URWEGO OPPORTUNITY and UMURENGE SACCO KARENGE. This explains the improvement of saving capacity of Karenge people. Therefore coffee crops play a great partof increase of saving capacity of members of KOPAKAKAcooperative.

4.3.9 Contribution of coffee in education

The ninth question had a target of getting out the involvement of coffee in the education of farmer's children.

Table15: The role of coffee in education domain

Kind of involvement of coffee in education

Effective of farmers

percentage

To receive findings from cooperative

102

100%

To receive school materials

0

0%

Nothing at all

0

0%

Total

102

100%

Source: primary data

According to Dirk Van.Damme.(http://www.oecd.org/fr/sites/educeri/38446921.pdf) «L'enseignement est la clé du progrès économique, environnemental et social.» Education is on the base of development, the coffee farmers of cooperative are interested ineducation of their children then they receive either the findings or school materials from cooperative to support them in that important activity.

102 farmers or 100% of members of cooperative receive the findings from KOPAKAKA cooperative. Therefore all members of cooperative receive any amount of money as credit to pay without interest for payment of school fees or school materials thus coffee crops play a great support to education of the children of KOPAKAKA members.

4.4 Summary of the finding

The findings revealed that coffee crops contribute positively to socio condition improvement, to the improvement of the farmer's economic development and to national income.

The findings revealed that coffee crops, in comparisonwith the other export products such as tea and minerals, it performed better according to the quantity exported and the international price. Thus coffee crops contributesto the increasing of national income; otherwise, in the domain of improving quality of coffee crops,there were creation of washing station which contribute more in entrepreneurship and those one contribute to the national income because when they earn by providing taxes to the country .

The findings revealed that coffee crops contributes in socio condition improvement, it rises the rate of entrepreneurship by investing in cultivation of coffee, building coffee washing station, by commercialization of coffee crops thus it contributes in reduction of unemployment; it also contributesto the life condition such as the improvement of time that farmers take food per day.91%of the coffee farmers take food three time per day. Coffee crops contribute in health insurance of farmers where 83%of farmers have mutual health. The findings revealed that coffee crops contribute in the improvement of farmer's economy. It helpsbuild and rehabilitation of the duelling house where 54% of coffee farmers built their house and 46% of the coffee farmers rehabilitate their duelling house. It helps in the achievement of infrastructure field where 63% of coffee farmers have water and electricity, 9% have electricity and 8% have water in their houses. It helps investing in activity where 91% of coffee farmers invest in the activities related to modern agriculture .it contributes to the increasing of saving rate where 46%of coffee farmers save over 400,000 Rwandan francs; 37% of coffee farmers save between 200,000 and 400,000 Rwandan francs and 13% of coffee farmers save between 100,000 and 200,000 Rwandan franc . Coffee crops contributes toeducation, where 100% of coffee farmers receive the findings from cooperative of coffee farmers .therefore coffee crops play a great importance to the improvement of the socio conditions ,to coffee farmers `economic development and then to national income.

CHAPTER FIVE

CONCLUSION, SUGGESTIONS, AND RECOMMENDATIONS

5.1 General conclusion

In conclusion, all of the findings stated above, lead us to agree that the contribution of coffee crops is very remarkable. According to Cousin,Tracey L. (June 1997) «coffee has become a vital cash crops for many third world countries.Over one hundred million people in developing countries have become dependent on coffee as their primary source of income.It has become the primary export and back bone for African countries like,Uganda,Burundi, Rwanda and Ethiopia, as well as many central American countries».It contributes to reduction of unemployment through different sections of entertaining preparing and commercialisation of coffee, and then it contributes to entrepreneurship of Rwandans .according to the findings, coffee crops contribute to the improvement of socio life conditions such as numbers of taking food per day, payment of health insurance of household's coffee farmers. It contributes also to the economic development of coffee farmers such as contribution to the achievement of the field of housing, contribution to the achievement of field of housing, contributionto the achievement of field of infrastructure, contribution to the investing activities, contributionto the increasing of saving capacity and intervenes in the findings to contribute to education. Thus, coffee crops play a crucial role in increasing national income in our country.

Despite good economic growth and real benefits of liberalizing the coffee sector, more remains to be done to move Rwanda toward its Vision 2020 goal of becoming a stable, middle-income country. Most Rwandans of rural areas coffee farmers leave from the poverty state toward the modern state.

5.2 Recommendations

Considering the importance of coffee crops; I would recommend NAEB to motivate people who own appropriate land for coffee plantation to maximize the cultivation of coffee in order to increase the quantity of coffee crops.

- NAEB should encourage the investors to build washing stations in the areas favourable for coffee in order to increase quality of coffee and reduction of unemployment. It shouldalsomotivate yearly the coffee farmers who yield out great production of coffee crops giving them the rewards.

- I would recommend MINAGRI to train regularly coffee farmers inthe entertainment of coffee for increasing the quality and thequantity, and then the value of Rwandan coffee crops.

- I would recommend to the coffee farmers that it could be better to prepare an area of straw for covering coffee trees and keeping them in safe conditions.

5.3 Suggestions for the further research

The researcher suggests that further research should be carried out on the reduction of fluctuation of coffee crops in order to maintain the increasing of production of coffee crops.

BIBLIOGRAPHY

Books

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APPENDICES

Questionnaire to sample of members of KOPAKAKA

I. IDENTIFICATION
Age: ..............
Gender: Female Male
Occupation ............................

II. INSTRUCTIONS

a. Do not write your name.
b. Choose the answer by putting the x in the box.
c. Read the question carefully before answering.

III. QUESTIONS

1) How many productive coffee trees do you have?

- Less than 200
- 200 - 400
- 400 - 600
- 600 - 800
- Over 800
2) A) How many meals did you take a day before becoming a coffee farmer?
- Once
- Twice
- Three
B) How many meals do you eat per day after becoming a member a coffee farmer?
- Once
- Twice
- Three
3) A) What is health insurance did you have before becoming the coffee farmer?
- No health insurance
- Obtain drugs hardly
- Mutual Health

- Other (specify) ........................................

B) What is health insurance do you have after becoming the coffee farmer?
- No health insurance
- Obtain drugs hardly
- Mutual Health

- Other (specify) ........................................

4) Howthe coffeeis involved inthe education of yourchildren?
- We receivefunding fromthe cooperativeKOPAKAKA.
- We receiveschool material

- Nothing at all
5) What are your achievements in the field of housing after becoming a coffee farmer?
- Construction of a dwelling house
- Rehabilitation of the dwelling house
- Nothing

6) What areyour achievements inthe field of infrastructure?
-Water supply
-Electricitysupply
-Supply ofbiogas
-Nothing at all

7) A) what was your annual income before becoming a coffee farmer?
- Less than 200,000
- 200,000-400,000
- 400,000-600,000
- 600,000-800,000
- Over 800,000
B) What is your annual income after becoming a coffee farmer?
- Less than 200,000
- 200,000-400,000
- 400,000-600,000
- 600,000-800,000
- Over 800,000
8) How are you investing activities after becoming a coffee farmer?
- Agri-livestock modern
- Trade
- Transport
- Crafts
- Nothing
9) A) What was your annual savings capacity before becoming a coffee farmer?
- Less than 50,000
-50,000-100,000
- 100,000-200,000
-200,000-400,000
- Over 400,000
B) What is your annual savings capacity after becoming a coffee farmer?
- Less than 50,000
-50,000-100,000
- 100,000-200,000
-200,000-400,000
- Over 400,000

Interview guide with chairman of KOPAKAKA cooperative

1 About creation of KOPAKAKA cooperative.
2. Aboutthe founders of KOPAKAKA cooperative.
3. The objectives of KOPAKAKA cooperative.
4. About the members of KOPAKAKA cooperative

5. About the profit that members earn from KOPAKAKA cooperative.

Interview guide with an agronomist of Karenge sector


1. Aboutthe area of Karenge covered by coffee.
2. About the number of coffee tree.
3. About the production of coffee during the period 2008-2011.

4. About the contribution of coffee crops to the economic development ofKarenge sector.

IBIBAZO BIGENEWE ABANYAMURYANGO BA KOPAKAKA

I. IDENTIFICATION

Imyaka: ..............
Igitsina: GoreGabo
Umurimoakora ............................

II. AMABWIRIZA

a. Kuriururupapurontamazinaashyirwaho.
b. Hitamoigisubizoushyiraakamenyetso x mu kazukabugenewe.
c. Soma nezaikibazombereyogusubiza.

III. IBIBAZO


1) Mufiteibitibyakawabishoboragutangaumusarurobingahe?

- Munsiya 200
- 200 - 400
- 400 - 600
- 600 - 800
- Over 800
2) A) Mwashoboragagufataifungurokangahe mu munsimberey'ukomutangiraguhingakawa?
- Rimwe
- Kabiri
- Gatatu
B) Ahomubereyeabahinzibakawa, mushoboragufataifungurokangahekumunsi?
- Rimwe
- Kabiri
- Gatatu

3) A) Ni ubuhebwishingizibwokwivuzamwarimufitemberey'ukomubaabahinzibakawa?
- Ntabwo
-Kwiguriraimitibingoye
- Mutuweri

- Ubundibwishingizi (sobanura) ........................................
B) Ahomubereyeabahinzibakawaniubuhebwishingizibwokwivuzamufite?
- Ntabwo
-Kwiguriraimitibingoye
- Mutuweri

- Ubundibwishingizi (sobanura) ........................................
4) Hariicyoikawazimara mu bijyanye no kurihiraabanaamashuri?
- HariinguzanyotubonaivamuriKoperativeKOPAKAKA.
- Duhabwaibikoreshoby'ishuri

- Ntacyo.
5) Hariicyomwagezeho mu bijyanyen'imyubakireahomubereyeabahinzibakawa?
- Nibuyakiyeinzu
- Nasannyeinzu
- Ntacyo

6) Hariicyomwagezeho mu bikorwaremezoahomubereyeabahinzibakawa?
-Nashyizeamazi mu rugo
-Nashyizeamashanyarazi mu nzu
-Nubatsebiyogazi
-Ntacyo

7) A) Mberey'ukomubaabahinzibakawamwashoboragakwinjizaamafarangaangahe mu mwaka?
- Munsiya200,000
- 200,000-400,000
- 400,000-600,000
- 600,000-800,000
- Hejuruya 800,000

B) Ahomubereyeabahinzibakawa, mushoborakwinjizaamafarangaangahe mu mwaka?
- Munsiya200,000
- 200,000-400,000
- 400,000-600,000
- 600,000-800,000
- Hejuruya 800,000
8) Ni ibihebikorwabindiwashoyemoimariahoutangiriyegusarurakawa?
- Ubuhinzin'ubworozibwakijyambere
- Ubucuruzi
- Ubwikorezi no gutwaraabantu
- Imyugan'ubukorikori
- Ntacyo.
9) A) Utarabaumuhinziwakawawashoboragakuzigamaamafarangaangahe mu mwaka?
- Munsiya 50,000
-50,000-100,000
- 100,000-200,000
-200,000-400,000
- Hejuruya 400,000
B) Ahoubereyeumuhinziwakawaushoborakuzigamaamafarangaangahekumwaka?
- Munsiya 50,000
-50,000-100,000
- 100,000-200,000
-200,000-400,000
- Hejuruya 400,000

Localisation de la zone d'étude dans le District de Rwamagana

Source : MINITRACO, CGIS-NUR, 2002

3.1.2. Historique de la COOPEC INGASHYA

Source : Monographie du District de Rwamagana, 2007.

Source:Monograph of Rwamagana District

NIYONSENGA Evariste

LEARNER AT INATEK

TEL: 0788581620

Karenge, April 16, 2012




DIRECTOR OF NAEB.

KIGALI

Subject: Request authorization for research.


Sir,

As part of exploring the contribution of culture of coffee in socioeconomic development, we are conducting a research entitled "The contribution of culture of coffee in socio-economic development." We would benefit from your information and advice.

Hoping a favorable response, we guarantee that they will be collected only for purposes of research.

Yours faithfully

NIYONSENGA Evariste






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